Elliott Investment Management, holder of a $2.5 billion stake in Phillips 66, is pushing for changes in the midstream and downstream company to “realize its full potential.”

In a Feb. 11 letter, Elliott pushed for three initiatives: portfolio simplification, an operating overview and enhanced oversight. Elliott also nominated seven independent candidates to Phillips 66’s board for election at the 2025 annual shareholders meeting.

Elliott also urged Phillips to sell or spin off its midstream business—claiming a sale could generate in the neighborhood of $45 billion for shareholders.

“Phillips has failed to make meaningful progress on its targets. It abandoned serious collaboration on board and corporate governance improvements by failing to honor its commitment to add a second director and reverting to a combined CEO-Chairman role. And despite possessing valuable assets and a clear, achievable path to realizing their full potential, Phillips’ total shareholder return has continued to disappoint, lagging well behind peers,” Elliott said in the letter.

Elliott said the nominated directors will bolster accountability and improve oversight of Phillips’ management initiatives.

Elliott’s following nominees hold experience related to improving refining and midstream operations, evaluating strategic transactions and enhancing corporate governance, the company said:

  • Brian Coffman—former CEO of Motiva Enterprises and former senior vice president of refining at Andeavor;
  • Sigmund Cornelius—former senior vice president and CFO of ConocoPhillips;
  • Michael Heim—a founder and former president and COO of Targa Resources;
  • Alan Hirshberg—former executive vice president, production, drilling and projects at ConocoPhillips;
  • Gillian Hobson—former M&A and capital markets partner at Vinson & Elkins, with focus on midstream transactions;
  • Stacy Nieuwoudt—former energy and industrials analyst at Citadel; and
  • John Pike—partner at Elliott Investment Management.

Phillips said Feb. 18 that two sitting directors previously in the 2025 class, Gary Adams and Denise Ramos, would not stand for reelection at the company's 2025 annual meeting, and that the size of the board would be reduced from 14 to 12 directors following the meeting.

Phillips has not disclosed how many seats will now be up for election or who it will be nominating. 

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