Market Overview

Phillips 66 To Repurchase 35 Million Shares From Berkshire Hathaway


To enhance shareholders' value, Phillips 66 PSX will repurchase its common stock from a wholly-owned subsidiary of Berkshire Hathaway Inc. BRK.A.

The company will buy back 35 million shares for $93.725 per share. The repurchase is valued at $3.3 billion and is expected to close on Feb 14.

On completion, Phillips 66 will have outstanding shares of 466.5 million, of which, Berkshire Hathaway will have an equity ownership interest in 45.7 million shares.

Warren E. Buffett, Berkshire Hathaway Chairman and CEO, cited the reason for sale as none other than its desire to get rid of the regulatory requirements that come with ownership levels above 10%. Buffett is optimistic about the company's diverse downstream portfolio and strong management.

Per Phillips 66, the transaction is beneficial to all shareholders. The repurchase is immediately accretive to earnings and is a positive for valuation. The company is committed to grow Midstream and Chemicals businesses and boost returns from Refining and Marketing.

The company is a leading player in each of operations like refining, chemicals and midstream in terms of size, efficiency and strengths. Phillips 66 is on track to enhance its potential in every business segment by streamlining its portfolio of assets and investing in growth.

The company has an impressive capital deployment record. The company regularly rewards shareholders with increased dividends and share repurchases. This indicates its financial strength and steady returns from operating units.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: contributor contributorsNews Buybacks


Related Articles (BRK.A + BRK.B)

View Comments and Join the Discussion!
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at