Phillips 66 Partners LP (NYSE: PSXP), a growth-oriented master limited partnership formed by Phillips 66, announces third-quarter earnings of $17.3 million. From the IPO closing on July 26, 2013, through Sept. 30, 2013, earnings were $11.9 million, or $0.17 per common limited partner unit. During the post-IPO period, the partnership generated earnings before interest, income taxes, depreciation and amortization (EBITDA) of $13.2 million and distributable cash flow of $12.6 million.
“We are pleased with the successful launch of Phillips 66 Partners,” said Chairman and CEO Greg Garland. “We are actively evaluating opportunities to grow the partnership through strategic acquisitions from Phillips 66 and third parties, as well as through organic development. With considerable financial flexibility and strong sponsorship from Phillips 66, the partnership is well positioned for significant growth.”
On July 23, 2013, Phillips 66 Partners' common units began trading on the New York Stock Exchange under the ticker symbol "PSXP." The partnership completed its IPO of 18,888,750 common units on July 26, 2013, at a price of $23.00 per unit. The public owns a 26.3 percent limited partner interest in Phillips 66 Partners, with Phillips 66 owning the remaining limited partner interest and the 2 percent general partner interest.For the post-IPO period, transportation and terminaling services revenues were $21.1 million, consistent with the forecast provided in Phillips 66 Partners' final prospectus, dated July 22, 2013, as filed with the U.S. Securities and Exchange Commission. Total costs of $9.2 million and maintenance capital expenditures of $0.9 million for the post-IPO period were also in line with the forecast. At the end of the quarter, Phillips 66 Partners had $421.6 million in cash and cash equivalents, including net IPO proceeds of $404.4 million, which the partnership retained primarily to fund future expansion capital expenditures and acquisitions. In addition, the partnership has a $250 million unused revolving credit facility, with the flexibility to expand it by up to an additional $250 million.
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