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Sept. 22, 2017, 7:58 a.m. EDT

Phillips 66 Partners to buy assets from Phillips 66 in deal valued at $2.4 billion, including debt

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By Ciara Linnane

Phillips 66 Partners LP /zigman2/quotes/201214359/composite PSXP +1.98% said Friday it has reached an agreement to acquire assets from Phillips 66 /zigman2/quotes/207448059/composite PSX +2.07% in a deal worth $2.4 billion including debt. Phillips 66 Partners is a master limited partnership that was set up by Phillips 66 to own, operate and acquire crude oil and other energy assets. The MLP is acquiring a 25% interest in two joint ventures, Dakota Access LLC and Energy Transfer Crude Oil Co. LLC, as well as a 100% interest in Merey Sweeny L.P. The deal is expected to be immediately accretive to unitholders in the MLP and to close in early October. The $2.4 billion value includes $625 million of pipeline debt and another $100 million of Merey Sweeny LP debt. The deal will be financed with a mixture of debt, proceeds from a private placement of equity units, and PSXP units issued to Phillips 66, said the companies. "The Bakken Pipeline complements our strategy to expand current systems that are integrated with Phillips 66 refineries and terminals, while MSLP provides another reliable source of cash flow generation to the portfolio," Phillips 66 Chief Executive Greg Garland said in a statement. Shares were not active premarket. The MLP units have lost 0.3% of their value in 2017, while the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.08% has gained 12%.

/zigman2/quotes/201214359/composite
US : U.S.: NYSE
$ 44.38
+0.86 +1.98%
Volume: 505,377
Jan. 14, 2022 4:00p
P/E Ratio
20.31
Dividend Yield
7.89%
Market Cap
$10.13 billion
Rev. per Employee
N/A
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/zigman2/quotes/207448059/composite
US : U.S.: NYSE
$ 88.58
+1.80 +2.07%
Volume: 3.39M
Jan. 14, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
4.15%
Market Cap
$38.81 billion
Rev. per Employee
$6.69M
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/zigman2/quotes/210599714/realtime
US : S&P US
4,662.85
+3.82 +0.08%
Volume: 2.52B
Jan. 14, 2022 5:16p
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