WASHINGTON (dpa-AFX) - Elliott Investment Management, a major shareholder in Phillips 66 (PSX) with a $2.5 billion stake, Tuesday announced that it is pressing the company to implement significant changes to unlock value and improve performance.
In a letter to the Board of Directors, Elliott criticized Phillips 66's complex structure, weak operational efficiency, and declining investor confidence, citing a decade of underperformance compared to rivals Valero Energy and Marathon Petroleum.
The firm is urging Phillips 66 to streamline its portfolio by selling or spinning off its Midstream business, divesting its stake in CPChem, and exiting JET retail operations in Germany and Austria. Elliott also called for a renewed focus on refining profitability, arguing that the company must commit to more ambitious financial targets to close the performance gap with industry leaders.
Additionally, the letter emphasized the need for stronger corporate governance, including the appointment of independent directors and a full review of executive leadership.
Elliott warned that another year of missed targets and unfulfilled promises would be unacceptable to investors, urging the Board to take decisive action to restore credibility and unlock the company's true value.
PSX is currently trading at $128.55, up 3.92 percent or $4.84 on the New York Stock Exchange.
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