Slide 1: First Quarter 2020 Conference Call
FIRST QUARTER 2020 CONFERENCE CALL May 1, 2020 First Quarter 2020 Conference Call 1 Phillips 66 Branded Marketing Site ST. LOUIS, MO
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 Freeport Terminal LPG Facility FREEPORT, TX First Quarter 2020 Conference Call 3
Slide 4: 1Q 2020 Overview
1Q 2020 Overview Lake Charles Isomerization Unit WESTLAKE, LA $MM (UNLESS OTHERWISE NOTED) Adjusted earnings $ 450 Adjusted EPS1 1.02 Operating cash flow excluding working capital2 736 Adjusted capital spending3 900 Shareholder distributions4 839 Common shares outstanding at March 31 437 MM 1) Dolla
Slide 5: 1Q 2020 Adjusted Earnings
1Q 2020 Adjusted Earnings 1Q 2020 VS. 4Q 2019 ($MM) 201 14 55 20 212 5 689 450 (746) 4Q 2019 Midstream Chemicals Marketing Corporate Refining Income Noncontrolling 1Q 2020 Adjusted & Specialties & Other Taxes Interests Adjusted Earnings Earnings 460 193 488 (197) (401) (24) (69) 1Q 2020 Adjusted Pre
Slide 6: 1Q 2020 Midstream Adjusted Pre-Tax Income
1Q 2020 Midstream Adjusted Pre-Tax Income 1Q 2020 VS. 4Q 2019 ($MM) 46 Transportation volumes 59 impacted by lower refinery utilization (50) 460 Record NGL & Other results 405 DCP Midstream capital and cost reductions 4Q 2019 Transportation NGL & DCP 1Q 2020 Adjusted Other Midstream Adjusted Pre-Tax
Slide 7: 1Q 2020 Chemicals Adjusted Pre-Tax Income
1Q 2020 Chemicals Adjusted Pre-Tax Income 1Q 2020 VS. 4Q 2019 ($MM) 39 4 98% O&P utilization (23) Record domestic ethylene and polyethylene 193 production 173 Planned capital and cost reductions 4Q 2019 Olefins & Specialties, Other 1Q 2020 Adjusted Polyolefins Aromatics Adjusted Pre-Tax Income & Sty
Slide 8: 1Q 2020 Refining Adjusted Pre-Tax Loss
1Q 2020 Refining Adjusted Pre-Tax Loss 1Q 2020 VS. 4Q 2019 ($MM) 83% crude utilization 345 (257) 82% clean product yield (249) (401) $7.11/BBL realized margin (110) (130) $329 MM turnaround costs 1Q 2020 4Q 2019 Atlantic Gulf Central West Adjusted Basin / Coast Corridor Coast Adjusted Pre-Tax Income
Slide 9: 1Q 2020 Refining Margins – Market vs. Realized
1Q 2020 Refining Margins – Market vs. Realized WORLDWIDE REFINING ($/BBL, UNLESS OTHERWISE NOTED) (1.01) (1.32) (0.21) (0.17) 9.82 7.11 1Q 2020 Configuration Secondary Feedstock Other 1Q 2020 Market Products Realized 3:2:1 Margin Avg Market Crude: $48.73 72% Market Capture First Quarter 2020 Confere
Slide 10: 1Q 2020 Marketing & Specialties Adjusted Pre-Tax Income
1Q 2020 Marketing & Specialties Adjusted Pre-Tax Income 1Q 2020 VS. 4Q 2019 ($MM) 197 4 Higher global marketing margins Reimaged 269 branded sites 488 worldwide 287 Refined product exports of 160 MBPD 4Q 2019 Marketing Specialties 1Q 2020 Adjusted & Other Adjusted Pre-Tax Income Pre-Tax Income 434 5
Slide 11: 1Q 2020 Corporate & Other Adjusted Pre-Tax Loss
1Q 2020 Corporate & Other Adjusted Pre-Tax Loss 1Q 2020 VS. 4Q 2019 ($MM) 4Q 2019 Corporate 1Q 2020 Adjusted Net Interest Overhead Adjusted Pre-Tax Loss Expense & Other Pre-Tax Loss (211) (197) 13 1 First Quarter 2020 Conference Call 11
