Phillips 66 Optimizes Portfolio With $865M Pipeline Sale

Core Viewpoint - Phillips 66 is strategically divesting non-core assets to enhance financial health and maintain stable investor returns amid fluctuating refining margins [1][4]. Group 1: Asset Divestiture - Phillips 66 plans to sell its 25% stake in the Gulf Coast Express pipeline for $865 million, contributing to its goal of exceeding$3 billion in non-core asset divestitures [1]. - The company has already raised $2.7 billion through the sale of fuel terminals, pipelines, and its stake in a Swiss retail joint venture [2]. Group 2: Financial Management - Despite declining refining profits, Phillips 66 is committed to cost-cutting measures, expecting costs to decrease from$1.07 billion in 2024 to $822 million in 2025 [3]. - For 2025, overall expenditures are projected at$2.1 billion, slightly below the $2.2 billion forecast for 2024, reflecting a prudent approach to managing fluctuating refining margins [3]. Group 3: Market Outlook - U.S. refining margins are expected to stabilize in 2025 due to increased industrial demand and refinery closures, including Phillips 66's Los Angeles facility [4]. - The divestiture and cost optimization efforts align with the company's strategy to sustain shareholder value in a dynamic market environment [4].