Phillips 66 Partners says could cut capex, dividends if DAPL shuts

Phillips 66 Partners (NYSE:PSXP) may need to cut capital spending and dividends if the Dakota Access Pipeline is shut by court order, CFO Kevin Mitchell said during today’s earnings conference call.

FY 2021 capital spending could be cut substantially below this year’s ~$900M budget, in the event the 570K bbl/day pipeline is shut for a prolonged period, company executives said.

Rail transport would be an alternative to DAPL, so a shutdown could boost business at Phillips Partners’ Palermo, N.D., rail terminal

The company’s now-postponed Liberty oil pipeline could be revived and revenues from it used to offset DAPL losses, but first it would need to secure shipper commitments, officials said.

Phillips 66 Partners this morning reported better than forecast Q2 GAAP earnings.


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