Group 1 - Elliott Investment Management has nominated seven independent candidates for the Board of Phillips 66 for the 2025 Annual Meeting, aiming to enhance the company's governance and performance [1][2][3] - The three key initiatives proposed by Elliott to improve Phillips' performance include portfolio simplification, an operating review, and enhanced oversight [2] - Elliott's proposal includes a non-binding request for annual director elections to increase accountability and align with shareholder interests, responding to previous strong support for such measures [4][5] Group 2 - The candidates nominated by Elliott possess extensive experience in refining, midstream operations, capital allocation, and corporate governance, which are critical for Phillips' strategic direction [3][6] - The nominees include Brian Coffman, Sigmund Cornelius, Michael Heim, Alan Hirshberg, Gillian Hobson, Stacy Nieuwoudt, and John Pike, each bringing unique expertise from their respective backgrounds in the energy sector [6][7][8][9][10][11][12][13] - Elliott holds a 5.5% economic interest in Phillips 66, with significant shareholdings and derivative agreements, indicating a strong investment position [19]

Company Overview - Phillips 66 is a multinational energy company with a market capitalization exceeding $50 billion [2] - The company has developed a robust portfolio of midstream and downstream assets [2] Financial Performance - Recent quarters have seen significant negative pressure on earnings due to the company's downstream assets [2]

Acquisitions and Investments - The company acquired Pinnacle Midland Parent LLC for cash consideration of $565 million to expand its natural gas gathering and processing operations in the Permian Basin[21]. - A definitive agreement was entered into to acquire EPIC Y-Grade for cash consideration of $2.2 billion, pending regulatory approval[22]. - The company sold its 25% ownership interest in Gulf Coast Express Pipeline LLC on January 30, 2025[24]. - The company acquired a marketing business on the U.S. West Coast for $65 million to support renewable diesel placement[81]. Midstream Operations - The Midstream segment owns or holds partial interests in approximately 70,000 miles of pipeline systems and 39 refined petroleum product terminals as of December 31, 2024[20]. - The company’s total pipeline system includes various segments with a gross capacity of up to 750 MB/D for the Bakken Pipeline[27]. - The company owns or holds partial interests in major pipeline systems with a gross capacity of up to 942 MB/D, facilitating efficient transportation[42]. - The DCP Sand Hills and Southern Hills pipelines provide takeaway capabilities for gathering and processing operations in key U.S. regions[37]. - DCP Midstream, LP, in which the company holds an 86.8% interest, is one of the largest processors of natural gas and NGLs in the U.S.[36]. Refining Segment - The Refining segment includes 11 refineries located in the United States and Europe, refining crude oil into various petroleum products[19]. - The refining segment operates 11 refineries with a total net crude throughput capacity of 1,841 thousand barrels daily as of December 31, 2024[58]. - The Bayway Refinery produces a high percentage of transportation fuels and has a polypropylene plant with a capacity of 775 million pounds per year[61]. - The Humber Refinery is the only coking refinery in the UK, producing high-quality specialty graphite and anode-grade petroleum cokes[62]. - The MiRO Refinery, the largest in Germany, operates with a 19% interest and produces a high percentage of transportation fuels[63]. - The Lake Charles Refinery produces a high percentage of transportation fuels and exports refined products primarily to Latin America[64]. - The Sweeny Refinery has a significant output of transportation fuels and petrochemical feedstocks, distributed throughout the Midcontinent region[65]. - The Ferndale Refinery primarily serves the northwest U.S. market, producing a high percentage of transportation fuels and residual fuel oil[71]. - The company announced the intention to cease operations at the Los Angeles Refinery in the fourth quarter of 2025[73]. Renewable Fuels - The company established a Renewable Fuels operating segment, integrating renewable fuels activities previously reported in other segments[17]. - The Renewable Fuels segment processes renewable feedstocks at the Rodeo Renewable Energy Complex and Humber Refinery, managing regulatory credits and marketing renewable fuels[19]. - The Rodeo Complex can process approximately 50,000 B/D (800 million gallons per year) of renewable feedstocks into renewable fuels[90]. - A solar facility at the Rodeo Complex is expected to reduce grid power demand by 50% and avoid approximately 33,000 metric tons of CO2 emissions annually starting Q1 2025[91]. - The company delivered an initial 600,000 gallons of sustainable aviation fuel (SAF) in 2024 and has agreements to supply 3 million gallons of SAF through mid-2025[91]. - The company completed the conversion of its San Francisco Refinery into the Rodeo Complex during 2024, expanding renewable diesel production[90]. Chemicals Segment - The company has a 50% equity investment in Chevron Phillips Chemical Company LLC, which manufactures and markets petrochemicals and plastics globally[19]. - CPChem's ethylene production capacity reached 11,910 million pounds per year in the U.S. and 14,430 million pounds worldwide as of December 31, 2024[54]. - CPChem is building two world-scale petrochemical facilities, one in the U.S. Gulf Coast with a 4.6 billion pounds per year ethane cracker and two high-density polyethylene units with a combined capacity of 4.4 billion pounds per year, and another in Ras Laffan, Qatar, with similar capacities[55]. Storage and Transportation - As of December 31, 2024, the company has a total gross storage capacity of 16,500 MBbl at the Clemens facility in Texas, with a 100% ownership interest[44]. - The Sweeny Hub has a total fractionation nameplate capacity of 550,000 B/D, supporting the petrochemical industry and global markets[39]. - The Freeport LPG Export Terminal has a combined LPG export capacity of 260,000 B/D, enhancing the company's export capabilities[40]. - The company operates a fleet of approximately 8,900 owned or leased railcars to support distribution operations[34]. - The company has 13 international-flagged tankers and one Jones Act-compliant tanker under time charter contracts, enhancing its transportation capacity[33]. Corporate and Workforce - The company’s Corporate and Other segment includes investments in research of new technologies and business transformation restructuring costs[18]. - The company had approximately 13,200 employees as of December 31, 2024, focused on delivering energy and improving lives[94]. - The combined workforce total recordable rate (TRR) was 0.12 in 2024, which is 23 times better than the U.S. manufacturing average[98]. - The company focuses on employee engagement and development, conducting regular surveys to capture feedback on performance and culture[97]. - At December 31, 2024, the company held a total of 511 active patents in 16 countries, including 400 active U.S. patents[101]. Marketing Strategy - As of December 31, 2024, the company operated approximately 7,450 branded outlets in the U.S. and Puerto Rico[76]. - The company emphasizes a low-cost, high-volume approach in its European marketing strategy, with approximately 1,290 marketing outlets in Europe[84]. - The company has interests in 330 additional sites through its Coop joint venture operations in Switzerland[84].

