PSXP - Phillips 66 Partners: Thesis Shifts From DAPL Downside To 'Vacation Nation' Upside

• PSXP units have had a sharp rally since the U.S. Army Corps of Engineers decided not to shut down the DAPL pipeline in April.
• While a DAPL shutdown is still a medium-term risk, the environmental impact statement ("EIS") isn't due to March of 2022, and would likely be appealed. Meantime, DAPL stays open.
• That being the case, the PSXP thesis now switches to the opening up of the US economy and what I call the 'Vacation Nation' theme.
• The 'Vacation Nation' theme is built on the successful roll-out of the vaccines, significantly dropping covid-19 infection and death rates, and resulting gasoline demand that has come roaring back.

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