Phillips 66 (PSX) disclosed on Monday the signing of a definitive agreement to divest its stake in DCP GCX Pipeline LLC. This entity holds a 25% non-operated equity interest in Gulf Coast Express Pipeline LLC, and it will be sold to an affiliate of ArcLight Capital Partners, LLC for a pre-tax cash amount totaling $865 million, subject to adjustments in the purchase price.
The Gulf Coast Express Pipeline, which spans approximately 500 miles, facilitates the transportation of around 2 billion cubic feet of natural gas daily from the Permian Basin to the Agua Dulce region in Texas.
Post-transaction, ownership of Gulf Coast Express Pipeline LLC will be shared between subsidiaries of Kinder Morgan, Inc. (KMI) and affiliates of ArcLight Capital Partners, LLC.
The revenue generated from this sale will bolster Phillips 66's strategic objectives, including enhancing shareholder returns and reducing debt. The transaction is anticipated to be finalized by January 2025.
