Phillips 66 Launches Open Season for Blue Line System

Phillips 66 PSX, a leading energy company, has announced that its subsidiary, Phillips 66 Pipeline, LLC, is initiating a binding open season to solicit shipper commitments for services on its Blue Line System. This pipeline transports propane and butane from Wichita, KS, to Jefferson City, MO, and East St. Louis, IL.

The Blue Line System, a common carrier liquids product pipeline, is set to offer long-term liquified petroleum gas transportation services under binding agreements. This open season offers potential shippers an opportunity to secure long-term transportation services for LPG products on the Blue Line System through binding transportation service agreements. These services are expected to be available during the winter seasons (October through March), beginning the fourth quarter of 2024, pending approval from the Federal Energy Regulatory Commission of a related settlement.

The open season starts on Jun 7, 2024, at noon CDT and will remain open for 30 days, ending at 5:00 pm CDT on Jul 6. Interested shippers need to execute a confidentiality agreement before receiving the open season documentation.

This announcement marks a significant opportunity for shippers to secure dedicated capacity on the Blue Line System, ensuring reliable transportation of critical LPG products during peak demand winter months. The Blue Line System plays a critical role in the transportation of propane and butane across key regions. By facilitating the movement of these essential fuels, the system supports a reliable supply chain for industries and consumers, especially in winter. The open season is a strategic move to ensure long-term commitments and stability in the transportation of these fuels.

Phillips 66's move demonstrates its ongoing commitment to enhancing infrastructure and service reliability in the energy transportation sector.

Zacks Rank & Key Picks

Currently, Phillips 66 carries a Zack Rank #3 (Hold).

Investors interested in the energy sector may look at some better-ranked stocks like Archrock Inc. AROC, Sunoco LP SUN and SM Energy Company SM. While Archrock and Sunoco sport a Zacks Rank #1 (Strong Buy) each, SM Energy carries a Zacks Rank #2 (Buy) at present.

Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.

The Zacks Consensus Estimate for AROC's 2024 EPS is pegged at $1.07. The company has a Zacks Style Score of A for Growth. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 60 days.

Sunoco is a leading wholesale motor fuel distributor in the United States, boasting a vast distribution network spanning 40 states. With long-term contracts servicing more than 10,000 convenience stores, it distributes over 10 fuel brands, ensuring a stable revenue stream. SUN currently has a Value Score of A.

The Zacks Consensus Estimate for 2024 and 2025 earnings per unit is pegged at $7.29 and $7.17, respectively. The partnership has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.

SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company's attractive oil and gas investments should create long-term value for shareholders.

The Zacks Consensus Estimate for SM's 2024 EPS is pegged at $6.63. The company has a Zacks Style Score of A for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.

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