Slide 1: Second Quarter 2020 Conference Call
Beaumont Terminal NEDERLAND, TX SECOND QUARTER 2020 CONFERENCE CALL July 31, 2020 Second Quarter 2020 Conference Call 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 Fractionators 2 and 3 Construction Site OLD OCEAN, TX Second Quarter 2020 Conference Call 3
Slide 4: 2Q 2020 Overview
2Q 2020 Overview $MM (UNLESS OTHERWISE NOTED) Dock Construction at Beaumont Terminal NEDERLAND, TX Adjusted loss $ (324) Adjusted EPS1 (0.74) Operating cash flow 764 Adjusted capital spending2 901 Shareholder distributions3 393 Common shares outstanding at June 30 437 MM 1) Dollars per share Second
Slide 5: 2Q 2020 Adjusted Loss
2Q 2020 Adjusted Loss 2Q 2020 VS. 1Q 2020 ($MM) 450 (215) (104) (324) 214 19 (466) (195) (27) 1Q 2020 Midstream Chemicals Refining Marketing Corporate Income Noncontrolling 2Q 2020 Adjusted & Specialties & Other Taxes Interests Adjusted Earnings Loss 245 89 (867) 293 (224) 190 (50) 2Q 2020 Adjusted
Slide 6: Midstream Adjusted Pre-Tax Income
2Q 2020 Midstream Adjusted Pre-Tax Income 2Q 2020 VS. 1Q 2020 ($MM) Impacted by reduced throughput volumes (70) Started full operations on (96) Gray Oak Pipeline 460 (49) 245 Completed tie-in work at Sweeny Fracs 2 and 3 1Q 2020 Transportation NGL & DCP 2Q 2020 Adjusted Other Midstream Adjusted Pre-
Slide 7: Chemicals Adjusted Pre-Tax Income
2Q 2020 Chemicals Adjusted Pre-Tax Income 2Q 2020 VS. 1Q 2020 ($MM) 103% O&P utilization Meeting strong polymer demand for food packaging 193 (87) (1) and medical supplies (16) 89 Lower O&P margins 1Q 2020 Olefins & Specialties, Other 2Q 2020 Adjusted Polyolefins Aromatics & Adjusted Pre-Tax Income
Slide 8: Refining Adjusted Pre-Tax Loss
2Q 2020 Refining Adjusted Pre-Tax Loss 2Q 2020 VS. 1Q 2020 ($MM) 1Q 2020 Atlantic Gulf Central West 2Q 2020 Adjusted Basin / Coast Corridor Coast Adjusted Pre-Tax Loss Europe Pre-Tax Loss 75% crude utilization (401) 83% clean product yield (867) (24) $2.60/BBL realized margin (183) $38 MM turnaround
Slide 9: Refining Margins – Market vs. Realized
2Q 2020 Refining Margins – Market vs. Realized WORLDWIDE REFINING ($/BBL, UNLESS OTHERWISE NOTED) (1.03) (0.95) (0.67) 7.47 (2.22) 2.60 2Q 2020 Configuration Secondary Feedstock Other 2Q 2020 Market Products Realized 3:2:1 Margin Avg Market Crude: $29.36 35% Market Capture Second Quarter 2020 Confer
Slide 10: Marketing & Specialties Adjusted Pre-Tax Income
2Q 2020 Marketing & Specialties Adjusted Pre-Tax Income 2Q 2020 VS. 1Q 2020 ($MM) Lower global marketing volumes and margins (175) Reimaged 313 branded sites (20) 488 worldwide 293 Refined product exports of 160 MBPD 1Q 2020 Marketing Specialties 2Q 2020 Adjusted & Other Adjusted Pre-Tax Income Pre-
Slide 11: Corporate & Other Adjusted Pre-Tax Loss
2Q 2020 Corporate & Other Adjusted Pre-Tax Loss 2Q 2020 VS. 1Q 2020 ($MM) 1Q 2020 Net Interest Corporate 2Q 2020 Adjusted Expense Overhead Adjusted Pre-Tax Loss & Other Pre-Tax Loss (197) (224) (19) (8) Second Quarter 2020 Conference Call 11
Slide 12: YTD 2020 Cash Flow
