Phillips 66 · NYSE:PSX

Phillips 66 — Q2 2022 Earnings Presentation

42 slides from Phillips 66's earnings presentation, Jul 29, 2022

  1. Slide 1: Bayway Refinery

    July 29, 2022 1 Bayway Bayway Refinery Humber Refinery Refinery LINDEN, N. LINCOLNSHIRE, NJ U.K. LINDEN, NJ

  2. 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

  3. Slide 3: Executing the Strategy

    Executing the Strategy Sweeny Ethylene Unit Humber Refinery SWEENY/OLD OCEAN, TX N. LINCOLNSHIRE, U.K. Renewable Fuels Catalyst Research Reactor PHILLIPS RESEARCH CENTER, BARTLESVILLE, OK Organic solar cell research at P66 Research Center BARTLESVILLE, OK Humber Organic Solar Cells at Phillips 66 Re

  4. Slide 4: 2Q 2022 Overview

    2Q 2022 Overview Ponca City Refinery Phillips 66 Branded Marketing Site PONCA CITY, OK HOUSTON, Ponca Refinery, PONCA CITY, OKTX Lake Charles Refinery WESTLAKE, LA $MM (UNLESS OTHERWISE NOTED) Denver Terminal DENVER, CO Borger Refinery Adjusted earnings $3,285 BORGER, TX Adjusted EPS1 6.77 Operating

  5. Slide 5: 2Q 2022 Adjusted Earnings

    2Q 2022 Adjusted Earnings 2Q 2022 VS. 1Q 2022 ($MM) 1Q 2022 2Q 2022 Midstream Chemicals Refining Marketing Corporate Income Noncontrolling Adjusted Adjusted & Specialties & Other Taxes Interests Earnings Earnings 449 14 2,992 60 (752) 3,285 50 595 (123) 292 273 3,132 765 (235) (927) (15) 2Q 2022 Adj

  6. Slide 6: 2Q 2022 Midstream Adjusted Pre-Tax Income

    2Q 2022 Midstream Adjusted Pre-Tax Income 2Q 2022 VS. 1Q 2022 ($MM) 99 Higher Sweeny Hub margins and volumes 61 (82) Improved DCP gathering (28) and processing results 292 242 Awarded API Distinguished Pipeline Safety Award two consecutive years 1Q 2022 Transportation NGL DCP NOVONIX 2Q 2022 Adjuste

  7. Slide 7: 2Q 2022 Chemicals Adjusted Pre-Tax Income

    2Q 2022 Chemicals Adjusted Pre-Tax Income 2Q 2022 VS. 1Q 2022 ($MM) Lower O&P margins 11 Improved SA&S margins 27 (161) 396 94% O&P utilization 273 CPChem distributions of $216 MM 1Q 2022 Olefins & Specialties, Other 2Q 2022 Adjusted Polyolefins Aromatics & Adjusted Pre-Tax Income Styrenics Pre-Tax

  8. Slide 8: 2Q 2022 Refining Adjusted Pre-Tax Income

    2Q 2022 Refining Adjusted Pre-Tax Income 2Q 2022 VS. 1Q 2022 ($MM) 1Q 2022 Atlantic Gulf Central West 2Q 2022 Adjusted Basin / Coast Corridor Coast Adjusted Pre-Tax Income Europe Pre-Tax Income 90% crude utilization 492 647 83% clean product yield 894 $28.31/BBL realized margin 3,132 959 $223 MM tur

  9. Slide 9: 2Q 2022 Refining Margins – Market vs. Realized

    2Q 2022 Refining Margins – Market vs. Realized WORLDWIDE REFINING ($/BBL, UNLESS OTHERWISE NOTED) (6.44) (3.03) (1.46) (7.48) 46.72 28.31 2Q 2022 Configuration Secondary Products Feedstock Other 2Q 2022 Market Realized 3:2:1 Margin Avg Market Crude: $111.17 61% Market Capture 9

  10. Slide 10: 2Q 2022 Marketing & Specialties Adjusted Pre-Tax Income

    2Q 2022 Marketing & Specialties Adjusted Pre-Tax Income 2Q 2022 VS. 1Q 2022 ($MM) 453 (4) Higher global marketing margins Increased seasonal demand 765 Refined product exports of 153 MBPD 316 1Q 2022 Marketing Specialties 2Q 2022 Adjusted & Other Adjusted Pre-Tax Income Pre-Tax Income 656 109 2Q 202

