2024-03-26 18:55:10
Activist investor Elliott Investment Management has agreed to the performance improvement plan that U.S. oil refiner Phillips 66 has implemented to increase shareholder returns and the share price, Chief Executive Mark Lashier said during from an interview on Tuesday.
“They adhered to the plans we already had in place,” the CEO of one of the largest U.S. oil refiners said during a briefing at its Houston headquarters.
Last fall, Mr. Elliott sent a letter to the company’s board of directors, in which he announced a billion-dollar stake in the company and requested that members be added to the board of directors. administration and that emphasis be placed on improving the oil refining activity.
Since the activist firm made its recommendations public, Phillips 66 shares have climbed 32%, to $156.37 per share, while the S&P 500 index has gained 15%.
“Elliott sees the progress. I think they’ve done well, as have all the investors who have invested in stocks over the last couple of years,” he said.
Last month, Phillips 66 named Robert Pease, a refining veteran, as a director, and said it was looking to add a second candidate to its 14-person board. Last fall, Mr. Elliott urged the company to appoint directors with refining experience, which would help address the sector’s underperformance and accelerate cost-cutting efforts.
The refiner and pipeline operator’s performance improved in the fourth quarter of 2023, thanks to higher margins in refining and gains made by its oil pipelines unit, following a two-year period during which the company’s overall profits have been lower than those of its rivals.
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