#USA #West Palm Beach #Elliott Management #Phillips 66 #Streamline 66

Elliott's Streamline 66 Podcast Episode

Elliott Investment Management L.P., a notable investor in Phillips 66, has released the fifth episode of their podcast series titled "Streamline 66,” featuring a compelling discussion with director nominee Michael Heim. This episode reflects on the intricacies of Phillips 66's operations and explores strategic options that could unlock value from the company's extensive assets.

Michael Heim's Insights

Michael Heim, recognized for his contributions as the founder of Targa Resources and his extensive experience in the energy sector, provides a refreshing perspective on the potential that lies within Phillips 66's infrastructure. His remarks emphasize the quality of the company’s assets, noting that they are well-positioned geographically within the major basins in the United States.

Heim asserts, "The assets are very good… If you look at what they've got on a map, they're in the major basins in the United States." This statement underscores his belief that Phillips 66 can, and should, be a competitive player alongside its peers in the industry.

In addition to recognizing the inherent value of Phillips 66's assets, Heim stresses the importance of leadership and a clear strategy for the company's Midstream division. He elaborates, saying that to facilitate a turnaround, the company needs to align its management team and board towards supporting organic growth, which often yields higher returns than requiring extensive intervention.

"For them to turn things around, Phillips 66 Midstream has to have a strategy and they've got to have a Board that is interested in funding their organic growth," Heim mentions, highlighting the necessity of an incentivized leadership focused on the company's core operations, rather than being solely dependent on refinery performance.

The Potential of Phillips 66

Heim’s confidence in Phillips 66 extends into the operational framework of the company. He expresses optimism that, with the right capital investment and disciplined management practices, Phillips 66 should be able to trade in alignment with the broader midstream market.

"With the right amount of capital and the right discipline, Phillips 66 should be able to trade like a midstream company does. As it improves its reputation with its producers, it ought to trade in parallel with its peers," Heim explains. This reflects a strong belief in the capabilities of the company to reclaim its standing in the competitive landscape.

Listeners can access this episode and prior ones on Streamline66.com/podcast, or through major platforms such as Apple and Spotify. Additionally, viewers of the full episodes can find them on YouTube at Streamline66 Channel.

Engaging with Shareholders

The podcast serves not only as an insightful resource but also as a platform for Elliott to connect with its stakeholders. With a current push to elect four director nominees to the Phillips 66 board, Elliott encourages investors to utilize the GOLD proxy card for their votes. Full details about the proxy statement and additional documents are made readily available, ensuring that shareholders are well-informed.

Elliott's management oversees approximately $72.7 billion in assets and has positioned itself as a major player within the investment landscape. The company dates back to 1977, making it one of the enduring funds in continuous operation.

Conclusion

As Elliott Investment Management continues to examine Phillips 66, the insights shared in the Streamline 66 podcast represent a crucial exploration into the avenues for growth and improvement. The next steps for Phillips 66 will greatly depend on strategic planning and effective governance—elements that are central to restoring competitiveness in a dynamic sector. Follow the podcast for ongoing discussions that shed light on the prospects and challenges facing this significant player in the energy industry.