Phillips Petroleum Co. has agreed to buy Tosco Corp. in a $7 billion stock transaction.
"We are acquiring the assets and expertise of the country's largest independent refiner and marketer and combining the complementary skills of the two companies, including Tosco's refining capabilities and convenience store expertise along with Phillips' branded wholesale skills and expertise in refining and fuel technologies," said Jim Mulva, Phillips' chairman and chief executive.
Managers said Phillips will benefit from integrating Tosco with Phillips' business in exploration and production, gas gathering and chemicals joint ventures.
Phillips will issue 0.8 Phillips shares for each Tosco share and assume approximately $2 billion in Tosco debts. The deal has been approved by both boards, subject to regulatory and shareholder approvals. It is expected to close by the end of the third quarter. Phillips' board also has authorized a $1 billion share buyback program.
Phillips expects the acquisition to produce annual pretax synergies of $250 million, improved net cash flow and a year-end 2001 debt-to-capital ratio of about 37 percent. The purchase will not affect the 2001 capital spending plans of either company.
Phillips' now runs three U.S. refineries, more than 6,000 retail and aviation outlets in 28 states and 6,000 miles of pipeline. It will acquire Tosco's eight U.S. refineries and 6,400 retail outlets in 32 states, becoming the nation's second largest refiner and its third largest marketer.
Phillips has 12,400 employees and $20.6 billion of assets, and had $21.2 billion in 2000 revenues.
Tosco has $28 billion in annualized revenues.
Phillips takes Ducks Unlimited award
Phillips Petroleum Co. has received the Diamond Legacy award from Ducks Unlimited for its commitment to wildlife conservation at its Playa Lakes Joint Venture.
Since 1990, Phillips has contributed more than $1 million to protect, enhance and restore wetlands in the playa lakes region of Texas, New Mexico, Oklahoma, Colorado and Kansas. Each year, 15 million birds migrate through the five-state region. A third spend the winter in the playa lakes area.
L.J. Mayeux, president of Ducks Unlimited, presented the organization's most prestigious award last month to Jim Mulva, Phillips' chairman and chief executive.
"It honors donors whose commitment to waterfowl and wetlands conservation reaches $1 million or more in contributions, but the value of these contributions is immeasurable," he said.
Phillips Senior Vice President Bryan Whitworth accepted another award from the PLJV management board recognizing Phillips' continuous support. The PLJV includes corporations, conservation groups and government agencies that work to conserve playa basins, saline lakes, marshes and wetlands.
Gold nugget to be raffled
The Funny River Chamber of Commerce and Community Association is raffling a gold nugget and plans to draw the winning ticket at its Valentine's Day potluck dinner. Call Warren Hoflich, chamber president, at 262-1871 to find out who is selling raffle tickets.
Credit Union 1 recognizes its Soldotna branch
Credit Union 1 recognized its Soldotna branch as the branch most dedicated to contributing to its community during the credit union's annual employee dinner. Nicki Eshleman, Soldotna branch manager, was named Branch Manager of the Year for continually exceeding her loan and operational goals.
CIRI names new chairman
Cook Inlet Region Inc. has named Terry Simpson, M.D., the new chairman of its board of directors. Simpson had been chairman of the board's finance and investment committee.
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