Phillips 66 Partners (PSXP)

• Pipeline transportation of natural gas company
• phillips66partners.com
• Headquarters: Houston, TX
• Founded: 2013
• Div/yield 0.62/4.77

Phillips 66 Partners (PSXP) reaches agreement w/ Phillips 66 (PSX) to acquire its 25% interest in each of Dakota Access, Energy Transfer Crude Oil Company, and Merey Sweeny in a transaction valued at $2.4 bln

The acquisition is expected to be immediately accretive to the Partnership and its unitholders and is anticipated to close in early October 2017.

• The total transaction value of $2.4 billion includes $625 million in proportional non-consolidated, non-recourse Bakken Pipeline debt and $100 million of MSLP debt.
• In connection with the MSLP acquisition, Phillips 66 Partners will enter into a new 15-year tolling agreement that includes a base throughput fee and minimum volume commitment from Phillips 66.
• Consideration for the acquisition is $1.7 billion.
• The Partnership plans to fund the acquisition through a combination of debt, proceeds from a private placement of equity units, and PSXP units issued to Phillips 66.
• The transaction includes interests in the following assets:
  • The Bakken Pipeline, which consists of 1,926 combined pipeline miles and 520,000 barrels per day ("BPD") of crude oil capacity expandable to 570,000 BPD.
  • MSLP, owner of facilities that process residue from heavy sour crude oil into liquid products and fuel-grade petroleum coke at the Phillips 66 Sweeny Refinery in Old Ocean, Texas.

Phillips 66 Partners to sell $750 million of newly issued Series A Perpetual Convertible Preferred Units at $54.27 per preferred unit and 6,304,204 common units at $47.59 per common unit
The Partnership expects to use a portion of the net proceeds from the offering to fund its announced acquisition of a 25 percent interest in each of Dakota Access, LLC and Energy Transfer Crude Oil Company, LLC (collectively, the "Bakken Pipeline"), and a 100 percent interest in Merey Sweeny, L.P. The Partnership expects to use the remaining proceeds for general partnership purposes, including funding of future acquisitions and organic projects and repayment of outstanding indebtedness.