Phillips 66 (PSX) Divests Rockies Express Pipeline Stake

Core Insights - Phillips 66 (PSX) has sold its 25% non-operated equity interest in the Rockies Express Pipeline to Tallgrass Energy for $1.28 billion, as part of a strategy to generate over $3 billion from asset divestitures [1][2] - The Rockies Express Pipeline is a significant natural gas pipeline in the U.S., transporting approximately 5 billion cubic feet per day across 1,714 miles [1] - The sale will provide PSX with pre-tax proceeds of $685 million, which will be utilized to enhance shareholder returns and support other priorities [2] Company Strategy - Phillips 66 is focused on optimizing its portfolio by monetizing non-essential assets to align with long-term objectives [2] - Following the transaction, Tallgrass Energy will fully own the Rockies Express Pipeline, consolidating its operational control [2] Financial Impact - The deal is part of Phillips 66's broader initiative to achieve over $3 billion in asset divestitures, indicating a significant shift in its asset management strategy [1] - The pre-tax proceeds from the sale, amounting to $685 million, reflect adjustments related to debt and preferred equity balances [2]