Phillips 66 Partners LP (PSXP)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Phillips 66 Partners LP (PSXP) trades at $42.01. Phillips 66 Partners LP is a midstream energy company focused on owning and operating assets for the transportation, storage, and processing of crude oil and natural gas liquids. Sector: Energy.
Price live · AI analysis from Mar 17, 2026Analyst Coverage for PSXP: PSXP does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates PSXP against Energy peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
PSXP: 1/1 perspectives are bearish.
How is this calculated? →Phillips 66 Partners LP (PSXP) Energy Operations & Outlook
Phillips 66 Partners LP, a subsidiary of Phillips 66, specializes in midstream energy infrastructure, providing transportation, terminaling, and processing services for crude oil and natural gas liquids. With a high profit margin of 67.8%, the company focuses on stable, fee-based revenue streams within the energy sector.
What Is the Investment Thesis for PSXP?
Phillips 66 Partners LP presents a compelling investment case based on its strategic positioning in the midstream energy sector and its strong financial performance. The company's high profit margin of 67.8% and gross margin of 87.7% indicate efficient operations and effective cost management. A dividend yield of 8.33% offers attractive income potential for investors. The company's focus on fee-based revenue streams provides stability and predictability in earnings. Growth catalysts include potential expansions of existing assets and strategic acquisitions to increase its midstream footprint. However, potential risks include fluctuations in commodity prices and regulatory changes affecting the energy sector. Investors may want to evaluate the company's beta of 0.97, indicating moderate volatility relative to the market.
Based on FMP financials and quantitative analysis
PSXP Key Highlights
- Profit Margin of 67.8% reflects strong operational efficiency and effective cost management.
- Gross Margin of 87.7% indicates a high level of profitability from core business activities.
- Dividend Yield of 8.33% provides an attractive income stream for investors.
- Beta of 0.97 suggests moderate volatility compared to the broader market.
- P/E Ratio of 12.45 indicates a potentially undervalued stock relative to its earnings.
Who Are PSXP's Competitors?
PSXP is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| DCP DCP Midstream, LP | $41.69 | +0.07% | $8.70B | 48 |
| DINO HF Sinclair Corporation | $74.31 | +2.50% | $13.40B | 94 |
| ENLC EnLink Midstream, LLC | $14.12 | -0.21% | $6.45B | — |
| ETRN Equitrans Midstream Corporation | $12.42 | +0.57% | $5.43B | — |
| EXE Expand Energy Corporation | $89.09 | -1.80% | $21.31B | 96 |
| VG Venture Global, Inc. | $10.87 | -2.38% | $26.53B | 65 |
| GLNG Golar LNG Limited | $49.35 | +0.69% | $5.02B | 64 |
| OKE ONEOK, Inc. | $87.27 | -0.64% | $54.98B | 64 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are PSXP's Key Strengths?
- Strategic asset locations in key energy production areas.
- Integrated service offerings across the midstream value chain.
- Strong relationship with parent company Phillips 66.
- Stable, fee-based revenue streams from long-term contracts.
What Are PSXP's Weaknesses?
- Dependence on the performance of Phillips 66.
- Exposure to fluctuations in commodity prices.
- Potential for regulatory changes affecting the energy sector.
- Limited geographic diversification.
What Could Drive PSXP Stock Higher?
- Potential expansion of existing pipeline infrastructure to increase transportation capacity.
- Strategic acquisitions of complementary midstream assets to expand geographic reach.
- Increased demand for natural gas liquids (NGLs) driving higher processing volumes.
- Regulatory approvals for new infrastructure projects expected in Q3 2026.
- Focus on operational efficiency and cost reduction initiatives.
What Are the Key Risks for PSXP?
- Fluctuations in commodity prices affecting revenue streams.
- Regulatory changes impacting midstream operations and infrastructure development.
- Increased competition from other midstream energy companies.
- Environmental regulations and concerns impacting operational costs.
- Economic downturns affecting energy consumption and demand.
What Are the Growth Opportunities for PSXP?
- Expansion of Existing Assets: Phillips 66 Partners LP can expand its existing infrastructure, such as pipelines and storage facilities, to increase capacity and serve growing demand in key regions. This includes debottlenecking projects and strategic investments in areas with increasing production. The market for midstream infrastructure is expected to grow as energy production increases, potentially adding significant revenue streams over the next 3-5 years.
- Strategic Acquisitions: The company can pursue strategic acquisitions of complementary midstream assets to expand its geographic footprint and service offerings. This includes acquiring pipelines, terminals, and processing plants in high-growth areas. The timeline for acquisitions can vary, but successful integration can lead to increased market share and revenue growth within 2-3 years.