Core Viewpoint - Phillips 66 has expanded its fuel oil storage capabilities in Singapore and the Malacca Straits by leasing the Southern Emperor, a floating storage vessel with a capacity of 300,000 metric tons, to enhance supply flexibility in a critical trading hub [1] Group 1: Company Strategy - The leasing of the Southern Emperor provides Phillips 66 with greater control over inventory management and trading operations in Asia's dynamic energy market, following a previous partial rental of the EM Splendour [2] - This move aligns with Phillips 66's broader strategy of optimizing supply chains and maintaining a competitive edge in the evolving energy landscape [5] Group 2: Market Context - Singapore is the world's largest bunkering port and plays a crucial role in global fuel oil trade, with floating storage being used to manage supply and price fluctuations [3] - The demand for floating storage has remained steady despite shifts in global fuel oil consumption patterns, as high-sulfur fuel oil remains essential for vessels equipped with scrubbers [4] - The continued presence of floating storage in Singapore reflects the market's ongoing reliance on fuel oil for marine and industrial use [4] Group 3: Industry Dynamics - The Southern Emperor joins a fleet of 19 other floating storage vessels in the region, collectively holding more than 2.6 million metric tons of fuel oil [2]

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].

Phillips 66 (PSX) reported better-than-expected fourth-quarter 2024 results, with both the bottom line and top line beating the Zacks Consensus Estimate. The stock price has increased 3.1% since its earnings release on Jan. 31.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Before delving into the quarterly results, let’s understand the premium refining company’s business.PSX’s Refining BusinessPhillips 66 boasts one of the world's largest and most sophisticated refining operations, w ...

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 ...

1 Lake James Gas Plant GOLDSMITH, TX Cautionary Statement This presentation contains forward-looking statements within the meaning of the federal securities laws relating to Phillips 66's operations, strategy and performance. Words such as "anticipated," "commitments," "estimated," "expected," "planned," "scheduled," "targeted," "believe," "continue," "intend," "will," "would," "objective," "goal," "project," "efforts," "strategies" and similar expressions that convey the prospective nature of events or out ...

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 ...