Elliott Investment Management’s activist campaign at Phillips 66 gained momentum this week after former refining executive and long-time energy investor Gregory Goff publicly endorsed Elliott’s board nominees in the run-up to a high-stakes proxy vote, according to a report by Bloomberg.
The report cites Goff, in a letter sent on Wednesday, as criticising the Houston-based refiner’s strategy of integrating midstream and refining assets, saying it has failed to deliver value in line with more focused energy peers. He urged shareholders to support Elliott’s proposed directors, claiming they could help restore operational discipline and unlock hidden value within Phillips 66’s asset base.
“Phillips 66 has lost its way,” wrote Goff, who holds a $10m stake in the company. “It can restore its stature as a leader in the energy industry—but only with the operational and strategic changes the Elliott slate would bring.”
The endorsement adds fuel to an already heated proxy contest, with Elliott and Phillips 66 each advancing rival slates of directors ahead of a shareholder vote scheduled for 21 May. Elliott, which has amassed a $2.5bn stake, is pushing for the company to spin off or sell its midstream business, arguing the sum-of-the-parts valuation is being overlooked under the current conglomerate structure.
Phillips 66 has pushed back, saying Elliott’s case hinges on short-term market dynamics and overestimates the potential value of the midstream segment. The company also raised questions about Goff’s objectivity, citing his ties to Elliott via Amber Energy, a firm fully owned by Elliott affiliates.
“Mr. Goff’s affiliation with Elliott represents a clear conflict of interest,” Phillips 66 said in a statement. It added that the company remains “confident” in the $43bn in value returned to shareholders over the years.
Elliott countered that Goff’s relationship was fully disclosed and does not represent a conflict. The firm also noted Goff has received no compensation from Elliott beyond expense reimbursement.
