Phillips 66 plans to form a master limited partnership with some of its transportation assets although the company said it’s still evaluating which assets will go into the MLP.
The MLP is likely to include certain product and crude pipelines and terminals, rail cars, and other rail infrastructure along with natural gas liquids assets.
Phillips 66 said it expects to file a registration statement for an initial public offering with the US Securities and Exchange Commission in second-quarter 2013.
Subject to market conditions and final approval by Phillips 66’s board, the company anticipates selling a minority interest in the MLP. An IPO is expected to be launched in second-half 2013. Phillips 66 anticipates the offering could raise up to $400 million in gross cash proceeds.
Greg Garland, Phillips 66 chairman and chief executive officer, said the MLP is expected to help attract investments with which to expand transportation and midstream businesses.
Phillips 66 became an independent company from ConocoPhillips in May.