Elliott Investment Management has amassed a substantial stake of over $2.5 billion in Phillips 66 and is urging the oil refiner to sell or spin off its midstream business, sources familiar with the matter revealed. The activist investment firm, led by billionaire Paul Singer, plans to push for a series of changes aimed at simplifying Phillips 66’s operations. The firm also believes the company has yet to follow through on its commitment to make further changes to its board, the sources, who wished to remain anonymous, said.
Elliott first disclosed its investment in Phillips 66 in 2023, when it revealed a $1 billion stake and expressed confidence that the refiner could boost its stock price by 75% by focusing on refining and adopting other strategic measures.
In the year since, Elliott appears to have gained significant influence within the company. In an effort to align with Elliott’s goals, Phillips 66 appointed Robert Pease, a former president of Shell Trading Co., to its board to bolster refining expertise. Additionally, the refiner has been actively pursuing a multi-year cost-cutting strategy that includes $3 billion in asset sales, a move under pressure from Elliott. To date, Phillips 66 has sold approximately $2.7 billion in assets since 2022.
Related topic:
Arm Holdings Surpasses Q3 Expectations, Offers In-Line Guidance for Q4
Is It Legal To Provide Funds For Stock Index Futures Trading?
