Reports related to this article:
Plant(s): View 2 related plants in PECWeb
Released September 10, 2025 | SUGAR LAND
en
Written by Jesse Broehl for Industrial Info Resources (Sugar Land, Texas)--Canada's Cenovus Energy Incorporated (Calgary, Alberta) is at the heart of more than one large deal in the energy space this week.
This week the big news is that Phillips 66 (Houston, Texas) has agreed to acquire the remaining 50% ownership interest in WRB Refining LP from subsidiaries of Cenovus for total cash consideration of $1.4 billion.
WRB Refining LP is a 50/50 joint venture between Phillips 66 and Cenovus Energy that owns the Wood River Refinery in Roxana, Illinois, and the Borger Refinery in Borger, Texas. Phillips 66 has operated both facilities since the inception of the joint venture in 2007.
Phillips 66 Refining Capacity Gain Offsets California Closures
The Wood River and Borger refineries have operational capacities of 365,000 BBL/d and 146,000 BBL/d, respectively. Accounting for the 50/50 joint venture stakes, this reflects a combined increase of 255,000 BBL/d in refining capacity added to Phillips 66's refining ownership. The transaction is expected to close during the fourth quarter of 2025.
The addition of 255,000 BBL/d of capacity more than offsets the planned closure of Phillips 66's California refineries, with 133,000 BBL/d, as covered by this IIR Energy story.
Other than Wood River, Borger, and Los Angeles, Phillips 66 owns six other refineries in the U.S. The approximate crude oil capacity aggregate total of the combined plants is 1,174,500 BBL/d and this link provides the full list of plants.
Cenovus is not completely out of the refining game. It owns three U.S. refineries besides Wood River and Borger: the Toledo and Lima refineries, both in Ohio, and the Superior Refinery in Wisconsin. These refineries are detailed in IIR Energy's database at this link.
Cenovus and Strathcona Resources Compete for MEG Energy Acquisition
While Cenovus is divesting its stake in the two refineries to Phillips 66, in a separate but not entirely unrelated deal, Cenovus is also competing to acquire smaller Canadian oil sands producer MEG Energy (Calgary).
However, it is facing increasing competition from rival bidder Strathcona Resources Limited (Calgary).
As background, Cenovus announced August 22 it would buy MEG in a cash-and-stock deal, which followed Strathcona's initial takeover bid in May. MEG's board soon expressed support for the offer, after rejecting the earlier Strathcona as inadequate.
Fast forward to early September and Strathcona is responding with a more competitive bid to acquire MEG Energy by overstepping its initial bid and aiming to outbid Cenovus. See IIR Energy story here.
Strathcona said its revised offer values MEG at C$30.86 per share, whereas a bid from rival Cenovus Energy in August would value MEG at C$27.79 per share. The new offer, which expires October 20, would give MEG an equity value of about C$7.85 billion (US$5.68 billion), according to calculations made by Reuters.
MEG said Monday its special committee and board of directors would evaluate Strathcona's offer and respond on or before September 15. Strathcona already has 14.2% of the current shares outstanding in MEG.
Why Rival Suitors for MEG Energy
Why MEG Energy is the "belle of the ball" with eagerly competing suitors is that it's widely seen as the last opportunity for large-scale expansion in Canada's oil sands, an industry dominated by giants including Suncor Energy, Canadian Natural Resources, Imperial Oil, and Cenovus.
Cenovus Divestiture of Refineries Builds Capital for Counter Bids for MEG Energy
Although it has not publicly stated as such, Cenovus Energy's plan to divest its stake in the two refineries to Phillips 66 is unlikely to be fully a coincidence with the timing of the competing offer from rival Strathcona for MEG Energy.
The divestiture of the refineries by Cenovus will free up additional capital should Cenovus continue the acquisition battle over MEG Energy with one or more competing counter offers if needed to eventually win.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
This week the big news is that Phillips 66 (Houston, Texas) has agreed to acquire the remaining 50% ownership interest in WRB Refining LP from subsidiaries of Cenovus for total cash consideration of $1.4 billion.
WRB Refining LP is a 50/50 joint venture between Phillips 66 and Cenovus Energy that owns the Wood River Refinery in Roxana, Illinois, and the Borger Refinery in Borger, Texas. Phillips 66 has operated both facilities since the inception of the joint venture in 2007.
Phillips 66 Refining Capacity Gain Offsets California Closures
The Wood River and Borger refineries have operational capacities of 365,000 BBL/d and 146,000 BBL/d, respectively. Accounting for the 50/50 joint venture stakes, this reflects a combined increase of 255,000 BBL/d in refining capacity added to Phillips 66's refining ownership. The transaction is expected to close during the fourth quarter of 2025.
The addition of 255,000 BBL/d of capacity more than offsets the planned closure of Phillips 66's California refineries, with 133,000 BBL/d, as covered by this IIR Energy story.
Other than Wood River, Borger, and Los Angeles, Phillips 66 owns six other refineries in the U.S. The approximate crude oil capacity aggregate total of the combined plants is 1,174,500 BBL/d and this link provides the full list of plants.
Cenovus is not completely out of the refining game. It owns three U.S. refineries besides Wood River and Borger: the Toledo and Lima refineries, both in Ohio, and the Superior Refinery in Wisconsin. These refineries are detailed in IIR Energy's database at this link.
Cenovus and Strathcona Resources Compete for MEG Energy Acquisition
While Cenovus is divesting its stake in the two refineries to Phillips 66, in a separate but not entirely unrelated deal, Cenovus is also competing to acquire smaller Canadian oil sands producer MEG Energy (Calgary).
However, it is facing increasing competition from rival bidder Strathcona Resources Limited (Calgary).
As background, Cenovus announced August 22 it would buy MEG in a cash-and-stock deal, which followed Strathcona's initial takeover bid in May. MEG's board soon expressed support for the offer, after rejecting the earlier Strathcona as inadequate.
Fast forward to early September and Strathcona is responding with a more competitive bid to acquire MEG Energy by overstepping its initial bid and aiming to outbid Cenovus. See IIR Energy story here.
Strathcona said its revised offer values MEG at C$30.86 per share, whereas a bid from rival Cenovus Energy in August would value MEG at C$27.79 per share. The new offer, which expires October 20, would give MEG an equity value of about C$7.85 billion (US$5.68 billion), according to calculations made by Reuters.
MEG said Monday its special committee and board of directors would evaluate Strathcona's offer and respond on or before September 15. Strathcona already has 14.2% of the current shares outstanding in MEG.
Why Rival Suitors for MEG Energy
Why MEG Energy is the "belle of the ball" with eagerly competing suitors is that it's widely seen as the last opportunity for large-scale expansion in Canada's oil sands, an industry dominated by giants including Suncor Energy, Canadian Natural Resources, Imperial Oil, and Cenovus.
Cenovus Divestiture of Refineries Builds Capital for Counter Bids for MEG Energy
Although it has not publicly stated as such, Cenovus Energy's plan to divest its stake in the two refineries to Phillips 66 is unlikely to be fully a coincidence with the timing of the competing offer from rival Strathcona for MEG Energy.
The divestiture of the refineries by Cenovus will free up additional capital should Cenovus continue the acquisition battle over MEG Energy with one or more competing counter offers if needed to eventually win.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
