Phillips 66 to acquire Cenovus’ remaining WRB Refining stake, boosting refining capacity, synergies, and strategic control of U.S. operations.
Phillips 66 has announced that it has entered into a definitive agreement to purchase the remaining 50% ownership stake in WRB Refining LP from Cenovus Energy Inc. subsidiaries. The transaction, valued at approximately $1.4 billion in cash, remains subject to customary purchase price adjustments.
WRB Refining LP was established as a 50/50 joint venture between Phillips 66 and Cenovus Energy in 2007. The partnership owns and operates two major refining assets in the United States—the Wood River refinery located in Roxana, Illinois, and the Borger refinery situated in Borger, Texas. Since the inception of the joint venture, Phillips 66 has been the operator of both facilities, ensuring consistent management and integration within its wider operations.
Mark Lashier, chairman and CEO of Phillips 66, emphasized that assuming full ownership of these refineries marks a significant step in strengthening the company’s integrated business model. He stated that this acquisition will not only expand Phillips 66’s refining footprint in key U.S. regions but also create operational and commercial synergies projected at approximately $50 million annually. These synergies are expected to arise from the seamless integration of the refineries into the company’s broader value chain. Furthermore, Lashier noted that complete control of the facilities will provide greater flexibility to pursue low-capital, high-return projects aimed at enhancing shareholder value over the long term.
The Wood River refinery, one of the largest in the Midwest, has a crude oil throughput capacity of 345,000 barrels per day (MBD). Meanwhile, the Borger refinery in Texas has a capacity of 149,000 barrels per day. Together, these facilities contribute a combined 494,000 barrels per day of refining capacity. Upon closing, this represents an incremental increase of around 250,000 barrels per day to Phillips 66’s existing refining network.
Both refineries are equipped to handle a diverse slate of crude oils, including heavy and medium sour grades as well as light sweet crudes. Their production is heavily weighted toward transportation fuels, such as gasoline, diesel, and jet fuel, which remain critical to meeting U.S. energy demand. The ability to process varied feedstocks positions Phillips 66 advantageously in terms of flexibility, resilience, and market responsiveness.
The acquisition also reflects Phillips 66’s broader strategy to enhance competitiveness, optimize operations, and capture additional value within its refining and marketing segment. By consolidating ownership, the company can streamline decision-making, enhance capital allocation, and improve efficiency across these strategically located facilities.
The transaction is expected to close in the fourth quarter of 2025, pending regulatory approvals and other customary closing conditions.
