Phillips 66 has officially completed its acquisition of EPIC Y-Grade GP, LLC and EPIC Y-Grade, LP, marking a significant expansion of its midstream and chemicals operations. The $2.2 billion cash transaction secures Phillips 66 ownership of EPIC NGL, a company encompassing a network of long-haul natural gas liquids (NGL) pipelines, fractionation facilities, and distribution systems.

The acquisition brings two fractionation facilities near Corpus Christi, Texas, with a combined capacity of 170 thousand barrels per day (MBD). Additionally, the deal includes approximately 350 miles of purity distribution pipelines and an 885-mile NGL pipeline, currently operating at 175 MBD, which connects key production basins in the Delaware, Midland, and Eagle Ford regions to fractionation complexes and the Phillips 66 Sweeny Hub.

Don Baldridge, Executive Vice President of Midstream & Chemicals at Phillips 66, emphasized the strategic importance of the acquisition. “This transaction strengthens our position as a leading integrated downstream energy provider. We are evolving our portfolio and enhancing our ability to provide seamless and efficient delivery of energy products,” Baldridge stated. He further highlighted the benefits for producers, noting that Phillips 66 will offer “unparalleled flow assurance” while advancing a strategy designed to deliver attractive returns and create long-term value for shareholders.

The acquired assets are strategically positioned to connect Permian Basin production to Gulf Coast refiners, petrochemical companies, and export markets, creating significant synergies with Phillips 66’s existing asset base. This integration is expected to streamline operations and enhance the company's ability to capitalize on the growing demand for NGLs.

Phillips 66 is also moving forward with expansion plans for the acquired NGL pipeline. An ongoing project to increase capacity from 175 MBD to 225 MBD is expected to be completed in the second quarter. Furthermore, the company has sanctioned a second expansion to boost capacity to 350 MBD, with completion targeted for the fourth quarter of 2026. These expansions underscore Phillips 66’s commitment to investing in infrastructure that supports the efficient transportation and processing of NGLs.

The completion of this acquisition reinforces Phillips 66’s commitment to optimizing its portfolio and enhancing its midstream and chemicals capabilities. By integrating EPIC NGL’s assets, Phillips 66 is poised to strengthen its market presence and deliver enhanced value to its customers and shareholders. The company’s strategic focus on expanding its infrastructure and improving operational efficiencies aligns with its long-term growth objectives in the dynamic energy sector. The acquisition is expected to contribute positively to the company's financial performance and solidify its position as a key player in the NGL market.