After the recent flurry of mergers and acquisitions in the upstream space across North America, Phillips 66 thinks the midstream space is ripe for consolidation.

Phillips 66 Gulf Coast infra

The Houston-based management group discussed third quarter performance for the energy manufacturing and logistics firm during a conference call with analysts Friday.

CFO Kevin Mitchell thinks the company could position itself to participate in broader industry consolidation.

“We think it needs to happen in the midstream space. You’re seeing that happen in a pretty big way in the upstream right now,” he said. For the midstream segment “bigger is better” would be helpful as it would lead companies to “be more efficient to drive cost efficiencies and commercial synergies through the entire midstream value...