Shares in Phillips 66 have fallen more than 15% in New York trading over the last 12 months. (Daniel Acker/Bloomberg News)
Elliott Investment Management is heading toward a proxy battle with Phillips 66 after failing to reach an agreement with the energy group’s leadership on a path to improving performance.
The activist investor has nominated seven directors including Elliott partner John Pike for election to the board of Phillips 66, according to a statement March 4. The move comes after Elliott met with Phillips 66 this week in an attempt to find a way to avoid a public proxy battle, yet no such settlement has been reached.
“Elliott identified three initiatives that it believes are critical to real progress finally occurring at Phillips: portfolio simplification; an operating review; and enhanced oversight,” Elliott said in the statement. “The director nominees announced today will bring the right experience and objective perspectives to the board as it executes the best path forward.”
The nominees also include:
- Brian Coffman, former CEO at refiner Motiva Enterprises.
- Sigmund Cornelius, former chief financial officer of ConocoPhillips.
- Michael Heim, former chief operating officer of Targa Resources Corp., the energy pipeline company.
- Alan Hirshberg, ConocoPhillips’ former executive vice president of production, drilling and projects.
- Gillian Hobson, a former partner at energy-focused law firm Vinson & Elkins.
- Stacy Nieuwoudt, former energy and industrials analyst at Citadel Securities.
Representatives for Elliott and Phillips 66 declined to comment.
Elliott last month disclosed a stake of more than $2.5 billion in Phillips 66, saying in a letter at the time that there was an urgent need for the Houston-based company to “pursue an alternative path.” The activist began pressing for changes at Phillips 66 in 2023 and has called for, among other things, the sale of a pipeline business and more ambitious refining targets.
Phillips 66’s board is led by Chairman and CEO Mark Lashier. The company has been working with Elliott and last year said it would name Robert Pease, a former president of Shell Trading Co., to its board to provide more refining experience. But its stock has continued to lag.
Shares in Phillips 66 have fallen more than 15% in New York trading over the last 12 months, giving the company a market value of about $50 billion. A representative for Phillips 66 declined to comment.
Led by Paul Singer, Elliott is the largest activist investment firm and has successfully pushed for changes at some of the world’s biggest companies. Earlier this year, it emerged with a stake in BP Plc. Bloomberg News has reported that Elliott is ramping up pressure on the London-listed oil major after being underwhelmed by a recent strategy overhaul.
