Phillips 66 · NYSE:PSX
Phillips 66 — Investor Day (December 2012)
100 slides from Phillips 66's investor day presentation, Dec 13, 2012
Slide 1: 2012 Analyst Meeting
2012 Analyst Meeting December 13, 2012 New York, NY
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: Agenda
Agenda Introduction Clayton Reasor Overview and Strategy Greg Garland Growing Value Tim Taylor Improving Returns Larry Ziemba Financial Strategy Greg Maxwell Break Closing Comments Greg Garland Q&A 3
Slide 4: Overview and Strategy
Overview and Strategy Greg Garland Chairman and Chief Executive Officer December 13, 2012 New York, NY
Slide 5: Delivering on Commitments
Delivering on Commitments Operating well Capturing opportunities Creating shareholder value Maintaining discipline 5
Slide 6: Operating Excellence – Safety
Operating Excellence – Safety At Phillips 66 we take the Incidents per 200,000 Hours Worked time to work safely, every job, every day. 2012 YTD 2009 2010 2011 Industry Average See appendix for footnotes. 6
Slide 7: Vision
Vision Top safety performance Growing enterprise value Competitive mid-cycle ROCE High-performing organization Leading total shareholder return Providing energy, improving lives 7
Slide 8: Competitive Position
Competitive Position Differentiated portfolio Midstream infrastructure Geographic advantages Chemicals and specialties Financial flexibility Free cash flow Capital allocation Balance sheet strength Experienced management 8
Slide 9: Expanding Higher Valued Businesses
Expanding Higher Valued Businesses Growing and shifting portfolio See appendix for footnotes. 9
Slide 10: Strategic Drivers
Strategic Drivers North American oil and gas production revolution Long-term U.S. feedstock and energy cost advantage U.S. exports capture share of growing global demand 10
Slide 11: Structural Shift – U.S. Liquids Production
Structural Shift – U.S. Liquids Production Strong growth: 6%+ CAGR MMBbls/day Waterborne crude imports declined 29% since 2005 Forecast Infrastructure investments required See appendix for footnotes. 11
Slide 12: Structural Shift – U.S. Advantage
Structural Shift – U.S. Advantage U.S. Disadvantage U.S. Advantage Advantaged feedstocks Low energy costs Scale and complexity See appendix for footnotes. 12
Slide 13: U.S. Export Growth Drives Refining Utilization
U.S. Export Growth Drives Refining Utilization Net Exports Growing global demand MMBbls/day New export capability Net Imports Higher refinery utilization See appendix for footnotes. 13
Slide 14: U.S. Refinery Cracks
U.S. Refinery Cracks Maintaining favorable margins Normalizing inland crude $/bbl differentials Structural advantage for U.S. refining See appendix for footnotes. 14
Slide 15: Midstream Strategy
Midstream Strategy Grow aggressively DCP Phillips 66 Midstream Establish Phillips 66 MLP Creates value for PSX shareholders Grows infrastructure Increases transparency 15
Slide 16: Chemicals Strategy
Chemicals Strategy Access advantaged feedstocks U.S. Gulf Coast growth 2013 - NGL fractionation expansion 2014 - 1-hexene plant at Cedar Bayou 2017 - Ethane cracker and derivatives Proprietary technology Global sales force 16
Slide 17: Refining and Marketing Strategy
Refining and Marketing Strategy Improve Refining returns Increase advantaged feedstocks Drive margin improvements LLS/ANS Grow Marketing and Specialties Enable full refining utilization Pursue high-value investments Implement “Optimize 66” See appendix for footnotes. 17
Slide 18: Financial Strategy
Financial Strategy Disciplined capital allocation Growing shareholder distributions Enhanced financial flexibility 18
Slide 19: Funding Business Investments
Funding Business Investments ($B) Midstream Chemicals R&M Refining WRB DCP P66 Midstream CPChem MSO Trans. Capital Program of $3.7 B in 2013 Midstream, Chemicals, and R&M include equity share of DCP Midstream, CPChem, and WRB capital expenditures respectively. See appendix for additional footnotes.
