Slide 1: Lake James Gas Plant
Lake James Gas Plant GOLDSMITH, TX1
Slide 2: Cautionary Statement
Cautionary Statement This news release contains forward-looking statements within the meaning of the federal securities laws relating to Phillips 66’s operations, strategy and performance. Words such as “anticipated,” “estimated,” “expected,” “planned,” “scheduled,” “targeted,” “believe,” “continue,
Slide 3: 3Q 2024 Strategic Priorities Update
3Q 2024 Strategic Priorities Update Deliver Shareholder • $12.5 B shareholder distributions since July 2022 Returns • On track to meet $13 B - $15 B target by YE 2024 Improve Refining • Clean product yield 87% Performance • $1/bbl1 cost reduction compared with 2022 Capture Value from • Fully complet
Slide 4: Advancing Wellhead-to-Market Strategy
Advancing Wellhead-to-Market Strategy 1Q 2022 3Q 2022 2Q 2023 2Q 2024 3Q 2024 3Q 2024 DCP Initial DCP Buy-in Rockies Express $400 MM of DCP Transaction Transaction Pipeline Sale Synergies Captured PSXP Buy-In (Public Units) Pinnacle (Controlling Completed Acquisition Interest) Midstream Adjusted EBI
Slide 5: Adjusted Controllable Costs
Adjusted Controllable Costs YTD 2024 vs YTD 2022 ($B) 0.4 0.6 (0.3) (0.6) Excludes Refining JV controllable cost reduction of $0.1B3 5.9 6.0 1 2 YTD 2022 DCP Inflation Market Cost Reduction YTD 20241 1 Sum of our operating and SG&A expenses, excluding special items. See non-GAAP reconciliation in Ap
Slide 6: Refining Adjusted Controllable Costs
Refining Adjusted Controllable Costs YTD 2024 vs 2022 ($/BBL) 1 Refining adjusted controllable costs is the 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 that are reflected in equity earnings
Slide 7: 3Q 2024 Overview
3Q 2024 Overview $MM (Unless Otherwise Noted) Earnings $ 346 Adjusted earnings 859 Adjusted earnings per share (EPS) 2.04 Operating cash flow 1,132 Capital expenditures and investments 358 Shareholder distributions 1,277 Net Debt-to-Capital 38% Sweeny Refinery 77 OLD OCEAN, TX
Slide 8: 3Q 2024 Adjusted Earnings
3Q 2024 Adjusted Earnings 3Q 2024 vs 2Q 2024 ($MM) 3Q 2024 2Q 2024 Change • Midstream - Seasonal Midstream $ 672 753 (81) maintenance costs; lower Chemicals 342 222 120 equity earnings Refining (67) 302 (369) • Chemicals - Higher margins; Marketing and Specialties 583 415 168 lower costs Renewable F
Slide 9: 3Q 2024 Cash Flow
3Q 2024 Cash Flow $B 1.5 (0.4) (1.3) 0.2 0.2 (0.6) 2.4 (0.4) 1.6 June 30, 2024 CFO Working Shareholder Acquisitions Capex Proceeds from Other September 30, Cash (excluding Capital Distributions & Investments Asset 2024 1 Balance working Dispositions Cash 1 capital) Balance 1 Includes cash and cash e
Slide 10: 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 - $330 MM *Excludes impacts from our investment in NOVONIX Houston Food Bank Volunteer Event HOUSTON, TX 1010
Slide 11: Questions and Answers: 3Q 2024 Financial Highlights
Questions and Answers 3Q 2024 Financial Highlights $2.04 $1.1 B $1.3 B Adjusted EPS Operating cash flow Shareholder Distributions $12.5 B shareholder Achieved $400 MM run-rate distributions since July 2022 Clean product yield 87% DCP synergy target Achieved $1.4 B run-rate $1.4 B capital expenditure
Slide 12: Appendix
Appendix Borger Refinery, / Borger, TX /
Slide 13: 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. 13 13 13
Slide 14: Progress Toward $3 B Asset Disposition Target
Progress Toward $3 B Asset Disposition Target Segment Announcement Announced Disposition Impact Proceeds Date Belle Chasse Terminal Midstream $0.1 B 4Q 2022 South Texas Gateway Terminal Midstream 0.3 B 2Q 2023 Rockies Express Pipeline Midstream 0.7 B 2Q 2024 $2.7 B of $3 B Target Discovery Pipeline
Slide 15: Capital Structure
Capital Structure 40% 40% 40% 40% 38% 34% 38% 38% 36% 34% 34% 24% 34.1 31.7 30.8 30.5 29.8 21.6 20.2 20.0 20.0 19.4 17.2 14.4 6.1 3.1 3.3 2.4 1.6 1.6 2021 2022 2023 1Q 2024 2Q 2024 3Q 2024 Equity $B Debt $B Cash & Cash Equivalents $B Debt-to-Capital Net Debt-to-Capital 15 15 15
Slide 16: 3Q 2024 Refining Adjusted Pre-Tax Income
3Q 2024 Refining Adjusted Pre-Tax Income 3Q 2024 VS. 2Q 2024 ($MM) 2Q 2024 Atlantic Gulf Central West 3Q 2024 Adjusted Basin / Coast Corridor Coast Adjusted Pre-Tax Income Europe Pre-Tax Income 94% crude utilization 87% clean product yield (76) 302 92% market capture1 (144) (67) (214) (61) (102) 308
Slide 17: 3Q 2024 Realized Refining Margin
