Phillips 66 to Acquire Cenovus Stake in WRB Refining, Securing Full Ownership of Key U.S. Refineries
Photo Credit: Phillips66co
Houston | 10 September 2025 — Phillips 66 has entered into a definitive agreement to acquire Cenovus Energy’s remaining 50% stake in WRB Refining LP for $1.4 billion. The transaction, expected to close in late 2025 pending regulatory approvals, will give Phillips 66 full ownership of the Wood River Refinery in Illinois and the Borger Refinery in Texas, two cornerstone assets in its U.S. refining portfolio.
The deal marks a significant step in the company’s strategy to optimize and fully integrate its downstream operations. By consolidating WRB Refining under its control, Phillips 66 strengthens its ability to coordinate crude supply, improve operational efficiency, and align refining output with its growing marketing and midstream businesses. In a letter to shareholders, the company emphasized that the acquisition supports its long-term vision of delivering consistent value, capital discipline, and reliable cash returns.
The Wood River and Borger facilities collectively process more than 470,000 barrels of crude oil per day, making them critical components of the U.S. fuels system. Their geographic positioning—near both Midcontinent crude supplies and major product markets—adds further strategic significance. For Phillips 66, full ownership unlocks greater flexibility to invest in modernization projects, expand integration with midstream infrastructure, and respond to evolving market dynamics.
The move also reflects a broader industry trend toward consolidation in refining and petrochemicals, as companies seek to capture efficiencies and secure competitive scale in a challenging margin environment. By assuming full control of WRB, Phillips 66 joins peers that are reshaping portfolios to prioritize integrated value chains and long-term resilience.
For Cenovus, the divestment represents a continued streamlining of its downstream footprint, allowing the Canadian company to focus more squarely on upstream production and domestic refining assets.
Looking ahead, Phillips 66’s acquisition of WRB’s remaining interest positions the company to enhance refining profitability, strengthen supply reliability, and deepen integration across its value chain. The transaction underscores its confidence in the long-term role of U.S. refining, even as the global energy system evolves toward diversification and decarbonization.
