Phillips 66 (NYSE:PSX) announced on Tuesday that it will acquire the remaining 50% stake in WRB Refining LP from Cenovus Energy Inc. (NYSE:CVE) for $1.4 billion in cash, giving it full ownership of two U.S. refineries it has operated since 2007.
The deal covers Cenovus’ share of the Wood River refinery in Roxana, Illinois, and the Borger refinery in Borger, Texas, which together can process about 495,000 barrels per day.
Phillips 66 Chairman and CEO Mark Lashier said complete ownership will simplify operations and strengthen the company’s position in key refining markets. He said the purchase is expected to generate $50 million in annual savings and support smaller projects aimed at boosting returns.
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The Wood River facility has a capacity of 345,000 barrels per day, while Borger can handle 149,000. Both produce mainly transportation fuels and can process a range of crude grades.
Cenovus President and CEO Jon McKenzie said selling the stake aligns with its strategy of concentrating on assets tied to its upstream heavy oil business. Proceeds will be used to pay down debt and increase share repurchases. Through August, the company bought back 18.8 million shares for $388 million at an average price of $20.59.
After the sale, Cenovus’ downstream operations will include refineries in Lloydminster, Lima, Toledo, and Superior, with a combined capacity of 472,800 barrels per day. About 55% of that is dedicated to heavy oil.
As of June 30, 2025, Phillips 66 held $1.1 billion of cash and cash equivalents and $3.7 billion of committed capacity available under credit facilities.
The transaction is also of interest to energy-focused investors, particularly those tracking the Energy Select Sector SPDR Fund (NYSE:XLE) and the iShares U.S. Energy ETF (NYSE:IYE), which both hold stakes in large integrated oil companies.
Price Action: PSX stock closed 1.02% lower at $130.21 on Monday, while CVE stock was trading higher by 1.42% to $16.24 premarket at last check Tuesday.
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