Phillips 66 to Sell 25% Stake in Rockies Pipeline for $1.28 Billion to Tallgrass Energy Unit

Phillips 66 said it would sell its 25% stake in the 1,714-mile Rockies Express Pipeline (REX) for about $1.28 billion to Tallgrass Energy.

(Reuters) — U.S. oil refiner Phillips 66 said on Friday it would sell its 25% stake in the Rockies Express Pipeline (REX) for about $1.28 billion, including debt, to a subsidiary of Tallgrass Energy.

"This sale is an important step in our commitment to deliver over $3 billion in asset divestitures," Phillips 66 CEO Mark Lashier said in a statement.

REX, a 1,714-mile (2758.42 km) pipeline system, is one of the largest natural gas pipelines in the U.S. and provides over 5 billion cubic feet per day of bi-directional natural gas transportation service between the Rockies, Appalachia and the northeastern United States.

Privately owned Tallgrass Energy operates the pipeline and owns the remaining 75% stake.

The transaction is expected to close on Friday.