Phillips 66 (PSX), a prominent player in petroleum refining, announced on Friday its agreement to divest a 25% non-operated equity interest in Rockies Express Pipeline LLC (REX) to a subsidiary of Tallgrass Energy, LP, for approximately $1.275 billion.
Mark Lashier, CEO of Phillips 66, stated, "This sale is a crucial step towards our goal of divesting over $3 billion in assets. We remain dedicated to managing our portfolio and monetizing assets that no longer align with our long-term strategy."
The proceeds from this sale will be directed towards supporting Phillips 66's strategic priorities, which include enhancing returns to shareholders.
The transaction is anticipated to close on June 14.
Upon completion of the transaction, Tallgrass Energy (TGE), the existing operator of REX, will hold 100% ownership of the pipeline.
The Rockies Express Pipeline, spanning 1,714 miles, is a key natural gas pipeline system in the U.S., offering bi-directional transportation services for over 5 billion cubic feet of natural gas per day.
