Slide 1: Third Quarter 2020 Conference Call
Sweeny Fractionator 3 OLD OCEAN, TX THIRD QUARTER 2020 CONFERENCE CALL October 30, 2020 Third Quarter 2020 Conference Call 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 RODEO, CA Third Quarter 2020 Conference Call 3
Slide 4: 3Q 2020 Overview
3Q 2020 Overview $MM (UNLESS OTHERWISE NOTED) Freeport Marine Terminal FREEPORT, TX Adjusted loss $ (1) Adjusted EPS1 (0.01) Operating cash flow excluding working capital2 795 Adjusted capital spending3 549 Shareholder distributions4 393 Common shares outstanding at Sept. 30 437 MM 1) Dollars per sh
Slide 5: 3Q 2020 Adjusted Loss
3Q 2020 Adjusted Loss 3Q 2020 VS. 2Q 2020 ($MM) 2Q 2020 Midstream Chemicals Refining Marketing Corporate Income Noncontrolling 3Q 2020 Adjusted & Specialties & Other Taxes Interests Adjusted Loss Loss 162 (23) (1) 124 11 (324) 43 109 (103) 354 132 (970) 417 (213) 352 (73) 3Q 2020 Adjusted Pre-Tax In
Slide 6: Midstream Adjusted Pre-Tax Income
3Q 2020 Midstream Adjusted Pre-Tax Income 3Q 2020 VS. 2Q 2020 ($MM) Higher pipeline and terminal 19 18 volumes 72 Ramp-up of volumes on Gray Oak Pipeline 354 245 Recently started operations of Sweeny Fracs 2 and 3 2Q 2020 Transportation NGL & DCP 3Q 2020 Adjusted Other Midstream Adjusted Pre-Tax Inc
Slide 7: Chemicals Adjusted Pre-Tax Income
3Q 2020 Chemicals Adjusted Pre-Tax Income 3Q 2020 VS. 2Q 2020 ($MM) Higher polyethylene 42 7 margins (6) 94% O&P utilization 132 89 Recently announced first U.S. commercial-scale polyethylene production from recycled plastics 2Q 2020 Olefins & Specialties, Other 3Q 2020 Adjusted Polyolefins Aromatic
Slide 8: Refining Adjusted Pre-Tax Loss
3Q 2020 Refining Adjusted Pre-Tax Loss 3Q 2020 VS. 2Q 2020 ($MM) 2Q 2020 Atlantic Gulf Central West 3Q 2020 Adjusted Basin / Coast Corridor Coast Adjusted Pre-Tax Loss Europe Pre-Tax Loss 77% crude utilization 85% clean product yield (867) (970) $1.78/BBL realized margin $41 MM turnaround costs 23 (
Slide 9: Refining Margins – Market vs. Realized
3Q 2020 Refining Margins – Market vs. Realized WORLDWIDE REFINING ($/BBL, UNLESS OTHERWISE NOTED) (1.47) (1.80) 8.17 (0.35) (2.77) 1.78 3Q 2020 Configuration Secondary Feedstock Other 3Q 2020 Market Products Realized 3:2:1 Margin Avg Market Crude: $42.26 22% Market Capture Third Quarter 2020 Confere
Slide 10: Marketing & Specialties Adjusted Pre-Tax Income
3Q 2020 Marketing & Specialties Adjusted Pre-Tax Income 3Q 2020 VS. 2Q 2020 ($MM) Higher global marketing 17 107 margins and volumes Reimaged 315 branded sites worldwide 417 293 Refined product exports of 139 MBPD 2Q 2020 Marketing Specialties 3Q 2020 Adjusted & Other Adjusted Pre-Tax Income Pre-Tax
Slide 11: Corporate & Other Adjusted Pre-Tax Loss
3Q 2020 Corporate & Other Adjusted Pre-Tax Loss 3Q 2020 VS. 2Q 2020 ($MM) 2Q 2020 Net Interest Corporate 3Q 2020 Adjusted Expense Overhead Adjusted Pre-Tax Loss & Other Pre-Tax Loss (224) (213) 20 (9) Third Quarter 2020 Conference Call 11
Slide 12: Cash Flow
