Phillips 66 · NYSE:PSX
Phillips 66 — Investor Presentation (November 2024)
63 slides from Phillips 66's investor presentation, Nov 4, 2024
Slide 1: Investor Update November 2024
PHILLIPS (66) ® Investor Update November 2024
Slide 2: Cautionary Statement
3 Cautionary Statement This presentation contains forward-looking statements within the meaning of the federal securities laws relating to Phillips 66's operations, strategy and performance, including statements regarding our plans, goals, targets, aspirations, commitments, strategies, or expectatio
Slide 3: Differentiated and Attractive Investment Opportunity
Differentiated and Attractive Investment Opportunity GROWING MAINTAINING Cash Generation Capital Discipline +$4 B mid-cycle adjusted EBITDA 12% average ROCE since target increase ($14 B) by 2025 a 2012 gp 75% of adjusted EBITDA growth $0.3 B of sustaining capital outside refining efficiencies since
Slide 4: Strategic Priorities
’ Strategic Priorities Achieved two priorities ahead of schedule and continued progress on remaining four 4% Deliver Shareholder $12.5 B shareholder distributions since July 2022 44 Returns On track to meet $13 B - $15 B target by year-end 2024 @, Improve Refining 7 consecutive quarters above indust
Slide 5: Leading Integrated Downstream Energy Provider
Leading Integrated Downstream Energy Provider Positioned for value creation through economic cycles , a | Shareholder mM Distributions EN (om, Operating Excellence — CHEMICALS High-Performing Chemicals and polymers the world needs Organization + 95% advantaged feedstock portfolio. — + Proprietary te
Slide 6: Providing Energy. Improving Lives.
Providing Energy. Improving Lives. The products we help make improve lives and make modern life possible Transportation Fuels trucks, ships, planes Roads asphalt, paint Agriculture fertilizers, insecticides, irrigation pipe Housing roofing, carpet, insulation Electric Vehicles batteries, rubber tire
Slide 7: 2025 Mid-Cycle Adjusted EBITDA Target by Segment
2025 MID-CYCLE ADJUSTED EBITDA TARGET BY SEGMENT' ($8) Over 60% of mid-cycle adjusted EBITDA from non refining $14 2025 Mid-Cycle Adjusted EBITDA Target = Midstream = Chemicals = Refining = Marketing & Specialties = Renewable Fuels 1. Corporate cost target i reflected in the mid-cycle adjusted EBITD
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¹ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Slide 9: Edmonton Hardisty Calgary
Edmonton Hardisty Calgary Billings Patoka Houston Cushing
Slide 10: Integration: Central Corridor
Integration: Central Corridor CENTRAL CORRIDOR OPTIMIZATION Crude Crude Natural Gathering and Infrastructure Oil Gas/NGLs Processing © ae @ Long Haul Refining Pipelines Natural Gas Markets. Clean Products Infrastructure Fractionation (O) © Chemicals Marketing & Specialties @@ Midstream Mi Refining M
Slide 11: Integration: Sweeny Hub
SWE (Ry © Refining e@ Natural Gas/NGLs ENY HUB @ ©|@ Clean Products Infrastructure Markets Chemicals Global Chemicals ' Integration: Sweeny Hub Gathering and Processing Long Haul Pipelines Natural Gas Markets Fractionation Global LPG. Markets Refining light ends sent to fracs enabling high crude rat
Slide 12: Advancing Wellhead-to-Market Strategy
