Spin midstream off, use the cash to buy back shares, pump stock price, bail. No real value created. Look at psx market cap vs outstanding shares compared to its peers. Psx has a higher market cap (more money invested in it) but it’s divided by more outstanding shares making the individual stock price lower.
Bumping from @12f+1jrfpvxmh for being on point.
One major problem with spinning off CPChem is that its market value today and looking forward to the near future is nowhere near what Elliott assigned in their analysis. DOW chemical for example has fallen from a 50billion market cap (dec 2024) to a 21 billion market cap today (4/25/2025). CPChem is a decent chemical asset but is smaller than DOW for sure. Chevron has rights of first refusal and would probably offer less than half today for the P66 share of CPChem. Furthermore as a private sell to Chevron no market value can be realized through stock appreciation for investors.
Responding to earlier question of why so many employees are willing to listen to Elliott’s argument…
It is because many of their suggestions are the same as what has been surfaced internally, yet ignored by the current ELT and some of the Leaders Group-loss of focus on the operations. People that speak up are viewed as disposable or a nuisance. This has been going on for years in refining when people (like me) hire in from the outside and offer another view on how to do things, express concerns about the number of people at the sites, or the inefficiency of how we run maintenance and reliability centrally, but are shut down by site managers that are not held accountable for the entirety of their operation.
Change is needed. Elliott may not be the best solution but if management won’t change, what options are we left with? This is our company as well! We at the sites also have a lot more riding on the success of the company than the ELT that are making far above the pay of our refining competitors and have a golden parachute despite the outcome of the upcoming vote.
Elliot is buying Citgo and wants P66 refining to combine them and make the second or third largest refiner. The sale of Midstream and CPChem will give P66 massive cash and leverage after the combination to buy one or two small refiners to make the biggest refiner in the country. That's what I would do if I were Elliott. They would still be sitting on cash and be in fat city.
Agreed.
Fun to watch the social media teams from Elliot and PSX troll back and forth in here
@km+1 . .wow! so that took only minutes for a shill reply even on a weekend, the pay really that good?
Are there faxed over daily talking points trolls use, or say a cheat sheet? do you get text notifications or a bonus for rapid replies? AI bot much?
401k, dental and health? ask'in for a friend,
Elliotts plan is absolutely necessary. Arguments made by anyone that stoke future fear of potential job losses under Elliott's plan are making such statements to protect the board and existing executive leadership. Job losses have been rampant under current leadership for years. Change means their vision has failed and our executives would rather bring the house down with mediocre to low performing employees than to admit their failure and let divisions and employees propser independently. Nice try with the fear mongering tactics though.
Elliot using trolls and shills on this posting board smacks of desperation. Certainly should show anyone here wondering about who they really are.
They've played this game repeatedly, they ride into town, shoot up the place and ride out with the claim deed won overnight in a questionable card-game along with the shady sheriff. Meanwhile the old gold miner is discovered face down in the horse trough.
Any investment firm with a track record of buying, milking and disappearing is horrible for the employees!l and the industry as a whole. I imagine the long term strategy for this global takeover is to weaken US refining and this investment firm already took a chunk out of BP. They have their own energy company Amber, so how is this not a conflict of interest? Regardless of what anyone thinks of the CEO or the leaving board/ELT, this is an all around pump and dump.
Nah, get out of here with that. An integrated company is more robust and able to weather downturns. Elliot's plan is to chop us up, extract value and bail before we get parted out and dissolved. It's not in shareholders interest to make a company that can't stand up to a year or two of downturn.
@OP what exactly is your definition of “real value”? If the stock prices doubles within three years because of Elliot’s plan, that sure as he-l seems like real value to me! You do realize you work for PSX shareholders, right? Lmao
P66 has done so many layoffs these past 2 years, as well as WEP salary reducing tactics, so why is Elliott any different.
If GOGo doesn’t go than I’m hoping for Elliott to take control. If they don’t it will be another company.
Worried that ELIOTT will cut jobs and maintenance $ . Person who is worried about this has they been sleeping under rock for past 2 years ? GO GO and ELT did same thing in the name of BT , WEP , AES . Now it came to GO GO position he is fighting it he was ruthless firing talented people who actually risked their safety everyday.
To the poster worried about Elliott laying off employees.
Did I miss something or hasn’t Go Go been laying employees off for 2 years?
And hasn’t Go Go expressed his desire to layoff more over the next few years?
cannot wait to dump midstream trash
I don’t get why so many people claiming to be employees are for this plan. Do your research about what happens after Elliott is done. Layoffs, cut throat cost cutting including salary reductions, cutting certain maintenance programs, etc.. It’s not sustainable. They’re like a dr-g addict - in it for a short term fix then on to the next one. If you truly want to change things for the better this isn’t it.
Agreed. P66 needs change, but this plan isn't it.