Elliott Investment Management has acquired a $1 billion stake in Phillips 66 and is urging the company to improve its performance. Elliott believes that Phillips 66 has lost focus on its refining segment and is underperforming as a result. The activist investor is backing CEO Mark Lashier’s plan to turn the company around, but it is also pushing for two board seats in order to help achieve this goal.
Phillips 66 has welcomed Elliott’s input and is open to a constructive dialogue. The company agrees with Elliott that successful execution of its strategic priorities will drive substantial stock price performance. Phillips 66 has also announced enhancements to its strategic priorities, including raising its shareholder distributions target, monetizing non-core assets, returning operating cash flow to shareholders, increasing business transformation run-rate savings, and raising its mid-cycle adjusted EBITDA target.