Phillips 66 · NYSE:PSX
Phillips 66 — Investor Presentation (May 2024)
56 slides from Phillips 66's investor presentation, May 2024
Slide 1: Investor Update May 2024
eves aw | Sime PHILLIPS PROVIDING ENERGY. IMPROVING LIVES. Investor Update | May 2024
Slide 2: Cautionary Statement
a Cautionary Statement This presentation contains forward-looking statements within the meaning of the federal securities laws. Words such as “anticipated,” “estimated,” “expected,” “planned,” “scheduled,” “targeted,” “believe,” “continue,” “intend,” “will” “would,” “objective, "project," “efforts,”
Slide 3: Differentiated and Attractive Investment Opportunity
a Differentiated and Attractive Investment Opportunity GROWING MAINTAINING Cash Generation Capital Discipline +$4 B mid-cycle adjusted EBITDA 12% average ROCE since target increase ($14 B) by 2025 as 2012 ap 75% of adjusted EBITDA growth $0.3 B of sustaining capital outside refining efficiencies sin
Slide 4: Strategic Priorities
a Strategic Priorities + $9.9 B shareholder distributions since July 2022 * On track to meet $13 B - $15 B target by YE 2024 + Above industry average crude utilization for five consecutive quarters Ad Deliver Shareholder Returns oh Improve Refining Performance + >$560 MM run-rate cost savings as of
Slide 5: Leading Downstream Integrated Energy Provider
Leading Downstream Integrated Energy Provider Positioned for Value Creation Through Economic Cycles MIDSTREAM * NGL wellhead-to-market value chain * Crude oil & product pipelines and terminals + 80% fee based * 72,000 miles of U.S. pipeline systems MARKETING & SPECIALTIES + 7,260 sites in the U.S. a
Slide 6: Integration Captures Opportunities Across the Value Chain
Integration Captures Opportunities Across the Value Chain 2025 Mid-Cycle Adjusted EBITDA Target by Segment? ($B) Over 60% of mid-cycle adjusted EBITDA from non refining $14 B 2025 Mid-Cycle Adjusted EBITDA Target = Midstream = Chemicals = Refining = Marketing & Specialties = Renewable Fuels Crude In
Slide 7: ¹ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
¹ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Slide 8: Edmonton Hardisty Calgary
Edmonton Hardisty Calgary Billings Patoka Houston Cushing New Orleans
Slide 9: Integration: Central Corridor
a Integration: Central Corridor Central Corridor Optimization : @ Optimize Refining feedstock and yields through Crude Oil q Natural Gas / NGLs highest clean product netback market identification Vv . Crude Gathering & Infrastructure @ ® Processing @ @ Utilization of Midstream assets to maximize 7 L
Slide 10: Integration: Sweeny Hub
Integration: Sweeny Hub Sweeny Hub 3 Chemicals Clean Products Infrastructure Natural Gas / NGLs e Gathering & Processing Long Haul Pipelines Natural Gas Markets Fractionation Global LPG Markets Global ® Chemicals Markets @ Refining light ends sent to fracs enabling high crude rate @ Access to high v
Slide 11: Permian G&P Acquisition Furthers Wellhead-to-Market Strategy
Permian G&P Acquisition Furthers Wellhead-to-Market Strategy Pinnacle Midstream Acquisition Supports Scale in World Class Midland Basin • • • • • • • • • • • • LPG DOCK • 11
Slide 12: Rodeo Renewed timeline
2021 2022 2023 1Q 2024 2Q 2024 3Q 2024 e e U @ U @ Final ~30 MBD Sustainable Unit 250 investment Unit 250 renewable fuels Expect-50 MBD aviation fuel -7 MBD decision on ~10 MBD production renewable fuels (SAF) capability renewable fuels renewable fuels renewable fuels production production productio
