Phillips 66 · NYSE:PSX

Phillips 66 — Q2 2023 Earnings Presentation

30 slides from Phillips 66's earnings presentation, Aug 2, 2023

  1. Slide 1: Phillips 66 Branded Marketing Site HOUSTON, TX Sweeny ethylene unit

    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 Sweeny Freeport Bayway Ponca South Texas Gateway PONCA 1 CityRefinery Refinery, Terminal LINDEN, NJ CITY, INGLESIDE, TXOK

  2. Slide 2: Cautionary Statement

    Cautionary Statement This presentation contains forward-looking statements within the meaning of the federal securities laws. Words such as “anticipated,” “estimated,” “expected,” “planned,” “scheduled,” “targeted,” “believe,” “continue,” “intend,” “will,” “would,” “objective,” “goal,” “project,” “e

  3. Slide 3: Executing the Strategy

    Executing the Strategy Sweeny Ethylene Unit SweenyOCEAN, SWEENY/OLD Hub Fractionators TX Renewable Fuels Catalyst OLD Research Reactor OCEAN, TX PHILLIPS RESEARCH CENTER, BARTLESVILLE, OK Humber Refinery N. LINCOLNSHIRE, U.K. Sweeny Hub Fractionators Freeport Export Terminal Humber Organic Solar Cel

  4. Slide 4: Strategic Priorities

    Strategic Priorities <> Deliver Shareholder Returns had $5.4 B shareholder distributions since July 2022 On track to meet $10 B - $12 B by YE 2024 | | | Improve Refining Performance Continued above industry-average crude utilization >$300 MM run-rate cost savings as of June 30 Completed acquisition

  5. Slide 5: Business Transformation Savings

    Business Transformation Savings $MM unless otherwise noted 5

  6. Slide 6: 2Q 2023 Overview

    2Q 2023 Overview Ponca City Refinery Phillips 66 Branded Marketing Site PONCA CITY, OK HOUSTON, Ponca Refinery, PONCA CITY, OKTX $MM (UNLESS OTHERWISE NOTED) Phillips 66 Station BORGER, TX Adjusted earnings $ 1,766 Sweeny Refinery OLD OCEAN, TX Adjusted EPS1 3.87 Operating cash flow 955 Capital expe

  7. Slide 7: 2Q 2023 Adjusted Earnings

    2Q 2023 Adjusted Earnings 2Q 2023 VS. 1Q 2023 ($MM) 1Q 2023 2Q 2023 Midstream Chemicals Refining Marketing Corporate Income Noncontrolling Adjusted Adjusted & Specialties & Other Taxes Interests Earnings Earnings (52) (6) 44 45 218 12 (460) 1,965 1,766 626 192 1,148 644 (236) (532) (76) 2Q 2023 Adju

  8. Slide 8: 2Q 2023 Cash Flow

    2Q 2023 Cash Flow $B 2.0 1.3 (1.0) (0.6) (4.0) 7.0 0.1 (1.8) 3.0 March 31, CFO Working Capital Debt Repurchase of Shareholder Other June 30, 2023 (excluding Capital Expenditures Noncontrolling Distributions 2023 Cash working & Investments Interests 2 Cash 1 1 Balance capital) Balance 1) Includes cas

  9. Slide 9: Outlook

    Outlook South Texas Gateway Terminal INGLESIDE, TX O'Connor Gas Plant LA SALLE, CO 3Q 2023 Global Olefins & Polyolefins utilization Mid-90% Refining crude utilization Mid-90% Refining turnaround expenses $110 MM - $130 MM Corporate & Other costs $280MM - $300 MM Taft Storage Facility at Gray Oak Pip

