Phillips 66 Partners LP recorded second-quarter 2021 earnings of $225 million, compared with a loss of $18 million in the first quarter (OGJ Online, Apr. 30, 2021). Cash from operations was $286 million, and distributable cash flow was $267 million. Adjusted EBITDA was $337 million in the second quarter, compared with $289 million in the prior quarter.
The increase in second-quarter earnings and adjusted EBITDA reflect higher volumes and lower utility costs at the partnership’s wholly owned and joint venture assets following the first-quarter winter storms and higher pipeline and terminal volumes from increased utilization at Phillips 66-operated refineries.
Liquidity, capital expenditures, investments
As of June 30, 2021, total debt outstanding was $3.9 billion. The partnership had $2 million in cash and cash equivalents and $734 million available under its revolving credit facility.
The partnership’s capital expenditures and investments for the quarter were $61 million. Growth capital included spend on the C2G Pipeline project and funding for the Bakken Pipeline optimization project.
On Apr. 1, Phillips 66 Partners repaid the remaining $50 million of tax-exempt bonds. Also in April, the partnership borrowed $450 million under a new term loan agreement. Proceeds were primarily used to repay amounts borrowed under the partnership’s $750 million revolving credit facility.
Update
Phillips 66 Partners continued construction of the C2G Pipeline, a 16-in. ethane pipeline that will connect its Clemens Caverns storage facility to petrochemical infrastructure in Gregory, Tex., near Corpus Christi, Tex. The project is backed by long-term commitments. The pipeline is expected to be operational in fourth-quarter 2021.
The Bakken Pipeline optimization project, supported by minimum volume commitments from long-term contracts, continues to progress with the next phase of incremental capacity commencing service in August.
