Phillips 66 ‘plans to continue a constructive dialogue’ with Elliott Investment

Phillips 66 issued the following statement regarding a letter from Elliott Investment Management L.P.: “The Phillips 66 Board and management team welcome the perspectives of our shareholders and value their input. Over the last several weeks, the company has held discussions with Elliott and plans to continue a constructive dialogue. We agree with Elliott that successful execution of our strategic priorities will drive substantial stock price performance and believe that we have the right management team and Board in place to deliver long-term, sustainable value. We also appreciate that Elliott recognizes the value-creation potential of the strategic priorities that we have been executing since our Investor Day in November 2022. Given our substantial progress and confidence in exceeding the original targets, on Oct. 27, 2023, we announced the following enhancements: Raise shareholder distributions target to a range of $13 billion to $15 billion; Monetize over $3 billion of non-core assets; Return at least 50% of operating cash flow to shareholders; Increase business transformation run-rate savings target to $1.4 billion by year-end 2024, including a $1 per barrel cost reduction in Refining; Raise mid-cycle adjusted EBITDA target to $14 billion by 2025.”