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HOUSTON - Phillips 66 (NYSE:PSX), the $50.8 billion market cap energy company currently trading at $124.70, has reached a definitive agreement to sell a 65% interest in its retail marketing business in Germany and Austria, including JET-branded sites, to a consortium led by Energy Equation Partners and Stonepeak. The deal, announced Today, will see Phillips 66 retain a 35% stake through a new joint venture. According to InvestingPro analysis, the company maintains a solid financial health score of 2.3 (FAIR).
The transaction, expected to close in the second half of 2025, is contingent on regulatory approvals and customary conditions. It is part of Phillips 66’s strategy to optimize its portfolio and aims to enhance shareholder value by monetizing a non-core asset while maintaining a share in potential future growth. The company’s strong dividend yield of 3.85% and healthy free cash flow of $2.96 billion demonstrate its commitment to shareholder returns.
Phillips 66’s chairman and CEO, Mark Lashier, stated that the joint venture allows the company to benefit from the business’s future growth while monetizing the asset. The enterprise value of the Germany and Austria retail marketing business is approximately €2.5 billion ($2.8 billion), with an implied Enterprise Value/EBITDA multiple of 9.1x based on the projected 2025 EBITDA.
Phillips 66 expects to receive pre-tax cash proceeds of about €1.5 billion ($1.6 billion), with the funds earmarked for strategic priorities such as debt reduction and shareholder returns. Additionally, Phillips 66 will maintain a supply relationship with the business through a multi-year agreement involving the MiRO Refinery.
The Germany and Austria retail business encompasses 970 sites, with 843 of them operating under the JET brand. This move by Phillips 66 is in line with the company’s broader intent to pivot towards a lower-carbon future while maintaining its role as a significant downstream energy provider.
The information in this article is based on a press release statement from Phillips 66. For deeper insights into Phillips 66’s financial health, valuation metrics, and growth potential, visit InvestingPro, where you’ll find comprehensive analysis and the detailed Pro Research Report, one of 1,400+ available for top US stocks.
In other recent news, Phillips 66 has been the focus of significant investor attention due to its upcoming annual general meeting and the activities of activist investor Elliott Management. Analyst Jason Gabelman of TD Cowen has raised the company’s stock target to $120, maintaining a Buy rating, amidst ongoing discussions about corporate governance and capital allocation. Elliott Management is advocating for changes in the company’s board structure and has nominated four independent candidates, with support from proxy advisory firms Glass Lewis and Institutional Shareholder Services for some of their nominees. Phillips 66 has publicly countered these recommendations, emphasizing its belief in the strength of its current board and strategy. The company has defended its integrated business model, arguing against Elliott’s proposal to separate its Midstream operations and sell CPChem. Phillips 66’s leadership under CEO Mark Lashier has been highlighted for delivering a 67% total shareholder return, which surpasses industry benchmarks. The company has also focused on improving refining performance and governance practices, adding five new independent directors since 2020. As the annual meeting approaches, both Phillips 66 and Elliott Management are actively engaging shareholders to support their respective proposals.
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