[[{“value”:”
Phillips 66 has signed a deal to acquire EPIC Y-Grade GP LLC and EPIC Y-Grade LP for $2.2 billion, expanding its midstream footprint in the Permian Basin.
The two, part of EPIC Consolidated Operations LLC, own natural gas liquids (NGL) pipelines, fractionation facilities and distribution systems.
“This transaction bolsters Phillips 66’s position as a leading integrated downstream energy provider”, Phillips 66 chair and chief executive Mark Lashier said in an online statement Monday. “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”.
EPIC’s NGL operations comprise two fractionators with a capacity of170,000 barrels a day near Corpus Christi, Texas; purity distribution pipelines stretching about 350 miles; and an NGL pipeline around 885 miles long and with a capacity of 175,000 barrels per day. The NGL pipeline links the Delaware, Midland and Eagle Ford basins to the fractionation complexes and Phillips 66’s Sweeny Hub, which has facilities for crude distilling, naphtha reforming, fluid catalytic cracking, alkylation and hydrodesulfurization, as well as aromatics units, a vacuum distillation unit and a delayed coking unit.
“EPIC NGL is in the process of increasing its pipeline capacity to 225 MBD [thousand barrels per day] and has sanctioned a second expansion to increase capacity to 350 MBD”, Phillips 66 said.
“Phillips 66 does not expect to increase its recently announced 2025 capital program in connection with that expansion”, the Houston, Texas-based downstream oil and gas company said. On December 16, 2024, Phillips 66 announced $2.1 billion in capital for 2025, comprising $1.1 billion for growth and $998 million for sustaining capital.
“EPIC NGL has also identified a third fractionation facility that could bring its fractionation capacity up to 280 MBD”, Phillips 66 added. “The facilities connect Permian production to Gulf Coast refiners, petrochemical companies, and export markets and will be highly integrated with the Phillips 66 asset base”.
Phillips 66 expects the acquisition to be “immediately accretive to earnings per share”.
Previously Lashier said the company had exceeded a $3 billion divestment plan meant to support its shareholder return target and other long-term priorities.
“We intend to continue to optimize the portfolio and rationalize non-core assets going forward”, Lashier said in a statement December 16, 2024, announcing an agreement to divest DCP GCX Pipeline LLC, which owns a 25 percent non-operating stake in the Gulf Coast Express Pipeline, to ArcLight Capital Partners LLC. “The evolution of our portfolio underscores our position as a leading integrated downstream energy provider, enhancing shareholder value and positioning the company for the future”.
We give you energy news and help invest in energy projects too, click here to learn more
Crude Oil, LNG, Jet Fuel price quote
ENB Top News
ENB
Energy Dashboard
ENB Podcast
ENB Substack
The post Phillips 66 to Acquire Midstream NGL Assets in Permian from EPIC appeared first on Energy News Beat.
“}]]