Phillips 66 · NYSE:PSX
Phillips 66 — Goldman Sachs Global Energy Conference 2021
17 slides from Phillips 66's conference presentation, Jan 7, 2021
Slide 1: Value Creation in an Evolving Energy Landscape
Value Creation in an Evolving Energy Landscape GREG GARLAND Chairman & Chief Executive Officer Goldman Sachs Global Energy Conference January 2021 San Francisco Refinery RODEO, CA
Slide 2: Cautionary statement
Cautionary statement This presentation contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Wo
Slide 3: The energy future
The energy future The U.S. energy industry employs more than Wood River Refinery ROXANA, IL 10 million problem solvers who are uniquely qualified to help meet the world’s growing energy needs while tackling the climate challenge. Freeport Marine Terminal FREEPORT, TX Phillips 66 Research Center Air
Slide 4: Global energy demand
Global energy demand Global Energy Demand by Fuel Strong global energy fundamentals (MMTOE) Oil Gas Coal Bioenergy Nuclear Renewables Hydro 20,000 >50% of global energy demand is ----------Stated Policies Scenario---------- met with oil and gas 15,000 Sustainable Development Scenario* Long-term1: 10
Slide 5: Broad sustainability view
Broad sustainability view SUPPORTS LONG-TERM RESILIENCE Operating Excellence is foundational to sustainability Energy transition initiatives being pursued Innovative research and development capabilities Emphasis on adaptability and flexibility Inclusion and diversity in our workforce unlocks value
Slide 6: Executing the strategy
Executing the strategy Operating Excellence Sweeny Frac 3 OLD OCEAN, TX Committed to safety, reliability and environmental stewardship while protecting shareholder value Growth Enhancing our portfolio by capturing growth opportunities in Midstream and Chemicals Returns Improving returns by maximizin
Slide 7: Operating excellence
Operating excellence Total Recordable Rates Refining Crude Capacity Utilization Phillips 66 Industry Average (Incidents per 200,000 hours worked) (%) U.S. Industry Average 96% 95% 91% 95% 93% 94% 90% 90% 79% 79% Phillips 66 CPChem DCP Midstream 1.03 .91 .83 .79 16 17 18 19 3Q20 Industry Safety Metri
Slide 8: Disciplined capital allocation
Disciplined capital allocation CFO Historical Cash from Operations Dividends Adjusted Capital Spending Growth ($B) Sustaining Capex1 ($B) Sustaining 3.5 2.8 2.9 2.6 7.6 1.8 1.7 6.0 5.7 16 17 18 19 20G 21B 4.8 4.3 3.6 Cumulative Distributions Share Repurchases and Exchanges 3.5 ($B) Dividends 3.0 26
Slide 9: Emerging Energy
Emerging Energy ENHANCING OUR BUSINESS MODEL FOR A SUSTAINABLE FUTURE STRATEGIC APPROACH New organization dedicated to lower carbon opportunities, which will: • Focus on core competencies and asset integration • Leverage existing businesses for emerging energy growth • Capitalize on technology and i
Slide 10: Renewable and alternative fuels
Renewable and alternative fuels Renewable diesel in Solar energy projects at Green hydrogen and U.K. and U.S. West Coast Rodeo and Ponca City fueling stations in Europe Goldman Sachs Global Energy Conference 10
Slide 11: Rodeo Renewed
Rodeo Renewed TRANSFORMATION TO LARGE-SCALE RENEWABLE TRANSPORTATION FUELS PRODUCTION FACILITY 50+ MBD1 Total renewable diesel production expected by 1Q 2024 50% Reduction in greenhouse gas emissions $750-800 MM Expected project capital cost >30% Forecasted returns San Francisco Refinery RODEO, CA I
Slide 12: Innovation at Phillips 66
Phillips 66 Research Center Air Research Group BARTLESVILLE, OK Innovation at Phillips 66 Advancing solid oxide fuel cells, organic photovoltaic polymers, batteries and renewable fuels Developing carbon mitigation, hydrogen and improved energy efficiency Supporting a sustainable energy future throug
Slide 13: Total shareholder return
Total shareholder return Total Shareholder Return Since IPO Operating Excellence % 340% 300% PSX +178% Growth 260% S&P 100 +226% 220% Peers +104% Returns 180% 140% Distributions 100% 60% High-Performing Organization 20% -20% May-12 May-13 May-14 May-15 May-16 May-17 May-18 May-19 May-20 Dec-20 Goldm
Slide 14: Integrated Portfolio
Ferndale all css eS _ tenn, oe Integrated Portfolio Phillips 66 @, rote ONS manger IDS | tan nr) Mibsoul Ral Temi 7 iscsi Bayway, © neon ol may 08 eae Sacramento ‘North Sait Lake @* e asco <a =e a San Francisco ( A we Wood River ax me A Sui ° Los Angeles amare fo Legend @ cecremo4P) i cechem Facitty
Slide 15: Our business
Our business PHILLIPS 66 IS A DIVERSIFIED ENERGY MANUFACTURING AND LOGISTICS COMPANY Integrated Midstream network 50% interest in CPChem Fee-based assets backed by MVCs Location-advantaged asset portfolio Pursue organic and M&A opportunities Long-term growth opportunities Complex, integrated system
Slide 16: Footnotes
Footnotes Date Conventions 3Q20 is as of September 30, 2020, or the nine-month period ended September 30, 2020, as applicable, except as otherwise noted. 20E represents full year 2020 estimate. 20G represents previously announced 2020 guidance. 21B represents previously announced 2021 budget. Slide
Slide 17: Footnotes
Footnotes Slide 8 Cash from operations includes working capital impacts. 2019 consolidated capital spending inclusive of $0.4 B of growth capital funded by joint venture partners was $3.9 B. 20G consolidated capital spending inclusive of $0.1 B of growth capital funded by joint venture partners is e
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