  10. Slide 10: Questions and Answers

    Phillips 66 Branded Marketing Site ST. LOUIS, MO Questions and Answers

  11. Slide 11: Appendix

    Phillips 66 Branded Marketing Site ST. LOUIS, MO Appendix

  12. Slide 12: 2023 Estimated Sensitivities

    2023 Estimated Sensitivities . 12

  13. Slide 13: Capital Structure

    Capital Structure 42% 40% 39% 34% 35% 38% 34% 35% 24% 25% 34.1 34.9 31.1 21.5 21.6 18.5 19.9 15.9 17.2 14.4 6.1 7.0 2.5 3.1 3.0 2020 2021 2022 1Q 2023 2Q 2023 Equity $B Debt $B Cash & Cash Equivalents $B Debt-to-Capital Net Debt-to-Capital 13

  14. Slide 14: 2Q 2023 Refining Adjusted Pre-Tax Income

    2Q 2023 Refining Adjusted Pre-Tax Income 2Q 2023 VS. 1Q 2023 ($MM) 1Q 2023 Atlantic Gulf Central West 2Q 2023 Adjusted Basin / Coast Corridor Coast Adjusted Pre-Tax Income Europe Pre-Tax Income 93% crude utilization 7 86% clean product yield 90 (448) (109) 73% market capture 1,608 1,148 $102 MM turn

  15. Slide 15: 2Q 2023 Refining Margins – Market vs. Realized

    2Q 2023 Refining Margins – Market vs. Realized ($/BBL, UNLESS OTHERWISE NOTED) 2.77 (4.90) 0.67 20.96 (4.17) 15.32 2Q 2023 Configuration Secondary Products Feedstock Other 2Q 2023 RIN-Adjusted Realized Market 3:2:1 Margin Avg Market Crude: $76.45 73% RIN-Adjusted Market Capture 15

  16. Slide 16: 2Q 2023 Refining Margins – Market vs. Realized

    2Q 2023 Refining Margins – Market vs. Realized ATLANTIC BASIN / EUROPE ($/BBL, UNLESS OTHERWISE NOTED) Brent: $78.39 (5.69) (2.39) 3.46 86% crude utilization 21.05 (5.48) 10.94 52% market capture 2Q 2023 Configuration Secondary Feedstock Other 2Q 2023 RIN-Adjusted Products Realized Market 3:2:1 Marg

  17. Slide 17: 2Q 2023 Refining Margins – Market vs. Realized

    2Q 2023 Refining Margins – Market vs. Realized GULF COAST ($/BBL, UNLESS OTHERWISE NOTED) LLS: $75.85 2.17 3.56 (4.97) 15.66 94% crude utilization 11.84 (4.58) 76% market capture 2Q 2023 Configuration Secondary Feedstock Other 2Q 2023 RIN-Adjusted Products Realized Market 3:2:1 Margin RIN-Adjusted M

  18. Slide 18: 2Q 2023 Refining Margins – Market vs. Realized

    2Q 2023 Refining Margins – Market vs. Realized CENTRAL CORRIDOR ($/BBL, UNLESS OTHERWISE NOTED) 3.07 WTI: $73.78 3.58 (3.56) (4.54) 94% crude utilization 24.08 22.62 94% market capture 2Q 2023 Configuration Secondary Feedstock Other 2Q 2023 RIN-Adjusted Products Realized Market 3:2:1 Margin RIN-Adju

  19. Slide 19: 2Q 2023 Refining Margins – Market vs. Realized

    2Q 2023 Refining Margins – Market vs. Realized WEST COAST ($/BBL, UNLESS OTHERWISE NOTED) ANS: $78.60 (4.72) 1.56 0.48 98% crude utilization (5.46) 24.40 16.27 67% market capture 2Q 2023 Configuration Secondary Feedstock Other 2Q 2023 RIN-Adjusted Products Realized Market 3:2:1 Margin RIN-Adjusted M

  20. Slide 20: 2Q 2023 Adjusted Earnings

    2Q 2023 Adjusted Earnings 2Q 2023 VS. 2Q 2022 ($MM) 368 (81) 395 3,285 (61) (2,044) (95) (1) 1,766 2Q 2022 Midstream Chemicals Refining Marketing Corporate Income Noncontrolling 2Q 2023 Adjusted & Specialties & Other Taxes Interests Adjusted Earnings Earnings 626 192 1,148 644 (236) (532) (76) 2Q 20

