Elliott’s Letter to Phillips 66 Shareholders
Dear Phillips 66 Shareholder,
We are writing to you on behalf of funds managed by Elliott Investment Management L.P. (“Elliott”). Like you, we are investors in Phillips 66.
We believe Phillips 66’s stock price is deeply undervalued today. We have a clear plan (“Streamline 66”) to ensure Phillips 66 realizes its full potential – but we need your help to put it into action.
Next week, you’ll have the opportunity to vote for four highly-qualified candidates for Phillips 66’s Board and send a powerful message to the Company that it must pursue the Streamline 66 plan – which could boost the stock price 65% or more.
Don’t just take our word for it: Elliott has a history of helping similar companies improve their business and stock performance.
We see a potential gain of 65% or more to Phillips 66’s stock price from the “Streamline 66” plan.
(1) Source: Bloomberg as of February 7, 2025. (2) Price target is based on Elliott’s internal calculations. More information and analysis can be found at Streamline66.com.
Representative Companies where Elliott has Helped Improve Performance
Peer Case Study: Marathon Petroleum
Like in Elliott’s engagement with Marathon, Phillips 66 can be restored to a top-performing company with returns to match
After working with Elliott, Marathon Petroleum’s Board and management acted decisively to create a more focused and efficient organization. Marathon stock has dramatically outperformed its peers since mid 2019.
Implemented governance enhancements, including a new director selected in consultation with Elliott
Transitioned to new executive leadership
Reduced operating costs by >$1B across the business, while also improving commercial performance and boosting profit margins
Sold Speedway retail segment, generating $17B in net proceeds to support a best-in-class capital return program and an investment-grade balance sheet
Marathon Petroleum Total Shareholder Return vs. Peers
Source: Bloomberg. Based on average of peers Valero and Phillips 66