He says Alberta has been the target of foreign-funded interests who want to land-lock Alberta's oil.
He says that will change.
Notley told supporters her government had done a tough and hard job, adding, "Today Alberta is a better place because of it".
Notley's New Democrats have been swept from power in the Alberta election by Jason Kenney and the United Conservatives. "I really believe deeply this is the party of the future in this province when people get away from this polarization and start looking at ideas, and what our party and our province can do", he said.
Stephen Mandel, who was Edmonton's mayor from 2004 to 2013, was credited with a solid showing in the single televised debate during the campaign, taking on the role of elder statesman.
Phillips also beat Zac Rhodenizer of the Alberta Party, the Liberals' Pat Chizek and Ben Maddison of the Alberta Independence Party.
The NDP's former culture minister, Ricardo Miranda in Calgary-Cross, as well as Danielle Larivee, the former children's services minister, in Lesser Slave Lake, both lost to UCP candidates. The party dropped from 52 seats, with the majority of support concentrated in Notley's home base of Edmonton.
He was named minister of health in the Progressive Conservative government of Jim Prentice in September 2014 despite not holding a seat. In the previous government, Greg Clark was the only Alberta Party MLA elected as a member of the party.
"I think Jason (Kenney) has run a very strong campaign (and)... has done something incredible in terms of unifying the right", she said.
Calgary Nose Hill MP Michelle Rempel was one of a handful of well-known conservative faces to appear early at the Stampede grounds election night.
What will be most affected by Alberta's election results?.
Notley introduced a carbon tax to help cut emissions of greenhouse gases, a measure Kenney had vowed to scrap.
The campaign also served as a test with Alberta voters for Mr Kenney and his newly formed UCP, founded in 2017 with the merger of two right-leaning provincial political parties.
The NDP's surprise win in 2015 ended more than four decades of Progressive Conservative governments in Alberta.
The province, once a money-making dynamo thanks to sky-high oil prices, has been struggling for years with sluggish returns on royalties, reduced drilling activity and unemployment levels stubbornly above seven per cent in Calgary and Edmonton.
Kenney has called the attacks a "fear-and-smear" red herring to distract from the NDP's economic track record of multibillion-dollar budget deficits and soaring debt.
Kenney criticized Premier Rachel Notley for working too closely with Prime Minister Justin Trudeau on mired pipeline projects and environmental policy.
Nearly 700,000 people voted early in malls, airports, recreation centres, public buildings and an Ikea store.