Slide 1: Fourth Quarter 2020 Conference Call
Phillips 66 Branded Marketing Site HOUSTON, TX Fourth Quarter 2020 Conference Call January 29, 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 Fourth Dock at Beaumont Terminal NEDERLAND, TX 3
Slide 4: 4Q 2020 Overview
4Q 2020 Overview $MM (UNLESS OTHERWISE NOTED) Adjusted loss $ (507) Adjusted EPS1 (1.16) Operating cash flow 639 Capital expenditures and investments 506 Shareholder distributions2 393 Common shares outstanding at Dec. 31 437 MM Phillips 66 Branded Marketing Site ST. LOUIS, MO 1) Dollars per share 4
Slide 5: 4Q 2020 Adjusted Loss
4Q 2020 Adjusted Loss 4Q 2020 VS. 3Q 2020 ($MM) 3Q 2020 Midstream Chemicals Refining Marketing Corporate Income Noncontrolling 4Q 2020 Adjusted & Specialties & Other Taxes Interests Adjusted Loss Loss 71 (1) (31) (124) (507) (196) (22) (203) (1) 323 203 (1,094) 221 (235) 149 (74) 4Q 2020 Adjusted Pr
Slide 6: 4Q 2020 Midstream Adjusted Pre-Tax Income
4Q 2020 Midstream Adjusted Pre-Tax Income 4Q 2020 VS. 3Q 2020 ($MM) Transportation volumes (6) impacted by lower refinery (16) (9) utilization rates 354 Higher volumes on Bakken 323 Pipeline Completed Sweeny Hub Phase 2 expansion 3Q 2020 Transportation NGL DCP 4Q 2020 Adjusted & Other Midstream Adju
Slide 7: 4Q 2020 Chemicals Adjusted Pre-Tax Income
4Q 2020 Chemicals Adjusted Pre-Tax Income 4Q 2020 VS. 3Q 2020 ($MM) Higher margins in O&P and 8 68 SA&S (5) 101% O&P utilization 203 132 Continued strong worldwide polyethylene demand 3Q 2020 Olefins & Specialties, Other 4Q 2020 Adjusted Polyolefins Aromatics & Adjusted Pre-Tax Income Styrenics Pre-
Slide 8: 4Q 2020 Refining Adjusted Pre-Tax Loss
4Q 2020 Refining Adjusted Pre-Tax Loss 4Q 2020 VS. 3Q 2020 ($MM) 3Q 2020 Atlantic Gulf Central West 4Q 2020 Adjusted Basin / Coast Corridor Coast Adjusted Pre-Tax Loss Europe Pre-Tax Loss 69% crude utilization 86% clean product yield (970) (1,094) $2.18/BBL realized margin 31 $76 MM turnaround costs
Slide 9: 4Q 2020 Refining Margins – Market vs. Realized
4Q 2020 Refining Margins – Market vs. Realized WORLDWIDE REFINING ($/BBL, UNLESS OTHERWISE NOTED) (0.92) (1.20) (0.46) 7.84 (3.08) 2.18 4Q 2020 Configuration Secondary Products Feedstock Other 4Q 2020 Market Realized 3:2:1 Margin Avg Market Crude: $43.86 28% Market Capture 9
Slide 10: 4Q 2020 Marketing & Specialties Adjusted Pre-Tax Income
4Q 2020 Marketing & Specialties Adjusted Pre-Tax Income 4Q 2020 VS. 3Q 2020 ($MM) Lower global marketing margins and volumes Refined product exports of 417 (185) (11) 103 MBPD 221 Central region joint venture recently acquired 106 retail sites 3Q 2020 Marketing Specialties 4Q 2020 Adjusted & Other A
Slide 11: 4Q 2020 Corporate & Other Adjusted Pre-Tax Loss
4Q 2020 Corporate & Other Adjusted Pre-Tax Loss 4Q 2020 VS. 3Q 2020 ($MM) 3Q 2020 Net Interest Corporate 4Q 2020 Adjusted Expense Overhead Adjusted Pre-Tax Loss & Other Pre-Tax Loss (213) (235) (6) (16) 11
Slide 12: 4Q 2020 Cash Flow
