10:08 AM EDT, 06/14/2024 (MT Newswires) -- (Updates with additional details starting from the third paragraph, adds stock move in the last paragraph.)

Phillips 66 (PSX) said Friday it has agreed to sell its 25% non-operated common equity interest in Rockies Express Pipeline to a Tallgrass Energy subsidiary for about $1.28 billion.

The deal is expected to close Friday, Phillips 66 said.

Tallgrass, which is the operator of Rockies Express Pipeline, will own 100% of the common equity interest in the pipeline after the deal closes, Phillips 66 said.

The deal will generate pre-tax cash proceeds of $685 million to Phillips 66, the company said, adding the proceeds will support its strategic priorities, which include returns to shareholders.

Phillips 66 shares were down 0.7% in recent trading.

Price: 136.66, Change: -1.01, Percent Change: -0.73