Phillips shareholders approve Tosco acquisition

Petroleum News Alaska

Phillips Petroleum Co. said that its shareholders voted to approve the company’s proposed acquisition of Tosco Corp. at a special meeting April 11.

A majority of the shares voted were in favor of the acquisition, which is expected to close by the end of the third quarter, pending regulatory reviews and other customary closing conditions.

Shareholders also approved amending Phillips’ charter to increase the number of authorized shares of common stock from 500 million to 1 billion.

“This approval from our shareholders is a significant milestone in transforming Phillips into a stronger major integrated oil company positioned for further growth,” said Jim Mulva, chairman and chief executive officer. “This paves the way for Phillips to become a premier competitor in the domestic refining, marketing and transportation business, and to realize the competitive advantages of being fully integrated.”

Mulva said the company expects first-quarter net operating income to be up 75-85 percent from the same period last year, due primarily to increased production as a result of the company’s second-quarter 2000 Alaska acquisition.

Total worldwide production is expected to be in the range of 820,000 barrels of oil equivalent per day for the quarter, versus 489,000 BOE per day for the first quarter of 2000.