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Phillips 66 to buy EPIC NGL for $2.2 bln in bid to improve Permian existence

U.S. oil refiner Phillips 66 stated on Monday it would get numerous pipelines and circulation systems from Aresbacked impressive NGL in an allcash offer for $2.2 billion, as it seeks to expand its Permian existence.

The U.S. shale industry has actually experienced a record-breaking wave of dealmaking in the recent past, as energy business have rushed to broaden oil and gas drilling stocks, particularly in the Permian Basin oil field.

Phillips 66 would obtain impressive Y-Grade GP and Legendary Y-Grade, and its different subsidiaries under the deal, which is expected to be right away accretive to revenues per share, it said in its statement.

This deal optimizes our Permian NGL worth chain, enables Phillips 66 to offer producers with thorough circulation guarantee and is anticipated to deliver attractive returns in excess of our hurdle rates, said Phillips 66 CEO Mark Lashier.

While impressive remains in the procedure of increasing its pipeline capacity to 225 million barrels per day (mbd) and has actually sanctioned a second expansion to increase capacity to 350 mbd, Phillips 66 stated it does not expect to increase its 2025 capital program in connection with the growth.

The offer marks a shift far from Phillips 66's efforts of cutting expenses and pursuing divestitures through non-core property sales. In December 2024, Phillips 66 offered its 25% stake in the Gulf Coast Express pipeline in Texas to an affiliate of ArcLight Capital Partners for $865 million.

(source: Reuters)