Phillips 66 · NYSE:PSX
Phillips 66 — Investor Presentation (May 2022)
61 slides from Phillips 66's investor presentation, May 19, 2022
Slide 1: Investor Update
‘San Francisco Refinery, RODEO, CA PROVIDING ENERGY. IMPROVING LIVES. Investor Update MAY 2022
Slide 2: Cautionary Statement
a 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.
Slide 3: Global Manufacturing Facilities
global manufacturing research and development facilities centers in the U.S. million BPD of crude branded branded throughput capacity U.S. outlets international outlets
Slide 4: Integrated, Diversified Portfolio
— Integrated, Diversified Portfolio Ferndale GLOBAL ASSETS MAP LEGEND @® Batteries: @ Coke Facility @ cpchem di, cPChem Facility (O&P) @ — Crude Terminal/Pipeline DCP Gathering B® Fractionator © Fractionator in Progress © Hydrogen Fueling’ © Lubricants Facility —— Natural Gas Pipeline @ — NGL/LPG Te
Slide 5: Executing the Strategy
a Executing the Strategy Enabling Long-Term Value Creation and Positioning for the Future Vision Strategy Providing Energy. Improving Lives. Operating Excellence Committed to safety, environmental stewardship, sustainability, reliability and cost efficiency, while protecting shareholder value Values
Slide 6: Operating Excellence
a Operating Excellence Total Recordable Rates Industry A e Industry Safety Metrics (Incidents per 200,000 hours worked) neustry Average (Incidents per 200,000 hours worked) Ee = = 12 = Food Agricul., All Construction Petchem. Prof. Petroleum Phillips 66 Manufact. Crop Manufact. Manufact. &Bus. Refin
Slide 7: Long-Term Capital Allocation Framework
Long-Term Capital Allocation Framework $6-7 B mid-cycle CFO Sustaining capital for asset integrity, safety and environmental projects Strong balance sheet and investment grade credit ratings Secure, competitive and growing dividend Intrinsic value approach to share repurchases Continued debt repayme
Slide 8: ESG Summary
a ESG Summary Sustainability & ESG are at the heart of our vision to provide energy in ways that improve lives, and recent enhancements to our ESG strategy and disclosures demonstrate our commitment to deliver on this vision Environmental Social Governance sais Environmental impact reduced through a
Slide 9: 2030 GHG Emissions Reduction Targets
2030 GHG Emissions Reduction Targets Lower-Carbon Solutions Drive Progress Consistent with our Strategy and Disciplined Capital Allocation Approach Emissions Reduction Targets Intend to lower GHG emissions intensity by 2030 from 2019 baseline ie) 30% Manufacturing-related emissions (Scope 1 and 2) f
Slide 10: Expanding Emissions Reduction to 2050
Expanding Emissions Reduction to 2050 Manufacturing-Related Target Aligned with Company Strategy and Disciplined Approach to Capital Allocation Scope 1 and 2 Manufacturing-Related Emissions Intensity (CO2e Metric Tons/MBOE) 30% Reduction from 2019 % 50% Reduction from 2019 36.7 37.2 25.7 2019 2020 2
Slide 11: Advancing a Lower-Carbon Future
— Advancing a Lower-Carbon Future Deliver Shareholder Value Through Innovative Energy Investments and Strategic Collaborations ‘ (eye e XS rE ee == Invest in energy transition such as renewable fuels, Advance solutions such as solid oxide fuel cells and Work with industries, manufacturers and suppli
Slide 12: Emerging Energy
Emerging Energy Building a Robust Platform Developing lower-carbon business opportunities Targeting $2 billion of EBITDA contribution by 2030 Commercializing and implementing new technology Leveraging commercial acumen and leadership in research and innovation Continuing capital discipline and empha
