Phillips 66 Partners To Buy Equity Interests In 3 Pipeline Systems For $1.01 Bln

(RTTNews) - Phillips 66 Partners LP (PSXP) said Monday that it has reached agreement to buy Phillips 66's (PSX) interests in three pipeline systems for a total consideration of $1.01 billion

The acquisition includes one-third equity interests in the limited liability companies that respectively own the Sand Hills and Southern Hills natural gas liquids pipeline systems, and a 19.46% equity interest in Explorer Pipeline Co., the owner of the Explorer refined products pipeline system.

Under the deal, Phillips 66 will receive total consideration of $1.01 billion consisting of $880 million in cash and 1,726,914 newly issued Phillips 66 Partners units, to be allocated between common units and general partner units in a proportion allowing the general partner to maintain its 2% general partner interest.

The deal is expected to be immediately accretive to the Partnership and its unitholders and is anticipated to close in early March 2015.

"This acquisition will expand our fee-based portfolio into NGL transportation and provide us with an interest in one of the largest refined products pipeline systems in the U.S.," said Greg Garland, Phillips 66 Partners chairman and CEO. "Our addition of these diversified assets demonstrates our commitment to providing strong growth for our unitholders."