Phillips 66 · NYSE:PSX
Phillips 66 — Investor Presentation (February 2020)
88 slides from Phillips 66's investor presentation, Feb 18, 2020
Slide 1: Investor Update February 2020
Investor Update FEBRUARY 2020 Sweeny Fracs 2, 3 and 4 Construction OLD OCEAN, TX
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: Executing the Strategy
Executing the Strategy GROWTH RETURNS DISTRIBUTIONS Pipelines to Gulf Coast Refinery yield projects Secure, competitive and Crude export capability Clean product export growing dividend NGL value chain capability Commitment to share CPChem ethylene and repurchases Brand reimaging derivative capacity
Slide 4: Delivering on Our Commitments
Delivering on Our Commitments EXECUTED EXECUTING / DEVELOPING Sweeny Hub Gray Oak Pipeline Freeport LPG Export Terminal Red Oak and Liberty pipelines GROWTH Beaumont Terminal Sweeny Fractionators 2, 3, 4 Bakken Pipeline South Texas Gateway Terminal U.S. Gulf Coast Petrochemicals Project Bluewater Pr
Slide 5: Integrated Portfolio in 2022
Integrated Portfolio in 2022 * 5 As of February 21, 2020. See appendix for additional footnotes.
Slide 6: Operating Excellence
Operating Excellence Total Recordable Rates Refining Crude Capacity Utilization INCIDENTS PER 200,000 HOURS WORKED % 96% 95% 95% Phillips 66 CPChem DCP Midstream 94% 93% 91% 91% 91% Industry Average 90% 90% 1.03 15 16 17 18 19 .86 .83 Phillips 66 U.S. Industry Average .79 Industry Safety Metrics INC
Slide 7: Environmental, Social, Governance
Environmental, Social, Governance 100% of Board of Directors meetings include ESG topics $8+ B invested in safety, environmental and reliability from 2012 to 2019 40+ ESG metrics in 2019 sustainability report 50% lower total recordable rate vs. refining industry 25% decline in SOx, NOx and PM emissi
Slide 8: High-Performing Organization
High-Performing Organization 14,500 employees live our values, every day VISION 94% retention of all employees, 96% retention of high Providing Energy. Improving Lives. performers 21% women and 26% U.S. minority CORE VALUES 44% employees participate in employee resource groups Safety. Honor. Commitm
Slide 9: AdvantEdge66
AdvantEdge66 UNLOCKING VALUE THROUGH BUSINESS TRANSFORMATION $1.2 B total enhancements by end of 2021 Total Enhancements 50% - 70% value captured as mid-cycle EBITDA uplift by 2022 End to end value chain optimization Asset Performance Technology-enabled risk reduction Advanced analytics, Artificial
Slide 10: Mid-Cycle Adjusted EBITDA
Mid-Cycle Adjusted EBITDA $2 B incremental mid-cycle adjusted Adjusted EBITDA Growth of $2 B $B EBITDA over three years Midstream growth investments Marketing Refining and Marketing return projects Midstream AdvantEdge66 efficiencies and value chain optimization Refining $11 B mid-cycle adjusted EBI
Slide 11: Disciplined Capital Allocation
Disciplined Capital Allocation $7 B mid-cycle CFO in 2020 Sources and Used of Cash $B ~1 1.6 - 1.7 Sustaining capital for asset integrity, safety and 7 6 1.5 - 2.5 environmental projects 1.5 - 2.5 Mid-Cycle Sust. FCF Dividends Growth Share Secure, competitive and growing dividend CFO Capex Capex Rep
Slide 12: Midstream
Midstream Beaumont Terminal NEDERLAND, TX
Slide 13: Midstream Portfolio
