Phillips 66 · NYSE:PSX
Phillips 66 — Investor Presentation (May 2023)
48 slides from Phillips 66's investor presentation, May 19, 2023
Slide 1: Investor Update May 2023
(66) PROVIDING ENERGY. IMPROVING LIVES. Investor Update | | MAY 2023
Slide 2: phillips66.com/investors
phillips66.com/investors.
Slide 3: Integrated Network of Businesses and Assets
— Integrated Network of Businesses and Assets (fa) Midstream thousand miles of 71 U.S. pipeline systems Provides crude oil and refined product transportation, terminaling and processing services, as well as natural gas and NGL transportation, storage, fractionation, gathering and processing and mark
Slide 4: Diversified, Integrated Portfolio
Diversified, Integrated Portfolio Ferndale. San Francisco Los Angeles: GLOBAL ASSETS MAP LEGEND @ Batteries @ Coke Facility @ cPchem Bi cPChem Facility (08) @ /— Crude Terminai/Pipeline B Fractionator ‘& Gas Plant © Hycrogen Fueling © Lubricants Facility @ /— NGL/LPG Terminal/Pipeline {J NGL/LPG Und
Slide 5: Executing the Strategy
a Executing the Strategy Enabling Long-Term Value Creation and Positioning for the Future Mission Strategy Providing Energy. Improving Lives. Operating Excellence Committed to safety, environmental stewardship, sustainability, reliability and cost efficiency, while protecting shareholder value Value
Slide 6: Operating Excellence
a Operating Excellence Total Recordable Rates Industry A e Industry Safety Metrics (Incidents per 200,000 hours worked) neustry Average (Incidents per 200,000 hours worked) Ee = = a = Food Agricul., All Construction Petchem. Prof. Petroleum Phillips 66 Manufact. Crop Manufact. Manufact. &Bus. Refini
Slide 7: Strategic Priorities
a Strategic Priorities y Deliver Shareholder Returns L® N va First Quarter Highlights $3.7 B shareholder distributions since July 2022 On track to meet $10 B - $12 B by YE 2024 al i Improve Refining Performance Above industry-average crude utilization 93% market capture Transitioned DCP employees to
Slide 8: Sustainably Transform Our Cost Structure
a Sustainably Transform Our Cost Structure Estimated Annualized Freight Costs . . . . Run Rate m= Other Operating and SG&A Expenses Organization committed to reducing costs Cost Savings & Refining Operating and SG&A Expenses ($MM) @ Sustaining Capital Sustainable cost reductions driven to bottom lin
Slide 9: Adjusted EBITDA Growth
— Adjusted EBITDA Growth 2022 - 2025 Mid-Cycle Adjusted EBITDA ($B) Mid-cycle EBITDA growth of over $3 B by 2025 33 | Capture value from Wellhead-to-Market through = DCP EBITDA uplift and synergies $10 || Business Transformation cost savings Rodeo Renewed Midcycle Midstream Cost Savings Ree Chemical
Slide 10: Value Creation Supports Distributions
a Value Creation Supports Distributions = Sustaining Capital Strong balance sheet and investment grade credit Adiusted CFO Capital Allocation = Dividends ratings ($B) Discretionary $10 Sustaining capital for asset integrity, safety and environmental projects Secure, competitive and growing dividend
Slide 11: Midstream
PHILLIPS PROVIDING ENERGY. IMPROVING LIVES. Midstream |
Slide 12: Enhanced Midstream Business
| Enhanced Midstream Business Top-quartile safety performance Adjusted EBITDA’ = Transportation ($B) = NGL & Other DCP assets increase NGL operational size and 22 1s 21 27 scale : _ Co = Extend participation in full NGL value chain 19 20 21 2 1023 Portfolio highly integrated with Refining and Market
