Phillips 66 to grow Permian midstream business with EPIC NGL acquisition
Published by Alfred Hamer,
Editorial Assistant
World Pipelines,
Phillips 66 has announced that it has entered into a definitive agreement to buy EPIC Y-Grade GP, LLC and EPIC Y-Grade, LP, which own various subsidiaries and long haul natural gas liquids pipelines, fractionation facilities and distribution systems for total cash consideration of US$2.2 billion, subject to customary purchase price adjustments. Upon closing, this transaction is expected to be immediately accretive to earnings per share.
“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 optimises 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 consists of two fractionators (170 thousand bpd) near Corpus Christi, Texas, approximately 350 miles of purity distribution pipelines and an approximately 885 mile NGL pipeline (175 thousand bpd) linking production supplies in the Delaware, Midland and Eagle Ford basins to such fractionation complexes and to the Phillips 66 Sweeny Hub. EPIC NGL is in the process of increasing its pipeline capacity to 225 thousand bpd and has sanctioned a second expansion to increase capacity to 350 thousand bpd. Phillips 66 does not expect to increase its recently announced 2025 capital program in connection with that expansion. EPIC NGL has also identified a third fractionation facility that could bring its fractionation capacity up to 280 thousand bpd. 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.
Read the article online at: https://www.worldpipelines.com/business-news/09012025/phillips-66-to-grow-permian-midstream-business-with-epic-ngl-acquisition/
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