So we announced PSXP partners and got the IPO out in July ahead of our original schedule. I would say we are very pleased with the IPO up to this point. The MLP PSXP will own, it will develop and it will acquire primarily fee-based assets in transportation at midstream. We look at it as a low cost source of capital. We look at it as a tool in our tool box that we can grow our midstream and transportation infrastructure faster than we might normally otherwise would have. It’s an opportunity for the PSXP to purchase assets from Phillips 66 in the transportation space.
We have a large portfolio of inventory of assets that can be dropped into the MLP. Certainly at some point in time, PSXP achieves the scale that it can step out and do its own projects. We do envision that we will make investments at the PSX level. We’ll incubate those and we will drop those into the MLP with time. As we think about the MLP itself, we are going to target top quartile distribution growth for Phillips 66 partners and I would say in the early years you expect it might actually be above top quartile because we are going from a relatively small base.
The full transcript is on seeking alpha under PSX,or go to news headlines under PSX Yahoo summary page.Sounds like they have big plans for PSXP,activating vacant pipes for crude and other projects.This is a buy and hold.