Phillips 66’s sale to Tallgrass will generate $685 million in proceeds following debt and equity adjustments.
Phillips 66 has agreed to sell its 25% non-operated common equity interest in Rockies Express Pipeline LLC (REX) to a subsidiary of Tallgrass Energy for an enterprise value of approximately $1.275 billion, according to a June 14 press release.
Tallgrass, the operator of REX, will own 100% of the common equity interest in REX following the transaction. The transaction will generate pre-tax cash proceeds of $685 million to Phillips 66 after adjustments for Phillips 66’s allocation of REX’s debt and preferred equity balances.
The transaction is expected to close June 14.
REX, a 1,714-mile pipeline system, is one of the largest natural gas pipelines in the U.S. and provides more than 5 Bcf/d of bi-directional natural gas transportation service between the Rockies, Appalachia and the Northeastern U.S.
“This sale is an important step in our commitment to deliver over $3 billion in asset divestitures,” said Mark Lashier, Chairman and CEO of Phillips 66. “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 shareholder returns.
Recommended Reading
PE Firm Andros Capital Partners Closes $1 Billion Energy Fund
2025-04-07 - Andros Capital Partners maintains a flexible investment mandate, allowing the firm to invest opportunistically across the capital structure in both public and private equity or debt securities.
Waterous Raises $1B PE Fund for Canadian Oil, Gas Investments
2025-04-01 - Waterous Energy Fund (WEF) raised US$1 billion for its third fund and backed oil sands producer Greenfire Resources.
BP Cuts Renewable Investment, Boosts Oil and Gas in Strategy Shift
2025-02-26 - BP aims to grow oil and gas production to between 2.3 MMboe/d and 2.5 MMboe/d in 2030.
Opportune Adds Jade Wang as Principal in Oil, Gas Practice
2025-01-21 - Jade Wang will focus on growing advisory firm Opportune’s service lines in upstream, midstream and energy components.
Pearl Energy Investments Closes Fund IV with $999.9MM
2025-02-04 - Pearl Energy Investments’ Fund IV met its hard cap within four months of launching and closed on Jan. 31.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.