Back to top

Analyst Blog

Independent refiner, Phillips 66 (PSX - Analyst Report) is acquiring a 7.1 million barrel storage terminal near Beaumont, TX. The purchase forms a part of the company’s effort to ramp up logistics and transportation assets and will be the largest terminal in the Phillips 66 portfolio.

The terms of the transaction have not been disclosed by the companies. The deal is expected to close in the third quarter of 2014, subject to regulatory approvals.

Currently owned by UNOCAL, a member of the Chevron Corp (CVX - Analyst Report), the Beaumont terminal is strategically located on the U.S. Gulf Coast. The terminal intends to serve its own refineries as well as that of others on the U.S. Gulf Coast. Hence, it has considerable prospects of expansion.

The Beaumont terminal is located about 60 miles (96 kilometers) from Phillips' nearest refinery, its 239,400 barrel-per-day plant in Westlake, LA. It serves 3.6 million barrels per day of refining capacity, over 20% of total U.S. capacity, through deep-water access and multiple interconnections with major crude oil and refined product pipelines.

The terminal has two marine docks capable of handling Aframax tankers and one barge dock. It also provides rail and truck loading as well as unloading facilities. The terminal has a crude oil storage capacity and refined product storage capacity of 4.7 million barrels and 2.4 million barrels, respectively.  

The purchase forms a part of the company’s midstream growth strategy. The Beaumont terminal is positioned to benefit from the expectations of rising volumes of North American crude oil movement into the Gulf Coast region and boost in refined product exports.

Currently, Phillips 66 carries a Zacks Rank #3 (Hold). Investors interested in the oil and gas industry could consider stocks like Encana Corp (ECA - Analyst Report) and Matrix Service Co. (MTRX - Snapshot Report). All of these stocks sport a Zacks Rank #1 (Strong Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.00 +3.09%
SANCHEZ ENE… SN 34.18 +2.67%
THE PANTRY… PTRY 21.02 +2.09%
INTEL CP INTC 35.15 +1.88%
PIPER JAFFR… PJC 54.54 +1.70%