Phillips 66 Partners To Acquire Interests In Bakken Pipeline & Merey Sweeny

(RTTNews) - Phillips 66 Partners LP (PSXP) announced it has reached agreement with Phillips 66 (PSX) to acquire its 25 percent interest in each of Dakota Access, LLC and Energy Transfer Crude Oil Company, LLC (collectively, the Bakken Pipeline) and 100 percent interest in Merey Sweeny, L.P. (MSLP), the owner of fuel-grade coke processing units at the Phillips 66 Sweeny Refinery. The Bakken Pipeline consists of 520,000 barrels per day crude oil capacity expandable to 570,000 BPD. MSLP is owner of facilities that process residue from heavy sour crude oil into liquid products and fuel-grade petroleum coke at the Phillips 66 Sweeny Refinery in Old Ocean, Texas. Consideration for the acquisition is $1.7 billion.

The total transaction value of $2.4 billion includes $625 million in proportional non-consolidated, non-recourse Bakken Pipeline debt and $100 million of MSLP debt.

Phillips 66 Partners expects the acquisition to be immediately accretive to the Partnership and its unitholders.