Slide 1: Third 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 Third Quarter 2021 Conference Call October 29, 2021 1 South Texas Gateway Terminal INGLESIDE, TX
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 CPChem Center Cedar Bayou Facility BARTLESVILLE, Humber OK SouthBAYTOWN, Texas Refinery Gateway TX Terminal N. LINCOLNSHIRE, U.K. INGLESIDE, TX 3
Slide 4: 3Q 2021 Overview
3Q 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) Adjusted earnings $ 1,403 Adjusted EPS1 3.18 Operating cash flow 2,203 Capital expenditures and investments
Slide 5: 3Q 2021 Adjusted Earnings
3Q 2021 Adjusted Earnings 3Q 2021 VS. 2Q 2021 ($MM) 2Q 2021 3Q 2021 Midstream Chemicals Refining Marketing Corporate Income Noncontrolling Adjusted Taxes Adjusted & Specialties & Other Interests Earnings Earnings 68 14 890 (191) (10) 326 1,403 (23) 329 642 634 184 547 (230) (286) (88) 3Q 2021 Adjust
Slide 6: 3Q 2021 Midstream Adjusted Pre-Tax Income
3Q 2021 Midstream Adjusted Pre-Tax Income 3Q 2021 VS. 2Q 2021 ($MM) 22 274 Investment in NOVONIX 30 642 Recently completed construction of C2G Pipeline 316 2Q 2021 Transportation NGL DCP 3Q 2021 Record NGL fractionation Adjusted & Other Midstream Adjusted volumes Pre-Tax Income Pre-Tax Income 254 35
Slide 7: 3Q 2021 Chemicals Adjusted Pre-Tax Income
3Q 2021 Chemicals Adjusted Pre-Tax Income 3Q 2021 VS. 2Q 2021 ($MM) 20 2 (45) Record O&P earnings Higher polyethylene sales volumes 657 634 Lower SA&S margins 102% O&P utilization 2Q 2021 Olefins & Specialties, Other 3Q 2021 Adjusted Polyolefins Aromatics & Adjusted Pre-Tax Income Styrenics Pre-Tax
Slide 8: 3Q 2021 Refining Adjusted Pre-Tax Income
3Q 2021 Refining Adjusted Pre-Tax Income 3Q 2021 VS. 2Q 2021 ($MM) 2Q 2021 Atlantic Gulf Central West 3Q 2021 Adjusted Basin / Coast Corridor Coast Adjusted Pre-Tax Loss Europe Pre-Tax Income 159 86% crude utilization 308 184 84% clean product yield 222 $8.57/BBL realized margin (706) 201 $81 MM tur
Slide 9: 3Q 2021 Refining Margins – Market vs. Realized
3Q 2021 Refining Margins – Market vs. Realized WORLDWIDE REFINING ($/BBL, UNLESS OTHERWISE NOTED) (3.89) 0.01 (1.98) 19.44 (5.01) 8.57 3Q 2021 Configuration Secondary Products Feedstock Other 3Q 2021 Market Realized 3:2:1 Margin Avg Market Crude: $71.95 44% Market Capture 9
Slide 10: 3Q 2021 Marketing & Specialties Adjusted Pre-Tax Income
3Q 2021 Marketing & Specialties Adjusted Pre-Tax Income 3Q 2021 VS. 2Q 2021 ($MM) 62 6 Continued strong margins 547 Improved demand 479 Refined product exports of 209 MBPD 2Q 2021 Marketing Specialties 3Q 2021 Adjusted & Other Adjusted Pre-Tax Income Pre-Tax Income 454 93 3Q 2021 10
Slide 11: 3Q 2021 Corporate & Other Adjusted Pre-Tax Loss
3Q 2021 Corporate & Other Adjusted Pre-Tax Loss 3Q 2021 VS. 2Q 2021 ($MM) 2Q 2021 Net Interest Corporate 3Q 2021 Adjusted Expense Overhead Adjusted Pre-Tax Loss & Other Pre-Tax Loss (244) (230) 21 (7) 11
