Core Viewpoint - Elliott Management has proposed a plan called "Streamline66" to address Phillips 66's underperformance and governance issues, suggesting asset sales and management changes to unlock shareholder value [3][9]. Company Overview - Phillips 66 is an energy manufacturing and logistics company with four segments: Midstream, Chemicals, Refining, and Marketing and Specialties (M&S) [1][4]. - The Midstream segment provides transportation and processing services for crude oil and natural gas liquids, while the Chemicals segment includes a 50% stake in Chevron Phillips Chemical Company [1][4]. - The Refining segment operates 12 refineries in the U.S. and Europe, producing various petroleum products, and the M&S segment markets refined products and renewable fuels [1][4]. Activist Engagement - Elliott Management first engaged with Phillips 66 in November 2023, announcing a $1 billion investment and criticizing the company's underperformance and management's inability to capitalize on refining opportunities [5][6]. - The firm has since increased its investment to $2.5 billion and is taking a more active role in advocating for changes [7]. Underperformance Analysis - Elliott identifies three main reasons for Phillips 66's underperformance: inefficient conglomerate structure, failure to meet operational targets, and management's declining credibility with investors [8][9]. - The company has not met its mid-cycle EBITDA target of $14 billion for 2025, with 2024 annualized adjusted EBITDA projected between $4.5 billion and $8.7 billion [8]. Proposed Plan - Elliott's "Streamline66" plan includes: 1. Selling or spinning off the midstream assets, potentially generating $40 billion to $45 billion [9]. 2. Selling the company's interest in CPChem, estimating net proceeds of $48 billion from the three assets [9]. 3. Adding new independent directors to improve management oversight and accountability [3][9]. - The plan could potentially raise Phillips 66's share price to approximately $200, with further execution possibly increasing it to over $300 [10]. Governance and Management Accountability - Elliott emphasizes the need for improved management accountability, suggesting that the board has failed in its oversight duties and that management's credibility has been damaged [8][11]. - The firm plans to nominate a full slate of four directors to the board to ensure better governance and oversight [11].

Core Insights - Phillips 66 (PSX) reported better-than-expected fourth-quarter 2024 results, with both earnings and revenue surpassing Zacks Consensus Estimates, leading to a 3.1% increase in stock price since the earnings release on January 31 [1] Refining Business Overview - Phillips 66 operates one of the largest and most sophisticated refining operations globally, with 12 strategically located refineries in the U.S. and Europe, showcasing efficiency and competitiveness [3] - Despite its strong infrastructure, PSX faced an adjusted refining loss of $759 million for the quarter [3] Fourth-Quarter Results - The company reported an adjusted loss of 15 cents per share, which was better than the Zacks Consensus Estimate of a loss of 20 cents, but lower than the profit of $3.09 from the same quarter last year [4] - Revenues decreased to $33.99 billion from $38.74 billion in the prior-year quarter, yet still exceeded the Zacks Consensus Estimate of $32.03 billion [5] Operational Performance - The refining segment reported an adjusted pre-tax loss of $759 million, contrasting with adjusted pre-tax earnings of $842 million in the previous year, missing projections of earnings of $26.7 million [6] - The decline in performance was attributed to reduced realized margins due to weaker market crack spreads and accelerated depreciation from the Los Angeles Refinery shutdown [6] Refining Margins - Realized refining margins globally fell to $6.08 per barrel from $13.88 in the previous year, with specific declines in various regions: Central Corridor ($6.68 from $21.72), Atlantic Basin/Europe ($6.09 from $9.11), West Coast ($5.74 from $11.03), and Gulf Coast ($5.58 from $13.72) [7] Future Outlook - Phillips 66 aims to achieve an adjusted controllable refining cost of $5.50 per barrel within two years, down from $5.90 in 2024, with significant contributions from the Los Angeles Refinery shutdown and business transformation initiatives [8]

Highlights Need to Streamline Portfolio, Improve Operating Performance and Enhance Oversight Discloses a More Than $2.5 Billion Position Full Letter and Presentation Available at Streamline66.comWEST PALM BEACH, Fla., Feb. 11, 2025 /PRNewswire/ -- Elliott Investment Management L.P. ("Elliott"), which manages funds that together have an investment of more than $2.5 billion in Phillips 66 (NYSE: PSX) (the "Company" or "Phillips"), today sent a letter to the Board of Directors of Phillips 66.In its letter, Ell ...

