Elliott Secures $2.5 Billion Stake in Phillips 66, Advocates Midstream Sale

Elliott Investment Management has significantly increased its stake in Phillips 66 to over $2.5 billion, positioning itself as one of the company's top investors. The activist investor is advocating for operational changes, including the potential sale or spin-off of Phillips 66's midstream business, citing the need for urgent reforms after previous efforts to enhance performance have failed to yield results. Elliott aims to streamline the company's portfolio, improve operational performance, and enhance board oversight with new independent directors. Phillips 66's stock has been volatile, recently experiencing a notable rise, but analysts express mixed expectations regarding its future performance. The company has lagged behind industry peers in shareholder returns, prompting Elliott's push for ambitious refining targets. This move follows a prior performance improvement agreement established after Elliott's initial $1 billion investment in the firm.