Oil & Gas: General Electric, Berkshire Hathaway Buying Pipeline Ancillaries (GE, BRK)

In GE's case they may talk EcoImagination but it was the oil and gas biz that saved their most recent earnings reports. In Warren's world he's going to make money whether oil is shipped by rail or pipeline or inside See's chocolates.
From IHS Chemical Week:
Berkshire to acquire Phillips pipeline chemicals business

Berkshire Hathaway has agreed to acquire the pipeline flow-improver chemicals business of Phillips 66, Phillips Specialty Products Inc. (PSPI), for roughly $1 billion. The business manufactures drag-reducing agents, long-chain hydrocarbon polymers that act as buffers along pipe walls that decrease the amount of energy lost in turbulent formation. Conoco developed the technology 30 years ago, and Phillips 66 inherited the business when it was spun off from ConocoPhillips in 2011.

PSPI has a manufacturing plant at Bryan, TX, which employs 140 people. The company also has management and sales offices at Houston, Brussels, and Moscow. The R&D facilities are located at Ponca City, OK. Berkshire says that James Hambrick, CEO of Lubrizol, will oversee the acquired business. Production capacities and sales figures have not been disclosed.

Phillips 66 will receive about 19 million shares of Phillips 66 common stock currently held by Berkshire Hathaway currently valued at $1.45 billion, according to a Phillips 66 regulatory filing. “This transaction will enable Phillips 66 to further optimize our portfolio and focus on growing our midstream and chemicals businesses,” Phillips 66 says. The company says it expects the businesses balance sheet at closing to include approximately $450 million of cash and cash equivalents, putting the enterprise value of the deal at roughly $1 billion....MORE

And from GE via Yahoo Finance:
GE to Acquire Cameron’s Reciprocating Compression Division

• Enhances GE’s Distributed Gas Portfolio and New Downstream Technology Solutions Business
• Expands GE’s Servicing and Manufacturing Capabilities in Gas Production, Processing and Distribution Sectors
• Compressors Enhance GE’s Technologies in the Growing Shale Development Sector

HOUSTON--(BUSINESS WIRE)--

GE Oil & Gas (GE) and Cameron (CAM), a Houston-based provider of flow equipment, systems and services, today announced that GE has agreed to acquire Cameron’s Reciprocating Compression division for $550 million. 

The division provides reciprocating compression equipment and aftermarket parts and services for oil and gas production, gas processing, gas distribution and independent power industries. Cameron’s Reciprocating Compression division, which generated sales of approximately $355 million in 2012, has approximately 900 employees and operates from 20 global locations. The acquisition is expected to close later this year subject to regulatory approval....MORE