October 2024 Issue Highlights

AMBER ENERGY TO ACQUIRE CITGO

Included in the deal are the service stations, offices, terminals, pipelines, and plants across CITGO's U.S. operations, including its refineries in Texas, Louisiana, and Illinois, and operating primarily in the Eastern half of the country.

The selection of Amber Energy was made by Robert Pincus, the Special Master appointed by the United States District Court for the District of Delaware to oversee the sale of PDV Holding, Inc.

Amber Energy's management team—led by Chief Executive Officer Gregory Goff and President Jeff Stevens—has decades of experience leading companies across the energy industry.

Goff previously served as chairman, president, and CEO of Andeavor, where he spearheaded a successful financial transformation. Prior to joining Andeavor, Goff had a nearly 30-year career with ConocoPhillips Company, where he held various leadership positions in Exploration & Production, Downstream, and Commercial.

Stevens, an industry veteran with more than 40 years of experience, serves as the President of Franklin Mountain Energy (FME), which is focused on the acquisition and development of oil and gas properties in the Permian Basin. Stevens was also founding partner and CEO of Western Refining, Inc.

Amber Energy is backed by a group of U.S. energy investors, including Elliott Investment Management L.P.

Amber officials say they are "committed to further strengthening CITGO as a leader in the refining, transportation, and marketing of products vital to the economy."

"We thank the Special Master for selecting Amber Energy as the successful bidder and recommending that the court approve Amber Energy's acquisition of CITGO's world-class assets," said Goff. "Building upon CITGO's legacy, and with a focus on the future, we will prioritize operational excellence to lay a foundation for stability, strength, and long-term success for the benefit of the company's people, customers, and communities."

The transaction is expected to close in mid-2025, pending regulatory and other approvals, including final approval by the U.S. District Court for the District of Delaware.

U.S. DOJ FILES ANTITRUST LAWSUIT AGAINST VISA

WASHINGTON, D.C. — The U.S. Department of Justice has filed a lawsuit in Federal Court against Visa Inc., accusing the credit card company of holding a credit card monopoly and "engaging in anticompetitive conduct" to keep its monopoly in the debit card payments arena.

The DOJ's lawsuit charges that Visa's practices relating to debit cards are in violation of the Sherman Antitrust Act. The government cited Visa's exclusive agreements to hinder expansion of competing networks.

The lawsuit also charges Visa blocked efforts by technology companies to enter the market in order to protect its monopoly. The suit alleges Visa blocked unaffiliated debit card networks like Star, NYCE and Shazam — which offered lower fees and better security — from competing for market share.

"This is further evidence that Visa has regularly blocked competition in the debit card market," said Merchants Payments Coalition Executive Committee member and National Association of Convenience Stores General Counsel Doug Kantor. "Visa has relentlessly flouted the law to maintain a monopoly over setting fees for transactions made with cards issued under its brand and for processing those transactions.

"While this case is focused on debit cards, it shows how we desperately need competition over credit card swipe fees, which currently face no competition at all," added Cantor.

The DOJ lawsuit follows an investigation begun in 2021 as to whether Visa had limited merchants' ability to route debit card transactions over competing networks. In 2023, the Justice Department began investigating if Visa charged higher fees to merchants who didn't use its proprietary tokenization technology for debit cards.

As part of the investigation, the DOJ reportedly interviewed hundreds of retailers, grocery stores and banks to understand Visa's agreements.

Credit and debit card swipe fees totaled a record $172 billion in 2023, according to the Nilson Report, and are most merchants' highest operating cost after labor.

A recent report by payments consulting firm CMSPI estimated the cost of credit card and debit swipe fees at $224 billion with an impact of $1,700 a year per family.

PHILLIPS 66 TO ADD CHARGING STATIONS IN WEST

HOUSTON, TX. — Phillips 66 has announced they will open charging stations at over 30 sites across California, Colorado, Oregon, Washington, and Texas by the end of 2025.

The expansion of the Phillips 66 EV charging network is being funded by $2.5 million in grants from the National Electric Vehicle Infrastructure (NEVI) Formula Program.

"Electrification is an important part of our Emerging Energy organization's approach, and we're taking a pragmatic approach to our EV charging pilot program. We want to provide a mix of affordable, reliable energy to meet all customer expectations," said Zhanna Golodryga, executive Vice President of Emerging Energy and Sustainability at Phillips 66, announcing the expansion.

Phillips 66 is currently operating EV chargers at 76-branded locations in Washington, Conoco stations in Colorado, and at the company's flagship Phillips 66 station near its Houston headquarters.