Phillips 66 Partners LP had earnings of $99m, cash from operations was $152m and distributable cash flow was $136m in the third quarter of 2017.
Phillips 66 Partners’ chairman and CEO, Greg Garland said: “We delivered solid financial results this quarter, operating well with minimal impact on our business from Hurricane Harvey. In October, we completed the acquisition of Merey Sweeny and a 25 percent interest in the Bakken Pipeline. This acquisition from Phillips 66 is our largest to date and keeps us on track to deliver our 30 percent five-year annual distribution growth target. We are well positioned to achieve our $1.1 billion run-rate EBITDA goal by the end of 2018.”
The Partnership continued to progress its portfolio of organic growth projects during the quarter. The Sand Hills Pipeline is increasing capacity from 280,000 barrels per day (BPD) to 365,000 BPD, with the expansion expected to be complete in the fourth quarter of 2017. In addition, DCP Midstream, the pipeline operator, has announced plans to further expand capacity to approximately 450,000 BPD, with completion expected in the second half of 2018. Phillips 66 Partners owns a one-third interest in this joint venture.
The STACK joint venture expansion project to loop the existing pipeline was completed in October and increased capacity by 150,000 BPD. The Partnership owns a 50% of the joint venture.
The Bayou Bridge Pipeline, in which the Partnership holds a 40% interest, currently operates from the Phillips 66 Beaumont Terminal to Lake Charles, Louisiana. The segment from Lake Charles to St. James, Louisiana, is expected to begin commercial operations in the second half of 2018.
Phillips 66 Partners continues development of a new 25,000 BPD isomerization unit at the Phillips 66 Lake Charles Refinery to increase production of higher octane gasoline blend components. The project will include a long-term agreement with Phillips 66 for processing services, including a minimum volume commitment. Final project approval is expected in the first quarter of 2018.
The Sacagawea Pipeline joint venture is investing in growth projects to develop additional services in the Bakken region. project is anticipated to be completed by the end of 2018. Phillips 66 Partners owns a 49.5%.
At the beginning of October Phillips 66 Partners acquired from Phillips 66 a 25% interest in each of Dakota Access, LLC and Energy Transfer Crude Oil Company, LLC (collectively, the Bakken Pipeline) and a 100% interest in Merey Sweeny, L.P. (MSLP), the owner of fuel-grade coke processing units at the Phillips 66 Sweeny Refinery. The total transaction value of $2.4bn includes $625m in non-recourse Bakken Pipeline debt and $100m of MSLP debt.
For more information visit www.phillips66partners.com
30th October 2017