US energy company Phillips 66 has entered into a definitive agreement to acquire EPIC Y-Grade GP and EPIC Y-Grade for a total cash consideration of US$2.2 billion.

The two companies have subsidiaries, pipelines, fractionation facilities and distribution systems, collectively known as EPIC NGL.

This move, upon completion, is expected to immediately increase the company’s earnings per share.

EPIC’s NGL assets include two fractionators with a total capacity of 170,000 bpd near Corpus Christi, Texas, approximately 350 miles of purity distribution pipelines, and an 885 mile NGL pipeline with a current capacity of 175,000 bpd.

This pipeline network connects production from the Delaware, Midland and Eagle Ford basins to Phillips 66’s fractionation sites and Sweeny Hub.

EPIC NGL is increasing its pipeline capacity to 225,000 bpd and plans to further expand to 350,000 bpd.

Mark Lashier, Chairman and CEO of Phillips 66, said: “This transaction strengthens Phillips 66’s position as a leading integrated downstream energy provider.

“This transaction optimizes our NGL value chain in the Permian, allows Phillips 66 to provide producers with comprehensive flow security and fractionation facilities near Corpus Christi, Sweeny and Mont Belvieu, Texas, and is expected to deliver attractive returns in excess of our minimum return rates.”

Phillips 66 has confirmed that it does not plan to increase its 2025 capital program as a result of this expansion.

In addition, EPIC NGL is exploring the addition of a third fractionation facility, potentially increasing total capacity to 280,000 bpd.

These facilities are critical to connecting Permian Basin production with Gulf Coast refineries, petrochemical companies and export markets and will be seamlessly integrated into Phillips 66’s existing facilities.

The acquisition is subject to customary closing conditions, including required regulatory approvals.

In a separate case, a California state court jury ordered Phillips 66 to pay Propel Fuels $604.9 million in damages in October 2024.

“Phillips 66 Acquires EPIC NGL Assets for $2.2 Billion” was originally created and published by Offshore Technology, a brand owned by GlobalData.

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