Slide 1: Lake James Gas Plant
Lake James Gas Plant GOLDSMITH, TX1
Slide 2: Cautionary Statement
Cautionary Statement This presentation contains forward-looking statements within the meaning of the federal securities laws. Words such as “anticipated,” “estimated,” “expected,” “planned,” “scheduled,” “targeted,” “believe,” “continue,” “intend,” “will,” “would,” “objective,” “goal,” “project,” “e
Slide 3: Strategic Priorities Update
Strategic Priorities Update Deliver Shareholder • $11.2 B shareholder distributions since July 2022 Returns • On track to meet $13 B - $15 B target by YE 2024 Improve Refining • Highest crude utilization since 2018 Performance • $0.83/bbl1 cost reductions compared with 2022 Capture Value from • >$30
Slide 4: Adjusted Controllable Costs
Adjusted Controllable Costs 1H 2024 vs 1H 2022 ($B) 0.3 0.5 (0.2) (0.3) Excludes Refining JV controllable cost 3 reduction of $0.1B 4.0 3.7 1 2 1 1H 2022 DCP Inflation Market Cost Reduction 1H 2024 1 Sum of our operating and SG&A expenses. 2 Based on an average CPI inflation rate of 8.3%. 3 Proporti
Slide 5: Refining Adjusted Controllable Costs
Refining Adjusted Controllable Costs 2024 vs 2022 ($/BBL) 1 2 1 3 4 1 Refining adjusted controllable costs is the sum of operating and SG&A expenses for our Refining segment, plus our proportional share of operating and SG&A expenses of two refining equity affiliates that are reflected in equity ear
Slide 6: 2Q 2024 Overview
2Q 2024 Overview $MM (Unless Otherwise Noted) Adjusted earnings $984 Adjusted earnings per share (EPS) 2.31 Operating cash flow 2,097 Capital expenditures and investments 367 Shareholder distributions 1,325 Net Debt-to-Capital 36% 6 6
Slide 7: 2Q 2024 Adjusted Earnings
2Q 2024 Adjusted Earnings 2Q 2024 vs 1Q 2024 ($MM) 2Q 2024 1Q 2024 Change • Midstream - Higher NGL Midstream $ 753 613 140 volumes and margins, Chemicals 222 205 17 lower costs Refining 302 313 (11) • Chemicals - Higher Marketing and Specialties 415 307 108 margins; higher Renewable Fuels (55) (55)
Slide 8: 2Q 2024 Cash Flow
2Q 2024 Cash Flow $B 0.7 0.9 1.2 (1.3) (0.4) (0.2) (0.1) 2.4 1.6 March 31, CFO Working Proceeds from Shareholder Capital Debt Other June 30, 2024 (excluding Capital Asset Distributions Expenditures 2024 Cash working Dispositions & Investments Cash 1 Balance 1 capital) Balance 1 Includes cash and cas
Slide 9: Outlook
Outlook 3Q 2024 Global Olefins & Polyolefins utilization Mid-90% Refining crude utilization Low-90% Refining turnaround expense $140 MM - $160 MM Corporate & Other costs* $330 MM - $350 MM Full-year 2024 Refining turnaround expense $500 MM - $530 MM *Excludes impacts from our investment in NOVONIX 9
Slide 10: Questions and Answers
Questions and Answers Financial Highlights $2.31 $2.1 B $1.3 B Adjusted EPS1 Operating cash flow1 Shareholder Distributions1 $11.2 B shareholder Highest crude utilization >$300 MM run-rate DCP distributions since July 2022 since 2018 synergies as of June 30 $1.3 B run-rate business $2.2 B adjusted E
Slide 11: Appendix
Appendix Borger Refinery, / Borger, TX /
Slide 12: 2024 Estimated Sensitivities
2024 Estimated Sensitivities . 1 Sensitivities shown above are independent and only valid within a limited range. 2 Midstream includes 13% economic interest attributable to noncontrolling interest in DCP Midstream, LP. 12 12 12
Slide 13: Capital Structure
Capital Structure 40% 40% 40% 38% 34% 38% 36% 34% 34% 24% 34.1 31.7 30.8 30.5 21.6 20.2 20.0 19.4 17.2 14.4 6.1 3.1 3.3 1.6 2.4 2021 2022 2023 1Q 2024 2Q 2024 Equity $B Debt $B Cash & Cash Equivalents $B Debt-to-Capital Net Debt-to-Capital 13 13 13
Slide 14: 2Q 2024 Refining Adjusted Pre-Tax Income
