Slide 1: First Quarter 2022 Conference Call
Phillips 66 Branded Marketing Site Sweeny ethylene unit HOUSTON, TX Lake Charles 1-Hexene Manufacturing Phillips 66Unit, Cedar Branded Complex, Bayou Marketing OLD Facility Site TX OCEAN, BAYTOWN, WESTLAKE, HOUSTON, TX TX LA First Quarter 2022 Conference Call April 29, 2022 San Francisco Refinery Sw
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 Ethylene Unit Humber Refinery SWEENY/OLD OCEAN, TX N. LINCOLNSHIRE, U.K. Humber Organic Solar Cells at Phillips 66 Research CenterRefinery N. LINCOLNSHIRE, BARTLESVILLE, SouthUnit Sweeny Ethylene OK Texas U.K.Terminal Gateway CPChem Cedar Bayou Facility SWEENY/OLD OCEAN
Slide 4: 1Q 2022 Overview
1Q 2022 Overview Ponca City Refinery PONCA CITY, OK Lake Charles Refinery Phillips 66 Branded Marketing Site HOUSTON, Ponca Refinery, PONCA CITY, OKTX WESTLAKE, LA $MM (UNLESS OTHERWISE NOTED) Denver Terminal DENVER, CO CPChem Polyethylene Unit OLD OCEAN, TX Adjusted earnings $ 595 Adjusted EPS1 1.3
Slide 5: 1Q 2022 Adjusted Earnings
1Q 2022 Adjusted Earnings 1Q 2022 VS. 4Q 2021 ($MM) 4Q 2021 1Q 2022 Midstream Chemicals Refining Marketing Corporate Income Noncontrolling Adjusted Adjusted & Specialties & Other Taxes Interests Earnings Earnings (426) (28) 1,298 179 23 (264) (183) (4) 595 242 396 140 316 (249) (175) (75) 1Q 2022 Ad
Slide 6: 1Q 2022 Midstream Adjusted Pre-Tax Income
1Q 2022 Midstream Adjusted Pre-Tax Income 1Q 2022 VS. 4Q 2021 ($MM) 5 Record Sweeny Hub (47) fractionated volumes (80) Frac 4 startup moved to third 668 quarter (304) 242 DCP impacted by hedge positions in rising market 4Q 2021 Transportation NGL DCP NOVONIX 1Q 2022 Adjusted & Other Midstream Adjust
Slide 7: 1Q 2022 Chemicals Adjusted Pre-Tax Income
1Q 2022 Chemicals Adjusted Pre-Tax Income 1Q 2022 VS. 4Q 2021 ($MM) 4 Lower O&P margins (28) (4) Higher O&P sales volumes 424 396 99% O&P utilization CPChem distributions of $299 MM 4Q 2021 Olefins & Specialties, Other 1Q 2022 Adjusted Polyolefins Aromatics & Adjusted Pre-Tax Income Styrenics Pre-Ta
Slide 8: 1Q 2022 Refining Adjusted Pre-Tax Income
1Q 2022 Refining Adjusted Pre-Tax Income 1Q 2022 VS. 4Q 2021 ($MM) 4Q 2021 Atlantic Gulf Central West 1Q 2022 Adjusted Basin / Coast Corridor Coast Adjusted Pre-Tax Income Europe Pre-Tax Income 89% crude utilization 29 84% clean product yield (59) $10.55/BBL realized margin 404 46 $102 MM turnaround
Slide 9: 1Q 2022 Refining Margins – Market vs. Realized
1Q 2022 Refining Margins – Market vs. Realized WORLDWIDE REFINING ($/BBL, UNLESS OTHERWISE NOTED) (2.92) 1.01 (3.05) 21.93 (6.42) 10.55 1Q 2022 Configuration Secondary Products Feedstock Other 1Q 2022 Market Realized 3:2:1 Margin Avg Market Crude: $97.21 48% Market Capture 9
Slide 10: 1Q 2022 Marketing & Specialties Adjusted Pre-Tax Income
1Q 2022 Marketing & Specialties Adjusted Pre-Tax Income 1Q 2022 VS. 4Q 2021 ($MM) Lower global marketing margins 16 Higher finished lubricant (199) margins 499 316 Refined product exports of 134 MBPD 4Q 2021 Marketing Specialties 1Q 2022 Adjusted & Other Adjusted Pre-Tax Income Pre-Tax Income 203 11