Slide 12: Cash Flow
1Q 2020 Cash Flow $B 1.2 0.7 (0.9) (0.5) (0.8) (0.1) 1.6 1.2 December 31, CFO Working Debt Adjusted Shareholder Other March 31, 2019 (excluding Capital Capital Distributions 2020 Cash Working Spending2 Cash Balance1 Capital) Balance1 First Quarter 2020 Conference Call 12 1) Includes cash and cash eq
Slide 13: 2Q 2020 Outlook
2Q 2020 Outlook Bayway Refinery LINDEN, NJ Global Olefins & Polyolefins utilization Mid-90% Refining crude utilization Market Conditions Refining turnaround expenses (pre-tax) $45 MM – $70 MM Corporate & Other costs (pre-tax) $200 MM – $220 MM First Quarter 2020 Conference Call 13
Slide 14: Questions and Answers
Questions and Answers Beaumont Terminal NEDERLAND, TX
Slide 15: Appendix
Appendix Beaumont Terminal NEDERLAND, TX
Slide 16: 2020 Estimated Sensitivities
2020 Estimated Sensitivities Annual EBITDA $MM Midstream - DCP (net to Phillips 66) 10¢/Gal Increase in NGL price 9 10¢/MMBtu Increase in Natural Gas price 2 $1/BBL Increase in WTI price 1 Chemicals - CPChem (net to Phillips 66) 1¢/Lb Increase in Chain Margin (Ethylene, Polyethylene, NAO) 65 Worldwi
Slide 17: Capital Structure
Capital Structure Consolidated PSX Excluding PSXP 35% 30% 31% 29% 27% 33% 25% 25% 27% 22% 28% 23% 22% 20% 17% 14% 27.4 27.2 27.2 23.6 25.1 24.7 24.9 21.4 11.8 13.0 10.1 11.2 8.1 8.2 9.4 1.2 7.2 1.3 1.1 3.1 3.0 1.6 2.9 3.0 2017 2018 2019 1Q 2017 2018 2019 1Q 2020 2020 Equity $B Debt $B Cash & Cash Eq
Slide 18: Refining Margins – Atlantic Basin / Europe
1Q 2020 Refining Margins – Market vs. Realized ATLANTIC BASIN / EUROPE ($/BBL, UNLESS OTHERWISE NOTED) 0.12 Brent: $50.26 (0.45) 8.20 81% crude utilization 0.25 (5.74) 2.38 29% market capture 1Q 2020 Configuration Secondary Feedstock Other 1Q 2020 Market Products Realized 3:2:1 Margin Market 3:2:1 -
Slide 19: Refining Margins – Gulf Coast
1Q 2020 Refining Margins – Market vs. Realized GULF COAST ($/BBL, UNLESS OTHERWISE NOTED) LLS: $48.30 0.73 0.42 (1.38) (0.94) 7.93 84% crude utilization 6.76 85% market capture 1Q 2020 Configuration Secondary Feedstock Other 1Q 2020 Market Products Realized 3:2:1 Margin Market 3:2:1 - LLS / Gasoline
Slide 20: Refining Margins – Central Corridor
1Q 2020 Refining Margins – Market vs. Realized CENTRAL CORRIDOR ($/BBL, UNLESS OTHERWISE NOTED) 2.10 WTI: $45.97 3.32 (0.52) (2.31) 13.50 89% crude utilization 10.91 124% market capture 1Q 2020 Configuration Secondary Feedstock Other 1Q 2020 Market Products Realized 3:2:1 Margin Market 3:2:1 - WTI /
Slide 21: Refining Margins – West Coast
1Q 2020 Refining Margins – Market vs. Realized WEST COAST ($/BBL, UNLESS OTHERWISE NOTED) (0.55) 0.48 ANS: $51.40 (2.55) 14.62 77% crude utilization (7.20) 4.80 33% market capture 1Q 2020 Configuration Secondary Feedstock Other 1Q 2020 Market Products Realized 3:2:1 Margin Market 3:2:1 - ANS / Los A