Slide 20: Long-term ROCE Improvement
Long-term ROCE Improvement 15%+ Mid-cycle Cost & R&M Growth Long-term Portfolio Margin Mid-cycle 20
Slide 21: Shareholder Distributions
Shareholder Distributions Expanded share repurchase plan to $2 B and Regular dividends announced dividend increase to $1.25/year Secure Increased quarterly dividend to $0.25 Growing Competitive Announced $1 B share repurchase plan Share repurchase Announced 1st quarterly dividend of $0.20 Discretion
Slide 22: 2013 Key Initiatives
2013 Key Initiatives Growth Establish MLP Progress USGC petrochemical complex Returns Increase advantaged crude runs Maintain capital discipline Implement “Optimize 66” Grow distributions Enhance financial flexibility 22
Slide 23: Growing Value
Growing Value Tim Taylor Executive Vice President, Commercial, Marketing, Transportation and Business Development December 13, 2012 New York, NY
Slide 24: Growing Value
Growing Value Midstream Chemicals Marketing & Specialties U.S. oil and gas production Low cost U.S. feedstocks Adding value and growth drives investment underpin petrochemical enhancing returns expansion 24
Slide 25: Phillips 66 Master Limited Partnership
Phillips 66 Master Limited Partnership Formation of Phillips 66 MLP Supports infrastructure investment Creates value for shareholders Qualified assets Crude and product pipelines Terminals NGL assets Leverage existing position for growth 25
Slide 26: Phillips 66 Master Limited Partnership
Phillips 66 Master Limited Partnership Traditional structure Phillips 66 as general partner (GP) Incentive distribution rights to GP Quarterly distributions to unit holders Minority of LP Interest sold to public Anticipate IPO in 2nd half of 2013 Targeting $300-400 MM of gross cash proceeds resultin
Slide 27: Midstream
Midstream DCP Midstream 50/50 JV with Spectra Leading U.S. gatherer and processor Largest U.S. NGL producer Adjusted EBITDA $1.3 B Phillips 66 Midstream 3 NGL fractionators 1 natural gas pipeline Adjusted EBITDA $200 MM Assets in the heart of new reserve developments See appendix for footnotes. 27
Slide 28: DCP Midstream – Growth Strategy
DCP Midstream – Growth Strategy Gathering and Processing Building processing capacity in liquids- rich growth areas $3-4 B Capex NGL Logistics Building NGL infrastructure to extend the value chain and become a full service provider $2-3 B Capex Spending $5-7 B in growth projects from 2011 – 2015 See
Slide 29: DCP Midstream Transformation
DCP Midstream Transformation 2011 2011-2015 2015 Growth CapEx Opportunity $5B to $7B ~$10 B Assets $15 B+ 62 # of plants 70+ Processing volume 5.4 ~6.0 (Bcf/d) NGL production ~400 500+ (MBPD) ~1,250 NGL pipelines (mi)* ~3,000 *Reflects partial ownership Top tier gatherer and Leader in midstream logi
Slide 30: Phillips 66 Transportation
Phillips 66 Transportation PSX Assets 16,000+ miles of pipelines 40 product terminals 5 crude oil terminals 1 coke terminal ~7,000 rail cars Proprietary trucking operations Terminals Products Crude Access to advantaged crudes and NGLs NGL Deliver clean products to markets 30
Slide 31: Central Region Integrated Value Delivery
Central Region Integrated Value Delivery 50% proprietary racks Enables maximum refining runs Connectivity to major markets Product Terminals Products Crude Ability to optimize across assets NGL 31
Slide 32: Building Infrastructure Value
Building Infrastructure Value EBITDA New organic growth opportunities Sand Hills and Southern Hills Pipelines Increased advantaged crude Expansion of existing footprint Increased revenue base with services Grow to more than $500 MM 32
Slide 33: Chevron Phillips Chemical Company (CPChem) Delivering Profitable Growth
Chevron Phillips Chemical Company (CPChem) Delivering Profitable Growth Global Portfolio 36 Manufacturing Sites 2 Research Facilities Sales into over 100 countries Adjusted EBITDA $ 2.4 B See appendix for footnotes. 33
Slide 34: CPChem – Equity Production Capacity
