- Elliott Investment Management is actively pursuing changes in Phillips 66 (PSX, Financial) with a focus on unlocking shareholder value.
- Director nominee Sigmund Cornelius highlights the potential undervaluation of Phillips 66's assets due to the company's complex structure.
- Proposed changes include the election of four new board members at the 2025 annual meeting.
Elliott Investment Management, a significant shareholder in Phillips 66 (PSX), has unveiled the fourth episode of its podcast series, "Streamline 66". This episode showcases a conversation with director nominee Sigmund Cornelius, who previously served as CFO at ConocoPhillips. Cornelius discusses the potential undervaluation of Phillips 66's diverse asset portfolio, attributing this to the company's complex structural identity as both a refining/marketing and midstream business, along with its investment in CP Chem.
Drawing from his successful experience at ConocoPhillips, where he was instrumental in implementing a division that enhanced shareholder value, Cornelius suggests that Phillips 66's assets might yield better returns if restructured. He remarks that these assets "don't necessarily belong together" and hints at strategic opportunities that could arise from a more focused corporate structure.
This podcast release is part of Elliott's broader campaign to secure four board seats at Phillips 66's 2025 annual meeting, aiming to drive changes that could unlock significant shareholder value. The full podcast episode is available on platforms like Apple, Spotify, and YouTube, providing insights into Elliott's vision for Phillips 66 and details on their proxy solicitation efforts.
Elliott's move comes at a time when the market struggles to evaluate Phillips 66 due to its mixed business operations, which may lead to suboptimal capital allocations. The investment firm believes restructuring could provide clarity and potentially enhance the company's overall valuation.