Advancing Wellhead-to-Market Strategy 1Q 2022 3Q 2022 2Q 2023 2Q 2024 3Q 2024 3Q 2024 T DCP Initial T Rockies Express T $400 MM of DCP Transaction Ipeline Sale i PSXP Buy-In . DCP Buy-In Pinnacle Ss ies Captured Completed (Controlling Interest) (Public Units) Acquisition ynergies Capture’ ADJUSTED E
Slide 13: NGL Long-Haul Pipelines Outlook
* 78% of current NGL long-haul volumes are under long-term contracts? * Majority of remaining 22% of volume that expires within the next 5 years moves at current market rates * Pinnacle acquisition and organic growth supports long-term volume stability * Shipped volumes greater than PSX capacity unt
Slide 14: Pinnacle Acquisition Furthers Wellhead-to-Market Strategy
Pinnacle Acquisition Furthers Wellhead-to-Market Strategy Permian G&P Acquisition Supports Scale in World Class Midland Basin Financials * $567 MM purchase price; ~7x EBITDA multiple + Immediately accretive + ~5.5x EBITDA multiple including downstream value generation * Closed July 1, 2024 Strategic
Slide 15: Commenced Operations at Rodeo Renewable Energy Complex
2021 @ Unit 250 ~7 MBD renewable feed processing 2022 @ Final investment decision on Rodeo Renewed project 2023 e@ Unit 250 ~10 MBD renewable feed processing 1Q 2024 @ ~30 MBD renewable feed processing Processing renewable feedstocks only Commenced Operations at Rodeo Renewable Energy Complex 2Q 202
Slide 16: Progression on Non-Core $3 B Asset Disposition Target
Progression on Non-Core $3 B Asset Disposition Target + tar. Segment Announceme: Announced Disposition Belle Chasse Terminal Midstream $0.1B 4Q 2022 South Texas Gateway Terminal Midstream 0.3B 2Q 2023 Rockies Express Pipeline Midstream 07B 2Q 2024 $ 2 Lt 7 B of Discovery Pipeline and Offshore Assets
Slide 17: Industry Solutions
• • • Capacity Capacity Additions Industry Solutions $18 Automotive $16 Energy & Chemical $14 Food & Agriculture $12 Home and Electronics $10 Medical & Pharmaceutical $8 $6 Personal Care $4 Recreational $2 Industrial $0
Slide 18: Renewable Fuels, Refining, M&S, Chemicals, Midstream
Renewable Fuels Refining M&S Chemicals Midstream
Slide 19: Achieved Business Transformation Target
Achieved Business Transformation Target Driving a culture of disciplined soend and continuous cost improvement TARGET SAVINGS Other Segment Controllable Costs? $225 MM (impacting operating and SG&A expenses) $1.4 B in run-rate savings Freight and Other Costs? (impacting gross margin) Refining Adjust
Slide 20: Adjusted Controllable Costs
2022 Inflation Turnaround Expense Market San Francisco Refinery Cost Reduction 1H 2024 Adjusted Controllable Costs, Excl Turnaround Expense Adjusted Turnaround Expense 4
Slide 21: Improving Refining Performance to Capture Additional Value
Improving Refining Performance to Capture Additional Value Assets Positioned to Ensure Long-Term Competitiveness REFINING CRUDE CAPACITY UTILIZATION VS. INDUSTRY AVERAGE PLANNED MARKET CAPTURE IMPROVEMENT FROM 2022-2025 ees Post bvestor Over 60 high-return, low-capital projects to improve 8% Commitm
Slide 22: Growing Midstream Earnings: Wellhead-to-Market
Integration MIDSTREAM MID-CYCLE ADJUSTED EBITDA ($B) +$1.0B +$0.4B DCP ADJUSTED SYNERGIES EBITDA $3.8 - 2022 Mid-Cycle 2025 Mid-Cycle Adjusted EBITDA" Adjusted EBITDA? Target Target 1.2022 mid-cycle adjusted EBITDA target has not been adjusted to reflect the recast of our segments. See appendix for
