Phillips 66 (PSX) will acquire the remaining 50% stake in WRB Refining from Cenovus Energy (CVE) for $1.4B, giving it full ownership of the Wood River (345 Mb/d capacity) and Borger (149 Mb/d capacity) refineries.
The deal with CVE, announced Sept. 9, follows the May election of Elliott Investment Management–backed directors Sigmund Cornelius and Michael Heim to PSX’s board. Elliott has invested over $2.5B in PSX and is pushing the company to sharpen its focus on downstream operations. Elliot argues the midstream segment masks the value of the refining assets.
According to PSX CEO Mark Lashier, the acquisition will generate ~$50MM per year in operational and commercial synergies by fully integrating the assets into PSX’s value chain. The companies expect to close the transaction in 4Q25.
Located northeast of St. Louis, Wood River is PSX’s largest US refinery and a key Midwest asset. It is partially supplied by Enbridge’s (ENB) Express-Platte system, which is set to expand by 30 Mb/d in 2026. According to East Daley Analytics’ Crude Hub Model, the Platte line has run 74% utilized in 2025, with throughput set to rise to 89% post-expansion. MPLX’s Ozark Pipeline out of Cushing also supplies Wood River. The Ozark line has averaged high-90% throughput with a capacity of 360 Mb/d. Wood River produces gasoline, diesel, aviation fuels, petrochemical feedstocks, asphalt and petroleum coke.
Borger in northwest Texas anchors PSX’s position near the Permian Basin. The refinery connects south via PSX gathering lines that feed into Gray Oak Pipeline (6.5% PSX stake) to the Gulf Coast and north to Cushing via Navigator’s Borger Express pipeline. Throughput to the refinery has averaged 119 Mb/d over the past five years, and East Daley projects volumes to average 132 Mb/d in 2026. The Borger refinery produces propane, butane, gasoline, diesel, aviation fuels and petrochemical feedstocks.
The WRB Refining acquisition consolidates PSX’s ownership in two strategically located refineries: Borger expands its inland Texas footprint beyond Gulf Coast plants, while Wood River strengthens its Midwest presence at a major crude hub. This move comes amid rising refining margins and aligns with Elliott’s push for a leaner, downstream-focused PSX. – Alec Gravelle Tickers: CVE, ENB, MPLX, PSX.
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