Phillips 66 · NYSE:PSX
Phillips 66 — Investor Presentation (February 2024)
52 slides from Phillips 66's investor presentation, Feb 20, 2024
Slide 1: Investor Update February 2024
eves aw | Sime PHILLIPS PROVIDING ENERGY. IMPROVING LIVES. Investor Update | February 2024
Slide 2: Cautionary Statement
a Cautionary Statement This presentation contains forward-looking statements within the meaning of the federal securities laws. Words such as “anticipated,” “estimated,” “expected,” “planned,” “scheduled,” “targeted,” “believe,” “continue,” “intend,” “will” “would,” “objective, "project," “efforts,”
Slide 3: Differentiated and Attractive Investment Opportunity
a Differentiated and Attractive Investment Opportunity GROWING MAINTAINING Cash Generation Capital Discipline +$4 B mid-cycle adjusted EBITDA 13% average ROCE since target increase ($14 B) by 2025 as 2012 ap 75% of adjusted EBITDA growth $0.3 B of sustaining capital outside refining efficiencies sin
Slide 4: Strategic Priorities
a Strategic Priorities Deliver Shareholder $8.3 B shareholder distributions since July 2022 On track to meet $13 B - $15 B target by YE 2024 Improve Refining Performance AX Returns Th Above industry average crude utilization for four consecutive quarters >$500 MM run-rate cost savings as of Dec 31 —
Slide 5: Leading Downstream Integrated Energy Provider
Leading Downstream Integrated Energy Provider Positioned for Value Creation Through Economic Cycles MIDSTREAM * NGL wellhead-to-market value chain * Crude oil & product pipelines and terminals + 80% fee based * 72,000 miles of U.S. pipeline systems MARKETING & SPECIALTIES + 7,260 sites in the U.S. a
Slide 6: Providing Energy. Improving Lives.
Providing Energy. Improving Lives. Our Products Improve Lives and Make Modern Life Possible Transportation Fuels trucks, ships, planes Roads Agriculture fertilizers, insecticide, irrigation pipe Housing roofing, carpet, insulation Electric Vehicles batteries, rubber tires, body parts Personal Care/C
Slide 7: Integration Captures Value Across the Value Chain
66) Integration Captures Value Across the Value Chain Downstream Integration Creates Differentiated Optionality with Value Captured by a Global Commercial Supply and Trading Organization 2025 Mid-Cycle Adjusted EBITDA Target by Segment? ($B) Over 60% of mid-cycle adjusted EBITDA from non refining $1
Slide 8: ¹ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
¹ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Slide 9: Edmonton Hardisty Calgary
Edmonton Hardisty Calgary Billings Patoka Houston Cushing New Orleans
Slide 10: Integration: Central Corridor
a Integration: Central Corridor Central Corridor Optimization : @ Optimize Refining feedstock and yields through Crude Oil q Natural Gas / NGLs highest clean product netback market identification Vv . Crude Gathering & Infrastructure @ ® Processing oO) @ Utilization of Midstream assets to maximize 7
Slide 11: Integration: Sweeny Hub
Integration: Sweeny Hub Sweeny Hub 3 Chemicals Clean Products Infrastructure Natural Gas / NGLs e Gathering & Processing Long Haul Pipelines Natural Gas Markets Fractionation Global LPG Markets Global ® Chemicals Markets @ Refining light ends sent to fracs enabling high crude rate @ Access to high v
Slide 12: Renewable Fuels, Refining, M&S, Chemicals, Midstream
¹ Renewable Fuels Refining M&S Chemicals Midstream
Slide 13: Reducing Costs to Sustain Higher Cash Generation
a Reducing Costs to Sustain Higher Cash Generation Cost Reductions ($MM) Target $1,100 Refining Adjusted Controllable Costs* $650 MM Other Segment Controllable Costs $225 MM Freight and Other Costs $225 MM $1.4B in savings $120 = — || | 1Q 2023 2Q 2023 3Q 2023 YE 2023 YE 2024E Sustaining Capital $30
Slide 14: Improving Refining Performance to Capture Additional Value