  11. Slide 11: 2Q 2022 Cash Flow

    2Q 2022 Cash Flow $B 3.6 (1.8) (1.5) (0.4) 0.1 (0.5) 3.3 2.8 March 31, CFO Working Debt Capital Shareholder Other June 30, 2022 (excluding Capital Expenditures Distributions 2022 Cash 1 Working & Investments Cash 1 Balance Capital) Balance 11 1) Includes cash and cash equivalents

  12. Slide 12: Outlook

    Outlook South Texas Gateway Terminal INGLESIDE, TX Denver Terminal Sustainable Aviation Fuel Lab C2G Pipeline DENVER, CO GREGORY, TXN. LINCOLNSHIRE, U.K. 3Q 2022 Global Olefins & Polyolefins utilization Mid-90% Refining crude utilization Low to mid-90% Refining turnaround expenses (pre-tax) $260 MM

  13. Slide 13: Questions and Answers

    Phillips 66 Branded Marketing Site ST. LOUIS, MO Questions and Answers

  14. Slide 14: Appendix

    Phillips 66 Branded Marketing Site ST. LOUIS, MO Appendix

  15. Slide 15: 2022 Estimated Sensitivities

    2022 Estimated Sensitivities 15 Sensitivities shown above are independent and are only valid within a limited price range

  16. Slide 16: Capital Structure

    Capital Structure Consolidated PSX 42% 40% 39% 35% 30% 38% 34% 33% 29% 27% 27.2 24.6 21.5 21.6 22.1 15.9 14.4 14.4 11.8 13.0 1.6 2.5 3.1 3.3 2.8 2019 2020 2021 1Q 2022 2Q 2022 Equity $B Debt $B Cash & Cash Equivalents $B Debt-to-Capital Net Debt-to-Capital 16

  17. Slide 17: 2Q 2022 Refining Margins – Market vs. Realized

    2Q 2022 Refining Margins – Market vs. Realized ATLANTIC BASIN / EUROPE ($/BBL, UNLESS OTHERWISE NOTED) 0.03 Brent: $113.78 (6.60) (5.42) (7.37) 98% crude utilization 49.75 30.39 61% market capture 2Q 2022 Configuration Secondary Feedstock Other 2Q 2022 Market Products Realized 3:2:1 Margin Market 3:

  18. Slide 18: 2Q 2022 Refining Margins – Market vs. Realized

    2Q 2022 Refining Margins – Market vs. Realized GULF COAST ($/BBL, UNLESS OTHERWISE NOTED) LLS: $110.15 1.52 (7.37) (4.02) (6.40) 94% crude utilization 41.07 24.80 60% market capture 2Q 2022 Configuration Secondary Feedstock Other 2Q 2022 Market Products Realized 3:2:1 Margin Market 3:2:1 - LLS / Gas

  19. Slide 19: 2Q 2022 Refining Margins – Market vs. Realized

    2Q 2022 Refining Margins – Market vs. Realized CENTRAL CORRIDOR ($/BBL, UNLESS OTHERWISE NOTED) (3.46) WTI: $108.66 (4.94) (0.68) (8.56) 82% crude utilization 44.36 26.72 60% market capture 2Q 2022 Configuration Secondary Feedstock Other 2Q 2022 Market Products Realized 3:2:1 Margin Market 3:2:1 - W

  20. Slide 20: 2Q 2022 Refining Margins – Market vs. Realized

    2Q 2022 Refining Margins – Market vs. Realized WEST COAST ($/BBL, UNLESS OTHERWISE NOTED) ANS: $112.48 (7.37) (3.93) (0.72) (8.75) 84% crude utilization 53.90 33.13 61% market capture 2Q 2022 Configuration Secondary Feedstock Other 2Q 2022 Market Products Realized 3:2:1 Margin Market 3:2:1 - ANS / L

  21. Slide 21: 2Q 2022 Adjusted Earnings

    2Q 2022 Adjusted Earnings 2Q 2022 VS. 2Q 2021 ($MM) 286 9 3,838 63 (832) 3,285 329 (24) (384) 2Q 2021 Midstream Chemicals Refining Marketing Corporate Income Noncontrolling 2Q 2022 Adjusted & Specialties & Other Taxes Interests Adjusted Earnings Earnings 292 273 3,132 765 (235) (927) (15) 2Q 2022 Ad

