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Phillips 66 Partners (PSXP) Q3 Earnings and Revenues Beat

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Phillips 66 Partners LP (PSXP - Free Report) reported third-quarter adjusted 2021 earnings per unit of $1, beating the Zacks Consensus Estimate by a penny and increasing from the year-ago profit of 85 cents.

Revenues of $452 million increased from $394 million in the year-ago quarter and beat the Zacks Consensus Estimate of $416 million.

The strong quarterly results were driven by increased equity earnings from the Bakken and Gray Oak pipelines. Higher terminal throughput and refined product volumes boosted the results. Recovered refined product and fuel demand played a major role as more people are stepping out for work and leisure owing to the rapid rollout of coronavirus vaccines as well as easing of restrictions.

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

Major Development

Phillips 66 (PSX - Free Report)  recently announced that it has agreed to acquire Phillips 66 Partners’ remaining units for $3.4 billion. The move is expected to simplify Phillips 66’s governance and corporate structure. The deal is likely to complete in first-quarter 2022.

PSXP’s Operating Information

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

Pipelines: For third-quarter 2021, the partnership generated revenues of $121 million, up from $117 million in the prior-year period. An increase in pipeline volumes of crude oil and refined petroleum products as well as natural gas liquids aided the segment.

Pipeline volumes of 1,948 thousand barrels per day (Mbpd) rose from the year-ago figure of 1,774 Mbpd. Yet, average pipeline revenues of 67 cents per barrel decreased from 71 cents in the year-ago quarter.

Terminals: The partnership generated $40 million revenues, up from $36 million in the year-ago quarter, primarily due to higher throughput volumes of refined petroleum products and crude oil. Terminal throughput volumes came in at 1,226 Mbpd, up from the year-ago period’s 996 Mbpd.

Average terminaling revenue per barrel was 36 cents for the quarter versus 39 cents in the year-ago period.

Storage, Processing & Other activities: Through these activities, the partnership generated revenues of $122 million, up from $112 million in the year-ago quarter.

Costs & Expenses

For the September quarter of 2021, it reported operating and maintenance expenses of $89 million, up from $85 million in the year-ago period. Total costs and expenses increased to $197 million for third-quarter 2021 from the year-ago level of $177 million.

Balance Sheet & Capex

As of Sep 30, 2021, the partnership recorded cash and cash equivalents of $71 million, up from the second quarter’s $2 million. Total debt at the end of the quarter under review was $3,896 million. It has $749 million available under the revolving credit facility.

Capital expenditure and investment for the third quarter totaled $103 million.

Zacks Rank & Other Stocks to Consider

The partnership currently carries a Zacks Rank #2 (Buy). Other top-ranked stocks from the energy space include HollyFrontier Corporation (HFC - Free Report) and PHX Minerals Inc. (PHX - Free Report) , each holding a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

HollyFrontier’s bottom line for 2021 is expected to rise 260.9% year over year.

PHX Minerals’ bottom line for the current year is expected to rise 280% year over year.

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