- Increased Throughput Volumes: Phillips 66 Partners LP can increase the volume of crude oil, refined products, and NGLs transported and processed through its existing infrastructure. This can be achieved through enhanced operational efficiency, improved customer relationships, and strategic partnerships. Increased throughput volumes can lead to higher fee-based revenues and improved profitability over the next 1-2 years.
- Development of New Infrastructure Projects: The company can invest in the development of new midstream infrastructure projects, such as pipelines and storage facilities, to support growing energy production and demand. These projects can provide long-term revenue streams and enhance the company's competitive position. The timeline for new infrastructure projects can range from 3-5 years, depending on regulatory approvals and construction timelines.
- Optimization of Existing Operations: Phillips 66 Partners LP can focus on optimizing its existing operations to reduce costs, improve efficiency, and enhance profitability. This includes implementing advanced technologies, streamlining processes, and improving asset utilization. Operational improvements can lead to immediate cost savings and increased revenue generation within the next year.
What Opportunities Does PSXP Have?
- Expansion of existing assets to increase capacity.
- Strategic acquisitions of complementary midstream assets.
- Increased throughput volumes through existing infrastructure.
- Development of new midstream infrastructure projects.
What Threats Does PSXP Face?
- Increased competition from other midstream energy companies.
- Changes in energy demand and production patterns.
- Environmental regulations and concerns.
- Economic downturns affecting energy consumption.
What Are PSXP's Competitive Advantages?
- Strategic Asset Locations: The company's midstream assets are strategically located in key energy production and consumption regions, providing a competitive advantage.
- Integrated Service Offerings: Phillips 66 Partners LP offers a comprehensive suite of midstream services, including transportation, terminaling, and processing, creating value for customers.
- Relationship with Phillips 66: The company benefits from its relationship with Phillips 66, providing a stable foundation and access to growth opportunities.
- Long-Term Contracts: The company's long-term contracts with customers provide stable and predictable revenue streams.
What Does PSXP Do?
Phillips 66 Partners LP, established in 2013 and headquartered in Houston, Texas, operates as a midstream energy company. As a subsidiary of Phillips 66 Project Development Inc., it focuses on owning, operating, developing, and acquiring midstream assets across the United States. The company's operations encompass a wide array of services, including the transportation, terminaling, processing, stevedoring, storage, and fractionation of crude oil, refined petroleum products, and natural gas liquids (NGLs). Additionally, Phillips 66 Partners LP provides rail terminal services, enhancing its integrated service offerings within the midstream sector. The company's strategic focus on fee-based revenue streams and operational efficiency has contributed to its strong financial performance, marked by a high profit margin of 67.8%. Phillips 66 Partners LP plays a crucial role in the energy value chain, connecting producers and consumers through its extensive network of midstream assets. Its relationship with Phillips 66 provides a stable foundation and access to growth opportunities within the broader energy landscape. The company's commitment to safety, environmental stewardship, and operational excellence underpins its long-term sustainability and value creation.
What Products and Services Does PSXP Offer?
- Owns and operates midstream assets in the United States.
- Provides transportation of crude oil, refined petroleum products, and natural gas liquids.
- Offers terminaling services for storing and distributing energy products.
- Engages in the processing of natural gas liquids.
- Provides stevedoring services for loading and unloading cargo.
- Offers fractionation services to separate NGLs into different components.
- Provides rail terminal services for transporting energy products by rail.
How Does PSXP Make Money?
- Generates revenue primarily through fee-based agreements for transportation, terminaling, and processing services.
- Operates midstream assets that connect producers and consumers of crude oil, refined products, and NGLs.
- Focuses on long-term contracts with customers to ensure stable and predictable revenue streams.
What Industry Does PSXP Operate In?
Phillips 66 Partners LP operates within the midstream sector of the oil and gas industry, which involves the transportation, storage, and processing of crude oil, natural gas, and refined products. The midstream sector is influenced by factors such as energy demand, infrastructure development, and regulatory policies. The competitive landscape includes companies like DCP Midstream, Inc. (DCP), Delek Logistics Partners, LP (DINO), EnLink Midstream, LLC (ENLC), Energy Transfer LP (ETRN), and Excelerate Energy, Inc. (EXE). These companies compete on the basis of geographic reach, service offerings, and operational efficiency. The midstream sector benefits from increasing energy production and demand, driving the need for expanded infrastructure and services.
Who Are PSXP's Key Customers?
- Phillips 66 (parent company)
- Refiners of crude oil and natural gas liquids
- Producers of crude oil and natural gas liquids
- Other energy companies requiring midstream services
Net sellingInsider Activity
The most recent 12 insider filings for Phillips 66 Partners LP break down as 10 sales and 2 purchases. On net that is roughly 199K shares disposed (about $71K), a signal worth weighing alongside the fundamentals.
P/E 12.4Key Financial Metrics
Return on assets is 10.9%, showing how much profit it generates from its asset base. PSXP trades at a trailing price-to-earnings ratio of 12.45, below the Energy sector average of ~17x. A current ratio of 0.34 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 8.0%, the inverse of the P/E and a quick read on earnings relative to price.
