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Phillips 66 Partners' (PSXP) Q2 Earnings & Revenues Beat

Zacks Equity Research

Phillips 66 Partners LP’s PSXP second-quarter 2019 earnings per unit came in at $1.15, beating the Zacks Consensus Estimate of $1.13 and also the year-ago bottom-line figure of 94 cents.

Revenues of $401 million rose from $354 million in the year-ago quarter and also beat the Zacks Consensus Estimate of $399 million.

The strong quarterly results were attributed to higher volumes of liquids being transported and stored, driven by the midstream energy player’s joint venture assets comprising Explorer pipeline, Bayou Bridge and Bakken. The surge in refinery utilizations by the firm’s parent company, Phillips 66 PSX, also supported the outperformances.

Phillips 66 Partners LP Price, Consensus and EPS Surprise

Phillips 66 Partners LP Price, Consensus and EPS Surprise

Phillips 66 Partners LP price-consensus-eps-surprise-chart | Phillips 66 Partners LP Quote

Operating Information

The partnership provides services through Pipelines, Terminals and Storage, Processing & Other activities.

Pipeline: In second-quarter 2019, the partnership generated revenues of $117 million from pipeline transportation business, up from $111 million a year ago. Higher transported volumes of refined petroleum products and natural gas liquid (NGL) primarily led to the improvement.

Terminals: The partnership generated $39 million from terminals, a slight improvement from $38 million a year ago, thanks to higher throughput volumes of refined petroleum products.

Storage, Processing & Other activities: Through these activities, the partnership generated revenues of $107 million, up from $105 million in the year-ago quarter.

Operating and Maintenance Expenses

In the June quarter of 2019, the company reported operating and maintenance expenses of $85 million which was same as it was reported in the year-ago period.

Balance Sheet

As of Jun 30, 2019, the partnership recorded cash and cash equivalents of $130 million which shows a drastic improvement from the prior quarter result of $2 million. Also the total debt of the quarter reviewed is $3,324 million.

Zacks Rank & Key Picks

Phillips 66 Partners carries a Zacks Rank #3 (Hold). Meanwhile better ranked players in the energy space include Oasis Midstream Partners LP (OMP), Plains Group Holdings LP (PAGP). Oasis Midstream and Plains Group sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Oasis Midstream Partners LP OMP:  Oasis Midstream Partners company’s earnings beat the Zacks Consensus Estimate in two of the last four quarters.

Plains Group Holdings, L.P. PAGP: The company delivered average positive earnings surprise of 62.68% in the past four quarters.

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Phillips 66 Partners LP (PSXP) : Free Stock Analysis Report
Phillips 66 (PSX) : Free Stock Analysis Report
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