04:26 AM EST, 02/12/2025 (MT Newswires) -- (Updates with a response from Phillips 66 in the last two paragraphs and attribution to a statement from Elliot Investment Management)

Phillips 66 (PSX) is facing pressure from Elliott Investment Management to sell or spin off its midstream business as the activist investor has built up a stake worth more than $2.5 billion in the oil refining company, the activist investor said Tuesday.

Elliott said in a letter to Phillips that it seeks to simplify the company and to make changes on the board.

Elliott, overseen by billionaire investor Paul Singer, has argued that Phillips 66 could increase shareholder value by focusing more on refining.

Phillips 66 said in a statement that the company is "on the right path and we are realizing our vision of being the leading integrated downstream energy provider. "

It added, "As we continue to execute our strategy, we continue to welcome constructive dialogue with Elliott and all of our shareholders."