A Legacy Partnership Ends
The WRB joint venture traces back to 2007, when Cenovus’ predecessor EnCana entered into a 50-50 partnership with ConocoPhillips, Phillips 66’s parent company. The deal secured U.S. refining capacity for Canadian oil sands output, giving Cenovus a vital outlet to the Midwest and Gulf Coast markets.
But the energy landscape has shifted. With Phillips 66 under activist scrutiny from Elliott Management, the timing of Cenovus’ exit is notable. Elliott, which has built a multibillion-dollar stake in the refiner, has pressed for operational streamlining and boardroom changes. Phillips 66 last year added former Cenovus executive Robert Pease to its board under Elliott’s pressure campaign.
Phillips 66 Tightens Its Grip
For Phillips 66, the acquisition consolidates ownership of two strategic U.S. refineries, enhancing its already formidable refining footprint.
“With full ownership of the Wood River and Borger refineries, we are strengthening our integrated business,” said Mark Lashier, Phillips 66 chair and CEO. “This deal should deliver about $50 million annually in synergies and unlock opportunities for low-capital, high-return projects that drive long-term value.”
The transaction, advised by Sidley Austin LLP partners Atman Shukla and Cliff Vrielink, is expected to close by the end of the third quarter, pending regulatory approvals.
