Phillips 66 shareholders elect new directors in board shakeu

HOUSTON - Shareholders of Phillips 66 (NYSE:PSX), a major energy company with a market capitalization of $45.8 billion and year-to-date stock performance of +8.11%, have elected two new directors from the company’s slate and two nominated by Elliott Management at the annual meeting held on Tuesday. According to InvestingPro analysis, the company appears to be trading below its Fair Value, suggesting potential upside opportunity. Robert W. Pease and Nigel Hearne were chosen from Phillips 66’s nominees, while Sigmund L. Cornelius and Michael A. Heim were Elliott’s successful candidates.

The preliminary results, announced today, also revealed that John E. Lowe and Howard Ungerleider, current Phillips 66 nominees, were not re-elected. Mark Lashier, Chairman and CEO of Phillips 66, welcomed the new directors and expressed gratitude to shareholders for their participation and deliberation during the election process. He emphasized the board’s commitment to creating long-term value for shareholders and acknowledged the outgoing directors for their service.

In addition, a management proposal to declassify the board did not receive the necessary support, falling short of the required 80% affirmative vote. Despite this, the board remains dedicated to implementing annual elections, a preference indicated by shareholders who overwhelmingly rejected Elliott Management’s proposal for mandatory annual director resignations.

The official results will be confirmed once the independent Inspector of Election finalizes and certifies the vote count. These results will be disclosed in a Form 8-K to be filed with the Securities and Exchange Commission.

Phillips 66, headquartered in Houston, operates in various sectors including Midstream, Chemicals, Refining, Marketing and Specialties, and Renewable Fuels. The company strives to deliver energy while advancing a lower-carbon future. With annual revenue of $137.77 billion and an attractive dividend yield of 3.97%, Phillips 66 maintains a "Fair" financial health score according to InvestingPro’s comprehensive analysis. For detailed insights and additional ProTips about Phillips 66’s performance and outlook, investors can access the full Pro Research Report, which provides in-depth analysis of this and 1,400+ other top US stocks.

The information in this article is based on a press release statement from Phillips 66.

In other recent news, Phillips 66 has announced a significant transaction by agreeing to sell a 65% interest in its retail marketing business in Germany and Austria to a consortium led by Energy Equation Partners and Stonepeak. This move is part of the company’s strategy to optimize its portfolio and enhance shareholder value. Phillips 66 will retain a 35% stake in the business through a new joint venture, allowing it to benefit from future growth while monetizing a non-core asset. Additionally, TD Cowen analyst Jason Gabelman has raised the price target for Phillips 66 to $120, maintaining a Buy rating on the shares. This comes as the company prepares for its upcoming annual general meeting, where activist investor Elliott Management is pushing for changes in corporate governance and capital allocation. Elliott Management has successfully gained two seats on the Phillips 66 Board of Directors, signaling a demand for change among shareholders. The firm has also proposed four new board nominees, emphasizing the need for improved operational excellence and corporate governance. As Phillips 66 navigates these developments, its strategic decisions and shareholder engagement remain focal points for investors.

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