Phillips 66’s stock
PSX,
rose 6% in premarket trade Wednesday, after Elliott Investment Management LP said it has accrued a roughly $1 billion investment in the energy company and sees potential upside of about 75%. The hedge fund of activist investor Paul Singer published a letter to the company’s management outlining how it can treat what it views as underperformance, including adding new directors backed by Elliott. While the company’s 2025 targets are “admirable,” investors “are skeptical of the company’s ability to accomplish them. said the fund. “At present, we believe Mr. Lashier and the rest of the management team deserve investor maintain so long as they display meaningful progress against these targets. At the same time, we find the market’s skepticism to be understandable, and we believe the Board must take several steps to reassure investors that Phillips 66 is in the best possible position to accomplish its value-creation potential.” Phillips 66, which is headed by CEO Mark Lashier, was spun out of ConocoPhillips in 2012. The stock has gained 13% in the year to date, while the S&P 500
SPX,
has gained 18.6%.
