Phillips 66 Partners LP PSXP disclosed Monday that it agreed to buy an additional 2.5 percent equity stake in Explorer Pipeline Company. According to the company, this transaction would boost its total ownership interest to about 22 percent. Both the company did not revealed the agreement terms.
Phillips 66 Partners expects the acquisition to be immediately accretive to its unit holders. The company indicated that the stake hike was funded with cash and borrowings under the Partnership's revolving credit facility. The companies expect the transaction to close in August subject to approval from the regulators.
Explorer is regarded as one of the leading petroleum products transporters in the country serving over 70 major cities in 16 states. The company indicated its 1,830-mile pipeline transports gasoline, diesel, fuel oil and jet fuel with an average flow of over 600,000 barrels a day.
On Monday, the stock dropped 1.03 percent.
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