3Q 2020 Cash Flow $B 0.8 0.1 (0.3) (0.5) (0.4) (0.1) 1.9 1.5 June 30, CFO Working Debt Adjusted Shareholder Other September 30, 2020 (excluding Capital Capital Distributions 2020 Cash Working Spending2 Cash Balance1 Capital) Balance1 1) Includes cash and cash equivalents Third Quarter 2020 Conferenc
Slide 13: 4Q 2020 Outlook
4Q 2020 Outlook Albuquerque International Balloon Fiesta ALBUQUERQUE, NM Global Olefins & Polyolefins utilization Mid-90% Refining crude utilization Market Conditions Refining turnaround expenses (pre-tax) $80 MM – $100 MM Corporate & Other costs (pre-tax) $220 MM – $230 MM Third Quarter 2020 Confer
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: 2020 Estimated Sensitivities
2020 Estimated Sensitivities Annual EBITDA $MM Midstream - DCP (net to Phillips 66) 10¢/Gal Increase in NGL price 9 10¢/MMBtu Increase in Natural Gas price 2 $1/BBL Increase in WTI price 1 Chemicals - CPChem (net to Phillips 66) 1¢/Lb Increase in Chain Margin (Ethylene, Polyethylene, NAO) 65 Worldwi
Slide 17: YTD 2020 Cash Flow
YTD 2020 Cash Flow $B 2.8 2.2 (2.4) (0.7) (1.6) (0.4) 1.6 1.5 December 31, CFO Working Debt Adjusted Shareholder Other September 30, 2019 (excluding Capital Capital Distributions 2020 Cash Working Spending2 Cash Balance1 Capital) Balance1 1) Includes cash and cash equivalents Third Quarter 2020 Conf
Slide 18: Capital Structure
Capital Structure Consolidated PSX Excluding PSXP 38% 39% 35% 34% 35% 30% 37% 31% 29% 35% 27% 33% 25% 25% 32% 22% 30% 27% 28% 23% 22% 20% 17% 14% 27.4 27.2 27.2 23.6 23.3 25.1 24.7 24.9 22.3 21.4 20.7 19.8 13.0 14.4 14.5 10.1 11.2 11.8 10.7 10.7 8.1 8.2 9.4 1.2 1.5 7.2 1.3 1.1 1.5 3.1 3.0 1.6 1.9 2.
Slide 19: Refining Margins – Atlantic Basin / Europe
3Q 2020 Refining Margins – Market vs. Realized ATLANTIC BASIN / EUROPE ($/BBL, UNLESS OTHERWISE NOTED) Brent: $43.00 (1.96) (0.45) 81% crude utilization 8.74 (2.81) (1.87) 1.65 19% market capture 3Q 2020 Configuration Secondary Feedstock Other 3Q 2020 Market Products Realized 3:2:1 Margin Market 3:2
Slide 20: Refining Margins – Gulf Coast
3Q 2020 Refining Margins – Market vs. Realized GULF COAST ($/BBL, UNLESS OTHERWISE NOTED) LLS: $42.46 (1.33) 1.08 5.95 66% crude utilization (2.67) (0.61) (10)% market capture (3.64) 3Q 2020 Configuration Secondary Feedstock Other 3Q 2020 Market Products Realized 3:2:1 Margin Market 3:2:1 - LLS / Ga
Slide 21: Refining Margins – Central Corridor
3Q 2020 Refining Margins – Market vs. Realized CENTRAL CORRIDOR ($/BBL, UNLESS OTHERWISE NOTED) WTI: $40.91 (0.92) 0.69 (1.85) 86% crude utilization 8.29 (1.75) 4.46 54% market capture 3Q 2020 Configuration Secondary Feedstock Other 3Q 2020 Market Products Realized 3:2:1 Margin Market 3:2:1 - WTI /
Slide 22: Refining Margins – West Coast
3Q 2020 Refining Margins – Market vs. Realized WEST COAST ($/BBL, UNLESS OTHERWISE NOTED) ANS: $42.74 (1.74) (2.25) (0.83) 85% crude utilization 11.86 (4.81) 2.23 19% market capture 3Q 2020 Configuration Secondary Feedstock Other 3Q 2020 Market Products Realized 3:2:1 Margin Market 3:2:1 - ANS / Los
Slide 23: 3Q 2020 vs. 3Q 2019 Adjusted Loss
