Phillips 66 to acquire Pinnacle to expand Midland basin footprint

Phillips 66, Houston, has agreed to acquire Pinnacle Midland Parent LLC (Pinnacle) from private equity firm 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 (OGJ Online, July 11, 2023).

The Dos Picos processing complex and related infrastructure is scalable toward a second 220 MMcfd gas plant and integrates well into Phillip 66’s existing downstream infrastructure, the company continued.

The deal is expected to close mid-year 2024 following satisfaction of customary closing conditions.