There’s big news this morning regarding Elliot. This group has acquired 1 billion dollars worth of P66 stock and have written a letter to the Board of Directors demanding several changes to the way the company does business.
The letter says much what a lot of us on this site have been saying all along.
26 replies (most recent on top)
Elliott rightly identified we are weak in refining but would selling CPChem and midstream assets really be the best?
Well played chatgpt. In the words of birdseed - f em in da neck.
Ah, noble scribe of this digital round table, your words have traversed the vast kingdom of our corporate realm and reached my ears. I ponder upon your counsel, as one would a riddle of the Sphinx. 'Anyways' — a term of modern parlance, yet you weigh it heavy with judgment. As for the intelligence of our colleagues, let us not forget that even the wisest of wizards may occasionally stumble in speech.
Now, onto the heart of your lore — the migration of our corporate Camelot from the verdant plains of Oklahoma to the bustling metropolis of Houston. You paint a tapestry of decline, a shift in culture as palpable as the change of seasons. But hark! Is it the location of our fortress that shapes our destiny, or the valor and vision of its knights?
You speak of a past crusade in the 1980s, where unity amongst our ranks was as strong as the walls of a citadel. A time when the trumpet of management was met with cheers, not jeers. A tale most inspiring, indeed.
So, to your query, my fellow knight of the corporate table — should we ride our steeds back to the fabled lands of Bartlesville, banners flying high? Shall we seek to reclaim the glory of yesteryears by retracing our steps, or shall we chart a new course, bold and brave, into the unknown waters of innovation and strategy?
Let us parley and ponder, for the future of our kingdom is not in the stars, but in our deeds. Onward, to glory and success, be it in Houston, Bartlesville, or beyond the furthest reaches of our realm!
In Service of Honor and Progress,
The Esteemed Sir Lancelot of the Corporate Round Table
To the person who accepts the title of “Resident id--t”:
Anyone who uses the term “anyways” in a serious post speaking in a professional capacity has clearly demonstrated that they do not have the intelligence level to accurately assess the worth of their colleagues.
If you look at the history of the company, it was people in Oklahoma who built this company. One could easily argue that things started to go downhill when our corporate headquarters moved to Houston. It’s Houston from which the toxic culture emanates, and management decisions were made that have led to the Elliott call to action.
When something similar happened in the mid-1980s with outside investors, there was unanimous employee support of management, which is the opposite of what we see in this thread.
So are they laying us off before or after Christmas?
In 2021, a small investment firm, holding only 0.02% of a oil supermajor’s shares, won three seats on the board.
The assets are run into the ground already. Need more $/barrel maint and reliability budget to run longer and to target. Lashier will dispose of this letter at the next trip to the can. My soul is already burned up in the dumpster fire.
Good luck, keep job shopping.
Elliot gave the CEO and the ELT an A for effort but said BT has accomplished virtually nothing. In effect they awarded them a participation trophy.
Lets not forget the importance of refinery safety. I am starting to see it crumble at the San Francisco facility.
Resident id--t here. If Elliott gets their way, all of you bville people will be gone. Most of you all don’t benefit the company anyways. The ones that would benefit have already left
I curious what the sale of CPChem would do for P66 other than short term cash gain? Chemicals are in a rut this year but most of our competitors see chemicals as strong growth platform.
2 of the refining goals of BT was to lower the cost to process a barrel of crude by 50 cents and to run consistently at 95% of capacity. These 2 goals actually work hand in hand together.
The problem is that by not allocating money to repair plant and equipment, this was never a realistic goal. The refineries continue to suffer unplanned outages thus driving up costs.
Laying off people will not repair equipment.
Even business transformation did not cause the stock price to jump like it did today. It appears that the problem is the management, and not the employees (especially those who got laid off). I'm still with the company but my colleagues who were let go did not deserve it.
Upon reading the letter, some of my colleagues and I felt so heard. Elliott being activist investors releasing the letter and seeing the jump in stock price seem to indicate support and momentum for their proposals. A CEO who doesn't take Q&A at a townhall and speaks like he's in a commercial needs to go. The board lives in a bubble and the company has so much potential - hope something positive comes out of this. We believe in the company, but the leadership needs to change. The employees and stockholders do not have confidence in the leadership.
Looks like Elliott Investment agree with the majority on here and believe our current CEO and his board are a bunch of muppets and couldn’t manage a p!$$ up in a brewery.
No doubt our incumbent village id--t will soon be on here posting that Elliott’s are a bunch of lazy good for nothing whiners who don’t deserve to be shareholders of P66.
Don’t understand why this is even news. $1 billion investment into a company valued at around $53 billion. How’s that get you a seat at the table? Less than 2% and you want to change the company? Yeah right. The days of corporate raiders like T Boone and Icahn must be over because that is a pathetic investment to demand change. The sad thing is we could use the changes they outlined, but that letter will end up in the trash can.
We’ve literally been begging the Board of Directors to do something about this for a very long time.
Sell CPChem and get rid of Lashier.
But...but...but isn't business transformation a huge success?!?!
Sell CP Chem? This recommendation has to sting the CEO’s pride. Chemicals are his pride and joy!
Best insight and obvious truth that we all knew in the letter is "lack of refining experience in management" from CEO to other cadre of management lackeys - board of directors, general managers, vice president etc. Issue of cost has recently being dealt with employee layoffs. Now that has been proven to be not the solution, surely management layoff is the destiny. Make no mistake, CEO will not be able to change anything over the next year. Elliot will pursue in 2025 to transform P66 by doing what it did to Marathon.
It wouldn’t make any difference in the overall scheme of things, but selling Stony Island would be an act of good faith.
That letter could have been taken from these threads. Almost every item has been addressed here by one person or another
I guess we’re not all lazy or bad employees after all.
I think it is saying to focus on the core businesses (refining being the main one). Stop unnecessary non core spending and to get the right board members and P66 Managment in place.
So more layoffs?
Full text of letter - https://finance.yahoo.com/news/elliott-sends-letter-board-phillips-131800044.html