Slide 1: Second Quarter 2021 Conference Call
Phillips 66 Branded Marketing Site Sweeny ethylene unit HOUSTON, TX 1-Hexene Phillips 66Unit, Cedar Branded Bayou Marketing OLD Facility Site TX OCEAN, BAYTOWN, HOUSTON, TX TX Second Quarter 2021 Conference Call August 3, 2021 1
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 Sweeny Ethylene Unit SWEENY/OLD OCEAN, TX Humber South Texas Refinery Gateway Terminal N. LINCOLNSHIRE, U.K. INGLESIDE, TX 3
Slide 4: 2Q 2021 Overview
2Q 2021 Overview Ponca City Refinery PONCA CITY, OK Lake Charles Refinery Phillips 66 Branded Marketing Site HOUSTON, Ponca Refinery, PONCA CITY, OKTX WESTLAKE, LA $MM (UNLESS OTHERWISE NOTED) Adjusted earnings $ 329 Adjusted EPS1 0.74 Operating cash flow 1,743 Capital expenditures and investments 3
Slide 5: 2Q 2021 Adjusted Earnings
2Q 2021 Adjusted Earnings 2Q 2021 VS. 1Q 2021 ($MM) 1Q 2021 2Q 2021 Midstream Chemicals Refining Marketing Corporate Income Noncontrolling Adjusted Taxes Adjusted & Specialties & Other Interests Loss Earnings 189 7 320 (179) (12) 329 473 (509) 40 316 657 (706) 479 (244) (95) (78) 2Q 2021 Adjusted Pr
Slide 6: 2Q 2021 Midstream Adjusted Pre-Tax Income
2Q 2021 Midstream Adjusted Pre-Tax Income 2Q 2021 VS. 1Q 2021 ($MM) 47 18 Higher Transportation (25) volumes Lower NGL operating costs 316 276 and higher volumes Resumed construction of Sweeny Frac 4 in July 1Q 2021 Transportation NGL DCP 2Q 2021 Adjusted & Other Midstream Adjusted Pre-Tax Income Pr
Slide 7: 2Q 2021 Chemicals Adjusted Pre-Tax Income
2Q 2021 Chemicals Adjusted Pre-Tax Income 2Q 2021 VS. 1Q 2021 ($MM) 55 419 (1) Record quarter earnings 657 102% O&P utilization Began construction on 184 world-scale 1-hexene unit 1Q 2021 Olefins & Specialties, Other 2Q 2021 Adjusted Polyolefins Aromatics & Adjusted Pre-Tax Income Styrenics Pre-Tax
Slide 8: 2Q 2021 Refining Adjusted Pre-Tax Loss
2Q 2021 Refining Adjusted Pre-Tax Loss 2Q 2021 VS. 1Q 2021 ($MM) 1Q 2021 Atlantic Gulf Central West 2Q 2021 Adjusted Basin / Coast Corridor Coast Adjusted Pre-Tax Loss Europe Pre-Tax Loss 88% crude utilization 82% clean product yield (706) (1,026) $3.92/BBL realized margin 117 165 $118 MM turnaround
Slide 9: 2Q 2021 Refining Margins – Market vs. Realized
2Q 2021 Refining Margins – Market vs. Realized WORLDWIDE REFINING ($/BBL, UNLESS OTHERWISE NOTED) (3.89) 0.27 (2.38) 17.76 (7.84) 3.92 2Q 2021 Configuration Secondary Products Feedstock Other 2Q 2021 Market Realized 3:2:1 Margin Avg Market Crude: $67.80 22% Market Capture 9
Slide 10: 2Q 2021 Marketing & Specialties Adjusted Pre-Tax Income
2Q 2021 Marketing & Specialties Adjusted Pre-Tax Income 2Q 2021 VS. 1Q 2021 ($MM) 181 8 Strong U.S. Marketing earnings Improved demand 479 290 Refined product exports of 216 MBPD 1Q 2021 Marketing Specialties 2Q 2021 Adjusted & Other Adjusted Pre-Tax Income Pre-Tax Income 392 87 2Q 2021 10
Slide 11: 2Q 2021 Cash Flow
