Phillips 66 Partners LP said Friday it has reached an agreement to acquire assets from Phillips 66 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 has gained 12%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
From:: Stock Market News