Phillips 66 Partners to Acquire Interest in Liberty Pipeline

By Michael Dabaie

Phillips 66 Partners LP said it reached agreement with Phillips 66 to acquire its 50% interest in the Liberty Pipeline project for about $75 million.

Phillips 66 Partners said it plans to fund the transaction through a combination of cash on hand and a revolving credit facility. The deal is expected to close on March 2, with an effective date of March 1.

The 24-inch Liberty Pipeline will provide crude oil transportation service to Cushing, Okla., from the Rockies and Bakken production areas. The pipeline is underpinned with long-term volume commitments. Service on the pipeline is targeted to commence in the first half of 2021. The cost of the pipeline is expected to be approximately $1.6 billion, on a gross basis, or $800 million net to the Partnership.

The purchase price to be paid by the partnership reflects the reimbursement of project costs incurred by Phillips 66 prior to the effective date of the transaction.

The terms of the transaction were approved by the board of directors of the general partner of Phillips 66 Partners, based on the approval and recommendation of its conflicts committee comprised of independent directors.

Phillips 66 Partners is a master limited partnership formed by Phillips 66 to own, operate, develop and acquire crude oil, refined petroleum products and natural gas liquids pipelines, terminals and other midstream assets.

Write to Michael Dabaie at michael.dabaie@wsj.com

(END) Dow Jones Newswires

February 21, 2020 09:29 ET (14:29 GMT)

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