After the close of business on April 30, Phillips 66(PSX) will be distributed to shareholders of
ConocoPhillips(COP). Phillips 66 will receive refining, marketing, midstream and chemicals businesses from the integrated oil company. ConocoPhillips shareholders will receive 1 share of the new Phillips66 for every 2 shares they own.
At the same time, the new Phillips 66 will join its parent, ConocoPhillips, in the S&P 500, replacing supermarket chain SUPERVALU(SVU). In a cascading series of changes, SUPERVALU will move into the S&P MidCap 400, replacing American Greetings(AM), which will move into the S&P SmallCap 600, replacing The Standard Register(SR).
Both ConocoPhillips and Phillips 66 are already trading on a “when issued” basis. ConocoPhillips(COP-wi) closed yesterday at $53.79 and Phillips 66(PSX-wi) at $34.75, while the “regular way” ConocoPhillips closed at $71.02, meaning the when-issued shares are at a slight, $.14 premium. We expect that both companies will continue to perform well and benefit from the robust petroleum market and improving economy.
Disclosure: The author holds no position in any company mentioned
- ConocoPhillips: The Last Snapshot of Them Together (dailyfinance.com)
- The Chemical Equation of Phillips 66 (beta.fool.com)
- ConocoPhillips spinoff looks to pipes to blunt refining volatility (business.financialpost.com)