Phillips 66 · NYSE:PSX
Phillips 66 — Q1 2021 Earnings Presentation
41 slides from Phillips 66's earnings presentation, Apr 30, 2021
Slide 1: First Quarter 2021 Conference Call
Phillips 66 Branded Marketing Site HOUSTON, TX Phillips 66 Branded Marketing Site HOUSTON, TX First Quarter 2021 Conference Call April 30, 2021 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 San Francisco Refinery Fourth Dock at Beaumont Terminal RODEO, CA San Francisco Refinery RODEO, CA NEDERLAND, TX 3
Slide 4: 1Q 2021 Overview
1Q 2021 Overview Phillips 66 Branded Marketing Site HOUSTON, TX $MM (UNLESS OTHERWISE NOTED) Adjusted loss $ (509) Adjusted EPS1 (1.16) Operating cash flow 271 Capital expenditures and investments 331 Shareholder distributions2 394 Common shares outstanding at March 31 438 MM Phillips 66 Branded Mar
Slide 5: 1Q 2021 Adjusted Loss
1Q 2021 Adjusted Loss 1Q 2021 VS. 4Q 2020 ($MM) 4Q 2020 1Q 2021 Midstream Chemicals Refining Marketing Corporate Income Noncontrolling Adjusted Taxes Adjusted & Specialties & Other Interests Loss Loss (507) (509) 69 68 (16) 8 (65) (47) (19) 276 184 (1,026) 290 (251) 84 (66) 1Q 2021 Adjusted Pre-Tax
Slide 6: Midstream Adjusted Pre-Tax Income
1Q 2021 Midstream Adjusted Pre-Tax Income 1Q 2021 VS. 4Q 2020 ($MM) 10 Lower Transportation (50) (7) operating costs 323 NGL & Other impacted by 276 winter storms Record Freeport LPG export 4Q 2020 Transportation NGL DCP 1Q 2021 cargoes Adjusted & Other Midstream Adjusted Pre-Tax Income Pre-Tax Inco
Slide 7: Chemicals Adjusted Pre-Tax Income
1Q 2021 Chemicals Adjusted Pre-Tax Income 1Q 2021 VS. 4Q 2020 ($MM) O&P impacted by winter 9 14 storms (42) 203 79% O&P utilization 184 Improved margins in SA&S 4Q 2020 Olefins & Specialties, Other 1Q 2021 Adjusted Polyolefins Aromatics & Adjusted Pre-Tax Income Styrenics Pre-Tax Income 174 27 (17)
Slide 8: Refining Adjusted Pre-Tax Loss
1Q 2021 Refining Adjusted Pre-Tax Loss 1Q 2021 VS. 4Q 2020 ($MM) 4Q 2020 Atlantic Gulf Central West 1Q 2021 Adjusted Basin / Coast Corridor Coast Adjusted Pre-Tax Loss Europe Pre-Tax Loss 74% crude utilization 82% clean product yield (1,094) (1,026) $4.36/BBL realized margin 195 $192 MM turnaround c
Slide 9: Refining Margins – Market vs. Realized
1Q 2021 Refining Margins – Market vs. Realized WORLDWIDE REFINING ($/BBL, UNLESS OTHERWISE NOTED) (2.71) (1.29) (0.09) 13.23 (4.78) 4.36 1Q 2021 Configuration Secondary Products Feedstock Other 1Q 2021 Market Realized 3:2:1 Margin Avg Market Crude: $59.82 33% Market Capture 9
Slide 10: Marketing & Specialties Adjusted Pre-Tax Income
1Q 2021 Marketing & Specialties Adjusted Pre-Tax Income 1Q 2021 VS. 4Q 2020 ($MM) 39 Higher domestic marketing 30 margins Refined product exports of 290 204 MBPD 221 Strong Lubricants margins 4Q 2020 Marketing Specialties 1Q 2021 Adjusted & Other Adjusted Pre-Tax Income Pre-Tax Income 211 79 1Q 2021
Slide 11: Corporate & Other Adjusted Pre-Tax Loss
