Phillips 66 Partners LP said Tuesday it has agreed with Phillips 66 to acquire 30 crude, refined products and natural gas liquids logistics assets for $1.3 billion. The partnership said it will fund the deal with debt and $197 million in new units to be issued to Phillips 66. The deal is expected to close this month and to be immediately accretive to unitholders. "As our largest dropdown acquisition to date, this represents a milestone for the Partnership and will provide additional fee-based income and diversity to our already strong midstream portfolio," Chief Executive Greg Garland said in a statement. Shares were not active in premarket trade, but are down 23% in the year to date, while the S&P 500 has gained 6%.
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