Slide 1: Strong Performance, Executing on Our Priorities
STRONG PERFORMANCE, EXECUTING ON OUR PRIORITIES 4Q 2023 CONFERENCE CALL January 31, 2024 Lake James Gas Plant GOLDSMITH, TX1
Slide 2: Cautionary Statement
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,” “goal,” “project,” “e
Slide 3: Differentiated and Attractive Investment Opportunity
Differentiated and Attractive Investment Opportunity GROWING MAINTAINING Cash Generation Capital Discipline +$4 B mid-cycle adjusted EBITDA 13% average ROCE since 2012 target increase ($14 B) by 2025 $0.3 B of sustaining capital 75% of adjusted EBITDA growth efficiencies since 2021 outside refining
Slide 4: Strategic Priorities Update
Strategic Priorities Update Deliver Shareholder • $8.3 B shareholder distributions since July 2022 Returns • On track to meet $13 B - $15 B target by YE 2024 Improve Refining • Above industry average crude utilization for four Performance consecutive quarters • >$500 MM run-rate cost savings as of D
Slide 5: Business Transformation
Business Transformation COST REDUCTIONS ($MM) TARGET SAVINGS Historical and projected savings presented above are cumulative. 1 Savings are reflected as a component of our purchased crude oil and product costs when realized, which is a component of segment realized margins. 2 Savings are reflected a
Slide 6: Adjusted Controllable Costs
Adjusted Controllable Costs 2023 vs 2022 ($B) 0.8 0.3 (0.2) (0.3) (0.4) Excludes Refining JV controllable cost3 savings of $0.1 B 8.4 8.1 1 2 2022 DCP Turnaround Inflation Market Savings 2023 1 Expense 1 Sum of our operating and SG&A expenses. The sum of these amounts is adjusted for any special ite
Slide 7: Refining Adjusted Controllable Costs
Refining Adjusted Controllable Costs 2023 vs 2022 ($B) 0.2 (0.2) (0.3) (0.3) 5.8 5.2 1 2 1 2022 Turnaround Inflation Market Savings 2023 Expense 1 Sum of operating and SG&A expenses for our Refining segment, plus our proportional share of operating and SG&A expenses of two refining equity affiliates
Slide 8: 4Q 2023 Overview
4Q 2023 Overview $MM (Unless Otherwise Noted) Adjusted earnings $1,362 Adjusted EPS1 3.09 Operating cash flow 2,190 Capital expenditures and investments 634 Shareholder distributions2 1,610 Common shares outstanding at December 31 430 MM Net Debt-to-Capital 34% 2023 ROCE3 16% 1 Represents dollars pe
Slide 9: 4Q 2023 Adjusted Earnings
4Q 2023 Adjusted Earnings 4Q 2023 vs 3Q 2023 ($MM) 3Q 2023 Midstream Chemicals Refining Marketing Corporate 4Q 2023 Income Noncontrolling Adjusted & Specialties & Other Taxes Adjusted Earnings Interests Earnings 185 2 255 (943) (4) 2,070 (201) (2) 1,362 754 106 797 432 (297) (405) (25) 4Q 2023 Adjus
Slide 10: 4Q 2023 Cash Flow
4Q 2023 Cash Flow $B 0.2 2.0 (0.6) (0.1) (1.6) (0.1) 3.5 3.3 Sept. 30, 2023 CFO (excluding Working Capital Debt Shareholder Other Dec. 31, 2023 Cash working capital) Capital Expenditures Distributions Cash 1 1 Balance & Investments Balance 10 1 Includes cash and cash equivalents 10 10
Slide 11: Outlook
Outlook O'Connor Gas Plant LA SALLE, CO 1Q 2024 Global Olefins & Polyolefins utilization Mid-90% Refining crude utilization Low-90% Refining turnaround expense* $110 MM - $130 MM Corporate & Other costs $290 MM - $310 MM Full-year 2024 Refining turnaround expense* $575 MM - $625 MM Corporate & Other
Slide 12: 2023 Financial Highlights
Questions and Answers 2023 Financial Highlights $15.81 Adjusted EPS1 $8.8 B Operating cash flow, $5.9 B Shareholder 16% ROCE3 excl. working capital Distributions2 $8.3 B shareholder Above industry average $250 MM run-rate DCP distributions since July 2022 crude utilization four synergies as of Dec 3
Slide 13: 2024 Priorities
2024 Priorities Continuing to Reward Shareholders 2024E CAPITAL ALLOCATION Target >50% return of operating cash flow to shareholders Start-up Rodeo Renewed Continue improving Refining performance and Discretionary uses capture more of the market including shareholder distributions Capture additional
Slide 14: Phillips 66 Branded Marketing Site
Phillips 66 Branded Marketing Site ST. LOUIS, MO 1414
Slide 15: 2024 Estimated Sensitivities
2024 Estimated Sensitivities . 1 Sensitivities shown above are independent and only valid within a limited range. 2 Midstream includes 13% economic interest attributable to noncontrolling interest in DCP Midstream, LP. 15 15 15
Slide 16: 2023 Overview
