Phillips 66 divests interest in Germany and Austria retail unit; shares fall

Shares of U.S. refiner Phillips 66 PSX.N down 1.3% at $123.06

Company says it will sell 65% of its stake in its German and Austrian fuel retail business to a consortium led by Energy Equation Partners and Stonepeak in deal valuing the unit at $2.8 billion

PSX expects to receive about $1.6 billion in pre-tax cash from the sale

Company plans to use proceeds from the sale to reduce debt and boost shareholder returns

PSX says it will retain 35% non-operating interest in the business

TD Cowen analysts say the partial sale missed expectations of a full sale, while PSX only received ~60% cash proceeds for 65% of the asset

"These lower cash inflows will likely outweigh the better multiple (we had 8x) given investor focus on balance sheet"- TD Cowen

PSX stock is also pressured by over a 2% dip in crude oil prices O/R

Including session's moves, shares are up 8% YTD