Phillips 66 Buys Public Units of Pipeline Operator DCP Midstream for $3.8 Billion
Phillips 66 said on Friday it acquired all publicly held units of DCP Midstream LP in a sweetened deal that values the pipeline operator at about $8.7 billion and will help bulk up the U.S. refiner’s natural gas liquids business.
The deal, the first major move by Mark Lashier who took over as chief executive of Phillips 66 in July last year, will double the company’s stake in DCP Midstream to 86.8 percent.
Phillips had vowed last month to increase spending on new projects by about 6 percent in 2023, with a focus on bolstering its pipeline businesses.
The Houston, Texas-based refiner is buying the public units for $3.8 billion, or $41.75 per share, compared with its previous offer of $34.75 per share. DCP Midstream’s shares rose nearly 6.4 percent to $41.84, while those of Phillips 66 were up 1.1 percent….