Phillips 66 Option Alert: Jan 16 $110 Puts at the Ask: 1500 vs 175 OI

Phillips 66 Option Alert: Jan 16 $110 Puts at the Ask: 1500 @ $6.7 vs 175 OI; Ref=$124.265

Phillips 66 (NYSE:PSX) Stock

Phillips 66

Phillips 66 is an independent refiner that owns or holds interest in 11 refineries with a total crude throughput capacity of 1.8 million barrels per day, or mmb/d, at the end of 2024. The midstream segment comprises extensive transportation and NGL processing assets. It includes 70,000 miles of crude oil, refined petroleum product, NGL and natural gas pipeline systems, and a comprehensive set of refined petroleum product, NGL and crude oil terminals, gathering and processing plants and fractionation facilities and various other storage and loading facilities. Its CPChem chemical joint venture operates facilities primarily in the United States and the Middle East and produces olefins and polyolefins.

PASINEX RES LTD ORD by Pasinex Res Ltd.

On CNBC's &#8220;Mad Money Lightning Round,&#8221; Jim Cramer said IonQ, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IONQ#NYSE">IONQ</a>) is &#8220;so high,&#8221; and it's also losing so much money.&#8221; He added that it's &#8220;<a href="https://www.benzinga.com/quote/IONQ">too speculative&#8221; for him</a>.
As per the recent news, IonQ, on May 23, formed a strategic partnership with the Korea Institute of Science and Technology Information, or KISTI, to advance South Korea's quantum technology goals.
Oklo Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OKLO#NYSE">OKLO</a>) is &#8220;literally five years behind GE Vernova (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GEV#NYSE">GEV</a>),&#8221; Cramer said. &#8220;I don't have the time for that when I can just go buy GE Vernova.&#8221;
As per the recent news, Oklo, on May 27, signed an MOU with Korea Hydro &amp; Nuclear Power to collaborate on the development and deployment of its nuclear technology.
Cramer said he prefers Phillips (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSX#NYSE">PSX</a>) over Valero Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VLO#NYSE">VLO</a>). &#8220;I think Valero's already had too much of a run,&#8221; he added.
On the earnings front, Valero Energy, on April 24, reported a first-quarter sales of $30.26 billion, beating the analyst consensus estimate of $28.68 billion.
Verona Pharma plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VRNA#NASDAQ">VRNA</a>) is a &#8220;rocket ship. Again, very, very speculative because it loses a lot of money. Does have a couple things in the pipe that people like, but also has a huge amount of insider selling, frankly,&#8221; Cramer said.
Verona Pharma, on April 29, reported mixed results for the first quarter.
&#8220;What a horse,&#8221; Cramer said when asked about Centrus Energy Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LEU#NYSE">LEU</a>). &#8220;I suggest that you calm down and you buy GE Vernova (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GEV#NYSE">GEV</a>).&#8221;
On the earnings front, Centrus Energy, on May 7, reported better-than-expected first-quarter revenue results.
Price Action:
<ul class="wp-block-list">
<li>Valero Energy shares gained 1.7% to settle at $130.71 on Tuesday.</li>
<li>IONQ shares jumped 5.1% to close at $48.04 during the session.</li>
<li>Verona Pharma shares gained 0.7% to settle at $75.61.</li>
<li>Centrus Energy shares gained 12.9% to close at $127.86 on Tuesday.</li>
<li>Oklo shares jumped 10.3% to settle at $53.90.</li>
</ul>
Read Next:
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/trading-ideas/long-ideas/25/05/45616471/jim-cramer-says-rocket-is-a-very-fine-company-recommends-buying-this-health-care-stock"> Jim Cramer Says Rocket Is A &#8216;Very Fine&#8217; Company, Recommends Buying This Health Care Stock</a> </li>
</ul>
Photo via Shutterstock

News

Markets

Media

Trading Ideas

IONQ

OKLO

VRNA

Jim Cramer Says This Quantum Computing Stock Is 'So High' And 'Too Speculative'

Phillips 66 Shareholders Elect Robert W. Pease and Nigel Hearne Phillips 66 Directors as well as Sigmund L. Cornelius and Michael A. Heim Elliott Director Nominees
Phillips 66 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSX#NYSE">PSX</a>) today updated the preliminary results for the election of directors at its annual meeting of shareholders held on May 21, 2025. Based on estimates by the company's proxy solicitor, shareholders are expected to elect two Phillips 66 nominees and two Elliott Management nominees.
Based on the preliminary results, the elected Phillips 66 directors are expected to be Robert W. Pease and Nigel Hearne. The Elliott nominees expected to be elected are Sigmund L. Cornelius and Michael A. Heim. Phillips 66 nominees John E. Lowe and Howard Ungerleider were not elected.

Management

Phillips 66 Shareholders Elect Robert W. Pease And Nigel Hearne Directors As Well As Sigmund L. Cornelius And Michael A. Heim Elliott Director Nominees

Activist hedge fund Elliott Investment Management has won enough support from Phillips 66 PSX.N shareholders to secure two board seats on the U.S. oil refiner's board of directors in one of the country's biggest corporate fights this year, a source familiar with the preliminary vote said on Wednesday.