Slide 23: Steady Investments Drive Strong Returns
Steady Investments Drive Strong Returns ADJUSTED ROCE (% AFTER-TAX) 22% : | ~ |» fi 2021 2022 2023 3Q YTD 2024 1 2. ADJUSTED CAPITAL EXPENDITURES AND INVESTMENTS? ($B) Sustaining gg Growth 2.2 2.2 1.9 LJ L . L 2022 2023 3Q YTD 2024B 2024 Excludes acquisitions; refer to changes in "Basis of Presentat
Slide 24: ³ 5.3 3.3 ¹ 3.2 2.1 1.3 1.5 0.9 1.0 0.5 - 33 -
³ 5.3 3.3 ¹ 3.2 2.1 1.3 1.5 0.9 1.0 0.5 24 25 26 27 28 - 32 33 - 37 38 - 42 43 - 47 48+
Slide 25: Improved Cash Generation for Increased Shareholder Returns
’ Improved Cash Generation for Increased Shareholder Returns MID-CYCLE ADJUSTED CFO CAPITAL ALLOCATION ($B) Sustaining Capital >$10 Expect to return (o) "Dividends more than half of > (0) = Discretionary operating cash to shareholders $7 2022 Mid-Cycle 2025 Mid-Cycle Adjusted CFO Target Adjusted CFO
Slide 26: Through the Economic Cycles
Through the Economic Cycles ADJUSTED EBITDA BY SEGMENT"? ($B) Stable, growing earnings from non-refining segments @ | 2017 2018 2019 20208 2021 2022 2023 mMidstream =Chemicals mM&S Refining mRenewable Fuels Chart excludes Corporate costs. 2017-2020 have not been recast and reflect prior basis of pre
Slide 27: Annual Shareholder Distributions
ATIVE SHAREHOLDER DISTRIBUTIONS ($8) 43-45 hare Repurchases & Share Exchange A 29 38 26 28 22 1 " 13 6 8 eo | — 3 14 15 16 7 18 12 19 20 21 22 23 246 g Value Proposition itive Return Profile Across Industries ANNUAL DIVIDEND ($ PER SHARE) Increasing Every Year tO Trt itil 2013 2014 2015 2016 2017 20
Slide 28: Outlook
Outlook 4Q 2024 Global Olefins & Polyolefins utilization Mid-90% / Refining crude utilization Low to Mid 90% Refining turnaround expense $125 MM - $135 MM Corporate & Other costs* $300 MM é $330 MM / Full-year 2024 / / | Refining turnaround expense $485/MM - $495 MM Corporate & Other costs $128 - $1
Slide 29: Phillips 66 Market Indicators
Phillips 66 Market Indicators PSX Average Worldwide Central Renewable Market Pricing Refining Atlantic Basin Gulf Coast Corridor West Coast Diesel Data as of Indicator Indicator Indicator Indicator Indicator Indicator 10/31/2024 $/Barrel $/Barrel $/Barrel $/Barrel $/Barrel $/Gallon Jan-23 21.55 18.5
Slide 30: Midstream Guidance
Midstream Guidance Financial Guidance 2024 Estimated Mid-Cycle Adjusted EBITDA" ~$3,700 MM Estimated Synergies? Included in Adjusted EBITDA ~$300 MM 2024 Sustaining Capital Budget $392 MM 2024 Growth Capital Budget® $593 MM Commodity sensitive ~80% Fee based Mid-Cycle Commodity Price Assumptions and
Slide 31: Appendix
Appendix Beaumont Terminal Dock 4 NEDERLAND, TX Investor Update November 2024 31
Slide 32: Uniquely Integrated and Diversified Asset Portfolio
Ferndale Rodeo Renewable Energy Complex s-chom Los Angeles @-Chem 1 I Bree py sayor Sault Pecan Se pene a WJ \\ctemens caverns \ Yones creek ‘Sweeny 1,2, 3,4 Uniquely Integrated and Diversified Asset Portfolio GLOBAL ASSETS MAP LEGEND @ Batteries @ Coke Facility @ cPchem pf] CPChem Facility (0&P) @/
Slide 33: Midstream Provides Connectivity Across the Value Chain
