WASHINGTON (dpa-AFX) - Phillips 66 (PSX) announced Monday that it has entered into a definitive agreement to sell DCP GCX Pipeline LLC, which owns a 25% non-operated equity interest in Gulf Coast Express Pipeline LLC, to an affiliate of ArcLight Capital Partners, LLC for pre-tax total cash proceeds of $865 million, subject to purchase price adjustments.
Gulf Coast Express Pipeline is an approximately 500-mile pipeline system that transports about 2 billion cubic feet per day of natural gas from the Permian Basin to the Agua Dulce, Texas area.
Following the transaction, Gulf Coast Express Pipeline LLC will be jointly owned by subsidiaries of Kinder Morgan, Inc. (KMI) and affiliates of ArcLight Capital Partners, LLC.
The proceeds from the sale will support the strategic priorities of Phillips 66, including returns to shareholders and debt reduction. The sale is expected to close in January 2025.
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