Slide 13: CPChem Over Two Decades of Strong Growth and Execution
CPChem Over Two Decades of Strong Growth and Execution World’s Premier Chemical Company, Known as the Employer, Supplier, Neighbor and Investment of Choice • • • Capacity Capacity Additions Aromatics $18 Industry Solutions $16 Drilling Specialties Automotive $14 Energy & Chemical Normal Alpha Olefin
Slide 14: Segment sections
¹ Renewable Fuels Refining M&S Chemicals Midstream
Slide 15: Cost savings run-rate
Freight and Other Costs Controllable Costs Refining JV Controllable Costs Run-Rate
Slide 16: Improving Refining Performance to Capture Additional Value
a Improving Refining Performance to Capture Additional Value Assets Positioned to Ensure Long-Term Competitiveness Refining Crude Capacity Utilization vs. Industry Average Planned Market Capture Improvement from 2022-2025 10% Over 60 high-return, low-capital projects to improve Post Investor Day mar
Slide 17: Growing Midstream Earnings: Wellhead-to-Market Integration
Growing Midstream Earnings: Wellhead-to-Market Integration Midstream Mid-Cycle Adjusted EBITDA ($B) Balanced Wellhead-to-Market NGL Portfolio +$1.0B +$0.4B DCP ADJUSTED SYNERGIES EBITDA $3.8 2022 Mid-Cycle 2025 Mid-Cycle Adjusted EBITDA Adjusted EBITDA’ Target Target nd Mont Belvie May 20, 2024 ract
Slide 18: Delivering Durable Returns through Capital Discipline
Delivering Durable Returns through Capital Discipline Steady Investments Drive Strong Returns Adjusted ROCE (% After-Tax) 2024 Capital Budget ($B) 22% 16% ” 2021 2022 2023 1Q 2024 Adjusted Capital Expenditures and Investments ($B) lM Sustaining Growth 2.4 2.2 2.2 1.9 50 million related to the repaym
Slide 19: Debt maturity profile
² 4.7 3.2 2.7 ¹ 1.8 1.7 1.0 1.3 1.5 1.5 2024 2025 2026 2027 28-32 33-37 38-42 43-47 48+
Slide 20: Improved Cash Generation for Increased Shareholder Returns
a Improved Cash Generation for Increased Shareholder Returns Mid-Cycle Adjusted CFO Capital Allocation ($B) m™Sustaining Capital wowvidends " >$10 Expect to return (o) = Discretionary more than half of > % operating cash to shareholders 2022 Mid-Cycle 2025 Mid-Cycle Adjusted CFO Target Adjusted CFO
Slide 21: Integrated Portfolio Provides Excess Cash Flow
Integrated Portfolio Provides Excess Cash Flow Through the Economic Cycles Adjusted EBITDA by Segment? ($B) Cash from Operating Activities vs Select Cash Uses ($B) Stable, growing earnings from non-refining segments (2) 2017 2018 2019 2020° 2021 2022 2023 Midstream mM&S =Chemicals mRefining was $211
Slide 22: Compelling Value Proposition
Compelling Value Proposition Competitive Return Profile Across Industries Cumulative Shareholder Distributions ($B) Total Shareholder Distribution Yield! Bl pividends Share Repurchases & Share Exchange 12 13 14 15 16 7 18 19 20 21 22 23 «246 Annual Dividend ($ per share) Increasing Every Year 4.50 r
Slide 23: Outlook
| Outlook 2Q 2024 Global Olefins & Polyolefins utilization Refining crude utilization Refining turnaround expense* Corporate & Other costs Full-year 2024 Refining turnaround expense* Corporate & Other costs Depreciation and amortization Effective income tax rate *Excludes Rodeo renewables facility B
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Slide 25: Providing Energy. Improving Lives.
