Years after Denver-based DCP Midstream expanded its natural gas gathering assets into Oklahoma, the company’s sale in a $3.8 billion by Phillips 66 has been finalized.
Phillips announced this week the completion means it now owns 86.85 of DCP Midstream. The deal included an acquisition of all the publicly held common units representing limited partner interests in DCP Midstream for $41.75 per common unit in cash.
As a result and effective on Thursday, DCP Midstream common units were no longer traded on the New York Stock Exchange.
The acquisition by Phillips 66 was announced in January and the company said at the time, the transaction was expected to generate an incremental $1 billion of adjusted EBITDA for Phillips 66. In addition, Phillips 66 expects to capture operational and commercial synergies of at least $300 million by integrating DCP Midstream into its existing midstream business.
“We are delivering on our commitment to grow our NGL business,” said Mark Lashier, President and CEO of Phillips 66 at the time of the original announcement.
“Our wellhead-to-market platform captures the full NGL value chain. As we continue integrating DCP Midstream, we are unlocking significant synergies and growth opportunities.”
Phillips 66 explained it funded the approximately $3.8 billion cash consideration through a combination of cash and debt while maintaining its current investment grade credit ratings.