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HOUSTON - Independent Director Bob Pease of Phillips 66 (NYSE: PSX), the $50.85 billion market cap downstream energy giant, has publicly addressed shareholders regarding his position on the company’s board amid a campaign for change initiated by Elliott Management. Pease, who joined the board in February 2024 following an agreement with the activist hedge fund, is now under pressure from the same entity that endorsed his appointment. According to InvestingPro analysis, the company maintains a FAIR financial health score of 2.3 out of 3, suggesting stable operational performance.
In a recent letter, Pease shared his perspective on the board’s commitment to shareholder value and operational performance, particularly in refining. He highlighted the board’s focus on maintaining asset integrity, providing a competitive dividend (currently yielding 3.69%), and returning over 50% of net operating cash flow to shareholders through repurchases and dividends. The company has demonstrated strong dividend growth of 9.52% over the last twelve months, while generating $143.15 billion in revenue.
Pease expressed surprise at Elliott Management’s recent actions, which include running four nominees for election at the upcoming 2025 Annual General Meeting and targeting him for replacement. The reasons behind Elliott’s change of stance remain unclear to Pease.
Phillips 66, a leading downstream energy provider, operates in Midstream, Chemicals, Refining, Marketing and Specialties, and Renewable Fuels. The company emphasizes safety, reliability, and a lower-carbon future in its operations.
The letter comes ahead of the 2025 Annual General Meeting, where shareholders will vote on board nominations and other matters. Phillips 66 has filed a preliminary proxy statement with the U.S. Securities and Exchange Commission and plans to provide a definitive proxy statement to shareholders.
This news is based on a press release statement and reflects the ongoing dialogue between Phillips 66 board members and shareholders as the company navigates its strategic direction and governance. According to InvestingPro data, analysts maintain a moderate buy consensus with price targets ranging from $124.43 to $162 per share, while the stock has gained 10.46% year-to-date. For deeper insights into Phillips 66’s valuation and performance metrics, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, Phillips 66 has filed preliminary proxy materials with the U.S. Securities and Exchange Commission for its 2025 Annual Meeting of Shareholders. The company has nominated two new board candidates, A. Nigel Hearne and Howard I. Ungerleider, while also renominating John E. Lowe and Robert "Bob" W. Pease. Additionally, Phillips 66 plans to seek shareholder approval to declassify its board, a proposal aimed at enhancing accountability. Meanwhile, Elliott Investment Management, holding over $2.5 billion in Phillips 66, has taken legal action against the company, demanding that four board seats be contested at the upcoming meeting. Elliott has also nominated seven directors for election, emphasizing their qualifications in refining and corporate governance. The investment firm argues that changes are necessary for Phillips 66 to realize its full potential. Phillips 66 has responded by highlighting its strategic progress and achievements in shareholder value creation, including substantial returns through repurchases and dividends. The ongoing tensions between Phillips 66 and Elliott underscore the active role investors are playing in shaping the company’s governance and future direction.
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