Phillips 66 has taken a bold step to strengthen its refining footprint, announcing the acquisition of Cenovus Energy’s remaining 50% stake in WRB Refining for $1.4 billion. The deal grants Phillips 66 full ownership of the Wood River refinery in Illinois and the Borger refinery in Texas, with a combined crude processing capacity of 495,000 barrels per day (bpd).

This strategic move adds 250,000 bpd of net capacity to Phillips 66, reinforcing its ability to produce high-value transportation fuels and process a diverse slate of heavy, medium, and light crudes. CEO Mark Lashier emphasized that full ownership strengthens the company’s integrated portfolio and deepens its leadership in a critical U.S. refining region.

The acquisition follows a broader operational streamlining strategy, with Phillips 66 divesting non-core assets earlier this year after pressure from activist investor Elliott Investment Management. Analysts highlight the deal’s attractive valuation, calling it a portfolio upgrade that boosts margins.

For Cenovus, the sale simplifies its downstream operations, focusing resources on heavy oil assets. Proceeds will go toward debt reduction and share buybacks, delivering greater value to shareholders. The transaction is expected to close in late 2025.