Houston-based energy company Phillips 66 will sell its interest in a trio of assets to its master limited partnership, Phillips 66 Partners (PSXP).
The deal entails that Phillips 66 Partners will acquire its 25 percent interest in each of Dakota Access and Energy Transfer Crude Oil Company (collectively the Bakken Pipeline) and 100 percent interest in Merey Sweeny (MSLP), the owner of fuel-grade coke processing units at the Phillips 66 Sweeny Refinery. The acquisition is expected to be immediately accretive to the MLP and its unit holders and is anticipated to close in early October 2017.
The total transaction value of $2.4 billion includes $625 million in proportional non-consolidated, nonrecourse Bakken Pipeline debt and $100 million of MSLP debt. In connection with the MSLP acquisition, Phillips 66 Partners will enter into a new 15-year tolling agreement that includes a base throughput fee and minimum volume commitment from Phillips 66.
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