Phillips 66 · NYSE:PSX
Phillips 66 — Investor Day (November 2022)
65 slides from Phillips 66's investor day presentation, Nov 9, 2022
Slide 1: Fractionators at Sweeny Hub
Fractionators at Sweeny Hub OLD OCEAN, TX
Slide 2: Welcome to Phillips 66 Investor Day 2022
Slide 3: Welcome
Jeff Dietert VICE PRESIDENT, INVESTOR RELATIONS Welcome
Slide 4: 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,” “goal,” “project,”
Slide 5: Investor Day Agenda
a Investor Day Agenda Presentation and Q&A 8:30-11 a.m. TOPIC SPEAKER Welcome Jeff Dietert Deliver Shareholder Returns Mark Lashier Improve Refining Performance Richard Harbison Capture Value from Wellhead to Market Tim Roberts Execute Business Transformation David Erfert Maintain Financial Strength
Slide 6: Deliver Shareholder Returns
Mark Lashier PRESIDENT AND CEO Deliver Shareholder Re
Slide 7: Leadership Team
Leadership Team From left to right: Sonya Reed, Jeff Dietert, Tandra Perkins, Richard Harbison, Zhanna Golodryga, Tim Roberts, Mark Lashier, Kevin Mitchell, Vanessa Sutherland, Brian Mandell, Todd Denton, David Erfert 2022 Investor Day 7
Slide 8: Safety. Honor. Commitment.
Safety. Honor. Commitment. Providing Energy. Improving Lives. Our Energy In Action es a: GOOD ENEF -‘E >) om
Slide 9: Deliver Shareholder Returns
( ©] Deliver Shareholder Returns alo Improve Refining Performance ? Capture Value from Wellhead to Market Wma Execute Business Transformation 1S) Maintain Financial Strength and Flexibility Ail Drive Disciplined Growth and Returns Ponca City Refinery PONCA CITY, OK Day 9 @ 2022 In
Slide 10: Deliver Shareholder Returns
>| Deliver Shareholder Returns | San Francisco Refinery RODEO, CA
Slide 11: Improve Refining Performance
Improve Refining Performance +£5% market capture 98% ee id availability “$0.75 / BBL annual cost savings of $500 MM Humber Refinery NORTH LINCOLNSHIRE, UNITED KINGDOM 2022 Investor Day 11 (GB) _ See appendix for footnotes
Slide 12: Deliver Shareholder Returns
<> Deliver Shareholder Returns lo Improve Refining Performance $ P Capture Value from Wellhead to Market adjusted EBITDA uplift from DEB Pe Oo Dx Execute Business Transformation Maintain Financial Strength and Flexibility %) Ail Drive Disciplined Growth and Returns GB see appendix for footnotes 2022
Slide 13: Deliver Shareholder Returns
Deliver Shareholder Returns Improve Refining Performance $800 MM cost reduction Capture Value from Wellhead to Market Execute Business Transformation Billing inery BILLINGS, MT
Slide 14: Deliver Shareholder Returns
Deliver Shareholder Returns Improve Refining Performance Capture Value from Wellhead to Market Execute Business Transformation Maintain Financial Strength and Flexibility Phillips 66 Branded Site ST. LOUIS, MO r Day 14 2022 In See appendix for footnotes
Slide 15: Deliver Shareholder Returns
(] u) can Deliver Shareholder Returns Improve Refining Performance Capture Value from Wellhead to Market Execute Business Transformation Maintain Financial Strength and Flexibility Drive Disciplined Growth and Returns ;
Slide 16: Proven Track Record of Distributing Cash to Shareholders
a Proven Track Record of Distributing Cash to Shareholders Cumulative Distributions ($B) I Dividends $30 B Il Share Repurchases and Exchanges 40 - 42 —— 30 ~otil l l l shareholder distributions since 2012 2013, 1H 22 2024 18% dividend CAGR Dividend Growth ($ per share) 3.83 re) >40% 1.33 shareholder
Slide 17: NGLs and petrochemical feedstocks are the fastest growing segment
NGLs and petrochemical feedstocks are the fastest growing segment of liquids demand Petrochemical demand outpaces GDP growth 2022 Investor Day 177
Slide 18: Financial Flexibility
Financial Flexibility $10 -12B shareholder distributions by YE 2024 $3B adjusted EBITDA growth by 2025 ‘San Francisco Refinery RODEO, CA See appendix for footnotes 2022 - 2025 Mid-Cycle Adjusted CFO IB Sustaining Capital IB Dividends IB Discretionary $10 B $7B Mid-Cycle 22 Mid-Cycle 25 2022 Investor
Slide 19: Deliver Shareholder Returns
( ©] Deliver Shareholder Returns alo Improve Refining Performance ? Capture Value from Wellhead to Market Wma Execute Business Transformation 1S) Maintain Financial Strength and Flexibility Ail Drive Disciplined Growth and Returns Ponca City Refinery PONCA CITY, OK r Day 19 @ 2022 In
