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Phillips 66 sells equity interest in Rockies Express Pipeline

Phillips 66, a leading diversified and integrated downstream energy provider that manufactures, transports, and markets products, announced the sale of its 25% non-operated common equity interest in Rockies Express Pipeline LLC to a subsidiary of Tallgrass Energy LP for an enterprise value of approximately USD1.275 billion. This transaction will result in pre-tax cash proceeds of USD685 million for Phillips 66, after adjustments for the company’s allocation of Rockies Express’ debt and preferred equity balances.

Headquartered in Houston, Texas, U.S.A., Phillips 66’’s portfolio includes Midstream, Chemicals, Refining, and Marketing and Specialties businesses.

Tallgrass Energy, which operates the pipeline, will now hold 100% of the common equity interest in the pipeline following the transaction. This sale marks a significant step in Phillips 66’s commitment to delivering more than USD3 billion in asset divestitures.

“This sale is an important step in our commitment to deliver over USD3 billion in asset divestitures,” said Mark Lashier, chairman and CEO of Phillips 66. “We are committed to managing our portfolio and monetising assets that no longer fit our long-term strategy.”

The funds from this sale will support Phillips 66’s strategic priorities, including returns to shareholders. Rockies Express, a 1,714-mile pipeline system, is one of the largest natural gas pipelines in the United States, providing more than 5 billion cubic feet per day of bi-directional natural gas transportation service between the Rockies, Appalachia, and the northeastern United States.

This strategic move underscores Phillips 66’s dedication to optimizing its asset portfolio and enhancing shareholder value while maintaining a focus on sustainable growth and a lower-carbon future.