a Providing Energy. Improving Lives. Our Products Improve Lives and Make Modern Life Possible Transportation Fuels trucks, ships, planes ; Personal Care/Clothing Agriculture sunscreen, hand soaps, fertilizers, insecticide, Electric Vehicles body washes, cosmetics Inigation'pipe batteries, rubber tir
Slide 26: Uniquely Integrated and Diversified Asset Portfolio
Uniquely Integrated and Diversified Asset Portfolio Ferndale if ire, Rodeo Renewable Energy Complex Los Angeles @-chem i GLOBAL ASSETS MAP LEGEND @ Batteries @ Coke Facility @ cPchem (il cPchem Facility (0&P) @/— crude Terminal / Pipeline @ Fractionator & /@ Gas Plant / Office © Hydrogen Fueling” ©
Slide 27: Midstream Provides Connectivity Across the Value Chain
a Midstream Provides Connectivity Across the Value Chain With Crude, Clean Products, and NGL Infrastructure, Midstream is Linked to our Refining, Marketing and Chemicals Businesses 72 Adjusted EBITDA ($B)' 3.3 Thousand miles 27 of U.S. pipeline systems 2.2 19 21 719 rt en f 8 2019 2020 2021 2022 202
Slide 28: Chemicals Positioned to Perform in any Market
a Chemicals Positioned to Perform in any Market Leading Feedstock Positions in North America and the Middle East Ensure Competitiveness 2019-2023 Ethylene Production Cost Curve Olefins and Polyolefins Capacity Utilization (%) (Cents per pound) NA. = North America 99% 97% 96% 95% 91% 8° 95% Advantage
Slide 29: Refining Maintains Competitive Positions with Market Access
a Refining Maintains Competitive Positions with Market Access Adjusted EBITDA ($B) a Ferndale West Coast “a Le 244 MBD —silings ao if I Bayway 6.2 il I a a. ° H 5.1 Atlantic Basin 31 i} | Central Corridor 537 MBD L q 531 MBD teed River europe (2.2) ! Humber Mca city wa 2019 2020 2021 2022 2023 2025
Slide 30: Refinery Capacity, Complexity
a Refinery Capacity, Complexity Capacities? Net Clean Product Capacity? Nelson Complexity* Crude Throughput Gasoline Distillate 2 while { Bayway 258 300 155 130 77 Humber 221 245 95 15 11.8 MiRO 58 61 25 27 8.9 [Atlantic Basin/Europe 537 606 275 272 9.5% Lake Charles 264 285 105 15 9.0 Sweeny 265 31
Slide 31: Marketing & Specialties: Stable Cash Flow, Strong Returns
Marketing & Specialties: Stable Cash Flow, Strong Returns Optimizes Refined Product Placement Domestic Marketing Asset Map Adjusted EBITDA ($B) © Phillips 66 © Conoco’ @ 76 7,260 1,670 Branded U.S. Outlets Branded Intl. Outlets B Purchases for resale and markets refined petroleum products and renewa
Slide 32: Executing the Strategy
a Executing the Strategy Transformational Efforts Increase Cash Flow, Earnings, and Value Adjusted EBITDA by Segment ($B) $0.6 $0.2 $14.0 $0.7 as $11 a $7.7 2017-2019 2022 Mid-Cycle DCP Business Renewable Commercial Chemicals 2025 Mid-Cycle Average Adjusted Adjusted EBITDA Transformation Fuels Adjus
Slide 33: Operating Excellence
a Operating Excellence Safety Improves Availability, Utilization and Market Capture Total Recordable Rates (Incidents per 200,000 hours worked) Industry Average @ Industry Safety Metrics! (Incidents per 200,000 hours worked) Phillips 66? cPChem Al 32 38.41 35 32 ° . 8 S28 se 32 ° 18 1308-15 1408 12
Slide 34: Strong ESG Oversight and Performance Leads to Sustainable Results
Strong ESG Oversight and Performance Leads to Sustainable Results Q @ 2 Progressing our GHG goals Achieved an 8% reduction in Scope 1 & 2 emissions intensity and 3% reduction in Scope 3 emissions intensity from 2019 levels in 2022 Delivering competitive returns in lower-carbon investments Our Rodeo
Slide 35: 2024 Sensitivities
