Phillps 66 to Buy Crude Oil and Refined Products Terminal Near Beaumont, Texas

   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."

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