3Q 2020 Adjusted Loss 3Q 2020 VS. 3Q 2019 ($MM) (86) (137) 1,402 737 8 (1) (1,809) (81) (35) 3Q 2019 Midstream Chemicals Refining Marketing Corporate Income Noncontrolling 3Q 2020 Adjusted & Specialties & Other Taxes Interests Adjusted Earnings Loss 354 132 (970) 417 (213) 352 (73) 3Q 2020 Adjusted
Slide 24: Midstream Adjusted Pre-Tax Income vs. 3Q 2019
3Q 2020 Midstream Adjusted Pre-Tax Income 3Q 2020 VS. 3Q 2019 ($MM) (46) 27 (67) 440 354 3Q 2019 Transportation NGL & Other DCP 3Q 2020 Adjusted Midstream Adjusted Pre-Tax Income Pre-Tax Income 202 102 50 3Q 2020 Third Quarter 2020 Conference Call 24
Slide 25: Chemicals Adjusted Pre-Tax Income vs. 3Q 2019
3Q 2020 Chemicals Adjusted Pre-Tax Income 3Q 2020 VS. 3Q 2019 ($MM) (103) 269 (31) (3) 132 3Q 2019 Olefins & Specialties, Other 3Q 2020 Adjusted Polyolefins Aromatics & Adjusted Pre-Tax Income Styrenics Pre-Tax Income 148 5 (21) 3Q 2020 Third Quarter 2020 Conference Call 25
Slide 26: Refining Adjusted Pre-Tax Loss vs. 3Q 2019
3Q 2020 Refining Adjusted Pre-Tax Loss 3Q 2020 VS. 3Q 2019 ($MM) 839 (476) (573) (970) (537) (223) 3Q 2019 Atlantic Gulf Central West Coast 3Q 2020 Adjusted Basin / Coast Corridor Adjusted Pre-Tax Income Europe Pre-Tax Loss (197) (389) (129) (255) 3Q 2020 Third Quarter 2020 Conference Call 26
Slide 27: Marketing & Specialties Adjusted Pre-Tax Income vs. 3Q 2019
3Q 2020 Marketing & Specialties Adjusted Pre-Tax Income 3Q 2020 VS. 3Q 2019 ($MM) (74) (7) 498 417 3Q 2019 Marketing Specialties 3Q 2020 Adjusted & Other Adjusted Pre-Tax Income Pre-Tax Income 366 51 3Q 2020 Third Quarter 2020 Conference Call 27
Slide 28: Corporate & Other Adjusted Pre-Tax Loss vs. 3Q 2019
3Q 2020 Corporate & Other Adjusted Pre-Tax Loss 3Q 2020 VS. 3Q 2019 ($MM) 3Q 2019 Net Interest Corporate 3Q 2020 Adjusted Expense Overhead Adjusted Pre-Tax Loss & Other Pre-Tax Loss (178) (213) (33) (2) Third Quarter 2020 Conference Call 28
Slide 29: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2020 2019 Sep YTD 3Q 2Q Sep YTD 3Q Phillips 66 Consolidated Earnings (Loss) $ (3,436) (799) (141) 2,340 712 Pre-Tax Adjustments: Pending claims and settlements (37) — — (21) — Pension settlement expense 55 17 38 — — Impairments 4,145 1
Slide 30: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2020 2019 Sep YTD 3Q 2Q Sep YTD 3Q Midstream Pre-Tax Income (Loss) $ (232) 146 324 279 (460) Pre-Tax Adjustments: Pension settlement expense 8 3 5 — — Lower-of-cost-or-market inventory adjustments 1 — — — — Hurricane-related costs 1 1
Slide 31: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2020 2019 Sep YTD 3Q 2Q Sep YTD 3Q Refining Pre-Tax Income (Loss) $ (5,042) (1,903) (878) 1,641 856 Pre-Tax Adjustments: Pending claims and settlements — — — (21) — Asset dispositions — — — (17) (17) Pension settlement expense 38 12 26
Slide 32: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2020 2019 Sep YTD 3Q 2Q Sep YTD 3Q Corporate & Other Pre-Tax Loss $ (655) (239) (219) (593) (178) Pre-Tax Adjustments: Pension settlement expense 4 1 3 — — Impairments 25 25 — — — Certain tax impacts (8) — (8) — — Adjusted Pre-Tax Loss