1Q 2021 Corporate & Other Adjusted Pre-Tax Loss 1Q 2021 VS. 4Q 2020 ($MM) 4Q 2020 Net Interest Corporate 1Q 2021 Adjusted Expense Overhead Adjusted Pre-Tax Loss & Other Pre-Tax Loss (235) (251) (6) (10) 11
Slide 12: Cash Flow
1Q 2021 Cash Flow $B 0.3 (0.5) (0.3) (0.4) 2.5 (0.2) 1.4 December 31, CFO Debt Capital Shareholder Other March 31, 2020 Expenditures Distributions 2021 Cash & Investments Cash Balance 1 Balance 1 12 1) Includes cash and cash equivalents
Slide 13: Outlook
Outlook South Texas Gateway Terminal INGLESIDE, TX Denver Terminal DENVER, CO 2Q 2021 Global Olefins & Polyolefins utilization Mid-90% Refining crude utilization Market Conditions Refining turnaround expenses (pre-tax) $110 MM – $140 MM Corporate & Other costs (pre-tax) $240 MM – $250 MM 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: 2021 Estimated Sensitivities
2021 Estimated Sensitivities Annual EBITDA $MM Midstream - DCP (net to Phillips 66) 10¢/Gal Increase in NGL price 14 Chemicals - CPChem (net to Phillips 66) 1¢/Lb Increase in Chain Margin (Ethylene, Polyethylene, NAO) 65 Worldwide Refining $1/BBL Increase in Gasoline Margin 350 $1/BBL Increase in Di
Slide 17: Capital Structure
Capital Structure Consolidated PSX Excluding PSXP 42% 43% 39% 39% 41% 29% 30% 38% 36% 25% 25% 33% 27% 23% 22% 17% 27.2 27.2 24.7 24.9 21.5 20.5 19.0 18.0 15.9 15.4 11.2 11.8 12.0 11.5 8.1 8.2 1.3 3.0 1.6 2.5 1.4 3.0 2.5 1.3 2018 2019 2020 1Q 2018 2019 2020 1Q 2021 2021 Equity $B Debt $B Cash & Cash
Slide 18: Refining Margins – Atlantic Basin / Europe
1Q 2021 Refining Margins – Market vs. Realized ATLANTIC BASIN / EUROPE ($/BBL, UNLESS OTHERWISE NOTED) (1.97) (0.19) Brent: $60.90 (1.65) 11.85 82% crude utilization (3.18) 4.86 41% market capture 1Q 2021 Configuration Secondary Feedstock Other 1Q 2021 Market Products Realized 3:2:1 Margin Market 3:
Slide 19: Refining Margins – Gulf Coast
1Q 2021 Refining Margins – Market vs. Realized GULF COAST ($/BBL, UNLESS OTHERWISE NOTED) LLS: $59.98 (3.46) (1.25) (0.37) 11.25 71% crude utilization (2.78) 3.39 30% market capture 1Q 2021 Configuration Secondary Feedstock Other 1Q 2021 Market Products Realized 3:2:1 Margin Market 3:2:1 - LLS / Gas
Slide 20: Refining Margins – Central Corridor
1Q 2021 Refining Margins – Market vs. Realized CENTRAL CORRIDOR ($/BBL, UNLESS OTHERWISE NOTED) 1.75 (2.04) WTI: $57.84 (2.28) 15.68 72% crude utilization (7.14) 5.97 38% market capture 1Q 2021 Configuration Secondary Feedstock Other 1Q 2021 Market Products Realized 3:2:1 Margin Market 3:2:1 - WTI /
Slide 21: Refining Margins – West Coast
1Q 2021 Refining Margins – Market vs. Realized WEST COAST ($/BBL, UNLESS OTHERWISE NOTED) (2.47) 0.88 ANS: $60.76 (1.94) 15.97 74% crude utilization (9.11) 3.33 21% market capture 1Q 2021 Configuration Secondary Feedstock Other 1Q 2021 Market Products Realized 3:2:1 Margin Market 3:2:1 - ANS / Los A
Slide 22: 1Q 2021 Adjusted Loss vs. 1Q 2020
