June 14, 2024 | 1 minute read

HOUSTON – Bracewell LLP advised Phillips 66 in the sale of its 25 percent non-operated common equity interest in Rockies Express Pipeline LLC (REX) to a subsidiary of Tallgrass Energy, LP (TGE) for an enterprise value of approximately $1.275 billion. TGE is the operator of REX and will own 100 percent of the common equity interest in REX following the transaction. This transaction generates pre-tax cash proceeds of $685 million to Phillips 66 after adjustments for Phillips 66’s allocation of REX’s debt and preferred equity balances. REX, a 1,714-mile pipeline system — one of the largest natural gas pipelines in the United States — that provides over 5bcfd of bi-directional natural gas transportation service between the Rockies, Appalachia and the northeastern US.

Additional information about the proposed divestiture can be found here.

Bracewell lawyers involved in the transaction included:

Partners: Benjamin J. Martin, G. Alan Rafte and Elizabeth L. McGinley

Associates: Andrew P. Mintz, Benjamin S. Cantor, Samuel C. Lombardo and Gabriela J. Hindera