Pipeline Power Play: Phillips 66 Makes $550M Gas Grab In The Permian Basin

Pipeline Power Play: Phillips 66 Makes $550M Gas Grab In The Permian Basin

Pipeline Power Play:Phillips 66 在二疊紀盆地搶購了 5.5 億美元的天然氣
Benzinga ·  05/21 18:49

Phillips 66 (NYSE:PSX) inked a deal to acquire Pinnacle Midland Parent LLC from Energy Spectrum Capital for a cash consideration of $550 million.

菲利普斯66(紐約證券交易所代碼:PSX)簽署了一項協議,以5.5億美元的現金對價從能源光譜資本收購Pinnacle Midland Parent LLC。

The strategic move reflects the expansion of its natural gas gathering and processing footprint in the Midland Basin.


Pinnacle's assets include the recently built Dos Picos natural gas gathering and processing system. It is a 220 MMcf/d gas processing plant, 80 miles of gathering pipeline, and 50,000 dedicated acres through high-quality producers in one of Phillips 66's core basins.

Pinnacle 的資產包括最近建造的 Dos Picos 天然氣收集和處理系統。它是一座220 mmcf/d的天然氣處理廠,80英里的採集管道,通過菲利普斯66的一個核心盆地的高質量生產商佔地50,000英畝的專用土地。

The Dos Picos processing complex and related infrastructure is easily scalable toward a second 220 MMcf/d gas plant and integrates well into the company's existing downstream infrastructure.

Dos Picos 處理綜合體和相關基礎設施可輕鬆擴展到第二座 220 mmcf/d 天然氣廠,並且可以很好地集成到公司現有的下游基礎設施中。

The transaction is expected to close around mid-year of 2024, following satisfaction of customary closing conditions.


Mark Lashier, Chairman and CEO said, "We are growing our Midstream business in the Permian to further strengthen and expand our service offerings to customers while driving operational and commercial synergies."


"Pinnacle is a bolt-on asset that advances our wellhead-to-market strategy and complements our diversified and integrated asset portfolio. Further, this transaction aligns with our long-term objectives to build out our natural gas liquids value chain, be disciplined with our capital allocation and create sustainable value for our shareholders."


Last month, Phillips 66 reported first-quarter FY24 revenue of $36.436 billion, exceeding the consensus of $33.075 billion, and adjusted EPS of $1.90, missing the consensus of $2.17.


As of March-end, the company had cash and cash equivalents of $1.6 billion and committed capacity available under its credit facility worth $3.5 billion.


Investors can gain exposure to the stock via IShares U.S. Oil & Gas Exploration & Production ETF (BATS:IEO) and VanEck Oil Refiners ETF (NYSE:CRAK).

投資者可以通過iShares美國石油與天然氣勘探與生產ETF(BATS: IEO)和VanEck Oil Refiners ETF(紐約證券交易所代碼:CRAK)獲得股票敞口。

Price Action: PSX shares are down 0.15% at $144.20 premarket at the last check Tuesday.