Phillips 66 spends more, increases dividend in Q1 amid downturn

Phillips 66 Partners adjusted total costs were $47.8 million in Q1 of 2016, an increase of $9.6 million from Q4 2015


Greg Garland, chairman and CEO of Phillips 66.

HOUSTON, Texas – Phillips 66 Partners LP announces first-quarter 2016 earnings of $52.3 million, or $0.44 per common unit.

Distributable cash flow was $64.1 million and adjusted earnings before interest, income taxes, depreciation and amortization (adjusted EBITDA) were $73.8 million.

“We remain on track to achieve our five-year annual distribution growth-rate objective of 30 per cent through 2018,” said Greg Garland, Phillips 66 Partners’ chairman and CEO.

On April 20 the general partner’s board of directors declared a first-quarter 2016 cash distribution of $0.481 per common unit.

“We recently increased distributions 5 per cent, the tenth consecutive quarterly increase since our IPO. We added to our portfolio by acquiring a 25 percent interest in the Sweeny NGL fractionator and storage caverns this quarter, and we commenced operations on the first segment of the Bayou Bridge pipeline in April,” said Garland.


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This distribution represents a 5 per cent increase compared with the fourth-quarter 2015 distribution of $0.458 per common unit and a 30 percent increase from the first quarter of 2015.

Financial Results

Millions of Dollars
Q1 2016 Q4 2015
Consolidated Adjusted * Consolidated Adjusted *
Total Revenues and Other Income $ 121.2 103.3 115.3 102.8
Total Costs 60.8 47.8 58.0 38.2
*The “Adjusted” column adjusts the consolidated amounts to exclude “predecessor” results prior to the acquisition effective date.


Phillips 66 Partners adjusted total revenues and other income for the first quarter of 2016 were $103.3 million, compared with $102.8 million in the fourth quarter of 2015.

This increase was due to the Sweeny fractionator and caverns acquisition, mostly offset by the absence of a nonrecurring make-whole payment received in the fourth quarter of 2015 from a joint venture, as well as lower long-haul pipeline volumes due to refinery maintenance in the first quarter.

Phillips 66 Partners adjusted total costs were $47.8 million in the first quarter of 2016, an increase of $9.6 million from the fourth quarter of 2015, largely due to the Sweeny fractionator and caverns acquisition.

  • Adjusted EBITDA of $73.8 million
  • Distributable cash flow of $64.1 million
  • Earnings of $52.3 million
  • Increased quarterly distribution by 5 percent to $0.481 per common unit
  • Acquired a 25 per cent controlling interest in Phillips 66’s Sweeny NGL fractionator and associated storage caverns
  • Announced start of commercial operations on Bayou Bridge Pipeline

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