Phillips 66 (NYSE:PSX) intends to manufacture an oil export terminal offshore U.S. Gulf Coast, per Reuters. The deepwater terminal will not only expand the company’s logistics business but will also compete with other export terminals planning to dispatch domestic oil across the globe.
For permits from the federal and state levels, the company has sent applications, added Reuters. The Bluewater Texas Terminal may commence operations by 2021, following approvals from Texas regulators, U.S. Coast Guard and U.S. Maritime Administration.
The deepwater export terminal, with probable loading capacity of roughly 1.56 million barrel per day, will dispatch crude that will be transported through the to-be-constructed pipelines — Liberty Pipeline and Red Oak Pipeline. Notably, Phillips 66 recently created two separate joint ventures for constructing the pipelines — expected to commence initial operations by the March quarter of 2021. The produced crude oil that will be transported to the deepwater export terminal will be from Rockies, Bakken and Permian resources.
The manufacturing of export terminals in the United States is likely to further boost export volumes of domestic crude that is available in plentiful and is being produced in the prolific shale plays. After lifting the ban on crude export volumes in 2015, America has witnessed oil export volumes of 3.12 million barrels per day in June, per Reuters.
Headquartered in Houston, TX, Phillips 66 is primarily engaged in refining, transportation, storage and chemicals operations. The stock currently carries a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy sector include Apache Corporation (NYSE:APA) , Ecopetrol S.A. (NYSE:EC) and Anadarko Petroleum Corporation (NYSE:APC) . All the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Apache has average positive earnings surprise of 6.6% for the last four quarters.
Ecopetrol is likely to witness earnings growth of 25.3% through 2019.
Anadarko Petroleum has average positive earnings surprise of 6.6% for the last four quarters.
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Phillips 66 (PSX): Free Stock Analysis Report
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