Economic news

Phillips 66 to Sell 25% Stake in Rockies Pipeline for $1.28B

June 14 (Reuters) - U.S. oil refiner Phillips 66 said on Friday it would sell its 25% stake in the Rockies Express Pipeline (REX) for about $1.28 billion, including debt, to a subsidiary of Tallgrass Energy.

"This sale is an important step in our commitment to deliver over $3 billion in asset divestitures," Phillips 66 CEO Mark Lashier said in a statement.

REX, a 1,714-mile (2758.42 km) pipeline system, is one of the largest natural gas pipelines in the U.S. and provides over 5 billion cubic feet per day of bi-directional natural gas transportation service between the Rockies, Appalachia and the northeastern United States.

The sale, previously flagged by Reuters, will provide about $685 million in after-tax proceeds, the company said. Phillips 66 shares were off less than 1% at $136.82 in morning trading.

Privately owned Tallgrass Energy operates the pipeline and owns the remaining 75% stake.

The transaction is expected to close on Friday.

Reporting by Seher Dareen and Vallari Srivastava in Bengaluru; Editing by Sriraj Kalluvila

Source: Reuters


To leave a comment you must or Join us


More news


Back to economic news list

By visiting our website and services, you agree to the conditions of use of cookies. Learn more
I agree