Elliott has built more than $2.5 billion in stock in Phillips 66 and hopes to sell or spin-off mid-stream units

NEW YORK (AP) – Activist investor Elliott Investment Management LP has built up more than $2.5 billion in stock in Phillips 66 and is looking for an energy company to sell or spin off midstream units that will help raise the stock price.

Shares rose nearly 4% in trading Tuesday morning.

In a letter to the Phillips 66 board, Elliott said he believes the company can win over $40 billion for the transportation and storage of mid-class businesses and rough and refined products. .

“This outstanding business needs to be separated from the corporate structure that reduces its value and obscures it,” writes Elliott. That investment will make him one of the top five investors in the Phillips 66.

The hedge fund also considers Phillips 66 selling non-essential assets such as CPCHEM and certain European retailers to increase capital gains to shareholders and allow them to concentrate more fully on their core refiner business. I was recommended to do so. Chevron Phillips Chemical is a joint venture between Chevron USA Inc. and Phillips 66, created in July 2000.

Additionally, Elliott hopes that Phillips 66 will add a new independent director to its board.

Phillips 66 did not respond immediately to requests for comment.

Last month, the Houston-based company reported a fourth-quarter adjusted loss of 15 cents per share with revenues of $339.9 billion. This result outperformed the expectations of analysts surveyed by Zacks Investment Research. This was seeking a loss of 20 cents per share on revenue of $32.03 billion.

Elliott has a long history of activism. last week Honeywellannounced that one of the last remaining US industrial conglomerates will be split into three independent companies. The news came after Elliott Stocks revealed Of more than $5 billion in aerospace, automation and materials companies, Honeywell called for a separation of automation and aerospace operations.