Phillips 66 announced it has agreed to sell its 25% non-operated common equity interest in Rockies Express Pipeline LLC to a subsidiary of Tallgrass Energy, LP for an enterprise value of approximately $1.275 billion.
TGE is the operator of REX and will own 100% of the common equity interest in REX following the transaction. This transaction generates pre-tax cash proceeds of $685 million to Phillips 66 after adjustments for Phillips 66’s allocation of REX’s debt and preferred equity balances.
“This sale is an important step in our commitment to deliver over $3 billion in asset divestitures,” said Mark Lashier, Chairman and CEO of Phillips 66. “We are committed to managing our portfolio and monetizing assets that no longer fit our long-term strategy.”
The expected proceeds will support Phillips 66’s strategic priorities, including returns to shareholders.
REX, a 1,714-mile pipeline system, is one of the largest natural gas pipelines in the United States 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.
