Phillips 66 (NYSE: PSX) has taken a significant step to strengthen its position in the Permian Basin midstream sector by announcing a definitive agreement to acquire EPIC Y-Grade GP, LLC and EPIC Y-Grade, LP (collectively referred to as “EPIC NGL”). The acquisition is valued at $2.2 billion in cash, subject to customary purchase price adjustments.

Phillips 66 has sold 550 miles of natural gas pipelines, along with associated assets in the Haynesville Shale, to Voyager Midstream Holdings, a portfolio company of Pearl Energy Investments. The assets are located in Texas (Panola, Rusk, and Harrison counties) and Louisiana (Caddo Parish).

Phillips 66 is acquiring Pinnacle Midland Parent LLC for $550 million to expand its natural gas gathering and processing in the Midland Basin. This acquisition includes the Dos Picos system, which adds significant capacity and complements Phillips 66’s existing infrastructure. The transaction is expected to close by mid-2024, pending regulatory approval.