YTD 2020 Cash Flow $B 2.7 1.4 (1.8) (0.4) (1.2) (0.4) 1.6 1.9 December 31, CFO Working Debt Adjusted Shareholder Other June 30, 2019 (excluding Capital Capital Distributions 2020 Cash Working Spending2 Cash Balance1 Capital) Balance1 1) Includes cash and cash equivalents Second Quarter 2020 Conferen
Slide 13: 3Q 2020 Outlook
3Q 2020 Outlook Los Angeles Refinery WILMINGTON, CA Global Olefins & Polyolefins utilization Mid-90% Refining crude utilization Market Conditions Refining turnaround expenses (pre-tax) $50 MM – $70 MM Corporate & Other costs (pre-tax) $220 MM – $230 MM Second Quarter 2020 Conference Call 13
Slide 14: Questions and Answers
Phillips 66 Branded Marketing Site ST. LOUIS, MO Questions and Answers
Slide 15: Appendix
Phillips 66 Branded Marketing Site ST. LOUIS, MO Appendix
Slide 16: 2020 Estimated Sensitivities
2020 Estimated Sensitivities Annual EBITDA $MM Midstream - DCP (net to Phillips 66) 10¢/Gal Increase in NGL price 9 10¢/MMBtu Increase in Natural Gas price 2 $1/BBL Increase in WTI price 1 Chemicals - CPChem (net to Phillips 66) 1¢/Lb Increase in Chain Margin (Ethylene, Polyethylene, NAO) 65 Worldwi
Slide 17: 2Q 2020 Cash Flow
2Q 2020 Cash Flow $B 1.5 (0.9) 0.7 0.1 (0.4) (0.3) 1.9 1.2 March 31, CFO Working Debt Adjusted Shareholder Other June 30, 2020 (excluding Capital Capital Distributions 2020 Cash Working Spending2 Cash Balance1 Capital) Balance1 1) Includes cash and cash equivalents Second Quarter 2020 Conference Cal
Slide 18: Capital Structure
Capital Structure Consolidated PSX Excluding PSXP 38% 35% 34% 30% 31% 29% 35% 27% 33% 25% 25% 22% 30% 27% 28% 23% 22% 20% 17% 14% 27.4 27.2 27.2 23.6 23.3 25.1 24.7 24.9 21.4 20.7 13.0 14.4 10.1 11.2 11.8 10.7 8.1 8.2 9.4 1.2 7.2 1.3 1.1 3.1 3.0 1.6 1.9 2.9 3.0 1.9 2017 2018 2019 1Q 2Q 2017 2018 201
Slide 19: Refining Margins – Atlantic Basin / Europe
2Q 2020 Refining Margins – Market vs. Realized ATLANTIC BASIN / EUROPE ($/BBL, UNLESS OTHERWISE NOTED) Brent: $29.20 0.43 (1.55) 75% crude utilization 8.90 (5.82) (0.43) 1.53 17% market capture 2Q 2020 Configuration Secondary Feedstock Other 2Q 2020 Market Products Realized 3:2:1 Margin Market 3:2:1
Slide 20: Refining Margins – Gulf Coast
2Q 2020 Refining Margins – Market vs. Realized GULF COAST ($/BBL, UNLESS OTHERWISE NOTED) LLS: $30.07 2.50 (0.84) 79% crude utilization 5.12 (1.95) 7% market capture (4.47) 0.36 2Q 2020 Configuration Secondary Feedstock Other 2Q 2020 Market Products Realized 3:2:1 Margin Market 3:2:1 - LLS / Gasolin
Slide 21: Refining Margins – Central Corridor
2Q 2020 Refining Margins – Market vs. Realized CENTRAL CORRIDOR ($/BBL, UNLESS OTHERWISE NOTED) WTI: $27.80 (0.43) 0.10 (0.80) (1.01) 73% crude utilization 7.92 5.78 73% market capture 2Q 2020 Configuration Secondary Feedstock Other 2Q 2020 Market Products Realized 3:2:1 Margin Market 3:2:1 - WTI /
Slide 22: Refining Margins – West Coast