Slide 20: Richard Harbison
Richard Harbison SENIOR VICE PRESIDENT, REFINING
Slide 21: Improve Refining Performance
Improve Refining Performance Po +5% market capture 98% ee id availability “$0.75 / BBL annual cost savings of $500 MM Humber Refinery NORTH LINCOLNSHIRE, UNITED KINGDOM 2022 Investor Day 21
Slide 22: Improve Refining Performance
Improve Refining Performance Maintain operating excellence Increase asset availability Enhance market capture Reduce operating cost Manage the portfolio See appendix for footnotes Industry Safety Metrics (Incidents per 200,000 hours worked) Agricul. Crop Prod. Bayway Refinery LINDEN, NJ Food Mfg. Al
Slide 23: Achieve 98% Availability by 2025
a Achieve 98% Availability by 2025 Turnaround improvement Asset reliability Low-capital, high-return projects fede unit availability focus areas Refining Crude Capacity Utilization (%) ‘ BB Phillips 66 90 92 US. Industry Average 2018 2019 2020 2021 3Q 22 86 ' i I lal YTD GB See appendix for footnote
Slide 24: Enhance Market Capture
— Enhance Market Capture Utilization and Reliability Crude Advantage Clean Product Yield al Market Ferndale capture Billings opportunity i] areas Product Value Bayway al West Coast Atlantic Basin / Europe EUROPE Vol Gai a 364 MBD 537 MBD onumewan Central Corridor wood River ‘San Francisco 531 MBD ‘a
Slide 25: Integration and Connectivity Key to Full Value Capture
a Integration and Connectivity Key to Full Value Capture Wellhead i Borger caste Refinery Des Moines@ Lincoln @ (a) “\ Kanes City Hartford a Wood — > 4 Ponca City Products é & aRIver Refinery Pipelines Paola Wichita N.~ 4a N ies 7 | s. 4d © Mount Vernon | | iter& cry = | rn ‘al Borger e Glenpoo! ein
Slide 26: Competitive Low-Cost Operator
Competitive Low-Cost Operator Organization Third Party Energy Maintenance Turnaround Operations Spend Efficiency wai j $0.75 / BBL annual cost savings of $500 MM
Slide 27: Enable Long-Term Competitiveness
a Enable Long-Term Competitiveness Maintain operating excellence Increase asset availability Enhance market capture Reduce operating cost Manage the portfolio World-class operations competing in any market environment =
Slide 28: Capture Value from Wellhead to Market
Tim Roberts EXECUTIVE VICE PRESIDENT, MIDSTREAM AND CHEMICALS Capture Value from Wellhead to Market
Slide 29: Deliver Shareholder Returns
<> Deliver Shareholder Returns lo Improve Refining Performance $ P Capture Value from Wellhead to Market adjusted EBITDA uplift from DEB Pe Oo Dx Execute Business Transformation Maintain Financial Strength and Flexibility %) Ail Drive Disciplined Growth and Returns GB see appendix for footnotes 2022
Slide 30: Capture Value from Wellhead to Market
Capture Value from Wellhead to Market Supportive macroeconomic backdrop Simplified structure Business transformation driving lower operating and capital expenses Midstream platform for growth Driving value through DCP integration
Slide 31: Supportive Demand Outlook
a Supportive Demand Outlook NGLs and petrochemical feedstocks are the fastest growing segment of liquids demand NGL demand outpaces crude oil globally Midstream infrastructure needed to support domestic NGL production growth Increasing international demand for LPG Strong domestic demand for ethane 2
Slide 32: DCP Assets Strengthen NGL Footprint
a DCP Assets Strengthen NGL Footprint Increases Midstream NGL operational size and scale Extends participation in full NGL value chain Conway Establishes platform for growth Port Arthur » 4 +. Mont Belvieu* (3) ‘ Freeport Clemens Caverns Sweeny (4) 2022 Investor Day 32 See appendix for legend
Slide 33: Integration from Wellhead to Market Enhances Value
— Integration from Wellhead to Market Enhances Value @ wt head @) ian @) Sand Hills (2) Lake Charles i} (2) S ‘Tl Fracs Dock iV \ Freeport \ ‘Clemens Caverns (at. Sweeny 1, 2, 3, 4 Sweeny Ethane PE (a (i (a B See appendix for legend 2022 Investor Day 33
Slide 34: Diversified and Stable Earnings
Diversified and Stable Earnings Top-quartile safety performance Portfolio highly integrated with Refining and Marketing , Assets backed by long-term, fee-based contracts 4 Strong earnings Competitive cost position generation through the cycle Digital innovation Midstream platform for growth ferminal