1Q 2021 Adjusted Loss 1Q 2021 VS. 1Q 2020 ($MM) 450 (184) (9) (509) (625) 108 3 (198) (54) 1Q 2020 Midstream Chemicals Refining Marketing Corporate Income Noncontrolling 1Q 2021 Adjusted & Specialties & Other Taxes Interests Adjusted Earnings Loss 276 184 (1,026) 290 (251) 84 (66) 1Q 2021 Adjusted P
Slide 23: Midstream Adjusted Pre-Tax Income vs. 1Q 2020
1Q 2021 Midstream Adjusted Pre-Tax Income 1Q 2021 VS. 1Q 2020 ($MM) 6 (143) (47) 460 276 1Q 2020 Transportation NGL & Other DCP 1Q 2021 Adjusted Midstream Adjusted Pre-Tax Income 206 36 34 Pre-Tax Income 1Q 2021 23
Slide 24: Chemicals Adjusted Pre-Tax Income vs. 1Q 2020
1Q 2021 Chemicals Adjusted Pre-Tax Income 1Q 2021 VS. 1Q 2020 ($MM) 15 (5) (19) 193 184 1Q 2020 Olefins & Specialties, Other 1Q 2021 Adjusted Polyolefins Aromatics & Adjusted Pre-Tax Income Styrenics Pre-Tax Income 174 27 (17) 1Q 2021 24
Slide 25: Refining Adjusted Pre-Tax Loss vs. 1Q 2020
1Q 2021 Refining Adjusted Pre-Tax Loss 1Q 2021 VS. 1Q 2020 ($MM) (401) 44 (74) (1,026) (464) (131) 1Q 2020 Atlantic Gulf Central West Coast 1Q 2021 Adjusted Basin / Coast Corridor Adjusted Pre-Tax Loss Europe Pre-Tax Loss (152) (247) (241) (386) 1Q 2021 25
Slide 26: Marketing & Specialties vs. 1Q 2020
1Q 2021 Marketing & Specialties Adjusted Pre-Tax Income 1Q 2021 VS. 1Q 2020 ($MM) 25 488 (223) 290 1Q 2020 Marketing Specialties 1Q 2021 Adjusted & Other Adjusted Pre-Tax Income Pre-Tax Income 211 79 1Q 2021 26
Slide 27: Corporate & Other Adjusted Pre-Tax Loss vs. 1Q 2020
1Q 2021 Corporate & Other Adjusted Pre-Tax Loss 1Q 2021 VS. 1Q 2020 ($MM) 1Q 2020 Net Interest Corporate 1Q 2021 Adjusted Expense Overhead Adjusted Pre-Tax Loss & Other Pre-Tax Loss (197) (251) (40) (14) 27
Slide 28: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2021 2020 1Q 4Q 1Q Phillips 66 Consolidated Loss $ (654) (539) (2,496) Pre-Tax Adjustments: Pending claims and settlements — — (37) Pension settlement expense — 26 — Impairments 198 96 3,006 Certain tax impacts — (6) — Asset dispositio
Slide 29: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2021 2020 1Q 4Q 1Q Midstream Pre-Tax Income (Loss) $ 76 223 (702) Pre-Tax Adjustments: Pension settlement expense — 1 — Lower-of-cost-or-market inventory adjustments — — 1 Hurricane-related costs — 3 — Winter-storm-related costs 2 — —
Slide 30: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2021 2020 1Q 4Q 1Q Refining Pre-Tax Income Loss $ (1,040) (1,113) (2,261) Pre-Tax Adjustments: Certain tax impacts — (6) — Pension settlement expense — 3 — Hurricane-related costs — 22 — Winter-storm-related costs 14 — — Impairments —
Slide 31: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2021 2020 1Q 4Q 1Q Corporate & Other Pre-Tax Loss $ (251) (226) (197) Pre-Tax Adjustments: Asset dispositions — (9) — Adjusted Pre-Tax Loss $ (251) (235) (197) 31
Slide 32: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2021 2020 1Q 4Q 1Q Midstream - Transportation Pre-Tax Income $ 7 97 200 Pre-Tax Adjustments: Impairments 198 96 — Hurricane-related costs — 3 — Winter-storm-related costs 1 — — Adjusted Pre-Tax Income $ 206 196 200 Midstream - NGL & Ot
