Phillips 66 Comments on Letter from Elliott Investment Management
29 Novembro 2023 - 8:20PM
Business Wire
Phillips 66 (NYSE: PSX) today issued the following statement
regarding a letter from Elliott Investment Management L.P.
(Elliott):
The Phillips 66 Board and management team welcome the
perspectives of our shareholders and value their input. Over the
last several weeks, the company has held discussions with Elliott
and plans to continue a constructive dialogue.
We agree with Elliott that successful execution of our strategic
priorities will drive substantial stock price performance and
believe that we have the right management team and Board in place
to deliver long-term, sustainable value.
We also appreciate that Elliott recognizes the value-creation
potential of the strategic priorities that we have been executing
since our Investor Day in November 2022. Given our substantial
progress and confidence in exceeding the original targets, on Oct.
27, 2023, we announced the following enhancements:
- Raise shareholder distributions target to a range of $13
billion to $15 billion
- Monetize over $3 billion of non-core assets
- Return at least 50% of operating cash flow to shareholders
- Increase business transformation run-rate savings target to
$1.4 billion by year-end 2024, including a $1 per barrel cost
reduction in Refining
- Raise mid-cycle adjusted EBITDA target to $14 billion by
2025
Phillips 66 is differentiated by an integrated and diversified
Midstream, Chemicals, Refining, and Marketing and Specialties
portfolio that generates free cash flow through the economic
cycles. For more information, refer to the Investor Update
available on the Phillips 66 Investors site,
phillips66.com/investors.
About Phillips 66
Phillips 66 (NYSE: PSX) manufactures, transports and markets
products that drive the global economy. The diversified energy
company’s portfolio includes Midstream, Chemicals, Refining, and
Marketing and Specialties businesses. Headquartered in Houston,
Phillips 66 has employees around the globe who are committed to
safely and reliably providing energy and improving lives while
pursuing a lower-carbon future. For more information, visit
phillips66.com or follow @Phillips66Co on LinkedIn.
CAUTIONARY STATEMENT FOR THE PURPOSES OF THE
“SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995
This news release contains forward-looking statements within the
meaning of the federal securities laws. Words such as
“anticipated,” “estimated,” “expected,” “planned,” “scheduled,”
“targeted,” “believe,” “continue,” “intend,” “will,” “would,”
“objective,” “goal,” “project,” “efforts,” “strategies” and similar
expressions that convey the prospective nature of events or
outcomes generally indicate forward-looking statements. However,
the absence of these words does not mean that a statement is not
forward-looking. Forward-looking statements included in this news
release are based on management’s expectations, estimates and
projections as of the date they are made. These statements are not
guarantees of future performance and you should not unduly rely on
them as they involve certain risks, uncertainties and assumptions
that are difficult to predict. Therefore, actual outcomes and
results may differ materially from what is expressed or forecast in
such forward-looking statements. Factors that could cause actual
results or events to differ materially from those described in the
forward-looking statements include: fluctuations in NGL, crude oil,
refined petroleum product and natural gas prices, and refining,
marketing and petrochemical margins; changes in governmental
policies or laws that relate to NGL, crude oil, natural gas,
refined petroleum products, or renewable fuels that regulate
profits, pricing, or taxation, or other regulations that limit or
restrict refining, marketing and midstream operations or restrict
exports; the effects of any widespread public health crisis and its
negative impact on commercial activity and demand for refined
petroleum products; our ability to timely obtain or maintain
permits necessary for capital projects; changes to worldwide
government policies relating to renewable fuels and greenhouse gas
emissions that adversely affect programs including the renewable
fuel standards program, low carbon fuel standards and tax credits
for biofuels; our ability to achieve the expected benefits of the
integration of DCP Midstream, LP (DCP), including the realization
of synergies; the success of the company’s business transformation
initiatives and the realization of savings and cost reductions from
actions taken in connection therewith; unexpected changes in costs
for constructing, modifying or operating our facilities; our
ability to successfully complete, or any material delay in the
completion of, asset dispositions or acquisitions that we may
pursue; unexpected difficulties in manufacturing, refining or
transporting our products; the level and success of drilling and
production volumes around our midstream assets; risks and
uncertainties with respect to the actions of actual or potential
competitive suppliers and transporters of refined petroleum
products, renewable fuels or specialty products; lack of, or
disruptions in, adequate and reliable transportation for our NGL,
crude oil, natural gas, and refined products; potential liability
from litigation or for remedial actions, including removal and
reclamation obligations under environmental regulations; failure to
complete construction of capital projects on time and within
budget; our ability to comply with governmental regulations or make
capital expenditures to maintain compliance with laws; limited
access to capital or significantly higher cost of capital related
to illiquidity or uncertainty in the domestic or international
financial markets, which may also impact our ability to repurchase
shares and declare and pay dividends; potential disruption of our
operations due to accidents, weather events, including as a result
of climate change, acts of terrorism or cyberattacks; general
domestic and international economic and political developments
including armed hostilities (including the Russia-Ukraine war),
expropriation of assets, and other political, economic or
diplomatic developments; international monetary conditions and
exchange controls; changes in estimates or projections used to
assess fair value of intangible assets, goodwill and property and
equipment and/or strategic decisions with respect to our asset
portfolio that cause impairment charges; investments required, or
reduced demand for products, as a result of environmental rules and
regulations; changes in tax, environmental and other laws and
regulations (including alternative energy mandates); political and
societal concerns about climate change that could result in changes
to our business or increase expenditures, including
litigation-related expenses; the operation, financing and
distribution decisions of equity affiliates we do not control; and
other economic, business, competitive and/or regulatory factors
affecting Phillips 66’s businesses generally as set forth in our
filings with the Securities and Exchange Commission. Phillips 66 is
under no obligation (and expressly disclaims any such obligation)
to update or alter its forward-looking statements, whether as a
result of new information, future events or otherwise.
Use of Non-GAAP Financial Information — References in
this news release to shareholder distributions refers to the sum of
dividends paid to Phillips 66 stockholders and proceeds used by
Phillips 66 to repurchase shares of its common stock. This news
release also includes the term “mid-cycle adjusted EBITDA,” which
is a non-GAAP financial measure. Mid-cycle adjusted EBITDA, as used
in this release, is a forward-looking non-GAAP financial measure.
EBITDA is defined as estimated net income plus estimated net
interest expense, income taxes, depreciation and amortization.
Adjusted EBITDA is defined as estimated EBITDA plus the
proportional share of selected equity affiliates’ estimated net
interest expense, income taxes, depreciation and amortization less
the portion of estimated adjusted EBITDA attributable to
noncontrolling interests. Net income is the most directly
comparable GAAP financial measure for the consolidated company.
Mid-cycle adjusted EBITDA is defined as the average adjusted EBITDA
generated over a complete economic cycle. Mid-cycle adjusted EBITDA
estimates depend on future levels of revenues and expenses,
including amounts that will be attributable to noncontrolling
interests, which are not reasonably estimable at this time.
Accordingly, we cannot provide a reconciliation between projected
mid-cycle adjusted EBITDA to consolidated net income without
unreasonable effort.
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version on businesswire.com: https://www.businesswire.com/news/home/20231129258140/en/
Jeff Dietert (investors) 832-765-2297 jeff.dietert@p66.com
Owen Simpson (investors) 832-765-2297 owen.simpson@p66.com
Thaddeus Herrick (media) 855-841-2368
thaddeus.f.herrick@p66.com
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