Slide 13: Economic Interests in DCP Midstream
| Economic Interests in DCP Midstream Public buy-in increases Phillips 66 economic interest in DCP to ~-87% da Midstream_Economic InterestsinDCP $1 billion uplift to Phillips 66 adjusted EBITDA Before Post | Post H Transactions Realignment | Public Buy-In H 8/17/2022 | ! air . . LIPS q Capture at le
Slide 14: Wellhead to Market Integrated NGL Value Chain
a Wellhead to Market Integrated NGL Value Chain DCP Gathering & Processing and Logistics & Marketing system integrated with Phillips 66 NGL value chain Assets located in key growth basins Provides upstream customers with full wellhead to market service Sweeny/, old OceanS( me ‘Orange he aN Port Arth
Slide 15: Chemicals
PHILLIPS PROVIDING ENERGY. IMPROVING LIVES. Chemicals |
Slide 16: Chevron Phillips Chemical
a Chevron Phillips Chemical Industry-leading safety performance Adjusted EBITDA! ($B) Proprietary technology Advantaged feedstock portfolio Global marketing network Debottleneck opportunities — [osm 19 20 21 22 1Q23 Capital Expenditures and Investments! ®= Sustaining Olefins and Polyolefins Capacity
Slide 17: Chemicals Outlook
| Chemicals Outlook CPChem portfolio well-positioned for access to advantaged feedstock with heavy footprint in North America and Middle East Expanding global middle class is increasing demand forecast for polyethylene at a 3.5% CAGR Meeting strong demand for food packaging, medical supplies and oth
Slide 18: Demand Growth Drives World-Scale Projects
Demand Growth Drives World-Scale Projects Golden Triangle Polymer Project World-scale ethylene and polyethylene facilities on US Gulf Coast expected to start up in 2026 CPChem 51% equity interest 4.6 B pounds per year ethane cracker; two high-density polyethylene units with a combined capacity of 4.
Slide 19: Refining
Refining | a wu 2 a oso = e 6 n” = a. = = = — > = = a wi = wu cs = 2 => o c a
Slide 20: Improve Refining Performance
Improve Refining Performance Maintain operating excellence Increase asset availability Enhance market capture Reduce operating costs by $0.75/bbl Manage the portfolio Low-capital, high-return projects Adjusted EBITDA ($B) = 19 20 21 22 1Q23 Capital Expenditures and Investments m Sustaining ($B) mRet
Slide 21: Enhance Market Capture
a Enhance Market Capture Western Canadian Eastern Canadian Crude +5% market capture +3400 MM realized margin improvement in mid-cycle conditions West Coast > al ee 319 MB . Atlantic AA San Francisco all 0, Basin / Europ: "* rood River 537 MBD x », "Central Corridor 1 iipgeta city 531 MBD Los Angeles
Slide 22: Rodeo Renewed
| Rodeo Renewed One of the World’s Largest Renewable Fuels facilities expected to begin commercial operations in 1@ 2024 Constructing pre-treatment units and repurposing existing hydro-processing units to process renewable feedstocks * Capital efficient project that leverages existing units * Build
Slide 23: Marketing & Specialties
2 i = ns PROVIDING ENERGY. IMPROVING LIVES. - =| = ss Marketing & Specialties
Slide 24: Optimizing M&S Returns
a Optimizing M&S Returns Consistent high-return, low-capital business Adjusted EBITDA ($B) Product placement for Refining Expanded U.S. retail presence through JV’s js | oe jos a pos | 19 20 21 22 Distribution of renewable fuels 102s Capital Expenditures and Investments Leverage brand strength ($B)
