Phillips 66 has agreed to sell its interests in two natural gas liquids (NGL) pipeline systems and a refined products system to its affiliate Phillips 66 Partners in a $1.01bn cash-and-stock transaction.

The transaction includes one-third equity interests in the limited liability companies that respectively own the Sand Hills and Southern Hills NGL pipeline systems, and a 19.46% equity interest in Explorer Pipeline Company, which owns the Explorer refined products pipeline system.

The transaction, which is planned to be completed in early March 2015, will be accretive to the Phillips 66 Partners and its unitholders.

The 720-mile Sand Hills NGL pipeline system delivers takeaway service from DCP Midstream and third-party facilities in the Permian and the Eagle Ford basins to fractionation plants along the Texas Gulf Coast and the Mont Belvieu, Texas market hub.

It has a capacity of 200,000 barrels per day and can be expandable up to 350,000 barrels per day.

The 800-mile Southern Hills NGL pipeline system, which has a capacity of 175,000 barrels per day, offers takeaway service from DCP Midstream and third-party plants in the Midcontinent to fractionation facilities along the Texas Gulf Coast and the Mont Belvieu, Texas market hub.

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The 1,830 mile Explore refined products pipeline system provides connectivity to refineries and market centers from the Gulf Coast to the Midwest. It has a capacity of 660,000 barrels per day.

Phillips 66 Partners chairman and CEO Greg Garland said: "This acquisition will expand our fee-based portfolio into NGL transportation and provide us with an interest in one of the largest refined products pipeline systems in the U.S."