Phillips 66 announced today that it has agreed to sell its 25 percent non-operated common equity interest in Rockies Express Pipeline LLC to a subsidiary of Tallgrass Energy, LP for an enterprise value of approximately $1.275 billion. TGE, the operator of REX, will own 100 percent of the common equity interest in REX following the transaction. This sale will generate pre-tax cash proceeds of $685 million for Phillips 66 after adjustments for its share of REX’s debt and preferred equity balances.
“This sale is an important step in our commitment to deliver over $3 billion in asset divestitures,” said Mark Lashier, chairman and CEO of Phillips 66. “We are committed to managing our portfolio and monetizing assets that no longer fit our long-term strategy.”
The expected proceeds will support Phillips 66’s strategic priorities, including returns to shareholders.
REX, a 1,714-mile pipeline system, is one of the largest natural gas pipelines in the United States, providing over 5 billion cubic feet per day of bi-directional natural gas transportation service between the Rockies, Appalachia, and the northeastern United States.
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