Watching Phillips 66; Reuters Reports Activist Investor Elliott Wins Two Board Seats In Proxy Fight

Phillips 66 Highlights Strength Of Board Nominees, Refining Improvements, And Risks Of Elliott's Breakup Plan In Letter To Shareholders

Paul Singer isn't tiptoeing into <a href="https://www.benzinga.com/topic/energy-sector">the energy sector</a>, he's charging in at full throttle.
In the first quarter of 2025, Elliott Investment Management hiked its energy sector exposure from 23.84% to a commanding 37.64%, making it the firm's largest allocation. 
<h1 class="wp-block-heading">Phillips 66, Suncor: Singer&#8217;s Energy Bets</h1>
Leading the charge? A nearly $2 billion bet on Phillips 66 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSX#NYSE">PSX</a>) and Suncor Energy Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SU#NYSE">SU</a>), now two of the fund's <a href="https://www.sec.gov/Archives/edgar/data/1791786/000101359425000678/xslForm13F_X02/primary_doc.xml">top three holdings</a>.
Singer made an especially bold move with Phillips 66. Elliott upped its stake in the oil refiner by nearly <a href="https://whalewisdom.com/filer/elliott-management-corp">2,000%</a>, buying 14.95 million new shares and bringing the total holding to 15.73 million, valued at roughly $1.94 billion. Phillips 66 now accounts for 12.81% of Elliott's $15.2 billion 13F portfolio, vaulting from a fringe position to the No. 3 spot.
Suncor, too, remains a core conviction, with a $2.04 billion stake representing 13.46% of the portfolio. That holding was unchanged from the previous quarter, but its high ranking underscores Singer's sustained confidence in traditional energy.
Read Also: <a href="https://www.benzinga.com/markets/equities/24/06/39244142/elliott-management-reportedly-builds-2b-stake-in-southwest-airlines-plans-to-push-for-change">Elliott Management Reportedly Builds $2B Stake In Southwest Airlines, Plans To Push For Change</a>
<h1 class="wp-block-heading">From Broad Market To Tactical Plays</h1>
This surge in energy positions comes as Elliott simultaneously trimmed or exited exposure to broader market ETFs and sectors. Notably, the firm slashed its SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) put position by over 25% and cut bets against Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) and VanEck Oil Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OIH#NYSE">OIH</a>), signaling a tactical shift toward direct plays like Phillips 66 and Suncor.
It's a classic Singer move: lean in when others hedge. While the broader market debates peak oil demand and ESG pressures, Elliott is doubling down on old-school energy — and doing it with size. Whether this is a contrarian masterstroke or a risky overexposure remains to be seen.
But one thing's clear — when Paul Singer turns up the heat, he doesn't wait for consensus.
Read Next: 
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/hedge-funds/25/05/45447966/ray-dalios-bridgewater-dumps-spy-trims-nvidia-meta-alphabet-bearish-vibes">Ray Dalio&#8217;s Bridgewater Dumps SPY, Trims Nvidia, Meta, Alphabet — Bearish Vibes?</a></li>
</ul>
Photo: Gsign76 via Shutterstock

Long Ideas

Hedge Funds

Paul Singer's $2 Billion Energy Power Play: Phillips 66, Suncor Among Elliott's Top Holdings

Phillips 66 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSX#NYSE">PSX</a>) subsidiary reached a definitive deal to sell a 65% stake in its retail marketing business in Germany and Austria to a consortium owned by subsidiaries of investment firms Energy Equation Partners and Stonepeak at an enterprise value of <a href="https://www.benzinga.com/pressreleases/25/05/b45436496/phillips-66-announces-agreement-to-divest-majority-interest-in-germany-and-austria-retail-marketin" target="_blank" rel="noreferrer noopener">around €2.5 billion (about $2.8 billion)</a>.
The transaction implies an Enterprise Value/EBITDA multiple of 9.1x based on expected 2025 EBITDA.
Phillips 66 expects to receive pre-tax cash proceeds of approximately €1.5 billion (about $1.6 billion), after customary purchase price adjustments.
Also Read: <a href="https://www.benzinga.com/markets/equities/25/05/45366471/elliott-management-scores-key-win-in-phillips-66-proxy-fight-as-iss-backs-all-four-board-nominees-ahead-of-may-21-vote" target="_blank" rel="noreferrer noopener">Elliott Management Scores Key Win In Phillips 66 Proxy Fight As ISS Backs All Four Board Nominees Ahead Of May 21 Vote</a>
The proceeds are expected to support the company&#8217;s strategic priorities, including debt reduction and shareholder returns.
Through a newly established joint venture, Phillips 66 will retain a 35% non-operating interest in this business.
The retail business in Germany and Austria comprises 970 locations, with 843 operating under the JET brand.
In conjunction with this transaction, Phillips 66 will enter into a long-term supply agreement to continue providing products to the Germany and Austria retail business from the Mineraloelraffinerie Oberrhein GmbH &amp; Co. KG (MiRO) Refinery.
Pending regulatory approvals and other closing conditions, the transaction is anticipated to be finalized <a target="_blank" href="https://www.benzinga.com/pressreleases/25/05/b45436959/stonepeak-and-energy-equation-partners-to-acquire-majority-interest-in-jet-from-phillips-66" rel="noreferrer noopener">in the second half of 2025</a>.
In April, Phillips 66 reported first-quarter FY25 results, with revenue of $31.73 billion, beating the consensus of $31.33 billion and adjusted EPS of 90 cents which <a href="https://www.benzinga.com/25/04/45008890/refining-woes-weigh-on-phillips-66-despite-midstream-and-chemicals-gains" target="_blank" rel="noreferrer noopener">missed the consensus of $(0.72)</a>.
Investors can gain exposure to the stock via&nbsp;iShares U.S. Oil &amp; Gas Exploration &amp; Production ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IEO#BATS">IEO</a>) and VanEck Oil Refiners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRAK#NYSE">CRAK</a>).
Price Action: PSX shares are down 1.09% at $123.33 at the last check on Thursday.&nbsp;
Read Next:
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com//node/45231897" target="_blank" rel="noreferrer noopener">Marathon Petroleum Refining Margins Fall Drags Q1 Profit</a></li>
</ul>
Image: Shutterstock