Midstream Portfolio Transportation NGL and Other DCP Midstream 22,000 miles of U.S. pipeline systems 200,000+ BPD fractionation capacity 45 natural gas processing facilities 39 product terminals 200,000 BPD LPG export capacity 6.5 BCFD net natural gas 20 crude oil terminals 150,000 BPD processing ca
Slide 14: Building a Premier Midstream Business
Building a Premier Midstream Business Top-quartile safety performance Adjusted EBITDA $B 2.3 1.9 Diversified portfolio integrated with Refining and 1.2 1.0 1.0 Marketing Integrated crude system with optionality for 15 16 17 PSX & PSXP DCP 18 19 producers, refiners and exporters Advantaged USGC stora
Slide 15: Crude Oil System
Crude Oil System Operational Bakken Pipeline Bayou Bridge Pipeline Beaumont Terminal Gray Oak Pipeline Executing Red Oak and Liberty pipelines Beaumont storage and dock expansion South Texas Gateway Terminal Developing ACE Pipeline Bluewater Project See appendix for footnotes 15
Slide 16: NGL System
NGL System Operational Sweeny Frac 1 LPG Export Terminal Clemens Caverns Sand and Southern Hills pipelines Executing Sweeny Fracs 2, 3 and 4 C2G Pipeline Clemens Caverns expansion Developing Sweeny Fracs 5 and 6 Freeport expansion See appendix for footnotes 16
Slide 17: Phillips 66 Partners
Phillips 66 Partners Growth-oriented master limited partnership Primarily fee-based midstream assets backed by minimum volume commitments Assets highly integrated with Phillips 66 system Continued sponsor support with backlog of available projects Gray Oak Pipeline Construction Pipe Yard BIG LAKE, T
Slide 18: DCP Midstream
DCP Midstream Logistics & Marketing and Gathering & Processing North 1.6 BCFD Diversified portfolio in premier basins Mid-Continent 1.4 BCFD Large-scale U.S. NGL producer and gas processor Permian 1.3 BCFD Integrated NGL supply for Phillips 66 Sweeny Hub DCP 2.0 transformation South 2.2 BCFD See app
Slide 19: Liberty and Red Oak Crude Oil Pipeline Systems
Liberty and Red Oak Crude Oil Pipeline Systems Liberty Pipeline From the Rockies and Bakken to Cushing, Oklahoma Initial service expected 1H 2021 24 inch pipeline 50% PSX ownership expected to be acquired by PSXP in March 2020 Red Oak Pipeline From West Texas and Cushing, Oklahoma, to the Texas Gulf
Slide 20: Sweeny Hub
Sweeny Hub Sweeny Hub Expansion1 Adding 450 MBD fractionation capacity by 2Q 2021 Secured y-grade feedstock supply agreements with firm volume commitments Reduces cost of supply for 200 MBD Freeport LPG Export Terminal Provides ethane supply for growing U.S. Gulf Coast petrochemical complex Phillips
Slide 21: Chemicals
Chemicals Polyethylene Units OLD OCEAN, TX
Slide 22: Feedstock Advantaged Chemicals Portfolio
Feedstock Advantaged Chemicals Portfolio #1 HDPE producer worldwide #2 NAO producer worldwide #2 Propylene merchant producer In North America 22 See appendix for footnotes
Slide 23: Chemicals Value Chain
Chemicals Value Chain Upgrade Serve growing low-cost global ethane middle class feedstock World-scale Produce manufacturing in-demand facilities and products proprietary technology 70,000+ end-user products 23
Slide 24: Chevron Phillips Chemical Company
Chevron Phillips Chemical Company Industry-leading safety performance with focus on Adjusted EBITDA1 operating excellence $B Proprietary technology Advantaged feedstock portfolio 1.7 1.6 1.5 1.3 1.3 Global marketing network Debottleneck opportunities 15 16 17 18 19 Capital Expenditures and Investmen
