Home > Boards > US Listed > Oil/Gas/Natural Energy Production > Phillips 66 (PSX)

Phillips 66 Partners Announces $1.3 Billion Acquisition (10/11/16)

Public Reply | Private Reply | Keep | Last ReadPost New MsgNext 10 | Previous | Next
Enterprising Investor Member Profile
Member Level 
Followed By 214
Posts 11,047
Boards Moderated 12
Alias Born 04/05/09
160x600 placeholder
Phillips 66 Partners likely to be taken private, Mizuho says in downgrade Seeking Alpha - 2/25/2021 10:35:33 AM
Phillips 66 and Faradion Developing Sodium-ion Battery Materials Business Wire - 2/25/2021 9:00:00 AM
Statement of Changes in Beneficial Ownership (4) Edgar (US Regulatory) - 2/24/2021 5:03:19 PM
Annual Report (10-k) Edgar (US Regulatory) - 2/24/2021 2:56:03 PM
Sunnier outlook means it's refining's turn to shine, J.P. Morgan says Seeking Alpha - 2/22/2021 7:44:57 PM
Statement of Changes in Beneficial Ownership (4) Edgar (US Regulatory) - 2/11/2021 5:47:52 PM
Statement of Changes in Beneficial Ownership (4) Edgar (US Regulatory) - 2/11/2021 5:46:40 PM
Statement of Changes in Beneficial Ownership (4) Edgar (US Regulatory) - 2/11/2021 5:45:38 PM
Statement of Changes in Beneficial Ownership (4) Edgar (US Regulatory) - 2/11/2021 5:43:44 PM
Statement of Changes in Beneficial Ownership (4) Edgar (US Regulatory) - 2/11/2021 5:42:47 PM
Statement of Changes in Beneficial Ownership (4) Edgar (US Regulatory) - 2/11/2021 5:41:31 PM
Statement of Changes in Beneficial Ownership (4) Edgar (US Regulatory) - 2/11/2021 5:39:43 PM
Phillips 66 declares $0.90 dividend Seeking Alpha - 2/10/2021 4:46:15 PM
Phillips 66 Announces Quarterly Dividend Business Wire - 2/10/2021 4:30:00 PM
Statement of Changes in Beneficial Ownership (4) Edgar (US Regulatory) - 2/9/2021 6:55:16 PM
Statement of Ownership (sc 13g) Edgar (US Regulatory) - 2/9/2021 4:13:41 PM
Statement of Changes in Beneficial Ownership (4) Edgar (US Regulatory) - 2/3/2021 5:50:08 PM
Statement of Changes in Beneficial Ownership (4) Edgar (US Regulatory) - 2/3/2021 5:47:57 PM
Phillips 66 Earns Perfect 100 on 2021 Corporate Equality Index Business Wire - 2/2/2021 3:00:00 PM
Amended Statement of Ownership (sc 13g/a) Edgar (US Regulatory) - 1/29/2021 5:25:25 PM
Current Report Filing (8-k) Edgar (US Regulatory) - 1/29/2021 9:50:59 AM
Phillips 66 Reports Fourth-Quarter 2020 Financial Results Business Wire - 1/29/2021 7:00:00 AM
Phillips 66 Receives $3 Million Grant to Advance Reversible Solid Oxide Fuel Cell Technology Business Wire - 1/21/2021 2:00:00 PM
Statement of Changes in Beneficial Ownership (4) Edgar (US Regulatory) - 1/20/2021 5:51:45 PM
Statement of Changes in Beneficial Ownership (4) Edgar (US Regulatory) - 1/20/2021 5:50:30 PM
Enterprising Investor Member Level  Tuesday, 10/11/16 10:55:11 AM
Re: None
Post # of 202 
Phillips 66 Partners Announces $1.3 Billion Acquisition (10/11/16)

Acquisition Includes 30 Phillips 66 Crude, Products, and NGL Logistics Assets

• Expected to be immediately accretive to unitholders

• Assets support Phillips 66’s Bayway, Billings, Borger and Ponca City refineries

