Elliott Releases Third-Party Survey Results Finding That Phillips 66 Shareholders Rank the Company Last in Operations, CEO Effectiveness and Value Creation
Elliott Investment Management, a top-five shareholder in Phillips 66 (PSX), has released findings from a third-party survey of institutional investors representing over 60% of PSX's institutional shares. The survey reveals significant shareholder dissatisfaction with the company's performance and strategy.
Key findings show that Phillips 66 ranked last among peers in operational execution, CEO effectiveness, and capital allocation. Investors strongly support divesting non-core assets, particularly midstream assets, to eliminate the 'conglomerate discount' and unlock value.
Shareholders expressed frustration with management's failure to meet financial and operational targets, describing PSX as 'coasting along' and 'dragging its feet.' Elliott has proposed a three-part 'Streamline 66' plan and nominated four directors - Stacy Nieuwoudt, Brian Coffman, Sigmund Cornelius, and Michael Heim - to the Phillips 66 Board, advocating for urgent strategic changes.
Elliott Investment Management, uno dei primi cinque azionisti di Phillips 66 (PSX), ha pubblicato i risultati di un sondaggio condotto da terzi tra investitori istituzionali che rappresentano oltre il 60% delle azioni istituzionali di PSX. Il sondaggio evidenzia un forte malcontento degli azionisti riguardo alle prestazioni e alla strategia dell'azienda.
I risultati chiave mostrano che Phillips 66 si è classificata ultima tra i concorrenti per esecuzione operativa, efficacia del CEO e allocazione del capitale. Gli investitori sostengono con forza la vendita di asset non core, in particolare quelli midstream, per eliminare lo 'sconto da conglomerato' e liberare valore.
Gli azionisti hanno espresso frustrazione per il mancato raggiungimento degli obiettivi finanziari e operativi da parte del management, descrivendo PSX come un'azienda che 'va avanti senza slancio' e 'si muove a rilento'. Elliott ha proposto un piano in tre punti chiamato 'Streamline 66' e ha nominato quattro direttori - Stacy Nieuwoudt, Brian Coffman, Sigmund Cornelius e Michael Heim - al consiglio di amministrazione di Phillips 66, promuovendo cambiamenti strategici urgenti.
Elliott Investment Management, uno de los cinco principales accionistas de Phillips 66 (PSX), ha publicado los resultados de una encuesta realizada por terceros a inversores institucionales que representan más del 60% de las acciones institucionales de PSX. La encuesta revela un descontento significativo entre los accionistas respecto al desempeño y la estrategia de la empresa.
Los hallazgos clave muestran que Phillips 66 se ubicó en último lugar entre sus pares en ejecución operativa, efectividad del CEO y asignación de capital. Los inversores apoyan firmemente la desinversión en activos no esenciales, especialmente en activos midstream, para eliminar el 'descuento por conglomerado' y desbloquear valor.
Los accionistas expresaron frustración por el incumplimiento de los objetivos financieros y operativos por parte de la dirección, describiendo a PSX como una empresa que 'avanza sin impulso' y 'se mueve lentamente'. Elliott ha propuesto un plan de tres partes llamado 'Streamline 66' y ha nominado a cuatro directores - Stacy Nieuwoudt, Brian Coffman, Sigmund Cornelius y Michael Heim - para la junta directiva de Phillips 66, abogando por cambios estratégicos urgentes.
Elliott Investment Management는 Phillips 66 (PSX)의 상위 5대 주주 중 하나로, PSX 기관 주식의 60% 이상을 대표하는 기관 투자자들을 대상으로 한 제3자 설문조사 결과를 발표했습니다. 이 설문조사는 회사의 성과와 전략에 대한 주주들의 상당한 불만을 드러냈습니다.
주요 결과에 따르면 Phillips 66은 동종업체 중 운영 실행, CEO 효율성, 자본 배분 부문에서 최하위로 평가되었습니다. 투자자들은 '콩글로머릿 할인'을 해소하고 가치를 창출하기 위해 비핵심 자산, 특히 미드스트림 자산의 매각을 강력히 지지합니다.