2Q 2024 Refining Adjusted Pre-Tax Income 2Q 2024 VS. 1Q 2024 ($MM) 1Q 2024 Atlantic Gulf Central West 2Q 2024 Adjusted Basin / Coast Corridor Coast Adjusted Pre-Tax Income Europe Pre-Tax Income 98% crude utilization 93 86% clean product yield (63) 30 64% market capture 313 (71) 302 15 42 243 2 2Q 20
Slide 15: 2Q 2024 Refining Margins – Market vs. Realized
2Q 2024 Refining Margins – Market vs. Realized ($/BBL, Unless Otherwise Noted) (2.76) 2.16 0.20 15.57 (5.16) 10.01 2Q 2024 Configuration Secondary Products Feedstock Other 2Q 2024 RIN-Adjusted Realized Market 3:2:1 Margin Avg Market Crude: $83.53 64% RIN-Adjusted Market Capture 15
Slide 16: 2Q 2024 Refining Margins – Market vs. Realized
2Q 2024 Refining Margins – Market vs. Realized Atlantic Basin / Europe ($/BBL, Unless Otherwise Noted) Brent: $84.94 (3.43) (3.11) 98% crude utilization 17.35 1.82 (4.53) 8.10 47% market capture 2Q 2024 Configuration Secondary Feedstock Other 2Q 2024 RIN-Adjusted Products Realized Market 3:2:1 Margi
Slide 17: 2Q 2024 Refining Margins – Market vs. Realized
2Q 2024 Refining Margins – Market vs. Realized Gulf Coast ($/BBL, Unless Otherwise Noted) LLS: $83.60 (2.24) 2.64 11.36 3.29 96% crude utilization 7.88 69% market capture (7.17) 2Q 2024 Configuration Secondary Feedstock Other 2Q 2024 RIN-Adjusted Products Realized Market 3:2:1 Margin RIN-Adjusted Ma
Slide 18: 2Q 2024 Refining Margins – Market vs. Realized
2Q 2024 Refining Margins – Market vs. Realized Central Corridor ($/BBL, Unless Otherwise Noted) WTI: $80.73 3.50 (1.56) 1.69 102% crude utilization 14.59 (5.47) 12.75 87% market capture 2Q 2024 Configuration Secondary Feedstock Other 2Q 2024 RIN-Adjusted Products Realized Market 3:2:1 Margin RIN-Adj
Slide 19: 2Q 2024 Refining Margins – Market vs. Realized
2Q 2024 Refining Margins – Market vs. Realized West Coast ($/BBL, Unless Otherwise Noted) ANS: $86.39 (4.05) 0.13 (4.48) 22.91 (1.45) 93% crude utilization 13.06 57% market capture 2Q 2024 Configuration Secondary Feedstock Other 2Q 2024 RIN-Adjusted Products Realized Market 3:2:1 Margin RIN-Adjusted
Slide 20: 2Q 2024 Adjusted Earnings
2Q 2024 Adjusted Earnings 2Q 2024 vs 2Q 2023 ($MM) 2Q 2024 2Q 2023 Change Midstream $ 753 642 111 Chemicals 222 192 30 Refining 302 1,189 (887) Marketing and Specialties 415 533 (118) Renewable Fuels (55) 68 (123) Corporate and Other (340) (250) (90) Adjusted income before income taxes $ 1,297 2,374
Slide 21: Advancing Cost Reductions in 2024
Advancing Cost Reductions in 2024 CUMULATIVE COST REDUCTIONS ($MM) TARGET SAVINGS Historical and projected savings presented above are cumulative on a trailing twelve month basis. 1 Savings are reflected as a component of our purchased crude oil and product costs when realized, which is a component
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2024 2023 Jun YTD 2Q 1Q Jun YTD 2Q Reconciliation of Consolidated Earnings to Adjusted Earnings Consolidated Earnings $ 1,763 1,015 748 3,658 1,697 Pre-Tax Adjustments: Impairments1 387 224 163 — Net (gain)/loss on asset disposition2 (
Slide 23: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2024 2023 Jun YTD 2Q 1Q Jun YTD 2Q Reconciliation of Midstream Pre-Tax Income to Adjusted Pre-Tax Income Pre-tax income $ 1,321 767 554 1,336 620 Pre-tax adjustments: Impairments1 283 224 59 — — Net gain on asset disposition2 (238) (23
Slide 24: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2024 2023 Jun YTD 2Q 1Q Jun YTD 2Q Reconciliation of Refining Pre-Tax Income to Adjusted Pre-Tax Income Pre-tax income $ 518 302 216 2,769 1,175 Pre-tax adjustments: Impairments1 104 — 104 — — Net loss on asset disposition — — — 14 14
Slide 25: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2024 2023 Jun YTD 2Q 1Q Jun YTD 2Q Reconciliation of Renewable Fuels Pre-Tax Income (Loss) to Adjusted Pre-Tax Income (Loss) Pre-tax loss $ (110) (55) (55) 142 68 Pre-tax adjustments: None — — — — — Adjusted Pre-Tax Loss $ (110) (55) (
