Phillips 66 Stock Price, News & Analysis

Phillips 66 (NYSE:PSX) has filed definitive proxy materials for its upcoming Annual Meeting on May 21, 2025, urging shareholders to vote 'FOR' the company's nominees against Elliott Investment Management's proposals. Under CEO Mark Lashier's leadership since July 2022, the company has delivered 67% total shareholder returns, outperforming peers at 42%.

Key achievements include:

• Returning $13.6 billion to shareholders
• Nearly doubling Midstream segment EBITDA from 2021 levels
• Divesting $3.5 billion in assets
• Reducing Refining Adjusted Controllable Costs by 15% from 2022-2024
• Growing dividends at 15% CAGR since 2012, returning over $43 billion to shareholders

The company argues that Elliott's proposed breakup strategy is based on flawed assumptions and could risk up to $10 billion in tax leakage costs. Phillips 66 targets reaching $4.5 billion in midstream adjusted EBITDA by 2027 and aims to further reduce refining costs to $5.50/BBL by 2027.

Elliott Investment Management, holding over $2.5B in Phillips 66 (PSX), has sent a letter to shareholders and filed proxy materials ahead of the May 21, 2025 Annual Meeting. Elliott highlights PSX's significant underperformance, noting the stock has lagged behind Valero Energy and Marathon Petroleum by -138% and -188% respectively over the past decade.

Elliott proposes a three-part 'Streamline 66' plan targeting a potential stock price increase to $200+ per share through: portfolio simplification, refinery operations review, and enhanced board oversight. The firm has nominated four independent directors: Sigmund Cornelius, Michael Heim, Brian Coffman, and Stacy Nieuwoudt.

The plan includes selling or spinning off the midstream business (valued at $40B+), divesting European retail operations and CPChem joint venture, and improving refining operations efficiency. Elliott criticizes current management's missed targets and resistance to change, highlighting failed attempts at constructive engagement with the board.

Phillips 66 (NYSE:PSX) has completed its acquisition of EPIC NGL for $2.2 billion in cash. The acquisition includes two fractionators with 170 MBD capacity near Corpus Christi, Texas, 350 miles of purity distribution pipelines, and an 885-mile NGL pipeline (175 MBD) connecting Delaware, Midland and Eagle Ford basins to fractionation complexes and Phillips 66 Sweeny Hub.

The NGL pipeline is undergoing expansion from 175 MBD to 225 MBD, expected to complete in Q2. A second expansion to 350 MBD is sanctioned for completion in Q4 2026. The assets strategically connect Permian production to Gulf Coast refiners, petrochemical companies, and export markets, integrating with Phillips 66's existing infrastructure.

Phillips 66 (NYSE: PSX) has announced it will release its first-quarter 2025 financial results on Friday, April 25, 2025. The company's executive management will host a webcast at noon ET on the same day to discuss the quarterly results.

Investors can access the webcast through the Events and Presentations section of the Phillips 66 Investors website at phillips66.com/investors. A replay will be available approximately two hours after the event, with a transcript to be provided later.

Phillips 66 (NYSE: PSX) Independent Director Bob Pease has released an open letter to shareholders addressing Elliott Management's recent campaign. Pease, who joined the board in February 2024 through an agreement with Elliott Management, details how his experience in refining was initially welcomed by Elliott to improve the company's refining performance.

Despite initial concerns about joining through an activist hedge fund's endorsement, Pease reports being positively received by the board. He emphasizes that Phillips 66's integrated model has delivered synergies and less volatile cash flows. The company has committed to maintaining asset integrity while delivering competitive dividends and returning over 50% of net operating cash flow to shareholders through repurchases and dividends.

However, Pease expresses concern over Elliott's inconsistent engagement and their recent decision to run four nominees for the 2025 Annual General Meeting, effectively seeking to replace him just a year after supporting his appointment.

Phillips 66 (NYSE: PSX) has filed preliminary proxy materials for its 2025 Annual Meeting, announcing significant board nominations and governance changes. The company nominates four directors, including two new candidates: A. Nigel Hearne, a 35-year energy industry veteran with refining operations expertise, and Howard I. Ungerleider, a former President and CFO with extensive chemicals experience.

The board also nominates John E. Lowe, a strategic leader with 40+ years in midstream, refining, and chemicals, and Robert Pease, a director identified in partnership with Elliott Investment Management. The company plans to seek shareholder approval for board declassification, a proposal previously presented five times over the past decade.

The board unanimously recommends shareholders use the WHITE proxy card to vote FOR their four nominees and AGAINST Elliott's proposal regarding annual director resignations. The company emphasizes its commitment to maximizing long-term shareholder value through operational excellence and effective capital allocation across its integrated downstream business.

Elliott Investment Management, managing funds with over $2.5 billion investment in Phillips 66 (NYSE: PSX), has filed a lawsuit in Delaware Chancery Court against Phillips 66 and its Board. The legal action seeks to ensure four board seats are up for election at Phillips' 2025 Annual Meeting.

The dispute arose after Phillips announced that two directors from the 2025 class wouldn't seek reelection and the board size would be reduced from 14 to 12 directors. Elliott argues this violates company governance requiring equalized director classes. Elliott, holding a 5.7% economic interest in Phillips 66, has proposed seven director candidates and will finalize its slate for the Annual Meeting.

Elliott states it will withdraw the complaint if Phillips confirms four director seats will be up for election. The investment firm currently holds 19,900,000 shares, including 15,725,000 direct shares and 4,175,000 shares through derivative agreements.

Renegade Infrastructure has announced a new equity capital commitment from management and Energy Spectrum Partners VIII LP. The Houston-based company, established in late 2024, focuses on developing and acquiring midstream energy infrastructure across North America's Lower 48.

The company is led by Founder & CEO Drew Ward, who previously co-led Pinnacle Midstream II's successful sale to Phillips 66 in July 2024. Ward brings 17 years of industry experience, joined by Partner & CFO Jason Tanous, who served in the same role at Pinnacle Midstream I & II. J. Greg Sargent, Founder and CEO of Pinnacle Midstream franchises, will serve as Senior Advisor to Renegade's Board of Managers.

The partnership marks the second collaboration between Ward and Energy Spectrum, with Renegade pursuing acquisition opportunities, organic greenfield projects, and strategic producer partnerships.

Phillips 66 (NYSE:PSX) has issued a letter to shareholders addressing Elliott Investment Management's nomination of seven directors for the 2025 Annual Meeting. The company highlights its achievements since 2022, including total shareholder returns of 65% under CEO Mark Lashier's leadership and returning $13.6 billion to shareholders through dividends and buybacks.

Key accomplishments include reducing refining costs by $1 per barrel, capturing $500 million in DCP Midstream acquisition synergies, and completing $3 billion in non-core asset divestitures. The company maintains strong credit ratings (A3/BBB+) and has achieved $1.2 billion in cost reductions.

Phillips 66 plans to cease operations at its Los Angeles Refinery in Q4 2025 and commits to returning over 50% of net operating cash flow to shareholders during 2025-2027. The board will propose declassification at the 2025 Annual Meeting and has recently added two new independent directors, including Bob Pease, identified in partnership with Elliott.