: DCP Midstream stock up 5% as Phillips 66 moves to grow its stake

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DCP Midstream LP DCP, +6.69% stock rose 5.4% in premarket trades on Friday after its corporate parent Phillips 66 PSX, +2.60% said it would pay $41.75 per common unit to increase its stake in the pipeline partnership to 86.8%. The deal is valued at about $3.8 billion. Once the transaction closes, DCP’s common units will cease trading on the NYSE, according to a company spokesperson.  DCP Midstream’s preferred equity will remain listed on the NYSE and DCP Midstream will continue to be registered with the Securities and Exchange Commission, the spokesperson said. Phillips 66 said the transaction is expected to generate $1 billion of adjusted EBITDA for Phillips 66. Phillips 66 also expects to “capture operational and commercial synergies” valued at $300 million or more by integrating DCP Midstream into its existing midstream business. Shares of Phillips 66 dipped 0.9% in premarket trades.

This article was originally published by Marketwatch.com. Read the original article here.

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