Chevron is interested in acquiring Phillips 66’s stake in their chemicals joint venture, which activist Elliott Investment Management is urging Phillips 66 to exit. Chevron aims to expand its petrochemicals presence if the price is right. Both companies have a right-of-first-refusal, meaning any sale must first be offered to the other partner.Chevron is interested in Phillips 66’s CPChem stake, valued at ~$15B by Elliott. No talks are ongoing, and Phillips 66’s stance is unclear. Elliott urges a sale to refocus on refining.
Elliott stated in its “Streamline66” investor presentation that the CPChem stake would likely attract strong interest from Chevron or other buyers.Chevron CEO Mike Wirth emphasized the growing demand for petrochemicals, citing rising global middle-class populations and increased use of lightweight plastics in transportation.
In a Feb. 5 Bloomberg TV interview, he confirmed Chevron’s interest in the sector.Chevron and Phillips 66 formed CPChem in 2000 by merging two mid-sized chemical firms. With profitable plants in the Middle East and along the U.S. Gulf Coast, CPChem became the world’s 32nd-largest chemical company by revenue in 2023, according to industry consultant ICIS.
CPChem is expanding with an $8.5B polymers plant in Texas and a $6B complex in Qatar, both using low-cost ethane for a competitive edge.Chevron CEO Mike Wirth told Bloomberg TV he’s prioritizing the $53B Hess acquisition but remains open to deals that fit strategically and offer shareholder value.
