(Bloomberg) -- Phillips 66 agreed to acquire Pinnacle Midland Parent LLC for $550 million in cash from private equity firm Energy Spectrum Capital, allowing it to expand natural gas processing in the Midland Basin. 

Pinnacle’s assets include the recently built Dos Picos system that can process 220 million cubic feet of gas per day. The Texas company also owns 80 miles of pipeline and 50,000 dedicated acres in one of Phillips 66’s focus basins. The processing complex and related infrastructure is easily scalable, the companies said.  

The transaction is expected to close by mid-year.  

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