Company Profile
Phillips 66 Partners LP operates in the Oil & Gas Midstream industry within the Energy sector. It is headquartered in Houston, US. The company is led by CEO Gregory Garland. PSXP has traded publicly since 2013.
PSXP Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis
Bull Case vs Bear Case
Bull Case
- Strategic asset locations in key energy production areas.
- Integrated service offerings across the midstream value chain.
- Strong relationship with parent company Phillips 66.
- Stable, fee-based revenue streams from long-term contracts.
Bear Case
- Dependence on the performance of Phillips 66.
- Exposure to fluctuations in commodity prices.
- Potential for regulatory changes affecting the energy sector.
- Limited geographic diversification.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · July 2026
PSXP Latest News
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Stocks That Hit 52-Week Highs On Friday
· Dec 20, 2019
PSXP Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for PSXP.
Price Targets
Wall Street price target analysis for PSXP.
PSXP MoonshotScore
What does this score mean?
The MoonshotScore rates PSXP's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Leadership: Gregory Garland
CEO
Gregory Garland serves as the CEO of Phillips 66 Partners LP, bringing extensive experience in the energy sector. His career includes various leadership roles within Phillips 66, focusing on refining, midstream, and chemicals. Garland holds a degree in Chemical Engineering, providing a strong technical foundation for his strategic decision-making. He has been instrumental in driving operational efficiency and growth initiatives across the organization.
Track Record: Under Gregory Garland's leadership, Phillips 66 Partners LP has focused on expanding its midstream infrastructure and optimizing its existing assets. Key achievements include strategic acquisitions and increased throughput volumes, contributing to the company's strong financial performance. Garland has also emphasized safety and environmental stewardship, aligning the company's operations with sustainable practices.
What Investors Ask About Phillips 66 Partners LP (PSXP) — Energy
What does Phillips 66 Partners LP do?
Phillips 66 Partners LP is a midstream energy company that owns, operates, develops, and acquires assets primarily in the United States. The company focuses on providing transportation, terminaling, processing, and storage services for crude oil, refined petroleum products, and natural gas liquids (NGLs). These services connect producers and consumers, facilitating the movement of energy resources across the country. The company's strategic assets and long-term contracts provide a stable foundation for revenue generation.
What do analysts say about PSXP stock?
Analyst consensus on Phillips 66 Partners LP (PSXP) reflects a neutral outlook, considering its stable, fee-based revenue model and strong financial metrics. Key valuation metrics, such as the P/E ratio of 12.45 and dividend yield of 8.33%, are closely monitored. Growth considerations include potential expansions of existing assets and strategic acquisitions. Investors should conduct their own due diligence and consider their individual risk tolerance and investment objectives before making any investment decisions.
What are the main risks for PSXP?
The main risks for Phillips 66 Partners LP include fluctuations in commodity prices, which can affect revenue streams, and regulatory changes impacting midstream operations and infrastructure development. Increased competition from other midstream energy companies and environmental regulations also pose potential challenges. Additionally, economic downturns affecting energy consumption and demand could negatively impact the company's financial performance. These risks should be carefully considered when evaluating an investment in Phillips 66 Partners LP.
How does Phillips 66 Partners LP manage environmental risks?
Phillips 66 Partners LP manages environmental risks through a comprehensive approach that includes strict adherence to environmental regulations, investments in advanced technologies, and implementation of best practices for safety and environmental stewardship. The company focuses on minimizing emissions, preventing spills, and protecting natural resources. Regular audits and inspections are conducted to ensure compliance and identify areas for improvement. Phillips 66 Partners LP is committed to operating in an environmentally responsible manner and minimizing its impact on the environment.
What is Phillips 66 Partners LP's production cost structure?
Phillips 66 Partners LP's production cost structure primarily involves the operational expenses associated with maintaining and operating its midstream assets, including pipelines, terminals, and processing facilities. Key cost components include labor, energy, maintenance, and regulatory compliance. The company focuses on optimizing its operations to reduce costs and improve efficiency. Its high gross margin of 87.7% indicates effective cost management and a strong ability to generate profits from its core business activities. The company continually seeks to improve its cost structure through technological advancements and operational efficiencies.
What are the key factors to evaluate for PSXP?
Evaluate PSXP on fundamentals, analyst consensus, and risk factors. Not financial advice.
How frequently does PSXP data refresh on this page?
PSXP prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven PSXP's recent stock price performance?
Phillips 66 Partners LP (PSXP) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Strategic asset locations in key energy production areas. See the News tab for the latest drivers. Past performance does not predict future results.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- The information provided is based on available data and should not be considered as financial advice.
- Investors should conduct their own due diligence before making any investment decisions.