Phillips 66 Partners LP Agrees With Phillips 66 To Buy Assets Worth $1.3 Bln

(RTTNews) - Phillips 66 Partners LP (PSXP) Tuesday said it has reached an agreement with Phillips 66 (PSX) to acquire 30 crude, refined products and natural gas liquids, logistics assets for total consideration of $1.3 billion. The transaction is expected to be immediately accretive to unitholders.

The acquisition will be funded through a combination of debt and $196 million in new PSXP units issued to Phillips 66.

The transaction is anticipated to close this month. The acquisition consideration reflects an approximate 8.7 times multiple based on the forecasted full year 2017 earnings before interest, taxes, depreciation and amortization or EBITDA.

In connection with the acquisition, Phillips 66 will enter into 10-year terminaling and throughput agreements.