This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Phillips 66 Announces 2013 Capital Program And Intent To Form MLP

Stocks in this article: PSX

Phillips 66 (NYSE: PSX) will host its inaugural Analyst Meeting today in New York to update investors and analysts on plans to enhance returns, deliver profitable growth and increase distributions to shareholders. Company executives will discuss Phillips 66’s strategy to capitalize on the North American oil and gas production revolution through its formation of a master limited partnership (MLP), $3.7 billion total capital program, and increased use of advantaged feedstocks. With a geographically-advantaged portfolio of refining and marketing (R&M), midstream and chemicals assets, Phillips 66 is uniquely positioned to benefit from these developing market opportunities.

In support of growth and value creation, Phillips 66 intends to contribute a portion of its transportation assets to form an MLP. The company is evaluating assets for contribution to the MLP, which may include certain product and crude pipelines and terminals, rail cars and other rail infrastructure, as well as natural gas liquids (NGL) assets. A registration statement for an initial public offering (IPO) is expected to be filed with the Securities and Exchange Commission in the second quarter of 2013. Subject to market conditions and final approval by Phillips 66’s board of directors, the company anticipates selling a minority interest in the MLP in an IPO in the second half of 2013. Phillips 66 expects the offering to raise approximately $300 million to $400 million of gross cash proceeds.

“We expect to use the master limited partnership as an efficient vehicle to fund growth investments in the transportation and midstream sectors,” said Phillips 66 Chairman and CEO Greg Garland. “We believe the proposed MLP will enable us to enhance value for our shareholders and increase the transparency of our business.”

Phillips 66’s 2013 planned capital program is $3.7 billion. This includes Phillips 66’s portion of planned capital spending by DCP Midstream, Chevron Phillips Chemical Company (CPChem) and WRB Refining totaling $1.8 billion, which is not expected to require cash outlays by Phillips 66. The other $1.9 billion represents Phillips 66’s consolidated investments in R&M, Midstream and Corporate and Other. The 2013 capital program represents a 6 percent increase over expected 2012 capital spend of $3.5 billion.

1 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,799.97 -10.09 -0.06%
S&P 500 2,066.87 +3.37 0.16%
NASDAQ 4,743.1910 +30.2210 0.64%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs