Slide 1: Fourth Quarter 2021 Conference Call
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 Fourth Quarter 2021 Conference Call January 28, 2022 Sweeny Frac 4 OLD OLD 1 SweenyTX OCEAN, South Texas Gateway Frac 4 Term
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 SWEENY/OLD OCEAN, TX Organic Solar Cells at Phillips 66 Research Center Sweeny BARTLESVILLE, SouthUnit Ethylene OK Texas Gateway Terminal CPChem Cedar Bayou Facility SWEENY/OLD OCEAN, TX INGLESIDE, TX BAYTOWN, TX 3
Slide 4: 2021 Overview
2021 Overview $MM (UNLESS OTHERWISE NOTED) Sweeny Fractionator 3 OLD OCEAN, TX Adjusted income $ 2,521 Adjusted EPS1 5.70 Operating cash flow 6,017 Capital expenditures and investments 1,860 Shareholder distributions2 1,585 Net debt-to-capital ratio 34 % Renewable Diesel Fuel Pump Dispenser Renewabl
Slide 5: YTD 2021 Cash Flow
YTD 2021 Cash Flow $B 2.1 3.9 (1.5) (1.9) (1.6) (0.4) 3.1 2.5 December 31, CFO Working Debt Capital Shareholder Other December 31, 2020 (excluding Capital Expenditures Distributions 2021 Cash Working & Investments Cash 1 1 Balance Capital) Balance 5 1) Includes cash and cash equivalents
Slide 6: 4Q 2021 Overview
4Q 2021 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 Adjusted earnings $ 1,298 Adjusted EPS1 2.94 Operating cash flow 1,800 Capital e
Slide 7: 4Q 2021 Adjusted Earnings
4Q 2021 Adjusted Earnings 4Q 2021 VS. 3Q 2021 ($MM) 3Q 2021 4Q 2021 Midstream Chemicals Refining Marketing Corporate Income Noncontrolling Adjusted Taxes Adjusted & Specialties & Other Interests Earnings Earnings 26 220 (48) (15) (68) (10) (210) 1,403 1,298 668 424 404 499 (245) (354) (98) 4Q 2021 A
Slide 8: 4Q 2021 Midstream Adjusted Pre-Tax Income
4Q 2021 Midstream Adjusted Pre-Tax Income 4Q 2021 VS. 3Q 2021 ($MM) 19 80 Record adjusted earnings (73) 642 668 Record volumes at Sweeny Hub NOVONIX investment gain of $146 MM 3Q 2021 Transportation NGL DCP 4Q 2021 Adjusted & Other Midstream Adjusted Pre-Tax Income Pre-Tax Income 273 284 111 4Q 2021
Slide 9: 4Q 2021 Chemicals Adjusted Pre-Tax Income
4Q 2021 Chemicals Adjusted Pre-Tax Income 4Q 2021 VS. 3Q 2021 ($MM) Lower O&P margins (208) (1) (1) 97% O&P utilization 634 424 CPChem distributions of $479 MM in 4Q; $1.6 B in 2021 3Q 2021 Olefins & Specialties, Other 4Q 2021 Adjusted Polyolefins Aromatics & Adjusted Pre-Tax Income Styrenics Pre-Ta
Slide 10: 4Q 2021 Refining Adjusted Pre-Tax Income
4Q 2021 Refining Adjusted Pre-Tax Income 4Q 2021 VS. 3Q 2021 ($MM) 3Q 2021 Atlantic Gulf Central West 4Q 2021 Adjusted Basin / Coast Corridor Coast Adjusted Pre-Tax Income Europe Pre-Tax Income 90% crude utilization 175 86% clean product yield 111 $11.60/BBL realized margin 21 (87) 404 $106 MM turna
Slide 11: 4Q 2021 Refining Margins – Market vs. Realized
4Q 2021 Refining Margins – Market vs. Realized WORLDWIDE REFINING ($/BBL, UNLESS OTHERWISE NOTED) (2.61) 0.18 (1.88) (2.02) 17.93 11.60 4Q 2021 Configuration Secondary Products Feedstock Other 4Q 2021 Market Realized 3:2:1 Margin Avg Market Crude: $78.73 65% Market Capture 11
Slide 12: 4Q 2021 Marketing & Specialties Adjusted Pre-Tax Income
4Q 2021 Marketing & Specialties Adjusted Pre-Tax Income 4Q 2021 VS. 3Q 2021 ($MM) Lower fuel margins and 4 volumes (52) Completed investments supporting product placement strategy 547 499 Converted retail sites for renewable diesel sales Refined product exports of 3Q 2021 Marketing Specialties 4Q 20
Slide 13: 4Q 2021 Corporate & Other Adjusted Pre-Tax Loss
4Q 2021 Corporate & Other Adjusted Pre-Tax Loss 4Q 2021 VS. 3Q 2021 ($MM) 3Q 2021 Net Interest Corporate 4Q 2021 Adjusted Expense Overhead Adjusted Pre-Tax Loss & Other Pre-Tax Loss (230) (245) (3) (12) 13
Slide 14: 4Q 2021 Cash Flow
4Q 2021 Cash Flow $B 0.4 1.4 (0.5) (0.6) (0.4) (0.1) 2.9 3.1 September 30, CFO Working Debt Capital Shareholder Other December 31, 2021 (excluding Capital Expenditures Distributions 2021 Cash 1 Working & Investments Cash 1 Balance Capital) Balance 14 1) Includes cash and cash equivalents
Slide 15: Outlook
Outlook South Texas Gateway Terminal INGLESIDE, TX Denver Terminal DENVER, CO 1Q 2022 Global Olefins & Polyolefins utilization Mid-90% Refining crude utilization High-80% Refining turnaround expenses (pre-tax) $120 MM – $150 MM Corporate & Other costs (pre-tax) $230 MM – $250 MM 2022 Refining turnar
Slide 16: Questions and Answers
Phillips 66 Branded Marketing Site ST. LOUIS, MO Questions and Answers
Slide 17: Appendix
Phillips 66 Branded Marketing Site ST. LOUIS, MO Appendix
Slide 18: 2022 Estimated Sensitivities
2022 Estimated Sensitivities 18 Sensitivities shown above are independent and are only valid within a limited price range
Slide 19: Capital Structure
Capital Structure Consolidated PSX 42% 43% 43% 42% 40% 41% 30% 38% 39% 37% 34% 27% 27.2 21.5 20.5 20.6 20.6 21.6 15.9 15.4 15.4 14.9 14.4 11.8 1.6 2.5 2.2 2.9 3.1 1.4 2019 2020 1Q 2Q 3Q 4Q 2021 2021 2021 2021 Equity $B Debt $B Cash & Cash Equivalents $B Debt-to-Capital Net Debt-to-Capital 19
Slide 20: 4Q 2021 Refining Margins – Market vs. Realized (Atlantic Basin/Europe)
4Q 2021 Refining Margins – Market vs. Realized ATLANTIC BASIN / EUROPE ($/BBL, UNLESS OTHERWISE NOTED) 0.74 Brent: $79.73 (3.20) (2.73) (2.38) 18.57 89% crude utilization 11.00 59% market capture 4Q 2021 Configuration Secondary Feedstock Other 4Q 2021 Market Products Realized 3:2:1 Margin Market 3:2
Slide 21: 4Q 2021 Refining Margins – Market vs. Realized (Gulf Coast)
4Q 2021 Refining Margins – Market vs. Realized GULF COAST ($/BBL, UNLESS OTHERWISE NOTED) LLS: $78.40 1.66 (3.44) (2.25) 16.13 (2.91) 95% crude utilization 9.19 57% market capture 4Q 2021 Configuration Secondary Feedstock Other 4Q 2021 Market Products Realized 3:2:1 Margin Market 3:2:1 - LLS / Gasol
Slide 22: 4Q 2021 Refining Margins – Market vs. Realized (Central Corridor)
4Q 2021 Refining Margins – Market vs. Realized CENTRAL CORRIDOR ($/BBL, UNLESS OTHERWISE NOTED) WTI: $77.35 (1.08) 1.83 (0.74) (3.23) 95% crude utilization 15.82 12.60 80% market capture 4Q 2021 Configuration Secondary Feedstock Other 4Q 2021 Market Products Realized 3:2:1 Margin Market 3:2:1 - WTI
Slide 23: 4Q 2021 Refining Margins – Market vs. Realized (West Coast)