Slide 22: 1Q 2020 Adjusted Earnings vs. 1Q 2019
1Q 2020 Adjusted Earnings 1Q 2020 VS. 1Q 2019 ($MM) 42 283 13 (3) 144 (34) 450 187 (182) 1Q 2019 Midstream Chemicals Refining Marketing Corporate Income Noncontrolling 1Q 2020 Adjusted & Specialties & Other Taxes Interests Adjusted Earnings Earnings 460 193 (401) 488 (197) (24) (69) 1Q 2020 Adjusted
Slide 23: 1Q 2020 Midstream Adjusted Pre-Tax Income
1Q 2020 Midstream Adjusted Pre-Tax Income 1Q 2020 VS. 1Q 2019 ($MM) 58 89 (3) 460 316 1Q 2019 Transportation NGL & Other DCP 1Q 2020 Adjusted Midstream Adjusted Pre-Tax Income Pre-Tax Income 200 179 81 1Q 2020 First Quarter 2020 Conference Call 23
Slide 24: 1Q 2020 Chemicals Adjusted Pre-Tax Income
1Q 2020 Chemicals Adjusted Pre-Tax Income 1Q 2020 VS. 1Q 2019 ($MM) 6 (26) (14) 227 193 1Q 2019 Olefins & Specialties, Other 1Q 2020 Adjusted Polyolefins Aromatics & Adjusted Pre-Tax Income Styrenics Pre-Tax Income 193 12 (12) 1Q 2020 First Quarter 2020 Conference Call 24
Slide 25: 1Q 2020 Refining Adjusted Pre-Tax Loss
1Q 2020 Refining Adjusted Pre-Tax Loss 1Q 2020 VS. 1Q 2019 ($MM) 1Q 2019 Atlantic 1Q 2020 Adjusted Basin / Gulf Central Adjusted Pre-Tax Loss Europe Coast Corridor West Coast Pre-Tax Loss (219) (401) 167 (189) (105) (55) (196) (173) 223 (255) 1Q 2020 First Quarter 2020 Conference Call 25
Slide 26: 1Q 2020 Marketing & Specialties Adjusted Pre-Tax Income
1Q 2020 Marketing & Specialties Adjusted Pre-Tax Income 1Q 2020 VS. 1Q 2019 ($MM) 296 (13) 488 205 1Q 2019 Marketing Specialties 1Q 2020 Adjusted & Other Adjusted Pre-Tax Income Pre-Tax Income 434 54 1Q 2020 First Quarter 2020 Conference Call 26
Slide 27: 1Q 2020 Corporate & Other Adjusted Pre-Tax Loss
1Q 2020 Corporate & Other Adjusted Pre-Tax Loss 1Q 2020 VS. 1Q 2019 ($MM) 1Q 2019 Corporate 1Q 2020 Adjusted Net Interest Overhead Adjusted Pre-Tax Loss Expense & Other Pre-Tax Loss (210) (197) 8 5 First Quarter 2020 Conference Call 27
Slide 28: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2020 2019 1Q 4Q 1Q Phillips 66 Consolidated Earnings (Loss) $ (2,496) 736 204 Pre-Tax Adjustments: Pending claims and settlements (37) — (21) Impairments 3,006 — — Certain tax impacts — (90) — Lower-of-cost-or-market inventory adjustme
Slide 29: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2020 2019 1Q 4Q 1Q Midstream Pre-Tax Income (Loss) $ (702) 405 316 Pre-Tax Adjustments: Lower-of-cost-or-market inventory adjustments 1 — — Impairments 1,161 — — Adjusted Pre-Tax Income $ 460 405 316 Chemicals Pre-Tax Income $ 169 150
Slide 30: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2020 2019 1Q 4Q 1Q Refining Pre-Tax Income (Loss) $ (2,261) 345 (198) Pre-Tax Adjustments: Pending claims and settlements — — (21) Impairments 1,845 — — Lower-of-cost-or-market inventory adjustments 15 — — Adjusted Pre-Tax Income (Loss
