S&P 500 falls on pressure from retail stocks, weak jobless claims
WEST PALM BEACH, Fla. - Elliott Investment Management L.P., a significant shareholder in Phillips 66, has nominated Sigmund Cornelius, a former CFO of ConocoPhillips, to the Phillips 66 board as part of its "Streamline 66" campaign. The campaign advocates for a strategic review of the company’s assets to enhance shareholder value. According to InvestingPro data, Phillips 66, currently valued at $39.55 billion, has seen its shares decline 36% over the past year, suggesting potential for value unlocking. The stock appears undervalued based on InvestingPro’s Fair Value analysis.
In the latest episode of the Streamline 66 Podcast released on Tuesday, Cornelius discussed his perspective on Phillips 66’s potential. He highlighted the need to clarify the company’s identity and strategy to the market, suggesting that its assets are currently undervalued due to a lack of understanding of Phillips 66’s business structure. This view aligns with analyst sentiment, as Wall Street targets suggest up to 67% upside potential from current levels. Cornelius pointed to his experience at ConocoPhillips, where he was part of a divestiture effort that he believes was beneficial for the company’s valuation.
Cornelius expressed his belief that Phillips 66 possesses strong assets that are not necessarily complementary and could be better leveraged separately. He emphasized the opportunity for Phillips 66 to unlock value by potentially restructuring its business segments.
Elliott, which manages funds totaling approximately $72.7 billion as of December 31, 2024, has filed a definitive proxy statement with the SEC to solicit proxies for the election of its slate of director candidates, including Cornelius, at the upcoming 2025 annual meeting of Phillips 66 shareholders.
The Streamline 66 Podcast aims to shed light on Elliott’s proposals for Phillips 66 by featuring conversations with its director nominees and industry experts. The podcast is part of Elliott’s effort to communicate its vision for Phillips 66 directly to shareholders and the broader market.
The information presented in this article is based on a press release statement from Elliott Investment Management L.P. For deeper insights into Phillips 66’s valuation metrics, financial health scores, and comprehensive analysis, explore InvestingPro, which offers exclusive access to detailed Pro Research Reports covering 1,400+ top US stocks.
In other recent news, Phillips 66 announced an increase in its quarterly dividend to $1.20 per share, marking a $0.05 rise from the previous dividend. This move underscores the company’s strategy to return over 50 percent of its net operating cash flow to shareholders. In another development, Phillips 66 is engaged in a proxy battle with Elliott Management, which has expressed investor dissatisfaction with the company’s strategic direction. Elliott has nominated new candidates for the board, advocating for structural changes to enhance shareholder value. Meanwhile, TD Cowen has adjusted its outlook on Phillips 66, lowering the price target to $127 but maintaining a Buy rating. The adjustment reflects anticipated shortfalls in first-quarter 2025 EBITDA and increased operational expenses. Phillips 66 is also campaigning for its board nominees, emphasizing their track record and addressing concerns over Elliott’s nominees. The company has returned $43 billion to shareholders through dividends and share repurchases since 2012.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.