On January 6, 2025, Phillips 66 (PSX, Financial) announced a significant strategic move by entering into an Equity Purchase Agreement to acquire EPIC Y-Grade Holdings. This acquisition involves purchasing all issued and outstanding equity interests in EPIC Y-Grade GP, LLC and EPIC Y-Grade, LP, which collectively own extensive natural gas liquids pipelines, fractionation facilities, and distribution systems. The transaction is valued at a base purchase price of $2.2 billion in cash, subject to customary adjustments.
The acquisition is set to be funded through Phillips 66's cash reserves, bolstered by proceeds from recent asset dispositions, and potentially short-term debt if necessary. This move aligns with Phillips 66's strategy to enhance its infrastructure capabilities in the natural gas liquids sector, a critical component of the energy supply chain.
Completion of the transaction is contingent upon customary closing conditions, including the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. The agreement includes standard representations, warranties, and termination rights for both parties, ensuring a structured and secure transaction process.
This acquisition underscores Phillips 66's commitment to expanding its footprint in the energy infrastructure sector, positioning the company for future growth and increased operational efficiency. Investors and stakeholders will be keenly observing the progress of this transaction, which is expected to close by April 6, 2026, with a possible extension to July 6, 2026, under certain regulatory conditions.
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