I work for PSX at the corporate location in Houston. I work on the 7th floor. 7th floor is 'transportation', pipelines, terminals, truck, rail. The 8th floor is refining, the 9th floor is admin and HR. I turned in a project proposal for PSXP that will offer an estimated 109% AARR for a life span of 10 years. For clarification, we don't see projects with this potential very often. The company, right or wrong, elected to pass on funding the project because it offers seasonal economics and the company is not interested in anything except steady earnings. I see such efforts on a daily basis on the floor where I work, and many of the people that do this sort of stuff are personal and long-term acquaintances. Back to the point, the company is not foolish to a point where we don't fund 109% AARR projects. That's not it. It's that it will get funded after PSXP posts a few quarters of profits and gains credibility. For clarification, the project will earn about 60% addition to what's already being generated. I'm not an insider to the finances, but i do know what's going on within the company, and nothing I'm sharing hasn't already been presented to the Barclays's audience, except not in specific terms. All the point is that PSX and the PSXP business is intended to grow. I bought 3150 shares the day it opened, as that was all the cash I had available. The company did not offer availability through 401K or special programs, I bought mine through my brokerage account on the trading market. Expect good news on this one, but also be patient.
After listening to the CC and hearing mgt explain the hyper growth PSXP has in its future I will be adding more on any weakness. I waited and got in on the recent pullback at 29.10.... Will add more if others give up to soon and drive this back down.
n Midstream, we intend to use our MLP to grow and create value. Until our MLP is large enough to fund projects of the scale and scope we envision, we expect that first we’ll incubate the project at Phillips 66 and eventually drop them in to Phillips 66 Partners. Potential candidates for this approach would include the 100,000 barrel-per-day NGL fractionator at our Sweeny complex along with the associated infrastructure.
In addition, we are developing an LPG export terminal project at Freeport, Texas. The LPG export facility is expected to enable us to take advantage of the Company's existing midstream transportation and towards infrastructure. Combining these two projects represented two discrete $1 billion investment over the next 2 to 3 years. Ultimately once we're up and running at full capacity we expect these projects to generate on the order of $400 million to $500 million of EBITDA annually.
Startup of the frac is expected in 2015 with the export facility following closely to 2016. How long are they going to incubate?
you bring up some very good points.. Your question about how long to incubate is a valid question. You could call or email investor relations and ask them that. As a unit holder of the MLP, it is not an unrealistic question to ask.
Overseas exports for refined products are rapidly growing while the North American market remains flat. I can easily see how management is confident with the upper range growth of 20%+ yearly.. I kind of hope this corrects again back to $29 as I would like to buy more. GL