Phillips 66 Jumps on Elliott Stake Report
Shares of Phillips 66 (PSX) surge approximately 4% in intraday trading on Tuesday amidst news of a significant investment by Elliott Investment Management. The Wall Street Journal reports that Elliott has acquired a stake valued at over $2.5 billion in the oil refiner.
Sources familiar with the matter indicate that Elliott intends to advocate for operational streamlining, including potentially spinning off or selling Phillips 66's midstream business. This move aims to enhance the company's lagging share price. Midstream businesses focus on transportation and movement of raw materials to refineries for oil and gas processing.
Phillips 66 shares have declined over 11% in the past year. Elliott previously disclosed a $1 billion stake in the refiner in 2023, leading to the appointment of a director at the request of the activist fund.
Elliott remains highly active, having reportedly amassed a substantial stake in BP (BP) and advocating for strategic changes that the oil giant recently announced. Similarly, Honeywell International (HON) has unveiled plans for a three-way split following pressure from Elliott to break up the company.