Phillips 66 Powers Up With $2.2 Billion Deal For EPIC Y-Grade's NGL Business

Phillips 66 PSX shares are trading higher on Tuesday. On Monday, the company disclosed a definitive deal to acquire EPIC Y-Grade, LP’s natural gas liquids (NGL) business for $2.2 billion in cash.

The EPIC NGL business includes two fractionators with a combined capacity of 170 MBD near Corpus Christi, Texas.

The business also includes around 350 miles of purity distribution pipelines and an 885-mile NGL pipeline linking production from the Delaware, Midland, and Eagle Ford basins to the fractionation complexes and Phillips 66’s Sweeny Hub.

EPIC NGL is working to increase its pipeline capacity to 225 MBD and has planned a second expansion to 350 MBD, without affecting Phillips 66’s 2025 capital program.

A third fractionation facility could further increase capacity to 280 MBD.

These assets connect Permian production to Gulf Coast refiners, petrochemical companies, and export markets and will be closely integrated with Phillips 66’s existing infrastructure.

The deal, subject to customary closing conditions, is expected to be immediately accretive to earnings per share upon closing.

As of September 30, Phillips 66 had cash and cash equivalents of $1.6 billion and $5.3 billion in committed credit facility capacity.

Investors can gain exposure to the stock via IShares U.S. Oil & Gas Exploration & Production ETF IEO and VanEck Oil Refiners ETF CRAK.

Price Action: PSX shares are up 1.15% at $116.49 at the last check Tuesday.

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