Phillips 66 to acquire Pinnacle to expand Midland basin footprint
June 4, 2024
Phillips 66, Houston, has agreed to acquire Pinnacle Midland Parent LLC from Energy Spectrum Capital for cash consideration of $550 million in a move to expand its natural gas gathering and processing footprint in the Midland basin.
Phillips 66, Houston, has agreed to acquire Pinnacle Midland Parent LLC from Energy Spectrum Capital for cash consideration of $550 million in a move to expand its natural gas gathering and processing footprint in the Midland basin.
“Pinnacle is a bolt-on asset that advances our wellhead-to-market strategy and complements our diversified and integrated asset portfolio,” said Mark Lashier, chairman and chief executive officer of Phillips 66, in a press release May 20.
Pinnacle’s assets include the recently built Dos Picos natural gas gathering and processing system: a 220 MMcfd gas processing plant, 80 miles of gathering pipeline, and 50,000 dedicated acres through high-quality producers in one of Phillips 66’s focus basins, the company said.
Phillips 66 said the processing complex is scalable toward a second 220 MMcfd gas plant and integrates well into the company’s existing downstream infrastructure.
