Elliott Investment Management Increases Stake in Phillips 66 Amid HPE Acquisition

Elliott Investment Management has raised its stake in Phillips 66, taking in HPE. Phillips 66 is an oil group with four divisions: petroleum products trading and distribution, refining, processing and storage, and other operations. The group operates over 8,500 service stations in the US and Europe and has 12 refineries in the US and Europe. Net sales are primarily generated in the US, the UK, and Germany.

Elliott Investment Management has recently increased its holdings in Phillips 66 (NYSE:PSX), taking a new position in the oil and gas company. This move follows the firm's acquisition of 1,267,262 shares of Phillips 66, valued at approximately $156 million, according to the company's latest Form 13F filing with the Securities and Exchange Commission [1].

Phillips 66, a leading energy manufacturing and logistics company, operates in the United States, the United Kingdom, Germany, and internationally. The company's four primary segments include Midstream, Chemicals, Refining, and Marketing and Specialties (M&S). Phillips 66's operations span over 8,500 service stations in the US and Europe, along with 12 refineries in the US and Europe. The company's net sales are primarily generated in the US, the UK, and Germany [2].

In the most recent quarter, Phillips 66 reported earnings of $2.38 per share, exceeding analysts' expectations. The company's revenue reached $33.77 billion for the quarter, compared to analysts' expectations of $32.11 billion. Additionally, Phillips 66 announced a quarterly dividend of $1.20 per share, resulting in an annualized yield of 4.1% despite a current dividend payout ratio of 115.38% [1].

Several other institutional investors and hedge funds have also made changes to their positions in Phillips 66. Forum Financial Management LP, CWC Advisors LLC, Hager Investment Management Services LLC, Golden State Wealth Management LLC, and Lantern Wealth Advisors LLC have all increased their holdings in the company in recent quarters [1].

Phillips 66's stock has been the subject of various analyst reports. UBS Group, Barclays, Scotiabank, Raymond James Financial, and Compass Point have all issued "buy" or "outperform" ratings for the company, with a consensus rating of "Moderate Buy" and an average target price of $136.20 [1].

However, despite the positive analyst sentiment, Phillips 66 has faced operational challenges. A fire at the Bayway refinery in Linden, New Jersey, recently led to a temporary halt in gasoline production. The company has not yet provided a specific timeline for the resumption of full production at the refinery [2].

Elliott Investment Management's increased stake in Phillips 66 signals confidence in the company's long-term prospects. However, investors should closely monitor the company's operational challenges and the broader energy market dynamics.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-nuveen-llc-buys-new-stake-in-phillips-66-nysepsx-2025-08-12/
[2] https://energynews.oedigital.com/oil-refineries/2025/08/14/after-fire-phillips-66-bayway-refinery-gasoline-unit-offers-reduced-prices