Slide 26: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars 2024 2Q 1Q Reconciliation of Refining - Atlantic Basin / Europe Pre-tax Income to Adjusted Pre-Tax Income Pre-tax income $ 15 78 Pre-tax adjustments: Certain tax impacts — — Adjusted Pre-Tax Income $ 15 78 Reconciliation of Refining - Gulf Coast Pre-Tax I
Slide 27: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars 2Q 2024 Reconciliation of Consolidated Net Income to Adjusted EBITDA Net income $ 1,020 Plus: Income tax expense 291 Net interest expense 200 Depreciation and amortization 497 Phillips 66 EBITDA $ 2,008 Special Item Adjustments (pre-tax): Net gain on asse
Slide 28: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars 2Q 2024 Reconciliation of Midstream Income before Income Taxes to Adjusted EBITDA Income before income taxes $ 767 Plus: Depreciation and amortization 224 Midstream EBITDA $ 991 Special Item Adjustments (pre-tax): Net gain on asset dispositions (238) Impa
Slide 29: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars 2Q 2024 Reconciliation of Chemicals Income before Income Taxes to Adjusted EBITDA Income before income taxes $ 222 Plus: None — Chemicals EBITDA $ 222 Special Item Adjustments (pre-tax): None — Chemicals EBITDA, Adjusted for Special Items $ 222 Other Adju
Slide 30: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars 2Q 2024 Reconciliation of Refining Income before Income Taxes to Adjusted EBITDA Income before income taxes $ 302 Plus: Depreciation and amortization 204 Refining EBITDA $ 506 Special Item Adjustments (pre-tax): None — Refining EBITDA, Adjusted for Specia
Slide 31: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars 2Q 2024 Reconciliation of Marketing & Specialties Income before Income Taxes to Adjusted EBITDA Income before income taxes $ 415 Plus: Depreciation and amortization 32 Marketing & Specialties EBITDA $ 447 Special Item Adjustments (pre-tax): None — Marketi
Slide 32: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars 2Q 2024 Reconciliation of Renewable Fuels Income before Income Taxes to Adjusted EBITDA Income before income taxes $ (55) Plus: Depreciation and amortization 12 Renewable Fuels EBITDA $ (43) Special Item Adjustments (pre-tax): None — Renewable Fuels EBITD
Slide 33: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars 2Q 2024 Reconciliation of Corporate & Other Loss before Income Taxes to Adjusted EBITDA Loss before income taxes $ (340) Plus: Net interest expense 200 Depreciation and amortization 25 Corporate & Other EBITDA $ (115) Special Item Adjustments (pre-tax): N
Slide 34: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars (Except as Indicated) 2Q 2024 Atlantic Basin/ Central Europe Gulf Coast Corridor West Coast Worldwide Reconciliation of Refining Income Before Income Taxes to Realized Refining Margins Income before income taxes $ 15 42 243 2 302 Plus: Taxes other than in
Slide 35: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 1H 2024 1H 2022 Reconciliation of Operating and SG&A Expenses to Adjusted Controllable Costs Operating expenses $ 2,859 2,771 Selling, general and administrative expenses 1,109 921 Controllable costs $ 3,968 3,692 Special Item Adjustme
Slide 36: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 1H 2024 2022 Reconciliation of Refining Operating and SG&A Expenses to Refining Adjusted Controllable Costs Turnaround expenses $ 224 772 Other operating expenses 1,613 3,995 Total operating expenses 1,837 4,767 Selling, general and ad
Slide 37: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2Q 2024 Total Debt $ 19,960 Total Equity 30,507 Debt-to-Capital Ratio 40 % Total Cash $ 2,444 Net Debt-to-Capital Ratio 36 % 37 37 37