By Josh Beckerman
Phillips 66 (PSX) agreed to buy a Texas crude oil and refined
products terminal from Chevron Corp. (CVX) as part of the refining
company's midstream growth strategy.
Financial terms weren't disclosed.
Phillips 66 said the terminal, near Beaumont, Texas, has the
capacity to store 4.7 million barrels of crude oil and 2.4 million
barrels of refined products. It will be the company's largest
terminal.
The company's president, Tim Taylor, said in a statement that
"given our expectations for increasing volumes of North American
crude oil movements into the Gulf Coast region and growth in
refined product exports, the Beaumont Terminal is well positioned
to serve this growing market while providing significant expansion
potential."
Last month, Standard & Poor's Ratings Services revised its
outlook on Phillips 66 to positive from stable and affirmed its
corporate credit rating of BBB.
S&P said "we base the outlook revision on Phillips 66 on its
continued strong operating performance and diversification into
midstream energy and chemicals." The ratings firm said the
company's midstream and chemicals businesses "provide more
diversification than most peers in the refining sector."
Write to Josh Beckerman at josh.beckerman@wsj.com
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