HOUSTON -- Phillips 66 Partners LP, a wholly owned subsidiary of Phillips 66, has officially filed a registration statement with the U.S. Securities & Exchange Commission (SEC) related to its proposed initial public offering (IPO) of common units representing limited partner interests.
Phillips 66 formed Phillips 66 Partners 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.
The company has said that it expects to raise up to $400 million through the master limited partnership (MLP) spinoff.
The offering is expected to occur in the second half of this year. Phillips 66 Partners anticipates the common units will trade on the New York Stock Exchange under the ticker symbol PSXP. The number of common units to be offered and the price range for the offering have not yet been determined. Phillips 66 Partners expects to receive gross proceeds from the offering in the amount of approximately $300 million, excluding proceeds from any exercise of the underwriters' over-allotment option to purchase additional common units.
Based in Houston, Phillips 66 Partners expects its initial assets to include the Clifton Ridge crude oil pipeline, terminal and storage system in Louisiana; the Sweeny to Pasadena refined petroleum product pipeline, terminal and storage system in Texas; and the Hartford Connector refined petroleum product pipeline, terminal and storage system in Illinois.
Phillips 66, Houston, is a downstream energy company with refining and marketing, midstream and chemicals businesses. Phillips 66's R&M operations include 15 refineries with a net crude oil capacity of 2.2 million barrels per day, 10,000 branded marketing outlets (under the Phillips 66, 76 and Conoco brands) and 15,000 miles of pipeline systems. In midstream, the company primarily conducts operations through its 50% interest in DCP Midstream LLC, one of the largest natural-gas gatherers and processors in the United States, with 7.2 billion cubic feet per day of gross natural gas processing capacity.
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