Phillips 66 (PSX) Faces Elliott’s Criticism Over Peer Benchmarking, Governance, and Underperformance

The Elliott presentation (April 28, 2025) targeting Phillips 66 argues that management is misrepresenting performance through flawed metrics and peer comparisons. Elliott claims the company uses a biased TSR methodology that understates years of operational underperformance, excludes the most relevant peers (Valero, Marathon), and artificially reduces the weight of the refining segment despite it being core to the business. The fund criticizes CEO Mark Lashier’s track record, noting weak refining operations during his tenure. Elliott contrasts this with stronger peers and past successful activist engagements (e.g., Arconic/Howmet), framing its campaign as necessary to restore accountability and highlight true underperformance at Phillips 66.