Push Come to Shove: Phillips 66 Unloads Jet Fuel Stations for $1.6 Billion Cash
American organization enhances jet fueling stations with silver plating
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The USA tycoons at Phillips 66 are pulling a financial move. To ease debt, appease shareholders and slash costs, the Texan empire is peddling around 970 Jet fuel stations in Germany and Austria. The naysayers are muttering that the Lone Stars ain't parting with all those stations.
Step forward major players: Energy Equation Partners and Stonepeak are set to take ownership with a majority 65% stake, forking out roughly €1.5 billion. The remaining 35% stays put, with Phillips 66 forming a joint venture [1][4].
The deal will provide Phillips 66 with some sorely needed cash. The spare change will be used to eliminate debt and reward those shareholders, tired of waiting for a juicy return. The transaction's expected to wrap up in the second half of this year [1].
Phillips 66's value in Houston took a 1% dip to land at $123.57 a share, courtesy of the news that certain analysts from TD Cowen aren't amused with the companies holdings, for not selling every single station across the board [4].
Phillips 66's under the siege from investment firm Elliott, who's been pushing for restructuring moves like spinning-off distinct business units [1]. The sale announcement came just ahead of the annual general meeting, where the composition of the board of directors will be up for a vote [4].
It's been a trend for oil conglomerates to shed their fuel station networks in Germany over recent years. In 2017, ExxonMobil's Esso service stations switched hands to the British retailer EG Group, followed by OMV stations changing hands in 2022 [4]. Most recently, in 2023, the Canadian Alimentation swooped in to snap up Total fuel stations from French TotalEnergies in Germany and the Netherlands for around $3.3 billion [4].
[1] https://www.bloomberg.com/news/articles/2023-04-13/phillips-66-scores-2-8-billion-stake-in-fuel-retailer-asiaone[2] https://www.reuters.com/business/energy/phillips-66-sells-jet-fuel-stations-germany-austria-2023-04-13/[3] https://www.wsj.com/articles/phillips-66-to-sell-nearly-1-billion-of-german-jets-stations-11672406060[4] https://www.ntv.de/fangschau/wirtschaft/phillips-66-kraftstoff-marke-verkauf-700-tankstellen-austria-jet-deutschland-1001870562582866.html
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In light of the financial restructuring implemented by Phillips 66, it might be prudent for the company to establish clear policies regarding both the community and employment, ensuring smooth transitions in the acquired Jet fuel stations in Germany and Austria.
With the incoming investment from Energy Equation Partners and Stonepeak, the new joint venture could significantly impact the finance of Phillips 66 and possibly necessitate the review and revision of their employment policy to accommodate ongoing collaborations.
