Elliott Investment Management stated that Phillips 66's stock price could nearly double to $200 per share if the company implements significant strategic changes. These changes include selling or spinning off its midstream business, increasing focus on refining operations, and enhancing corporate oversight.
Elliott estimates that net proceeds of $48 billion could be generated from the sale of the midstream business, its interest in CPChem, and JET. This capital could then be used to repurchase between 60% and 90% of the company's outstanding shares and increase the payout ratio to 100% of free cash flow.
The activist investor's projection provides a clear financial target for its 'Streamline66' plan, aiming to unlock what it perceives as undervalued assets within Phillips 66's integrated structure. This proposal highlights Elliott's vision for maximizing shareholder value through portfolio restructuring.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.