Thu, Aug 21, 2014, 4:27 AM EDT - U.S. Markets open in 5 hrs 3 mins

Recent

% | $
Quotes you view appear here for quick access.

Phillips 66 Message Board

you are viewing a single comment's thread.

view the rest of the posts
  • sollid_companiess_only sollid_companiess_only Dec 16, 2012 10:17 AM Flag

    PSX MLP inside the COP 401K

    Copdriper, you ask, "Ok...but won't the PSX shareholders receive some sort of compensation for part of their original investment in PSX (the transportation assests) being sold off in an MLP IPO...?"

    If the MLP IPO offering and subsequent business are successful, then PSX shareholders should benefit, but not from the issuance of MLP shares, cash, or other tangible assets.

    When the IPO occurs, PSX will sell shares of the MLP to the public. The money raised from this sale will go into PSX's assets, giving PSX more assets for capital investment, making it a more valuable company, and, hopefully, raising it's pps. Furthermore, I suspect that PSX will hold on to some shares of the MLP, perhaps a majority of the shares. If this is the case, then PSX and it's shareholders will benefit, pps-wise, if the MLP is successful and brings in nice profits.

    In summary, PSX shareholders can hope to profit from the MLP by money being brought in to PSX from the IPO and from profits that the MLP generates in it's business activities.

 
PSX
86.60+0.51(+0.59%)Aug 20 4:01 PMEDT

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.