Equities

Large Cap

Asset Sales

CRAK

iShares Dow Jones US Oil & Gas Exploration & Production Index Fund

Phillips 66 Partially Exits European Retail Market With $2.8 Billion Deal:

Stonepeak, a leading alternative investment firm specializing in infrastructure and real assets, and Energy Equation Partners (&quot;EEP&quot;), a newly formed investment firm with significant expertise in fuel retail, today announced an agreement to acquire a majority interest in JET Tankstellen Deutschland GmbH (&quot;JET&quot;), a leading fuel retailer in Germany and Austria, from a subsidiary of Phillips 66 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSX#NYSE">PSX</a>), in a transaction valuing the business at an enterprise value of approximately &euro;2.5 billion. Phillips 66 will retain a 35% minority interest in JET as part of the transaction through a newly formed joint venture.

Stonepeak And Energy Equation Partners To Acquire Majority Interest In JET From Phillips 66 For €2.5B Deal; Phillips 66 To Retain 35% Minority Interest In JET As Part Of Transaction Through Newly Formed JV

Phillips 66 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSX#NYSE">PSX</a>) announced today that its subsidiary, Phillips 66 Continental Holding GmbH, has entered into a definitive agreement to divest a 65 percent interest in its Germany and Austria retail marketing business, including JET-branded sites, to a consortium owned by subsidiaries of investment firms Energy Equation Partners and Stonepeak. Phillips 66 will retain a non-operated 35 percent interest in the business through a newly formed joint venture.
The transaction values the Germany and Austria retail marketing business at an enterprise value of approximately €2.5 billion (approximately $2.8 billion), representing an implied Enterprise Value/EBITDA multiple of 9.1x based on expected 2025 EBITDA. Phillips 66 expects to receive pre-tax cash proceeds of approximately €1.5 billion (approximately $1.6 billion), after customary purchase price adjustments. The proceeds will be used to support the company's strategic priorities, including debt reduction and shareholder returns.
In connection with the transaction, Phillips 66 will enter into a multi-year agreement to continue to supply the business with products from the Mineraloelraffinerie Oberrhein GmbH &amp; Co. KG (MiRO) Refinery.
The Germany and Austria retail business includes 970 sites, of which 843 are JET-branded sites. The transaction is expected to close in the second half of 2025, subject to regulatory approvals and other customary conditions.

Phillips 66 Continental Holding Agrees To Divest 65% Interest In Germany And Austria Retail Marketing Business In $2.8B Deal

WIIM

ACDC

CIVI

CLNE

CSAN

GPRE

HNRG

MPLX

TRGP

VTLE

Shares of oil and gas companies are trading higher amid US-China trade progress, President Trump's Middle East trip and softer-than-expected April inflation figures, which could lift demand sentiment.

Mizuho analyst Nitin Kumar maintains Phillips 66 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSX#NYSE">PSX</a>) with a Neutral and raises the price target from $132 to $138.

