Houston-based Phillips 66 said this week it will acquire Pinnacle Midland Parent from private equity firm Energy Spectrum Capital for $550 million to expand its natural gas gathering and processing system in Midland Basin. Assets of Houston-based Pinnacle include the recently built Dos Picos natural gas gathering and processing system (220 million cfd processing plant, 80 miles of gathering pipeline, and 50,000 dedicated acres in one of Phillips 66’s focus basins).
“Pinnacle is a bolt-on asset that advances our wellhead-to-market strategy and complements our diversified and integrated asset portfolio,” Mark Lashier, chairman and CEO, said Monday. “This transaction aligns with our long-term objectives to build out our natural gas liquids value chain, be disciplined with our capital allocation, and create sustainable value for our shareholders.”
The transaction is expected to close in mid 2024.