Phillips 66 announces agreement to sell interest in Gulf Coast Express
Published by Alfred Hamer,
Editorial Assistant
World Pipelines,
Phillips 66 has announced that it has entered into a definitive agreement to sell DCP GCX Pipeline LLC, which owns a 25% non-operated equity interest in Gulf Coast Express Pipeline LLC, to an affiliate of ArcLight Capital Partners, LLC for pre-tax total cash proceeds of US$865 million, subject to purchase price adjustments.
“With this transaction, we have exceeded our US$3 billion asset divestiture target established in our strategic priorities. We intend to continue to optimise the portfolio and rationalise non-core assets going forward,” said Mark Lashier, chairman and CEO of Phillips 66. “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.”
Gulf Coast Express Pipeline is an approximately 500 mile pipeline system that transports about 2 billion f3/d of natural gas from the Permian Basin to the Agua Dulce, Texas area. Following the transaction, Gulf Coast Express Pipeline LLC will be jointly owned by subsidiaries of Kinder Morgan, Inc. and affiliates of ArcLight Capital Partners, LLC.
The sales price represents an implied Enterprise Value/EBITDA multiple of 10.6x based on expected 2025 EBITDA. Proceeds from the sale will support the strategic priorities of Phillips 66, including returns to shareholders and debt reduction. The sale is expected to close in January 2025.
Read the article online at: https://www.worldpipelines.com/business-news/17122024/phillips-66-announces-agreement-to-sell-interest-in-gulf-coast-express/
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