Phillips 66 shares slip on report Elliott has built over $2.5 bln stake

Investing.com - Shares in Phillips 66 (NYSE:PSX) rose in premarket U.S. trading on Tuesday after the Wall Street Journal reported that activist investor Elliott Investment Management has built up an over $2.5 billion stake in the oil refiner and is seeking changes to boost the company’s laggard stock price.

The biggest change sought by Elliott is the divestiture of Phillips 66’s Houston-based midstream business, which is a major revenue driver for the firm, the WSJ report said.

Elliott’s recent stake build in the refiner represents renewed pressure from the activist investor for changes at Phillips 66. Elliott previously disclosed a $1 billion stake in the refiner and has supported a performance improvement plan to boost shareholder returns.

The WSJ report comes just a week after Phillips 66 clocked weaker fourth-quarter earnings, as the company grappled with a sharp decline in refining margins.

Increased refining capacity and softer demand in the U.S. and China, the world’s biggest oil consumers, have weighed on Phillips 66 in recent years.

The company has outlined plans to bolster its midstream business, including an agreement to acquire EPIC’s NGL business to boost its footprint in the Permian basin. The move has helped to bolster Phillips 66’s shares, which are trading up 8% so far in 2025.

But the company’s stock price slid 14% in 2024, as it faced headwinds from tepid demand and sluggish refining margins.

(Ambar Warrick contributed reporting.)