Slide 12: Cash Flow
3Q 2021 Cash Flow $B 0.8 1.4 (0.5) (0.6) (0.4) 2.9 2.2 June 30, CFO Working Debt Capital Shareholder September 30, 2021 (excluding Capital Expenditures Distributions 2021 Cash 1 Working & Investments Cash 1 Balance Capital) Balance 12 1) Includes cash and cash equivalents
Slide 13: Outlook
Outlook South Texas Gateway Terminal INGLESIDE, TX Denver Terminal DENVER, CO 4Q 2021 Global Olefins & Polyolefins utilization Mid-90% Refining crude utilization Low-80% Refining turnaround expenses (pre-tax) $110 MM – $140 MM Corporate & Other costs (pre-tax) $240 MM – $250 MM Renewable Diesel Fuel
Slide 14: Questions and Answers
Phillips 66 Branded Marketing Site ST. LOUIS, MO Questions and Answers
Slide 15: Appendix
Phillips 66 Branded Marketing Site ST. LOUIS, MO Appendix
Slide 16: 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 17: YTD 2021 Cash Flow
YTD 2021 Cash Flow $B 1.7 2.5 (1.0) (1.3) (1.2) (0.3) 2.5 2.9 December 31, CFO Working Debt Capital Shareholder Other September 30, 2020 (excluding Capital Expenditures Distributions 2021 Cash Working & Investments Cash 1 1 Balance Capital) Balance 17 1) Includes cash and cash equivalents
Slide 18: Capital Structure
Capital Structure Consolidated PSX 42% 43% 43% 42% 41% 30% 38% 39% 29% 37% 27% 23% 27.2 27.2 21.5 20.5 20.6 20.6 15.9 15.4 15.4 14.9 11.2 11.8 3.0 1.6 2.5 1.4 2.2 2.9 2018 2019 2020 1Q 2Q 3Q 2021 2021 2021 Equity $B Debt $B Cash & Cash Equivalents $B Debt-to-Capital Net Debt-to-Capital 18
Slide 19: 3Q 2021 Refining Margins – Market vs. Realized
3Q 2021 Refining Margins – Market vs. Realized ATLANTIC BASIN / EUROPE ($/BBL, UNLESS OTHERWISE NOTED) Brent: $73.47 0.12 (4.20) (2.27) 91% crude utilization 19.43 (3.81) 9.27 48% market capture 3Q 2021 Configuration Secondary Feedstock Other 3Q 2021 Market Products Realized 3:2:1 Margin Market 3:2:
Slide 20: 3Q 2021 Refining Margins – Market vs. Realized
3Q 2021 Refining Margins – Market vs. Realized GULF COAST ($/BBL, UNLESS OTHERWISE NOTED) LLS: $71.51 (4.83) 0.53 (2.04) 17.70 80% crude utilization (5.61) 5.75 32% market capture 3Q 2021 Configuration Secondary Feedstock Other 3Q 2021 Market Products Realized 3:2:1 Margin Market 3:2:1 - LLS / Gasol
Slide 21: 3Q 2021 Refining Margins – Market vs. Realized
3Q 2021 Refining Margins – Market vs. Realized CENTRAL CORRIDOR ($/BBL, UNLESS OTHERWISE NOTED) WTI: $70.58 1.73 (2.71) (3.03) (3.87) 93% crude utilization 20.35 12.47 61% market capture 3Q 2021 Configuration Secondary Feedstock Other 3Q 2021 Market Products Realized 3:2:1 Margin Market 3:2:1 - WTI
Slide 22: 3Q 2021 Refining Margins – Market vs. Realized
3Q 2021 Refining Margins – Market vs. Realized WEST COAST ($/BBL, UNLESS OTHERWISE NOTED) ANS: $72.73 (2.78) (3.47) (0.05) 83% crude utilization 21.88 (8.12) 7.46 34% market capture 3Q 2021 Configuration Secondary Feedstock Other 3Q 2021 Market Products Realized 3:2:1 Margin Market 3:2:1 - ANS / Los
