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Phillips 66, Houston, has agreed to acquire Pinnacle Midland Parent LLC (Pinnacle) from private equity firm Energy Spectrum Capital for cash consideration of $550 million in a move to expand its natural gas gathering and processing footprint in the Midland basin.
“Pinnacle is a bolt-on asset that advances our wellhead-to-market strategy and complements our diversified and integrated asset portfolio,” said Mark Lashier, chairman and chief executive officer of Phillips 66, in a press release May 20.
Pinnacle’s assets include the recently built Dos Picos natural gas gathering and processing system: a 220 MMcfd gas processing plant, 80 miles of gathering pipeline, and 50,000 dedicated acres through high-quality producers in one of Phillips 66’s focus basins, the company said (OGJ Online, July 11, 2023).
The Dos Picos processing complex and related infrastructure is scalable toward a second 220 MMcfd gas plant and integrates well into Phillip 66’s existing downstream infrastructure, the company continued.
The deal is expected to close mid-year 2024 following satisfaction of customary closing conditions.
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