a Improving Refining Performance to Capture Additional Value Assets Positioned to Ensure Long-Term Competitiveness Refining Crude Capacity Utilization vs. Industry Average Planned Market Capture Improvement from 2022-2025 10% Over 60 high-return, low-capital projects to improve 8% market capture Pre
Slide 15: Growing Midstream Earnings
Growing Midstream Earnings: Midstream Mid-Cycle Adjusted EBITDA ($B) Wellhead-to-Market Integration Balanced Wellhead-to-Market NGL Portfolio +$1.0B | +$0.4B DCP ADJUSTED SYNERGIES EBITDA $3.8 $2.3 2022 Mid-Cycle 2025 Mid-Cycle Adjusted EBITDA Adjusted EBITDA’ Target Target daa = i -48,000 miles Gat
Slide 16: Delivering Durable Returns through Capital Discipline
Delivering Durable Returns through Capital Discipline Steady Investments Drive Strong Returns Adjusted ROCE (% After-Tax) 2024 Capital Budget ($B) 22% 16% 11% 1% 9% 2019 2020 2021 2022 2023 Adjusted Capital Expenditures and Investments ($B) 35 I Sustaining Growth 2.9 22 2.4 19 50 million related to
Slide 17: Industry Leading Financial Stability
a Industry Leading Financial Stability Low | STRONG Net Debt-to-Capital Credit Ratings Through Cycles 34% A3 / BBB+ As of 4Q 2023 since 2014 | BALANCED SIGNIFICANT Debt Maturity Profile? ($B) Liquidity $9.7 Bt As of 4Q 2023 5 acl s | in 2024° 2025 2026 2027 28-32 33-37 38-42 43-47 48+
Slide 18: Improved Cash Generation for Increased Shareholder Returns
a Improved Cash Generation for Increased Shareholder Returns Mid-Cycle Adjusted CFO Capital Allocation ($B) m™Sustaining Capital wowvidends " >$10 Expect to return (o) = Discretionary more than half of > % operating cash to shareholders 2022 Mid-Cycle 2025 Mid-Cycle Adjusted CFO Target Adjusted CFO
Slide 19: Integrated Portfolio Provides Excess Cash Flow Through the Economic Cycles
a Integrated Portfolio Provides Excess Cash Flow Through the Economic Cycles Adjusted EBITDA by Segment? ($B) Cash from Operating Activities vs Select Cash Uses ($B) Stable, growing earnings from non-refining segments >60% of cash flow available for share repurchases and other discretionary uses aft
Slide 20: Compelling Value Proposition
a Compelling Value Proposition Competitive Return Profile Across Industries Cumulative Shareholder Distributions ($B) Total Shareholder Distribution Yield! Since 2012 Spin Bl pividends Share Repurchases & Share Exchange 45-45 39 B Phillips 66 9.9% “s mes shareholder 2 & distributions? 28 26 22 16 B
Slide 21: Strong ESG Oversight and Performance Leads to Sustainable Results
Strong ESG Oversight and Performance Leads to Sustainable Results Q @ 2 Progressing our GHG goals Achieved an 8% reduction in Scope 1 & 2 emissions intensity and 3% reduction in Scope 3 emissions intensity from 2019 levels Delivering competitive returns in lower-carbon investments Our Rodeo Renewed
Slide 22: Outlook
| Outlook 1Q 2024 Global Olefins & Polyolefins utilization Refining crude utilization Refining turnaround expense* Corporate & Other costs Full-year 2024 Refining turnaround expense* Corporate & Other costs Depreciation and amortization Effective income tax rate *Excludes Rodeo renewables facility B
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Slide 24: Uniquely Integrated and Diversified Asset Portfolio
Uniquely Integrated and Diversified Asset Portfolio Ferndale fil ren san Francisco Qe" © Lng fecomn Los Angeles s-chem fi Nt \passdene \ san Bernard \ ciemens cavers Liones Crock Sweeny 12,54 GLOBAL ASSETS MAP LEGEND @ Batteries” @ Coke Facility @ cPchem (i cPchem Facility (0&P) © /— Crude Terminal/
Slide 25: Midstream Provides Connectivity Across the Value Chain
a Midstream Provides Connectivity Across the Value Chain With crude, clean products, and NGL infrastructure, Midstream is linked to our Refining, Marketing and Chemicals Businesses 72 Adjusted EBITDA ($B)' 3.3 Thousand miles 27 of U.S. pipeline systems 2.2 19 21 719 rt en f 8 2019 2020 2021 2022 202
Slide 26: Chemicals Positioned to Perform in any Market
