Phillips 66 · NYSE:PSX
Phillips 66 — Shareholder Meeting (May 2019)
14 slides from Phillips 66's shareholder meeting presentation, May 8, 2019
Slide 1: 2019 Annual Meeting of Shareholders
MAY 8, 2019 2019 ANNUAL MEETING OF SHAREHOLDERS Greg C. Garland Chairman and Chief Executive Officer Lake Charles Refinery 1 phillips66.com | NYSE: PSX
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: Providing Energy, Improving Lives: 2018 Highlights
PROVIDING ENERGY, IMPROVING LIVES: 2018 HIGHLIGHTS Garfield Elementary PONCA CITY, OK $27 MILLION to organizations promoting education and literacy, safety and preparedness, environmental sustainability and civic enrichment 78,000 HOURS volunteered in local communities by employees $6.6 MILLION cont
Slide 4: Executing the Strategy
EXECUTING THE STRATEGY OPERATING EXCELLENCE Safe and reliable operations Technology driven cost efficiencies Beaumont Terminal NEDERLAND, TX GROWTH Pipelines from key shale basins to Gulf Coast Crude export capability NGL value chain – transportation, fractionation and exports CPChem USGC ethylene a
Slide 5: Operating Excellence
OPERATING EXCELLENCE TOTAL RECORDABLE RATES REFINING TIER 1 PROCESS SAFETY EVENT RATE Incidents per 200,000 Hours Worked Phillips 66 CPChem DCP Midstream 1.15 1.03 0.08 0.08 Industry Average .86 0.02 0.02 0.02 .83 .79 14 15 16 17 18 .74 .76 .66 .66 .58 REFINING CRUDE CAPACITY UTILIZATION .54 .43 .41
Slide 6: Environmental, Social, Governance
ENVIRONMENTAL, SOCIAL, GOVERNANCE INDUSTRY SAFETY METRICS Board engaged in setting company ESG strategy Incidents per 200,000 hours worked 6 Independent lead director 4 Extensive ESG engagement 2 Industry leading safety performance 0 Agricul., Food All Construction Prof. Petroleum Petchem. Phillips
Slide 7: CPChem's USGC Growth
GROWTH CPChem’s USGC Beaumont Terminal Sand Hills Pipeline Petrochemicals Project South Texas Gateway Bayou Bridge Pipeline Gray Oak Pipeline Terminal Sweeny Hub expansion Bakken Pipeline CPChem Polyethylene Units OLD OCEAN, TX 7 phillips66.com | NYSE: PSX
Slide 8: Refinery Modernization and Growth
RETURNS Bayway Refinery FCC modernization Wood River Refinery FCC modernization Lake Charles Refinery crude flexibility Sweeny FCC upgrade Enhancing U.S. fuels brand images Expanding Europe retail presence Sweeny Refinery OLD OCEAN, TX 8 phillips66.com | NYSE: PSX
Slide 9: Partnership with Ryze Renewables
RENEWABLE FUELS Partnership with Ryze Renewables Renewable diesel plant at Ferndale Refinery with Renewable Energy Group Co-processing used cooking oil at Humber Refinery Evaluating renewable diesel projects in California 9 phillips66.com | NYSE: PSX Ryze renewable diesel facility under construction
Slide 10: Creates Shareholder Value
DISTRIBUTIONS ANNUAL DIVIDEND $/share Creates shareholder value 2.73 3.10 2.18 2.45 Secure, competitive and growing dividend 1.89 14% increase in 2Q18 to $0.80 per quarter 14 15 16 17 18 27% CAGR with eight increases since May 2012 TOTAL DISTRIBUTIONS $B Committed to share repurchases 6.1 4.7 Repurc
Slide 11: Living Our Core Values
H I G H - P E R F O R M I N G O R G AN I Z A T I O N Living our core values of safety, honor and commitment Maintaining the highest ethical standards Valuing inclusion and diversity Delivering exceptional results through a highly engaged workforce Culture. Capability. Performance. 11 phillips66.com
Slide 12: Total Shareholder Return
TOTAL SHAREHOLDER RETURN 340% PSX +244% 300% Peers +145% S&P 100 +139% 260% 220% 180% 140% 100% 60% 20% -20% May-12 May-13 May-14 May-15 May-16 May-17 May-18 Apr-19 12 phillips66.com | NYSE: PSX Vacuum Tower, Billings Refinery, Billings, MT See appendix for footnotes
Slide 13: Safety. Honor. Commitment.
Beaumont Terminal NEDERLAND, TX Safety. Honor. Commitment. phillips66.com | NYSE: PSX
Slide 14: Footnotes
FOOTNOTES Slide 5 Industry averages are from: Phillips 66 – American Fuel & Petrochemical Manufacturers (AFPM) refining data, Chevron Phillips Chemical Company LLC (CPChem) – American Chemistry Council (ACC), DCP Midstream, LLC (DCP Midstream) – Gas Processors Association (GPA). A Process Safety Eve