Bob Pease, an independent member of oil company Phillips 66’s (PSX) Board of Directors, blasted activist investor Elliott Management in a letter. The independent director criticized Elliott’s battle with the company’s board and leadership. That’s interesting, as Pease was added to the Board in February 2024 after an agreement was reached between Phillips 66 and the activist investor.
In his letter to PSX shareholders, Pease notes that Elliott Management is now lobbying for his removal from the Board. The activist investor has presented four new nominees to join the board, which would include replacing Pease. That’s despite him joining the Board last year with Elliott’s backing.
Pease Criticized Elliott’s Communications
In his letter to PSX investors, Pease said Elliott Management’s communications with the company were strange. He highlighted “long silences, followed by rapid public action.” Pease said the Board had a “clear commitment to getting to the right answer but a real struggle to understand and engage with an apparently highly distracted shareholder in Elliott.”
Phillips 66 can’t ignore Elliott as the activist investor has built a $2.5 billion stake in the company. Instead, Pease is seeking to sway other investors to the company’s side. He ensured them that Phillips 66 is acting in the interest of shareholders and denies Elliott’s criticisms of its operations.
Elliott Management has been throwing its weight around in the oil industry lately. The company recently shorted Shell (SHEL) and TotalEnergies (TTE), while building a stake in BP (BP).
Is PSX Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Phillips 66 is Moderate Buy based on eight Buy and seven Hold ratings over the last three months. With that comes an average price target of $138.57, a high of $162, and a low of $126. This represents a potential 12.44% upside for PSX stock.