a Chemicals Positioned to Perform in any Market Leading feedstock positions in North America and the Middle East ensure competitiveness 2019-2023 Ethylene Production Cost Curve Olefins and Polyolefins Capacity Utilization (%) (Cents per pound) N.A. = North America 99% 97% 96% 95% 91% 8° 95% Advantag
Slide 27: Refining Maintains Competitive Positions with Market Access
a Refining Maintains Competitive Positions with Market Access Adjusted EBITDA ($B) Pay Ferndale West Coast “ 777 244 MBD Billings oboe 8.9 ' i} ‘a 6.2 ‘tog, 1 Atlantic Basin 3 i | all San Francisco Central Corridor 537 MB L 4 Wood Ri BUROP: r 531 MBD a toss (2.2) : 2019 2020 2021 2022 2023 2025 ‘fos
Slide 28: Marketing & Specialties: Stable Cash Flow, Strong Returns
Marketing & Specialties: Stable Cash Flow, Strong Returns Optimizes refined product placement Domestic Marketing Asset Map Adjusted EBITDA ($B) © Phillips 66 © Conoco @ 76 7,260 1,670 Branded U.S. Outlets Branded Intl. Outlets B Purchases for resale and markets refined petroleum products and renewab
Slide 29: Executing the Strategy
a Executing the Strategy Transformational efforts increase cash flow, earnings, and value Adjusted EBITDA by Segment ($B) $0.6 $0.2 $14.0 $0.7 as $11 a $7.7 2017-2019 2022 Mid-Cycle DCP Business Renewable Commercial Chemicals 2025 Mid-Cycle Average Adjusted Adjusted EBITDA Transformation Fuels Adjus
Slide 30: Operating Excellence
a Operating Excellence Safety improves availability, utilization and market capture Total Recordable Rates (Incidents per 200,000 hours worked) Industry Average @ Industry Safety Metrics? (Incidents per 200,000 hours worked) Phillips 662 cPChem 41 32 38.41 33 3 82g eT ° ° e e . Lies. _- Food Agricul
Slide 31: 2024 Sensitivities
2024 Sensitivities Annual EBITDA $MM © 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 Gasoline Mar
Slide 32: Midstream Guidance
a Midstream Guidance Financial Guidance 2024 Estimated Mid-Cycle Adjusted Commodity sensitive EBITDA' ~$3,600 MM Estimated Synergies? Included in ~$300 MM ~80% Adjusted EBITDA Fee based 2024 Sustaining Capital Budget $392 MM 2024 Growth Capital Budget* $593 MM Fee based Mid-Cycle Commodity Price Ass
Slide 33: Publications
a Publications 33
Slide 34: Footnotes
a Footnotes General Information disclosed is as of December 31, 2023, unless noted otherwise. Numbers may not appear to tie 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 t
Slide 35: Footnotes
a 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 ope
Slide 36: Footnotes
a 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 affiliate
Slide 37: Non-GAAP Reconciliations
a Non-GAAP Reconciliations Millions of Dollars 2017 2018 2019 2020 2021 2022 2023 Reconciliation of Consolidated Net Income to Adjusted EBITDA Net income $ 5,248 5,873 3,377 (3,714) 1,594 11,391 7,239 Plus: Income tax expense (1,693) 1,572 801 (1,250) 146 3,248 2,230 Net interest expense 407 459 415
Slide 38: Non-GAAP Reconciliations
a Non-GAAP Reconciliations Millions of Dollars 2017 2018 2019 2020 2021 2022 2023 Reconciliation of Consolidated Net Income to Adjusted EBITDA (Continued) EBITDA, Adjusted for Special Items and Change in Fair Value of NOVONIX Investment! $ 5,134 9,241 6,771 1,105 5,159 14,493 12,167 Other Adjustment
Slide 39: Non-GAAP Reconciliations
a Non-GAAP Reconciliations Millions of Dollars 2017 2018 2019 2020 2021 2022 2023 Reconciliation of Midstream Income before Income Taxes to Adjusted EBITDA Income before income taxes $ 615 1,088 597 (16) 1,500 4,734 2,774 Plus: Interest Revenue qa) _ _ _ _ _ _ Depreciation and amortization 298 310 2
Slide 40: Non-GAAP Reconciliations
a Non-GAAP Reconciliations Millions of Dollars 2017 2018 2019 2020 2021 2022 2023 Reconciliation of Midstream Income before Income Taxes to Adjusted EBITDA (Continued) Midstream EBITDA, Adjusted for Special Items and Change in Fair Value of NOVONIX Investment! 897 1,456 1,788 1,588 1,777 2,762 3,586
