Phillips 66 is set to take full ownership of the Wood River and Borger refineries in the US through an all-cash deal worth $1.4bn with its joint venture (JV) partner Cenovus Energy.
In this connection, Phillips 66 will acquire Cenovus Energy’s 50% stake in their WRB Refining JV, which serves as the holding entity for both refineries. The deal is expected to close in Q4 2025.
The Wood River Refinery is located in Roxana, Illinois, while the Borger Refinery is in Borger, Texas.
Phillips 66 has operated both facilities since the partnership began in 2007.
The Wood River and Borger refineries have crude throughput capacities of 345,000 and 149,000 barrels per day, respectively. Upon finalisation, this acquisition will increase Phillips 66’s refining capacity by approximately 250,000 barrels per day.
Phillips 66 chairman and CEO Mark Lashier said: “With full ownership of the Wood River and Borger refineries, we are strengthening our integrated business and expanding our position in a region where we lead the industry.
“This acquisition is expected to deliver operational and commercial synergies of approximately $50m per year by enabling full integration of these assets with the broader Phillips 66 value chain. We also expect this transaction to unlock opportunities for low-capital, high-return projects that provide incremental long-term shareholder value.”
The Wood River Refinery, established in 1917 near St. Louis, Missouri, is equipped with various units necessary for crude oil processing, including crude distilling, naphtha reforming, and fluid catalytic cracking. It plays a crucial role in distributing refined products across the Midcontinent region through pipelines, railcars, barges, and trucks.
The facility produces a high percentage of transportation fuels alongside other products such as petrochemical feedstocks and asphalt.
Similarly, the Borger Refinery has been operational since 1926 and is located near Amarillo. It features comparable processing units and serves West Texas, New Mexico, Colorado, and other areas with its petroleum products.
Both refineries are capable of processing heavy and medium sour crudes as well as light sweet crudes.
Following this divestment from WRB Refining, Cenovus Energy will continue to operate several other facilities in North America. Its downstream business will include the Lloydminster Upgrader and refineries such as Lima and Superior.
The financial proceeds from this sale are earmarked to reduce Cenovus Energy’s net debt and increase shareholder returns through share repurchases.
Cenovus Energy president and CEO Jon McKenzie said: “This transaction aligns with our strategy of owning and operating the assets that are core to our business. After the sale of WRB, our downstream business will be more focused, comprised of assets we control, which provide physical integration and egress for our leading upstream heavy oil business.
“The proceeds from this transaction will allow us to accelerate shareholder returns over the near term.”
