Phillips 66 to acquire epic NGL business

Phillips 66 signed a final agreement to buy epic Y-Class GP LLC and EPIC Y-Grade LP, which owns various subsidiaries and long-drawn natural gas fluids (NGL) pipelines, fractional facilities and distribution systems for a total cash consideration of $ 2.2 billion, subject usual purchase price adjustments.

When closing, the transaction is expected to be immediately accrete for earnings per year. Stock.

“This transaction strengthens Phillips 66’s position as a leading integrated downstream energy provider,” says Mark Lashier, chairman and CEO of Phillips 66, in a business statement. “This transaction optimizes our Permian NGL value chain, Phillips 66 allows the manufacturers to give the manufacturers extensive flow insurance and when fractional facilities near Corpus Christi, Seeny and Mont Belvieu, Texas, and are expected to deliver attractive returns over our obstacle rates.”

The epic NGL business consists of two fractionators, a total of 170,000 barrels per year. Day (bpd), near Corpus Christi, Texas; about 350 miles of purity distribution pipes; and an 885 km NGL pipeline (175,000 BPD) connecting production articles in Delaware, Midland and Eagle Ford basins to such fractional complexes and to Phillips 66 Soweeny Hub. Epic NGL is in the process of increasing its pipeline capacity to 225,000 BPD and has sanctioned another expansion to increase capacity to 350,000 BPD.

Phillips 66 does not expect to increase the newly announced capital program in 2025 in connection with this extension. EPIC NGL has also identified a third fractional facility that can bring its fractional capacity up to 280,000 BPD. The facilities connect the permian production to the Gulf Coast Refineries, Petrochemical Companies and Export Markets and will be very integrated with the Phillips 66 active base.

The transaction is subject to usual closure conditions, including required regulatory approval.

“Epic has transformed its NGL business over the past few years, and this transaction confirms our team, our strategy and our execution,” says Brian Freed, CEO of Epic. “We have developed assets for natural gas fluids in Corpus Christi and Soweny with Downstream Coupling. We believe that Phillips 66 will be a great owner to manage these assets in their next phase. “

Epic Consolidated Operations was formed in 2017 to build, own and operate midfield infrastructure in Delaware, Midland and the Eagle Ford basins.