4Q 2021 Refining Margins – Market vs. Realized WEST COAST ($/BBL, UNLESS OTHERWISE NOTED) ANS: $79.81 (1.93) (3.35) (0.70) (1.25) 76% crude utilization 22.64 15.41 68% market capture 4Q 2021 Configuration Secondary Feedstock Other 4Q 2021 Market Products Realized 3:2:1 Margin Market 3:2:1 - ANS / Lo
Slide 24: 4Q 2021 Adjusted Earnings vs. 4Q 2020
4Q 2021 Adjusted Earnings 4Q 2021 VS. 4Q 2020 ($MM) 278 1,498 (10) (503) (24) 1,298 221 345 (507) 4Q 2020 Midstream Chemicals Refining Marketing Corporate Income Noncontrolling 4Q 2021 Adjusted & Specialties & Other Taxes Interests Adjusted Loss Earnings 668 424 404 499 (245) (354) (98) 4Q 2021 Adju
Slide 25: 4Q 2021 Midstream Adjusted Pre-Tax Income
4Q 2021 Midstream Adjusted Pre-Tax Income 4Q 2021 VS. 4Q 2020 ($MM) 70 198 77 668 323 4Q 2020 Transportation NGL & Other DCP 4Q 2021 Adjusted Midstream Adjusted Pre-Tax Income 273 284 111 Pre-Tax Income 4Q 2021 25
Slide 26: 4Q 2021 Chemicals Adjusted Pre-Tax Income
4Q 2021 Chemicals Adjusted Pre-Tax Income 4Q 2021 VS. 4Q 2020 ($MM) 23 9 189 424 203 4Q 2020 Olefins & Specialties, Other 4Q 2021 Adjusted Polyolefins Aromatics & Adjusted Pre-Tax Income Styrenics Pre-Tax Income 405 36 (17) 4Q 2021 26
Slide 27: 4Q 2021 Refining Adjusted Pre-Tax Income
4Q 2021 Refining Adjusted Pre-Tax Income 4Q 2021 VS. 4Q 2020 ($MM) 374 404 322 522 (1,094) 280 4Q 2020 Atlantic Gulf Central West Coast 4Q 2021 Adjusted Basin / Coast Corridor Adjusted Pre-Tax Loss Europe Pre-Tax Income 114 80 145 65 4Q 2021 27
Slide 28: 4Q 2021 Marketing & Specialties Adjusted Pre-Tax Income
4Q 2021 Marketing & Specialties Adjusted Pre-Tax Income 4Q 2021 VS. 4Q 2020 ($MM) 57 221 499 221 4Q 2020 Marketing Specialties 4Q 2021 Adjusted & Other Adjusted Pre-Tax Income Pre-Tax Income 402 97 4Q 2021 28
Slide 29: 4Q 2021 Corporate & Other Adjusted Pre-Tax Loss
4Q 2021 Corporate & Other Adjusted Pre-Tax Loss 4Q 2021 VS. 4Q 2020 ($MM) 4Q 2020 Net Interest Corporate 4Q 2021 Adjusted Expense Overhead Adjusted Pre-Tax Loss & Other Pre-Tax Loss (235) (245) 4 (14) 29
Slide 30: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2021 2020 Year 4Q 3Q Year 4Q Phillips 66 Consolidated Earnings (Loss) $ 1,317 1,273 402 (3,975) (539) Pre-Tax Adjustments: Impairments 1,496 — 1,298 4,241 96 Impairments by equity affiliates — — — 15 — Pending claims and settlements —
Slide 31: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2021 2020 Year 4Q 3Q Year 4Q Midstream Pre-Tax Income (Loss) $ 1,610 593 629 (9) 223 Pre-Tax Adjustments: Impairments 208 — 10 1,461 96 Pension settlement expense 8 1 3 9 1 Hurricane-related costs 4 4 — 4 3 Winter-storm-related costs 2
Slide 32: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2021 2020 Year 4Q 3Q Year 4Q Refining Pre-Tax Income (Loss) $ (2,549) 346 (1,126) (6,155) (1,113) Pre-Tax Adjustments: Impairments 1,288 — 1,288 2,755 — Certain tax impacts (11) (11) — (6) (6) Pension settlement expense 37 5 12 41 3 Hu
Slide 33: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2021 2020 Year 4Q 3Q Year 4Q Corporate & Other Pre-Tax Loss $ (974) (246) (231) (881) (226) Pre-Tax Adjustments: Impairments — — — 25 — Certain tax impacts — — — (8) — Pension settlement expense 4 1 1 4 — Asset dispositions — — — (9) (
