HOUSTON, June 14, 2024–(BUSINESS WIRE)–Phillips 66 (NYSE: PSX) today announced that it has agreed to sell its 25% non-operated common stock interest in Rockies Express Pipeline LLC (REX) to an affiliate of Tallgrass Energy, LP ( TGE) for an enterprise value of approximately $1.275 billion. TGE is the operator of REX and will own 100% of the common equity interest in REX following the transaction. This transaction will generate pre-tax cash proceeds of $685 million for Phillips 66, after adjustments for Phillips 66’s allocation of REX’s debt and preferred stock balances.

“This sale is an important step in our commitment to achieve more than $3 billion in asset divestitures,” said Mark Lashier, chairman and CEO of Phillips 66. “We are committed to managing our portfolio and monetizing assets that no longer fit our long-term vision. strategy.”

The expected proceeds will support Phillips 66’s strategic priorities, including shareholder returns.

REX, a 1,700-mile pipeline system, is one of the largest natural gas pipelines in the United States, providing more than 5 billion cubic feet per day of bidirectional natural gas transportation between the Rockies, Appalachia and the Northeastern United States.

The transaction is expected to close today.

About Philips 66

Phillips 66 (NYSE: PSX) is a leading diversified and integrated downstream energy provider that produces, transports and markets products that power the global economy. The company’s portfolio includes Midstream, Chemicals, Refining and Marketing and Specialties businesses. Headquartered in Houston, Phillips 66 has employees around the world who are committed to delivering energy safely and reliably and improving lives while pursuing a lower-carbon future. For more information, visit phillips66.com or follow @Phillips66Co on LinkedIn.


This press release contains forward-looking statements within the meaning of the federal securities laws. Words such as ‘expects’, ‘estimated’, ‘expected’, ‘planned’, ‘planned’, ‘targeted’, ‘believes’, ‘continues’, ‘plans’, ‘will’, ‘would’, ‘ objectives,” “Goals,” “projects,” “efforts,” “strategies” and similar expressions are used to identify such forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements in this press release are based on management’s expectations, estimates and projections as of the date they are made. These statements are not guarantees of future performance and you should not place undue reliance on them as they involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from those expressed or predicted in such forward-looking statements. Forward-looking statements in this press release include, but are not limited to, statements regarding the expected benefits of the transaction to Phillips 66 and its stockholders and the expected completion of the transaction and its timing. Factors that could cause actual results or events to differ materially from those described in the forward-looking statements include: fluctuations in the prices of NGL, crude oil, refined petroleum products and natural gas, and refining, marketing and petrochemical margins ; changes in government policies or laws relating to NGL, crude oil, natural gas, refined petroleum products or renewable fuels that regulate profits, prices or taxes, or other regulations that limit or restrict refining, marketing and midstream activities or limit exports; the impact of a widespread public health crisis and its negative impact on commercial activity and demand for refined petroleum products; Phillips 66’s ability to timely obtain or maintain permits necessary for capital projects; changes in global government policies regarding renewable fuels and greenhouse gas emissions that negatively impact programs, including the Renewable Fuel Standards Program, Low Carbon Fuel Standards and Biofuel Tax Credits; Phillips 66’s ability to realize the expected benefits of the integration of DCP Midstream, LP, including the realization of synergies; the success of Phillips 66’s business transformation initiatives and the realization of savings and cost reductions through actions taken in connection therewith; unexpected changes in the costs of constructing, modifying or operating Phillips 66’s facilities; Phillips 66’s ability to successfully complete the divestitures or acquisitions of assets that we may pursue, or any material delay in their completion; unexpected problems in the production, refining or transportation of Phillips 66’s products; the level and success of drilling and production volumes around Phillips 66’s midstream assets; risks and uncertainties relating to the actions of actual or potential competitive suppliers and transporters of refined petroleum products, renewable fuels or specialty products; lack of or disruptions in adequate and reliable transportation for Phillips 66’s NGL, crude oil, natural gas and refined products; potential liability arising from litigation or for remedial actions, including removal and reclamation obligations under environmental regulations; the inability to complete construction of capital projects on time and within budget; Phillips 66’s ability to comply with government regulations or incur capital expenditures to maintain compliance with laws; limited access to capital or significantly higher costs of capital due to illiquidity or uncertainty in domestic or international financial markets, which may also impact Phillips 66’s ability to repurchase shares and declare and pay dividends; potential disruption of Phillips 66’s operations due to accidents, weather events, including as a result of climate change, acts of terrorism or cyber-attacks; general domestic and international economic and political developments, including armed hostilities (such as the war between Russia and Ukraine), expropriation of assets and other political, economic or diplomatic developments; international monetary conditions and exchange controls; changes in estimates or projections used to assess the fair value of intangible assets, goodwill and property and equipment and/or strategic decisions regarding Phillips 66’s asset portfolio that result in impairment; required investments or reduced demand for products due to environmental rules and regulations; changes in tax, environmental and other laws and regulations (including alternative energy mandates); political and social concerns about climate change that could lead to changes in Phillips 66’s operations or increased expenses, including litigation costs; the operating, financing and distribution decisions of affiliates over which we have no control; and other economic, business, competitive and/or regulatory factors affecting Phillips 66’s business generally, as set forth in filings with the Securities and Exchange Commission. Phillips 66 undertakes no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

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Jeff Dietert (investors)
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Owen Simpson (investors)
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Thaddeus Herrick (media)
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