2Q 2021 Cash Flow $B 0.8 (0.4) 0.9 (0.4) (0.1) 2.2 1.4 March 31, CFO Working Capital Shareholder Other June 30, 2021 (excluding Capital Expenditures Distributions 2021 Cash Working & Investments Cash Balance 1 Capital) Balance 1 11 1) Includes cash and cash equivalents
Slide 12: Outlook
Outlook South Texas Gateway Terminal INGLESIDE, TX Denver Terminal DENVER, CO 3Q 2021 Global Olefins & Polyolefins utilization Mid-90% Refining crude utilization Market Conditions Refining turnaround expenses (pre-tax) $120 MM – $150 MM Corporate & Other costs (pre-tax) $240 MM – $250 MM Phillips 66
Slide 13: Questions and Answers
Phillips 66 Branded Marketing Site ST. LOUIS, MO Questions and Answers
Slide 14: Appendix
Phillips 66 Branded Marketing Site ST. LOUIS, MO Appendix
Slide 15: 2021 Estimated Sensitivities
2021 Estimated Sensitivities Annual EBITDA $MM Midstream - DCP (net to Phillips 66) 10¢/Gal Increase in NGL price 14 Chemicals - CPChem (net to Phillips 66) 1¢/Lb Increase in Chain Margin (Ethylene, Polyethylene, NAO) 65 Worldwide Refining $1/BBL Increase in Gasoline Margin 350 $1/BBL Increase in Di
Slide 16: YTD 2021 Cash Flow
YTD 2021 Cash Flow $B 0.9 1.1 (0.5) (0.7) (0.8) (0.3) 2.5 2.2 December 31, CFO Working Debt Capital Shareholder Other June 30, 2020 (excluding Capital Expenditures Distributions 2021 Cash Working & Investments Cash 1 1 Balance Capital) Balance 16 1) Includes cash and cash equivalents
Slide 17: Capital Structure
Capital Structure Consolidated PSX Excluding PSXP 42% 43% 43% 39% 39% 39% 41% 39% 29% 30% 38% 36% 25% 25% 33% 34% 27% 23% 22% 17% 27.2 27.2 24.7 24.9 21.5 20.5 20.6 19.0 18.0 18.2 15.9 15.4 15.4 11.2 11.8 12.0 11.5 11.5 8.1 8.2 3.0 1.6 2.5 1.4 2.2 3.0 1.3 2.5 1.3 2.2 2018 2019 2020 1Q 2Q 2018 2019 2
Slide 18: Refining Margins – Atlantic Basin / Europe
2Q 2021 Refining Margins – Market vs. Realized ATLANTIC BASIN / EUROPE ($/BBL, UNLESS OTHERWISE NOTED) Brent: $68.83 (3.81) (0.65) (1.83) 96% crude utilization 17.52 (6.60) 4.63 26% market capture 2Q 2021 Configuration Secondary Feedstock Other 2Q 2021 Market Products Realized 3:2:1 Margin Market 3:
Slide 19: Refining Margins – Gulf Coast
2Q 2021 Refining Margins – Market vs. Realized GULF COAST ($/BBL, UNLESS OTHERWISE NOTED) LLS: $67.95 1.62 (3.98) 88% crude utilization 14.99 (2.68) 14% market capture (7.85) 2.10 2Q 2021 Configuration Secondary Feedstock Other 2Q 2021 Market Products Realized 3:2:1 Margin Market 3:2:1 - LLS / Gasol
Slide 20: Refining Margins – Central Corridor
2Q 2021 Refining Margins – Market vs. Realized CENTRAL CORRIDOR ($/BBL, UNLESS OTHERWISE NOTED) WTI: $66.09 (2.81) 1.45 (3.70) 87% crude utilization 19.44 (7.98) 6.40 33% market capture 2Q 2021 Configuration Secondary Feedstock Other 2Q 2021 Market Products Realized 3:2:1 Margin Market 3:2:1 - WTI /
Slide 21: Refining Margins – West Coast
2Q 2021 Refining Margins – Market vs. Realized WEST COAST ($/BBL, UNLESS OTHERWISE NOTED) ANS: $68.44 (4.67) (2.87) (0.94) 79% crude utilization 21.60 (9.75) 3.37 16% market capture 2Q 2021 Configuration Secondary Feedstock Other 2Q 2021 Market Products Realized 3:2:1 Margin Market 3:2:1 - ANS / Los
