Activist Elliott Investment Management last week disclosed a stake in Houston-based Phillips 66 valued at more than $2.5 billion, saying that it is pushing the oil refiner to consider operational changes to boost its stagnant stock, The Wall Street Journal reports.
Elliott is seeking to streamline Phillips 66, reportedly with the sale or a spinoff of its big midstream business. Phillips 66’s midstream business makes money transporting energy and remains more stable against commodity-price fluctuations than the refining or production sides of the oil business.
Elliott had first pushed Phillips 66 for strategic improvements in late 2023 after disclosing a roughly $1 billion investment in the company. A few months later, the two companies came to an agreement on a new board member and said they would work together to name a second director in the coming months—though they have yet to be named.
Elliott, one of Phillips 66’s top five investors, says it believes Phillips 66 hasn’t fulfilled its commitment to further board changes.