Slide 11: 1Q 2022 Cash Flow
1Q 2022 Cash Flow $B 1.3 (0.1) (0.4) (0.4) (0.2) 3.1 3.3 December 31, CFO Working Capital Shareholder Other March 31, 2021 (excluding Capital Expenditures Distributions 2022 Cash 1 Working & Investments Cash 1 Balance Capital) Balance 11 1) Includes cash and cash equivalents
Slide 12: Outlook
Outlook South Texas Gateway Terminal INGLESIDE, TX Denver Terminal Sustainable Aviation Fuel Lab DENVER, CO N. LINCOLNSHIRE, U.K. 2Q 2022 Global Olefins & Polyolefins utilization Mid-90% Refining crude utilization Low-90% Refining turnaround expenses (pre-tax) $230 MM – $250 MM Corporate & Other cos
Slide 13: Questions and Answers
Phillips 66 Branded Marketing Site ST. LOUIS, MO Questions and Answers
Slide 14: Appendix
Phillips 66 Branded Marketing Site ST. LOUIS, MO Appendix
Slide 15: 2022 Estimated Sensitivities
2022 Estimated Sensitivities 15 Sensitivities shown above are independent and are only valid within a limited price range
Slide 16: Capital Structure
Capital Structure Consolidated PSX 42% 40% 39% 30% 38% 34% 33% 27% 27.2 21.5 21.6 22.1 15.9 14.4 14.4 11.8 1.6 2.5 3.1 3.3 2019 2020 2021 1Q 2022 Equity $B Debt $B Cash & Cash Equivalents $B Debt-to-Capital Net Debt-to-Capital 16
Slide 17: 1Q 2022 Refining Margins – Market vs. Realized
1Q 2022 Refining Margins – Market vs. Realized ATLANTIC BASIN / EUROPE ($/BBL, UNLESS OTHERWISE NOTED) 0.11 Brent: $101.40 (1.57) (3.03) (2.47) 18.67 94% crude utilization 11.71 63% market capture 1Q 2022 Configuration Secondary Feedstock Other 1Q 2022 Market Products Realized 3:2:1 Margin Market 3:
Slide 18: 1Q 2022 Refining Margins – Market vs. Realized
1Q 2022 Refining Margins – Market vs. Realized GULF COAST ($/BBL, UNLESS OTHERWISE NOTED) LLS: $96.77 3.17 (4.24) (3.68) 94% crude utilization 20.34 (7.88) 7.71 38% market capture 1Q 2022 Configuration Secondary Feedstock Other 1Q 2022 Market Products Realized 3:2:1 Margin Market 3:2:1 - LLS / Gasol
Slide 19: 1Q 2022 Refining Margins – Market vs. Realized
1Q 2022 Refining Margins – Market vs. Realized CENTRAL CORRIDOR ($/BBL, UNLESS OTHERWISE NOTED) WTI: $94.49 4.82 (1.58) (5.28) 85% crude utilization 19.89 (9.96) 7.89 40% market capture 1Q 2022 Configuration Secondary Feedstock Other 1Q 2022 Market Products Realized 3:2:1 Margin Market 3:2:1 - WTI /
Slide 20: 1Q 2022 Refining Margins – Market vs. Realized
1Q 2022 Refining Margins – Market vs. Realized WEST COAST ($/BBL, UNLESS OTHERWISE NOTED) ANS: $95.61 (3.23) (4.16) (1.11) 81% crude utilization 32.04 (5.86) 17.68 55% market capture 1Q 2022 Configuration Secondary Feedstock Other 1Q 2022 Market Products Realized 3:2:1 Margin Market 3:2:1 - ANS / Lo
Slide 21: 1Q 2022 Adjusted Earnings
1Q 2022 Adjusted Earnings 1Q 2022 VS. 1Q 2021 ($MM) 1,166 26 2 (259) (9) 595 (509) 212 (34) 1Q 2021 Midstream Chemicals Refining Marketing Corporate Income Noncontrolling 1Q 2022 Adjusted & Specialties & Other Taxes Interests Adjusted Loss Earnings 242 396 140 316 (249) (175) (75) 1Q 2022 Adjusted P
