Elliott gains seats on Phillips 66 board in shareholder vote

WEST PALM BEACH, Fla. - Elliott Investment Management L.P., a significant shareholder in Phillips 66 (market cap: $49.28 billion), announced today that Sigmund Cornelius and Michael Heim have been elected to the oil and gas company’s Board of Directors. According to InvestingPro analysis, Phillips 66 is currently trading below its Fair Value, suggesting potential upside for investors. The election took place during the company’s Annual Meeting of Shareholders, signaling a desire for change among the investor base.

The investment firm, which manages funds making it one of the top five shareholders of Phillips 66, expressed gratitude to its fellow shareholders and Phillips 66 employees for their support. Elliott’s statement emphasized that the election of their nominees represents a demand from shareholders for meaningful change within the company. The company maintains solid financial metrics with a 3.97% dividend yield and 14.29% dividend growth over the last twelve months, as reported by InvestingPro. They believe that Cornelius and Heim will collaborate with the existing board members to enhance operational execution, corporate governance, and strategic direction to unlock the full value-creation potential of Phillips 66.

Elliott, overseeing approximately $72.7 billion in assets as of December 31, 2024, has a history of active engagement with companies in which it invests. The firm plans to continue its involvement with Phillips 66, holding management and the Board accountable for improving shareholder value.

The newly elected directors are expected to work constructively with the incumbent board members. Elliott’s statement suggests a focus on improving Phillips 66’s share-price performance and setting a strategic course for the future. The company’s overall financial health score is rated as "FAIR" by InvestingPro, with particularly strong momentum metrics. Investors seeking detailed analysis can access comprehensive Pro Research Reports covering Phillips 66 and 1,400+ other top US stocks through InvestingPro.

This development comes as part of Elliott’s broader strategy to influence the companies it invests in, aiming for reforms that may lead to increased shareholder value. The investment firm’s history and asset management scale indicate its influence in the financial markets.

The information for this report is based on a press release statement from Elliott Investment Management L.P.

In other recent news, Phillips 66 has announced a definitive agreement to sell a 65% stake in its retail marketing business in Germany and Austria to a consortium led by Energy Equation Partners and Stonepeak. This transaction, expected to close in the second half of 2025, is valued at approximately €2.5 billion ($2.8 billion) and is part of the company’s strategy to optimize its portfolio. Phillips 66 plans to use the proceeds for strategic priorities, including debt reduction and shareholder returns. In related developments, Elliott Investment Management has nominated four independent directors to the Phillips 66 board, aiming to improve corporate governance and operational excellence. The nominations come ahead of the company’s Annual Meeting, where shareholders will vote on these proposals. Meanwhile, TD Cowen has raised its price target for Phillips 66 to $120, maintaining a Buy rating on the shares. The firm acknowledges the potential impact of Elliott’s campaign on the company’s strategic direction. Additionally, Phillips 66 has publicly challenged the recommendations of proxy advisors ISS and Glass Lewis, emphasizing the strength of its current board and strategy. The company continues to advocate for its integrated business model and governance practices.

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