Slide 13: Energy Research & Innovation
Energy Research & Innovation Research Advancing Solutions for a Lower-Carbon Future Fuel Cell Research at Phillfmbe Research Center BARTL 1) Number of patents as of December 31, 2021. Focus areas include solid oxide fuel cells, organic photovoltaic polymers, next-generation battery materials and ren
Slide 14: Midstream
PHILLIPS PROVIDING ENERGY. IMPROVING LIVES. Midstream |
Slide 15: Midstream Portfolio
| Midstream Portfolio Transportation NGL and Other DCP Midstream 22,000+ miles of U.S. pipeline systems 500,000+ BPD fractionation capacity 35 natural gas processing facilities 39 product terminals 260,000 BPD LPG export capacity 5.4 BCFD net natural gas processing 20 crude oil terminals 150,000 BPD
Slide 16: Premier Midstream Business
| Premier Midstream Business Top-quartile safety performance Adjusted EBITDA Transportation & NGL ($B) mDCP Diversified portfolio of assets integrated with 19 23 24 22 Refining and Marketing 13 Ll | Crude system allows optionality for producers, = refiners and exporters Vv ® ° 7 7 Advantaged USGC st
Slide 17: DCP Midstream
| DCP Midstream Logistics & Marketing and Gathering & Processing 1 ort! 1.6 BCFD gj Wood River Diversified portfolio in premier basins Ponca al city Large-scale U.S. NGL producer and gas processor Mid-Continent Permian 11 BCFD 1.1 BCFD Integrated NGL supply feeds Phillips 66 Sweeny Hub Optimizing co
Slide 18: Midstream Project Execution
Midstream Project Execution Sweeny Hub 150 MBD fourth fractionator will bring total Sweeny Hub fractionation capacity to 550 MBD by 3Q 2022 Secured y-grade feedstock supply agreements with firm volume commitments Fractionators fully integrated with 260 MBD Freeport LPG Export Terminal Provides ethan
Slide 19: Chemicals
PHILLIPS PROVIDING ENERGY. IMPROVING LIVES. Chemicals |
Slide 20: Feedstock Advantaged Chemicals Portfolio
Feedstock Advantaged Chemicals Portfolio . } ay J > [wes e b Q-Chem | & Il SPCo & S-Chem / Cedar Bayou Orange el ra Port Arthur ™sweeny/Old Ocean High density polyethylene (HDPE), Normal alpha olefins (NAO). Metrics shown net of JV capacity and sourced from IHS, Nexant, and company filings. See appe
Slide 21: Macro Chemicals Outlook
Macro Chemicals Outlook Portfolio well-positioned in North America and Middle East Expanding global middle class is increasing demand forecast for polyethylene at a 3.5% CAGR Meeting strong demand for food packaging, medical supplies and other consumer products Source: IHS; Polyethylene demand based
Slide 22: Chevron Phillips Chemical
a Chevron Phillips Chemical Industry-leading safety performance Adjusted EBITDA! ($B) Proprietary technology Advantaged feedstock portfolio Global marketing network Debottleneck opportunities — 7 18 19 20 21 Capital Expenditures and Investments! ®= Sustaining Olefins and Polyolefins Capacity Utiliza
Slide 23: 2020 CPChem Sustainability Report
2020 CPChem Sustainability Report Enhancing efforts to eliminate plastic pellet spills by joining Operation Clean Sweep Blue and investing in Circulate Capital Ocean Fund Continuing to combat plastic waste and Product communicate value of plastics Sustainability & Circularity Founding member of Alli
Slide 24: CPChem Circular Polyethylene
CPChem Circular Polyethylene Completed first commercial sales of circular polyethylene from difficult-to-recycle plastic waste CPChem successfully processed pyrolysis oil in a certified commercial-scale trial and is working to further expand production volumes, targeting annual production of 1 billi
