Phillips 66 (PSX) finalized the $2.2 billion acquisition of EPIC, a move that strengthened the company’s NGL network and angered an activist investor. (Source: Shutterstock)
Phillips 66 (PSX) finalized the $2.2 billion acquisition of EPIC, a move that strengthened the company’s NGL network and angered an activist investor.
On April 2, PSX announced the completed acquisition of EPIC NGL, a system of NGL pipelines, distribution systems and fractionators connecting the Permian Basin to Phillips facilities in Corpus Christi, Texas, and the company’s Sweeny Hub near Houston.
The companies announced the pending deal on Jan. 6.
“This transaction strengthens our position as a leading integrated downstream energy provider,” Don Baldridge, PSX executive vice president of midstream and chemicals, said in a press release.
EPIC NGL business consists of two 170,000 bbl/d fractionators near Corpus Christi, 350 miles of purity distribution pipelines and an 885-mile, 175,000-bbl/d NGL pipeline linking production in the Delaware, Midland and Eagle Ford basins to the Phillips 66 Sweeny Hub.
With the purchase, Phillips 66 provides “wellhead to water” services for its NGL product, where the company owns all the steps of the NGL manufacturing and marketing process out of the Permian Basin.
In February, activist group Elliott Investment Management attacked the move, along with several other acquisitions. The investor is pushing the company to sell off its midstream assets to “simplify” its portfolio.
Last week, Elliott sued Phillips 66 to force a vote on four board nominees.
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