The investors obviously have confidence that Elliot can do what they say they’re going to do as evidenced by PSX stock gaining ~10 dollars a share in just the last few days.
So why fight them on this by hiring high priced advisors? Just give them their 2 board seats and follow their recommendations!
The ELT has almost 2 years to produce results and so far hasn’t done so!
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I got pumped and dumped by rlt whilst climbing their ladder to the next location.
Nothing in Elliot's past indicates they are going to "back off". For reference see what they did at Marathon and a company by the name of Crown Castle just to name a couple of companies they've invested in. They were able to gain board seats, sell off unwanted assets and other changes that led to higher share prices.
By the way, the CEO was forced out at both of those companies.
We haven't heard any news lately, but that doesn't mean Elliot has gone away.
Elliot is simply a pump and dump scheme IMO. I saw this happening back in the mid 90’s. They’ll blow and go for a while and then gently pull away with a few hundred million in profit. Just another old trick being reconstituted.
One of the posters in this thread says they love the idea of the sale of CPChem. What would this do for P66 other than short term cash gain? Other posts have stated "Chemicals are in a rut this year but most of our competitors see chemicals as strong growth platform." You can look back at our earnings and see the chemicals impact to the bottom line.
Do you all think $10-20 billion would be reinvested into cash flow assets or would it go to stock buybacks, executive bonuses, and short term dividends to investors. What would Elliott want?
What would you propose we do with the money? Reinvest in refineries? Buy someone else? Build a new refinery? And do you believe these would have better long term growth? Is CPChem really a poor chemicals investment compared to others or even to a refinery?
I don’t know what else Elliot will recommend but I love their idea of selling off CP Chem!
How long will it be before the CEO starts throwing members of the ELT under the bus?
- . .and so who was it that thought creating the 'Dark Tower' in Bartlesville would be a good look? Please tell this was not McKinsey and co. this is tone deaf lacking in insight and management.
I don’t know what Elliot will push but they say we need our refineries to run safely and efficiently so as to minimize LPO. One unplanned outage costs a lot of money.
This gives me hope that they’ll spend money and use employees to get to that point.
What the current ELT is doing is just laying off people and not improving the refineries at all.
I think it's kind of cute that you guys think the sort of recommendations Elliot are going to push are going to be any less painful. Don't get me wrong, I'm all for booting management and putting someone competent in there, but the core of their letter was all around OpEx discipline.
Frankly after having McKinsey crawl up my a-s non-stop around cost and margins, I'm not really interested in MORE of that...
They like to drive the price lower. So their performance shares are higher in quantity. Then retire and let the higher quantity grow.
I hadn’t thought of that. I guess that’s what happens when you’re surrounded by yes people.
not everyone is receptive towards feedback.