Built-in downstream firm Phillips 66 is promoting its 25 % non-operated frequent fairness curiosity in Rockies Categorical Pipeline LLC (REX) to a subsidiary of Tallgrass Vitality LP (TGE) for an enterprise worth of roughly $1.275 billion.
TGE is the operator of REX and can personal 100% of the frequent fairness curiosity in REX following the transaction, Phillips 66 mentioned in a information launch.
This transaction generates pre-tax money proceeds of $685 million for Phillips 66 after changes for Phillips 66’s allocation of REX’s debt and most well-liked fairness balances, based on the discharge. The anticipated proceeds will assist Phillips 66’s strategic priorities, together with returns to shareholders.
“This sale is a crucial step in our dedication to ship over $3 billion in asset divestitures,” Phillips 66 Chairman and CEO Mark Lashier mentioned. “We’re dedicated to managing our portfolio and monetizing property that not match our long-term technique”.
REX, a 1,714-mile pipeline system, is likely one of the largest pure fuel pipelines within the USA and offers over 5 billion cubic toes per day of bi-directional pure fuel transportation service between the Rockies, Appalachia and the northeastern United States, based on the discharge.
The pure fuel pipeline system spans from Rio Blanco County, Colorado, to Monroe County, Ohio. REX turned totally operational in November 2009 with a capability of 1.8 billion cubic toes per day. REX affords agency and interruptible transportation companies in addition to pooling, wheeling and a park and mortgage service, based on the TGE web site. Tallgrass NatGas Operator, LLC operates Rockies Categorical.
Earlier within the month, Phillips 66 subsidiary Phillips 66 Pipeline, LLC launched a binding open season to solicit shipper commitments for companies from Wichita, Kansas, to Jefferson Metropolis, Missouri, and East St. Louis, Illinois, on its Blue Line System.
The Blue Line System is a standard service liquids product pipeline transporting propane and butane between the origin and vacation spot factors set forth in its tariff on file at FERC and accessible on the Phillips 66 web site, based on an earlier assertion.
The open season will present a possibility for shippers to safe long-term liquefied petroleum fuel (LPG) product transportation on the Blue Line System beneath binding transportation service agreements. The transportation companies are anticipated to be accessible throughout winter seasons (October by means of March) beginning within the fourth quarter, topic to FERC approval of a associated settlement to be filed. The open season began June 7 and can stay open till 5:00 pm CDT on July 6.
Phillips 66 in Might introduced an settlement to accumulate Pinnacle Midland Guardian LLC from Vitality Spectrum Capital for $550 million in money, seeking to broaden its midstream operations within the Permian Basin. Anticipated to be accomplished by mid-2024, the transaction would give it the just lately constructed Dos Picos pure fuel gathering and processing system. The plant has a processing capability of 220 million cubic toes per day, whereas the gathering pipeline stretches 80 miles.
Houston-based Phillips 66 describes itself as a number one diversified and built-in downstream vitality supplier that manufactures, transports and markets merchandise that drive the worldwide economic system. The corporate’s portfolio consists of Midstream, Chemical compounds, Refining, and Advertising and marketing and Specialties companies.
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