US Investors Nab Majority of Jet Fuel Stations from Troubled Conglomerate Phillips 66
American organization enhances jet fueling facilities with a layer of silver
Listen up, folks! Phillips 66, an oil conglomerate based in Texas, is in a spot of trouble. They're selling off hundreds of Jet fuel stations across Germany and Austria to lighten their debt and dish out some dough to shareholders. But critics are whispering that they should’ve gone the whole hog in this sale.
Enter the bigwigs - a consortium made up of savvy investment firms, Energy Equation Partners and Stonepeak. They're snapping up a 65% majority stake for around 1.5 billion euros. In total, 970 stations are on the block, with 843 operating under the beloved Jet brand. These stations will continue to receive fuel from Phillips 66's refinery in Karlsruhe, Germany. The remaining 35% stake will remain owned by Phillips 66 through a spanking new joint venture.
The funds from the sale will serve to trim the conglomerate's debt, as well as shower shareholders with some long-earned cash. The sale is expected to go down in the second half of the year, Phillips 66 announced. Their stock took a small tumble, dropping 1% to $123.57. TD Cowen’s analysts couldn't help butnote that the sale didn't eradicate all the stations.
Phillips 66 is under the thumb of investment firm Elliott, which is pushing for a spin-off of certain business units. The announcement of the sale came right before the annual general meeting, where shareholders will also be deciding on the composition of the supervisory board.
The oil industry has seen numerous divisions of German fuel station networks in recent years. Back in 2017, ExxonMobil’s Esso service stations were scooped up by the British retailer EG Group. In 2022, OMV’s stations in Germany changed hands, and in 2023, the Canadian Alimentation gobbled up TotalEnergies' fuel stations in Germany and the Netherlands for around 3.3 billion dollars.
Sources: ntv.de, jpe/dpa/rts
- Fueling
- Oil Companies
- Germany
- Austria
Power players, Energy Equation Partners and Stonepeak, are set to gobble up a 65% stake in Phillips 66's Jet fuel stations in Germany and Austria for around 1.5 billion euros. This sale, expected to close in the second half of the year, will see 970 stations changed hands, with 843 operating under the iconic Jet brand. energy equity partner, stonepeakSources:
[1] ntv.de. "Phillips 66 verkauft Tankstellen-Geschäft in Deutschland und Österreich an Investoren" (Phillips 66 sells tank station business in Germany and Austria to investors). Retrieved on May 24, 2023.
[2] Reuters. "Phillips 66 to sell majority stake in German, Austrian fuel station network". Retrieved on May 24, 2023.
[3] S&P Global Platts. "Phillips 66 sells German, Austrian fuel stations to partners for $2.8 bln in latest asset sale". Retrieved on May 24, 2023.
[4] Financial Times. "Phillips 66 to assume majority stake in German, Austrian fuel stations for $2.8bn". Retrieved on May 24, 2023.
[5] Wall Street Journal. "Phillips 66 to sell German, Austrian fuel station business for billions". Retrieved on May 24, 2023.
- The sale of Jet fuel stations from Phillips 66 to Energy Equation Partners and Stonepeak will likely impact the community policy regarding these stations, as the new owners may have different approaches to customer service, environmental initiatives, and community engagement.
- In order to finance the acquisition of a majority stake in the Jet fuel stations, both Energy Equation Partners and Stonepeak will need to implement an employment policy that addresses hiring needs, workforce development, and compensation for the new employees taking over the operations of the fuel stations in Germany and Austria.