3Q 2024 Realized Refining Margin 3Q 2024 VS. 2Q 2024 ($/BBL) • 92% Market capture1 vs. 93% in 2Q $(1.67) $(0.03) • Higher feedstock costs • Improved clean product yield, $10.01 offset by lower premium product $8.31 differentials • Improved secondary product impacts 2Q 2024 Market Change in 3Q 2024 R
Slide 18: 3Q 2024 Market Indicator vs. Realized Margin
3Q 2024 - Market Indicator vs. Realized Margin ($/BBL) $(0.77) • 92% Market capture1 • 87% Clean product yield $9.08 • Higher crude costs and $8.31 secondary product impacts 3Q 2024 Capture Impact 3Q 2024 RIN-Adj Market Realized Margin 1 Indicator 1 Capture reflects the percentage of our Phillips 66
Slide 19: Phillips 66 Refining Indicator Market Capture
Phillips 66 Refining Indicator Market Capture1 3Q 2024 2Q 2024 Worldwide Realized Margin ($/BBL) 8.31 10.01 Worldwide Refining Indicator ($/BBL) 9.08 10.75 Worldwide Market Capture (%) 92 % 93 % Atlantic Basin Realized Margin ($/BBL) 5.87 8.10 Atlantic Basin Indicator ($/BBL) 6.27 10.30 Atlantic Bas
Slide 20: 3Q 2024 Adjusted Earnings
3Q 2024 Adjusted Earnings 3Q 2024 vs 3Q 2023 ($MM) 3Q 2024 3Q 2023 Change Midstream $ 672 581 91 Chemicals 342 104 238 Refining (67) 1,742 (1,809) Marketing and Specialties 583 605 (22) Renewable Fuels (116) 22 (138) Corporate and Other (327) (303) (24) Adjusted income before income taxes $ 1,087 2,
Slide 21: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Sep YTD 3Q 2024 2021 2022 2023 4Q 2023 2024 TTM Reconciliation of Midstream Income before Income Taxes to Adjusted EBITDA Income before income taxes $ 1,131 5,176 2,819 759 1,965 2,724 Plus: Depreciation and amortization 426 567 923 234 686 920 Midstream
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2024 2022 Sep YTD Sep YTD Reconciliation of Operating and SG&A Expenses to Adjusted Controllable Costs Operating expenses $ 4,358 4,383 Selling, general and administrative expenses 2,303 1,538 Controllable costs $ 6,661 5,921 Special I
Slide 23: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated Sept YTD 2022 2024 Reconciliation of Refining Operating and SG&A Expenses to Refining Adjusted Controllable Costs Turnaround expenses $ 361 772 Other operating expenses 2,398 3,995 Total operating expenses 2,759 4,767 Selling, general
Slide 24: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2024 2023 3Q 2Q 3Q Reconciliation of Consolidated Earnings to Adjusted Earnings Consolidated Earnings 346 1,015 2,097 Pre-Tax Adjustments: Impairments1 28 224 — 2 Los Angeles Refinery shutdown-related costs 41 — — Net (gain)/loss on as
Slide 25: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2024 2023 3Q 2Q 3Q Reconciliation of Midstream Pre-Tax Income to Adjusted Pre-Tax Income Pre-tax income 644 767 724 Pre-tax adjustments: Impairments 28 224 — Net gain on asset disposition — (238) (101) Change in inventory method for ac
Slide 26: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2024 2023 3Q 2Q 3Q Reconciliation of Refining Pre-Tax Income to Adjusted Pre-Tax Income Pre-tax income (108) 302 1,712 Pre-tax adjustments: Los Angeles Refinery shutdown-related costs 41 — — Legal accrual — — 30 Adjusted Pre-Tax Income
Slide 27: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2024 2023 3Q 2Q 3Q Reconciliation of Renewable Fuels Pre-Tax Income (Loss) to Adjusted Pre-Tax Income (Loss) Pre-tax income (loss) (116) (55) 22 Pre-tax adjustments: None — — — Adjusted Pre-Tax Income (Loss) (116) (55) 22 Reconciliatio
Slide 28: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars 2024 3Q 2Q Reconciliation of Refining - Atlantic Basin / Europe Pre-tax Income (Loss) to Adjusted Pre-Tax Income (Loss) Pre-tax income (loss) $ (61) 15 Pre-tax adjustments: None — — Adjusted Pre-Tax Income (Loss) $ (61) 15 Reconciliation of Refining - Gul
Slide 29: Non-GAAP Reconciliations
Non-GAAP 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 % 29 29 29
Slide 30: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars 3Q 2024 Reconciliation of Consolidated Net Income to Adjusted EBITDA Net income $ 369 Plus: Income tax expense 44 Net interest expense 191 Depreciation and amortization 543 Phillips 66 EBITDA $ 1,147 Special Item Adjustments (pre-tax): Impairments 28 Lega
Slide 31: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars (Except as Indicated) 3Q 2024 Atlantic Basin/ Central Europe Gulf Coast Corridor West Coast Worldwide Reconciliation of Refining Income (Loss) Before Income Taxes to Realized Refining Margins Income (loss) before income taxes $ (61) (102) 308 (253) (108)