For the quarter ended December 2024, Phillips 66 (PSX) reported revenue of $33.99 billion, down 12.3% over the same period last year. EPS came in at -$0.15, compared to $3.09 in the year-ago quarter.The reported revenue represents a surprise of +6.11% over the Zacks Consensus Estimate of $32.03 billion. With the consensus EPS estimate being -$0.20, the EPS surprise was +25.00%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Str ...

Financial Performance & Strategic Achievements - Phillips 66 achieved $13.6 billion in shareholder distributions since July 2022, meeting its $13 billion to $15 billion target by year-end 2024[7] - The company captured $500 million of run-rate synergies from the DCP integration and a $1.5 billion mid-cycle adjusted EBITDA uplift from DCP transactions including synergies[7] - Business transformation initiatives yielded $1.5 billion in run-rate savings, including $1.2 billion in cost reductions and $0.3 billion in sustaining capital efficiencies[7] - Phillips 66 exceeded its non-core asset disposition target, announcing $3.5 billion in proceeds from various sales[7, 8] - For 4Q 2024, Phillips 66 reported earnings of $8 million, an adjusted loss of $61 million, and an adjusted loss per share of $0.15[17] Operational Performance - Refining operations achieved a $1/bbl cost reduction compared to 2022 and maintained eight straight quarters of crude utilization above the industry average, with a record annual clean product yield of 87%[7] - Midstream Adjusted EBITDA grew, driven by record NGL fractionation and LPG export volumes[19] - Refining adjusted controllable costs were ~$5.50 per barrel[15] - Refining market capture was 105% in 4Q 2024[19, 41] Financial Position & Outlook - The company maintained a 39% net debt-to-capital ratio[7, 17] - Phillips 66 anticipates a refining crude utilization in the low 80% range for 1Q 2025, with refining turnaround expenses estimated between $290 million and $310 million[24]

Phillips 66 (PSX) reported fourth-quarter 2024 adjusted loss of 15 cents per share, narrower than the Zacks Consensus Estimate of a loss of 20 cents. The bottom line declined from the year-ago quarter’s earnings of $3.09.Total quarterly revenues of $34 billion beat the Zacks Consensus Estimate of $32 billion. However, the top line declined from the year-ago level of $38.7 billion.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The better-than-expected quarterly results can be primaril ...

Phillips 66 delivered a substantial miss on earnings due to changing market conditions and strategic shifts.Phillips 66 (PSX -1.15%), an energy company with a focus on the refining, midstream, and chemical sectors, released its fourth-quarter earnings results on Jan. 31. The company reported an adjusted loss per share of $0.15, significantly missing analysts' consensus expectation for a $0.03 loss. GAAP earnings for the quarter were $8 million, while on an adjusted basis, the company lost $61 million. Reven ...

Exhibit 99.2 | | | | | | | Millions of Dollars, Except as Indicated | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | 2024 | | | | | 2023 | | | | | 1st | 2nd | 3rd | 4th | | 1st | 2nd | 3rd | 4th | | | Revenues and | Qtr | Qtr | Qtr | Qtr | YTD | Qtr | Qtr | Qtr | Qtr | YTD | | Other Income | | | | | | | | | | | | Sales and other | | | | | | | | | | | | operating | | | | | | | | | | | | revenues | 35,811 | 38,129 | 35,528 | 33,685 | 143,153 | 34,396 | 35,090 | 39,643 | 38 ...

Phillips 66 (PSX) came out with a quarterly loss of $0.15 per share versus the Zacks Consensus Estimate of a loss of $0.20. This compares to earnings of $3.09 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 25%. A quarter ago, it was expected that this oil refiner would post earnings of $1.63 per share when it actually produced earnings of $2.04, delivering a surprise of 25.15%.Over the last four quarters, the company has surp ...

Phillips 66 PSX will release its fourth-quarter financial results, before the opening bell, on Friday, Jan. 31, 2025.Analysts expect the Houston, Texas-based company to report a quarterly loss at 23 cents per share, versus year-ago earnings of $3.09 per share. Phillips 66 projects quarterly revenue of $32.24 billion, compared to $38.74 billion a year earlier, according to data from Benzinga Pro.On Jan. 6, the company disclosed a definitive deal to acquire EPIC Y-Grade, LP's natural gas liquids (NGL) busines ...