Top Gas Companies To Watch In Right Now

Top Gas Companies To Watch In Right Now: Phillips 66 Partners LP (PSXP)

Phillips 66 Partners LP, incorporated on February 20, 2013, owns, operates, develops and acquires primarily fee-based crude oil, refined petroleum product and natural gas liquids (NGL) pipelines and terminals and other transportation and midstream assets. The Companys initial assets consist of the three systems, which include Clifton Ridge crude system, Sweeny to Pasadena products system and Hartford Connector products system. A refined petroleum product pipeline, terminal and storage system extending from Phillips 66s Sweeny refinery in Old Ocean, Texas, to its refined petroleum product terminal in Pasadena, Texas, and ultimately connecting to the Explorer and Colonial refined petroleum product pipeline systems and other third-party pipeline and terminal systems.

A crude oil pipeline, terminal and storage system located in Sulphur, Louisiana, that is the primary source for delivery of crude oil to Phillips 66s Lake Charles refinery. A refined petrol eum product pipeline, terminal and storage system located in Hartford, Illinois, that distributes diesel and gasoline produced at the Wood River refinery (a refinery owned by a joint venture between Phillips 66 and Cenovus Energy Inc.) to third-party pipeline and terminal systems, including the Explorer refined petroleum product pipeline system.

Advisors' Opinion:

• [By Eric Volkman]

  A new oil partnership with a storied name has made a splash on its market debut. Phillips 66 Partners (NYSE: PSXP  ) began trading on the New York Stock Exchange this morning and at the moment is trading at $29.87, nearly 30% above its IPO price of $23 per share.

• [By Aimee Duffy]

  We've watched several midstream spinoffs from refiners hit the market with very low yields. Most recently, Phillips 66 Partners (NYSE: PSXP  ) was less than 3% when it debuted, and it collapsed even further with PSXP's first-day! pop -- all this despite the average yield for an MLP in today's market coming in around 6%. Here's a quick look at what the other refining midstream MLPs are yielding right now.

• [By Robert Rapier]

  Refiners that have spun off midstream assets have done very well over the past years.Valero Energy Partners(NYSE: VLP) is up nearly 60 percent since its December IPO,Phillips 66 Partners(NYSE: PSXP) has more than doubled since its July IPO (and is the biggest gainer among MLPs year-to-date), andMPLX(NYSE: MPLX) — formed fromMarathon Petroleum(NYSE: MPC) — is up 110 percent since its November 2012 IPO.

• [By Robert Rapier] In last week’s MLP Investing Insider (MLPII) I took a look at the MLP IPOs from the first half of 2013. Today I review the half dozen that have debuted in the second half of 2013.
  
  Phillips 66 Partners (NYSE: PSXP) launched on July 23 as one of the most anticipated IPOs this year. PSXP owns some of the midstream logistics assets of its sponsor, Phillips 66 (NYSE: PSX). PSXP has yet to announce its first distribution, but according to the IPO prospectus the minimum yield will be $0.85 per unit on an annualized basis. At the current unit price, this equates to a minimum annual yield of 2.8 percent, which is mainly a function of the huge run-up in unit price between the IPO pricing and today’s unit price. If the distribution does come in near the minimum, the unit price will almost certainly correct downward following the announcement.
  
  Marlin Midstream Partners (Nasdaq: FISH) launched on July 26. The partnership provides natural gas gathering, transporta tion, treating and processing services, NGL transportation services and crude oil transloading services. Marlin’s assets include three natural gas processing facilities in Texas, two natural gas gathering systems, two NGL transportation pipelines, and two crude oil transloading facilities. Marlin expects most of the gross margin to be generated under fee-ba! sed, mini! mum volume commercial agreements.
  

  Marlin targets a coverage ratio of 1.10x to support distributions. Marlin’s partnership agreement provides for a minimum quarterly distribution of $0.35 per unit for each whole quarter, or $1.40 per unit on an annualized basis. The prorated distribution for the two months of the recently concluded quarter since tje IPO should be announced soon. The minimum annual yield based on the current unit price is projected at 7.7 percent. The unit price has declined 6 percent since the IPO.
  

source from Top Penny Stocks For 2015:http://www.topstocksforum.com/top-gas-companies-to-watch-in-right-now-2.html