Phillips 66 can talk and brag all they want to about how successful BT and other things have been but that doesn’t make it true.
The bottom line is that Phillips 66 financial performance badly lags our 2 main peers.
The proof is in the PSX stock price.
8 replies (most recent on top)
It's not just IT. Sure, waiting three weeks for some guy in Pune to message you on Teams at 2 AM about the critical piece of software that isn't working anymore su-ks, but I'm talking about the massive churn going on at refineries. You know, those things that can explode and ki-l people? People are retiring or finding new jobs rather than put up with BT and the terrible management, so you have super inexperienced people moving into positions of real consequence, and it's not going well. Harbison has even said as much several times.
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The outsourcing of IT functions—driven by management decisions—has resulted in a workforce lacking in experience.
Yeah, if we're going to chop up the business, let's use the money to actually improve the business. I don't care one bit about our stock price, I care about our aging equipment and inexperienced workforce.
Elliot’s whole plan is to spin the midstream cash cow off and use that money to buy back shares to pump the price and then bail. If you don’t like buy backs don’t vote Elliot.
BT, other efforts like it, WEP... have all been a disaster for Phillips 66
Buy back shares and then there is more earnings/cash available per share for distribution. Do the real math on dividends and share price appreciation. A simple share price chart gives you just one piece of the story. Oh, and it is the math Elliott is doing in their materials as well.
How exactly are shareholders rewarded by share buybacks? Oh yeah, the share price must increase! A two-year price chart shows that PSX DECLINED in value from $105 to $103. Suffice it to say management has MISALLOCATED billions of dollars of capital in the form of share buybacks over the past two years when the share price was above $105.
Do you even know how share buybacks work? D-mb post.
D-mb post.
Is Valeros $115 share price better than $100 PSX share price?
What if I told you that PSX has returned more value to shareholders in the form of price appreciation, dividends, and share buybacks in the past two years? That is real return. That is why our multiple is greater. Share price tells you very little in absolute terms.
D-mb post.