Phillips 66 Partners to acquire $700M in assets from Phillips 66

|About: Phillips 66 (PSX)|By:, SA News Editor

Phillips 66 Partners (PSXP +1.8%) announces its first post-IPO acquisition, to include Phillips 66's (PSX +1.9%) 681-mile Gold Line pipeline system and two newly constructed refinery-grade propylene storage units for $700M.

PSXP will finance the deal with $400M in cash on hand, the issuance of $140M in additional units and a $160M note payable to a PSX subsidiary.

PSXP expects the dropdown from PSX to be immediately accretive to its earnings and distributable cash flow.