- Phillips 66 (PSX, Financial) showcases a transformative strategy with significant returns and operational improvements.
- The company publicizes its strong board composition and warns shareholders against Elliott Management's proposals.
- Phillips 66's board urges shareholders to support its nominees and reject Elliott's high-risk strategies.
Phillips 66 (PSX) has submitted an investor presentation to the SEC, reinforcing its robust operational and financial track record and future-focused strategy. This move comes ahead of the Annual Meeting of Shareholders scheduled for May 21, 2025. The company emphasizes the success of its transformative strategy under CEO Mark Lashier, with an impressive 67% total shareholder return since 2022, outperforming the S&P 500 Energy Index by 45%.
The presentation highlights several strategic initiatives, including returning over $14 billion to shareholders, divesting $3.5 billion in non-core assets, and advancing its Midstream business through key acquisitions. Notably, Phillips 66 has reduced Refining Adjusted Controllable Costs from $6.98/bbl in 2022 to $5.90/bbl in 2024 and aims to achieve $5.50/bbl by 2027.
Phillips 66 also underscores the value of its board, featuring nominees A. Nigel Hearne and Howard Ungerleider, whose skills align with the company's long-term goals. The company criticizes Elliott Management's proposals, labeling them as misleading and potentially threatening to shareholder value. Elliott's calls for restructuring and governance changes are portrayed as high-risk and unsupported by factual analysis.
Phillips 66's integrated model is cited as a key to delivering superior, stable returns compared to its peers. The company advocates for shareholders to vote using the WHITE proxy card, supporting its board's nominees and governance proposals, while opposing Elliott's agenda. Shareholders are advised to discard any GOLD proxy cards from Elliott to maintain their investment security.