Slide 22: 2Q 2021 Adjusted Earnings vs. 2Q 2020
2Q 2021 Adjusted Earnings 2Q 2021 VS. 2Q 2020 ($MM) 186 (20) 161 568 (285) (28) 329 (324) 71 2Q 2020 Midstream Chemicals Refining Marketing Corporate Income Noncontrolling 2Q 2021 Adjusted & Specialties & Other Taxes Interests Adjusted Loss Earnings 316 657 (706) 479 (244) (95) (78) 2Q 2021 Adjusted
Slide 23: 2Q 2021 Midstream Adjusted Pre-Tax Income vs. 2Q 2020
2Q 2021 Midstream Adjusted Pre-Tax Income 2Q 2021 VS. 2Q 2020 ($MM) 94 — (23) 316 245 2Q 2020 Transportation NGL & Other DCP 2Q 2021 Adjusted Midstream Adjusted Pre-Tax Income 224 83 9 Pre-Tax Income 2Q 2021 23
Slide 24: 2Q 2021 Chemicals Adjusted Pre-Tax Income vs. 2Q 2020
2Q 2021 Chemicals Adjusted Pre-Tax Income 2Q 2021 VS. 2Q 2020 ($MM) 71 10 487 657 89 2Q 2020 Olefins & Specialties, Other 2Q 2021 Adjusted Polyolefins Aromatics & Adjusted Pre-Tax Income Styrenics Pre-Tax Income 593 82 (18) 2Q 2021 24
Slide 25: 2Q 2021 Refining Adjusted Pre-Tax Loss vs. 2Q 2020
2Q 2021 Refining Adjusted Pre-Tax Loss 2Q 2021 VS. 2Q 2020 ($MM) (706) (867) 103 37 112 (91) 2Q 2020 Atlantic Gulf Central West Coast 2Q 2021 Adjusted Basin / Coast Corridor Adjusted Pre-Tax Loss Europe Pre-Tax Loss (108) (253) (76) (269) 2Q 2021 25
Slide 26: 2Q 2021 Marketing & Specialties vs. 2Q 2020
2Q 2021 Marketing & Specialties Adjusted Pre-Tax Income 2Q 2021 VS. 2Q 2020 ($MM) 53 133 479 293 2Q 2020 Marketing Specialties 2Q 2021 Adjusted & Other Adjusted Pre-Tax Income Pre-Tax Income 392 87 2Q 2021 26
Slide 27: 2Q 2021 Corporate & Other Adjusted Pre-Tax Loss vs. 2Q 2020
2Q 2021 Corporate & Other Adjusted Pre-Tax Loss 2Q 2021 VS. 2Q 2020 ($MM) 2Q 2020 Net Interest Corporate 2Q 2021 Adjusted Expense Overhead Adjusted Pre-Tax Loss & Other Pre-Tax Loss (224) (244) (19) (1) 27
Slide 28: 2Q 2021 Corporate & Other Adjusted Pre-Tax Loss vs. 1Q 2021
2Q 2021 Corporate & Other Adjusted Pre-Tax Loss 2Q 2021 VS. 1Q 2021 ($MM) 1Q 2021 Net Interest Corporate 2Q 2021 Adjusted Expense Overhead Adjusted Pre-Tax Loss & Other Pre-Tax Loss (251) (244) 2 5 28
Slide 29: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2021 2020 Jun YTD 2Q 1Q Jun YTD 2Q Phillips 66 Consolidated Earnings (Loss) $ (358) 296 (654) (2,637) (141) Pre-Tax Adjustments: Impairments 198 — 198 3,006 — Impairments by equity affiliates — — — 15 15 Pending claims and settlements
Slide 30: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2021 2020 Jun YTD 2Q 1Q Jun YTD 2Q Midstream Pre-Tax Income (Loss) $ 388 312 76 (378) 324 Pre-Tax Adjustments: Impairments 198 — 198 1,161 — Pension settlement expense 4 4 — 5 5 Winter-storm-related costs 2 — 2 — — Lower-of-cost-or-mar
Slide 31: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2021 2020 Jun YTD 2Q 1Q Jun YTD 2Q Refining Pre-Tax Loss $ (1,769) (729) (1,040) (3,139) (878) Pre-Tax Adjustments: Impairments — — — 1,845 — Pension settlement expense 20 20 — 26 26 Winter-storm-related costs 17 3 14 — — Lower-of-cost
