Phillips 66 PSX
The three reasons
- 1
Conglomerate structure hides a Midstream worth >$40bn standalone; market gives refining ~$1bn of credit
- 2
Management missed 2025 $14bn mid-cycle EBITDA target by ~$5.7bn and recycled divestiture proceeds into dilutive M&A
- 3
Following Marathon's path of asset sales plus buybacks implies ~$200/share base case and $300+ upside vs $120 today
Primary demands
- Sell or spin the Midstream business
- Pursue sale of Phillips' 50% JV interest in CPChem
- Execute plan to sell the German and Austrian JET retail business
- Commit to ambitious refining targets matching VLO/MPC EBITDA per barrel
- Add new independent directors and review executive leadership
- Direct divestiture proceeds to share buybacks rather than midstream M&A
KPIs cited
Pattern membership
Where this document fits across the library's 12 rhetorical / structural patterns.
Notable slides (6)
Notes
Campaign branded as 'Streamline 66' with Route-66 highway-shield visual motif carried throughout. Builds on Elliott's prior Nov 2023 engagement letter — classified as follow_up since this is the expanded public thesis deck, not the first disclosure. Heavy use of Marathon Petroleum as precedent (Elliott's 2019 MPC campaign) with case-study and 'Marathon Path' upside scenario. Strong CEO-quote contradictions of Mark Lashier on earnings calls paired with analyst skepticism from Wolfe, Goldman, TPH. Three-pillar structure (Inefficient Conglomerate / Poor Operating Performance / Damaged Management Credibility) reinforced via section tabs at top of every page. Closing ask is constructive engagement rather than a proxy fight demand.