Slide 25: Macro Chemicals Outlook
Macro Chemicals Outlook 2019 Ethylene Production Cost Curve CENTS PER POUND 60 W. Europe M.E. Naphtha Naphtha W. Europe LPG Well-positioned in North America and 40 Asia Coal Asia Naphtha Middle East 20 N.A. Ethane N.A. Naphtha Asia LPG M.E. Ethane N.A. LPG M.E. LPG 0 0 20 40 60 80 100 120 140 160 18
Slide 26: Sustainability
Sustainability Enhancing efforts to eliminate plastic pellet spills by joining Operation Clean Sweep Blue and investing in Circulate Capital Ocean Fund Continue to combat plastic waste and improve perception of plastics Founding member of Alliance to End Plastic Waste 26
Slide 27: CPChem Growth Projects
CPChem Growth Projects U.S. Gulf Coast II Jointly pursuing development with Qatar Petroleum CPChem 51% equity interest 2,000 kMTA ethylene cracker Two 1,000 kMTA polyethylene units FID in 2021 with targeted startup in 2024 Ras Laffan Petrochemicals Project CPChem 30% equity interest 1,900 kMTA ethyl
Slide 28: Refining
Refining Billings Refinery BILLINGS, MT
Slide 29: Enhancing Returns
Enhancing Returns Adjusted EBITDA $B Top-quartile HSE performance 5.7 4.8 3.1 Strong cash generation 1.4 2.7 15 16 17 18 19 Capital and cost discipline High-return capital projects Capital Expenditures and Investments $B 1.1 1.1 1.0 0.9 0.8 Advantaged feedstocks 15 16 17 18 19 Sustaining Return 29 S
Slide 30: Refining Portfolio Competitiveness
Refining Portfolio Competitiveness Peer Comparison % High distillate yield Distillate Canadian Coking Capacity / Production / Imports / Crude Capacity Throughput Crude Runs Largest purchaser of advantaged Canadian crude Industry-leading coking capacity Low yield of high-sulfur fuel oil 38 38 37 34 3
Slide 31: North America Crude Feedstock Flexibility
North America Crude Feedstock Flexibility Atlantic Basin / Europe 537 MBD West Coast 364 MBD Central Crude Feedstock Slate Corridor % TOTAL CRUDE RUNS 530 MBD 22% 22% 22% 22% 23% 21% 17% 23% 23% 24% 27% 24% 24% 27% 20% 19% 17% 17% 18% 18% 16% Gulf Coast 40% 35% 36% 37% 34% 35% 37% 769 MBD 13 14 15 1
Slide 32: Maintain Cost Discipline
Maintain Cost Discipline U.S. Industry Benchmarking Performance1 EFFICIENCY POSITION Top quartile non-energy operating cost Maintenance and personnel costs trending to top 1st Quartile quartile in industry 2nd Quartile Cost efficiencies and improved productivity via AdvantEdge66 Artificial Intellige
Slide 33: AdvantEdge66
AdvantEdge66 BUSINESS TRANSFORMATION End-to-end value chain optimization Deploying digital technology to provide real-time information Leveraging advanced analytics to enable agile decision making Empowering our people to improve value generation Optimizing long-term value capture across the entire
Slide 34: Enhancing Returns
Enhancing Returns THROUGH CAPITAL INVESTMENTS 2019 Lake Charles isomerization unit High-return, quick payout Borger diesel recovery Wood River LSFO hydrotreater projects Bayway LSFO hydrotreater 2020 Sweeny FCC modernization Returns > 30% Humber UCO renewable diesel Ponca City FCC yield improvement
Slide 35: Marketing & Specialties
Marketing & Specialties Phillips 66 Branded Marketing Site ST. LOUIS, MO
Slide 36: Enhancing Returns
