Leader in energy solutions, Phillips 66 said Monday it would sell its 25% stake in the Gulf Coast Express Pipeline in Texas to an affiliate of ArcLight Capital Partners for $865 million, putting the U.S. refiner on track to exceed its $3 billion asset sale target.

Despite declining refining profits, Phillips 66 has prioritized maintaining investor payouts by cutting costs and divesting non-core assets. The company has already sold fuel terminals, pipelines, and a stake in a Swiss retail joint venture, raising $2.7 billion prior to Monday's announcement.

"We intend to continue to optimize the portfolio and rationalize non-core assets going forward," said Phillips 66 CEO Mark Lashier.

According to the announcement, the company also forecasts a reduction in refining segment spending to $822 million in 2025, compared to the $1.07 billion expected for 2024. 

U.S. refining margins are projected to stabilize next year, supported by increased industrial demand and refinery closures, including Phillips 66's Los Angeles plant, with the company expecting its overall spending to reach $2.1 billion in 2025, down from the previously projected $2.2 billion for 2024.

The latest developments follow the company’s major transactions earlier this year, after buying pipeline operator DCP Midstream back in 2022.