CPChem – Equity Production Capacity Regional Products (Blb/y) 24 (Blb/y) Other NAO Polyethylene Propylene Other Cyclohexane Paraxylene Ethylene Benzene Styrene Olefins / Specialties, Aromatics Polyolefins and Styrenics 34
Slide 35: CPChem – Competitive Position
CPChem – Competitive Position Relative Peer Performance Capacity in low-cost feedstock areas 1 2 1 2 4 5 5 1 4 Proprietary technology position 6 Global marketing reach 35
Slide 36: Chemicals – Cost Advantage
Chemicals – Cost Advantage 2013 Ethylene Production Cost Curve ($/ton) Middle East and North America are advantaged regions Marginal capacity is naphtha-based CPChem’s capacity is well-positioned Source: IHS 36
Slide 37: CPChem – Middle East
CPChem – Middle East CPChem Equity Production Capacity (Blb/y) S-Chem (SCP and JCP) Saudi Polymers Q-Chem and Q-Chem II 37
Slide 38: CPChem – U.S. Gulf Coast Growth
CPChem – U.S. Gulf Coast Growth 2013 NGL fractionation expansion at Sweeny CPChem Equity Production Capacity 2014 1-hexene plant at Cedar Bayou (Blb/y) 2017 Gulf Coast ethane cracker/polyethylene complexes See appendix for footnotes. 38
Slide 39: Business Structure
Business Structure Midstream Chemicals Marketing and Specialties Marketing Lubricants Specialty Coke Growth Returns 39
Slide 40: Clean Products Marketing
Clean Products Marketing Branded Marketing Optimized product placement Integrated branded marketing Growing unbranded and commercial Market Share >20% Increasing export flexibility and value 10 - 20% 5 - 10% 0.1 - 5% 0% Refinery locations 13% ROCE See appendix for footnotes. 40
Slide 41: Continental European Retail
Continental European Retail Growing Sites and Revenue Top three in market share MiRO Positioned as a value brand Market Share Market efficiency twice the industry >20% 10-20% average <10% 0% 25%+ ROCE See appendix for footnotes. 41
Slide 42: Lubricants
Lubricants Strong production at Excel Paralubes Top marketer of high quality base oil Significant growth with low unit cost 25%+ ROCE See appendix for footnotes. 42
Slide 43: Specialty Coke
Specialty Coke Needle coke Essential to recycling steel World leader Market growing 2-4%/yr Anode coke Critical to aluminum production Supply ~7% of world demand Market growing 5-7%/yr 43
Slide 44: Marketing and Specialties
Marketing and Specialties Stable earnings with high returns 2012 YTD ROCE includes global marketing, lubricants and specialty products. See appendix for additional footnotes. 44
Slide 45: Growing Value
Growing Value WE ARE PHILLIPS 66 Investing in Midstream and Chemicals Accessing advantaged feedstocks Building infrastructure around assets Increasing value of refinery streams CREATING VALUE 45
Slide 46: Improving Returns
Improving Returns Larry Ziemba Executive Vice President, Refining, Project Development and Procurement December 13, 2012 New York, NY
Slide 47: Operating Excellence – Safety and Environmental
Operating Excellence – Safety and Environmental Total Refining Recordable Rate Refining Emissions Incidents per 200,000 Hours Worked (Lb/MBbl) 0.75 Industry 250 200 0.5 150 100 0.25 50 0 0 2009 2010 2011 2012 YTD 2002 2004 2006 2008 2010 2012 YTD Driving continuous improvement See appendix for footn
Slide 48: Operating Excellence – Reliability
Operating Excellence – Reliability Strong performance versus industry See appendix for footnotes. 48
Slide 49: Refining Regions
Refining Regions Western / Pacific Central Corridor Gulf Coast Atlantic Basin / Europe Crude Capacity (MBD) United States FD BI Ireland BW WG HU SF WR United LA PC Kingdom BG Global Realized Crack AL ($/bbl) LC SW Germany MI Malaysia ME See appendix for footnotes. 49
Slide 50: Improving Refining Returns
Improving Refining Returns Increasing advantaged crude Improving yields Expanding export capability Controlling costs Investing in high return small projects 400 basis point improvement in refining ROCE 50
Slide 51: Increasing Advantaged Crude Throughput
Increasing Advantaged Crude Throughput Brent 51
Slide 52: Processing Additional Advantaged Crude