2024 Sensitivities Annual EBITDA $MM © 10¢/Gal Increase in NGL price 110 10¢/MMBtu Increase in Natural Gas price 7 $1/BBL Increase in WTI price 6 Chemicals - CPChem (net to Phillips 66) 1¢/Lb Increase in Chain Margin (Ethylene, Polyethylene, NAO) 65 Worldwide Refining $1/BBL Increase in Gasoline Mar
Slide 36: Midstream Guidance
a Midstream Guidance Financial Guidance 2024 Estimated Mid-Cycle Adjusted Commodity sensitive EBITDA' ~$3,600 MM Estimated Synergies? Included in ~$300 MM ~80% Adjusted EBITDA Fee based 2024 Sustaining Capital Budget $392 MM 2024 Growth Capital Budget* $593 MM Fee based Mid-Cycle Commodity Price Ass
Slide 37: Publications
a Publications Providing Energy and Improving Lives; Strong ESG Oversight 2022 Human Capital Management YEAR IN REVIEW, 2 24 Prox’ 2023 Sustainability Report 2022 Year In Review j # STATEMENT 37
Slide 38: Footnotes
a Footnotes General Information disclosed is as of December 31, 2023, unless noted otherwise. Numbers may not appear to tie due to rounding. Chevron Phillips Chemical may be abbreviated as CPChem. Marketing and Specialties may be abbreviated as M&S. Effective January 1, 2024, Phillips 66 net crude t
Slide 39: Footnotes
a Footnotes Mid-Cycle Adjusted EBITDA by Segment 2022 mid-cycle adjusted EBITDA represented targeted mid-cycle adjusted EBITDA that we presented at our November 2022 Investor Day. This mid-cycle adjusted EBITDA target was based on historical average adjusted EBITDA for our Refining and Chemicals ope
Slide 40: Footnotes
a Footnotes Reducing Costs to Sustain Higher Cash Generation Cost Savings Targets are expected to be reflected in either operating expenses, selling, general and administrative expenses, depreciation and amortization expenses, purchased crude oil and products costs or equity in earnings of affiliate
Slide 41: Non-GAAP Reconciliations
a Non-GAAP Reconciliations Millions of Dollars 2017 2018 2019 2020 2021 2022 2023 Reconciliation of Consolidated Net Income to Adjusted EBITDA Net income $ 5,248 5,873 3,377 (3,714) 1,594 11,391 7,239 Plus: Income tax expense (1,693) 1,572 801 (1,250) 146 3,248 2,230 Net interest expense 407 459 415
Slide 42: Non-GAAP Reconciliations
a Non-GAAP Reconciliations Millions of Dollars 2017 2018 2019 2020 2021 2022 2023 Reconciliation of Consolidated Net Income to Adjusted EBITDA (Continued) EBITDA, Adjusted for Special Items and Change in Fair Value of NOVONIX Investment! $ 5,134 9,241 6,771 1,105 5,159 14,493 12,167 Other Adjustment
Slide 43: Non-GAAP Reconciliations
a Non-GAAP Reconciliations Millions of Dollars 2017 2018 2019 2020 2021 2022 2023 Reconciliation of Midstream Income before Income Taxes to Adjusted EBITDA Income before income taxes $ 615 1,088 597 (16) 1,500 4,734 2,774 Plus: Interest Revenue qa) _ _ _ _ _ _ Depreciation and amortization 298 310 2
Slide 44: Non-GAAP Reconciliations
a Non-GAAP Reconciliations Millions of Dollars 2017 2018 2019 2020 2021 2022 2023 Reconcil in of Midstream Income before Income Taxes to Adjusted EBITDA (Continued) Midstream EBITDA, Adjusted for Special Items and Change in Fair Value of NOVONIX Investment! $ 897 1,456 1,788 1,588 1,777 2,762 3,586
Slide 45: Non-GAAP Reconciliations
a Non-GAAP Reconciliations Millions of Dollars 2017 2018 2019 2020 2021 2022 2023 Reconciliation of Midstream - Transportation Income before Income Taxes to Adjusted EBITDA Income before income taxes 530 770 947 508 678 1,176 1,310 Plus: Interest Revenue qa) _ _ _ _ _ Depreciation and amortization 1
Slide 46: Non-GAAP Reconciliations