  21. Slide 21: YTD 2023 Cash Flow

    YTD 12 2023 Cash Flow $B 4.5 2.6 10 8 (2.3) (0.9) 6 (4.0) 4 0.1 6.1 (3.1) 2 3.0 0 December 31, CFO (excluding Working Capital Debt Repurchase of Shareholder Other June 30, 2022 working capital) Capital Expenditures Noncontrolling 2 Distributions 2023 Cash & Investments Interests Cash 1 1 Balance Bal

  22. Slide 22: Non-GAAP Reconciliations

    Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2023 2022* Jun YTD 2Q 1Q Jun YTD 2Q Phillips 66 Consolidated Earnings $ 3,658 1,697 1,961 3,749 3,167 Pre-Tax Adjustments: Hurricane-related costs — — — 17 — Net (gain)/loss on asset disposition (22) 14 (36) — — Alliance shutdown-relat

  23. Slide 23: Non-GAAP Reconciliations

    Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2023 2022* Jun YTD 2Q 1Q Jun YTD 2Q Midstream Pre-Tax Income $ 1,306 604 702 470 258 Pre-Tax Adjustments: Net gain on asset disposition (36) — (36) — — 1 DCP Integration restructuring costs 34 22 12 — — Adjusted Pre-Tax Income $ 1,304

  24. Slide 24: Non-GAAP Reconciliations

    Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2023 2022* Jun YTD 2Q 1Q Jun YTD 2Q Refining Pre-Tax Income $ 2,742 1,134 1,608 3,269 3,096 Pre-Tax Adjustments: Hurricane-related costs — — — 17 — Net loss on asset disposition 14 14 — — — 1 Alliance shutdown-related costs — — — 26 26

  25. Slide 25: Non-GAAP Reconciliations

    Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2023 2022* Jun YTD 2Q 1Q Jun YTD 2Q Midstream - Transportation Pre-Tax Income $ 590 284 306 528 250 Pre-Tax Adjustments: Net gain on asset disposition (36) — (36) — — Adjusted Pre-Tax Income $ 554 284 270 528 250 Midstream - NGL & Othe

  26. Slide 26: Non-GAAP Reconciliations

    Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2023 2022* Jun YTD 2Q 1Q Jun YTD 2Q Refining - Atlantic Basin / Europe Pre-Tax Income $ 291 149 142 1,254 1,102 Pre-Tax Adjustments: Regulatory compliance costs — — — 9 9 Adjusted Pre-Tax Income $ 291 149 142 1,263 1,111 Refining - Gul

  27. Slide 27: Non-GAAP Reconciliations

    Non-GAAP Reconciliations Millions of Dollars (Except as Indicated) 2Q 2023 Atlantic Basin/ Central Europe Gulf Coast Corridor West Coast Worldwide Realized Refining Margins Income before income taxes $ 149 243 630 112 1,134 Plus: Taxes other than income taxes 17 25 26 31 99 Depreciation, amortizatio

  28. Slide 28: Non-GAAP Reconciliations

    Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2022 June YTD Numerator Net Income $ 3,811 After-tax interest expense 362 GAAP ROCE earnings 4,173 After-tax special items 117 Adjusted ROCE earnings $ 4,290 Denominator GAAP average capital employed1 $ 51,111 2023 Annualized GAAP ROCE

  29. Slide 29: Non-GAAP Reconciliations

    Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2Q 2023 Total Debt $ 19,866 Total Equity 31,060 Debt-to-Capital Ratio 39 % Total Cash $ 3,029 Net Debt-to-Capital Ratio 35 % 29

  30. Slide 30: Non-GAAP Reconciliations

    Non-GAAP Reconciliations Millions of Dollars Millions of Dollars 2Q 2023 2023 June YTD Growth Sustaining Total Growth Sustaining Total Capital Expenditures and Investments Midstream $ 77 99 176 $ 146 154 300 Refining 248 81 329 401 155 556 Marketing & Specialties 14 11 25 20 16 36 Corporate & Other

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