Phillips 66 (NYSE:PSX) said it is upbeat about the factors detailed by Elliott Investment Management that signal a significant turnaround and is looking for a "constructive dialogue" with the firm.

The company said that it agrees with Elliott that successful execution of the strategic priorities will drive substantial stock price performance and believes that it has the right management team and Board in place to deliver long-term, sustainable value.

"We also appreciate that Elliott recognizes the value-creation potential of the strategic priorities that we have been executing since our Investor Day in November 2022," the company said in a press release.

Related: Phillips 66 Stock Soars As Elliott Investment's $1B Bet Signals Major Turnaround

The company raised the shareholder distribution target to a range of $13 billion to $15 billion on Oct 27.

On the same day, the company said it would monetize over $3 billion of non-core assets and increase business transformation run-rate savings target to $1.4 billion by the year's end in 2024, including a $1 per barrel cost reduction in refining.

Yesterday in a letter, Elliott Investment's letter detailed the factors behind Phillips 66's underperformance and 75% upside potential.

Elliott Investment claims that Phillips 66's lack of opex discipline has been a vital driver of the company's stock-price underperformance.

"Given the company's history of failed execution, we believe shareholders would welcome the appointment to the Board of two new directors with refining-operating experience," Elliott Investment said in the letter to the Phillips 66 board.

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Price Action: PSX shares are trading higher by 0.54% to $122.88 premarket on the last check Thursday.

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