Enhancing Returns Adjusted EBITDA High-return, low-capital business $B Refining product placement 1.5 1.6 1.4 1.5 1.2 Fuel brands reimaging 15 16 17 18 19 Integration through equity partnerships Capital Expenditures and Investments $B Renewable diesel 0.4 Integrated digital platform 0.1 0.1 0.1 0.1
Slide 37: Secure Product Placements
Secure Product Placements United States ~4,200 sites reimaged since program inception All eligible sites are mobile enabled Direct consumer engagement Expanding partnerships with private labels Europe Proven low-cost, high-volume model Reimaging and high-grading the JET brand Adding 20 - 30 new JET
Slide 38: West Coast Marketing Joint Venture
West Coast Marketing Joint Venture Formed joint venture with large wholesale / retail operator Proven retail operational expertise Increases long-term placement of Phillips 66 refinery production Participates in retail fuel margins and store sales $50 - $60 MM incremental adjusted EBITDA per year To
Slide 39: Renewable Diesel
Renewable Diesel Portfolio approach for renewable diesel production Humber UCO renewable diesel project San Francisco renewable diesel production Offtake agreement with Ryze Renewables Pursuing opportunities to leverage existing infrastructure Leverage Marketing position to capture full value chain
Slide 40: AdvantEdge66
AdvantEdge66 BUSINESS TRANSFORMATION Go-to-Market Value Enablers Efficiency Enhanced Mobile Pay platform Develop Artificial Intelligence Enhance optimization tools machine learning Improved digital customer Automate the back-office experience Optimized payment systems 40
Slide 41: Financial Strategy
Financial Strategy Phillips 66 Headquarters HOUSTON, TX
Slide 42: Financial Strategy
Financial Strategy Disciplined capital allocation Committed to a secure, competitive and growing dividend Intrinsic value approach to share repurchases Maintain financial flexibility, strong investment grade credit rating Phillips 66 Headquarters HOUSTON, TX 42
Slide 43: Financial Strength
Financial Strength Flexibility to execute strategy through the cycle 30% 27% 29% 30% 27% 25% 26% 25% 22% 25% Investment grade credit ratings 27.4 27.2 27.2 PSX: A3 (Moody’s), BBB+ (S&P) 23.9 23.7 PSXP: Baa3 (Moody’s), BBB (S&P) Well-laddered debt maturities 10.1 11.2 11.8 10.1 8.9 $7.4 B total liqui
Slide 44: Adjusted EBITDA and Returns
Adjusted EBITDA and Returns Adjusted EBITDA Adjusted Earnings $B $ PER SHARE 10.1 11.71 8.6 7.6 7.67 8.05 4.7 5.9 4.38 2.82 15 16 17 18 19 15 16 17 18 19 Adjusted ROCE ROCE Peer Three-Year Avg % AFTER-TAX % AFTER-TAX Midstream Peers Refining Peers 18% Chemical Peers 14% 12% 12% 11% 10% 10% 11% Peer
Slide 45: Disciplined Capital Allocation
Disciplined Capital Allocation Fund sustaining capital to maintain asset integrity Sources and Used of Cash $B ~1 1.6 - 1.7 Committed to a secure, competitive and growing 7 6 1.5 - 2.5 dividend 1.5 - 2.5 Investing in growth projects with attractive returns Mid-Cycle CFO Sust. Capex FCF Dividends Gro
Slide 46: Adjusted Capital Expenditures
Adjusted Capital Expenditures Adjusted Capital Spending $B 2020B Adjusted Capital Spending1 4.3 3.5 3.3 2.8 Midstream 2.6 Sustaining PSX 1.8 Midstream Refining & PSXP Marketing 15 16 17 18 19 20B Sustaining Growth 1) Segments represent growth capital spend. 46 See appendix for additional footnotes.