Processing Additional Advantaged Crude 52
Slide 53: Processing Additional Advantaged Crude
Processing Additional Advantaged Crude See appendix for footnotes. 53
Slide 54: Increasing Advantaged Crude Throughput
Increasing Advantaged Crude Throughput Domestic Crude Pricing Basis Brent LLS/ANS Heavy Canadian WTI/WTS 2010 2011 2012 YTD 2013E Long-term Targeting 90% advantaged crude long-term See appendix for footnotes. 54
Slide 55: Improving Yields
Improving Yields Distillate Yield (Percentage of processed inputs) Industry 40.8% Global distillate demand growth 39.9% 40.2% 39.5% Strong distillate yields 37.1% 37.2% 35.8% Eleven refineries with low capital opportunities 2010 2011 2012 YTD 2013E Investing in high impact opportunities See appendix
Slide 56: Expanding Product Export Capability
Expanding Product Export Capability Increase placement options 100 MBD new export capability 30% of coastal clean products Capture global demand growth Growing export capability supports high utilization 56
Slide 57: Controlling Costs
Controlling Costs Ten of fifteen refineries benchmark in the top third Good reliability supporting competitive costs Targeting energy efficiency and turnaround improvements Includes Phillips 66 Refining total controllable costs and equity portion of Refining total process inputs Disciplined cost man
Slide 58: Maintaining Capital Discipline
Maintaining Capital Discipline Sustaining spend below depreciation Selective high return projects yielding 30+% AARR Increasing advantaged crude Improving yields Growing export capability See appendix for footnotes. 58
Slide 59: Improving Refining ROCE
Improving Refining ROCE Return on Capital Employed Driving operating excellence + 400 basis points Increasing advantaged crude Improving yields and export capability Maintaining capital and cost discipline Mid-cycle Adv Crude Yields & Cost Long-term Exports 59
Slide 60: Financial Strategy
Financial Strategy Greg Maxwell Executive Vice President, Finance and Chief Financial Officer December 13, 2012 New York, NY
Slide 61: Financial Strategy
Financial Strategy Capital allocation discipline Cost management focus Balance sheet strength Creating shareholder value 61
Slide 62: Financial Performance
Financial Performance Differentiated portfolio Midstream Chemicals Refining and Marketing Strong earnings and returns focus •2012E adjusted earnings and ROCE based on analysts’ estimates. 62
Slide 63: 2012 Financial Performance by Segment
2012 Financial Performance by Segment Midstream Chemicals R&M 2012 YTD ROCE PSX 31% LYB 20% WLK 16% XOM 14% DOW 8% See appendix for footnotes. 63
Slide 64: Value Capture – “Optimize 66”
Value Capture – “Optimize 66” Pre-Tax Value Capture ($MM) ~$170 MM of dis-synergies “Optimize 66” initiative launched 2013 cost savings exceed $200 MM Continuing cost and value focus 64
Slide 65: Capital Allocation
Capital Allocation 2010 $2.1 B Sustaining capital 2011 $5.0 B Growth capital 2012E $4.7 B Increasing distributions 2013E $4.5 B Financial flexibility Dividends Sustaining Capital Cash from Operations 2012E and 2013E cash from operations based on analysts’ estimates. See appendix for additional footn
Slide 66: Phillips 66 Capital Expenditures
Phillips 66 Capital Expenditures By Segment By Type ($B) ($B) 2.0 2.0 Corporate Corporate 1.5 1.5 Growth Midstream MS Pipelines 1.0 1.0 D&A $0.9 0.5 R&M 0.5 Sustaining 0.0 0.0 2012E 2013E 2012E 2013E See appendix for footnotes. 66
Slide 67: 2013 Capital Program
2013 Capital Program ($B) 4.0 3.5 PSX 3.0 CPChem 2.5 DCP 2.0 3.7 PSX 1.5 CPChem DCP 1.0 WRB 0.5 1.0 0.0 PSX Sustaining JV Sustaining Corporate Growth Total 67
Slide 68: Returns to Shareholders
Returns to Shareholders 2012 Distributions as % of CFO Total Shareholder Return Dividends 61% Share Repurchases Reflects $0.3125 / Share Dividends Average 22% Average = 35% S&P 100 = 2% TSO VLO PSX MPC DOW 2012 cash from operations based on analysts’ estimates. See appendix for additional footnotes.
