Phillips 66, Houston, has agreed to acquire Pinnacle Midland Parent LLC from Energy Spectrum Capital for cash consideration of $550 million in a move to expand its natural gas gathering and processing footprint in the Midland basin.
“Pinnacle is a bolt-on asset that advances our wellhead-to-market strategy and complements our diversified and integrated asset portfolio,” said Mark Lashier, chairman and chief executive officer of Phillips 66, in a press release May 20.
Pinnacle’s assets include the recently built Dos Picos natural gas gathering and processing system: a 220 MMcfd gas processing plant, 80 miles of gathering pipeline, and 50,000 dedicated acres through high-quality producers in one of Phillips 66’s focus basins, the company said.
Phillips 66 said the processing complex is scalable toward a second 220 MMcfd gas plant and integrates well into the company’s existing downstream infrastructure.