a Non-GAAP Reconciliations Millions of Dollars 2017 2018 2019 2020 2021 2022 2023 Recon ion of Midstream - NGL and Other Income before Income Taxes to Adjusted EBITDA Income before income taxes $ 85 318 (350) (624) 452 4,000 1,503 Plus: Depreciation and amortization 140 144 140 154 191 394 755 Midst
Slide 47: Non-GAAP Reconciliations
a Non-GAAP Reconciliations Millions of Dollars 2017 2018 2019 2020 2021 2022 2023 Reconciliation of Midstream - NGL and Other Income before Income Taxes to Adjusted EBITDA (Continued) Midstream - NGL and Other EBITDA, Adjusted for Special Items and Change in Fair Value of NOVONIX Investment’ $ 210 5
Slide 48: Non-GAAP Reconciliations
a Non-GAAP Reconciliations Millions of Dollars 2017 2018 2019 2020 2021 2022 2023 Reconciliation of Chemicals Income before Income Taxes to Adjusted EBITDA Income before income taxes $ 716 1,025 879 635 1,844 856 600 Plus: None = = = Chemicals EBITDA $ 716 1,025 879 635 1,844 856 600 Special Item Ad
Slide 49: Non-GAAP Reconciliations
a Non-GAAP Reconciliations Millions of Dollars 2017 2018 2019 2020 2021 2022 2023 Reconciliation of Refining Income before Income Taxes to Adjusted EBITDA Income before income taxes $ 2,076 4,628 2,132 (6,022) (2,353) 7,816 5,266 Plus: Depreciation and amortization 823 849 867 896 984 866 839 Refini
Slide 50: Non-GAAP Reconciliations
a Non-GAAP Reconciliations Millions of Dollars 2017 2018 2019 2020 2021 2022 2023 Reconciliation of Refining Income before Income Taxes to Adjusted EBITDA (Continued) Refining EBITDA, Adjusted for Special Items $ 2,479 5,514 2,961 (2,303) (55) 8,751 6,132 Other Adjustments (pre-tax): Proportional sh
Slide 51: Non-GAAP Reconciliations
a Non-GAAP Reconciliations 2017 2018 2019 2020 2021 2022 2023 Reconciliation of Marketing & Specialties Income before Income Taxes to Adjusted EBITDA Income before income taxes $ 1,020 1,556 1,374 1,421 1,723 2,402 2,135 Plus: Depreciation and amortization n2 4 103 103 13 uile) 121 Marketing & Speci
Slide 52: Non-GAAP Reconciliations
a Non-GAAP Reconciliations Millions of Dollars 2017 2018 2019 2020 2021 2022 2023 Reconciliation of Corporate & Other Loss before Income Taxes to Adjusted EBITDA Loss before income taxes $ (895) (853) (804) (881) (974) (1,169) (1,306) Plus: Net interest expense 408 459 415 485 583 537 628 Depreciati
Slide 53: Non-GAAP Reconciliations
a Non-GAAP Reconciliations Millions of Dollars 3Q@ 2023 4@ 2023 2H 2023 Reconciliation of Midstream Income before Income Taxes to Adjusted EBITDA Income before income taxes $ 712 756 1,468 Plus: Depreciation and amortization 23) 234 465 Midstream EBITDA $ 943 990 1,933 Special Item Adjustments (pre-
Slide 54: Non-GAAP Reconciliations
a Non-GAAP Reconciliations Millions of Dollars (Except as Indicated) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 1@ 2024 Reconciliation of Return on Capital Employed (ROCE) to Adjusted ROCE Numerator Net income (loss) $ 4,131 3,743 4,797 4,280 1,644 5,248 5,873 3,377 (3,714) 1,594 11
Slide 55: Non-GAAP Reconciliations
a Non-GAAP Reconciliations Millions of Dollars (Except as Indicated) 1Q@ 2024 Total Debt $ 20,154 Total Equity 30,793 Debt-to-Capital Ratio 40% Total Cash $ 1,570 Net Debt-to-Capital Ratio 38% 55
Slide 56: Non-GAAP Reconciliations
a Non-GAAP Reconciliations Millions of Dollars 2024 2019 2020 2021 2022 2023 Budget Phillips 66 Capital Expenditures and Investments Midstream'? Growth $ 1,549 1,471 501 744 282 593 Sustaining 251 204 232 299 343 392 Total 1,800 1,675 733 1,043 625 985 Refining? Growth 464 328 280 477 963 654 Sustai