Phillips 66 · NYSE:PSX
Phillips 66 — Citi Global Energy and Utilities Conference 2013
19 slides from Phillips 66's conference presentation, May 15, 2013
Slide 1: Citi Global Energy and Utilities Conference
Citi Global Energy and Utilities Conference Tim Taylor Executive Vice President, Commercial, Marketing, Transportation and Business Development May 15, 2013 Boston, MA
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: Phillips 66 Strategy
Phillips 66 Strategy Operating excellence Growth Returns Distributions High-performing organization Providing energy, improving lives 3
Slide 4: Segment Strategy
Segment Strategy Midstream: Build on existing base Chemicals: Grow capacity and earnings Grow Transportation and NGL Operations Pursue organic growth through CPChem Pursue organic growth through DCP Execute mega-projects Filed S-1 for PSXP Refining: Enhance returns Marketing & Specialties: Selective
Slide 5: Midstream - Large Platform for Growth
Midstream - Large Platform for Growth Capital Program ($B) 2.0 1.5 1.0 0.5 0.0 2010 2011 2012 2013 NGL Operations Fractionator Budget Transportation Storage DCP Midstream Gas Plant Transportation NGL Operations Pipeline DCP Midstream See appendix for footnotes. 5
Slide 6: Chemicals - Growth Projects
Chemicals - Growth Projects 2012 2013 2014 2015 2016 2017+ Capital Program ($B) SPCo Petrochemicals (35% ownership) 0.6 1,200 kMTA Sweeny Frac Expansion 22 MBD 0.4 1-Hexene 250 kMTA 0.2 USGC Petrochemicals 1,500 kMTA 0.0 2010 2011 2012 2013E NAO Expansion ~130 kMTA See appendix for footnotes. 6
Slide 7: Refining - Enhancing Returns
Refining - Enhancing Returns U.S. Refining Crudes (MBD) Brent LLS/ANS Heavy Canadian WTI/WTS Current 3+ Years ■ Extensive U.S. refining portfolio ■ Infrastructure and commercial capabilities ■ Shifting to 100% advantaged crude See appendix for footnotes. 7
Slide 8: Refining - Enhancing Returns
Refining - Enhancing Returns Distillate Yield Export Capacity (Percentage of processed inputs) (MBD) Industry 400 40.8% 39.9% 40.2% 39.5% 320 37.4% West 37.1% 35.8% Gulf East 2010 2011 2012 2013E Current 3+ Years ■ Capability to export 30% of coastal production ■ Peer-leading distillate yield ■ Prod
Slide 9: Marketing & Specialties
Marketing & Specialties Capital Program ($B) 0.2 0.1 Branded Market Share >20% Manufacturing Locations: 10 - 20% Lubricants PSPI - Flow Improvers 5 - 10% Power Generation 0.1 - 5% Refinery Locations 0.0 0% 2010 2011 2012 2013E See appendix for footnotes. 9
Slide 10: Financial Strategy
Financial Strategy Adjusted Earnings ($MM) 22% Disciplined capital Midstream Chemicals allocation Marketing & Specialties 14% 5.4 Refining Corporate ROCE Growing shareholder 7% 3.6 distributions 2% 1.8 0.5 Enhanced financial flexibility 2009 2010 2011 2012 10
Slide 11: Capital Allocation
Capital Allocation 2013E Sources and Uses of Cash ($B) Sustaining capital Share Repurchases Increasing distributions Debt Repayment 6.0 1.0 Growth Capital 0.8 Growth capital Dividends 0.8 1.0 Sustaining Capital Financial flexibility Cash from Uses Operations 2013E cash from operations based on First
Slide 12: A Promising Future
A Promising Future Operating excellence Growth Returns Distributions High-performing organization 12
Slide 13: Appendix
Institutional Investors Contact: Rosy C. Zuklic rosy.zuklic@p66.com Manager, Investor Relations 832-765-2297 Appendix
Slide 14: Footnotes
Footnotes Slide 5 DCP Midstream capital program includes equity share of DCP Midstream capital. 2012 Transportation includes acquisition costs for one-third interest of Sand Hills and Southern Hills Pipelines totaling approx $0.5 B. This amount was also included in DCP Midstream's capital spending,
Slide 15: Non-GAAP Reconciliations
Non-GAAP Reconciliations Reconciliation of Earnings to Adjusted Earnings Millions of Dollars 1Q13 1Q12 4Q12 2012 2011 2010 2009 Consolidated Earnings (loss) $ 1,407 $ 636 $ 708 $ 4,124 $ 4,775 $ 735 $ 476 Adjustments: Net (gain) loss on asset sales - - - (106) (1,545) (116) (32) Gain on share issuan
Slide 16: Non-GAAP Reconciliations
Non-GAAP Reconciliations Reconciliation of Earnings to Adjusted Earnings Millions of Dollars 1Q13 1Q12 4Q12 2012 2011 2010 2009 Midstream Earnings (loss) $ 110 $ 108 $ 92 $ 53 $ 2,149 $ 386 $ 386 Adjustments: Net (gain) loss on asset sales - - - - (1,618) - (19) Impairments - - - 330 4 - 79 Gain on
Slide 17: Non-GAAP Reconciliations
Non-GAAP Reconciliations Reconciliation of Earnings to Adjusted Earnings Millions of Dollars 1Q13 1Q12 4Q12 2012 2011 2010 2009 Refining Earnings (loss) $ 922 $ 393 $ 363 $ 3,217 $ 1,529 $ (545) $ (536) Adjustments: Net (gain) loss on asset sales - - - (104) 96 - - Impairments - 42 564 606 314 1,110
Slide 18: Non-GAAP Reconciliations
Non-GAAP Reconciliations 2009 2010 2011 2012 2013 YTD Phillips 66 - ROCE Numerator ($MM) Net Income $ 479 $ 740 $ 4,780 $ 4,131 $ 1,410 After-tax interest expense 1 1 11 160 46 GAAP ROCE earnings 480 741 4,791 4,291 1,456 Special Items 21 1,024 (1,184) 1,263 (26) Adjusted ROCE earnings $ 501 $ 1,765
Slide 19: Non-GAAP Reconciliations
Non-GAAP Reconciliations 2010 2011 2012 2013 YTD 2010 2011 2012 2013 YTD Refining - ROCE Marketing & Specialties - ROCE Numerator ($MM) Numerator ($MM) Net Income $ (545) $ 1,529 $ 3,217 $ 922 Net Income $ 567 $ 573 $ 465 $ 188 After-tax interest expense - - - - After-tax interest expense - - - - GA
Phillips 66 — Citi Global Energy and Utilities Conference 2013 on 6ix