U.S. refining giant Phillips 66 (PSX.US) plans to sell over $3 billion in assets
1min read Phillips 66 (PSX.US), the largest fuel producer in the United States by market value, said on Tuesday it expects to sell more than $3bn of assets through its asset disposal plans.
The Houston refiner said it has sold about $2.7bn of assets since 2022. The company will close a refinery in 2025 and divest other investments to address strategic and governance issues raised by activist investor Elliott Investment Management.
Mark Lashier, chief executive of Phillips 66, said on a third-quarter earnings call: "We will continue to evaluate all of our assets as part of our ongoing strategic focus and portfolio optimisation."
Phillips 66 executives said the $3bn target was a floor, not a ceiling.
Kevin Mitchell, chief financial officer of Phillips 66, said: "We will continue to evaluate non-core assets and pursue any dispositions we believe are in our best interest."
The company is implementing a multi-year plan to return up to $15bn to shareholders by the end of this year through cost cuts and improved performance.
The refiner announced on Oct. 16 that it would close its refinery in Los Angeles by the end of next year. Lashier said the long-term uncertainty of the facility was a factor in the decision. Jeff Dietert, vice-president of investor relations, said falling fuel demand, a sharp drop in California crude production and the state's announcement to phase out fossil fuels were also factors.
"So this is not a knee-jerk reaction to a change in California policy. This is a long-term analysis," Dietert said.
Phillips 66 has nine refineries in the US, not including Los Angeles, and two in Europe, according to data.
Shares of Phillips 66 closed 4.36 per cent lower at $123.27 on Tuesday. The stock has fallen more than 5 per cent this year.
