Thoughts on Elliott latest O&G investments? (BP / Phillips 66)
Saw the presentation of Elliott (https://streamline66.com/) and as usual, was impressed on the detail and rationale (not rocket science but fairly reasonable).
On the other hand, no official statement/materials on BP investment yet but the stock is already up double digit in just a couple days...
Wonder if you guys had any overall thoughts or opinions on these investments and in general how Elliott approaches these investments. Thanks!
Based on the most helpful WSO content, Elliott is known for its detailed and strategic approach to investments, often creating unique, uncorrelated products for its LPs. While there isn't specific information in my knowledge base about Elliott's latest investments in BP or Phillips 66, their track record suggests a methodical and well-researched rationale behind such moves.
For BP, the stock's double-digit rise could indicate market confidence in Elliott's involvement, as they are known for driving operational and strategic changes in their portfolio companies. For Phillips 66, the presentation you referenced (https://streamline66.com/) likely outlines Elliott's thesis, which typically revolves around unlocking shareholder value through restructuring, operational improvements, or strategic shifts.
Elliott's general approach often includes: 1. Identifying undervalued or underperforming assets. 2. Engaging with management to push for changes that enhance value. 3. Leveraging their reputation and expertise to influence outcomes.
If you're looking for deeper insights, it might be worth exploring Elliott's historical investments in the energy sector to understand patterns in their strategy. Let me know if you'd like help with that!
Sources: BP Loses 15% in One Day, 41% from 2010 Peak After Devastating Underwater Oil Spill, Oil and Gas Overview, Any info on Elliott?, BP Ain’t Got Nothing on This Oil Spill | The Daily Peel | 1/11/23, Thoughts on new BX group?
I’m a bit cynical. MPC was a home run, no question. SU and now PSX are basically just rinse/repeat on the MPC playbook. SU in particular was an obvious target because you can’t keep killing your employees and do nothing - imo that one was pretty lazy. I mean I know pods that would have gone activist on them if they could have before Elliott announced. It took a long ass time to hire Kruger too and I’m fairly sure Elliott wasnt very involved.
I also have been in meetings/dinner with laggards where some of their folks show up. Definitely makes you consider your positioning.
Makes sense.. and as for SU it was being a banger last year, but stock has stalled in the past few months.. wonder if they still maintain the position
I’d be shocked if they didn’t. We will find out today (for YE at least)
Elliott's PSX SOTP is... optimistic at best, and irresponsible at worst. There's a reason PSX bought in PSXP a few years ago. Splitting it won't suddenly create more value than before, especially with PSXP's exposure to products. MPC worked eventually, but took several years to do so, once retail networks were suddenly in vogue again.
They’ll push to sell BP to Shell eventually
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