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Elliott Targets Phillips 66 Revamp

Elliott, Phillips

Elliott Investment Management, a prominent activist investor, has recently acquired a $1 billion stake in Phillips 66, a major player in the U.S. refining industry. This move has sparked calls for significant changes in the company’s boardroom, with Elliott criticizing the management’s handling of refining assets.

Phillips 66 stands as the third-largest independent refiner in the United States, managing eight refineries across the nation. Notably, it also holds a 50% share in two other refineries, Wood River and Borger, through a joint venture with Canada’s Cenovus Energy.

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Here’s a closer look at the refineries under Phillips 66’s umbrella, which are pivotal to the fuel supply in the U.S., especially in key regions like Oklahoma and Texas:

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  • Wood River Refinery in Roxana, Illinois, has the largest operating capacity under Phillips 66, refining 356,000 barrels per day (bpd). Established in 1917, this refinery is spread over 2,200 acres and is a crucial supplier for the Midcontinent region, producing a range of products including gasoline, diesel, aviation fuel, and more.
  • Borger Refinery in Texas, with a capacity of 149,000 bpd, is known for producing transportation fuels and other products. Established in 1926, it serves regions like West Texas, New Mexico, Colorado, and the Midcontinent.
  • Sweeny Refinery in Old Ocean, Texas, refining 265,000 bpd, mainly focuses on transportation fuels. Acquired by Phillips 66 in 1947, its products reach various parts of the U.S. and are also exported to Latin America.
  • Lake Charles Refinery in Louisiana, with a capacity of 264,000 bpd, serves the southeastern and eastern U.S. and exports to Europe and Latin America.
  • Bayway Refinery in New Jersey, refining 258,500 bpd, is strategically located on the New York Harbor, distributing products across the East Coast.
  • Ponca City Refinery in Oklahoma, built in 1918, has a capacity of 208,000 bpd. It mainly supplies the Midcontinent region.
  • Los Angeles Refineries in Carson and Wilmington, California, with a combined capacity of 139,000 bpd, produce CARB-grade gasoline and other fuels for the western U.S.
  • Ferndale Refinery in Washington and Billings Refinery in Montana have capacities of 105,000 bpd and 66,000 bpd, respectively, catering to the northwest and Rocky Mountain regions.
  • San Francisco Operations in California, prior to the closure of the Santa Maria site, had a combined capacity of 120,200 bpd. The Rodeo refinery is transitioning to renewable diesel production.

66 also operates internationally, with significant refineries in the United Kingdom and Germany.

This strategic footprint of Phillips 66, especially in key states like Texas and Oklahoma, underlines its pivotal role in the U.S. energy sector. Elliott Investment Management’s involvement and the proposed changes could signal a new direction for the company, impacting both local and national fuel supply dynamics

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