Why Oil & Gas Company Phillips 66 Shares Are Falling On Tuesday?

Phillips 66 PSX shares are trading lower on Tuesday. On Monday, The company finalized an agreement to sell its 49% stake in Coop Mineraloel AG (CMA) to its Swiss joint venture partner for 1.06 billion Swiss francs (about $1.24 billion).

The deal includes a 1 billion Swiss franc sale price (around $1.17 billion) and a dividend of 60 million Swiss francs (roughly $70 million) for FY 2024, to be paid before or at closing.

The proceeds from the sale is expected to support Phillips 66’s strategic priorities, including shareholder returns.

The transaction requires approval from the Swiss Competition Commission and is expected to close in Q1 2025.

The sale price is subject to adjustments based on the dividend amount.

“This transaction marks significant progress in delivering on our commitment of over $3 billion in divestitures,” said Mark Lashier, chairman and CEO of Phillips 66.

The company plans to report third-quarter 2024 financial results on Oct. 29.

Investors can gain exposure to the stock via VanEck Oil Refiners ETF CRAK and iShares U.S. Oil & Gas Exploration & Production ETF IEO.

Price Action: PSX shares are down 1.78% at $133.01 premarket at last check Tuesday.

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