|Over a week ago|
Phillips 66 Partners price target lowered to $33 from $40 at RBC Capital » 07:1311/0411/04/20
RBC Capital analyst…
RBC Capital analyst Elvira Scotto lowered the firm's price target on Phillips 66 Partners to $33 from $40 but keeps an Outperform rating on the shares. The company reported a "solid" quarter and its balance sheet remains "strong", which may help it weather the current energy price environment, the analyst tells investors in a research note. Scotto warns however that the uncertainty around the Dakota Access Pipeline is an overhang that may limit the Phillips 66 Partners unit price upside.
|Over a month ago|
Phillips 66 Partners reports Q3 EPS 85c, consensus 84c » 07:2710/3010/30/20
Reports Q3 revenue $394M,…
Reports Q3 revenue $394M, consensus $385.43M. "During the quarter, we ran safely and reliably, allowing us to capture improved market conditions," said Greg Garland, Phillips 66 Partners' chairman and CEO. "Our results reflect increased pipeline throughput, including ramp-up of volumes on the Gray Oak Pipeline, and startup of the South Texas Gateway Terminal. We will continue to remain disciplined in our approach to capital allocation and to prioritize a strong balance sheet."
Phillips 66 Partners price target lowered to $32 from $34 at Mizuho » 07:3010/0910/09/20
Mizuho analyst Gabriel…
Mizuho analyst Gabriel Moreen lowered the firm's price target on Phillips 66 Partners to $32 from $34 and keeps a Buy rating on the shares. With DAPL "likely safe" from shutdown through 2020, the overhang on Phillips 66 Partners "seems slightly less ominous yet not altogether removed," Moreen tells investors in a research note.
Phillips 66 Partners price target lowered to $27 from $29 at Barclays » 06:0810/0610/06/20
Barclays analyst Theresa…
Barclays analyst Theresa Chen lowered the firm's price target on Phillips 66 Partners to $27 from $29 and keeps an Equal Weight rating on the shares. Despite higher refining throughput quarter-over-quarter, the analyst looks for capture to worsen due to lower secondary product margins, narrower differentials, and lower optimization ahead of Hurricanes Laura and Sally.
|Over a quarter ago|
Phillips 66 Partners announces open season on Gray Oak Pipeline » 09:1408/3108/31/20
Phillips 66 Partners…
Phillips 66 Partners announced that its subsidiary Gray Oak Pipeline is launching an open season to solicit shipper commitments for services from West Texas on the Gray Oak Pipeline. The open season will provide an opportunity for interested shippers to secure long-term crude oil transportation with Gray Oak under binding transportation services agreements. There will be new takeaway capacity from West Texas, and a new destination in Victoria County, Texas. This is expected to be placed in service in the first half of 2022. The open season will commence on September 1. Prior to participating in the open season, interested parties must execute a confidentiality agreement to govern the receipt of the open season documentation.
Phillips 66 Partners price target lowered to $40 from $51 at RBC Capital » 09:3108/0308/03/20
RBC Capital analyst…
RBC Capital analyst Elvira Scotto lowered the firm's price target on Phillips 66 Partners to $40 from $51 but keeps an Outperform rating on the shares. The company reported a "solid" Q2, though much of the earnings call focused on its Dakota Access Pipeline, Scotto tells investors in her research note, adding that while her model assumes that the pipeline continues to flow, she also anticipates a slower pace of economic recovery and refined products demand than previously.
