Phillips 66 Stock Price, News & Analysis

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.

Phillips 66 (NYSE: PSX) has announced that Chairman and CEO Mark Lashier will participate in a fireside chat at the Piper Sandler 25th Annual Energy Conference on Tuesday, March 18, 2025, at 1:50 p.m. ET.

During the presentation, Lashier will outline the company's strategic priorities across its segments, focusing on delivering shareholder value and maintaining disciplined capital allocation. The event will be accessible via webcast through the Events and Presentations section of Phillips 66's Investors website at phillips66.com/investors. A replay will be available the following day, with a transcript to be released at a later date.

Elliott Investment Management, managing funds with over $2.5B investment in Phillips 66 (PSX), has nominated seven independent candidates for the company's Board election at the 2025 Annual Meeting. The move aims to address Phillips' underperformance through portfolio simplification, operating review, and enhanced oversight.

The nominees include former executives from major energy companies: Brian Coffman (ex-CEO Motiva), Sigmund Cornelius (former CFO ConocoPhillips), Michael Heim (former COO Targa Resources), Alan Hirshberg (former EVP ConocoPhillips), Gillian Hobson (former M&A Partner), Stacy Nieuwoudt (former Energy Analyst), and John Pike (Elliott Partner).

Elliott, holding a 5.5% economic interest in Phillips 66, has also submitted a proposal for annual director elections through a corporate governance policy, addressing the previous failed attempts to declassify the Board due to the 80% supermajority threshold requirement.

Phillips 66 (NYSE: PSX) has announced its quarterly dividend declaration. The company's board of directors has declared a quarterly dividend of $1.15 per share on common stock. The dividend will be payable on March 5, 2025, to shareholders who are on record as of the close of business on February 24, 2025.

Elliott Investment Management, which holds a $2.5 billion stake in Phillips 66 (PSX), has sent a critical letter to the company's Board highlighting significant underperformance and demanding urgent changes. The letter points out that Phillips' total shareholder returns have lagged behind peers Valero Energy by 138% and Marathon Petroleum by 188% over the past decade.

Elliott's 'Streamline66' plan proposes three key initiatives: Portfolio Simplification (including sale/spinoff of Midstream business, sale of CPChem interests, and European retail operations), Operating Review (commitment to ambitious refining targets), and Enhanced Oversight (addition of new independent directors).

The letter criticizes Phillips' conglomerate structure, poor operating performance (trailing Valero by $4.75 per barrel in Q4), and damaged credibility with investors. Elliott values the Midstream business at potentially over $40 billion and advocates for its separation to unlock shareholder value.