Deal will help boost U.S. refinery’s liquefied natural gas business
The deal, the first major move by Mark Lashire, who took over as chief executive of Phillips 66 last July, will double the Houston-based U.S. company’s stake in U.S. pipeline operator DCP Midstream to 86.8%.
Last month, Phillips pledged to increase spending on new projects by about 6% in 2023, focusing on supporting its pipeline business.
The deal with DCP is expected to boost Phillips 66’s adjusted EBITDA by $1 billion, the refiner said in a statement.
Phillips said it expects to save at least $300 million by integrating DCP into its existing petroleum products transportation business.
Phillips plans to finance the deal with cash and debt.
Canadian pipeline operator Enbridge owns the remaining 13.2% of DCP.