Phillips 66 (NYSE: PSX) has just announced its plan to acquire the remaining 50% ownership interest in WRB Refining LP from subsidiaries of Cenovus Energy Inc. for a total cash consideration of $1.4 billion. This acquisition is expected to strengthen Phillips 66's integrated business and expand its position in the industry, particularly in the Wood River Refinery in Roxana, Illinois, and the Borger Refinery in Borger, Texas.
Upon closing, the Wood River and Borger refineries will increase Phillips 66's refining capacity by approximately 250 thousand barrels per day (mbd), with crude throughput capacities of 345 mbd and 149 mbd, respectively. These refineries have the capability to process heavy and medium sour crudes, as well as light sweet crudes, and also produce a high percentage of transportation fuels.
The company anticipates operational and commercial synergies of about $50 million per year as a result of this acquisition, enabling full integration of these assets with the broader Phillips 66 value chain. Furthermore, Phillips 66 expects the transaction to unlock opportunities for low-capital, high-return projects, providing incremental long-term shareholder value.
The transaction is set to close during the fourth quarter of 2025. Phillips 66, headquartered in Houston, is a leading integrated downstream energy provider with a portfolio that includes midstream, chemicals, refining, marketing and specialties, and renewable fuels businesses. As a result of these announcements, the company's shares have moved 2.36% on the market, and are now trading at a price of $133.28. Check out the company's full 8-K submission here.