Slide 22: 1Q 2022 Midstream Adjusted Pre-Tax Income
1Q 2022 Midstream Adjusted Pre-Tax Income 1Q 2022 VS. 1Q 2021 ($MM) 55 72 (3) (158) 276 242 1Q 2021 Transportation NGL & Other DCP NOVONIX 1Q 2022 Adjusted Midstream Adjusted Pre-Tax Income Pre-Tax Income 278 91 31 (158) 1Q 2022 22
Slide 23: 1Q 2022 Chemicals Adjusted Pre-Tax Income
1Q 2022 Chemicals Adjusted Pre-Tax Income 1Q 2022 VS. 1Q 2021 ($MM) 203 5 4 396 184 1Q 2021 Olefins & Specialties, Other 1Q 2022 Adjusted Polyolefins Aromatics & Adjusted Pre-Tax Income Styrenics Pre-Tax Income 377 32 (13) 1Q 2022 23
Slide 24: 1Q 2022 Refining Adjusted Pre-Tax Income
1Q 2022 Refining Adjusted Pre-Tax Income 1Q 2022 VS. 1Q 2021 ($MM) 497 140 106 268 (1,026) 295 1Q 2021 Atlantic Gulf Central West Coast 1Q 2022 Adjusted Basin / Coast Corridor Adjusted Pre-Tax Loss Europe Pre-Tax Income 143 21 (135) 111 1Q 2022 24
Slide 25: 1Q 2022 Marketing & Specialties Adjusted Pre-Tax Income
1Q 2022 Marketing & Specialties Adjusted Pre-Tax Income 1Q 2022 VS. 1Q 2021 ($MM) 34 (8) 316 290 1Q 2021 Marketing Specialties 1Q 2022 Adjusted & Other Adjusted Pre-Tax Income Pre-Tax Income 203 113 1Q 2022 25
Slide 26: 1Q 2022 Corporate & Other Adjusted Pre-Tax Loss
1Q 2022 Corporate & Other Adjusted Pre-Tax Loss 1Q 2022 VS. 1Q 2021 ($MM) Net Interest Corporate 1Q 2022 Expense Overhead Adjusted & Other Pre-Tax Loss (251) (249) 11 (9) 26
Slide 27: 1Q 2022 Corporate & Other Adjusted Pre-Tax Loss
1Q 2022 Corporate & Other Adjusted Pre-Tax Loss 1Q 2022 VS. 4Q 2021 ($MM) 4Q 2021 Net Interest Corporate 1Q 2022 Adjusted Expense Overhead Adjusted Pre-Tax Loss & Other Pre-Tax Loss (245) (249) 19 (23) 27
Slide 28: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2022 2021 1Q 4Q 1Q Phillips 66 Consolidated Earnings (Loss) $ 582 1,273 (654) Pre-Tax Adjustments: Impairments — — 198 Certain tax impacts — (11) — Pension settlement expense — 10 — Hurricane-related costs 17 34 — Winter-storm-related
Slide 29: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2022 2021 1Q 4Q 1Q Midstream Pre-Tax Income $ 242 593 76 Pre-Tax Adjustments: Impairments — — 198 Pension settlement expense — 1 — Hurricane-related costs — 4 — Winter-storm-related costs — — 2 1 Alliance shutdown-related costs — 70 —
Slide 30: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2022 2021 1Q 4Q 1Q Refining Pre-Tax Income (Loss) $ 123 346 (1,040) Pre-Tax Adjustments: Certain tax impacts — (11) — Pension settlement expense — 5 — Hurricane-related costs 17 30 — Winter-storm-related costs — — 14 Alliance shutdown-
Slide 31: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2022 2021 1Q 4Q 1Q Corporate & Other Pre-Tax Loss $ (249) (246) (251) Pre-Tax Adjustments: Pension settlement expense — 1 — Adjusted Pre-Tax Loss $ (249) (245) (251) 31
Slide 32: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2022 2021 1Q 4Q 1Q Midstream - Transportation Pre-Tax Income $ 278 203 7 Pre-Tax Adjustments: Impairments — — 198 Winter-storm-related costs — — 1 1 Alliance shutdown-related costs — 70 — Adjusted Pre-Tax Income $ 278 273 206 Midstream
