Phillips 66 and Activist Elliott Split Boardroom

Proxy Battle is Done - here are the Investment Signals you want.

𝗠𝗶𝗱𝘀𝘁𝗿𝗲𝗮𝗺, 𝗖𝗵𝗲𝗺𝗶𝗰𝗮𝗹𝘀, 𝗖𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗲 - 𝘄𝗮𝘁𝗰𝗵 𝘆𝗼𝘂𝗿 𝘀𝗶𝘅.

Results are in: Phillips 66 vs Elliott Investment Management L.P.
The activist won 2 out of 4 board seats as I expected.

Elliott is all over this reorg right now.

𝗧𝗵𝗲 𝘄𝗼𝗿𝗸𝗳𝗼𝗿𝗰𝗲 𝘀𝗵𝗼𝘂𝗹𝗱 𝗲𝘅𝗽𝗲𝗰𝘁 𝗰𝗵𝗮𝗻𝗴𝗲.

Elliott explicitly wants to spin off Midstream and the Chevron JV (CPChem). aka- Restructure at scale.

Cornelius and Heim - Elliott’s successful nominees - are now inside. And while Elliott didn’t get a full sweep, this isn’t a loss. It’s a wedge. A pretty hefty one ya'll.

It wasn’t without a fight… one one of a helluva spreadsheet. Elliott’s plan to break up $PSX could cost $28/share in dis-synergies and disrupt a workforce tied to $14B+ in shareholder returns. - Haskett

Adjusted loss: $368M. Shareholder return: $716M.

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ISS, Glass Lewis, and Egan-Jones all backed Elliott’s full slate - and it paid off, at least in part.

Elliott walked away with 2 out of 4 seats on the $PSX board.

Not a sweep, but enough to move the needle.

Meanwhile, BlackRock, Vanguard (yep- that Vanguard 👀), and State Street sat quiet. They control 23% of shares and didn’t back Elliott - but Elliott still broke through.

This is the playbook: