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HOUSTON - Phillips 66 (NYSE:PSX), the $42.38 billion market cap energy company currently trading at $103.97, has filed an investor presentation with the SEC, emphasizing the effectiveness of its current strategy and opposing Elliott Management’s proposals ahead of the May 21, 2025, Annual Meeting of Shareholders. According to InvestingPro analysis, the company appears undervalued based on its Fair Value estimates. The presentation, which includes two videos, highlights the operational and financial achievements under President and CEO Mark Lashier since 2022, including a 67% total shareholder return and significant cost reductions in refining. Despite recent market challenges resulting in a -28.96% one-year return, the company maintains a robust 4.62% dividend yield and has achieved $137.77 billion in revenue over the last twelve months. The company also outlined its transformative strategy, which aims to further enhance shareholder value.
The presentation asserts that Phillips 66’s integrated model has yielded higher returns with lower volatility compared to peers and has generated substantial shareholder distributions through dividends and share repurchases. The company has also focused on midstream growth and chemical sector advancements, expecting additional global projects to come online by late 2026.
Phillips 66 criticizes Elliott’s approach, suggesting their proposals are high-risk and based on flawed analysis. Elliott, which is pursuing CITGO, a core competitor, has been accused of misleading shareholders and pushing a short-sighted agenda that could disrupt long-term returns. InvestingPro data shows the company maintains a FAIR financial health score of 2.3, with detailed analysis available in the comprehensive Pro Research Report, one of 1,400+ deep-dive reports available to subscribers. Phillips 66 highlights potential legal and reputational risks associated with Elliott’s demands, such as the requirement for annual director resignations, which the company states would contravene Delaware law.
The Board of Directors urges shareholders to vote for the company’s nominees and proposals, particularly the declassification of the Board, and against Elliott’s proposals. With a P/E ratio of 23.5 and generally positive analyst consensus, investors seeking deeper insights into Phillips 66’s valuation and growth potential can access extensive metrics and expert analysis through InvestingPro. Shareholders are advised to disregard any gold proxy materials from Elliott and to vote using the company’s white proxy card.
Phillips 66 emphasizes the expertise and value creation track record of its Board and nominees, contrasting them with Elliott’s nominees who are deemed to have less relevant experience and potential conflicts of interest.
This news is based on a press release statement from Phillips 66.
In other recent news, Phillips 66 reported its financial results for the first quarter of 2023, announcing earnings of $487 million, equivalent to $1.18 per share. The company also faced an adjusted loss of $368 million or $0.90 per share, highlighting ongoing market challenges. Phillips 66 returned $716 million to shareholders, including $247 million in share repurchases, reflecting its commitment to shareholder value despite the adjusted loss. The company completed significant operational improvements, such as a major spring turnaround program, which impacted volumes and margins. Additionally, Phillips 66 announced the acquisition of EPIC NGL on April 1, which is expected to expand its takeaway capacity from the Permian and provide long-term fee-based earnings growth. Analyst discussions included Wolfe Research, which engaged with Phillips 66’s CEO Mark Glaser on strategic alternatives, such as the potential separation of the midstream business. Meanwhile, JPMorgan raised questions about the company’s balance sheet and debt reduction strategies, emphasizing the importance of cash flow improvements and asset sales. These developments reflect Phillips 66’s strategic focus on operational excellence and disciplined growth amidst a challenging macroeconomic environment.
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