Top 5 Stock Picks of Billionaire Paul Singer

2. Phillips 66 (NYSE:PSX)

Elliott’s Stake: $2,484,149,040

The midstream business remains the core catalyst for Phillips 66 (NYSE:PSX), transitioning the company toward a high-margin, fee-based model that provides bond-like stability. Management is aggressively targeting $4.5 billion in annual midstream EBITDA by 2027, supported by the full integration of DCP Midstream and the expansion of the Coastal Bend NGL Pipeline to 350,000 barrels per day. This infrastructure ensures Phillips 66 (NYSE:PSX) earns steady revenue from moving natural gas liquids, regardless of volatile oil prices, which fuels consistent dividend growth and share buybacks.

The chemicals business is another key growth catalyst, specifically through the CPChem joint venture, which is currently launching massive projects like Golden Triangle Polymers and Ras Laffan to meet global demand for polyethylene.

Phillips 66 (NYSE:PSX) is also making a strategic play in the EV domain by becoming a leading producer of specialty needle coke. This highly refined material is a critical component for the synthetic graphite used in EV battery anodes, allowing Phillips 66 (NYSE:PSX) to profit directly from the battery supply chain and the global shift toward electrification.

Oakmark Select Fund stated the following regarding Phillips 66 (NYSE:PSX) in its Q1 2026 investor letter:

“Phillips 66 (NYSE:PSX) was the top contributor during the quarter. The U.S.-headquartered downstream energy company’s stock price rose as it benefited from higher crack spreads (the difference in price between crude oil and refined petroleum), heightened geopolitical risk and solid fourth-quarter 2025 earnings. Fundamental results have been encouraging, and we believe PSX is set to be a major beneficiary of rising crack spreads. We continue to see PSX as a durably advantaged energy company focused on returning cash flow to shareholders.”