Source: Elliott wants operational changes at Phillips 66 after acquiring a stake of over $2 billion dollars

A person with knowledge of the matter said that Elliott Investment Management, an activist firm, has acquired a stake worth over $2.5 billion in Phillips 66. The company plans to make changes to its operations to increase its stock price.

The person who spoke to Elliott said that he plans to encourage Phillips 66's midstream division to be sold or spun off.

Elliott, an activist who disclosed a $1 Billion stake in Phillips 66, accepted Phillips 66's performance improvement plan to increase shareholder returns and the share price.

Phillips 66 announced that it had appointed Robert Pease as a director, a seasoned refining executive. It also said that they were looking for a second candidate. Elliott asked Phillips 66 to hire directors with experience in refining who could improve underperformance and accelerate cost-cutting.

On March 28, 2024 the company's share price closed at $163.34 per share, just days after Elliott had accepted Phillips 66’s performance improvement plan. Stock closed at $123.71 Monday.

The Wall Street Journal reported on Monday that Elliott intends to make a series of changes in order to simplify Phillips 66.

Elliott, the activist investor, believes that Phillips 66 has not yet met its commitment of further board changes.

Phillips 66 didn't immediately respond to a comment request outside of regular business hours.

Elliott has been seeking changes in several companies over the past year. Most recently, Elliott took a stake in BP's oil giant and boosted shares to their highest level since August during early trading on Monday.

Honeywell was split into three independent listed companies last week after Elliott bought a $5 billion stake.

(source: Reuters)