Slide 69: Distributions
Distributions 2012 Announcements Premised 2013 Distributions as % of Share Price Dividends July: Quarterly dividend initiated Share Repurchases October: 25% dividend increase 3% December: 25% dividend increase Share repurchase plans Dividends 2% August: $1 B December: Expanded to $2 B Share price as
Slide 70: Debt and Liquidity
Debt and Liquidity Debt Maturity Profile Liquidity ($B) ($B) Total Committed Liquidity Facilities = $5.2 B 3.5 1.6 1.5 Available Committed Liquidity Facilities = $5.0 B 0.6 0.7 Letters of Credit Issued Revolver Facility Available Capacity 2012 2013 2014 2015 2016 2017- 2022- 2021 2050 Receivable Sec
Slide 71: Capital Structure
Capital Structure Equity, debt, and debt-to-capital ratio estimates based on analysts’ earnings estimates. See appendix for additional estimates. 71
Slide 72: Balance Sheet Strength
Balance Sheet Strength Net Debt-to-Capital Ratio 20% – 30% debt-to-capital target $8 B debt at end of 2012 41% Investment grade credit ratings: Average = 16% Moody’s Baa1 21% 15% S&P BBB 5% -1% DOW VLO PSX TSO MPC See appendix for footnotes. 72
Slide 73: Long-term ROCE Improvement
Long-term ROCE Improvement 15%+ Mid-cycle Cost & R&M Growth Long-term Portfolio Margin Mid-cycle 73
Slide 74: Financial Focus and Deliverables
Financial Focus and Deliverables Shareholder value Capital allocation Cost management Balance sheet strength 74
Slide 75: WE ARE PHILLIPS
WE ARE PHILLIPS 66 Providing Energy, Improving Lives. PHILLIPS 66) Safety. Honor. Commitment. (66)
Slide 76: A Promising Future
A Promising Future Operating excellence Growth Returns Distributions High-performing organization 76
Slide 77: Appendix
2012 Analyst Meeting Appendix
Slide 78: Footnotes
Footnotes All Slides 2012 YTD information is through September 30, 2012 unless otherwise noted. Slide 6 Injury statistics do not include major projects Industry averages are from: Phillips 66 – American Fuels and Petrochemical Manufacturers (AFPM) refining data, CPChem – American Chemistry Council (
Slide 79: Footnotes, continued
Footnotes, continued Slide 14 3-2-1 spread vs. regional crude blend, weighted to Phillips 66 average regional processed refinery inputs. GC vs. LLS, EC vs. Brent, Mid-Con vs. WTI, WC vs. ANS Based on average of five analysts’ forecasts ranging from $12 to $21/bbl. Slide 17 •WRB crude runs included a
Slide 80: Footnotes, continued
Footnotes, continued Slide 29 Capex shown is 100% of DCP’s capital program. Slide 33 Adjusted EBITDA shown is 100% of CPChem Adjusted EBITDA, 3 year average (2010, 2011 and annualized 2012 YTD) Slide 38 CPChem equity production capacity includes planned and potential projects. Slide 40 ROCE is 3 yea
Slide 81: Footnotes, continued
Footnotes, continued Slide 47 Metrics exclude Trainer and Wilhelmshaven refineries. Industry average data from American Fuels and Petrochemical Manufacturers (AFPM). Slide 48 Refinery utilization excludes Trainer and Wilhelmshaven refineries. Industry average data from U.S. Energy Information Admini