  22. Slide 22: 2Q 2022 Midstream Adjusted Pre-Tax Income

    2Q 2022 Midstream Adjusted Pre-Tax Income 2Q 2022 VS. 2Q 2021 ($MM) 121 69 (240) 26 316 292 2Q 2021 Transportation NGL & Other DCP NOVONIX 2Q 2022 Adjusted Midstream Adjusted Pre-Tax Income Pre-Tax Income 250 152 130 (240) 2Q 2022 22

  23. Slide 23: 2Q 2022 Chemicals Adjusted Pre-Tax Income

    2Q 2022 Chemicals Adjusted Pre-Tax Income 2Q 2022 VS. 2Q 2021 ($MM) 657 16 (377) (23) 273 2Q 2021 Olefins & Specialties, Other 2Q 2022 Adjusted Polyolefins Aromatics & Adjusted Pre-Tax Income Styrenics Pre-Tax Income 216 59 (2) 2Q 2022 23

  24. Slide 24: 2Q 2022 Refining Adjusted Pre-Tax Income

    2Q 2022 Refining Adjusted Pre-Tax Income 2Q 2022 VS. 2Q 2021 ($MM) 872 588 1,168 3,132 1,210 (706) 2Q 2021 Atlantic Gulf Central West Coast 2Q 2022 Adjusted Basin / Coast Corridor Adjusted Pre-Tax Loss Europe Pre-Tax Income 1,102 915 512 603 2Q 2022 24

  25. Slide 25: 2Q 2022 Marketing & Specialties Adjusted Pre-Tax Income

    2Q 2022 Marketing & Specialties Adjusted Pre-Tax Income 2Q 2022 VS. 2Q 2021 ($MM) 22 264 765 479 2Q 2021 Marketing Specialties 2Q 2022 Adjusted & Other Adjusted Pre-Tax Income Pre-Tax Income 656 109 2Q 2022 25

  26. Slide 26: 2Q 2022 Corporate & Other Adjusted Pre-Tax Loss

    2Q 2022 Corporate & Other Adjusted Pre-Tax Loss 2Q 2022 VS. 2Q 2021 ($MM) 2Q 2021 Adjusted Net Interest Corporate 2Q 2022 Pre-Tax Loss Expense Overhead Adjusted & Other Pre-Tax Loss (244) (235) 14 (5) 26

  27. Slide 27: 2Q 2022 Corporate & Other Adjusted Pre-Tax Loss

    2Q 2022 Corporate & Other Adjusted Pre-Tax Loss 2Q 2022 VS. 1Q 2022 ($MM) 1Q 2022 Net Interest Corporate 2Q 2022 Adjusted Expense Overhead Adjusted Pre-Tax Loss & Other Pre-Tax Loss (235) (249) 9 5 27

  28. Slide 28: YTD 2022 Cash Flow

    YTD 2022 Cash Flow $B 4.9 (1.9) (1.5) (0.7) (0.9) (0.2) 3.1 2.8 December 31, CFO Working Debt Capital Shareholder Other June 30, 2021 (excluding Capital Expenditures Distributions 2022 Cash Working & Investments Cash 1 1 Balance Capital) Balance 28 1) Includes cash and cash equivalents

  29. Slide 29: Non-GAAP Reconciliations

    Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2022 2021 Jun YTD 2Q 1Q Jun YTD 2Q Phillips 66 Consolidated Earnings (Loss) $ 3,749 3,167 582 (358) 296 Pre-Tax Adjustments: Impairments — — — 198 — Pension settlement expense — — — 47 47 Hurricane-related costs 17 — 17 — — Winter-stor

  30. Slide 30: Non-GAAP Reconciliations

    Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2022 2021 Jun YTD 2Q 1Q Jun YTD 2Q Midstream Pre-Tax Income $ 534 292 242 388 312 Pre-Tax Adjustments: Impairments — — — 198 — Pension settlement expense — — — 4 4 Winter-storm-related costs — — — 2 — Adjusted Pre-Tax Income $ 534 292

  31. Slide 31: Non-GAAP Reconciliations

    Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2022 2021 Jun YTD 2Q 1Q Jun YTD 2Q Refining Pre-Tax Income (Loss) $ 3,159 3,036 123 (1,769) (729) Pre-Tax Adjustments: Pension settlement expense — — — 20 20 Hurricane-related costs 17 — 17 — — Winter-storm-related costs — — — 17 3 1 A

