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Phillips 66 Message Board

  • bradshaw22000 bradshaw22000 Jul 15, 2013 8:44 AM Flag

    PSX Announces MLP Offering!

    Announced this morning. Details coming.

    Sentiment: Buy

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    • Does anyone know how to calculate the P/E ratio of the IPO (PSXP) based on its 1st Q earning and last years earning ending 12/31/12? The prospectus looks quite good for revenue and earning except for the dilution.

    • Looks like July 23 it will be trading.$19-$21.

    • Can anyone put a positive spin on this IPO , just feels like dilution to me.

      • 2 Replies to chops2191
      • RELATED QUOTES
        Symbol Price Change
        PSX 59.72 +0.62

        HOUSTON (AP) -- Phillips 66 Partners LP, a subsidiary of refining and pipeline company Phillips 66, is seeking to raise as much as $315 million in its initial public offering of stock.

        Phillips 66 said Monday that it plans to sell 15 million shares of the unit for $19 to $21. The banks managing the deal could buy another 2.3 million shares, adding to the proceeds.

        Phillips 66 formed Phillips 66 Partners in February to operate and acquire pipelines, terminals and storage systems. The company expects to operate initially in Illinois, Louisiana and Texas.

        The offering represents a 20.9 percent limited partner interest in Phillips 66 Partners, or a 24 percent limited partner interest if the bankers in charge of the deal buy all the extra stock. Phillips 66 will own the remaining limited partner interest in Phillips 66 Partners, as well as its 2 percent general partner interest.

        A master limited partnership is publicly traded and gets most of its cash flow from real estate, natural resources and commodities. There are tax benefits in those partnerships that some investors find attractive.

        The units are expected to trade on the New York Stock Exchange under the ticker symbol "PSXP."

      • First, when it is all done thewill still hold at least 75% of the units plus the valuable managing partner title. This is away to raise money for future growth with out issuing shares of the parent company. The assets dropped down are assets that qualify and have low return on equity. The proceeds are then invested in high return assets. You need to find a good primer on how the managing partner gets bigger payouts as the dividend on units exceeds certian predetermined levels spelled out in the offering.

 
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