Phillips 66 to Buy PE-Owned Pinnacle Midland for $550 mln
05.21.2024 By Tank Terminals - NEWS

May 21, 2024 [Reuters]- Phillips 66 on Monday agreed to acquire Pinnacle Midland, a midstream company owned by private equity firm Energy Spectrum Capital, for $550 million in cash, expanding the U.S. refiner’s natural gas gathering and processing footprint in the Midland Basin.

 

Oil and gas producers in the United States went on a nearly $250 billion buying spree in 2023, taking advantage of their high stock prices to secure lower-cost reserves, continuing the trend in 2024. In 2023, some 39 private companies were acquired by public companies.

The Midland basin in Texas, in the Permian shale, is the nation’s biggest oil and second biggest gas producing basin.

“Pinnacle is a bolt-on asset that advances our wellhead-to-market strategy,” said Mark Lashier, CEO of Phillips 66.

“Further, this transaction aligns with our long-term objectives to build out our natural gas liquids value chain.”

Phillips 66 holds 11 natural gas liquids (NGL) fractionation plants, along with natgas and NGL storage facilities and NGL pipelines, and 22,000 miles of pipelines.

Pinnacle’s assets include the Dos Picos natgas complex with a processing capacity of 220 million cubic feet per day (mmcfd), and 80 miles of pipelines.

The complex could be scalable toward a second 220 mmcfd gas plant and would integrate well into Phillip 66’s existing downstream infrastructure, the company said in a statement.

The transaction is expected to close mid-2024.

 

Free Trial: Access 13,300 Tank Terminal and Production Facilities

13,300 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data

Wood Bags Six-Year Contract on Shell’s Prelude Facility
07.12.2024 - NEWS
July 12, 2024 [Yahoo Finance]- Shell has awarded a six-year contract to engineering company Woo... Read More
Malaysia’s Bintulu LNG Plant to Get First Supplies from Jerun Gas Field
07.12.2024 - NEWS
July 12, 2024 [LNG Prime]- Malaysia’s giant Bintulu LNG plant, operated by Petronas, will soon ... Read More
Rubis Terminal Rebrands as Tepsa, Building on Legacy and Embracing Evolution
07.12.2024 - NEWS
July 12, 2024 [Storage Terminals Magazine]- Rubis Terminal is excited to announce a strategic reb... Read More
Adnoc Awards Abu Dhabi Airport Tank Farm Project
07.11.2024 - NEWS
July 11, 2024 [MEED]- Abu Dhabi National Oil Company (Adnoc) has awarded the main engineering, pr... Read More