Phillips 66 Partners LP has reached an agreement with Phillips 66 to acquire its 25-percent interest in each of Dakota Access LLC and Energy Transfer Crude Oil Co. LLC and 100-percent interest in Merey Sweeny LP, the owner of fuelgrade coke processing units at the Phillips 66 Sweeny Refinery.
The total transaction value of $2.4 billion reflects an approximate 8.9-times multiple, based on the acquired assets’ forecasted full-year 2018 adjusted EBITDA of approximately $270 million. Consideration for the acquisition is $1.7 billion. As part of the transaction, the partnership will assume certain Phillips 66 term loans and notes payable to Phillips 66, which the partnership expects to repay with a combination of proceeds from the private placement of equity and long-term debt.
The transaction includes interests in the Bakken Pipeline, which consists of 1,926 combined pipeline miles and 520,000 bpd of crude oil capacity expandable to 570,000 bpd; receipt stations in North Dakota to access Bakken and Three Forks production; a delivery and receipt point in Patoka, Illinois; and delivery points in Nederland, Texas, including the Phillips 66 Beaumont Terminal.
For more information, visit www. phillips66.com or call (281) 293-6600.