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UPDATE 1-Phillips 66 sweetens bid to buy units of pipeline operator DCP Midstream

Reuters · 01/06/2023 07:59
UPDATE 1-Phillips 66 sweetens bid to buy units of pipeline operator DCP Midstream

Updates with details on the deal, background

- U.S. refiner Phillips 66 PSX.N said on Friday it will acquire all the public units of DCP Midstream DCP.N in a deal that will value the pipeline operator at about $8.7 billion and bulk up Phillips' gas liquids business.

The deal would mark the first major move by Mark Lashier, who took over as chief executive officer of Phillips 66 in July last year. Earlier last year, the company acquired the public units in transportation and storage business Phillips 66 Partners.

The DCP deal is expected to generate an incremental $1 billion of adjusted EBITDA for Phillips 66, the company said in a statement.

Phillips is offering $41.75 per common share, up from $34.75 per common share previously, increasing its interest in DCP Midstream to 86.8%.

Canadian pipeline operator Enbridge ENB.TO owns the rest 13.2% of DCP's general partner.

The all-cash transaction is expected to close in the second quarter of 2023.



(Reporting by Arshreet Singh; Editing by Shinjini Ganguli)

((Arshreet.Singh@thomsonreuters.com; Twitter: https://twitter.com/Arshreets;))