2023 Overview Ponca City Refinery $MM (Unless Otherwise Noted) Adjusted earnings $7,163 Adjusted EPS1 15.81 Adjusted EBITDA 12,672 Operating cash flow 7,029 Capital expenditures and investments 2,418 Shareholder distributions2 5,896 Common shares outstanding at Dec. 31 430 MM Net debt-to-capital rat
Slide 17: 2023 Cash Flow
2023 Cash Flow $B 8.8 2.0 (1.8) 0.4 (2.4) (5.9) 0.2 6.1 (4.1) 3.3 Dec. 31, 2022 CFO Working Capital Proceeds from Debt Shareholder Repurchase of Other Dec. 31, 2023 Cash (excluding Capital Expenditures Asset Distributions Noncontrolling Cash 2 Balance1 working & Investments Dispositions Interests Ba
Slide 18: Capital Structure
Capital Structure 40% 39% 38% 38% 34% 35% 34% 35% 33% 34% 24% 25% 34.1 34.9 31.1 32.0 31.7 21.6 18.5 19.9 19.4 19.4 17.2 14.4 6.1 7.0 3.1 3.0 3.5 3.3 2021 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 Equity $B Debt $B Cash & Cash Equivalents $B Debt-to-Capital Net Debt-to-Capital 18 18 18
Slide 19: Refining Adjusted Controllable Costs
Refining Adjusted Controllable Costs 2023 vs 2022 ($/BBL) 20221 Turnaround Inflation3 Market Savings 20231 Expense2 Adjusted Turnaround Expense4 Adjusted Controllable Costs, Excl Turnaround Expense5 1 Refining adjusted controllable costs is the sum of operating and SG&A expenses for our Refining seg
Slide 20: 4Q 2023 Refining Adjusted Pre-Tax Income
4Q 2023 Refining Adjusted Pre-Tax Income 4Q 2023 VS. 3Q 2023 ($MM) 3Q 2023 Atlantic Gulf Central West 4Q 2023 Adjusted Basin / Coast Corridor Coast Adjusted Pre-Tax Income Europe Pre-Tax Income 92% crude utilization 119 6 87% clean product yield (284) 107% market capture 1,740 (784) 797 160 348 480
Slide 21: 4Q 2023 Refining Margins – Market vs. Realized
4Q 2023 Refining Margins – Market vs. Realized ($/BBL, Unless Otherwise Noted) 4.81 0.45 (3.97) (0.29) 14.41 13.41 4Q 2023 Configuration Secondary Products Feedstock Other 4Q 2023 RIN-Adjusted Realized Market 3:2:1 Margin Avg Market Crude: $81.57 107% RIN-Adjusted Market Capture 21 21 21
Slide 22: 4Q 2023 Refining Margins – Market vs. Realized
4Q 2023 Refining Margins – Market vs. Realized Atlantic Basin / Europe ($/BBL, Unless Otherwise Noted) 0.83 Brent: $84.05 (2.22) 4.19 97% crude utilization 13.41 (6.26) 9.95 74% market capture 4Q 2023 Configuration Secondary Feedstock Other 4Q 2023 RIN-Adjusted Products Realized Market 3:2:1 Margin
Slide 23: 4Q 2023 Refining Margins – Market vs. Realized
4Q 2023 Refining Margins – Market vs. Realized Gulf Coast ($/BBL, Unless Otherwise Noted) 7.11 LLS: $80.96 0.80 3.65 13.96 96% crude utilization 8.32 (5.92) 168% market capture 4Q 2023 Configuration Secondary Feedstock Other 4Q 2023 RIN-Adjusted Products Realized Market 3:2:1 Margin RIN-Adjusted Mar
Slide 24: 4Q 2023 Refining Margins – Market vs. Realized
4Q 2023 Refining Margins – Market vs. Realized Central Corridor ($/BBL, Unless Otherwise Noted) 7.91 WTI: $78.36 1.32 3.91 83% crude utilization 23.45 (3.40) 13.71 171% market capture 4Q 2023 Configuration Secondary Feedstock Other 4Q 2023 RIN-Adjusted Products Realized Market 3:2:1 Margin RIN-Adjus
Slide 25: 4Q 2023 Refining Margins – Market vs. Realized
4Q 2023 Refining Margins – Market vs. Realized West Coast ($/BBL, Unless Otherwise Noted) (1.53) ANS: $83.95 (4.79) (1.96) 94% crude utilization 21.97 (3.80) 9.89 45% market capture 4Q 2023 Configuration Secondary Feedstock Other 4Q 2023 RIN-Adjusted Products Realized Market 3:2:1 Margin RIN-Adjuste
Slide 26: 4Q 2023 Adjusted Earnings
4Q 2023 Adjusted Earnings 4Q 2023 vs 4Q 2022 ($MM) 54 80 113 169 (829) (107) (17) 1,899 1,362 4Q 2022 Midstream Chemicals Refining Marketing Corporate Income Noncontrolling 4Q 2023 Adjusted & Specialties & Other Taxes Interests Adjusted Earnings Earnings 754 106 797 432 (297) (405) (25) 4Q 2023 Adju
Slide 27: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2023 2022 Year 4Q 3Q Year 4Q Reconciliation of Consolidated Earnings to Adjusted Earnings Consolidated Earnings $ 7,015 1,260 2,097 11,024 1,884 Pre-Tax Adjustments: Certain tax impacts (19) (19) — — — Hurricane-related costs — — — (21
Slide 28: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2023 2022 Year 4Q 3Q Year 4Q Reconciliation of Midstream Pre-Tax Income to Adjusted Pre-Tax Income Pre-tax income $ 2,774 756 712 4,734 656 Pre-tax adjustments: Certain tax items (2) (2) — — — Net gain on asset disposition (137) — (101
