Phillips 66 to Form Master Limited Partnership

Investors who can't get enough of the ConocoPhillips (NYSE: COP  ) family may have another investment opportunity coming their way.  Phillips 66 (NYSE: PSX  ) , the refining and marketing operation ConocoPhillips spun off earlier this year, announced today it is planning to form a master limited partnership for its transportation assets.

The energy industry is no stranger to the master limited partnership, as almost all midstream companies are structured as MLPs.  The tax-advantaged structure generates strong investment participation with its high yields and lucrative distributions. In fact, Phillips 66 already owns a 50% stake in the general partner of DCP Midstream Partners (NYSE: DPM  ) , a Denver-based MLP.

The company is currently mulling which assets it will drop down into the new MLP. Possibilities include certain crude oil and products pipelines and terminals, its rail cars and infrastructure, and its natural gas liquids infrastructure.

Subject to board approval, Phillips 66 expects to file its IPO registration statement with the SEC by the end of the second quarter of 2013, with shares to begin trading by the second half of next year.


Read/Post Comments (0) | Recommend This Article (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2153185, ~/Articles/ArticleHandler.aspx, 7/30/2014 11:31:40 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

TREND TRACKER: Get Rich When the Web Goes Dark

It's time to say "goodbye" to your Internet! One bleeding-edge technology is about to put the World Wide Web to bed. And if you act right away, it could make you wildly rich. Experts are calling it the single largest business opportunity in the history of capitalism… The Economist is calling it "transformative"... but you'll probably just call it "how I made my millions." Big money is already on the move. Don't be too late to the party – find out the 1 stock to own when the Web goes dark.