Slide 47: Distributions
Distributions Annual Dividend $ PER SHARE Secure, competitive and growing dividend 3.10 3.50 12.5% increase in 2Q19 to $0.90 per share 2.45 2.73 2.18 25% CAGR with nine increases since May 2012 15 16 17 18 19 Committed to intrinsic value approach to share repurchases Cumulative Distributions 25.7 Au
Slide 48: Compelling Investment
Compelling Investment Total Shareholder Return Since IPO % OPERATING EXCELLENCE 340% PSX +320% 300% S&P 100 +168% GROWTH 260% Peers +158% 220% 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 Dec-19 Share price as
Slide 49: Phillips 66 Partners
Phillips 66 Partners Medford Spheres MEDFORD, OK
Slide 50: Phillips 66 Partners: Ownership Structure
Phillips 66 Partners OWNERSHIP STRUCTURE PSXP Public Non-economic general Common partner interest and 74% Unitholders limited partner interest 26% limited partner interest (NYSE: PSXP) Operating Subsidiaries Joint Ventures 50 As of December 31, 2019. Public also owns 13.8 MM convertible preferred un
Slide 51: Phillips 66 Partners: Strategic Fit
Phillips 66 Partners STRATEGIC FIT Competitive cost of capital Strong partnership fundamentals Robust growth profile High distribution coverage Solid financial position Midstream segment valuation transparency Phillips 66 owns 74% of LP common units Lake Charles Isomerization Unit LAKE CHARLES, LA 5
Slide 52: Phillips 66 Partners: Asset Map
Phillips 66 Partners ASSET MAP 52 Refineries owned by Phillips 66
Slide 53: Financial Strength and Flexibility
Phillips 66 Partners FINANCIAL STRENGTH AND FLEXIBILITY 2020 exit run-rate adjusted EBITDA of $1.5 B Distribution Per Common LP Unit $ Maintain strong leverage and coverage ratios, with long-term targets: 3.44 3.09 Up to 3.5x Debt / EBITDA 2.53 2.08 1.66 Greater than 1.2x coverage ratio Investment g
Slide 54: Phillips 66 Partners: Growth
Phillips 66 Partners GROWTH Organic Adjusted Capital Spending Gray Oak Pipeline $B South Texas Gateway Terminal 0.9 C2G Pipeline 0.8 0.7 Clemens Caverns expansion 0.5 Sweeny to Pasadena capacity expansion 0.4 0.2 Continued sponsor support with backlog of available projects 15 16 17 18 19 20B Sustain
Slide 55: Gray Oak Pipeline and South Texas Gateway Terminal
Phillips 66 Partners GRAY OAK PIPELINE AND SOUTH TEXAS GATEWAY TERMINAL Gray Oak Pipeline – 42.25% PSXP effective ownership Crude oil pipeline from Permian and Eagle Ford to Texas Gulf Coast Initial startup 4Q 2019; Full service expected in 2Q 2020 900 MBD West Texas crude capacity 42.25% PSXP effec
Slide 56: Sweeny Hub Infrastructure Growth
Phillips 66 Partners SWEENY HUB INFRASTRUCTURE GROWTH C2G Pipeline New 16 inch ethane pipeline to Gregory, Texas, near Corpus Christi Expected start up in mid-2021 Supplies Corpus Christi area petrochemical facilities Clemens Caverns Expansion Increasing Clemens Storage from 9 MMB to 16.5 MMB by 4Q
Slide 57: Phillips 66 Partners: Debt Profile
Phillips 66 Partners DEBT PROFILE Debt Maturity Profile $B PSXP Revolving Credit Facility PSXP Senior Notes 0.8 0.6 0.6 0.5 0.5 0.5 0.5 0.3 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 $3.5 B Total Debt as of December 31, 2019 Senior Notes $MM $3.5 B Senior Notes, weighted-a
Slide 58: Phillips 66 Partners: Value Proposition
Phillips 66 Partners VALUE PROPOSITION Total Unitholder Return Since IPO % Supports Phillips 66 Midstream growth PSXP: 250% +245% 150% Premier MLP with competitive cost of capital 50% AMZ: -50% (25%) Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18 Jul-19 Dec-19 Portfolio of highly integrated assets Stable
Slide 59: Beaumont Terminal
Beaumont Terminal NEDERLAND, TX
Slide 60: 2020 Sensitivities
2020 Sensitivities Annual EBITDA $MM Midstream - DCP (net to Phillips 66) 10¢/Gal Increase in NGL price 9 10¢/MMBtu Increase in Natural Gas price 3 $1/BBL Increase in WTI price 1 Chemicals - CPChem (net to Phillips 66) 1¢/Lb Increase in Chain Margin (Ethylene, Polyethylene, NAO) 65 Worldwide Refinin
Slide 61: Midstream Organic Growth
