Phillips 66 adds 1,235 miles of pipelines in $2.2 billion EPIC NGL acquisition
(UI) — Phillips 66 has agreed to acquire EPIC Y-Grade GP, LLC and EPIC Y-Grade, LP, which include natural gas liquids (NGL) pipelines, fractionation facilities, and distribution systems. The $2.2 billion cash deal is expected to close following regulatory approval and customary conditions.
The move strengthens Phillips 66’s position in the Permian Basin and enhances its NGL value chain.
“This transaction bolsters Phillips 66’s position as a leading integrated downstream energy provider,” said Mark Lashier, chairman and CEO of Phillips 66. “This transaction optimizes our Permian NGL value chain, allows Phillips 66 to provide producers with comprehensive flow assurance, reaching fractionation facilities near Corpus Christi, Sweeny, and Mont Belvieu, Texas, and is expected to deliver attractive returns in excess of our hurdle rates.”
The EPIC NGL business includes two fractionators near Corpus Christi with a capacity of 170,000 barrels per day (bpd), 350 miles of purity distribution pipelines, and an 885-mile NGL pipeline connecting the Delaware, Midland, and Eagle Ford basins to Gulf Coast facilities. Expansion plans aim to boost the pipeline's capacity to 350,000 bpd and add a third fractionation facility, increasing total fractionation capacity to 280,000 bpd.
Phillips 66 stated that these expansions align with its long-term strategy and will not impact its previously announced 2025 capital program. The integration of EPIC’s assets will connect Permian Basin production to Gulf Coast refiners, petrochemical companies, and export markets.
The acquisition is set to be immediately accretive to Phillips 66’s earnings per share upon closing.
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