Phillips 66 Stock Falls as Activist’s Board Slate Yields Mixed Results

Some new board members are coming to Phillips 66 (PSX). Investors may have hoped for a bigger shake-up. 

Shares of the oil refiner were recently down about 6%, putting them among the S&P 500’s biggest daily decliners and sending the shares back to prices last seen in early April. (Read Investopedia’s full daily coverage of today’s markets here.) The company’s market capitalization is near $50 billion, according to Visible Alpha data.

The slide comes as the company, citing preliminary voting, announced four new board members: two of its nominees and two from activist investor Elliott Investment Management, which has been at odds with management regarding the company’s strategy. 

“This vote reflects a belief in our integrated strategy and a recognition that our early results do not yet reflect the full potential of our plan or the value inherent in this business,” CEO Mark Lashier said in a press release. 

Elliott had nominated four directors. “Today’s vote sends a clear message: Shareholders demand meaningful change at Phillips 66,” it said in a press release. “As one of Phillips 66’s largest investors, Elliott will continue to actively engage with the Company while holding management and the Board accountable for delivering on their commitment to improve shareholder value.”

Shares of Phillips are roughly flat this year, though they’ve lost about a fifth of their value over the past 12 months.