Midstream Provides Connectivity Across the Value Chain With Crude, Clean Products, and NGL Infrastructure, Midstream is Linked to our Refining, Marketing and Chemicals Businesses ADJUSTED EBITDA ($B) ' 3.8 33 ' 27 27 : yy 21 ' 7 mms cen ' © — crude torminat/Pipetina : 70 wy Thousand miles ‘of U.S. p
Slide 34: Chemicals Positioned to Perform in any Market
Chemicals Positioned to Perform in any Market Leading Feedstock Positions in North America and the Middle East Ensure Competitiveness OLEFINS AND POLYOLEFINS CAPACITY UTILIZATION (%) 5% 96% 97% | : | | 2021 2022 2023 3Q YTD 2024 ADJUSTED EBITDA! ($B) 2021 2022 2023 3Q YTD : 2025 2024 | Mid-Cycle Tar
Slide 35: Refining Maintains Competitive Positions with Market Access
Refining Maintains Competitive Positions with Market Access ADJUSTED EBITDA ($B) cI : Ferndale H fn : Billings wah ieay : West Coast peel - H 244 MBD Atlantic Basin ! Central Corridor 537 MBD : 531 MBD ae ° | 2021 2022 2023 3ayTD 2025 2024 Mid-Cycle idl Los Angeles Dorgerall seponca City, eos aytake
Slide 36: Refinery Capacity, Complexity
Refinery Capacity, Complexity Capacities? Net Clean Product Capacity? MBD MBD Crude Throughput Gasoline Distillate Bayway 258 300 155 130 Humber 221 245 95 15 MiRO 58 61 25 27 Atlantic Basin/Europe 537 606 275, 272 Lake Charles 264 285 105 15 Sweeny 265 314 158 125 Gulf Coast 529 599 263 240 Ponca C
Slide 37: Marketing & Specialties: Stable Cash Flow, Strong Returns
Marketing & Specialties: Stable Cash Flow, Strong Returns Optimizes Refined Product Placement DOMESTIC MARKETING ASSET MAP ADJUSTED EBITDA ($B) ' 2025 2021 2022 2023 ae 1 Mid-Cycle Target CAPITAL EXPENDITURES AND INVESTMENTS? ($B) @ Phillips 66 @ Conoco’ @ 76 | eo a Branded r 0.1 0.1 7,260 U.S. Outl
Slide 38: Renewable Fuels for the Next Generation of Energy
Renewable Fuels for the Next Generation of Energy ADJUSTED EBITDA ($B) 2022 2023 3QYTD Migccycle 2024 Target ADJUSTED CAPITAL EXPENDITURES AND INVESTMENTS? ($B) 08 : 0.4 H 0.4 Milli f f Is segment includes ' illion gallons of a , : Renewable diesel s of the RREC, as v annual capacity distor iit Were
Slide 39: Delivering the Strategy
g the Strategy ormational Efforts Increase Cash Flow, Earnings, and Value ADJUSTED EBITDA BY SEGMENT ($B) $u $0.7 - a $14 2017-2019" 2022 Mid-Cycle” DCP Business Renewable Average Adjusted Adjusted EBITDA Transformation Fuels EBITDA Target mMidstream =Chemicals mMarketing & Specialties Refining 1. 2
Slide 40: Operating Excellence
Operating Excellence Safety improves availability, utilization and market capture TOTAL RECORDABLE RATES INDUSTRY SAFETY METRICS: (incidents per 200,000 hours worked) (Incidents per 200,000 hours worked) @ Industry Average Phillips 667 cPChem 0.12 Food Agricul., All Construction Petchem. Prof. Petro
Slide 41: Aligning lower-carbon solutions with our strategy
Aligning lower-carbon solutions with our strategy Progress To GHG Emissions Intensity Reduction Targets Manufacturing Emissions Intensity Scope 1 and 2 Metric Tons of CO,e/MBOE Product Emissions Intensity Scope 3 Metric Tons of CO,e/MBOE Near-Term 2023 Progress 7% Reduction ~ 2019 Baseline 2023 Prog
Slide 42: Executive Leadership Team
Executive Leadership Team Delivering exceptional performance on a sustainable basis Mark Lashier Chairman and Chief Executive Officer Don Baldridge Executive Vice President, Midstream and Chemicals Andrez Carberry Senior Vice President and Chief Human Resources Officer Zhanna Golodryga Executive Vic
