PSX - Phillips 66 to increase DCP Midstream stake in $3.8B deal
DCP Midstream ( NYSE: DCP ) +5.5% pre-market Friday after Phillips 66 ( NYSE: PSX ) said it agreed to buy all publicly held common units in the company for $41.75 each, raising Phillips' stake in DCP to 86.8%.
Phillips 66 ( PSX ) said it plans to fund the ~$3.8B deal through a combination of cash and debt while maintaining its current investment grade credit ratings.
The company expects the acquisition will generate an incremental $1B of adjusted EBITDA, and it anticipates capturing operational and commercial synergies of at least $300M by integrating DCP Midstream ( DCP ) into its existing midstream business.
In August, Phillips 66 ( PSX ) submitted a proposal to acquire all of DCP it did not already own for $34.75/unit .
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Phillips 66 to increase DCP Midstream stake in $3.8B deal