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Phillips 66 Partners Cheers Unitholders With Distribution Hike

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Phillips 66 Partners LP announced the increment in cash distributions for the second quarter of 2019.

The new distribution of 85.5 cents per common unit represents a sequential increase of 1.2% and a year-over-year hike of 14%. The increased distribution is likely to be paid on Aug 13, to the unitholders of records as of Jul 31.

With the latest hike, the partnership has increased its distributions for 23rd straight quarters since the initial public offering in 2013. This reflects Phillips 66 Partners’ stable business model and sustainable fee-based revenues from its diversified midstream assets, comprising pipeline networks transporting oil, natural gas liquids and refined petroleum products. The partnership also operates terminal assets.

Phillips 66 Partners is well-positioned to increase distributions in the coming quarters on huge backlog of organic growth projects that includes Lake Charles isomerization unit, Gray Oak Pipeline, Sweeny to Pasadena products expansion and others.

Headquartered in Houston, TX, Phillips 66 Partners is likely to report second-quarter 2019 earnings on Jul 26. The Zacks Consensus Estimate for the partnership’s earnings for the to-be-reported quarter is pegged at $1.13.

 

The partnership currently carries a Zacks Rank #3 (Hold). Some better-ranked players in the energy space are Oceaneering International, Inc. (OII - Free Report) , Helix Energy Solutions Group, Inc. (HLX - Free Report) and Approach Resources Inc. . While Oceaneering and Helix Energy currently sport a Zacks Rank #1 (Strong Buy), Approach Resources carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Oceaneering has surpassed the Zacks Consensus Estimate for earnings in the past four quarters.

Helix Energy is likely to witness earnings growth of 47.4% in 2019.

Approach Resources has surpassed the Zacks Consensus Estimate for earnings in three of the past four quarters.

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