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Phillips 66 and Marathon Petroleum walk away after $180B merger talks
The proposed combination would have concentrated about 25% of U.S. refining capacity, but regulatory hurdles ended the $180 billion deal.
Phillips 66 and Marathon Petroleum held preliminary talks earlier this year about a potential $180 billion mega-merger, but the deal collapsed amid regulatory hurdles, according to Yahoo Finance.
Sources cited by Yahoo Finance said talks are unlikely to resume soon. The publication noted that a merger would have concentrated roughly 25% of U.S. refining capacity under one roof, drawing intense antitrust scrutiny.
With the combination off the table, Yahoo Finance pointed to each company’s standalone second-quarter performance as investors weigh their prospects in a volatile energy market.
Phillips 66 reported $3.8 billion in reported earnings, or $9.55 per share, and $3.8 billion in adjusted earnings, or $9.41 per share, with operating cash flow of $7.25 billion. The company used that cash to pay down $6.6 billion of total debt, reducing net debt to $16.5 billion, and returned $887 million to shareholders through dividends and share buybacks, while also achieving 96% refining utilization and $24.08 per barrel in realized refining margins.
Marathon Petroleum delivered $5.1 billion in net income attributable to MPC, or $17.73 per diluted share, and $8.5 billion in adjusted EBITDA, with its Refining and Marketing segment generating $6.66 billion in adjusted EBITDA. Yahoo Finance said MPC maintained 94% crude capacity utilization, generated $36.33 per barrel in refining margins, and returned more than $2.8 billion to shareholders during the quarter using a $7.8 billion cash balance.
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