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WEST PALM BEACH, Fla. - Elliott Investment Management L.P., a significant shareholder in Phillips 66, has put forth a detailed plan aimed at revitalizing the $43.11 billion energy company. The strategy, named "Streamline 66," was outlined in an investor presentation released today, with the intent to reverse what Elliott perceives as a cycle of underperformance at Phillips 66. The company’s stock has declined nearly 28% over the past year, and according to InvestingPro analysis, the stock appears undervalued at its current price of $105.78.
The proposed plan includes a series of board enhancements, operational improvements, and portfolio simplification measures. Elliott, which manages funds that rank it among the top five shareholders of Phillips 66, believes these steps could unlock substantial value for the company’s stakeholders. InvestingPro data shows Phillips 66 maintains a FAIR Financial Health Score of 2.34, with annual revenue of $137.77 billion and an attractive dividend yield of 4.54%.
As part of its strategy, Elliott has also filed a definitive proxy statement with the Securities and Exchange Commission (SEC). This statement is to be used to solicit proxies for the election of Elliott’s slate of director candidates at Phillips 66’s 2025 annual stockholders meeting. The candidates, according to Elliott, are highly qualified and could contribute significantly to the company’s turnaround.
Elliott Investment Management, with assets of approximately $72.7 billion as of December 31, 2024, has a long history in fund management, dating back to 1977. It represents a diverse group of investors, including pension plans, sovereign wealth funds, and high net worth individuals.
The full investor presentation detailing the "Streamline 66" plan is available for download, offering insights into Elliott’s perspectives on value creation for Phillips 66. For further information on how to support Elliott’s nominees using the GOLD proxy card, shareholders can visit the dedicated website Streamline66.com.
The materials related to Elliott’s proxy solicitation, as well as other documents filed with the SEC, are accessible to the public and can be obtained at no charge on the SEC’s website or by contacting Elliott’s proxy solicitor, Okapi Partners LLC.
This news article is based on a press release statement from Elliott Investment Management L.P. and aims to provide an unbiased summary of the key facts surrounding the proposed changes at Phillips 66. Analysts maintain a positive outlook on the stock, with target prices ranging from $106 to $149. For deeper insights into Phillips 66’s valuation, financial health, and growth prospects, access the comprehensive Pro Research Report available exclusively on InvestingPro.
In other recent news, Phillips 66 reported its financial results for the first quarter of 2023, announcing earnings of $487 million, or $1.18 per share, while also disclosing an adjusted loss of $368 million, or $0.90 per share. Despite these challenges, the company returned $716 million to shareholders, highlighting its commitment to shareholder value. In a strategic move, Phillips 66 defended its current strategy against proposals from Elliott Management, emphasizing its operational achievements and shareholder returns under the leadership of CEO Mark Lashier. The company criticized Elliott’s proposals as high-risk and potentially disruptive, urging shareholders to support the company’s board nominees and proposals. Additionally, the company reported significant progress in refining operations and midstream growth, with expectations of further project completions by late 2026. Phillips 66 also announced the acquisition of EPIC NGL, expanding its capacity and enhancing its integrated strategy. Looking ahead, the company anticipates refining and chemical utilization rates to be in the mid-90% range for the second quarter of 2025, with a focus on operational excellence and disciplined growth.
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