US-based petroleum refiner Phillips 66 has made an offer to acquire the public units of natural gas company DCP Midstream to boost its natural gas liquids business.

Phillips 66 is proposing $34.75 for each of DCP Midstream’s outstanding publicly-held common units as part of the transaction.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

A potential deal would value the pipeline operator at $7.2bn, reported Reuters.

The latest move follows an agreement signed by Phillips 66 with Canadian pipeline operator Enbridge to merge their indirect ownership interests in Gray Oak, as well as DCP Midstream, in a single joint venture.

Under the deal, Phillips 66 increased its stake in DCP Midstream to 43.3%, from 28.3%, as well as reduced its stake in the Gray Oak Pipeline to 6.5%, from 42.3%.

This will result in Enbridge reducing its indirect interest in DCP from 28.3% to 13.2%.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Phillips 66 said it will make a $400m cash payment to Enbridge as part of the transaction.

Enbridge has also agreed to increase its indirect interest in the Gray Oak pipeline from 22.8% to 58.5% and will serve as the operator.

The Grey Oak pipeline transports crude oil to the Gulf Coast from West Texas, US.

Enbridge president and CEO Al Monaco said: “We’re pleased to have reached this new arrangement with P66 to optimise the combined assets and drive operational and financial synergies from both assets.

“It’s another example of our continued focus on optimising our portfolio and surfacing value for our shareholders while further building out our already strong US Gulf Coast export position. We look forward to continuing our strong partnership with P66.”