Phillips 66 Partners launches IPO

Phillips 66 Partners, a subsidiary of refining and midstream company Phillips 66, said Monday it has launched an initial public offering, seeking to raise as much as $315 million.

The partnership, with assets in Texas, Louisiana and Illinois, said it will sell 15 million common units on the New York Stock Exchange under the ticker symbol PSXP. The partnership expects the units will price between $19 and $21 each, according to a filing with the U.S. Securities and Exchange Commission.

The underwriters could purchase another 2.3 million units, adding to the proceeds.

The units offered by master limited partnerships trade like stocks but offer certain tax advantages.

Phillips 66 registered for the IPO in March, saying at the time that the offering was expected to raise $300 million.

Phillips 66 is just one of several refining companies to use master limited partnerships for their pipelines and other midstream assets. Tesoro Corp. and Marathon Petroleum also have announced similar partnerships.

Phillips 66 Partners LP said its initial assets would include the Clifton Ridge crude oil pipeline, terminal and storage system in Louisiana; the Houston-area Sweeny to Pasadena refined petroleum product pipeline, terminal and storage system; and the Hartford Connector refined petroleum product pipeline, terminal and storage system in Illinois.

According to a Securities and Exchange Commission filing, the partnership said it expects Phillips 66 “will offer us opportunities to purchase additional transportation and midstream assets that it may acquire or develop in the future or that it currently owns.”