Phillips 66, a Houston-based downstream energy company, announced on May 20th a $550 million acquisition to bolster its natural gas gathering and processing capabilities in the Permian Basin.

The deal involves Pinnacle Midland Parent LLC, granting Phillips 66 ownership of the Dos Picos natural gas system, capable of processing 220 million cubic feet per day (cf/d). 

The acquisition also includes 80 miles of gathering pipelines and rights to 50,000 acres dedicated to oil and gas production within the eastern Midland Basin region. Notably, the Dos Picos system boasts scalability for an additional 220 MMcf/d with the construction of a second plant, according to a company press release.

Phillips 66 CEO Mark Lashier emphasized the acquisition's role in strengthening the company's presence in the Permian Basin, a currently booming oil and gas region. Lashier highlighted the strategic value of the deal, stating, "Pinnacle is a bolt-on asset that advances our wellhead-to-market strategy and complements our diversified and integrated asset portfolio."

The acquisition aligns with Phillips 66's long-term goals of expanding its natural gas liquids value chain, maintaining disciplined capital allocation, and generating sustainable shareholder value.

In a separate development, Midland, Texas-based ProPetro, an oil and gas drilling company, announced the acquisition of wet sand provider Aqua Prop LLC for $35.6 million. The move aims to bolster ProPetro's sand management operations and broaden its service offerings to clients throughout the Permian Basin.