Phillips 66 to form MLP, sets 2013 budget at $3.7 bln
Dec 13 (Reuters) - U.S. refining company Phillips 66 expects 2013 capital spending to rise to $3.7 billion, and said it intends to contribute some of its oil and gas transportation assets to form a master limited partnership.
The company said it expects to raise about $300 million to $400 million in cash by selling a minority interest in the master limited partnership (MLP) in an initial public offering.
A registration statement for the offering is expected to be filed with regulators in the second quarter of 2013, Phillips 66 said in a statement.
Assets held in the MLP may include certain product and crude pipelines and terminals, rail cars and other rail infrastructure, as well as natural gas liquids assets.
The company's 2013 capital program is a 6 percent increase over the $3.5 billion earmarked for capital spending in 2012.
Phillips 66, which was spun off from ConocoPhillips earlier this year, is benefiting from access to cheaper crude oil from shale oil fields in North Dakota, Texas and Kansas.
The company expects to improve margins by controlling costs and serving the growing international refined products markets. Phillips 66 said it is targeting cost reductions and value capture in excess of $200 million before-tax by the end of 2013.