Slide 32: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2021 2020 Jun YTD 2Q 1Q Jun YTD 2Q Midstream - Transportation Pre-Tax Income $ 231 224 7 414 214 Pre-Tax Adjustments: Impairments 198 — 198 — — Winter-storm-related costs 1 — 1 — — Asset dispositions — — — (84) (84) Adjusted Pre-Tax In
Slide 33: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2021 2020 Jun YTD 2Q 1Q Jun YTD 2Q Chemicals - Olefins & Polyolefins Pre-Tax Income $ 707 562 145 247 70 Pre-Tax Adjustments: Impairments by equity affiliates — — — 15 15 Pension settlement expense 16 16 — — — Winter-storm-related cost
Slide 34: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2021 2020 Jun YTD 2Q 1Q Jun YTD 2Q Refining - Atlantic Basin / Europe Pre-Tax Loss $ (263) (110) (153) (864) (227) Pre-Tax Adjustments: Impairments — — — 441 — Pension settlement expense 2 2 — 7 7 Winter-storm-related costs 1 — 1 — — A
Slide 35: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2021 2020 Jun YTD 2Q 1Q Jun YTD 2Q Refining - Central Corridor Pre-Tax Loss $ (330) (82) (248) (331) (104) Pre-Tax Adjustments: Impairments — — — 435 — Pension settlement expense 6 6 — 6 6 Winter-storm-related costs 7 — 7 — — Lower-of-
Slide 36: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2021 2020 Jun YTD 2Q 1Q Jun YTD 2Q Marketing & Specialties - Marketing & Other Pre-Tax Income $ 600 389 211 726 255 Pre-Tax Adjustments: Pending claims and settlements — — — (37) — Pension settlement expense 3 3 — 4 4 Adjusted Pre-Tax
Slide 37: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars (Except as Indicated) 2Q 2021 Atlantic Basin/ Central Europe Gulf Coast Corridor West Coast Worldwide Realized Refining Margins Loss before income taxes $ (110) (264) (82) (273) (729) Plus: Taxes other than income taxes 18 25 11 22 76 Depreciation, amorti
Slide 38: Non-GAAP Reconciliations
Non-GAAP Reconciliations 2021 June YTD Numerator ($MM) Net Loss $ (265) After-tax interest expense 228 GAAP ROCE loss (37) After-tax special items 229 Adjusted ROCE earnings $ 192 Denominator ($MM) GAAP average capital employed1 $ 36,716 2021 Annualized GAAP ROCE —% 2021 Annualized Adjusted ROCE 1%
Slide 39: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars (Except as Indicated) June 30, 2021 Phillips 66 Phillips 66 Phillips 66 Excluding Consolidated Partners1 Phillips 66 Partners Total Debt $ 15,413 3,910 11,503 Total Equity 20,602 2,426 18,176 Debt-to-Capital Ratio 43 % 39 % Total Cash $ 2,207 2 2,205 Net
Slide 40: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars 2Q 2021 Growth Sustaining Total Capital Expenditures and Investments Midstream $ 101 40 141 Refining 68 118 186 Marketing & Specialties 10 12 22 Corporate & Other — 31 31 Adjusted Capital Spending 179 201 380 Capital Expenditures and Investments Funded by
Slide 41: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2Q 2021 Effective Tax Rates Income before income taxes $ 436 Special items 66 Adjusted income before income taxes $ 502 Income tax expense $ 62 Special items 33 Adjusted income tax expense $ 95 GAAP effective tax rate 14.2 % Adjusted e