2Q 2020 Refining Margins – Market vs. Realized WEST COAST ($/BBL, UNLESS OTHERWISE NOTED) ANS: $30.37 (1.10) (1.02) (1.14) 72% crude utilization 9.69 (1.38) 5.05 52% market capture 2Q 2020 Configuration Secondary Feedstock Other 2Q 2020 Market Products Realized 3:2:1 Margin Market 3:2:1 - ANS / Los
Slide 23: 2Q 2020 Adjusted Loss vs. 2Q 2019
2Q 2020 Adjusted Loss 2Q 2020 VS. 2Q 2019 ($MM) (178) (186) 1,379 560 30 (324) (1,850) (60) (19) 2Q 2019 Midstream Chemicals Refining Marketing Corporate Income Noncontrolling 2Q 2020 Adjusted & Specialties & Other Taxes Interests Adjusted Earnings Loss 245 89 (867) 293 (224) 190 (50) 2Q 2020 Adjust
Slide 24: Midstream Adjusted Pre-Tax Income vs. 2Q 2019
2Q 2020 Midstream Adjusted Pre-Tax Income 2Q 2020 VS. 2Q 2019 ($MM) (115) 423 (60) (3) 245 2Q 2019 Transportation NGL & Other DCP 2Q 2020 Adjusted Midstream Adjusted Pre-Tax Income Pre-Tax Income 130 83 32 2Q 2020 Second Quarter 2020 Conference Call 24
Slide 25: Chemicals Adjusted Pre-Tax Income vs. 2Q 2019
2Q 2020 Chemicals Adjusted Pre-Tax Income 2Q 2020 VS. 2Q 2019 ($MM) 275 (154) (23) (9) 89 2Q 2019 Olefins & Specialties, Other 2Q 2020 Adjusted Polyolefins Aromatics & Adjusted Pre-Tax Income Styrenics Pre-Tax Income 106 11 (28) 2Q 2020 Second Quarter 2020 Conference Call 25
Slide 26: Refining Adjusted Pre-Tax Loss vs. 2Q 2019
2Q 2020 Refining Adjusted Pre-Tax Loss 2Q 2020 VS. 2Q 2019 ($MM) 983 (478) (578) (867) (633) (161) 2Q 2019 Atlantic Gulf Central West Coast 2Q 2020 Adjusted Basin / Coast Corridor Adjusted Pre-Tax Income Europe Pre-Tax Loss (220) (356) (113) (178) 2Q 2020 Second Quarter 2020 Conference Call 26
Slide 27: Marketing & Specialties vs. 2Q 2019
2Q 2020 Marketing & Specialties Adjusted Pre-Tax Income 2Q 2020 VS. 2Q 2019 ($MM) (35) (25) 353 293 2Q 2019 Marketing Specialties 2Q 2020 Adjusted & Other Adjusted Pre-Tax Income Pre-Tax Income 259 34 2Q 2020 Second Quarter 2020 Conference Call 27
Slide 28: Corporate & Other vs. 2Q 2019
2Q 2020 Corporate & Other Adjusted Pre-Tax Loss 2Q 2020 VS. 2Q 2019 ($MM) 2Q 2019 Net Interest Corporate 2Q 2020 Adjusted Expense Overhead Adjusted Pre-Tax Loss & Other Pre-Tax Loss (205) (224) (17) (2) Second Quarter 2020 Conference Call 28
Slide 29: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2020 2019 Jun YTD 2Q 1Q Jun YTD 2Q Phillips 66 Consolidated Earnings (Loss) $ (2,637) (141) (2,496) 1,628 1,424 Pre-Tax Adjustments: Pending claims and settlements (37) — (37) (21) — Pension settlement expense 38 38 — — — Impairments 3
Slide 30: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2020 2019 Jun YTD 2Q 1Q Jun YTD 2Q Midstream Pre-Tax Income (Loss) $ (378) 324 (702) 739 423 Pre-Tax Adjustments: Pension settlement expense 5 5 — — — Lower-of-cost-or-market inventory adjustments 1 — 1 — — Impairments 1,161 — 1,161 —
Slide 31: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2020 2019 Jun YTD 2Q 1Q Jun YTD 2Q Refining Pre-Tax Income (Loss) $ (3,139) (878) (2,261) 785 983 Pre-Tax Adjustments: Pending claims and settlements — — — (21) — Pension settlement expense 26 26 — — — Impairments 1,845 — 1,845 — — Low