Midstream Organic Growth PSX PROJECT START-UP CAPACITY GROSS CAPITAL OWNERSHIP ($MM) (%) Beaumont Terminal expansion phase IV 1Q 2020 2.2 MMB 80 100 Beaumont Terminal Dock IV1 3Q 2020 200 MBD 70 100 Sweeny Fractionators 2 and 3 4Q 2020 2 x 150 MBD 1,300 1002 Sweeny Fractionator 4 2Q 2021 1 x 150 MBD
Slide 62: Value Chain
a Value Chain Global Markets Crude Oil Crude Pipelines, Product Pipelines, Y) Marine, Shipping Terminals and Marine and Rail Petrochemicals Wellhead NGLand_ Natural ) Gas Gathering Fractionation and Processing and Storage LPG Export and Marketing biguids and Natural Gas (e) Phillips 66 oO Phillips 6
Slide 63: Gray Oak Pipeline Ownership Structure
Gray Oak Pipeline Ownership Structure PSXP HAS A 42.25% EFFECTIVE OWNERSHIP IN THE GRAY OAK PIPELINE (NYSE: PSXP) (NYSE: ENB) 65% 35% Gray Oak Holdings, LLC 65% (NYSE: MPC) (NYSE: FANG) 25% 10% Gray Oak Pipeline, LLC 63
Slide 64: Consolidated Debt and Liquidity
Consolidated Debt and Liquidity Debt Maturity Profile $B PSX Senior Notes PSXP Senior Notes PSX Term Loan PSXP Revolving Credit Facility PSX Revolving Credit Facility 5.0 2.0 0.5 1.5 1.7 0.5 0.8 0.8 1.0 0.5 0.5 0.5 0.6 0.5 0.6 0.3 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046
Slide 65: Phillips 66 Outlook
Phillips 66 Outlook 1Q 2020 Global Olefins & Polyolefins utilization Mid-90% Refining crude utilization ~90% Refining turnaround expenses (pre-tax) $280 MM - $330 MM Corporate & Other costs (pre-tax) $200 MM - $220 MM 2020 Refining turnaround expenses (pre-tax) $630 MM - $680 MM Corporate & Other co
Slide 66: Footnotes
Footnotes General Information disclosed is as of December 31, 2019, unless noted otherwise. Numbers may not appear to tie due to rounding. AdvantEdge66 may be abbreviated as AE66. Chevron Phillips Chemical Company may be abbreviated as CPChem. Date Conventions 19 is as of December 31, 2019; or the t
Slide 67: Footnotes
Footnotes Maps Maps, images and drawings are for informational purposes only and may not be to scale. Slides 5, 15, 16, 18, 19, 22, 31, 38, 52 67
Slide 68: Footnotes
Footnotes Slide 4, 47 Total distributions include 2014 PSPI share exchange and are through December 31, 2019. Dividend CAGR calculated from initial dividend of $0.20 per share in 3Q 2012 to last increase of $0.90 per share in 2Q 2019. Slide 6 Industry averages are from: Phillips 66 – American Fuel &
Slide 69: Footnotes
Footnotes Slides 10, 11 Refining growth EBITDA calculated using average 2016 to 2019 growth capital and assuming 30% returns. Marketing and Specialties growth EBITDA calculated using West Coast Marketing joint venture incremental EBITDA and average 2016 to 2019 growth capital and assuming 30% return
Slide 70: Footnotes
Footnotes Slide 13 Statistics include assets owned by PSXP. Crude oil terminals includes rail racks. Slide 14 2015 capital spend exclude $1.5 B investment in DCP Midstream. 2019 adjusted capital spend excludes $0.4 B of growth capital cash funded by certain of our Gray Oak joint venture partners. Sl
Slide 71: Footnotes
Footnotes Slide 34 PSXP owns 99% of the Lake Charles isomerization unit. Slide 38 EBITDA estimate based on Phillips 66 proportional share of West Coast Marketing joint venture. Slides 44 Adjusted ROCE peer avg for 2019 is based on 4Q 2018 through 3Q 2019 due to peer data availability. Adjusted ROCE
Slide 72: Footnotes
Footnotes Slide 45 2015 capital expenditures include $1.5 B investment in DCP Midstream. 2020 Mid-cycle CFO calculated using mid-cycle adjusted EBITDA and adjusted for estimated interest, taxes and noncontrolling interest for growth projects. See footnote for Slide 10. These forecasted annual EBITDA
Slide 73: Footnotes
Footnotes Slide 53 Adjusted EBITDA and Distributable Cash Flow shown are attributable to PSXP. Debt-to-EBITDA ratio is calculated on a credit facility covenant basis, which requires certain adjustments to total debt and EBITDA. Slide 54 2019 and 2020B adjusted capital spending exclude $0.4 B and $0.