Slide 25: Financial Strategy
PHILLIPS PROVIDING ENERGY. IMPROVING LIVES. Financial Strategy
Slide 26: 45.0 45% 40.0 40% 35.0 35% 30.0 30% 25.0 25% 20.0 20% 15.0 5%
45.0 45% 40.0 40% 35.0 35% 30.0 30% 25.0 25% 20.0 20% 15.0 15% 10.0 10% 5.0 5% - 0%
Slide 27: Consolidated Debt and Liquidity
| Consolidated Debt and Liquidity $18.5 B Total Debt as of March 31, 2023 DCP Junior Subordinated Debt . . =DCP Credit and AR Facility Debt Maturity Profile =PSX Revolving Credit Facility as of March 31, 2023 = DCP Bonds $14.7 B in available liquidity ($B) = PSX Bonds ° $7.0 B Cash 19 * $6.2 B capac
Slide 28: Sustaining Refining & Marketing
Sustaining Midstream Refining & PSXP Marketing
Slide 29: Distributions
| Distributions Progressing toward its target of $10 B to $12B in the 10-quarter period ending 2024 ° $3.7 B returned to shareholders through 3 quarters Secure, competitive and growing dividend * 17% CAGR with twelve increases!:2 * Increased quarterly dividend by 8% in 1Q Committed to shareholder di
Slide 30: Sustainable Business Practices
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 See appendix for footnotes Social 680,000 hours volunteered since 2012 $280 MM invested in our communities since 2012 42% o
Slide 31: Slide 31
Slide 32: Annual Adjusted EBITDA Sensitivities
Annual Adjusted EBITDA $MM (1) Midstream - DCP (net to Phillips 66) (2) 10¢/Gal Increase in NGL price 45 / 85 10¢/MMBtu Increase in Natural Gas price 3/5 $1/BBL Increase in WTI price 2/4 Chemicals - CPChem (net to Phillips 66) 1¢/Lb Increase in Chain Margin (Ethylene, Polyethylene, NAO) 65 Worldwide
Slide 33: Our Energy In Action
— Our Energy In Action our company
Slide 34: Footnotes
a Footnotes General Information disclosed is as of March 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. Date Conventions 22 is as of December 31, 2022, or th
Slide 35: Footnotes
a Footnotes Operating Excellence Industry averages are from: Phillips 66 - American Fuel & Petrochemical Manufacturers (AFPM) refining data, Chevron Phillips Chemical LLC (CPChem) - American Fuel & Petrochemical Manufacturers (AFPM) chemicals data, DCP Midstream, LLC (DCP Midstream) - Gas Processors
Slide 36: Footnotes
a Footnotes Economic Interests in DCP Midstream Affiliates of Phillips 66, as the holders of a majority of the outstanding DCP common units, have delivered their consent to approve the transaction. As a result, DCP has not solicited and is not soliciting approval of the transaction by any other hold
Slide 37: Non-GAAP Reconciliation
Non-GAAP Reconciliation Millions of Dollars 2019 2020 2021 2022 1Q 2023 Reconciliation of Phillips 66 Net Income (Loss) to Adjusted EBITDA Phillips 66 net income (loss) $ 3,377 (3,714) 1,594 11,391 2,077 Plus: Income tax expense (benefit) 801 (1,250) 146 3,248 574 Net interest expense 415 485 583 53
Slide 38: Non-GAAP Reconciliation
Non-GAAP Reconciliation Millions of Dollars 2019 2020 2021 2022 1Q 2023 Reconciliation of Phillips 66 Net Income (Loss) to Adjusted EBITDA (cont'd) Phillips 66 EBITDA, Adjusted for Special Items and Change in Fair Value of NOVONIX Investment*, 4 6,771 1,105 5,159 14,493 3,274 Other Adjustments (pre-
Slide 39: Non-GAAP Reconciliation