Slide 82: Footnotes, continued
Footnotes, continued Slide 58 Capital spending excludes WRB. D&A based on 2013 estimate. Slide 62 2012E adjusted earnings and ROCE based on analysts’ estimates. Slide 63 2012 YTD ROCE results calculated from annualized 2012 YTD data. Slide 65 2012E and 2013E cash from operations based on analysts’ e
Slide 83: Footnotes, continued
Footnotes, continued Slide 69 2013 Distributions as % of share price based on share price as of December 7, 2012. Slide 70 Debt maturity profile as per covenants in debt agreements Slide 71 Equity, debt, and debt-to-capital ratio estimates based on analysts’ earnings estimates, the announced $2 B sh
Slide 84: 2013 Guidance
2013 Guidance 2013 $B Corporate Segment Net Expense 0.5 Turnaround Costs 0.4 Depreciation and Amortization Expense 1.0 Cash Capital Expenditures 1.8 84
Slide 85: 2013 Sensitivities
2013 Sensitivities Worldwide R&M (assuming 95% refining utilization rate) Net Income $MM $1/BBL Increase in Refining Margin 440 $1/BBL Increase Impacts in Crude due to Actual Price Crude Impact on Feedstock Secondary Differing fromProducts Feedstock Assumed in Market (20) Indicators: $1/BBL Widening
Slide 86: PSX Non GAAP Reconciliations
PSX Non GAAP Reconciliations Millions of Dollars 2012 YTD 2011 2010 2009 Consolidated Earnings (loss) $ 3,416 $ 4,775 $ 735 $ 476 Adjustments: Net (gain) loss on asset sales/share issuance (106) (1,545) (116) (120) Impairments 399 318 1,118 116 Pending claims and settlements 57 - (35) 25 Cancelled p
Slide 87: PSX Non GAAP Reconciliations
PSX Non GAAP Reconciliations Millions of Dollars 2012 YTD 2011 2010 2009 R&M Earnings (loss) $ 3,232 $ 3,848 $ 146 $ 71 Adjustments: Net (gain) loss on asset sales (106) (1,545) (116) (32) Impairments 69 318 1,118 116 Pending claims and settlements 57 - (35) 25 Cancelled projects - 28 29 - Severance
Slide 88: PSX Non GAAP Reconciliations
PSX Non GAAP Reconciliations Millions of Dollars 2012 YTD 2011 2010 2009 Refining Earnings (loss) $ 2,839 $ 1,533 $ (466) $ (454) Adjustments: Net (gain) loss on asset sales (104) 81 - - Impairments 42 318 1,110 - Pending claims and settlements 19 - - 25 Cancelled projects - 28 29 - Severance accrua
Slide 89: PSX Non GAAP Reconciliations
PSX Non GAAP Reconciliations Millions of Dollars 2012 YTD 2011 2010 2009 Marketing, Specialties and Other Earnings (loss) $ 393 $ 2,315 $ 612 $ 525 Adjustments: Net (gain) loss on asset sales (2) (1,626) (116) (32) Impairments 27 - 8 116 Pending claims and settlements 38 - (35) - Repositioning tax i
Slide 90: PSX Non GAAP Reconciliations
PSX Non GAAP Reconciliations 2009 2010 2011 2012 YTD Phillips 66 - ROCE Numerator ($MM) Net income 479 740 4,780 3,421 After-tax interest expense 1 1 11 111 GAAP ROCE earnings 480 741 4,791 3,532 Special Items 21 1,024 (1,184) 659 Adjusted ROCE earnings 501 1,765 3,607 4,191 Denominator ($MM) GAAP a
Slide 91: PSX Non GAAP Reconciliations