Slide 41: Non-GAAP Reconciliations
a Non-GAAP Reconciliations Millions of Dollars 2017 2018 2019 2020 2021 2022 2023 Reconeii ition of Midstream - Transportation Income before Income Taxes Adjusted EBITDA Income before income taxes 530 770 947 508 678 1,176 1,310 Plus: Interest Revenue qa) _ _ _ _ _ Depreciation and amortization 158
Slide 42: Non-GAAP Reconciliations
a Non-GAAP Reconciliations Millions of Dollars 2017 2018 2019 2020 2021 2022 2023 Reconciliation of Midstream - NGL and Other Income before Income Taxes to Adjusted EBITDA Income before income taxes $ 85 318 (350) (624) 452 4,000 1,503 Plus: Depreciation and amortization 140 144 140 154 191 394 755
Slide 43: Non-GAAP Reconciliations
a Non-GAAP Reconciliations Millions of Dollars 2017 2018 2019 2020 2021 2022 2023 Reconciliation of Midstream - NGL and Other Income before Income Taxes te Adjusted EBITDA (Continued) Midstream - NGL and Other EBITDA, Adjusted for Special Items and Change in Fair Value of NOVONIX Investment! $ 210 5
Slide 44: Non-GAAP Reconciliations
a Non-GAAP Reconciliations Millions of Dollars 2017 2018 2019 2020 2021 2022 2023 Reconciliation of Chemicals Income before Income Taxes to Adjusted EBITDA Income before income taxes $ 716 1,025 879 635 1,844 856 600 Plus: None = = = Chemicals EBITDA $ 716 1,025 879 635 1,844 856 600 Special Item Ad
Slide 45: Non-GAAP Reconciliations
a Non-GAAP Reconciliations Millions of Dollars 2017 2018 2019 2020 2021 2022 2023 Reconciliation of Refining Income before Income Taxes to Adjusted EBITDA Income before income taxes $ 2,076 4,628 2,132 (6,022) (2,353) 7,816 5,266 Plus: Depreciation and amortization 823 849 867 896 984 866 839 Refini
Slide 46: Non-GAAP Reconciliations
a Non-GAAP Reconciliations Millions of Dollars 2017 2018 2019 2020 2021 2022 2023 Reconciliation of Refining Income before Income Taxes to Adjusted EBITDA (Continued) Refining EBITDA, Adjusted for Special Items $ 2,479 5,514 2,961 (2,303) (55) 8,751 6,132 Other Adjustments (pre-tax): Proportional sh
Slide 47: Non-GAAP Reconciliations
a Non-GAAP Reconciliations 2017 2018 2019 2020 2021 2022 2023 Reconciliation of Marketing & Specialties Income before Income Taxes to Adjusted EBITDA Income before income taxes $ 1,020 1,556 1,374 1,421 1,723 2,402 2,135 Plus: Depreciation and amortization n2 4 103 103 13 uile) 121 Marketing & Speci
Slide 48: Non-GAAP Reconciliations
a Non-GAAP Reconciliations Millions of Dollars 2017 2018 2019 2020 2021 2022 2023 Reconciliation of Corporate & Other Loss before Income Taxes to Adjusted Loss before income taxes $ (895) (853) (804) (881) (974) (1,169) (1,306) Plus: Net interest expense 408 459 415 485 583 537 628 Depreciation and
Slide 49: Non-GAAP Reconciliations
a Non-GAAP Reconciliations Millions of Dollars 3Q@ 2023 4@ 2023 2H 2023 Reconciliation of Midstream Income before Income Taxes to Adjusted EBITDA Income before income taxes $ 712 756 1,468 Plus: Depreciation and amortization 23) 234 465 Midstream EBITDA $ 943 990 1,933 Special Item Adjustments (pre-
Slide 50: Non-GAAP Reconciliations
a Non-GAAP Reconciliations Millions of Dollars (Except as Indicated) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Reconciliation of Return on Capital Employed (ROCE) to Adjusted ROCE Numerator Net income (loss) $ 4,131 3,743 4,797 4,280 1,644 5,248 5,873 3,377 (3,714) 1,594 11,391 7,2
Slide 51: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated December 31, 2023 Total Debt $ 19,359 Total Equity 31,650 Debt-to-Capital Ratio 38% Total Cash $ 3,323 Net Debt-to-Capital Ratio 34% 51
Slide 52: Non-GAAP Reconciliations
a Non-GAAP Reconciliations Millions of Dollars 2024 2019 2020 2021 2022 2023 Budget Phillips 66 Capital Expenditures and Investments Midstream'? Growth $ 1,549 1,471 501 744 282 593 Sustaining 251 204 232 299 343 392 Total 1,800 1,675 733 1,043 625 985 Refining? Growth 464 328 280 477 963 654 Sustai