주주들은 경영진이 재무 및 운영 목표를 달성하지 못한 데 대해 불만을 표하며 PSX를 '그저 흐름에 맡기고 있다'거나 '발걸음을 늦추고 있다'고 표현했습니다. Elliott는 3단계의 'Streamline 66' 계획을 제안하고, Stacy Nieuwoudt, Brian Coffman, Sigmund Cornelius, Michael Heim 등 4명의 이사를 Phillips 66 이사회에 지명하여 긴급한 전략적 변화를 촉구하고 있습니다.
Elliott Investment Management, l'un des cinq principaux actionnaires de Phillips 66 (PSX), a publié les résultats d'une enquête menée par un tiers auprès d'investisseurs institutionnels représentant plus de 60 % des actions institutionnelles de PSX. L'enquête révèle un mécontentement important des actionnaires concernant la performance et la stratégie de l'entreprise.
Les résultats clés montrent que Phillips 66 s'est classée dernière parmi ses pairs en matière d'exécution opérationnelle, d'efficacité du PDG et d'allocation du capital. Les investisseurs soutiennent fermement la cession d'actifs non essentiels, en particulier les actifs midstream, afin d'éliminer la « décote de conglomérat » et de libérer de la valeur.
Les actionnaires ont exprimé leur frustration face à l'incapacité de la direction à atteindre les objectifs financiers et opérationnels, décrivant PSX comme une entreprise qui « se contente de suivre » et « traîne les pieds ». Elliott a proposé un plan en trois volets appelé « Streamline 66 » et a nommé quatre administrateurs – Stacy Nieuwoudt, Brian Coffman, Sigmund Cornelius et Michael Heim – au conseil d'administration de Phillips 66, plaidant pour des changements stratégiques urgents.
Elliott Investment Management, einer der fünf größten Aktionäre von Phillips 66 (PSX), hat die Ergebnisse einer Drittanbieter-Umfrage unter institutionellen Investoren veröffentlicht, die über 60 % der institutionellen Aktien von PSX vertreten. Die Umfrage zeigt eine deutliche Unzufriedenheit der Aktionäre mit der Leistung und Strategie des Unternehmens.
Wesentliche Erkenntnisse zeigen, dass Phillips 66 unter den Wettbewerbern am schlechtesten abschneidet bei operativer Umsetzung, Effektivität des CEO und Kapitalallokation. Investoren unterstützen nachdrücklich den Verkauf von nicht zum Kerngeschäft gehörenden Vermögenswerten, insbesondere Midstream-Assets, um den „Konglomerat-Abschlag“ zu beseitigen und Wert freizusetzen.
Die Aktionäre äußerten Frustration über das Versäumnis des Managements, finanzielle und operative Ziele zu erreichen, und beschrieben PSX als ein Unternehmen, das „vor sich hin dümpelt“ und „langsam vorankommt“. Elliott hat einen dreiteiligen „Streamline 66“-Plan vorgeschlagen und vier Direktoren – Stacy Nieuwoudt, Brian Coffman, Sigmund Cornelius und Michael Heim – für den Vorstand von Phillips 66 nominiert, um dringende strategische Veränderungen zu fordern.
- Strong shareholder support for strategic changes and asset divestment
- Significant potential for value creation through restructuring
- High-quality assets and strong market position acknowledged by investors
- Clear path forward proposed through 'Streamline 66' plan
- Ranked last among peers in key performance metrics
- Management's failure to meet financial and operational targets
- Significant shareholder dissatisfaction with current strategy
- Perceived lack of focus on creating shareholder value
Third-Party Findings Are Based on Feedback From Phillips 66 Investors Representing More Than
Shareholders Do Not Believe the Company's Strategy or Conglomerate Structure Make Sense
Key findings from the survey include:
- Phillips 66 ranked last among its peers2 on operational execution, CEO effectiveness, capital-allocation strategy and overall delivery against its value-creation agenda.
- Investors want Phillips 66 to prioritize divesting its non-core assets to eliminate its "conglomerate" discount and unlock value.
- Notably, they are highly supportive of evaluating a sale of the midstream assets.
- Support for divesting Phillips 66's other non-core businesses was also high.