Slide 23: 3Q 2021 Adjusted Earnings
3Q 2021 Adjusted Earnings 3Q 2021 VS. 3Q 2020 ($MM) 130 1,154 (17) (638) (15) 502 1,403 288 (1) (1) 3Q 2020 Midstream Chemicals Refining Marketing Corporate Income Noncontrolling 3Q 2021 Adjusted & Specialties & Other Taxes Interests Adjusted Loss Earnings 642 634 184 547 (230) (286) (88) 3Q 2021 Ad
Slide 24: 3Q 2021 Midstream Adjusted Pre-Tax Income
3Q 2021 Midstream Adjusted Pre-Tax Income 3Q 2021 VS. 3Q 2020 ($MM) 255 (19) 52 642 354 3Q 2020 Transportation NGL & Other DCP 3Q 2021 Adjusted Midstream Adjusted Pre-Tax Income 254 357 31 Pre-Tax Income 3Q 2021 24
Slide 25: 3Q 2021 Chemicals Adjusted Pre-Tax Income
3Q 2021 Chemicals Adjusted Pre-Tax Income 3Q 2021 VS. 3Q 2020 ($MM) 32 5 465 634 132 3Q 2020 Olefins & Specialties, Other 3Q 2021 Adjusted Polyolefins Aromatics & Adjusted Pre-Tax Income Styrenics Pre-Tax Income 613 37 (16) 3Q 2021 25
Slide 26: 3Q 2021 Refining Adjusted Pre-Tax Income
3Q 2021 Refining Adjusted Pre-Tax Income 3Q 2021 VS. 3Q 2020 ($MM) 145 361 184 358 (970) 290 3Q 2020 Atlantic Gulf Central West Coast 3Q 2021 Adjusted Basin / Coast Corridor Adjusted Pre-Tax Loss Europe Pre-Tax Income 93 (31) 232 (110) 3Q 2021 26
Slide 27: 3Q 2021 Marketing & Specialties Adjusted Pre-Tax Income
3Q 2021 Marketing & Specialties Adjusted Pre-Tax Income 3Q 2021 VS. 3Q 2020 ($MM) 42 88 547 417 3Q 2020 Marketing Specialties 3Q 2021 Adjusted & Other Adjusted Pre-Tax Income Pre-Tax Income 454 93 3Q 2021 27
Slide 28: 3Q 2021 Corporate & Other Adjusted Pre-Tax Loss
3Q 2021 Corporate & Other Adjusted Pre-Tax Loss 3Q 2021 VS. 3Q 2020 ($MM) 3Q 2020 Net Interest Corporate 3Q 2021 Adjusted Expense Overhead Adjusted Pre-Tax Loss & Other Pre-Tax Loss (213) (230) — (17) 28
Slide 29: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2021 2020 Sep YTD 3Q 2Q Sep YTD 3Q Phillips 66 Consolidated Earnings (Loss) $ 44 402 296 (3,436) (799) Pre-Tax Adjustments: Impairments 1,496 1,298 — 4,145 1,139 Impairments by equity affiliates — — — 15 — Pending claims and settlement
Slide 30: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2021 2020 Sep YTD 3Q 2Q Sep YTD 3Q Midstream Pre-Tax Income (Loss) $ 1,017 629 312 (232) 146 Pre-Tax Adjustments: Impairments 208 10 — 1,365 204 Pension settlement expense 7 3 4 8 3 Hurricane-related costs — — — 1 1 Winter-storm-relate
Slide 31: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2021 2020 Sep YTD 3Q 2Q Sep YTD 3Q Refining Pre-Tax Loss $ (2,895) (1,126) (729) (5,042) (1,903) Pre-Tax Adjustments: Impairments 1,288 1,288 — 2,755 910 Pension settlement expense 32 12 20 38 12 Hurricane-related costs 10 10 — 11 11 W
Slide 32: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2021 2020 Sep YTD 3Q 2Q Sep YTD 3Q Corporate & Other Pre-Tax Loss $ (728) (231) (246) (655) (239) Pre-Tax Adjustments: Impairments — — — 25 25 Certain tax impacts — — — (8) — Pension settlement expense 3 1 2 4 1 Adjusted Pre-Tax Loss $
