'Phillips 66 Explores Sale Of Of Its 25% Stake In The Rockies Express Pipeline Worth Over $1B, Sources Say' - Reuters News
Portfolio Pulse from Benzinga Newsdesk
Phillips 66 (PSX.N) is exploring the sale of its 25% stake in the Rockies Express Pipeline, valued over $1 billion including debt. The pipeline stretches from Wyoming and Colorado to Eastern Ohio. Phillips 66 aims to raise about $3 billion from asset sales this year, amidst pressure from Elliott Management to improve operations. The company is in talks with potential buyers, including private equity and infrastructure funds, to sell the stake which has a book value of $451 million but is expected to fetch a premium.
March 26, 2024 | 7:45 pm
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Phillips 66 is exploring the sale of its 25% stake in the Rockies Express Pipeline, potentially valued over $1 billion, as part of its strategy to raise about $3 billion from asset sales this year.
The sale of a significant asset like the Rockies Express Pipeline stake could positively impact Phillips 66's stock price in the short term. The potential sale is part of a broader strategy to raise funds through asset sales, which could improve the company's financial flexibility and potentially appease activist investor pressures. The expectation to sell at a premium to its book value also suggests a favorable deal for Phillips 66.
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