Activist Investor Elliott Builds $2.5 Billion Stake In Phillips 66, Pressures For Midstream Spinoff: Report

Activist investor Elliott Investment Management has amassed a $2.5 billion stake in Phillips 66 PSX, significantly expanding its position in the U.S. oil refiner and intensifying pressure for operational restructuring, particularly regarding its midstream business.

Elliott's latest investment, which places it among Phillips 66’s top five shareholders, comes less than a year after its initial $1 billion stake secured a board seat for refining veteran Robert Pease, Reuters reported, citing sources.

Despite Phillips 66’s commitment to performance improvements in March 2023, its stock has declined from $163.34 to $123.71, underscoring Elliott’s concerns about unfulfilled promises and operational inefficiencies.

The move aligns with Elliott’s recent pattern of industrial sector activism, including its stake in BP Plc and its role in Honeywell‘s three-way split. According to the report, Elliott aims to push for the sale or spinoff of Phillips 66’s midstream operations to streamline the company’s structure and enhance shareholder value.

Phillips 66 did not immediately respond to Benzinga's request for comment.

Price Action: Phillips 66 shock gained 2.83% on Monday to close at $123.71. Despite the recent uptick, the stock has declined 14.36% over the past year, according to data from Benzinga Pro.

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