Price Target

Analyst Ratings

Mizuho Maintains Neutral on Phillips 66, Raises Price Target to $138

Disagrees with ISS' and Glass Lewis' Recommendations which Failed to Address Critical Issues Reiterates The Strength Of Phillips 66's Highly Qualified Board And Nominees
Phillips 66 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSX#NYSE">PSX</a>) today announced that it strongly disagrees with the recommendations issued by Institutional Shareholder Services ("ISS") and Glass Lewis &amp; Co. ("Glass Lewis").
"We disagree with the recommendations issued by ISS and Glass Lewis," said the Phillips 66 Independent Directors. "We remain committed to engaging with and listening to our shareholders on the issues in this campaign."
The Company notes the following issues and omissions in the reports' analyses that remain critical factors for shareholders to consider:
<ul>
<li>Elliott's break-up thesis not examined: The reports did not opine on the merits of Elliott's thesis to break up Phillips 66, which is the primary objective of Elliott's campaign. In fact, ISS stated clearly that its report "is not an endorsement of a Midstream and/or Chemicals separation." Supporting Elliott's directors implicitly supports this risky path and overrides the judgment of Phillips 66's highly qualified Board. Our Board continually evaluates the portfolio to maximize shareholder value and currently believes that the integrated model is the best path to shareholder value creation. As we always have, we remain committed to regularly and aggressively assessing these options going forward. &nbsp;</li>
<li>Concerning assessment of director independence: By recommending against Robert Pease, the reports establish a concerning precedent on evaluating director independence.
<ul>
<li>The reports suggest a director selected and vetted by a shareholder can be determined to lack independence after one month on the board and one vote. The single vote was for a combined CEO and Chair, a policy that is in place at 44% of S&amp;P 500 companies.1</li>
<li>This analysis disregards the fact that Mr. Pease's vote represented his professional judgment as a 30-year corporate leader and ignores the fact that Mr. Pease was carefully evaluated for his qualifications and independence by Elliott. It also fails to apply any scrutiny to Elliott's self-interested lack of support for its recently supported director.</li>
</ul>
</li>
<li>Reliance on board analysis from five years ago: ISS acknowledged that Phillips 66 has refreshed its Board substantially since July 2020. Yet, it still claimed that a lack of Board refreshment prior to the COVID-19 pandemic reflects a need for change now.</li>
<li>Concerning governance overlooked: ISS and Glass Lewis disregarded Elliott's ongoing efforts to acquire CITGO. The reports also overlook the fact that this pursuit took place concurrently with discussions of a second director appointment. Notably, neither report mentions anything about Elliott's misleading disclosures and the overlapping relationships of its director nominees. These are unresolved issues that are highly relevant to shareholder considerations.</li>
</ul>
Phillips 66 reiterates its commitment to ongoing transformation and governance refreshment. The Company reminds shareholders of key facts including:
<ul>
<li>Consistent refreshment: Phillips 66 has added five new independent directors in the past four years to equip the Board with fresh perspectives and independent viewpoints. In its report, ISS acknowledged the Company's board refreshment efforts, noting "Beginning in July 2020, the pace of board refreshment accelerated rapidly. The board appointed Julie Bushman early that month, Lisa Davis in October 2020, Denise Singleton and Doug Terreson in July 2021, and Greg Hayes in July 2022. Mark Lashier also joined in July 2022 in connection with his succession as CEO. Accompanying these appointments, Ferguson departed in August 2020, and McGraw and Tschinkel departed in March 2021."</li>
<li>Strong governance practices: The Board is firmly committed to declassification that would require all directors to stand election each year. The last attempt to do so received approval from 73% of outstanding shares.
<ul>
<li>In its report, ISS supported Phillips 66's declassification proposal, arguing, "The proposed declassification, assuming it can clear the supermajority hurdle, would enhance board accountability to shareholders, and the resubmission of this proposal to a vote after it failed in prior years demonstrates a commitment to shareholders' interests on the part of management."</li>
</ul>
</li>
<li>Early days in transformation strategy: ISS recognizes that Phillips 66 has improved its operating results since Mark Lashier stepped in as CEO on July 1, 2022 and achieved a total shareholder return above that of key competitors. ISS noted, "Since the appointment of Lashier as CEO through May 8, 2025, PSX has outperformed VLO by 20.9 percentage points." Phillips 66 has made it clear that it is working to improve operations but is not satisfied with its results. In under three years, the Company has made progress on corporate cost takeout, refining performance, asset divestitures and more. These are facts recognized by the reports. These actions reflect a commitment to improvement that is continuing and will lead to further performance improvement and ultimately increased shareholder value.</li>
<li>Relevant director skills: Phillips 66's Board composition is closely aligned with the Company's strategy and the issues raised in this campaign. Of the continuing Directors and nominees, six have refining experience, five have chemicals experience and five have midstream experience. The majority has experience in business transformations, several have expertise in finance and a number are experts in supply chains.2 Notably, the Company's Directors and nominees have overseen more than $300 billion in "breakup or major divestiture transactions.3</li>
</ul>
Phillips 66 encourages shareholders to reach their own informed conclusions.
Elliott is seeking rapid, irreversible change in pursuit of a short-term thesis that would introduce significant risks to Phillips 66 shareholders. Do not let Elliott's short-term and misinformed thesis disrupt your consistent and compelling returns.
Phillips 66 recommends that shareholders use the WHITE proxy card to vote:
<ul>
<li>‘FOR' only its four nominees using the WHITE proxy card;</li>
<li>‘FOR' management's proposal to approve the declassification of the Board of Directors, in line with the recommendations from ISS &amp; Glass Lewis;</li>
<li>‘AGAINST' Elliott's proposal requiring annual director resignations, which implementing would violate Delaware law and put your Board at significant legal and reputational risk.</li>
</ul>
The Board strongly recommends that shareholders safeguard their investment in Phillips 66 by casting their vote as soon as possible, regardless of plans to attend the Annual Meeting virtually on May 21, 2025.
Shareholders may receive materials from Elliott Management that say "Gold proxy card" or "Gold voting instructions" or similar language. Phillips 66 recommends that shareholders DISCARD any Gold voting materials they may receive from Elliott. Shareholders may cancel out any vote made using a Gold proxy card by voting again TODAY using the Company's WHITE proxy card. Only the latest-dated vote will count.

