A new company, Phillips 66, will emerge following ConocoPhillips’ announcement that its board of directors has given final approval for the spin-off of its downstream businesses. The resulting upstream company will keep the ConocoPhillips name and will be led by Chairman and CEO Ryan Lance. Phillips 66, the downstream company, led by Chairman and CEO Greg Garland, will also be headquartered in Houston.
In a statement, ConocoPhillips said that upon repositioning, Phillips 66 will offer “a unique approach to downstream integration, comprising segment-leading refining and marketing, midstream and chemicals businesses.”
It is believed that the repositioning into two leading energy companies will help grow the value of both companies for shareholders by unlocking the potential of their assets and employees.
The two new companies will be separated through the distribution of shares of Phillips 66 to holders of ConocoPhillips common stock. This distribution is expected to occur after market close on April 30, 2012. ConocoPhillips shareholders will receive one share of Phillips 66 common stock for every two shares of ConocoPhillips common stock held at the close of business on the record date of April 16, 2012. Fractional shares of Phillips 66 common stock will not be distributed and any fractional share of Phillips 66 common stock otherwise issuable to a ConocoPhillips shareholder will be sold in the open market on such shareholder''s behalf, and such shareholder will receive a cash payment with respect to that fractional share.
Following the distribution of Phillips 66 common stock, Phillips 66 will be an independent, publicly traded company, and ConocoPhillips will retain no ownership interest. Phillips 66 has received approval for the listing of its common stock on the New York Stock Exchange under the symbol PSX.
ConocoPhillips is an integrated energy company with interests around the world. Headquartered in Houston, the company had approximately 29,800 employees, $153 billion of assets, and $245 billion of revenues as of Dec. 31, 2011.