Shell, Phillips 66 Explore $3.5 Billion Explorer Pipeline Stake Sale

1 articles · Updated · East Daley Analytics · Aug 6

Shell and Phillips 66 are sounding out buyers for their combined 60.5% stake in Explorer Pipeline at a valuation near $3.5 billion, though the process is early and no deal is assured.
The sale effort comes as Explorer’s operating performance has weakened: average throughput fell 9.5% to 578,000 bpd in 2025, revenue dropped 15.9% to $468 million, and blended rates slid to $1.94 a barrel in 4Q25.
At that price, the asset would fetch about 13.3 times 2025 EBITDA of roughly $264 million, leaving buyers to judge whether the decline reflects a temporary trough or a structural loss of volumes and pricing power.
MPLX and Energy Transfer own the remaining roughly 40% and could also contribute their stakes if interest emerges for the full 1,872-mile system serving Gulf Coast, Midcontinent and Midwest fuel markets.
A July 2025 diluent expansion offers upside beyond refined-products volumes, but undisclosed capacity and utilization mean buyers still face open questions over growth, shipper retention and the cause of Explorer’s recent slump.