Phillips 66 Disagrees With Recommendations Issued By ISS And Glass Lewis; Reiterates Commitment To Ongoing Transformation And Governance Refreshment

Activist investor Elliott Investment Management scored a victory on Monday when Institutional Shareholder Services recommended investors elect all four of Elliott&#8217;s director nominees to the Phillips 66 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSX#NYSE">PSX</a>) board, bolstering the hedge fund&#8217;s campaign for strategic changes at the oil refiner.
What Happened: Elliott, which <a href="https://www.benzinga.com/markets/equities/25/02/43614105/activist-investor-elliott-builds-25-billion-stake-in-phillips-66-pressures-for-midstream-spinoff-report">holds a $2.5 billion stake in Phillips 66</a>, has urged the company to divest its midstream business. Proxy advisory firm ISS backed all four of Elliott's board nominees, joining Glass Lewis and Egan-Jones in supporting the activist's push ahead of the May 21 shareholder vote, Reuters reported.
ISS is a top proxy advisory firm whose recommendations guide major investors on corporate votes, often swaying outcomes in boardroom battles.
&#8220;Although the board has been reshaped since the pandemic, important industry perspectives have been overlooked, and there is strong evidence that the board is not willing to exercise independent oversight of management,&#8221; ISS wrote in its report.
The proxy advisor also challenged Phillips 66&#8217;s argument that its integrated strategy delivers superior returns, noting the stock began underperforming peers in mid-2021 and &#8220;has not been able to close the gap.&#8221; PSX shares have dropped 18% over the past 52 weeks, closing at $118.68 on Monday.
See Also: <a href="https://www.benzinga.com/trading-ideas/movers/25/05/45366281/bitcoin-ethereum-dogecoin-retreat-stocks-rally-after-us-china-tariff-de-escalation-analyst-sees-opportunity-in-2100-2250-if-eth-corrects">Bitcoin, Ethereum, Dogecoin Retreat, Stocks Rally After US-China Tariff De-Escalation: Analyst Sees Opportunity In $2,100-2,250 If ETH Corrects</a>
Why It Matters: Elliott first disclosed its investment in Phillips 66 in February, expanding from an initial $1 billion position that had already secured a board seat for refining veteran Robert Pease last year. The activist fund&#8217;s larger stake now places it among Phillips 66&#8217;s top five shareholders.
The hedge fund, <a href="https://www.benzinga.com/news/24/08/40411028/elliott-management-alums-spawn-their-offshoots-amid-rigid-changes-and-increased-bureaucracy-at-70b-h">which manages $70 billion</a>, has a strong track record in the energy sector with successful investments at Marathon Petroleum (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MPC#NYSE">MPC</a>), NRG Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NRG#NYSE">NRG</a>), Suncor Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SU#NYSE">SU</a>) and Hess (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HES#NYSE">HES</a>).
Elliott said the ISS report &#8220;fully validates Elliott&#8217;s case for change,&#8221; according to the report. 
Photo Courtesy: Ken Wolter on Shutterstock.com
Read Next: 
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/25/05/45365162/cathie-wood-makes-bullish-move-on-baidu-ark-adds-30k-shares-amid-china-us-trade-thaw">Cathie Wood Makes Bullish Move On Baidu: Ark Adds 30K+ Shares Amid China-US Trade Thaw</a></li>
</ul>
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Elliott Management Scores Key Win In Phillips 66 Proxy Fight As ISS Backs All Four Board Nominees Ahead Of May 21 Vote

Barclays analyst Theresa Chen maintains Phillips 66 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSX#NYSE">PSX</a>) with a Equal-Weight and raises the price target from $106 to $115.

Barclays Maintains Equal-Weight on Phillips 66, Raises Price Target to $115

ARIS

CHRD

CRGY

FANG

LBRT

PTEN

PUMP

VIST

WFRD

Shares of energy stocks are trading higher amid a rise in the price of oil after the US and China agreed to a temporary reduction in most tariffs. The commodity may be experiencing strength amid escalating conflict between Pakistan and India.

