Phillips 66 Partners to acquire $700M in assets from Phillips 66

Phillips 66 Partners (PSXP +1.8%) announces its first post-IPO acquisition, to include Phillips 66's (PSX +1.9%) 681-mile Gold Line pipeline system and two newly constructed refinery-grade propylene storage units for $700M.

PSXP will finance the deal with $400M in cash on hand, the issuance of $140M in additional units and a $160M note payable to a PSX subsidiary.

PSXP expects the dropdown from PSX to be immediately accretive to its earnings and distributable cash flow.

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Comments (5)
  • Dividend Garden
    , contributor
    Comments (489) | Send Message
    What will PSX do with the money? Buyback shares, pay down debt, increase dividend? Very curious. With only 600 million shares outstanding, this $700 million sale is over $1/share for PSX shareholders.

    13 Feb 2014, 12:24 PM Reply Like
  • Albert Alfonso
    , contributor
    Comments (3295) | Send Message
    My guess is that they will use it to fund further midstream projects. PSX recently announced $3B in growth projects.
    13 Feb 2014, 12:30 PM Reply Like
  • 8747S1115R
    , contributor
    Comments (292) | Send Message
    After Warren Buffets deal and continued stock buyback I would expect that there are only around 560 Mil share outstanding now instead of the 600 Mil from the previously reported quarter.
    13 Feb 2014, 03:25 PM Reply Like
  • joverage
    , contributor
    Comments (57) | Send Message
    Told ya, folks. This is just the beginning of an avalanche of appreciation for both PSX and PSXP. Cancelled my sell order for PSX at $80 which almost executed a couple of months ago. Keystone is going to go. Expect to cash big on EEP and LNG at end of 2015. People are not paying enough attention to what the real story is at EEP.
    13 Feb 2014, 02:31 PM Reply Like
  • Michael Fitzsimmons
    , contributor
    Comments (11851) | Send Message
    Man, don't I wish every stock I owned wanted to unleash shareholder value like the PSX-PSXP combo. Like I keep saying, PSX could likely be the single best investment in "Shale USA":



    and dropping down assets to PSXP is just one reason why. What a company!
    13 Feb 2014, 03:44 PM Reply Like
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