- Elliott criticizes Phillips 66's (PSX, Financial) strategy of midstream expansion through acquisitions.
- The podcast episode emphasizes the lack of visible synergies in financial performance.
- Elliott stresses long-term shareholder benefits rather than short-term fixes.
Elliott Investment Management, a prominent shareholder in Phillips 66 (PSX), has released a bonus episode of its "Streamline 66" podcast series. The episode features a conversation between Elliott Partner John Pike and Managing Director Geoff Sorbello, highlighting concerns over Phillips 66's current business strategy.
In the discussion, Pike criticizes Phillips 66's approach of expanding its midstream segment through acquisitions. He argues that a "low multiple business cannot buy its way out of a problem by buying high multiple businesses," stressing that the claimed synergies between business segments remain unseen in financial statements and stock performance. Pike asserts that genuinely successful companies manifest their synergies in their financial results without the need for promotional materials.
Elliott's discourse further emphasizes the need for sustainable, long-term improvements instead of short-term, superficial fixes. Pike states, "We only win if all shareholders win," reinforcing Elliott's commitment to multi-year solutions that ensure comprehensive shareholder benefits.
Listeners can access the podcast through Streamline66.com/podcast, as well as on platforms like Apple Podcasts, Spotify, and YouTube (@Streamline66). For more information on Elliott's ongoing "Streamline 66" campaign and their board proxy solicitation, visit Streamline66.com.
