Record 2Q earnings reported by Phillips 66 Partners

 

Phillips 66 Partners LP reported second quarter 2019 earnings of $233 million or $1.15 per diluted common unit. It was an increase over the $198 million reported in the first quarter of 2019.

The company’s adjusted EBITDA totaled $319 million compared to $281 million in the previous quarter.

“This quarter we had record earnings and advanced our major projects,” said Greg Garland, Phillips 66 Partners’ chairman and CEO. “Solid performance across our portfolio contributed to this quarter’s results. We secured project financing for Gray Oak Pipeline and progressed construction toward a fourth-quarter startup. In addition, we announced the C2G Pipeline project and completed the Lake Charles products pipeline.”

On July 17, 2019, the general partner’s board of directors declared a second-quarter 2019 cash distribution of $0.855 per common unit, a 14% increase over the second-quarter 2018 cash distribution. The Partnership has increased its distribution per common unit every quarter since its initial public offering in July 2013.

The improvements are due to increased volumes on the Explorer, Bakken and Bayou Bridge joint venture pipelines, as well as increased volumes on wholly owned pipelines, driven by higher utilization at refineries operated by Phillips 66.

As of June 30, 2019, total debt outstanding was $3.3 billion. The Partnership had $130 million in cash and cash equivalents and $749 million available under its revolving credit facility.

The Partnership’s total capital spending for the quarter was $114 million, which included $12 million of maintenance capital. Expansion capital of $102 million included spend on the Clemens Caverns expansion, the new isomerization unit at the Phillips 66 Lake Charles Refinery, the C2G Pipeline and the Lake Charles products pipeline, as well as investments in the South Texas Gateway Terminal and the Bayou Bridge Pipeline.