{ "docId": "019dd923-622b-71dc-a6d9-0a9e4ca95565", "docSlug": "917aed929317", "documentTitle": "Phillips 66 (PSX)", "authorId": "02_Elliott_Management", "authorName": null, "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "activist_investor", "sourceTypeLabel": "Activist investor", "presentationDate": "2025-04-28 00:00:00", "orientation": "portrait", "aspectRatio": 0.77272725, "pageNumber": 103, "pageCount": 154, "prevPage": 102, "nextPage": 104, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 3, "notes": "Uses a CEO quote as the 'Claim' and a bar chart as the 'Reality' to expose a contradiction.", "elementsJson": [ "headline_text", "paragraph", "quote_block", "bar_chart_vertical", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622b-71dc-a6d9-0a9e4ca95565/103", "deckHref": "/decks/019dd923-622b-71dc-a6d9-0a9e4ca95565", "deckJsonHref": "/decks/019dd923-622b-71dc-a6d9-0a9e4ca95565.json", "deckAnchorHref": "/decks/019dd923-622b-71dc-a6d9-0a9e4ca95565#slide-103", "components": [ { "bbox": null, "kind": "callout", "text": "Over a more relevant five-year time horizon, Phillips 66 has underperformed both refining and midstream peers, with the underperformance especially stark after adjusting for midstream's lower cost of capital.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-1ac3-70f9-8562-de55d32bffa9", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.45, "w": 0.45, "x": 0.48, "y": 0.32 }, "kind": "chart", "text": "5-Year Avg Return on Capital", "attrs": null, "subkind": "bar-vertical", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0582299e-0bd2-4cf2-91fc-4abae080f8eb", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "metric", "text": "Return on Capital: 13.6%", "attrs": null, "subkind": "primary", "toolName": "Quantification", "toolSlug": "quantification", "confidence": null, "componentId": "019dd953-1ac3-70f9-8562-e6fba904da21", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.86, "x": 0.07, "y": 0.21 }, "kind": "paragraph", "text": "Management has cited a high return on capital over the past 10 years as an indication of their competence. Over a more relevant five-year time horizon, Phillips 66 has underperformed both refining and midstream peers, with the underperformance especially stark after adjusting for midstream's lower cost of capital.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "aa239b89-5833-45b3-91cd-34a43df0e11f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.35, "w": 0.42, "x": 0.07, "y": 0.32 }, "kind": "quote", "text": "[Over] the last 10 years, our [Return on Capital Employed (ROCE)] has been higher than our refining or midstream peer sets. And we absolutely believe and are committed to ROCE as a key metric because we believe that we can accrete ROCE through disciplined investments, through disciplined asset dispositions and asset acquisitions. And we believe that ROCE is the leading indicator for increasing total shareholder return.", "attrs": null, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d19a5852-8744-4cfc-903b-20aa1a4332cb", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "[Over] the last 10 years, our [Return on Capital Employed (ROCE)] has been higher than our refining or midstream peer sets. And we absolutely believe and are committed to ROCE as a key metric because we believe that we can accrete ROCE through disciplined investments, through disciplined asset dispositions and asset acquisitions. And we believe that ROCE is the leading indicator for increasing total shareholder return. — Phillips 66 CEO Mark Lashier, Wolfe Refining Conference, March 6, 2025", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-1ac3-70f9-8562-e2216f9e770e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.86, "x": 0.07, "y": 0.0086 }, "kind": "source-note", "text": "Source: Bloomberg. (1) Reflects tax-effected Adj EBIT (NOPAT) divided by invested capital (Net PP&E + NWC). (2) Midstream peers reflect EPD, TRGP, OKE, and MPLX. Return on capital calculation adjusted to account for the 5yr avg difference between PSX WACC and the WACC of Midstream peers, which amounts to 1.2%. WACC calculated based on the weighted avg cost of debt and the weighted avg cost of equity. Cost of equity calculated based on the avg 1y fwd Adj EPS yield, which reflects market pricing of cost of equity.", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "241250d6-f05d-4710-8824-53aedc2fc9d1", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.65, "x": 0.07, "y": 0.07 }, "kind": "title", "text": "CLAIM: ENHANCED RETURN ON CAPITAL\nREALITY: LAGGING RETURN ON CAPITAL", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "43980833-804d-4b95-b9fa-08f4d9a0d65b", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [ { "name": "2x2 matrix", "slug": "matrix-2x2", "agent": null, "layer": "slide", "matchId": "d5e30216-eb7a-4b93-97ec-0c9590139dfc", "evidence": "The slide presents a comparison of ROCE performance using a 2x2 matrix, although the exact implementation is not clear.", "confidence": 0.5 } ], "frameworks": [ { "name": "ceo-quote-contradiction", "slug": null, "matchId": "02a8f937-a099-46a6-b7c5-12752ed10a49", "evidence": "Direct juxtaposition of a CEO quote claiming success against a chart showing underperformance.", "confidence": 1 } ], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }