Cenovus Energy has struck a deal to sell its 50% stake in WRB Refining LP to Phillips 66 for $1.4 billion, marking the end of a long-standing joint venture that anchored the Canadian company’s downstream strategy for nearly two decades.
The sale, announced Tuesday, hands full control of the Wood River refinery in Illinois and the Borger refinery in Texas to Phillips 66. Combined, the facilities can process 495,000 barrels per day, with Cenovus’ share previously amounting to half.
Refocusing on Controlled Assets
For Calgary-based Cenovus, the decision is part of a larger pivot. The company will now streamline its downstream portfolio around five wholly owned facilities — the Lloydminster Upgrader, Lloydminster Refinery, and three U.S. refineries in Lima, Toledo, and Superior. Together, these operations carry a 472,800-barrel daily capacity, more than half of it geared for heavy crude.
“After the sale of WRB, our downstream business will be more focused, comprised of assets we control,” said Jon McKenzie, Cenovus’ president and CEO. “The proceeds will allow us to accelerate shareholder returns in the near term.”
The proceeds are earmarked for debt reduction and share buybacks, aligning with Cenovus’ strategy of capital discipline. The company disclosed it had already repurchased nearly 19 million shares for $388 million at an average price of $20.59 apiece in the third quarter through August.