Slide 25: CPChem Growth Projects
a CPChem Growth Projects U.S. Gulf Coast II World-scale ethylene and polyethylene facility on US Gulf Coast CPChem 51% equity interest Final investment decision expected in 2022 Ras Laffan Petchem Project World-scale ethylene and polyethylene facility in Qatar CPChem 30% equity interest Other Growth
Slide 26: Refining
Refining | a wu 2 a oso = e 6 n” = a. = = = — > = = a wi = wu cs = 2 => o c a
Slide 27: Enhancing Refining Returns
Enhancing Refining Returns Top-quartile HSE performance Capital and cost discipline Selectively investing for clean product yield and crude flexibility Investing in renewable diesel and sustainable aviation fuel Diverse geographic footprint Adjusted EBITDA ($B) ma 7 18 19 20 2 Capital Expenditures a
Slide 28: North America Crude Feedstock Flexibility
— North America Crude Feedstock Flexibility WESTERN CANADIAN EASTERN CANADIAN CRUDE West Coast “: D> all Bayway . 364 MBD AA Atlantic wl : = Basin / Europe f "“ Wood River 537 MBD al a) San Francisco \ \ai ; if Ponta City ‘. Central Corridor 531 MBD B bake Charles Gulf Coast 28 Capacities as of Janu
Slide 29: Renewable Fuels
| Renewable Fuels Enhancing Our Business Model for a Sustainable Future Rodeo capacity to produce 8 MBD; full refinery conversion to produce 50+ MBD by 2024 Humber co-processing capacity to produce 3 MBD from used cooking oil; 5 MBD by 2024 Nevada 3 MBD supply and offtake agreements 1 billion gallon
Slide 30: Rodeo Renewed
| Rodeo Renewed Transformation to Large-Scale Renewable Transportation Fuels Production Facility Constructing pre-treatment units and repurposing existing hydro-processing units to process renewable feedstocks * Capital efficient project that leverages existing units Capable of processing most renew
Slide 31: Marketing & Specialties
PHILLIPS PROVIDING ENERGY. IMPROVING LIVES. Marketing & Specialties
Slide 32: Enhancing M&S Returns
— Enhancing M&S Returns Consistent high-return, low-capital business Adjusted EBITDA ($B) Product placement for Refining Expand U.S. retail presence through JV’s La | a | a a 7 18 19 20 2) Distribution of renewable fuels Leverage brand strength Capital Expenditures and Investments ($B) Site reimagin
Slide 33: Secure Product Placement
| Secure Product Placement United States ~6,400 sites reimaged since program inception All eligible sites are mobile enabled Direct consumer engagement Extend participation in retail value chain Europe Proven low-cost, high-volume model Reimaging and high-grading the JET brand se 4 Value chain appro
Slide 34: Financial Strategy
PHILLIPS PROVIDING ENERGY. IMPROVING LIVES. Financial Strategy
Slide 35: 45% 40% 35% 30% 25% 20% 15% 10% 5% 0 0%
45 45% 40 40% 35 35% 30 30% 25 25% 20 20% 15 15% 10 10% 5 5% 0 0%
Slide 36: Consolidated Debt and Liquidity
Consolidated Debt and Liquidity Debt Maturity Profile as of March 31, 2022 ($B) =PSX Revolving Credit Facility =PSXP Revolving Credit Facility PSXP Term Loan mPSXP Senior Notes mPSX Senior Notes 1 15-1 ot mo 10-81 0.5 " osfosh,s Bosh 88o7fos ) Rea i) 2022 2024 2026 2028 2030 2032 $14.4 B Total Debt
Slide 37: Adjusted EBITDA and Returns
Adjusted EBITDA and Returns Adjusted EBITDA ($B) Adjusted Earnings ($ per share) | . Ps 7 18 19 20 1.71 5.70 (0.89) as a1 v7 18 19 20 21 Adjusted ROCE (% After-Tax) Peer ROCE 2018-2021 Average (% After-Tax) Peer Avg 1% 7 18 19 20 See appendix for footnotes 9% 21 Peer Avg 37
Slide 38: Sustaining