Provides Clarity on Important Topics where Elliott Has Sought to Mislead Investors
Reiterates Strength of Company's Transformative Strategy and the Valuable Skills of Phillips 66's Board and Nominees in Contrast to Elliott's Risky, Misleading Analysis and Conflicted Nominees
Phillips 66 Urges Shareholders to Vote "FOR" ONLY Phillips 66's Nominees on the WHITE Proxy Card
Phillips 66 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSX#NYSE">PSX</a>) today provided investors with important information to make fully informed voting decisions at the Phillips 66 Annual Meeting on May 21, 2025. This overview is intended to ensure investors understand the facts on these critical topics as they assess how to cast their upcoming vote.
Reliable, Long-Term Value Creation
<ul>
<li>Since Mark Lashier became President &amp; CEO, Phillips 66 outperformed against relevant benchmarks, delivering total shareholder returns of 67% (compared to the S&amp;P 500 Energy at 45%, and our Synthetic Proxy Peer Median1 at 42%).2</li>
<li>In under 3 years, the Company returned over $14 billion to shareholders through share repurchases and dividends. We grew our dividend at a 15% CAGR since the spinoff3 in 2012, and our annual dividend paid increased every year.</li>
<li>While the Board recognizes the reliable returns we have provided for our shareholders, we are never satisfied and continuously review our portfolio with a sharp focus on long-term value creation.</li>
</ul>
Investors and analysts recognize the long-term potential inherent in the execution of our transformational strategy, which is in its early innings:
"PSX remains a Large Cap refining top pick. PSX's management team is focused on delivering growth at attractive returns, and further diversification and improvements to refining uptime might combine to restore PSX's premium positioning. We are Overweight rated." (Wells Fargo (4/25/2025))4
Effective Board Governance
<ul>
<li>Elliott helped to select Bob Pease and he has proven to be a constructive challenger in the boardroom. As Bob has directly stated, he supports the Board because it is actively working to get to the right answer, not protecting any individual's interests.</li>
<li>The Phillips 66 Board has demonstrated an ability to consistently refresh the boardroom. To ensure fresh and independent viewpoints, we have added five new independent directors in the past four years and two new nominees stand for election at this year's Annual Meeting.</li>
<li>Our directors and nominees have unparallelled experience taking decisive and transformative action when it makes sense, and together theyhave overseen more than $300 B in breakup or major divestiture transactions.</li>
</ul>
"[Mark Lashier] stressed that the board has taken a look at strategic options in the past and continues to do so regularly. As such, questions surrounding the makeup of the portfolio have been asked inside the boardroom. And answered. He also added there are plenty of folks in the boardroom who have been involved in spinoffs elsewhere and they'd be the kind of people who'd be raising their hand if they thought this one made sense. Lastly, he pointed out that "incredible dis-synergies" and "massive tax burdens" would come from midstream monetization. In today's deck, PSX claims these costs could amount to $28/share."(Gordon Haskett (4/28/2025))4
Elliott's Flawed Thesis to Separate Midstream and Sell CPChem
<ul>
<li>The Board has absolutely evaluated a breakup of Midstream and sale of CPChem, and following meaningful consideration, came to the conclusion that neither action is in the best interest of long-term shareholders at this time.</li>
<li>Simply put, Elliott's analysis is based on speculative analysis and flawed assumptions:
<ul>
<li>Elliott's $50 billion Midstream analysis ignores or significantly underestimates tax leakage, dis-synergies, buying power of potential buyers, among other factors that would destroy value uplift in a sale and/or spin scenario.</li>
<li>Elliott's valuation of CPChem has appreciated by 50% to $15 billion since 2023, while Chemical peers have traded down 19%5 during the same time frame.</li>
<li>We have carefully evaluated and disclosed important details around Elliott's flawed analysis in our recent investor presentation, which outlines the facts around the costs and risks of a CPChem sale or Midstream spin and the long-term value of the integrated business.</li>
</ul>
</li>
</ul>
We know the market recognizes Elliott's analysis is based on speculative valuations and flawed assumptions:
"Sale of companies may not work as: 1) buyers for these large assets are limited, 2) tax leakage could be high, 3) standalone Refining multiple may suffer (PSX is trading at a premium to MPC on standalone Refining)." (Citi (3/14/2025))4
"We believe selling CPChem ahead of two large projects coming online and close to the bottom of the margin cycle may not be the right idea." (Citi (2/13/2025)) 4
Refining Performance
<ul>
<li>Refining performance has been improving meaningfully, and we remain committed to continuously increasing margins in our Refining business.</li>
<li>As a result of optimizing our integrated value chain and cost reduction efforts, our R&amp;M EBITDA outperforms our core peer group by $2.80 per barrel6 in the Central Corridor and is in-line globally.</li>
<li>Between 2022 and 2024, Phillips 66 reduced refining adjusted controllable costs by $1.08 per barrel7, a 15% improvement and 44% above our original $0.75 per barrel target. These results surpassed both Marathon and Valero's respective cost improvements over the same period.7</li>
<li>By 2027, we aim to further reduce refining adjusted controllable costs from $5.90 to $5.50 per barrel.8 We expect that every $0.50 per barrel of cost reduction will improve adjusted EBITDA by roughly $315 million.9</li>
</ul>
We know the market sees the progress we are making:
"[We] recently analyzed PSX refining EBITDA per barrel on a like-for-like basis with peers, adjusting for Marketing, Midstream, and turnaround accounting. We found that PSX performs in-line with peers based on our analysis … This is better than the consensus view that PSX refining earnings lags peers." (TD Cowen (4/27/2025)) 4
"Management highlighted the completion of its large turnaround program, which should support improved refining earnings through the remainder of the year. We note the company remains focused on improving operational execution and yields across its refining footprint though accretive capital investments." (Goldman Sachs (5/1/2025)) 4
The Risk of Elliott's Nominees
<ul>
<li>Elliott's nominees, who have histories of value destruction, pose a risk to shareholders' investments and have redundant experience relative to our more qualified nominees.</li>
<li>Sigmund Cornelius and Brian Coffman both hold concerning and poorly disclosed ties to Elliott and Gregory Goff (CEO of Amber Energy, an Elliott portfolio company, who is pursuing an acquisition of CITGO, our direct competitor), creating serious questions about their ability to act in the best interests of all Phillips 66 shareholders.</li>
<li>There are serious questions about Elliott's expectation of director loyalty. Elliott's attempt to replace Bob Pease while denying Phillips 66 access to interview and evaluate its nominees is a clear testament to the activist's expectation of loyalty rather than true independence.</li>
</ul>
Phillips 66 Has the Right Nominees
<ul>
<li>John Lowe has over 30 years of experience in the energy sector and has created tangible value both in his executive and board positions at publicly traded energy companies.</li>
<li>Bob Pease, who we appointed with support from Elliott, has extensive refining and commercial experience from his over 39-year career, and his leadership overseeing major corporate transformations has made him a highly effective Director.</li>
<li>Nigel Hearne has substantial international upstream and downstream operating experience and will provide valuable refining operations and HS&amp;E expertise.</li>
<li>Howard Ungerleider holds over 30 years of chemicals leadership experience and oversaw the financial complexities of one of the largest and most complex mergers and spin-off transactions in recent history as CFO of DowDuPont.</li>
</ul>
Your Vote Matters
Phillips 66's Board of Directors urges shareholders to use only the WHITE proxy card to vote:
<ul>
<li>"FOR" all four of the candidates proposed by the Company and not Elliott's four nominees;</li>
<li>"FOR" management's proposal to approve the declassification of the Board of Directors; and</li>
<li>"AGAINST" Elliott's proposal requiring annual director resignations, which implementing would violate Delaware law and put your Board at significant legal and reputational risk</li>
</ul>
The Board strongly recommends that shareholders safeguard their investment in Phillips 66 by casting their vote as soon as possible, regardless of plans to attend the Annual Meeting virtually on May 21, 2025.
Shareholders may receive materials from Elliott Management that say "gold proxy card" or "gold voting instructions" or similar. Phillips 66 recommends that shareholders DISCARD any Gold voting materials they may receive from Elliott. Shareholders may cancel out any vote made using a Gold proxy card by voting again TODAY using the Company's WHITE proxy card. Only the latest-dated vote will count.