Slide 33: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2020 2019 Sep YTD 3Q 2Q Sep YTD 3Q Midstream - Transportation Pre-Tax Income (Loss) $ 411 (3) 214 696 248 Pre-Tax Adjustments: Impairments 204 204 — — — Hurricane-related costs 1 1 — — — Asset dispositions (84) — (84) — — Adjusted Pre-
Slide 34: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2020 2019 Sep YTD 3Q 2Q Sep YTD 3Q Chemicals - Olefins & Polyolefins Pre-Tax Income $ 488 241 70 688 209 Pre-Tax Adjustments: Lower-of-cost-or-market inventory adjustments (58) (95) 21 42 42 Hurricane-related costs 2 2 — — — Impairment
Slide 35: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2020 2019 Sep YTD 3Q 2Q Sep YTD 3Q Refining - Atlantic Basin / Europe Pre-Tax Income (Loss) $ (1,063) (199) (227) 547 296 Pre-Tax Adjustments: Impairments 441 — — — — Asset dispositions — — — (17) (17) Pension settlement expense 9 2 7
Slide 36: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2020 2019 Sep YTD 3Q 2Q Sep YTD 3Q Refining - Central Corridor Pre-Tax Income (Loss) $ (463) (132) (104) 1,005 408 Pre-Tax Adjustments: Pending claims and settlements — — — (21) — Lower-of-cost-or-market inventory adjustments — — (15)
Slide 37: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2020 2019 Sep YTD 3Q 2Q Sep YTD 3Q Marketing & Specialties - Marketing & Other Pre-Tax Income $ 1,091 365 255 872 440 Pre-Tax Adjustments: Pension settlement expense 5 1 4 — — Pending claims and settlements (37) — — — — Adjusted Pre-Ta
Slide 38: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars (Except as Indicated) 3Q 2020 Atlantic Basin/ Central Europe Gulf Coast Corridor West Coast Worldwide Realized Refining Margins Loss before income taxes $ (199) (405) (132) (1,167) (1,903) Plus: Taxes other than income taxes 14 30 11 16 71 Depreciation, a
Slide 39: Non-GAAP Reconciliations
Non-GAAP Reconciliations 2020 Sept. YTD Numerator ($MM) Net Loss $ (3,220) After-tax interest expense 285 GAAP ROCE loss (2,935) After-tax special items 3,537 Adjusted ROCE earnings $ 602 Denominator ($MM) GAAP average capital employed1 $ 37,881 2020 Annualized GAAP ROCE (10)% 2020 Annualized Adjust
Slide 40: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars (Except as Indicated) Sept. 30, 2020 Phillips 66 Phillips 66 Phillips 66 Excluding Consolidated Partners1 Phillips 66 Partners Total Debt $ 14,526 3,783 10,743 Total Equity 22,305 2,549 19,756 Debt-to-Capital Ratio 39 % 35 % Total Cash $ 1,462 2 1,460 Net
Slide 41: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Millions of Dollars 3Q 2020 2020 Sept. YTD Growth Sustaining Total Growth Sustaining Total Capital Expenditures and Investments Midstream $ 266 49 315 $ 1,338 154 1,492 Refining 69 99 168 234 343 577 Marketing & Specialties 11 17 28 100 39 139 Corporate &
Slide 42: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 3Q 2020 Effective Tax Rates Loss before income taxes $ (1,350) Special items 1,070 Adjusted loss before income taxes $ (280) Income tax benefit $ (624) Special items 272 Adjusted income tax benefit $ (352) GAAP effective tax rate 46.2