Slide 35: Execute Business Transformation
David Erfert SENIOR VICE PRESIDENT, CHIEF TRANSFORMATION OFFICER Execute [ Business Transformation
Slide 36: Deliver Shareholder Returns
Deliver Shareholder Returns Improve Refining Performance Capture Value from Wellhead to Market Execute Business Transformation $800 MM cost reduction Billings Refinery BILLINGS, MT 2022 Investor Day 36
Slide 37: Sustainably Transform Our Cost Structure
a Sustainably Transform Our Cost Structure Organization committed to reducing costs 9 9 Estimated Sources of Savings by YE 2023 Refining Operating and SG&A Expenses $500 MM Utilize structured process Drive savings to bottom line Other Operating and SG&A Expenses $200 MM 7 B Freight Costs $100 MM Sus
Slide 38: Drivers of $1 Billion of Cost Savings
a Drivers of $1 Billion of Cost Savings Third Party Spend Leverage economies of scale Supplier consolidation Contract optimization Operations Energy efficiency Turnaround improvements Industry best practices Organization Design Rationalize Centralize Standardize General Automation Eliminate redundan
Slide 39: Right-Size Organization
a Right-Size Organization Driving leaner organization since 2019 Focus capabilities to achieve strategic objectives Standardize, centralize and automate More efficient, agile and lower cost organization See appendix for footnotes Phillips 66 Employees 14,500 14,300 14,000 <12,900 2019 2020 2021 2022
Slide 40: Transform for a Sustainable, Competitive Future
a Transform for a Sustainable, Competitive Future Lower-cost operating model Estimated Annualized Run Rate Cost Savings IB Refining Operating and SG&A Expenses . . ape. . 0) Other Operating and SG&A Expenses Empower innovation and agility mindset I Freight Costs ~$1B IB Sustaining Capital Sustainabl
Slide 41: Maintain Financial Strength and Flexibility
Kevin Mitchell EXECUTIVE VICE PRESIDENT, CHIEF FINANCIAL OFFICER Maintain Financial Stre and Flexibility
Slide 42: Deliver Shareholder Returns
Deliver Shareholder Returns Improve Refining Performance Capture Wellhead to Market Value Execute Business Transformation Maintain Financial Strength and Flexibility Phillips 66 Branded Site ST. LOUIS, MO r Day 42
Slide 43: Financial Strength and Flexibility
— Financial Strength and Flexibility Peer-leading investment grade credit rating Disciplined capital allocation Secure, competitive and growing dividend Intrinsic value approach to share repurchases
Slide 44: Peer-Leading Balance Sheet
a Peer-Leading Balance Sheet A3/BBBt credit rating Phillips 66 Consolidated Debt Maturity Profile ($B) Phillips 66 Bonds Ml pcp Bonds Strong cash flow generation L 1Phillips 66 Revolving Credit Facility Il DCP Junior Subordinated Debt 1 DCP Credit and Accounts Receivable Facilities More than $10 B i
Slide 45: Distributions to Shareholders
Distributions to Shareholders 151% initial Phillips 66 market cap returned 18% dividend CAGR $30 B shareholder distributions since 2012 $10 -12B shareholder distributions by YE 2024 {GZ}. see appendix for footnotes Cumulative Distributions ($B) I Dividends Il Share Repurchases and Exchanges 40-42 30
Slide 46: Value Creation
| Value Creation 2022 - 2025 Mid-Cycle Adjusted EBITDA $138 $1.1B | midstream value capture son [i $0.8 B lower cost structure $0.7 B Mid-Cycle Midstream Cost Savings Rodeo Renewed Chemicals Mid-Cycle 2 * Rodeo Renewed See appendix for footnotes 2022 Investor Day 46,
Slide 47: Strong Cash Generation Supports Distributions
a Strong Cash Generation Supports Distributions 2022 - 2025 Mid-Cycle Adjusted CFO $. 4 7 B m= I Sustaining Capital I Dividends Bf Discretionary $10 B available for share repurchases, debt reduction and growth $7B ro) >40% for shareholder distributions Mid-Cycle 22 Mid-Cycle 25 (Gj) See appendix for
Slide 48: Financial Strength and Flexibility
Financial Strength and Flexibility Cash flow growth Disciplined capital allocation Strong balance sheet Commitment to shareholder returns Competitive return on investment Phillips 66 Flagship Site HOUSTON, TX $10 B 2025 mid-cycle adjusted CFO $10 -12B shareholder distributions by YE 2024 25 - 30% ne
Slide 49: Drive Disciplined Growth and Returns