Slide 74: Non-GAAP Reconciliation
Non-GAAP Reconciliation SLIDE 44 Millions of Dollars Except as Indicated 2015 2016 2017 2018 2019 Reconciliation of Consolidated Earnings to Adjusted Earnings Consolidated Earnings $ 4,227 1,555 5,106 5,595 3,076 Pre-tax adjustments: Pending claims and settlements 30 (117) (60) 21 (21) Pension settl
Slide 75: Non-GAAP Reconciliation
Non-GAAP Reconciliation SLIDE 44 Millions of Dollars 2012 2013 2014 2015 2016 2017 2018 2019 Reconciliation of Phillips 66 Net Income to Adjusted EBITDA Phillips 66 net income $ 4,131 3,743 4,797 4,280 1,644 5,248 5,873 3,377 Less: Income from discontinued operations 48 61 706 — — — — — Plus: Income
Slide 76: Non-GAAP Reconciliation
Non-GAAP Reconciliation SLIDE 10, 11, 14, 45 Millions of Dollars 2012 2013 2014 2015 2016 2017 2018 2019 Reconciliation of Midstream Pre-Tax Income to Adjusted EBITDA Midstream pre-tax income $ 88 750 851 147 402 638 1,181 684 Plus: Interest revenue — — — — — (1) — — Depreciation and amortization 83
Slide 77: Non-GAAP Reconciliation
Non-GAAP Reconciliation SLIDE 10, 11, 24, 45 Millions of Dollars 2012 2013 2014 2015 2016 2017 2018 2019 Reconciliation of Chemicals Pre-Tax Income to Adjusted EBITDA Chemicals pre-tax income $ 1,189 1,361 1,632 1,315 839 716 1,025 879 Plus: None — — — — — — — — Chemicals EBITDA 1,189 1,361 1,632 1,
Slide 78: Non-GAAP Reconciliation
Non-GAAP Reconciliation SLIDE 10, 11, 29, 45 Millions of Dollars 2012 2013 2014 2015 2016 2017 2018 2019 Reconciliation of Refining Pre-Tax Income to Adjusted EBITDA Refining pre-tax income $ 5,089 2,782 2,467 3,659 436 2,076 4,535 1,986 Plus: Depreciation and amortization 655 685 704 738 769 821 84
Slide 79: Non-GAAP Reconciliation
Non-GAAP Reconciliation SLIDE 10, 11, 36, 45 Millions of Dollars 2012 2013 2014 2015 2016 2017 2018 2019 Reconciliation of Marketing & Specialties Pre-Tax Income to Adjusted EBITDA Marketing and Specialties pre-tax income $ 863 1,327 1,475 1,652 1,261 1,020 1,557 1,433 Plus: Interest revenue — — — (
Slide 80: Non-GAAP Reconciliation
Non-GAAP Reconciliation SLIDE 10, 11, 45 Millions of Dollars 2012 2013 2014 2015 2016 2017 2018 2019 Reconciliation of Corporate & Other Pre-Tax Loss to Adjusted EBITDA Corporate and Other pre-tax loss $ (673) (694) (680) (729) (747) (895) (853) (804) Plus: Net interest expense 231 258 246 285 321 4
Slide 81: Non-GAAP Reconciliation