4Q 2020 Cash Flow $B 1.4 (0.5) (0.4) (0.1) 0.4 0.2 2.5 1.5 September 30, CFO Working Debt Capital Shareholder Other December 31, 2020 (excluding Capital Expenditures Distributions 2020 Cash Working & Investments Cash Balance 1 Capital) Balance 1 12 1) Includes cash and cash equivalents
Slide 13: 2020 Overview
2020 Overview $MM (UNLESS OTHERWISE NOTED) Sweeny Fractionator 3 OLD OCEAN, TX Adjusted loss $ (382) Adjusted EPS1 (0.89) Operating cash flow 2,111 Capital expenditures and investments 2,920 Shareholder distributions2 2,018 Net debt-to-capital ratio 38 % 1) Dollars per share 13 Billings Refinery 2)
Slide 14: 2020 Cash Flow
2020 Cash Flow $B 4.1 2.4 (2.9) (0.3) (2.0) (0.4) 2.5 1.6 December 31, CFO Working Debt Capital Shareholder Other December 31, 2019 (excluding Capital Expenditures Distributions 2020 Cash Working & Investments Cash Balance 1 Capital) Balance 1 14 1) Includes cash and cash equivalents
Slide 15: Outlook
Outlook Denver Terminal 1Q 2021 DENVER, CO Global Olefins & Polyolefins utilization Mid-90% Refining crude utilization Market Conditions Refining turnaround expenses (pre-tax) $200 MM – $230 MM Corporate & Other costs (pre-tax) $240 MM – $250 MM 2021 Refining turnaround expenses (pre-tax) $550 MM –
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: 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 $1/BBL Increase in Di
Slide 19: Capital Structure
Capital Structure Consolidated PSX Excluding PSXP 42% 38% 39% 39% 35% 34% 35% 30% 38% 31% 29% 37% 35% 33% 25% 25% 32% 33% 30% 27% 28% 23% 22% 17% 27.2 27.2 23.6 23.3 24.7 24.9 22.3 21.5 21.4 20.7 19.8 19.0 14.4 14.5 15.9 11.2 11.8 13.0 12.0 9.4 10.7 10.7 1.5 8.1 8.2 1.5 1.2 1.3 1.1 3.0 1.6 1.9 2.5 3
Slide 20: 4Q 2020 Refining Margins – Market vs. Realized
4Q 2020 Refining Margins – Market vs. Realized ATLANTIC BASIN / EUROPE ($/BBL, UNLESS OTHERWISE NOTED) Brent: $44.23 0.25 (1.14) 87% crude utilization 8.15 (2.52) (1.75) 2.99 37% market capture 4Q 2020 Configuration Secondary Feedstock Other 4Q 2020 Market Products Realized 3:2:1 Margin Market 3:2:1
Slide 21: 4Q 2020 Refining Margins – Market vs. Realized
4Q 2020 Refining Margins – Market vs. Realized GULF COAST ($/BBL, UNLESS OTHERWISE NOTED) LLS: $44.05 (1.18) 6.11 (1.61) (0.12) 48% crude utilization (0.78) (13)% market capture (3.98) 4Q 2020 Configuration Secondary Feedstock Other 4Q 2020 Market Products Realized 3:2:1 Margin Market 3:2:1 - LLS /
Slide 22: 4Q 2020 Refining Margins – Market vs. Realized
4Q 2020 Refining Margins – Market vs. Realized CENTRAL CORRIDOR ($/BBL, UNLESS OTHERWISE NOTED) WTI: $42.56 (0.34) 1.06 (1.92) 78% crude utilization 7.58 (2.11) 4.27 56% market capture 4Q 2020 Configuration Secondary Feedstock Other 4Q 2020 Market Products Realized 3:2:1 Margin Market 3:2:1 - WTI /
Slide 23: 4Q 2020 Refining Margins – Market vs. Realized
4Q 2020 Refining Margins – Market vs. Realized WEST COAST ($/BBL, UNLESS OTHERWISE NOTED) ANS: $44.82 (0.82) 0.39 (2.11) 72% crude utilization 11.42 (7.09) 1.79 16% market capture 4Q 2020 Configuration Secondary Feedstock Other 4Q 2020 Market Products Realized 3:2:1 Margin Market 3:2:1 - ANS / Los A