Phillips 66 Reaffirms Commitment To Long-Term Value Through Transformational Strategy, Operational Improvements, And Strategic Portfolio Review While Rejecting Elliott's Breakup Plan; Says By 2027, Aims To Further Reduce Refining Adj Controllable Costs From $5.90 To $5.50 Per Barrel, Expect That Every $0.50 Per Barrel Of Cost Reduction Will Improve Adjusted EBITDA By Roughly $315M; Urges Shareholders To Vote 'Against' Elliott's Proposal

PSX Leadership Supports Poor Performance and the Status Quo&nbsp;
Elliott's "Streamline 66" Plan Would Create a Stronger Phillips 66 Based on Experience and Results, Not Rhetoric&nbsp;
Visit <a href="https://c212.net/c/link/?t=0&amp;l=en&amp;o=4421548-1&amp;h=103704435&amp;u=https%3A%2F%2Fstreamline66.com%2Fpresentations%2F&amp;a=Streamline66.com">Streamline66.com</a> to Download the Full Presentation
WEST PALM BEACH, Fla., May 6, 2025 /PRNewswire/ -- Elliott Investment Management L.P. ("Elliott"), which manages funds that together make it a top-five shareholder in Phillips 66 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSX#NYSE">PSX</a>) (the "Company" or "Phillips"), today released an investor presentation titled "Streamline 66: The Choice for Shareholders."
Elliott presented Phillips 66 shareholders with a simple choice ahead of the Annual General Meeting on May 21st. Do shareholders want to support the current leadership team, which considers its performance acceptable and is committed to the status quo? Or do shareholders want to elect shareholder-nominated directors empowered to drive accountability and improve long-term performance?

Elliott Management Presents The Choice For Phillips 66 Shareholders; Says "Streamline 66" Plan Would Create A Stronger Phillips 66 Based On Experience And Results, Not Rhetoric

Asserts that the Company's Current Directors Have Allowed a Culture of Complacency and Deference to Management to Take Root in the Boardroom
Debunks Phillips 66's Misleading Claims&nbsp; &nbsp;
Urges Shareholders to Help Phillips 66 Unlock its Full Value-Creation Potential by Voting on the Gold Card for Elliott's Four Independent Nominees
WEST PALM BEACH, Fla., May 2, 2025 /PRNewswire/ -- Elliott Investment Management&nbsp;L.P. ("Elliott"), which manages funds that together make it a top-five shareholder in Phillips 66 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSX#NYSE">PSX</a>) (the "Company" or "Phillips"), today sent a letter to the Company's shareholders highlighting the continuous poor corporate governance and disingenuous shareholder engagement that Phillips 66 has demonstrated over the more than 18 months that Elliott has sought to work with the Company. As an appendix to the letter, Elliott also included a detailed refutation of the misleading "questions" and claims Phillips 66 has published in an attempt to distract shareholders from the Company's persistent&nbsp;underperformance, culture of complacency and broken governance.&nbsp;&nbsp;&nbsp;

Elliott Sends Letter To Shareholders; Asserts That The Company's Current Directors Have Allowed A Culture Of Complacency And Deference To Management To Take Root In The Boardroom

JP Morgan analyst John Royall maintains Phillips 66 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSX#NYSE">PSX</a>) with a Overweight and lowers the price target from $138 to $131.

JP Morgan Maintains Overweight on Phillips 66, Lowers Price Target to $131

UBS analyst Spiro Dounis maintains Phillips 66 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSX#NYSE">PSX</a>) with a Buy and lowers the price target from $144 to $140.