Slide 33: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2021 2020 1Q 4Q 1Q Chemicals - Olefins & Polyolefins Pre-Tax Income $ 145 204 177 Pre-Tax Adjustments: Pension settlement expense — 18 — Hurricane-related costs — 1 — Winter-storm-related costs 29 — — Lower-of-cost-or-market inventory
Slide 34: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2021 2020 1Q 4Q 1Q Refining - Atlantic Basin / Europe Pre-Tax Loss $ (153) (161) (637) Pre-Tax Adjustments: Certain tax impacts — (6) — Impairments — — 441 Winter-storm-related costs 1 — — Pension settlement expense — 1 — Adjusted Pre-
Slide 35: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2021 2020 1Q 4Q 1Q Refining - Central Corridor Pre-Tax Loss $ (248) (178) (227) Pre-Tax Adjustments: Lower-of-cost-or-market inventory adjustments — — 15 Impairments — — 435 Winter-storm-related costs 7 — — Pension settlement expense —
Slide 36: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2021 2020 1Q 4Q 1Q Marketing & Specialties - Marketing & Other Pre-Tax Income $ 211 180 471 Pre-Tax Adjustments: Pension settlement expense — 1 — Pending claims and settlements — — (37) Adjusted Pre-Tax Income $ 211 181 434 Marketing &
Slide 37: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars (Except as Indicated) 1Q 2021 Atlantic Basin/ Central Europe Gulf Coast Corridor West Coast Worldwide Realized Refining Margins Loss before income taxes $ (153) (253) (248) (386) (1,040) Plus: Taxes other than income taxes 20 27 15 23 85 Depreciation, amo
Slide 38: Non-GAAP Reconciliations
Non-GAAP Reconciliations 1Q 2021 Numerator ($MM) Net Loss $ (639) After-tax interest expense 115 GAAP ROCE loss (524) After-tax special items 196 Adjusted ROCE earnings $ (328) Denominator ($MM) GAAP average capital employed1 $ 36,648 2021 Annualized GAAP ROCE (6)% 2021 Annualized Adjusted ROCE (4)%
Slide 39: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars (Except as Indicated) Mar. 31, 2021 Phillips 66 Phillips 66 Phillips 66 Excluding Consolidated Partners1 Phillips 66 Partners Total Debt $ 15,422 3,944 11,478 Total Equity 20,457 2,447 18,010 Debt-to-Capital Ratio 43 % 39 % Total Cash $ 1,351 3 1,348 Net
Slide 40: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars 1Q 2021 Growth Sustaining Total Capital Expenditures and Investments Midstream $ 80 20 100 Refining 77 107 184 Marketing & Specialties 16 6 22 Corporate & Other 1 24 25 Adjusted Capital Spending 174 157 331 Capital Expenditures and Investments Funded by C
Slide 41: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2021 1Q Effective Tax Rates Loss before income taxes $ (771) Special items 244 Adjusted loss before income taxes $ (527) Income tax benefit $ (132) Special items 48 Adjusted income tax benefit $ (84) GAAP effective tax rate 17.1 % Adju