Phillips 66 PSX
Phillips 66 has underperformed Marathon by 511% under a complacent board; electing Elliott's four nominees and spinning Midstream/CPChem/JET unlocks ~75% upside ($103 → $183).
Thesis
Phillips 66 has dramatically underperformed core peers Valero (-388%) and Marathon (-511%) since its 2012 spinoff while CEO Mark Lashier and a self-congratulatory board claim success using a misleading synthetic peer methodology that excludes the company's two most appropriate comparables. Elliott — a multi-billion-dollar holder — argues the conglomerate structure traps value, midstream M&A has been dilutive at ~9-11x multiples versus PSX's 6.9x trading multiple, refining opex runs ~$4/bbl higher than core peers, and major growth projects (Cedar Bayou, Gray Oak, Rodeo) have overrun budgets by 20-47%. The Streamline 66 slate of four nominees (Coffman, Cornelius, Heim, Nieuwoudt) would drive a sale or spin of Midstream, CPChem and JET worth ~$43bn (103% of market cap), retire ~80% of shares, and replicate Elliott's Marathon/Speedway playbook which delivered 149% peer-relative TSR — pointing to ~$183 per share, +75% upside.
SCQA
Phillips 66 is the integrated oil company spun from ConocoPhillips in 2012, with refining, midstream, marketing & specialties, and a 50% stake in chemicals JV CPChem under CEO Mark Lashier and Lead Director Glenn Tilton.
PSX has underperformed Marathon by 511% and Valero by 388% while a complacent board recycles ~$3.5bn of divestitures into dilutive ~10x midstream M&A and lets refining opex run ~$4/bbl above core peers.
Elect Elliott's four GOLD-card nominees — Coffman, Cornelius, Heim, Nieuwoudt — to sell or spin Midstream, CPChem and JET, repurchase ~80% of shares, and refocus the company on refining operational excellence.
Stock rerates from $103 to $183 (+75% upside), replicating Elliott's Marathon/Speedway precedent that delivered 149% peer-relative TSR after similar governance intervention forced asset divestiture.
The three reasons
- 1
PSX underperformed Marathon by 511% and Valero by 388% since 2012 spinoff
- 2
Spinning Midstream/CPChem/JET could yield ~$43bn — 103% of current market cap
- 3
Marathon/Speedway precedent delivered 149% peer-relative TSR after Elliott intervention
Primary demands
- Elect Elliott's four shareholder-nominated directors (Brian Coffman, Sigmund Cornelius, Michael Heim, Stacy Nieuwoudt) on the GOLD card
- Separate (spin or sell) the Midstream business, CPChem stake and JET retail
- Use ~$43bn of net proceeds to retire ~80% of shares outstanding
- Refocus management on refining operational excellence to close ~$3.75/bbl EBITDA gap to Valero
- Halt further dilutive midstream M&A and over-budget growth capex
- Adopt annual elections for all board seats
KPIs cited
Pattern membership
Where this document fits across the library's 12 rhetorical / structural patterns.
Mark Lashier (CEO) and Glenn Tilton...
Present
Present
Present
Present
—
Yes
Yes
—
Active
4/5
N:5 V:4
Precedents cited
- Marathon Petroleum / Speedway divestiture (Elliott 2019 campaign)
- Mike Hennigan / Marathon EBITDA gap closure to Valero
Notable slides (6)
Notes
Filed under 14_Icahn folder but the deck is by Elliott Investment Management — Streamline 66 proxy-fight investor presentation against Phillips 66's board (folder appears to be misfiled, or Icahn has parallel involvement not reflected in this document). Distinctive visual identity: yellow + red Streamline66 highway-shield branding, dedicated streamline66.com microsite. Appendix sections (social media posts, website screenshots, press release index) included as part of the SEC DEFA14A exhibit attachment. Stake size not disclosed in this document beyond 'multi-billion-dollar position'. Heavy use of Elliott's prior Marathon/Speedway campaign as analog precedent. Document is a follow-up/escalation in a longer campaign — Elliott's initial public letter dates to Nov 2023, original Streamline66 deck Feb 2025, Perspectives on Value Creation Apr 28 2025; this May 6 deck is the proxy-fight closing argument.