Phillips 66 Partners LP reported a first-quarter 2021 loss of $18 million, compared with earnings of $104 million in fourth-quarter 2020. The decrease was mainly due to a $198 million impairment in the first quarter resulting from the decision to exit the Liberty Pipeline project, compared with impairments of $96 million in fourth-quarter 2020.
The company pulled out of the 350,000-b/d project with Bridger Pipeline LLC. The 700-mile, 24-in. OD pipeline was intended to carry crude oil from the Rockies and Bakken production areas to Cushing, Okla. (OGJ Online, Apr. 8, 2021).
Adjusted EBITDA was $289 million in the first quarter, compared with $318 million in the prior quarter. The decrease was primarily due to reduced volumes and higher utility costs at the partnership’s wholly owned and joint venture assets, largely due to the severe winter storms impacting the Central and Gulf Coast regions in first-quarter 2021.
As of Mar. 31, 2021, total debt outstanding was $3.9 billion. The partnership had $3 million in cash and cash equivalents and $299 million available under its revolving credit facility.
The partnership’s capital expenditures and investments for the quarter were $58 million. Growth capital included spend on the C2G Pipeline project and investment in the South Texas Gateway Terminal.
Buckeye Partners’ South Texas Gateway Terminal commissioned additional storage capacity, bringing total capacity to 8.6 million bbl and marking completion of the final construction phase. The marine export terminal has two deepwater docks with up to 800,000 b/d of export capacity. Phillips 66 Partners owns a 25% interest in the terminal.
Phillips 66 Partners continued construction of the C2G Pipeline, a 16-in. ethane pipeline that will connect its Clemens Caverns storage facility to petrochemical facilities in Gregory, Tex., near Corpus Christi, Tex. The project, backed by long-term commitments, is expected to be completed mid-2021.