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HOUSTON - Phillips 66 (NYSE:PSX), the $54.7 billion energy giant with annual revenues exceeding $132 billion, announced Wednesday it is progressing with plans to idle operations at its Los Angeles refinery as part of the company’s site redevelopment efforts. The facility received its final waterborne crude on September 30, with final crude processing expected around October 16.
The company is implementing a phased approach to safely idle the refinery, with several process units already placed in an idle state. Remaining units will be gradually shut down through the end of 2025, according to a press release statement.
Phillips 66 disclosed it expects to record approximately $70 million in environmental expenses in its Refining segment during the third quarter related to future groundwater mitigation plans. An additional asset retirement charge of approximately $30 million will be recorded in the Midstream segment for transportation assets that will no longer be utilized following the facility closure. According to InvestingPro data, these charges represent less than 1% of the company’s quarterly EBITDA of $3.8 billion.
The company stated it remains committed to maintaining a steady fuel supply for California consumers. Phillips 66 plans to meet demand by sourcing gasoline from both within and outside its refining network.
Further details about the idling process will be provided during Phillips 66’s third-quarter 2025 earnings call scheduled for October 29.
The Los Angeles refinery idling is part of the company’s broader strategy to redevelop its real estate sites, though specific redevelopment plans for the property were not detailed in the announcement.
In other recent news, Phillips 66 announced a $2 billion notes offering with maturities in 2056, consisting of two series of junior subordinated notes, each valued at $1 billion. These notes are fully guaranteed by Phillips 66 and were issued under a subordinated indenture with U.S. Bank Trust Company as trustee. UBS has reiterated its Buy rating on Phillips 66, highlighting the company’s refining optimizations and recent acquisition of the remaining 50% ownership in WRB Refining LP for $1.4 billion in cash. Additionally, Phillips 66 has appointed Sean Maher as vice president of investor relations and chief economist, succeeding Jeff Dietert. Maher brings nearly 30 years of experience in energy finance and investment to his new role. Meanwhile, Mizuho maintained its Neutral rating on Phillips 66, focusing on the company’s "wellhead to water" strategy during a visit to the Sweeney Complex. These developments reflect Phillips 66’s strategic initiatives in refining and financial management.
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