UBS Maintains Buy on Phillips 66, Lowers Price Target to $140

Phillips 66 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSX#NYSE">PSX</a>) has been analyzed by 9 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.
In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.
<table>
<thead>
<tr>
<th></th>
<th align="right">Bullish</th>
<th align="right">Somewhat Bullish</th>
<th align="right">Indifferent</th>
<th align="right">Somewhat Bearish</th>
<th align="right">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td align="right">0</td>
<td align="right">4</td>
<td align="right">5</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td align="right">0</td>
<td align="right">2</td>
<td align="right">3</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">2</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
</tbody>
</table>
Analysts have set 12-month price targets for Phillips 66, revealing an average target of $134.56, a high estimate of $162.00, and a low estimate of $106.00. Highlighting a 4.72% decrease, the current average has fallen from the previous average price target of $141.22. 
<img src="https://www.benzinga.com/files/images/story/2025/1745848818_0.png" alt="price target chart" />
<h2>Investigating Analyst Ratings: An Elaborate Study</h2>
The standing of Phillips 66 among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
&#x7C; Analyst &#x7C; Analyst Firm &#x7C; Action Taken &#x7C; Rating &#x7C;Current Price Target&#x7C; Prior Price Target &#x7C; 
&#x7C;--------------------&#x7C;--------------------&#x7C;---------------&#x7C;-----------------&#x7C;--------------------&#x7C;--------------------&#x7C; 
&#x7C;Roger Read &#x7C;Wells Fargo &#x7C;Lowers &#x7C;Overweight &#x7C; $149.00&#x7C;$162.00 &#x7C; 
&#x7C;Connor Lynagh &#x7C;Morgan Stanley &#x7C;Lowers &#x7C;Equal-Weight &#x7C; $122.00&#x7C;$140.00 &#x7C; 
&#x7C;Paul Cheng &#x7C;Scotiabank &#x7C;Lowers &#x7C;Sector Outperform&#x7C; $133.00&#x7C;$136.00 &#x7C; 
&#x7C;Theresa Chen &#x7C;Barclays &#x7C;Lowers &#x7C;Equal-Weight &#x7C; $106.00&#x7C;$135.00 &#x7C; 
&#x7C;Justin Jenkins &#x7C;Raymond James &#x7C;Lowers &#x7C;Outperform &#x7C; $140.00&#x7C;$150.00 &#x7C; 
&#x7C;Nitin Kumar &#x7C;Mizuho &#x7C;Lowers &#x7C;Neutral &#x7C; $132.00&#x7C;$140.00 &#x7C; 
&#x7C;Neil Mehta &#x7C;Goldman Sachs &#x7C;Maintains &#x7C;Neutral &#x7C; $132.00&#x7C;$132.00 &#x7C; 
&#x7C;Theresa Chen &#x7C;Barclays &#x7C;Raises &#x7C;Equal-Weight &#x7C; $135.00&#x7C;$115.00 &#x7C; 
&#x7C;Roger Read &#x7C;Wells Fargo &#x7C;Raises &#x7C;Overweight &#x7C; $162.00&#x7C;$161.00 &#x7C;
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Phillips 66. This offers insight into analysts' perspectives on the current state of the company.</li>
<li>Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Phillips 66 compared to the broader market.</li>
<li>Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Phillips 66's stock. This examination reveals shifts in analysts' expectations over time.</li>
</ul>
For valuable insights into Phillips 66's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.
<a href="https://www.benzinga.com/quote/PSX/analyst-ratings?adType=benzinga-insights&amp;ad=analyst-ratings&amp;campaign=wallstreetadvantage">Stay up to date on Phillips 66 analyst ratings.</a>
<h2>About Phillips 66</h2>
Phillips 66 is an independent refiner that owns or holds interest in 11 refineries with a total crude throughput capacity of 1.8 million barrels per day, or mmb/d, at the end of 2024. The midstream segment comprises extensive transportation and NGL processing assets. It includes 70,000 miles of crude oil, refined petroleum product, NGL and natural gas pipeline systems, and a comprehensive set of refined petroleum product, NGL and crude oil terminals, gathering and processing plants and fractionation facilities and various other storage and loading facilities. Its CPChem chemical joint venture operates facilities primarily in the United States and the Middle East and produces olefins and polyolefins.
<h3>Key Indicators: Phillips 66's Financial Health</h3>
Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.
Decline in Revenue: Over the 3M period, Phillips 66 faced challenges, resulting in a decline of approximately -11.98% in revenue growth as of 31 December, 2024. This signifies a reduction in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Energy sector.
Net Margin: Phillips 66's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 0.02%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 0.02%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): Phillips 66's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 0.01%, the company showcases efficient use of assets and strong financial health.
Debt Management: Phillips 66's debt-to-equity ratio is below the industry average at 0.73, reflecting a lower dependency on debt financing and a more conservative financial approach.
<h2>Analyst Ratings: What Are They?</h2>
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
Breaking: Wall Street's Next Big Mover
Benzinga's #1 analyst just identified a stock poised for explosive growth. This under-the-radar company could surge 200%+ as major market shifts unfold. <a href="https://www.benzinga.com/premium/ideas/turning-point-trader-checkout-2/?t=Tu1tu3arja3be22tu36&amp;adType=benzinga-insights&amp;ad=analyst-ratings&amp;campaign=wallstreetadvantag">Click here for urgent details</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Comments

Phillips 66

Unusual Options Activity for

Notizie

PARTENAIRE / CONTRIBUTEUR

BENZINGA MONDIAL