PSX - Phillips 66 buys stake in new Iowa soybean plant

Phillips 66 (PSX) agrees to acquire a minority stake in Iowa soybean processing plant Shell Rock Soy Processing, as it seeks to secure feedstock for its renewable fuels projects; financial terms are not disclosed.Phillips 66 says the plant, which is pending state and local approvals, will produce ~4K bbl/day of soybean oil.The company has an agreement to purchase 100% of the plant's soybean oil production that will be used to make renewable fuels.In addition to the soybean oil, Shell Rock Soy Processing will produce more than 900K tons/year of soybean meal and hulls for livestock feed.Phillips 66 should generate strong free cash flow in 2021 and beyond, resulting in higher dividends, buybacks and lower net debt, Leo Nelissen writes in a bullish analysis published on Seeking Alpha.

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Phillips 66 buys stake in new Iowa soybean plant