Phillips 66 announced a definitive agreement to acquire EPIC Y-Grade GP, LLC and EPIC Y-Grade, LP (EPIC NGL) for a total cash consideration of $2.2 billion. This acquisition is expected to be immediately accretive to earnings per share upon closing.
The EPIC NGL business includes two fractionators with 170 MBD capacity near Corpus Christi, Texas, approximately 350 miles of purity distribution pipelines, and an 885-mile NGL pipeline with 175 MBD capacity. This pipeline connects production supplies in the Delaware, Midland, and Eagle Ford basins to fractionation complexes and the Phillips 66 Sweeny Hub.
This transaction optimizes Phillips 66’s Permian NGL value chain, providing producers with comprehensive flow assurance and expanding connectivity to end markets. EPIC NGL is already increasing its pipeline capacity to 225 MBD and has sanctioned a second expansion to 350 MBD, which Phillips 66 does not expect to impact its 2025 capital program.
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