Thread regarding Phillips 66 layoffs

100% CFO and his cronies are ruining the company. He needs to go, and take a majority of that strategy organization with him.

Go Go is the problem.

@14x Houston is the problem!

@15f you can’t blame chemicals either as they have been ripping this year.

The Elliott thesis is just simply correct: conglomerates don’t allocate capital well. They also are unfocused and struggle to define priorities.

Pair that with a lousy management team and you get performance like PSX

Despite the strong PSX stock performance YTD from the war in Iran, PSX is trailing peers materially:

PBF 30% points higher
MPC 19%
VLO 15%

@10t pshhhh…Houston…pshhhh WE HAVE A PROBLEM…

🤣🤣🤣

@14v they are also making money in renewables when PSX has yet to make any money in that business despite the trading activity and advantaged site they promised

MPC earnings just released and their R&M segment outearned all of PSX COMBINED

@10t when has that ever happened?

All the refiners posting outstanding results means nothing to PSX. We are a different company and more like the majors than they are. Our diversity will carry us through tough times and we will see outsized performance once the trading volatility subsides.

@qt THIS. The entire company is seeing it and talking about his private life. On top of it, there is no clear successor and the lack of balance sheet discipline seems to coincide with his personal life melting down.

I agree with your math. However, the market can over use speculation. This with the war creates more volatility in next months. America has yet to see the full weight of the conflict. I predict it will push the stock higher. After its peak than I'd say get out. Maybe a few more months. I do not think this will be due to any part of the company strategy. Just pure d-mb luck.

After running all the numbers I sold my PSX stock, which was a decent amount of my portfolio. The final reason was the pending $900 billion judgement they're trying to keep hidden under the table. Before that, the price to dividend was not sustainable. After already deciding to sell, I even ran it through AI and had similar results.

Get out now, when it falls there may be a buy back in price, otherwise there are better performers out there.

What I found most insightful from the call is the CFO admitting that debt paydown increases equity value (go back and read the transcript). What he was admitting was that the increase in trading activity, working capital increases from the trading activities, and increase in volatility, and risk of margin calls in volatile environments is DESTROYING equity value.

Isn’t it the CFO’s job to protect the balance sheet, MY dividend, and return MY money to me?!

Make the change, M@rk. Kev is a liability on multiple fronts.

Chemicals isn't what sunk us this quarter, it was commercial.

@ea this. This is the reason PSX should be broken up. Shareholders have been promised value from integration but pure play refiners are returning more cash.

Took my profits on the most recent run up. Pivoting into VLO

@kd will the Elliott supported board members ever notice and drive action?! I thought that is what I voted for.

HF Sinclair reports Net Income of $648MM vs. PSX of $207MM

Embarrassing for PSX and their "integrated" portfolio

Q1'26 Results:

PBF net income = $200MM
PSX net income = $207MM

PBF?! Noise in both, but let that sink in.

Net Income is a prescribed GAAP measure so no manipulation. And PSX has the same net income as PBF.

Just took a call with a recruiter yesterday that asked me what is going on at Phillips 66. She said she had received a lot of calls this year from Phillips 66 employees.

This is taking a reputational toll on the company and is also extending to the employees. Take the calls and plan your exit.

@bj I agree. We need to not invest more in chemicals right now but selling them would be foolish. I don't trust management to invest the money wisely so its better to have an income stream than a piggyback for stock buybacks and c-suite bonuses.

@e9 I will also point out that VLO returned $940MM to shareholders during the quarter vs. PSX's $778MM. Very similar market caps.

The cash being thrown off per equity dollar is far superior at VLO.

Hence the multiple discount. And it will forever be this way under this management team.

@e8 even when adjusting for working capital, PSX trail VLO by nearly $1B in cash from ops

Commercial is destroying value and the management team are lying to us

PSX Net Income: $200MM
VLO Net Income: $1,300MM

PSX Cash from Ops: ($2.3B)
VLO Cash from Ops: $1.4B

Something is fundamentally broken at PSX and management can't see it. It is them.

@a9 with respect to chemicals you are right they aren't returning as high as expected however with the exception of last quarter they have been a steady stream of income which we need.
Mark said The golden triangle project would comission later this year and the Qatar project was always promised for 2027. Yes they need to deliver on that and if they were 12 months faster they could make a ki-ling right now but we couldn't predict the war 4 years ago and he-l we missed the war just a few months before as our hedge positions clearly shows.

Share price is up so management are high-fiving one another.

It will be very interesting when VLO posts its earnings tomorrow and MPC next week.

We are a LinkedIn company, all for show. See the DEI execs and their photo ops. Passing out vegetables, I’m serious.

And now the head of IR trying to message it positively on LinkedIn.

LinkedIn.

Let that sink in. No serious head of IR uses LinkedIn to message the company's story. I follow many companies and NONE do this.

Why is he doing this?

Trying to distract from the lack of results.

Notice:
"demonstrating the strength and flexibility of our integrated asset base"
"constructive forward market outlook"
"positioning us to capture opportunities as markets improve"
"midstream...remains on track for our 2027 target"
"renewable fuels is seeing a better outlook"
"delevering PLAN is unchanged"
"committed to returning capital to shareholders"
"looking ahead, our focus is clear..."

NONE of this speaks to results. It is the promise of future results.

He is not talking about delivering results because they are not there.

It is more of the same: trust us, it is coming. Stay with us and this strategy will end up producing results.

It is not working.

Debt is $11B higher than it was ahead of COVID.
The EBITDA that this CEO and CFO promised of $15B has never materialized.
Chemicals projects have been delayed until 2027 from 2026.
Volatility has increased.
Midstream has not performed, PSX overpaid for assets and multiples have since declined.
Chemicals have not produced the steady stream of earnings that management promised.

Meanwhile, Marathon and Valero produce results.