Slide 32: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2020 2019 Jun YTD 2Q 1Q Jun YTD 2Q Midstream - Transportation Pre-Tax Income $ 414 214 200 448 245 Pre-Tax Adjustments: Asset dispositions (84) (84) — — — Adjusted Pre-Tax Income $ 330 130 200 448 245 Midstream - NGL & Other Pre-Tax In
Slide 33: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2020 2019 Jun YTD 2Q 1Q Jun YTD 2Q Chemicals - Olefins & Polyolefins Pre-Tax Income $ 247 70 177 479 260 Pre-Tax Adjustments: Lower-of-cost-or-market inventory adjustments 37 21 16 — — Impairments by equity affiliates 15 15 — — — Adjus
Slide 34: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2020 2019 Jun YTD 2Q 1Q Jun YTD 2Q Refining - Atlantic Basin / Europe Pre-Tax Income (Loss) $ (864) (227) (637) 251 258 Pre-Tax Adjustments: Impairments 441 — 441 — — Pension settlement expense 7 7 — — — Adjusted Pre-Tax Income (Loss)
Slide 35: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2020 2019 Jun YTD 2Q 1Q Jun YTD 2Q Refining - Central Corridor Pre-Tax Income (Loss) $ (331) (104) (227) 597 520 Pre-Tax Adjustments: Pending claims and settlements — — — (21) — Lower-of-cost-or-market inventory adjustments — (15) 15 —
Slide 36: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2020 2019 Jun YTD 2Q 1Q Jun YTD 2Q Marketing & Specialties - Marketing & Other Pre-Tax Income $ 726 255 471 432 294 Pre-Tax Adjustments: Pension settlement expense 4 4 — — — Pending claims and settlements (37) — (37) — — Adjusted Pre-T
Slide 37: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars (Except as Indicated) 2Q 2020 Atlantic Basin/ Central Europe Gulf Coast Corridor West Coast Worldwide Realized Refining Margins Loss before income taxes $ (227) (365) (104) (182) (878) Plus: Taxes other than income taxes 15 25 14 22 76 Depreciation, amort
Slide 38: Non-GAAP Reconciliations
Non-GAAP Reconciliations 2020 June YTD Numerator ($MM) Net Loss $ (2,494) After-tax interest expense 180 GAAP ROCE loss (2,314) After-tax special items 2,739 Adjusted ROCE earnings $ 425 Denominator ($MM) GAAP average capital employed1 $ 38,337 2020 Annualized GAAP ROCE (12)% 2020 Annualized Adjuste
Slide 39: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars (Except as Indicated) June 30, 2020 Phillips 66 Phillips 66 Phillips 66 Excluding Consolidated Partners1 Phillips 66 Partners Total Debt $ 14,446 3,707 10,739 Total Equity 23,295 2,550 20,745 Debt-to-Capital Ratio 38 % 34 % Total Cash $ 1,890 7 1,883 Net
Slide 40: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Millions of Dollars 2Q 2020 2020 June YTD Growth Sustaining Total Growth Sustaining Total Capital Expenditures and Investments Midstream $ 543 54 597 $ 1,072 105 1,177 Refining 67 97 164 165 244 409 Marketing & Specialties 73 13 86 89 22 111 Corporate & O
Slide 41: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2Q 2020 Effective Tax Rates Loss before income taxes $ (445) Special items (19) Adjusted loss before income taxes $ (464) Income tax benefit $ (378) Special items 188 Adjusted income tax benefit $ (190) GAAP effective tax rate 84.9 % A