Elliott Investment Management has asked a court to order Phillips 66 to require four board seats to stand for election at its annual shareholder meeting. (Source: Shutterstock)
Activist Elliott Investment Management, at odds with Phillips 66 (PSX), fired its latest salvo in court— asking in a suit that Delaware’s Court of Chancery order the company to require four board seats be allowed to stand for election at its annual shareholder meeting, the investment firm said in a March 25 press release.
The move comes after Elliott, which holds a 5.7% stake in the company’s shares underpinned by a $2.5 billion investment, squares off with PSX over the company’s performance. Elliott has also urged Phillips to sell or spin off its midstream business, which the firm has said could generate at least $40 billion for shareholders.
In February, Elliott initially nominated a slate of seven independent candidates for Phillips 66’s board. In March, Mark E. Lashier, Phillips 66 chairman and CEO, responded in a March 4 letter to shareholders that Elliott had made a “series of attacks and proposals regarding monetization of certain business units,” despite financial improvements by the company.
Elliott said the move, among others regarding the board’s composition, violates the company’s governing documents.
After receiving Elliott's notice of director nominations, Phillips announced on Feb. 18 that two sitting directors previously in the 2025 class would not stand for reelection and that the size of the board would be reduced to 12 directors from 14, Elliott said in the press release.
“Despite Elliott privately requesting confirmation, Phillips has still not disclosed how many seats will be up for election or who its nominees will be, requiring Elliott to file a complaint in order to preserve its shareholder rights,” Elliott said.
Recommended Reading
Bottlenecks Holding US Back from NatGas, LNG Dominance
2025-03-13 - North America’s natural gas abundance positions the region to be a reliable power supplier. But regulatory factors are holding the industry back from fully tackling the global energy crisis, experts at CERAWeek said.
Kinder Morgan Sees Strong Gas Market, Despite Political Noise
2025-04-17 - Kinder Morgan is undeterred by “perceived ups and downs” in the natural gas market, said Executive Chairman Rich Kinder during the company’s first earnings call of 2025.
Segrist: American LNG Unaffected by Cut-Off of Russian Gas Supply
2025-02-24 - The last gas pipeline connecting Russia to Western Europe has shut down, but don’t expect a follow-on effect for U.S. LNG demand.
FERC Approves Enstor’s Salt-Dome Storage Expansion in Mississippi
2025-04-15 - The Mississippi Hub’s total natural gas capacity will reach approximately 56.3 Bcf, Enstor Gas said.
US NatGas Dominance Collides with Permitting, Tariffs, Layoffs
2025-03-16 - Executives at BP, Sempra Infrastructure and the American Petroleum Institute weighed in on U.S. natural gas prowess and the obstacles that could stand in the way: snagged permitting, prohibitive steel tariffs and layoffs of federal workers needed to approve projects.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.