Slide 24: 4Q 2020 Adjusted Loss
4Q 2020 Adjusted Loss 4Q 2020 VS. 4Q 2019 ($MM) 30 (82) 689 (507) 385 — (1,439) (66) (24) 4Q 2019 Midstream Chemicals Refining Marketing Corporate Income Noncontrolling 4Q 2020 Adjusted & Specialties & Other Taxes Interests Adjusted Earnings Loss 323 203 (1,094) 221 (235) 149 (74) 4Q 2020 Adjusted P
Slide 25: 4Q 2020 Midstream Adjusted Pre-Tax Income
4Q 2020 Midstream Adjusted Pre-Tax Income 4Q 2020 VS. 4Q 2019 ($MM) 6 (54) (34) 405 323 4Q 2019 Transportation NGL & Other DCP 4Q 2020 Adjusted Midstream Adjusted Pre-Tax Income Pre-Tax Income 196 86 41 4Q 2020 25
Slide 26: 4Q 2020 Chemicals Adjusted Pre-Tax Income
4Q 2020 Chemicals Adjusted Pre-Tax Income 4Q 2020 VS. 4Q 2019 ($MM) 62 (22) (10) 203 173 4Q 2019 Olefins & Specialties, Other 4Q 2020 Adjusted Polyolefins Aromatics & Adjusted Pre-Tax Income Styrenics Pre-Tax Income 216 13 (26) 4Q 2020 26
Slide 27: 4Q 2020 Refining Adjusted Pre-Tax Loss
4Q 2020 Refining Adjusted Pre-Tax Loss 4Q 2020 VS. 4Q 2019 ($MM) 345 (227) (518) (1,094) (510) (184) 4Q 2019 Atlantic Gulf Central West Coast 4Q 2020 Adjusted Basin / Coast Corridor Adjusted Pre-Tax Income Europe Pre-Tax Loss (166) (442) (177) (309) 4Q 2020 27
Slide 28: 4Q 2020 Marketing & Specialties Adjusted Pre-Tax Income
4Q 2020 Marketing & Specialties Adjusted Pre-Tax Income 4Q 2020 VS. 4Q 2019 ($MM) (56) (10) 287 221 4Q 2019 Marketing Specialties 4Q 2020 Adjusted & Other Adjusted Pre-Tax Income Pre-Tax Income 181 40 4Q 2020 28
Slide 29: 4Q 2020 Corporate & Other Adjusted Pre-Tax Loss
4Q 2020 Corporate & Other Adjusted Pre-Tax Loss 4Q 2020 VS. 4Q 2019 ($MM) 4Q 2019 Net Interest Corporate 4Q 2020 Adjusted Expense Overhead Adjusted Pre-Tax Loss & Other Pre-Tax Loss (211) (235) 9 (33) 29
Slide 30: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2020 2019 Year 4Q 3Q Year 4Q Phillips 66 Consolidated Earnings (Loss) $ (3,975) (539) (799) 3,076 736 Pre-Tax Adjustments: Pending claims and settlements (37) — — (21) — Pension settlement expense 81 26 17 — — Impairments 4,241 96 1,13
Slide 31: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2020 2019 Year 4Q 3Q Year 4Q Midstream Pre-Tax Income (Loss) $ (9) 223 146 684 405 Pre-Tax Adjustments: Pension settlement expense 9 1 3 — — Lower-of-cost-or-market inventory adjustments 1 — — — — Hurricane-related costs 4 3 1 — — Impa
Slide 32: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2020 2019 Year 4Q 3Q Year 4Q Refining Pre-Tax Income (Loss) $ (6,155) (1,113) (1,903) 1,986 345 Pre-Tax Adjustments: Pending claims and settlements — — — (21) — Asset dispositions — — — (17) — Certain tax impacts (6) (6) — — — Pension
Slide 33: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2020 2019 Year 4Q 3Q Year 4Q Corporate & Other Pre-Tax Loss $ (881) (226) (239) (804) (211) Pre-Tax Adjustments: Asset dispositions (9) (9) — — — Pension settlement expense 4 — 1 — — Impairments 25 — 25 — — Certain tax impacts (8) — —