Slide 34: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2021 2020 Year 4Q 3Q Year 4Q Midstream - Transportation Pre-Tax Income $ 678 203 244 508 97 Pre-Tax Adjustments: Impairments 208 — 10 300 96 Hurricane-related costs — — — 4 3 Winter-storm-related costs 1 — — — — Asset dispositions — —
Slide 35: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2021 2020 Year 4Q 3Q Year 4Q Chemicals - Olefins & Polyolefins Pre-Tax Income $ 1,734 416 611 692 204 Pre-Tax Adjustments: Impairments by equity affiliates — — — 15 — Pension settlement expense 20 2 2 18 18 Hurricane-related costs — —
Slide 36: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2021 2020 Year 4Q 3Q Year 4Q Refining - Atlantic Basin / Europe Pre-Tax Income (Loss) $ (36) 137 90 (1,224) (161) Pre-Tax Adjustments: Impairments — — — 441 — Certain tax impacts (4) (4) — (6) (6) Pension settlement expense 5 1 2 10 1
Slide 37: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2021 2020 Year 4Q 3Q Year 4Q Refining - Central Corridor Pre-Tax Income (Loss) $ 70 171 229 (641) (178) Pre-Tax Adjustments: Impairments — — — 435 — Pension settlement expense 10 1 3 10 1 Winter-storm-related costs 7 — — — — Regulatory
Slide 38: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2021 2020 Year 4Q 3Q Year 4Q Marketing & Specialties - Marketing & Other Pre-Tax Income $ 1,453 401 452 1,271 180 Pre-Tax Adjustments: Pending claims and settlements — — — (37) — Pension settlement expense 6 1 2 6 1 Adjusted Pre-Tax In
Slide 39: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars (Except as Indicated) 4Q 2021 Atlantic Basin/ Central Europe Gulf Coast Corridor West Coast Worldwide Realized Refining Margins Income (loss) before income taxes $ 137 (39) 171 77 346 Plus: Taxes other than income taxes 16 8 13 — 37 Depreciation, amortiza
Slide 40: Non-GAAP Reconciliations
Non-GAAP Reconciliations 2021 Numerator ($MM) Net Income $ 1,594 After-tax interest expense 459 GAAP ROCE earnings 2,053 After-tax special items 1,257 Adjusted ROCE earnings $ 3,310 Denominator ($MM) GAAP average capital employed1 $ 36,751 2021 GAAP ROCE 6% 2021 Adjusted ROCE 9% 40 1) Capital employ
Slide 41: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars (Except as Indicated) December 31, 2021 Total Debt $ 14,448 Total Equity 21,637 Debt-to-Capital Ratio 40 % Total Cash $ 3,147 Net Debt-to-Capital Ratio 34 % 41
Slide 42: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Millions of Dollars 4Q 2021 2021 Growth Sustaining Total Growth Sustaining Total Capital Expenditures and Investments Midstream $ 73 96 169 $ 501 237 738 Refining 82 169 251 279 500 779 Marketing & Specialties 110 20 130 147 55 202 Corporate & Other — 47
Slide 43: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2021 4Q Year Effective Tax Rates Income before income taxes $ 1,627 1,740 Special items $ 123 1,762 Adjusted income before income taxes $ 1,750 3,502 Income tax expense $ 256 146 Special items $ 98 505 Adjusted income tax expense $ 354