Slide 33: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2021 2020 Sep YTD 3Q 2Q Sep YTD 3Q Midstream - Transportation Pre-Tax Income (Loss) $ 475 244 224 411 (3) Pre-Tax Adjustments: Impairments 208 10 — 204 204 Hurricane-related costs — — — 1 1 Winter-storm-related costs 1 — — — — Asset di
Slide 34: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2021 2020 Sep YTD 3Q 2Q Sep YTD 3Q Chemicals - Olefins & Polyolefins Pre-Tax Income $ 1,318 611 562 488 241 Pre-Tax Adjustments: Impairments by equity affiliates — — — 15 — Pension settlement expense 18 2 16 — — Hurricane-related costs
Slide 35: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2021 2020 Sep YTD 3Q 2Q Sep YTD 3Q Refining - Atlantic Basin / Europe Pre-Tax Income (Loss) $ (173) 90 (110) (1,063) (199) Pre-Tax Adjustments: Impairments — — — 441 — Pension settlement expense 4 2 2 9 2 Hurricane-related costs 1 1 —
Slide 36: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2021 2020 Sep YTD 3Q 2Q Sep YTD 3Q Refining - Central Corridor Pre-Tax Income (Loss) $ (101) 229 (82) (463) (132) Pre-Tax Adjustments: Impairments — — — 435 — Pension settlement expense 9 3 6 9 3 Winter-storm-related costs 7 — — — — Ad
Slide 37: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2021 2020 Sep YTD 3Q 2Q Sep YTD 3Q Marketing & Specialties - Marketing & Other Pre-Tax Income $ 1,052 452 389 1,091 365 Pre-Tax Adjustments: Pending claims and settlements — — — (37) — Pension settlement expense 5 2 3 5 1 Adjusted Pre-
Slide 38: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars (Except as Indicated) 3Q 2021 Atlantic Basin/ Central Europe Gulf Coast Corridor West Coast Worldwide Realized Refining Margins Income (loss) before income taxes $ 90 (1,333) 229 (112) (1,126) Plus: Taxes other than income taxes 15 13 12 4 44 Depreciation
Slide 39: Non-GAAP Reconciliations
Non-GAAP Reconciliations 2021 Sep YTD Numerator ($MM) Net Income $ 223 After-tax interest expense 348 GAAP ROCE earnings 571 After-tax special items 1,232 Adjusted ROCE earnings $ 1,803 Denominator ($MM) GAAP average capital employed1 $ 36,462 2021 Annualized GAAP ROCE 2% 2021 Annualized Adjusted RO
Slide 40: Non-GAAP Reconciliations
Non-GAAP Reconciliations 40
Slide 41: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Millions of Dollars 3Q 2021 2021 Sep YTD Growth Sustaining Total Growth Sustaining Total Capital Expenditures and Investments Midstream $ 247 81 328 $ 428 141 569 Refining 53 105 158 198 330 528 Marketing & Specialties 11 17 28 37 35 72 Corporate & Other
Slide 42: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 3Q 2021 Effective Tax Rates Income before income taxes $ 448 Special items 1,329 Adjusted income before income taxes $ 1,777 Income tax expense $ (40) Special items 326 Adjusted income tax expense $ 286 GAAP effective tax rate (8.9)% A