Slide 33: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2022 2021 1Q 4Q 1Q Midstream - DCP Midstream Pre-Tax Income $ 31 111 34 Pre-Tax Adjustments: None — — — Adjusted Pre-Tax Income $ 31 111 34 Midstream - NOVONIX Pre-Tax Income (Loss) $ (158) 146 — Pre-Tax Adjustments: None — — — Adjuste
Slide 34: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2022 2021 1Q 4Q 1Q Chemicals - Olefins & Polyolefins Pre-Tax Income $ 377 416 145 Pre-Tax Adjustments: Pension settlement expense — 2 — Winter-storm-related costs — (13) 29 Adjusted Pre-Tax Income $ 377 405 174 Chemicals - Specialties,
Slide 35: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2022 2021 1Q 4Q 1Q Refining - Atlantic Basin / Europe Pre-Tax Income (Loss) $ 143 137 (153) Pre-Tax Adjustments: Certain tax impacts — (4) — Pension settlement expense — 1 Winter-storm-related costs — — 1 Regulatory compliance costs —
Slide 36: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2022 2021 1Q 4Q 1Q Refining - Central Corridor Pre-Tax Income (Loss) $ (135) 171 (248) Pre-Tax Adjustments: Pension settlement expense — 1 — Winter-storm-related costs — — 7 Regulatory compliance costs — (27) — Adjusted Pre-Tax Income
Slide 37: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2022 2021 1Q 4Q 1Q Marketing & Specialties - Marketing & Other Pre-Tax Income $ 203 401 211 Pre-Tax Adjustments: Pension settlement expense — 1 — Adjusted Pre-Tax Income $ 203 402 211 Marketing & Specialties - Specialties Pre-Tax Incom
Slide 38: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars (Except as Indicated) 1Q 2022 Atlantic Basin/ Central Europe Gulf Coast Corridor West Coast Worldwide Realized Refining Margins Income (loss) before income taxes $ 143 4 (135) 111 123 Plus: Taxes other than income taxes 19 27 18 24 88 Depreciation, amorti
Slide 39: Non-GAAP Reconciliations
Non-GAAP Reconciliations 1Q 2022 Numerator ($MM) Net Income $ 657 After-tax interest expense 107 GAAP ROCE earnings 764 After-tax special items 13 Adjusted ROCE earnings $ 777 Denominator ($MM) GAAP average capital employed1 $ 36,321 2022 Annualized GAAP ROCE 8% 2022 Annualized Adjusted ROCE 9% 39 1
Slide 40: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars (Except as Indicated) March 31, 2022 Total Debt $ 14,434 Total Equity 22,121 Debt-to-Capital Ratio 39 % Total Cash $ 3,335 Net Debt-to-Capital Ratio 33 % 40
Slide 41: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars 1Q 2022 Growth Sustaining Total Capital Expenditures and Investments Midstream $ 134 30 164 Refining 82 89 171 Marketing & Specialties 5 6 11 Corporate & Other — 24 24 Capital Expenditures and Investments $ 221 149 370 41
Slide 42: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2022 1Q Effective Tax Rates Income before income taxes $ 828 Special items 17 Adjusted income before income taxes $ 845 Income tax expense $ 171 Special items 4 Adjusted income tax expense $ 175 GAAP effective tax rate 20.7 % Adjusted