Non-GAAP Reconciliation Millions of Dollars 2019 2020 2021 2022 1Q 2023 Reconciliation of Midstream Pre-Tax Income (Loss) to Adjusted EBITDA Midstream pre-tax income (loss) $ 597 (116) 1,500 4,734 702 Plus: Depreciation and amortization 291 313 425 568 224 Midstream EBITDA* 888 197 1,925 5,302 926 S
Slide 40: Non-GAAP Reconciliation
Non-GAAP Reconciliation Millions of Dollars 2019 2020 2021 2022 1Q 2023 Reconciliation of Midstream - Transportation Pre-Tax Income to Adjusted EBITDA Midstream pre-tax income $ 947 508 678 1,176 306 Plus: Depreciation and amortization 152 159 234 174 40 Midstream EBITDA* 1,099 667 912 1,350 346 Spe
Slide 41: Non-GAAP Reconciliation
Non-GAAP Reconciliation Millions of Dollars 2019 2020 2021 2022 1Q 2023 Reconciliation of Midstream - NGL & Other Pre-Tax Income (Loss) to Adjusted EBITDA Midstream pre-tax income (loss) $ (350) (624) 452 4,000 408 Plus: Depreciation and amortization 139 154 191 394 184 Midstream EBITDA* (211) (470)
Slide 42: Non-GAAP Reconciliation
Non-GAAP Reconciliation Millions of Dollars 2019 2020 2021 2022 1Q 2023 Reconciliation of Chemicals Pre-Tax Income to Adjusted EBITDA Chemicals pre-tax income $ 879 635 1,844 856 198 Plus: None — — — — — Chemicals EBITDA 879 635 1,844 856 198 Special Item Adjustments (pre-tax): Impairments by equity
Slide 43: Non-GAAP Reconciliation
Non-GAAP Reconciliation Millions of Dollars 2019 2020 2021 2022 1Q 2023 Reconciliation of Refining Pre-Tax Income (Loss) to Adjusted EBITDA Refining pre-tax income (loss) $ 2,132 (6,022) (2,353) 7,816 1,608 Plus: Depreciation and amortization 867 896 984 866 202 Refining EBITDA* 2,999 (5,126) (1,369
Slide 44: Non-GAAP Reconciliation
Non-GAAP Reconciliation Millions of Dollars 2019 2020 2021 2022 1Q 2023 Reconciliation of Marketing & Specialties Pre-Tax Income to Adjusted EBITDA Marketing and Specialties pre-tax income $ 1,374 1,421 1,723 2,402 426 Plus: Depreciation and amortization 103 103 113 110 27 Marketing & Specialties EB
Slide 45: Non-GAAP Reconciliation
Non-GAAP Reconciliation Millions of Dollars 2019 2020 2021 2022 2023 Budget Proportional Share of Select Equity Affiliates Capital Expenditures and Investments* CPChem (Chemicals) Growth $ 155 104 191 499 702 Sustaining 227 180 176 202 223 Total 382 284 367 701 925 WRB (Refining) 175 175 229 177 216
Slide 46: Non-GAAP Reconciliation
Non-GAAP Reconciliation Millions of Dollars 2019 2020 2021 2022 2023 Budget Phillips 66 Capital Expenditures and Investments* Midstream Growth $ 1,549 1,471 501 744 310 Sustaining 251 204 232 299 329 Total 1,800 1,675 733 1,043 639 Refining Growth 464 328 280 477 729 Sustaining 606 499 504 451 389 T
Slide 47: Non-GAAP Reconciliation
Non-GAAP Reconciliation Millions of Dollars (Except as Indicated) 2019 2020 2021 2022 1Q 2023 Total Debt 11,763 15,893 14,448 17,190 18,485 Total Equity 27,169 21,523 21,637 34,106 34,916 Debt-to-Capital Ratio 30 % 42 % 40 % 34 % 35 % Total Cash 1,614 2,514 3,147 6,133 6,965 Net Debt-to-Capital Rati
Slide 48: Non-GAAP Reconciliation
Non-GAAP Reconciliation Millions of Dollars (Except as Indicated) 2019 2020 2021 2022 1Q 2023 Phillips 66 ROCE Numerator Net income (loss) 3,377 (3,714) 1,594 11,391 2,077 After-tax interest expense 362 394 459 489 151 GAAP ROCE earnings (loss) 3,739 (3,320) 2,053 11,880 2,228 After-tax special item