https://streamline66.com/wp-content/uploads/2025/04/Streamline-66-Elliotts-Perspectives-on-Value-Creation.pdf
Such a great report, professional, world class level, great Elliotts!
7 replies (most recent on top)
I see that an Elliott salesperson wrote a dissertation on how they will enhance value. Problem is that the multiples math is all garbage in, garbage out. Their favorite darling child MPC has an implied Refining multiple that trades like death when you back out MPLX value. But, like the locusts that they are, they blew out of that trade once they extracted a pound of flesh
P66 has plenty of problems and potential areas for cost improvements. However, the mental gymnastics that the Elliott presentation engages in to get to $200 / share is super suspect. The problem is that Elliott team is very smart. So, all the fake math is actually pretty disingenuous since there is no way that they believe some of the nonsense justification. The deck doesn't have anything new in it and makes them look like whiny b1tches.
Slide 39 on letting consultants run the company into a ditch is spot on.
Both presentations stretch the truth and exaggerate the others comments. That is the nature of it.
The real question: should Phillips 66 exist in its current construct and does it provide the best return for shareholders?
Phillips 66 says that it has evaluated it and determined that integration creates more value. Elliott says experience and portfolio theory says more value is unlocked when you separate the businesses and let investors create their own portfolios with companies that have different risk/reward profiles.
You need to be the judge, Phillips employees and Shareholders. But ask yourself before you vote:
Does this board ask the tough questions of the management team and hold them accountable? Where is the evidence this is happening?
Is this Board the continuation of the board under Greg and in need of refresh? Why are some on for 10+ years and not up for election this time around?
Why shouldn’t the Board be made to stand for election each year? If they are doing their job what do they fear?
What is the issue with a separate Chairman role that is not the CEO? Isn’t independence required to hold people accountable?
Does this ELT set clear priorities, establish targets, integrate them into multi year plans, hold rigorous discussions on performance versus those targets, and hold people accountable?
Do you think your business has received the capital it needs to invest back into the business? Would there be better focus on maintenance and growth investment if Refining could take its cash and invest in Refining?
Do we know how Commercial contributes to the bottom line? Is it clear? Is it adding to, or reducing Refining earnings?
Does this ELT set an example by doing what they require of all employees, or do they tolerate bad behavior among themselves while having a different standard for others?
When is the last time you saw your ELT member take a meeting on the floor you sit on? Have you ever seen M@rk do it?
Has this ELT delivered results for shareholders without the influence of Elliott coming into the shares?
Were people held accountable when there were cost overruns on the construction of Rodeo Renewed and in the SAP project?
Have the SAP implementation issues been resolved or is this just leading to more work? Are you working more to compensate?
Are you more likely to see a $200 share price with management or Elliott? When?
What are you getting with Phillips that you could not get by buying Valero and Targa and LyondellBasel?
Is nostalgia preventing this management team from doing the right thing? The board?
Employees, are you really safer working for a desperate management team that needs to prove results and knows the easiest cost lever is to reduce you?
Worst use of the English language I have ever seen.
Thought it was sh-t. We were all waiting for the grand reveal. Like watching a three hour movie and it ends up being someone’s dream. Collective meh. So disappointing. Come on Elliott…you guys are supposed to be good at this. Don’t have your business model destroyed by these bunch of jokers.
I have the popcorn out waiting for the big reveal. Hurry up! We are getting impatient!!!
Great presentation!