) announced that it would divest its products pipeline system and
two storage spheres for $700 million to
Phillips 66 Partners LP
The partnership will acquire Phillip 66's Gold Line System -
which consists of a 681-mile refined products pipeline that runs
from its Borger, Texas refinery to Cahokia, Ill. -and two
refinery-grade propylene storage spheres. The transaction is
expected to be completed by Mar 1.
Headquartered in Houston, Texas, Phillips 66 Partners is a master
limited partnership formed by Phillips 66 in 2013 to own,
operate, develop and acquire primarily fee-based crude oil,
refined petroleum product and natural gas liquids pipelines and
terminals and other transportation and midstream assets.
The strength of Phillips 66's business model reflects its
commitment to return value to shareholders along with its strong
cash generation capabilities. Phillips 66 has a good capital
deployment policy through share repurchase and payment of
dividends. We believe that the Berkshire transaction will boost
investor confidence in the stock, and drive shareholder value.
Phillips 66, an independent publicly traded company, was formed
after the spin-off of the refining/sales business of
) in 2012. The move resulted in the creation of the largest
refining company in the U.S. and the largest exploration and
production player based on oil and gas reserves.
Phillips 66, is headquartered in Houston, Texas. In addition to
the refining, marketing and transportation businesses, the
company has emerged as an integrated downstream company with most
of the Midstream and Chemicals segments as well as power
generation and certain technology operations included in the
Emerging Businesses segment.
Phillips 66 currently holds a Zacks Rank #2 (Buy). Meanwhile, one
can also consider better-ranked Zacks Rank #1 (Strong Buy) stocks
in the oil and gas sector like
Clayton Williams Energy, Inc.
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