Phillips 66 (PSX, Financial) has announced a significant strategic transaction involving its subsidiary, Phillips 66 Limited (P66L). On October 14, 2024, the company revealed that P66L has entered into a definitive agreement to sell its 49 percent non-operated equity interest in Coop Mineraloel AG to its Swiss joint venture partner. This move is set to generate substantial cash inflow for Phillips 66, amounting to 1.06 billion Swiss francs, which is approximately $1.24 billion.
The transaction includes a sales price of 1 billion Swiss francs (approximately $1.17 billion) and an assumed dividend of 60 million Swiss francs (approximately $70 million) for the financial year 2024. The dividend is expected to be paid at or prior to the closing of the transaction. It is important to note that the sales price is subject to adjustment based on the actual amount of the dividend.
This divestment aligns with Phillips 66's strategic objectives, potentially allowing the company to reallocate resources and focus on core operations. The transaction is anticipated to enhance the company's financial flexibility and strengthen its balance sheet.
Investors and stakeholders will be keenly observing how this transaction impacts Phillips 66's financial performance and strategic direction in the coming quarters. The company has not disclosed specific plans for the use of proceeds from this sale, but it is expected to provide further updates as the transaction progresses.
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