FEBRUARY 16, 2015
Houston-based Phillips 66 sold two natural gas pipeline systems to
its affiliate, Phillips 66 Partners, Monday for $1.01 billion in cash
and stock.
Phillips 66 Partners, a master limited partnership, will pay Phillips
66 $880 million in cash and 1.7 million new units, Fuel Fix said.
The agreement also includes $65 million in debt.
Phillips 66 Partners will acquire a one third stake in the Sand Hills
and Southern Hills natural gas liquids pipeline system and nearly a
19.46 percent stake in the Oklahoma-based Explorer Pipeline.
The deal includes the 200,000 barrel per day Sand Hills natural gas
liquid pipeline system that runs from the Permian Basin and Eagle Ford
Shale to the Gulf Coast as well as the 175,000 bpd Southern Hills NGL
system that runs from the Midcontinent area to the coast.
Phillips 66 Partnership will also acquire the 660,000 bpd Explorer
refined products pipeline running from the Gulf Coast to the Midwest.
The deal is expected to close in early March.
“This acquisition will expand our fee-based portfolio into NGL
transportation and provide us with an interest in one of the largest
refined products pipeline systems in the U.S.,” Phillips 66 Partners
chairman and CEO Greg Garland said.