Phillips 66 reports Q2 EPS ex- items (74c),versus $1.02 in Q1 » 08:1707/3107/31/20
Phillips 66 (PSX)…
Phillips 66 (PSX) generated $764M in cash from operations during the second quarter, including $459M on of cash distributions from equity affiliates. Excluding working capital impacts, operating cash flow was $670M. "Our second-quarter results reflect the disruption in refined product demand from COVID-19 and weak margins across our businesses. Despite the challenging market environment, we operated safely and reliably, and reached key strategic milestones. In Midstream, the Gray Oak Pipeline started full operations during the quarter, and the South Texas Gateway Terminal began commercial operations in July. CPChem operated at 103% utilization, meeting strong polymer demand for food packaging and medical supplies. In Marketing, the U.S. West Coast retail joint venture recently completed the previously announced acquisition of 95 sites. "We took steps to enhance the company's financial flexibility and liquidity with the issuance of senior notes and an increase of our term loan capacity. With our dedicated employees, diversified portfolio and financial strength, Phillips 66 is well positioned to successfully manage through the current environment. We remain committed to operating excellence, a strong balance sheet, disciplined capital allocation and delivering returns to shareholders." As of June 30, 2020, cash and cash equivalents were $1.9 billion, and consolidated debt was $14.4 billion, including $3.7 billion at Phillips 66 Partners (PSXP). The company's consolidated debt-to-capital ratio was 38% and its net debt-to-capital ratio was 35%. Excluding PSXP, the debt-to-capital ratio was 34% and the net debt-to-capital ratio was 30%.
Phillips 66 Partners provides strategic update » 07:2507/3107/31/20
During the quarter, the…
During the quarter, the Gray Oak Pipeline commenced full operations from West Texas and Eagle Ford to Texas Gulf Coast destinations, marking the completion of the project. Phillips 66 Partners has a 42.25% effective ownership interest in the 900,000 barrels per day, or BPD, pipeline. The Gray Oak Pipeline connects to multiple terminals in Corpus Christi, Texas, including the South Texas Gateway Terminal being constructed by Buckeye Partners. The first dock and 3.4M barrels of storage capacity have been commissioned, and the terminal began crude oil export operations in July after receiving its first crude oil supply from the Gray Oak Pipeline. Marine operations are expected to ramp up through the end of this year as additional phases of construction are completed. Upon expected project completion in the first quarter of 2021, the marine export terminal will have two deepwater docks with up to 800,000 BPD of throughput capacity, along with storage capacity of 8.6M barrels. Phillips 66 Partners owns a 25% interest in the terminal.The Partnership recently completed its expansion of storage capacity at Clemens Caverns, from 9M barrels to 16.5Mbarrels, in connection with the Phillips 66 project to add natural gas liquid fractionation capacity at the Sweeny Hub. The caverns expansion is backed by long-term commitments.Phillips 66 Partners continues construction of the C2G Pipeline, a 16 inch ethane pipeline that will connect Clemens Caverns to petrochemical facilities in Gregory, Texas, near Corpus Christi. The project is backed by long-term commitments and is expected to be completed in mid-2021.The Sweeny to Pasadena Pipeline expansion project will add 80,000 BPD of pipeline capacity, providing additional naphtha offtake from the Sweeny fractionators. In addition, product storage capacity will increase by 300,000 barrels at the Pasadena Terminal. The project is backed by long-term commitments and is expected to be completed in Q3.
Phillips 66 Partners reports Q2 EPS $1.05, consensus 74c » 07:2207/3107/31/20
Reports Q2 revenue $430M,…
Reports Q2 revenue $430M, consensus $365.82M. "During the quarter, we continued to demonstrate our commitment to operating excellence," said Greg Garland, Phillips 66 Partners' chairman and CEO. "Our financial results reflect the ongoing economic downturn. We reached key milestones with the Gray Oak Pipeline achieving full service and supplying the first crude oil into the South Texas Gateway Terminal. We remain focused on safe and reliable operations, as well as maintaining our strong balance sheet and continuing our disciplined approach to capital allocation."
Phillips 66 Partners downgraded to Equal Weight from Overweight at Wells Fargo » 07:2107/2207/22/20
Wells Fargo analyst…
Wells Fargo analyst Michael Blum downgraded Phillips 66 Partners (PSXP) to Equal Weight from Overweight with a $34 price target. The analyst cites the potential for the temporary shutdown of the Dakota Access Pipeline, which represents about 20% of Phillips 66 Partners' EBITDA. Removing DAPL EBITDA would increase its 2021 rating agency leverage to 5.8-times from 4.4-times, which could result in rating agency pressure, he contends. Blum sees several options for the company, including reducing the distribution, Phillips 66 (PSX) taking supportive actions such as a dropdown of assets at an attractive multiple which would bolster cash flow and leverage, Phillips 66 choosing to buy in Phillips 66 Partners given the MLP's challenges.