Phillips 66 acquires Gulf Coast crude oil, refined products terminal

Phillips 66 (PSX) says it is buying a 7.1M-barrel storage terminal near Beaumont, Tex., from Chevron (CVX) as part of its plan to build up logistics and transportation assets; financial terms are not disclosed.

The terminal - which will be the largest in the PSX portfolio - provides deepwater access and multiple interconnections with major crude oil and refined product pipelines serving 3.6M bbl/day of refining capacity; it is located ~60 miles from the nearest PSX refinery, its 239K bbl/day plant in Westlake, La.

PSX says the terminal will serve its own refineries as well as others on the Gulf coast, and has significant expansion potential.

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Comments (4)
  • Michael Fitzsimmons
    , contributor
    Comments (11851) | Send Message
    Looks like PSX is preparing for the US government to lift the crude oil export ban. What a company and what a great dividend growth story:

    5 Jun 2014, 08:28 PM Reply Like
  • charliezap
    , contributor
    Comments (2293) | Send Message
    So why doesn't it work for Chevron?
    5 Jun 2014, 09:11 PM Reply Like
  • Michael Fitzsimmons
    , contributor
    Comments (11851) | Send Message
    Maybe it did - i.e. terms weren't disclosed, but I am sure Chevron didn't give it away. It's just that PSX is in a much better position to leverage the asset. Likely a win-win for both companies.
    5 Jun 2014, 09:13 PM Reply Like
  • treyminator
    , contributor
    Comments (85) | Send Message
    Chevron - why don't you spin off your midstream business and let the new company be independent and productive? Not publishing terms sends wrong message to your sharholders on a number of different levels. PSX is going to make a lot of money with this asset. Heck, CVX may end up paying PSX good money to store its products. And since PSX does not produce oil, its clear CVX did not get any oil prospects. So, how much is PSX paying for the property?
    5 Jun 2014, 10:48 PM Reply Like
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