Phillips 66 to sell stake in Texas pipeline for $865 mln
Recasts paragraph 1 with asset sale, adds details on divestitures and CEO quote from paragraph 2 onwards
Dec 16 (Reuters) -Phillips 66 PSX.N said on Monday it would sell its 25% stake in the Gulf Coast Express pipeline in Texas to an affiliate of ArcLight Capital Partners for $865 million, setting the U.S. refiner on course to exceed its asset sale target.
Despite a fall in refining profits, Phillips 66 has opted to maintain stable investor payouts by cutting down on costs and setting a divestiture target of $3 billion through non-core asset sales.
The company had already sold fuel terminals, pipelines and a stake in a Switzerland retail joint venture to raise $2.7 billion before Monday's announcement.
"We intend to continue to optimize the portfolio and rationalize non-core assets going forward," said Phillips 66 CEO Mark Lashier.
It also forecast a reduction in refining segment expenditure to $822 million in 2025, compared with the$1.07 billion it expects tospend for the unit in 2024.
U.S. refining margins are expected to stabilize next year, according to data from the Energy Information Administration, backed by an uptick in industrial demand and refinery closures, including Phillips 66's Los Angeles area plant.
The company expects its overall expenditure to be $2.1 billion next year, compared with the $2.2 billion it had projected for 2024.
Reporting by Sourasis Bose in Bengaluru; Editing by Krishna Chandra Eluri
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