Sustaining Midstream Refining & PSXP Marketing
Slide 39: Distributions
| Distributions Secure, competitive and growing dividend * 18% CAGR with eleven increases!? Committed to shareholder distributions * Repurchased / exchanged 23% of shares initially outstanding? Returned almost $30 B to shareholders through dividends, share repurchases and exchanges Recently announce
Slide 40: Total Shareholder Return
| Total Shareholder Return Total Shareholder Return Since IPO (%) S&P 100 +264% 300% Peers +249% i 260% i (" 220% ‘ 180% Ke | 140% vO WS ! 100% spo V 60% 20% -20% May-12 May-13, May-14 May-15, May-16 May-17, May-18 May-19 May-20 May-21 May-22 40 Share price as of May 5, 2022. See appendix for additi
Slide 41: Slide 41
Slide 42: 2022 Sensitivities
| 2022 Sensitivities Annual EBITDA $MM Midstream - DCP (net to Phillips 66) 10¢/Gal Increase in NGL price 17 Chemicals - CPChem (net to Phillips 66) 1¢/Lb Increase in Chain Margin (Ethylene, Polyethylene, NAO) 65 Worldwide Refining $1/BBL Increase in Gasoline Margin 320 $1/BBL Increase in Distillate
Slide 43: Value Chain
Value Chain Opnittivs 66 QOcrchem Obdce midstream Liquids and Natural Gas NGL and Natural Gas Fractionation Gathering and Pipelines and Storage Processing Wellhead Crude Pipelines, Product Pipelines, Marine, Shipping Refineries Terminals and . and Rail Marine Crude Oil | , a Used Oils, Animal Renewa
Slide 44: Our Energy In Action
a Our Energy In Action 44
Slide 45: General Information
General Information disclosed is as of March 31, 2022, 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. Date Conventions 21 is as of December 31, 2021, or the twelve-mon
Slide 46: Slide Notes and Sources
Slide 6 Industry averages are from: Phillips 66 – American Fuel & Petrochemical Manufacturers (AFPM) refining data, Chevron Phillips Chemical LLC (CPChem) – American Fuel & Petrochemical Manufacturers (AFPM) chemicals data, DCP Midstream, LLC (DCP Midstream) – Gas Processors Association (GPA). Phill
Slide 47: Emissions Reduction Definitions
Slide 9 1. Manufacturing-related emissions include Scope 1 and 2. Scope 1 includes all direct emissions by the company such as fuel combustion and fugitive emissions, calculated per the EPA’s Mandatory Greenhouse Gas Reporting Program (GHGRP). Scope 2 includes indirect emissions from imported electr
Slide 48: ROCE Comparisons
Slide 10 1. Footnotes from slide 9 are also applicable to the information on slide 14. 2. Our companywide 2050 target accounts for growth and possibility of future portfolio optimization to meet customer energy-type demand. We intend to lower our manufacturing-related emissions intensity 50% by 2050
Slide 49: Non-GAAP Reconciliation
Non-GAAP Reconciliation Millions of Dollars Except as Indicated 2017 2018 2019 2020 2021 Reconciliation of Consolidated Earnings (Loss) to Adjusted Earnings (Loss) Consolidated Earnings (Loss) 5,106 5,595 3,076 (3,975) 1,317 Pre-tax adjustments: Pending claims and settlements (60) 21 (21) (37) — Pen
Slide 50: Adjusted EBITDA Reconciliation
Non-GAAP Reconciliation Millions of Dollars 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Reconciliation of Phillips 66 Net Income (Loss) to Adjusted EBITDA Phillips 66 net income (loss) 4,131 3,743 4,797 4,280 1,644 5,248 5,873 3,377 (3,714) 1,594 Less: Income from discontinued operations 48 61
Slide 51: Midstream Reconciliation
Non-GAAP Reconciliation Millions of Dollars 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Reconciliation of Phillips 66 Net Income (Loss) to Adjusted EBITDA continued Other Adjustments (pre-tax)4: Proportional share of selected equity affiliates income taxes 105 115 144 118 115 105 128 114 77 18