- Notably, they are highly supportive of evaluating a sale of the midstream assets.
- Shareholders perceive Phillips 66 as "coasting along", which has led to significant undervaluation and investor uncertainty.
- Phillips 66's strategy and portfolio do not make sense to investors, who want the Company to unlock trapped value. However, many see Phillips 66 as "dragging its feet" and not bringing the level of speed or execution quality required.
- In contrast, investors are supportive of Elliott's involvement and see the firm as "holding management accountable."
- Phillips 66's strategy and portfolio do not make sense to investors, who want the Company to unlock trapped value. However, many see Phillips 66 as "dragging its feet" and not bringing the level of speed or execution quality required.
Shareholders made clear they are frustrated with Phillips 66's underperformance and management's failure to hit its financial and operational targets, despite repeatedly claiming success and that the strategy is working:
- "In their own words, they do have a clearly defined strategic direction, and you can talk the talk, but you might not walk the walk…They are clearly not walking the walk. At all." – Phillips 66 Shareholder A
- "Looking at [Phillips 66's] strategic direction, significant divestment and cleaning up of operations would be certainly beneficial. Getting back into what they do best, which is integrated refining." – Phillips 66 Shareholder B
- "What can they do now that will help them longer-term? In terms of execution, I want them to have a much more independent board…I want them to continue divesting. I don't want them to have a conglomerate discount…They just have too many unrelated businesses, and I think that's just not good for them longer-term." – Phillips 66 Shareholder C
Elliott has publicly released its three-part "Streamline 66" plan and detailed how this could achieve significant share price upside for Phillips 66. Unfortunately, shareholders doubt the current Board and management team's appetite or ability to do what needs to be done:
- "The biggest issue for Phillips, in my opinion, is that they are not at all focused on creating shareholder value. They are focused on status quo." – Phillips 66 Shareholder D
- "Look at the performance. They have issue after issue after issue. It's not a question of the management is the problem…Look, they have a management problem. I don't know any other investor who doesn't think that is true." – Phillips 66 Shareholder E
In spite of the myriad issues, investors still recognize the substantial potential of Phillips 66 and the quality of its assets and portfolio:
- "There is definitely a lot of upside. Their market position is pretty good. Despite financial challenges that they have been facing, they remain a very key player…So as long as they handle their strategic directions and improve their cost performance, they should do well." – Phillips 66 Shareholder F
Notably, this investor view of Phillips 66's potential seems at odds with views expressed by the Company's own management, which has talked down the value of the stock and repeatedly defended a broken flawed status quo.
Former Citadel energy analyst and independent GOLD proxy card nominee Stacy Nieuwoudt summed it up on a recent episode of the "Streamline 66" Podcast:
- "Investors have been overwhelmingly supportive of this campaign…I've been covering the [energy industry] for over 20 years, I've attended thousands of meetings with management teams. I've never had a management team suggest to me that their stock was fully valued. That just inherently highlights the disconnect between the investor mindset and the management."
Shareholders can act today by voting on the GOLD proxy card to elect all four of Elliott's nominees to the Phillips 66 Board of Directors. Stacy Nieuwoudt, Brian Coffman, Sigmund Cornelius and Michael Heim would bring urgently needed expertise, new perspectives, and a willingness to enact bold changes to the Company's boardroom.
For more information, including how to vote on Elliott's GOLD proxy card, please visit Streamline66.com.
About Elliott
Elliott Investment Management L.P. (together with its affiliates, "Elliott") manages approximately
1 Third-party survey conducted as of March 2025. Percentage based on analysis performed by Elliott's proxy solicitation firm, equivalent to
2 Peers utilized for the survey were Valero Energy Corporation and Marathon Petroleum Corporation.
Note: Emphasis added in quotations.
Media Contact:
Casey Friedman
Elliott Investment Management L.P.
(212) 478-1780
cFriedman@elliottmgmt.com
Investor Contact:
Bruce Goldfarb / Pat McHugh
Okapi Partners LLC
(877) 629-6357
(212) 297-0720
info@okapipartners.com
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SOURCE Elliott Investment Management L.P.
FAQ
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