PSX Non GAAP Reconciliations ROCE - 2012 YTD Annualized R&M Midstream Chemicals Numerator ($MM) Net income 3,237 (79) 577 After-tax interest expense - - - GAAP ROCE earnings 3,237 (79) 577 Special Items 156 303 157 Adjusted ROCE earnings 3,393 224 734 Denominator ($MM) GAAP average capital employed*
Slide 92: PSX Non GAAP Reconciliations
PSX Non GAAP Reconciliations 2010 2011 2012 YTD Clean Products Marketing - ROCE Numerator ($MM) Net income 518 352 205 After-tax interest expense - - - GAAP ROCE earnings 518 352 205 Adjustments: Net (gain) loss on asset sales (116) (8) (2) Impairments 8 - - Pending claims and settlements (35) - 38
Slide 93: PSX Non GAAP Reconciliations
PSX Non GAAP Reconciliations 2010 2011 2012 YTD Marketing and Specialties - ROCE Numerator ($MM) Net income 706 632 395 After-tax interest expense - - - GAAP ROCE earnings 706 632 395 Adjustments: Net (gain) loss on asset sales (116) (31) (2) Impairments 8 - - Pending claims and settlements (35) - 3
Slide 94: PSX Non GAAP Reconciliations
PSX Non GAAP Reconciliations Marketing and Specialties EBITDA Millions of Dollars 2010 2011 2012 YTD Net Income 706 632 394 Income taxes 449 378 318 Net interest expense (40) (32) - Depreciation and amortization 86 91 64 EBITDA 1,201 1,069 776 Adjustments Net (gain) loss on asset sales (234) (53) (4
Slide 95: PSX Non GAAP Reconciliations
PSX Non GAAP Reconciliations Transportation EBITDA Millions of Dollars 2012 YTD Net Income 115 Income taxes 1 Net interest expense - Depreciation and amortization 59 2012 YTD Annualized EBITDA 175 233 95
Slide 96: PSX Non GAAP Reconciliations
PSX Non GAAP Reconciliations DCP Midstream, LLC Millions of Dollars 2010 2011 2012 YTD Net income 619 924 429 Income taxes 5 3 2 Net interest expense 253 213 146 Depreciation and amortization 413 449 224 EBITDA 1,290 1,589 801 Adjustments - - - 2012 YTD Annualized Three Year Average Adjusted EBITDA
Slide 97: PSX Non GAAP Reconciliations
PSX Non GAAP Reconciliations Non-DCP P66 Midstream Millions of Dollars 2012 YTD Net income (220) Income taxes (114) Net interest expense - Depreciation and amortization 1 EBITDA (333) Adjustments Impairments 480 2012 YTD Annualized Adjusted EBITDA 147 196 97
Slide 98: PSX Non GAAP Reconciliations
PSX Non GAAP Reconciliations CPChem Millions of Dollars 2010 2011 2012 YTD Net Income 1,388 1,970 1,703 Income taxes 42 58 51 Net interest expense 62 18 10 Depreciation and amortization 255 258 283 EBITDA 1,747 2,304 2,047 Adjustments (15) 42 250 2012 YTD Annualized Three Year Average Adjusted EBITD
Slide 99: PSX Non GAAP Reconciliations
PSX Non GAAP Reconciliations CPChem Millions of Dollars 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 YTD Net income 7 626 853 1,349 719 276 615 1,388 1,970 1,703 Average Assets 6,175 6,557 6,916 7,040 7,176 6,954 7,047 7,717 8,325 8,894 Net Income/Average Assets 0% 10% 12% 19% 10% 4% 9% 18% 24%
Slide 100: PSX Non GAAP Reconciliations
PSX Non GAAP Reconciliations Net-Debt-to-Capital Millions of Dollars 9/30/2012 Total Debt 7,978 Total Cash and Cash Equivalents (4,430) Net Debt (Total Debt less Total Cash) 3,548 Total Equity 20,606 Net-Debt-to-Capital Ratio: 15% 100