Slide 52: Chemicals Reconciliation
Non-GAAP Reconciliation Millions of Dollars 2017 2018 2019 2020 2021 Reconciliation of Midstream Pre-Tax Income (Loss) to Adjusted EBITDA Midstream pre-tax income (loss) 638 1,181 684 (9) 1,610 Plus: Interest revenue (1) — — — — Depreciation and amortization 299 320 304 331 443 Midstream EBITDA 936
Slide 53: Refining Reconciliation
Non-GAAP Reconciliation Millions of Dollars 2017 2018 2019 2020 2021 Reconciliation of Chemicals Pre-Tax Income to Adjusted EBITDA Chemicals pre-tax income 716 1,025 879 635 1,844 Plus: None — — — — — Chemicals EBITDA 716 1,025 879 635 1,844 Special Item Adjustments (pre-tax): Impairments by equity
Slide 54: Marketing & Specialties Reconciliation
Non-GAAP Reconciliation Millions of Dollars 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Reconciliation of Refining Pre-Tax Income (Loss) to Adjusted EBITDA Refining pre-tax income (loss) 5,089 2,782 2,467 3,659 436 2,076 4,535 1,986 (6,155) (2,549) Plus: Depreciation and amortization 655 685 7
Slide 55: Corporate & Other Reconciliation
Non-GAAP Reconciliation Millions of Dollars 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Reconciliation of Marketing & Specialties Pre-Tax Income to Adjusted EBITDA Marketing and Specialties pre-tax income 863 1,327 1,475 1,652 1,261 1,020 1,557 1,433 1,446 1,809 Plus: Interest revenue — — — (2
Slide 56: DCP Midstream Reconciliation
Non-GAAP Reconciliation Millions of Dollars 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Reconciliation of Corporate & Other Pre-Tax Loss to Adjusted EBITDA Corporate and Other pre-tax loss (673) (694) (680) (729) (747) (895) (853) (804) (881) (974) Plus: Net interest expense 231 258 246 285 32
Slide 57: DCP Midstream Capital Expenditures
Non-GAAP Reconciliation Millions of Dollars 2017 2018 2019 2020 2021 Reconciliation of DCP Midstream Pre-Tax Income (Loss) to Adjusted EBITDA DCP Midstream pre-tax income (loss) 76 106 (784) (958) 185 Plus: None — — — — — DCP Midstream EBITDA 76 106 (784) (958) 185 Special Item Adjustments (pre-tax)
Slide 58: Capital Expenditures and Investments
Non-GAAP Reconciliation Millions of Dollars 2017 2018 2019 2020 2021 Proportional Share of Select Equity Affiliates Capital Expenditures and Investments* DCP Midstream (Midstream) 268 484 472 119 55 CPChem (Chemicals) Growth 571 131 155 104 191 Sustaining 205 208 227 180 176 Total 776 339 382 284 36
Slide 59: Capital Structure Metrics
Non-GAAP Reconciliation Millions of Dollars 2018 2019 2020 2021 2022 Budget Phillips 66 Capital Expenditures and Investments Midstream Growth 1,360 1,605 1,470 501 424 Sustaining 188 264 216 237 277 Total 1,548 1,869 1,686 738 701 Refining Growth 267 409 329 279 408 Sustaining 559 592 487 500 488 To
Slide 60: ROCE
Non-GAAP Reconciliation Millions of Dollars (Except as Indicated) 2017 2018 2019 2020 2021 1Q 2022 Total Debt 10,110 11,160 11,763 15,893 14,448 14,434 Total Equity 27,428 27,153 27,169 21,523 21,637 22,121 Debt-to-Capital Ratio 27 % 29 % 30 % 42 % 40 % 39 % Total Cash 3,119 3,019 1,614 2,514 3,147
Slide 61: Non-GAAP Reconciliation
Non-GAAP Reconciliation Millions of Dollars (Except as Indicated) 2017 2018 2019 2020 2021 Phillips 66 ROCE Numerator Net income (loss) 5,248 5,873 3,377 (3,714) 1,594 After-tax interest expense 285 398 362 394 459 GAAP ROCE earnings (loss) 5,533 6,271 3,739 (3,320) 2,053 Special items (2,837) (51)