Phillips 66 Partners makes strong debut on NYSE

Phillips 66 Partners LP, a newly minted subsidiary of Phillips 66,  made a strong debut on the New York Stock Exchange Tuesday.

The units, trading under the ticker symbol PSXP, were priced at $23, above the target range of $19 to $21. The initial public offering raised $378 million.

The unit price rose $6.70 during the trading day to close at $29.70.

Houston-based refining and midstream company Phillips 66 formed the subsidiary earlier this year as a master limited partnership, with pipeline and storage assets in Texas, Illinois and Louisiana. Master limited partnerships’ units trade like stocks but offer certain tax advantages.

The initial public offering included 16.4 million common units. The public will own 22.9 percent to 26.3 percent of Philips 66 Partners, depending on whether underwriters exercise their option to purchase up to 2.5 million additional common units.