Slide 43: Board of Directors
’ Board of Directors Highly engaged directors with deep industry and subject-matter expertise Continuous Board refreshment to foster diverse perspectives: Mark Lashier Gary K. Gregory J. 2022" Adams Hayes Chairman and CEO 2016 2022 ¢ 13 of 14 independent Charles M. Robert W. Denise L. Holley Pease R
Slide 44: 2024 Sensitivities
) 2024 Sensitivities Annual EBITDA $MM © Midstream 10¢/Gal Increase in NGL price 110 10¢/MMBtu Increase in Natural Gas price 7 $1/BBL Increase in WTI price 6 Chemicals - CPChem (net to Phillips 66) 1¢/Lb Increase in Chain Margin (Ethylene, Polyethylene, NAO) 65 Worldwide Refining $1/BBL Increase in
Slide 45: Publications
Publications PROXY YEAR STATEMENT 2023 Year In Review 2024 Proxy Statement
Slide 46: Footnotes
Footnotes General Information disclosed is as of September 30, 2024, unless noted otherwise. Numbers may not appear to sum due to rounding. Chevron Phillips Chemical may be abbreviated as CPChem. Marketing and Specialties may be abbreviated as M&S. Effective January 1, 2024, Phillips 66 net crude th
Slide 47: Footnotes
Footnotes Mid-Cycle Adjusted EBITDA by Segment 2022 mid-cycle adjusted EBITDA represented targeted mid-cycle adjusted EBITDA that we presented at our November 2022 Investor Day. This mid-cycle adjusted EBITDA target was based on historical average adjusted EBITDA for our Refining and Chemicals opera
Slide 48: Footnotes
Footnotes Reducing Costs to Sustain Higher Cash Generation Cost Savings Targets are expected to be reflected in either operating expenses, selling, general and administrative expenses, depreciation and amortization expenses, purchased crude oil and products costs or equity in earnings of affiliates
Slide 49: Reconciliations
P Reconciliations Millions of Dollars 3QYTD 2017 2018 2019 2020 2021 2022 2023 2024 Reconciliation of Consolidated Net Income (Loss) to Adjusted EBITDA Net income $ 5,248 5,873 3,377 na) 1,594 1,391 7,239 2,150 Plus: Income tax expense (benefit) 693) 1572 801 4,250) 146 3,248 2,230 538 Net interest
Slide 50: Reconciliations
P Reconciliations Millions of Dollars 3QYTD 2017 2018 2019 2020 2021 2022 2023 2024 Reconciliation of Consolidated Net Income (Loss) to Adjusted EBITDA (cont'd) Change in Fair Value of NOVONIX Investment” = = = = (370) 442 39 2 EBITDA, Adjusted for Special Items and Change in Fair Value of NOVONIX I
Slide 51: Reconciliations
P Reconciliations Millions of Dollars Sep YTD 3Q 2024 2021 2022 2023 4.2023 2024 TT™ Reconciliation of Midstream Income before Income Taxes to Adjusted EBITDA Income before income taxes $ 131 5,176 2,819 759 1,965 2,724 Plus: Depreciation and amortization 426 567 923 234 686 920 Midstream EBITDA 1,5
Slide 52: Reconciliations
P Reconciliations Millions of Dollars 3@ YTD 2017 2018 2019 2020 2021 2022 2023 2024 Reconciliation of Midstream Income before Income Taxes to Adjusted EBITDA Income before income taxes $ 615 1,088 S97 6) 1,131 5,176 2,819 1,965 Plus: Interest Revenue a - ~ - = - - Depreciation and amortization 298
Slide 53: Reconciliations
P Reconciliations Millions of Dollars 3Q YTD 2017 2018 2019 2020 2021 2022 2023 2024 Reconciliation of Midstream Income before Income Taxes to Adjusted EBITDA (cont'd) Midstream EBITDA, Adjusted for Special Items’ $ 897 1,456 1,788 1,588 1,779 2,761 3,592 2,724 Proportional share of selected equity