Non-GAAP Reconciliation SLIDE 14 Millions of Dollars 2015 2016 2017 2018 2019 Reconciliation of DCP Midstream Pre-Tax Income (Loss) to Adjusted EBITDA DCP Midstream pre-tax income (loss) $ (463) (34) 76 106 (784) Plus: None — — — — — DCP Midstream EBITDA (463) (34) 76 106 (784) Special Item Adjustme
Slide 82: Non-GAAP Reconciliation
Non-GAAP Reconciliation SLIDE 53 Millions of Dollars 2015 2016 2017 2018 2019 Phillips 66 Partners Reconciliation of Adjusted EBITDA and Distributable Cash Flow to Net Income Net income attributable to Phillips 66 Partners $ 194 301 461 796 923 Plus: Net income attributable to Predecessors 112 107 6
Slide 83: Non-GAAP Reconciliation
Non-GAAP Reconciliation SLIDE 53 Millions of Dollars 2015 2016 2017 2018 2019 Phillips 66 Partners Reconciliation of Adjusted EBITDA and Distributable Cash Flow to Net Cash Provided by Operating Activities Net cash provided by operating activities* $ 392 492 724 892 1,016 Plus: Net interest expense
Slide 84: Non-GAAP Reconciliation
Non-GAAP Reconciliation SLIDE 7, 14, 24, 29, 36, 46 Millions of Dollars 2012 2013 2014 2015 2016 2017 2018 2019 Phillips 66 Capital Expenditures and Investments Midstream Growth $ 548 429 2,021 2,801 1,267 597 1,360 1,605 Sustaining 159 168 152 1,656 186 174 188 264 Total 707 597 2,173 4,457 1,453 7
Slide 85: Non-GAAP Reconciliation
Non-GAAP Reconciliation SLIDE 11, 24, 54 Millions of Dollars 2012 2013 2014 2015 2016 2017 2018 2019 Proportional Share of Select Equity Affiliates Capital Expenditures and Investments* DCP Midstream (Midstream) $ 1,324 971 776 438 99 268 484 472 CPChem (Chemicals) Growth 239 403 726 1,136 743 571 1
Slide 86: Non-GAAP Reconciliation
Non-GAAP Reconciliation SLIDE 46, 54 Millions of Dollars Sustaining Growth Capital Capital Capital Program 2020 Adjusted Capital Program Midstream1 Phillips 662 $ 167 887 1,054 Phillips 66 Partners3 133 734 867 300 1,621 1,921 Chemicals — — — Refining4 600 450 1,050 Marketing & Specialties 82 79 161
Slide 87: Non-GAAP Reconciliation
Non-GAAP Reconciliation SLIDE 43 Millions of Dollars Except as Indicated Debt-to-Capital Debt-to-Capital Ratio Total Debt Total Equity Ratio December 31, 2019 Phillips 66 Consolidated $ 11,763 27,169 30% PSXP* 3,516 2,229 Phillips 66 Excluding PSXP $ 8,247 24,940 25% December 31, 2018 Phillips 66 Co
Slide 88: Non-GAAP Reconciliation
Non-GAAP Reconciliation SLIDE 44 Millions of Dollars 2015 2016 2017 2018 2019 Phillips 66 ROCE Numerator Net income $ 4,280 1,644 5,248 5,873 3,377 After-tax interest expense 201 220 285 398 362 GAAP ROCE earnings 4,481 1,864 5,533 6,271 3,739 Special items (34) (57) (2,837) (51) 581 Adjusted ROCE e