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Phillips 66 Partners' (PSXP) Liberty Exit to Hit Q1 Results

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Phillips 66 Partners LP PSXP recently provided its first-quarter 2021 guidance. It is scheduled to provide quarterly results on Apr 30, 2021.

The partnership expects the bottom line in the range of a loss of $60 million to a profit of $10 million. Its net income is expected to incorporate an impairment charge of $180-$210 million, connected to the Liberty Pipeline project exit. The Liberty Pipeline was designed to ship crude oil from the Rockies and Bakken regions to Cushing, OK. The development and construction of the major crude pipeline project was deferred last year as a result of the challenging business environment.

Additionally, cold winter storms are expected to have affected the partnership’s asset utilization in the first quarter. Also, the unfavorable weather conditions are expected to have resulted in increased utility expenses. In the last reported quarter, Phillips 66 Partners’ bottom line was affected by increased costs and expenses, as well as lower throughput volumes of refined petroleum products and crude oil. Also, decreased Sand Hills Pipeline volumes added to the woes. However, the negatives were partially offset by higher Bakken Pipeline volumes and increased average terminaling revenue per barrel.

The Zacks Consensus Estimate for first-quarter earnings is pegged at 89 cents per unit, indicating a 4.3% decline from the year-ago quarter. In the past 30 days, the estimate declined 3.3%. The consensus mark for first-quarter revenues is pegged at $390 million, signalling a 3.5% year-over-year decrease.

Importantly, the parent company, Phillips 66’s PSX first-quarter loss might be greater than expected due to cold weather that also affected petrochemical operations in the U.S. Gulf Coast. Its adjusted net loss is projected in the range of $550-$700 million.

Price Performance

Phillips 66 Partners’ units have declined 14.5% in the past year against the industry’s 93.5% rally.

Zacks Rank & Stocks to Consider

The partnership currently has a Zacks Rank #4 (Sell). Some better-ranked players in the energy space include CrossAmericaPartners LP CAPL and Equinor ASA EQNR, each having a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CrossAmerica’s bottom line for first-quarter 2021 is expected to surge 166.7% year over year.

Equinor’s bottom line for first-quarter 2021 is expected to rise 111.8% year over year.

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Phillips 66 Partners LP (PSXP) : Free Stock Analysis Report

CrossAmerica Partners LP (CAPL) : Free Stock Analysis Report

Equinor ASA (EQNR) : Free Stock Analysis Report

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