Slide 54: Reconciliations
Millions of Dollars 3QYTD 2017 2018 2019 2020 2021 2022 2023 2024 Reconciliation of Chemicals Income before Income Taxes to Adjusted EBITDA Income before income taxes $ 716 1,025 879 635 1844 856 600 769 Plus: None = = = = = = = = Chemicals EBITDA $ 716 1,025 879 635 1,844 856 600 769 Special Item A
Slide 55: Reconciliations
P Reconciliations Millions of Dollars 3@ YTD 2017 2018 2019 2020 2021 2022 2023 2024 Reconciliation of Refining Income (Loss) before Income Taxes to Adjusted EBITDA Income (loss) before income taxes $ 2,076 4,628 2,132 (6,022) (2,366) 7,976 5,340 410 Plus: Depreciation and amortization 823 849 867 8
Slide 56: Reconciliations
P Reconciliations Millions of Dollars 3Q YTD 2017 2018 2019 2020 2021 2022 2023 2024 Reconciliation of Refining Income (Loss) before Income Taxes to Adjusted EBITDA (cont'd) Refining EBITDA, Adjusted for Special Items’ $s 2,479 5,514 2,961 (2,303) 73) 8,905 1,190 Other Adjustments (pre-tax): Proport
Slide 57: Reconciliations
P Reconciliations Millions of Dollars 3@ YTD 2017 2018 2019 2020 2021 2022 2023 2024 Reconciliation of Marketing & Specialties Income before Income Taxes to Adjusted EBITDA Income before income taxes $ 1,020 1,556 1,374 1,421 1,668 2,072 1,897 759 Plus: Depreciation and amortization m2 n4 103 103 13
Slide 58: Reconciliations
P Reconciliations Millions of Dollars 3Q@ YTD 2022 2023 2024 Reconciliation of Renewable Fuels Income (Loss) before Income Taxes to Adjusted EBITDA Income (loss) before income taxes m1 183 (226) Plus: Depreciation and amortization 6 9 42 Renewable Fuels EBITDA’ 177 162 184) Special Item Adjustments
Slide 59: Reconciliations
P Reconciliations Millions of Dollars 3@ YTD 2017 2018 2019 2020 2021 2022 2023 2024 Reconciliation of Corporate & Other Loss before Income Taxes to Adjusted EBITDA Loss before income taxes $ (895) (853) (804) (881) (233) (2,054) 4,340) (989) Plus: Net interest expense 408 459 415 485 582 538 629 $7
Slide 60: Reconciliations
Represents proportional share of operating and SG&A of equity affiliates for our Refining segment that are reflected as a component of eauity in earnings of affllates on our consolidated statement of income. P Reconciliations Millions of Dollars Except as Indicated 3Q YTD 2024 Reconciliation of Refi
Slide 61: Reconciliations
*annualized Reconciliations Millions of Dollars (Except as Indicated) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 “ona Reconciliation of Return on Caples Employed (ROCE) to justed Numerator Net income (loss) $ 4,31 3,743 4,797 4,280 1,644 5,248 5,873 3377 (3,714) 1,594 11391 7,239 2,
Slide 62: Reconciliations
P Reconciliations Millions of Dollars (Except as Indicated) 3Q 2024 Total Debt $ 19,998 Total Equity 29,784 Debt-to-Capital Ratio 40 % Total Cash $ 1,637 Net Debt-to-Capital Ratio 38 % 62
Slide 63: Reconciliations
P Reconciliations Millions of Dollars 2022 2023 3@Q YTD 2024 2024 Budget Phillips 66 Capital Expenditures and Investments Midstream*> Growth 438 282 349 594 Sustaining 299 343 173 392 Total 737 625 522 986 Refining® Growth 160 220 135 299 Sustaining 447 366 251 394 Total 607 586 386 693 Marketing &