Slide 29: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2023 2022 Year 4Q 3Q Year 4Q Reconciliation of Refining Pre-Tax Income to Adjusted Pre-Tax Income Pre-tax income $ 5,266 814 1,710 7,816 1,640 Pre-tax adjustments: Certain tax impacts (17) (17) — — — Hurricane-related costs — — — (21)
Slide 30: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2023 Year 4Q 3Q Reconciliation of Refining - Atlantic Basin / Europe Pre-tax Income to Adjusted Pre-Tax Income Pre-tax income $ 910 175 444 Pre-tax adjustments: Certain tax impacts (15) (15) — Adjusted Pre-Tax Income $ 895 160 444 Reco
Slide 31: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars 2023 Reconciliation of Consolidated Net Income to Adjusted EBITDA Net income $ 7,239 Plus: Income tax expense 2,230 Net interest expense 628 Depreciation and amortization 1,977 Phillips 66 EBITDA $ 12,074 Special Item Adjustments (pre-tax): Certain tax im
Slide 32: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars 2023 Reconciliation of Midstream Income before Income Taxes to Adjusted EBITDA Income before income taxes $ 2,774 Plus: Depreciation and amortization 923 Midstream EBITDA $ 3,697 Special Item Adjustments (pre-tax): Certain tax impacts (2) Net gain loss on
Slide 33: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars 2023 Reconciliation of Chemicals Income before Income Taxes to Adjusted EBITDA Income before income taxes $ 600 Plus: None Chemicals EBITDA $ 600 Special Item Adjustments (pre-tax): None — Chemicals EBITDA, Adjusted for Special Items $ 600 Other Adjustmen
Slide 34: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars 2023 Reconciliation of Refining Income before Income Taxes to Adjusted EBITDA Income before income taxes $ 5,266 Plus: Depreciation and amortization 839 Refining EBITDA $ 6,105 Special Item Adjustments (pre-tax): Certain tax impacts (17) Net loss on asset
Slide 35: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars 2023 Reconciliation of Marketing & Specialties Income before Income Taxes to Adjusted EBITDA Income before income taxes $ 2,135 Plus: Depreciation and amortization 121 Marketing & Specialties EBITDA $ 2,256 Special Item Adjustments (pre-tax): None — Marke
Slide 36: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars 2023 Reconciliation of Corporate & Other Loss before Income Taxes to Adjusted EBITDA Loss before income taxes $ (1,306) Plus: Net interest expense 628 Depreciation and amortization 94 Corporate & Other EBITDA $ (584) Special Item Adjustments (pre-tax): Bu
Slide 37: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars 3Q 2023 4Q 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 231 234 465 Midstream EBITDA 943 990 1,933 Special Item Adjustments (pre-tax):
Slide 38: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars (Except as Indicated) 4Q 2023 Atlantic Basin/ Central Europe Gulf Coast Corridor West Coast Worldwide Reconciliation of Refining Income Before Income Taxes to Realized Refining Margins Income before income taxes $ 175 350 480 (191) 814 Plus: Taxes other t
Slide 39: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2023 2022 Reconciliation of Operating and SG&A Expenses to Adjusted Controllable Costs Operating expenses $ 6,154 6,111 Selling, general and administrative expenses 2,525 2,168 Controllable costs 8,679 8,279 Special Item Adjustments (p
Slide 40: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2023 2022 Reconciliation of Refining Operating and SG&A Expenses to Refining Adjusted Controllable Costs Turnaround expenses $ 584 786 Other operating expenses 3,752 3,981 Total operating expenses $ 4,336 4,767 Selling, general and adm
Slide 41: Non-GAAP Reconciliations
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 7,239
Slide 42: 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 % 42 42 42
Slide 43: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Millions of Dollars 4Q 2023 2023 Growth Sustaining Total Growth Sustaining Total Capital Expenditures and Investments Midstream $ 65 100 165 $ 282 343 625 Refining 266 135 401 963 376 1,339 Marketing & Specialties 26 15 41 322 42 364 Corporate & Other — 2
Slide 44: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars 2023 Reconciliation of Net Cash Provided by Operating Activities to Cash From Operations, Excluding Working Capital Net Cash Provided by Operating Activities $ 7,029 Net Working Capital Changes 1,815 Operating Cash Flow (Cash from Operations), Excluding W