Phillips 66 Eyes Bigger Midstream Role with DCP Acquisition

August 19, 2022–Researched by Industrial Info Resources (Sugar Land, Texas)–Phillips 66 (NYSE:PSX) (Houston, Texas) may be looking at an even bigger role in the U.S. oil and gas midstream markets, after it submitted a non-binding proposal to acquire all publicly held common units of DCP Midstream Partners LP (NYSE:DPM) (Denver, Colorado) for cash. Phillips 66’s proposal to pay $34.75 for each outstanding DCP common unit likely is just an opening bid, but could end with a significant expansion of its pipeline business.

Industrial Info is tracking more than $1 billion worth of active pipeline projects from Phillips 66, and is tracking progress at more than 480 facilities across the U.S. that are owned or co-owned by DCP. DCP’s holdings include natural gas-fired plants and gas pipelines across Texas, Louisiana, Colorado and New Mexico. As part of a strategic overhaul, Phillips 66 also agreed to transfer its operatorship of the Gray Oak Pipeline in Texas, which connects the Permian Basin to Corpus Christi and the Houston area, to Enbridge Incorporated (NYSE:ENB).

Other companies featured: Williams Companies Incorporated (NYSE:WMB)
Source: industrialinfo.com
Phillips 66 Eyes Bigger Midstream Role with DCP Acquisition