Slide 34: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2020 2019 Year 4Q 3Q Year 4Q Midstream - Transportation Pre-Tax Income (Loss) $ 508 97 (3) 946 250 Pre-Tax Adjustments: Impairments 300 96 204 — — Hurricane-related costs 4 3 1 — — Asset dispositions (84) — — — — Adjusted Pre-Tax Incom
Slide 35: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2020 2019 Year 4Q 3Q Year 4Q Chemicals - Olefins & Polyolefins Pre-Tax Income $ 692 204 241 819 131 Pre-Tax Adjustments: Lower-of-cost-or-market inventory adjustments (65) (7) (95) 65 23 Pension settlement expense 18 18 — — — Hurricane
Slide 36: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2020 2019 Year 4Q 3Q Year 4Q Refining - Atlantic Basin / Europe Pre-Tax Income (Loss) $ (1,224) (161) (199) 608 61 Pre-Tax Adjustments: Certain tax impacts (6) (6) — — — Impairments 441 — — — — Asset dispositions — — — (17) — Pension s
Slide 37: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2020 2019 Year 4Q 3Q Year 4Q Refining - Central Corridor Pre-Tax Income (Loss) $ (641) (178) (132) 1,338 333 Pre-Tax Adjustments: Pending claims and settlements — — — (21) — Impairments 435 — — — — Pension settlement expense 10 1 3 — —
Slide 38: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2020 2019 Year 4Q 3Q Year 4Q Marketing & Specialties - Marketing & Other Pre-Tax Income $ 1,271 180 365 1,199 327 Pre-Tax Adjustments: Certain tax impacts — — — (90) (90) Pension settlement expense 6 1 1 — — Pending claims and settleme
Slide 39: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars (Except as Indicated) 4Q 2020 Atlantic Basin/ Central Europe Gulf Coast Corridor West Coast Worldwide Realized Refining Margins Loss before income taxes $ (161) (464) (178) (310) (1,113) Plus: Taxes other than income taxes 13 15 9 20 57 Depreciation, amor
Slide 40: Non-GAAP Reconciliations
Non-GAAP Reconciliations 2020 Numerator ($MM) Net Loss $ (3,714) After-tax interest expense 394 GAAP ROCE loss (3,320) After-tax special items 3,598 Adjusted ROCE earnings $ 278 Denominator ($MM) GAAP average capital employed1 $ 38,174 2020 GAAP ROCE (9)% 2020 Adjusted ROCE 1% 40 1) Capital employed
Slide 41: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars (Except as Indicated) Dec. 31, 2020 Phillips 66 Phillips 66 Phillips 66 Excluding Consolidated Partners1 Phillips 66 Partners Total Debt $ 15,893 3,909 11,984 Total Equity 21,523 2,512 19,011 Debt-to-Capital Ratio 42 % 39 % Total Cash $ 2,514 7 2,507 Net
Slide 42: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Millions of Dollars 4Q 2020 2020 Growth Sustaining Total Growth Sustaining Total Capital Expenditures and Investments Midstream $ 132 62 194 $ 1,470 216 1,686 Refining 95 144 239 329 487 816 Marketing & Specialties 14 20 34 114 59 173 Corporate & Other 1
Slide 43: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2020 4Q Year Effective Tax Rates Loss before income taxes $ (691) (4,964) Special items 109 4,181 Adjusted loss before income taxes $ (582) (783) Income tax benefit $ (197) (1,250) Special items 48 583 Adjusted income tax benefit $ (14