Pipeline Power Play: Phillips 66 Makes $550M Gas Grab In The Permian Basin
Portfolio Pulse from Lekha Gupta
Phillips 66 (NYSE:PSX) is acquiring Pinnacle Midland Parent LLC for $550 million to expand its natural gas gathering and processing footprint in the Midland Basin. The acquisition includes the Dos Picos natural gas system and is expected to close by mid-2024. Phillips 66 aims to strengthen its Midstream business and create sustainable value for shareholders. The company recently reported first-quarter FY24 revenue of $36.436 billion, exceeding expectations, but missed on adjusted EPS. Investors can gain exposure to Phillips 66 through IShares U.S. Oil & Gas Exploration & Production ETF (BATS:IEO) and VanEck Oil Refiners ETF (NYSE:CRAK).

May 21, 2024 | 10:49 am
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POSITIVE IMPACT
Investors can gain exposure to Phillips 66 through VanEck Oil Refiners ETF, which may benefit from the company's acquisition of Pinnacle Midland Parent LLC.
VanEck Oil Refiners ETF holds Phillips 66, and the acquisition could positively impact the ETF's performance as Phillips 66 expands its natural gas operations.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Investors can gain exposure to Phillips 66 through IShares U.S. Oil & Gas Exploration & Production ETF, which may benefit from the company's acquisition of Pinnacle Midland Parent LLC.
IShares U.S. Oil & Gas Exploration & Production ETF holds Phillips 66, and the acquisition could positively impact the ETF's performance as Phillips 66 expands its natural gas operations.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Phillips 66 is acquiring Pinnacle Midland Parent LLC for $550 million to expand its natural gas gathering and processing footprint in the Midland Basin. The acquisition is expected to close by mid-2024.
The acquisition of Pinnacle Midland Parent LLC will expand Phillips 66's natural gas operations, potentially driving future revenue growth and operational synergies. This aligns with the company's long-term strategy and could positively impact its stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100