• Phillips 66 to enter into long-term minimum volume commitments

HOUSTON--(BUSINESS WIRE)--Phillips 66 Partners LP (NYSE: PSXP) (the “Partnership”) has reached agreement with Phillips 66 (NYSE: PSX) to acquire 30 crude, refined products and natural gas liquids (NGL) logistics assets for total consideration of $1.3 billion. The Partnership plans to fund the acquisition with a combination of debt and $196 million in new PSXP units issued to Phillips 66, to be allocated proportionally between common units and general partner units allowing the general partner to maintain its 2 percent general partner interest. The transaction is anticipated to close this month, subject to satisfaction of customary closing conditions, and is expected to be immediately accretive to unitholders. Upon closing, the Partnership will be entitled to receive the cash earnings associated with the acquired assets as of Oct. 1, 2016.

The acquisition consideration reflects an approximate 8.7 times multiple based on the forecasted full year 2017 earnings before interest, taxes, depreciation and amortization (EBITDA) attributable to the assets of approximately $150 million. In connection with the acquisition, Phillips 66 will enter into 10-year terminaling and throughput agreements that will include minimum volume commitments covering approximately 85 percent of forecasted volumes.

“As our largest dropdown acquisition to date, this represents a milestone for the Partnership and will provide additional fee-based income and diversity to our already strong midstream portfolio,” said Greg Garland, Phillips 66 Partners chairman and CEO. “We remain committed to maintaining a stable, fee-based, growing business model at Phillips 66 Partners, and are on track to deliver on our commitment to a five-year distribution compound annual growth rate of 30 percent through 2018.”

The transaction includes the following assets:

• A crude pipeline and terminal system that provides crude supply for Phillips 66’s Ponca City Refinery, consisting of 503 miles of pipeline and 1.7 million barrels of storage;

• A refined products and NGL pipeline and terminal system that provides product takeaway transportation services for Phillips 66’s Ponca City Refinery, consisting of 524 miles of pipeline and 1.7 million barrels of storage;

• A crude pipeline and terminal system that provides crude supply for Phillips 66’s Billings Refinery, consisting of a 79 percent undivided interest in a 623-mile pipeline and 570,000 barrels of storage;

• A refined products pipeline and terminal system that provides product takeaway transportation services for Phillips 66’s Billings Refinery, consisting of 342 miles of pipeline and 386,000 barrels of storage;

• A refined products and NGL terminal system that provides storage services for Phillips 66’s Bayway Refinery, consisting of 2.0 million barrels of storage;

• A crude pipeline and terminal system that provides crude supply for the Phillips 66-operated Borger Refinery, consisting of 1,089 miles of pipeline and 400,000 barrels of storage; and

• A refined products pipeline and terminal system that provides product takeaway transportation services for the Phillips 66-operated Borger Refinery, consisting of 93 miles of pipeline, a 33 percent undivided interest in a 102-mile segment and a 54 percent undivided interest in a 19-mile segment of a 121-mile pipeline, a 50 percent interest in a 293-mile pipeline and 700,000 barrels of storage.

A detailed listing of these assets including names and maps is available on the Phillips 66 Partners website.

The terms of the transaction were approved by the board of directors of the general partner of Phillips 66 Partners, based on the approval and recommendation of its conflicts committee comprised solely of independent directors. The conflicts committee engaged Evercore to act as its financial advisor and Vinson & Elkins, L.L.P. to act as its legal counsel.

About Phillips 66 Partners

Headquartered in Houston, Texas, Phillips 66 Partners is a growth-oriented master limited partnership formed by Phillips 66 to own, operate, develop and acquire primarily fee-based crude oil, refined petroleum product and natural gas liquids pipelines and terminals and other transportation and midstream assets.

http://www.businesswire.com/news/home/20161011005928/en/Phillips-66-Partners-Announces-1.3-Billion-Acquisition

"Someone said it takes 30 years to be an instant success" - Gabriel Barbier-Mueller, CEO of Harwood International
Public Reply | Private Reply | Keep | Last ReadPost New MsgNext 10 | Previous | Next
Follow Board Follow Board Keyboard Shortcuts Report TOS Violation
X
Current Price
Change
Volume
Detailed Quote - Discussion Board
Intraday Chart
+/- to Watchlist
Consent Preferences