Phillips 66 · NYSE:PSX
Phillips 66 — Shareholder Meeting (May 2018)
16 slides from Phillips 66's shareholder meeting presentation, May 9, 2018
Slide 1: 2018 Annual Meeting of Shareholders
2018 Annual Meeting of Shareholders May 9, 2018 Houston, TX NYSE: PSX www.phillips66.com CPChem’s Cedar Bayou Ethane Cracker
Slide 2: Cautionary Statement
Cautionary Statement This presentation contains certain forward-looking statements. Words and phrases such as “is anticipated,” “is estimated,” “is expected,” “is planned,” “is scheduled,” “is targeted,” “believes,” “intends,” “objectives,” “projects,” “strategies” and similar expressions are used t
Slide 3: Providing Energy. Improving Lives.
Providing Energy. Improving Lives. 2017 Highlights 73,000 hours volunteered in local communities by employees 24 million dollars donated to education & literacy, environment & sustainability, and safety & preparedness 4 million dollars in disaster relief funding 4 million dollars provided to employe
Slide 4: Executing Strategy
Executing Strategy Operating High-Performing Growth Returns Distributions Excellence Organization 0.14 recordable injury CPChem USGC Refinery yield and Returned over $20B to Building capabilities rate petrochemical project feedstock flexibility shareholders since projects 2012 through share Doing th
Slide 5: Operating Excellence
Operating Excellence Total Recordable Rates Refining Environmental Metrics (Incidents per 200,000 Hours Worked) (No. of events) Industry Average ’13 ’14 ’15 ’16 ’17 317 302 279 264 242 Phillips 66 CPChem DCP Midstream 2013 2014 2015 2016 2017 Operating Costs and SG&A Refining Capacity Utilization ($
Slide 6: Environmental, Social, Governance
Environmental, Social, Governance Board engaged in setting company ESG Industry Safety Metrics (Incidents per 200,000 Hours Worked) strategy 6 Extensive ESG engagement 4 2 Record low reportable environmental events 0 Agricul., Food All Construction Prof. Petroleum Petchem. Phillips 66 Investing in f
Slide 7: Growth
Growth USGC Petrochemicals Project Bakken Pipeline Beaumont Terminal Gulf Coast pipelines Sweeny Hub Phase 2 Phillips 66 Partners Beaumont Terminal, Nederland, TX 6
Slide 8: Returns
Returns Billings Refinery heavy crude project Ponca City Refinery yield flexibility Bayway Refinery FCC modernization Wood River Refinery FCC modernization Lake Charles Refinery crude flexibility Enhancing U.S. fuel brands Expanding Europe retail sites Vacuum Tower, Billings Refinery, Billings, MT 7
Slide 9: Capital Allocation
Capital Allocation Maintain financial strength, strong Consolidated Capital Expenditures ($B) 5.8 investment-grade credit rating 3.8 2.8 1.8 1.8 2.3 Fund sustaining capital expenditures 2013 2014 2015 2016 2017 2018E PSX PSXP Pay a secure, competitive and Cumulative Distributions ($B) growing divide
Slide 10: High-Performing Organization
High-Performing Organization Highly engaged workforce Valuing inclusion and diversity Investing in employee and leadership development Improving performance management Building capabilities, pursuing excellence and always doing the right thing 9
Slide 11: Delivering Shareholder Returns
Delivering Shareholder Returns Total Shareholder Return Integrated portfolio PSX +312% 340% 300% Disciplined capital allocation Peers +218% 260% S&P 100 +110% 220% Returns focused 180% 140% Value-added growth 100% 60% Strong balance sheet 20% -20% Compelling investment May-12 May-13 May-14 May-15 Ma
Slide 12: Phillips 66 - Providing Energy. Improving Lives.
PHILLIPS PHILLIPS 66" Providing Energy. Improving Lives.°
Slide 13: 2018 Sensitivities
2018 Sensitivities Sensitivities shown above are independent and are only valid within a limited price range. 12
Slide 14: Footnotes
Footnotes Slide 4 Industry averages are from: Phillips 66 – American Fuel & Petrochemical Manufacturers (AFPM) refining data, Chevron Phillips Chemical Company LLC (CPChem) – American Chemistry Council (ACC), DCP Midstream, LLC (DCP Midstream) – Gas Processors Association (GPA). Slide 5 Industry saf
Slide 15: Footnotes
Footnotes Slide 10 Chart reflects total shareholder return May 1, 2012 to May 4, 2018. Dividends assumed to be reinvested in stock. Source: Bloomberg. Peer average includes Delek US Holdings, Inc., HollyFrontier Corporation, Marathon Petroleum Corporation, PBF Energy Inc., Andeavor (formerly Tesoro
Slide 16: Non-GAAP Reconciliation (slide 4)
Non-GAAP Reconciliation (slide 4) Millions of Dollars 2013 2014 2015 2016 2017 Production and operating expenses $ 4,206 $ 4,435 $ 4,294 $ 4,275 $ 4,699 Selling, general and administrative expenses 1,478 1,663 1,670 1,638 1,695 5,684 6,098 5,964 5,913 6,394 Plus: Sentinel operating expenses* 81 90 8