Petroleum Refineries Company Phillips 66 Eyes Non-Core Asset Divestiture: Report

Phillips 66 PSX reportedly disclosed that it is in active discussions for the sale of its non-core assets.

The management stated that there is no fixed timeline for such potential sales, reported Reuters.

"We don't have (a) sense of urgency... It's really going to be a function of whether someone puts a greater value on these assets than we do," said CEO Mark Lashier, as per the report.

Also, related to the refining business, the CEO said inventories continue to be low, but he sees strength going into next year.

Also Read: Phillips 66 Embraces Elliott's Turnaround Vision, Eyes 'Constructive Dialogue' for Major Stock Boost

Management expressed optimism about the long-term prospects of CP Chemical, which is its 50/50 joint venture with Chevron Corp CVX, which had been cited as a potential divestiture opportunity by some Wall Street analysts, as per the report.

Last month, PSX revealed its 2024 capital budget of $2.2 billion, including $923 million for sustaining capital and $1.3 billion for growth capital.

In November, Elliott Investment Management L.P., which manages funds with an approximately $1 billion investment in Phillips 66, sent a letter to the Board outlining a path by which Phillips 66 can remedy its underperformance and unlock significant value for its shareholders.

Related: Phillips 66 Embraces Elliott's Turnaround Vision, Eyes 'Constructive Dialogue' for Major Stock Boost

Price Action: PSX shares are trading lower by 0.50% at $134.60 premarket on the last check Friday.

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