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Phillips 66 to acquire pinnacle midland parent LLC for $550 Million

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Phillips 66 announced its agreement to acquire Pinnacle Midland Parent LLC from private equity firm Energy Spectrum Capital for a cash consideration of $550 million. This strategic move aims to expand Phillips 66’s natural gas gathering and processing footprint in the Midland Basin.

Mark Lashier, chairman and CEO of Phillips 66, stated, “We are growing our Midstream business in the Permian to further strengthen and expand our service offerings to customers while driving operational and commercial synergies. Pinnacle is a bolt-on asset that advances our wellhead-to-market strategy and complements our diversified and integrated asset portfolio. Further, this transaction aligns with our long-term objectives to build out our natural gas liquids value chain, be disciplined with our capital allocation, and create sustainable value for our shareholders.”


Pinnacle’s assets include the recently constructed Dos Picos natural gas gathering and processing system, featuring a 220 MMcf/d gas processing plant, 80 miles of gathering pipeline, and 50,000 dedicated acres from high-quality producers in one of Phillips 66’s focus basins. The Dos Picos processing complex and related infrastructure is easily scalable, with plans for a second 220 MMcf/d gas plant, and integrates well into Phillips 66’s existing downstream infrastructure.

J. Greg Sargent, CEO of Pinnacle, commented, “Pinnacle has established itself as one of the premier midstream providers in the Midland Basin, with a top-notch talented team, first-class operations and infrastructure, and world-class customers. I am incredibly proud of what we have achieved as a team in the basin and in the community.”

The transaction is expected to close around mid-year 2024, following the satisfaction of customary closing conditions, including approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

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