  32. Slide 32: Non-GAAP Reconciliations

    Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2022 2021 Jun YTD 2Q 1Q Jun YTD 2Q Midstream - Transportation Pre-Tax Income $ 528 250 278 231 224 Pre-Tax Adjustments: Impairments — — — 198 — Winter-storm-related costs — — — 1 — Adjusted Pre-Tax Income $ 528 250 278 430 224 Midstrea

  33. Slide 33: Non-GAAP Reconciliations

    Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2022 2021 Jun YTD 2Q 1Q Jun YTD 2Q Midstream - NOVONIX Pre-Tax Income (Loss) $ (398) (240) (158) — — Pre-Tax Adjustments: None — — — — — Adjusted Pre-Tax Income (Loss) $ (398) (240) (158) — — 33

  34. Slide 34: Non-GAAP Reconciliations

    Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2022 2021 Jun YTD 2Q 1Q Jun YTD 2Q Chemicals - Olefins & Polyolefins Pre-Tax Income $ 593 216 377 707 562 Pre-Tax Adjustments: Pension settlement expense — — — 16 16 Winter-storm-related costs — — — 44 15 Adjusted Pre-Tax Income $ 593

  35. Slide 35: Non-GAAP Reconciliations

    Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2022 2021 Jun YTD 2Q 1Q Jun YTD 2Q Refining - Atlantic Basin / Europe Pre-Tax Income (Loss) $ 1,236 1,093 143 (263) (110) Pre-Tax Adjustments: Pension settlement expense — — — 2 2 Winter-storm-related costs — — — 1 — Regulatory complia

  36. Slide 36: Non-GAAP Reconciliations

    Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2022 2021 Jun YTD 2Q 1Q Jun YTD 2Q Refining - Central Corridor Pre-Tax Income (Loss) $ 355 490 (135) (330) (82) Pre-Tax Adjustments: Pension settlement expense — — — 6 6 Winter-storm-related costs — — — 7 — Regulatory compliance costs

  37. Slide 37: Non-GAAP Reconciliations

    Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2022 2021 Jun YTD 2Q 1Q Jun YTD 2Q Marketing & Specialties - Marketing & Other Pre-Tax Income $ 859 656 203 600 389 Pre-Tax Adjustments: Pension settlement expense — — — 3 3 Adjusted Pre-Tax Income $ 859 656 203 603 392 Marketing & Spe

  38. Slide 38: Non-GAAP Reconciliations

    Non-GAAP Reconciliations Millions of Dollars (Except as Indicated) 2Q 2022 Atlantic Basin/ Central Europe Gulf Coast Corridor West Coast Worldwide Realized Refining Margins Income before income taxes $ 1,093 863 490 590 3,036 Plus: Taxes other than income taxes 14 21 18 19 72 Depreciation, amortizat

  39. Slide 39: Non-GAAP Reconciliations

    Non-GAAP Reconciliations 2022 June YTD Numerator ($MM) Net Income $ 3,839 After-tax interest expense 211 GAAP ROCE earnings 4,050 After-tax special items 131 Adjusted ROCE earnings $ 4,181 Denominator ($MM) GAAP average capital employed1 $ 36,814 2022 Annualized GAAP ROCE 22 % 2022 Annualized Adjust

  40. Slide 40: Non-GAAP Reconciliations

    Non-GAAP Reconciliations Millions of Dollars Except as Indicated June 30, 2022 Total Debt $ 12,969 Total Equity 24,573 Debt-to-Capital Ratio 35 % Total Cash $ 2,809 Net Debt-to-Capital Ratio 29 % 40

  41. Slide 41: Non-GAAP Reconciliations

    Non-GAAP Reconciliations Millions of Dollars Millions of Dollars 2Q 2022 2022 June YTD Growth Sustaining Total Growth Sustaining Total Capital Expenditures and Investments Midstream $ 48 58 106 $ 182 88 270 Refining 109 111 220 192 199 391 Marketing & Specialties 10 9 19 14 16 30 Corporate & Other —

  42. Slide 42: Non-GAAP Reconciliations

    Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2Q 2022 Effective Tax Rates Income before income taxes $ 4,106 Special items 121 Adjusted income before income taxes $ 4,227 Income tax expense $ 924 Special items 3 Adjusted income tax expense $ 927 GAAP effective tax rate 22.5 % Adju

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