Slide 31: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2020 2019 1Q 4Q 1Q Midstream - Transportation Pre-Tax Income $ 200 250 203 Pre-Tax Adjustments: None — — — Adjusted Pre-Tax Income $ 200 250 203 Midstream - NGL & Other Pre-Tax Income $ 179 120 90 Pre-Tax Adjustments: None — — — Adjust
Slide 32: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2020 2019 1Q 4Q 1Q Chemicals - Olefins & Polyolefins Pre-Tax Income $ 177 131 219 Pre-Tax Adjustments: Lower-of-cost-or-market inventory adjustments 16 23 — Adjusted Pre-Tax Income $ 193 154 219 Chemicals - Specialties, Aromatics & Sty
Slide 33: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2020 2019 1Q 4Q 1Q Refining - Atlantic Basin / Europe Pre-Tax Income (Loss) $ (637) 61 (7) Pre-Tax Adjustments: Impairments 441 — — Adjusted Pre-Tax Income (Loss) $ (196) 61 (7) Refining - Gulf Coast Pre-Tax Income (Loss) $ (843) 76 (1
Slide 34: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2020 2019 1Q 4Q 1Q Refining - Central Corridor Pre-Tax Income (Loss) $ (227) 333 77 Pre-Tax Adjustments: Pending claims and settlements — — (21) Lower-of-cost-or-market inventory adjustments 15 — — Impairments 435 — — Adjusted Pre-Tax
Slide 35: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2020 2019 1Q 4Q 1Q Marketing & Specialties - Marketing & Other Pre-Tax Income $ 471 327 138 Pre-Tax Adjustments: Certain tax impacts — (90) — Pending claims and settlements (37) — — Adjusted Pre-Tax Income $ 434 237 138 Marketing & Spe
Slide 36: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars (Except as Indicated) 1Q 2020 Atlantic Basin/ Central Europe Gulf Coast Corridor West Coast Worldwide Realized Refining Margins Loss before income taxes $ (637) (843) (227) (554) (2,261) Plus: Taxes other than income taxes 19 37 17 31 104 Depreciation, am
Slide 37: Non-GAAP Reconciliations
Non-GAAP Reconciliations 1Q 2020 Numerator ($MM) Net Loss $ (2,427) After-tax interest expense 88 GAAP ROCE loss (2,339) After-tax special items 2,946 Adjusted ROCE earnings $ 607 Denominator ($MM) GAAP average capital employed1 $ 37,767 2020 Annualized GAAP ROCE (25)% 2020 Annualized Adjusted ROCE
Slide 38: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars (Except as Indicated) March 31, 2020 Phillips 66 Phillips 66 Phillips 66 Excluding Consolidated Partners1 Phillips 66 Partners Total Debt $ 12,963 3,516 9,447 Total Equity 23,639 2,233 21,406 Debt-to-Capital Ratio 35% 31% Total Cash & Cash Equivalents $ 1
Slide 39: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars 1Q 2020 Growth Sustaining Total Capital Expenditures and Investments Midstream $ 529 51 580 Refining 98 147 245 Marketing & Specialties 16 9 25 Corporate & Other 1 49 50 Adjusted Capital Spending 644 256 900 Capital Spending Funded by Certain Joint Ventur
Slide 40: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 1Q 2020 Effective Tax Rates Loss before income taxes $ (2,478) Special items 3,021 Adjusted income before income taxes $ 543 Income tax benefit $ (51) Special items 75 Adjusted income tax expense $ 24 GAAP effective tax rate 2.1% Adjus