Mark Lashier PRESIDENT AND CEO Drive Disciplined Grov and Returns
Slide 50: Deliver Shareholder Returns
(] u) can Deliver Shareholder Returns Improve Refining Performance Capture Value from Wellhead to Market Execute Business Transformation Maintain Financial Strength and Flexibility Drive Disciplined Growth and Returns ;
Slide 51: Demand Growth Drives Need for World-Scale Projects
a Demand Growth Drives Need for World-Scale Projects U.S. Gulf Coast II Ras Laffan Petrochemical Project 2,080 KTA 2,080 KTA 51% ethane cracker 30% ethane cracker CPChem CPChem interest 2,000 KTA interest 1,680 KTA HDPE capacity HDPE capacity Final investment decision in 4Q 2022 Final investment dec
Slide 52: Returns Focused Approach to Energy Transition
Returns Focused Approach to Energy Transition Focus on renewable fuels opportunities returns technologies regulatory environments partners time Francisco Refinery RODEO, CA 2022 Investor Day 52
Slide 53: Support Sustainable Business Practices
Support Sustainable Business Practices Environmental Targets to lower GHG emissions intensity from 2019 baseline 50% scope 1 and 2 by 2030 15% scope 3 by 2030 50% scope 1 and 2 by 2050 Social @ Governance Since 2012: Active 592,000 hours in shareholder engagement volunteered program $250 MM 85% : in
Slide 54: Integrated, Diversified Portfolio
— Integrated, Diversified Portfolio Ferndale 22,000 é of", ‘Ne miles of U.S. pipeline systems @ «> BN om 600+ MBD gS = NGL fractionation capacity \ ee i global CPChem manufacturing and \ San Fi 5 research facilities an Francisco \ A - 2 MMBD e ay Los Angeles crude capacity in the U.S. and Europe 7,1
Slide 55: $10 - $12 B shareholder distributions by YE 2024
<p) $10 - $12 B shareholder distributions by YE 2024 $5 B additional share repurchase authorization +5% market capture fo 0 $0.75/bblI cost savings $1B adjusted EBITDA uplift from DCP 5.4 BCF/D net natural gas capacity ay $800 MM cost reduction yes $200 MM reduced sustaining capital $3 B adjusted EB
Slide 56: Fractionators at Sweeny Hub
Fractionators at Sweeny Hub OLD OCEAN, TX
Slide 57: Fractionators at Sweeny Hub
Fractionators at Sweeny Hub OLD OCEAN, TX
Slide 58: Fractionators at Sweeny Hub
Fractionators at Sweeny Hub OLD OCEAN, TX
Slide 59: Value Chain
a Value Chain GLOBAL MARKETS Renewable Feedstocks ¢ Oris Terminal, Transportation Fuels Rail Refineries Storage (Conventional, Renewable) ZA, Needle Coke Sy, bubricants, ® Specialty Products Be) Petrochemicals Truck Crude Oil Ba xm Pipelines Marine Rail Truck cPChem Chemical Facilities Wellhead Gath
Slide 60: Our Energy In Action
Our Energy In Action 2022 Investor Day 60
Slide 61: Offer to Acquire DCP Midstream Public Units
— Offer to Acquire DCP Midstream Public Units Additional Information and Where You Can Find It This communication does not constitute a solicitation of any vote or approval with respect to the proposed transaction between Phillips 66 and DCP Midstream, LP (“DCP Midstream”). This communication relate
Slide 62: Legend
— Legend Maps Maps, images and drawings are for informational purposes only and may not be to scale. Slide 24,25,33,54 legend © Batteries" @ Coke Facility @ cPchem i] cPChem Facility (O&P) @ /— Crude Terminal/Pipeline all / @ Fractionator & Gas Plant @ Hydrogen Fueling” © Lubricants Facility maaal,
Slide 63: Footnotes
a Footnotes Date Conventions 21is as of December 31, 2021, or the twelve-month period ended December 31, 2021 as applicable; except as otherwise noted. 1H 22 is as of June 30, 2022, or the six-month period ended June 30, 2022 as applicable; except as otherwise noted. 3Q 22 is as of September 30, 202
Slide 64: Footnotes
a Footnotes Deliver Shareholder Returns Cumulative distributions since May 2012, includes 2014 PSPI share exchange. Percentage returned is based on adjusted cash from operating activities. Dividend CAGR calculated from initial dividend of $0.20 per share in 3Q 2012 to the latest increase, $0.97 per
Slide 65: Footnotes
a Footnotes Greenhouse Gas Emissions Reduction Targets Definitions and additional details available in the 2022 Sustainability Report. The baseline year is 2019 since it is the most recent year with normal operating conditions, pre-pandemic, that is representative of our current assets. Ernst & Youn