Phillips 66 To Sell 25% Stake In Rockies Express Pipeline For Around $1.275 Bln

(RTTNews) - Phillips 66 (PSX), a petroleum refineries company, announced on Friday that it has agreed to sell 25 percent of the non-operated equity interest in Rockies Express Pipeline LLC, to a subsidiary of Tallgrass Energy, LP, for around $1.275 billion.

Mark Lashier, CEO of Phillips 66, said: "This sale is an important step in our commitment to deliver over $3 billion in asset divestitures. We are committed to managing our portfolio and monetizing assets that no longer fit our long-term strategy."

The expected proceeds will support Phillips 66's strategic priorities, including returns to shareholders.

The transaction is expected to be closed on June 14.

Post transaction, TGE, the operator of REX, will own 100 percent of REX.

REX, a 1,714-mile natural gas pipeline system in the U.S., and provides over 5 billion cubic feet per day of bi-directional natural gas transportation service.