HOUSTON - Energy company Phillips 66 (NYSE:PSX) has struck a deal to sell its 49% non-operated interest in the Swiss-based Coop Mineraloel AG (CMA) to its joint venture partner. The transaction, valued at 1.06 billion Swiss francs (approximately $1.24 billion), includes a sales price of 1 billion Swiss francs (around $1.17 billion) and an assumed dividend of 60 million Swiss francs (about $70 million) for the financial year 2024, which is expected to be paid at or before the deal closes.
Mark Lashier, chairman and CEO of Phillips 66, stated that the sale is a key step in the company's divestiture program, aiming to shed over $3 billion in assets. Lashier emphasized the company's ongoing efforts to refine its portfolio and focus on long-term strategic assets.
CMA, the entity being divested, operates a network of 324 retail sites and petrol stations throughout Switzerland. The proceeds from the sale will be directed towards Phillips 66’s strategic priorities, including shareholder returns.
The closing of the sale is contingent on the approval of the Swiss Competition Commission and is anticipated to finalize in the first quarter of 2025.
Phillips 66, headquartered in Houston, is a global player in the downstream energy sector, with a diverse portfolio encompassing Midstream, Chemicals, Refining, Marketing and Specialties, and Renewable Fuels businesses. The company has made a commitment to providing energy and improving lives while working towards a lower-carbon future.
This news is based on a press release statement and includes forward-looking statements subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those projected.
In other recent news, Phillips 66 has seen significant developments. The company has expanded its board of directors with the appointment of Grace Puma Whiteford, who brings with her a wealth of experience from executive roles at PepsiCo (NASDAQ:PEP), Inc. and other major corporations. The company has also reported robust second-quarter results, with adjusted earnings of $984 million and has issued $1.8 billion in senior notes as part of its capital structure management strategy.
Analysts from Piper Sandler, Barclays, and TD Cowen have revised their ratings for Phillips 66, maintaining a positive outlook despite adjustments to the company's price targets. These revisions reflect the company's ongoing operational and financial strategies, as well as market conditions.
Phillips 66 continues to actively engage in its strategies and adapt to market conditions. The company aims to generate $14 billion in EBITDA by 2025, with a target of $3.6 billion in EBITDA in the midstream segment. These recent developments underscore Phillips 66's commitment to its strategic objectives and financial performance.
InvestingPro Insights
Phillips 66's strategic move to divest its stake in Coop Mineraloel AG aligns with the company's broader financial picture, as revealed by recent InvestingPro data. With a market capitalization of $56.67 billion, Phillips 66 demonstrates its significant presence in the energy sector. The company's P/E ratio of 11.48 suggests that investors are paying a reasonable price for its earnings, which could be viewed favorably in light of the recent divestiture announcement.
InvestingPro Tips highlight that Phillips 66 has maintained consistent dividend payments, with a current dividend yield of 3.37%. This, coupled with a 9.52% dividend growth over the last twelve months, underscores the company's commitment to shareholder returns—a key priority mentioned in the divestiture strategy.
The company's revenue for the last twelve months stands at an impressive $151.85 billion, although it has experienced a slight decline of 1.85% during this period. However, the quarterly revenue growth of 8.66% as of Q2 2024 indicates a potential turnaround, which could be further bolstered by the proceeds from the CMA sale.
For investors seeking a deeper understanding of Phillips 66's financial health and future prospects, InvestingPro offers additional tips and insights. Currently, there are 17 more InvestingPro Tips available for Phillips 66, providing a comprehensive analysis to inform investment decisions.
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