January 7, 2025
Epic NGL deal: Phillips 66 strikes $2.2 billion all-cash acquisition to boost natural gas liquids bet
By: Reuters
Phillips 66 announced plans to acquire pipelines and distribution systems from Epic NGL, a pipeline operator backed by Ares, in a $2.2 billion all-cash deal to strengthen its investment in natural gas liquids (NGLs). NGLs, used in petrochemical production and heating, are expected to see faster growth than crude oil by the decade's end.
The acquisition includes Epic Y-Grade GP, Epic Y-Grade, and subsidiaries, and is expected to immediately boost Phillips 66's earnings per share. CEO Mark Lashier highlighted the deal's alignment with the company's strategy to optimize its Permian Basin operations and deliver strong returns without altering its 2025 capital program.
“Around 85% of US NGL production is centered in the Permian Basin oil field and a majority of them are exported, according to RBN Energy analysts”
Read the full article here Epic NGL deal: Phillips 66 strikes $2.2 billion all-cash acquisition to boost natural gas liquids bet - News | Khaleej Times
The deal builds on Phillips 66's previous acquisition of Pinnacle Midland for $550 million, as part of broader industry trends marked by aggressive dealmaking to expand oil and gas assets, especially in the Permian Basin, which accounts for 85% of U.S. NGL production.