Slide 1: Phillips 66 Q1 2023 Earnings
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 Sweeny Freeport 1 Bayway Refinery South Texas Gateway Terminal LINDEN, NJ INGLESIDE, TX
Slide 2: Cautionary Statement
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,” “e
Slide 3: Executing the Strategy
Executing the Strategy Sweeny Ethylene Unit SweenyOCEAN, SWEENY/OLD Hub Fractionators TX Renewable Fuels Catalyst OLD Research Reactor OCEAN, TX PHILLIPS RESEARCH CENTER, BARTLESVILLE, OK Humber Refinery N. LINCOLNSHIRE, U.K. Sweeny HubMarine Fractionators Freeport Export Terminal Humber Organic Sol
Slide 4: Strategic Priorities
a Strategic Priorities <p Deliver Shareholder Returns nN Ya D $3.7 B shareholder distributions since July 2022 On track to meet $10 B - $12 B by YE 2024 Above industry-average crude utilization 93% market capture Capture Value from Wellhead to Market Transitioned DCP employees to Phillips 66 Will ac
Slide 5: 1Q 2023 Overview
1Q 2023 Overview Ponca City Refinery Phillips 66 Branded Marketing Site PONCA CITY, OK HOUSTON, Ponca Refinery, PONCA CITY, OKTX Lake Charles Refinery WESTLAKE, LA $MM (UNLESS OTHERWISE NOTED) Sweeny Refinery OLD OCEAN, TX Adjusted earnings $ 1,965 Billings Refinery Vacuum Unit BILLINGS, MT Sweeny R
Slide 6: 1Q 2023 Adjusted Earnings
1Q 2023 Adjusted Earnings 1Q 2023 VS. 4Q 2022 ($MM) 4Q 2022 1Q 2023 Midstream Chemicals Refining Marketing Corporate Income Noncontrolling Adjusted Adjusted & Specialties & Other Taxes Interests Earnings Earnings 146 4 32 17 (18) (113) (2) 1,899 1,965 678 198 1,608 426 (248) (576) (121) 1Q 2023 Adju
Slide 7: 1Q 2023 Midstream Adjusted Pre-Tax Income
1Q 2023 Midstream Adjusted Pre-Tax Income 1Q 2023 VS. 4Q 2022 ($MM) 33 Record LPG cargos (28) (1) Strong fractionation volumes 674 678 Gathering & Processing impacted by declining prices Lower transportation 4Q 2022 Transportation NGL NOVONIX 1Q 2023 operating costs Adjusted & Other Adjusted Pre-Tax
Slide 8: 1Q 2023 Chemicals Adjusted Pre-Tax Income
1Q 2023 Chemicals Adjusted Pre-Tax Income 1Q 2023 VS. 4Q 2022 ($MM) 146 Strong volumes Lower feedstock costs 198 94% O&P utilization 52 4Q 2022 1Q 2023 Adjusted Adjusted Pre-Tax Income Pre-Tax Income 8
Slide 9: 1Q 2023 Refining Adjusted Pre-Tax Income
1Q 2023 Refining Adjusted Pre-Tax Income 1Q 2023 VS. 4Q 2022 ($MM) 4Q 2022 Atlantic Gulf Central West 1Q 2023 Adjusted Basin / Coast Corridor Coast Adjusted Pre-Tax Income Europe Pre-Tax Income 90% crude utilization 90 345 23 83% clean product yield (476) 93% Market Capture 1,626 1,608 $234 MM turna
Slide 10: 1Q 2023 Refining Margins – Market vs. Realized
1Q 2023 Refining Margins – Market vs. Realized ($/BBL, UNLESS OTHERWISE NOTED) 2.19 2.34 (3.64) (2.56) 22.39 20.72 1Q 2023 Configuration Secondary Products Feedstock Other 1Q 2023 RIN-Adjusted Realized Market 3:2:1 Margin Avg Market Crude: $78.86 93% RIN-Adjusted Market Capture 10
Slide 11: 1Q 2023 Marketing & Specialties Adjusted Pre-Tax Income
1Q 2023 Marketing & Specialties Adjusted Pre-Tax Income 1Q 2023 VS. 4Q 2022 ($MM) (113) Strong first-quarter results 539 426 Lower international margins 4Q 2022 1Q 2023 Adjusted Adjusted Pre-Tax Income Pre-Tax Income 11
Slide 12: 1Q 2023 Corporate & Other Adjusted Pre-Tax Loss
1Q 2023 Corporate & Other Adjusted Pre-Tax Loss 1Q 2023 VS. 4Q 2022 ($MM) 4Q 2022 Net Interest Corporate 1Q 2023 Adjusted Expense Overhead Adjusted Pre-Tax Loss & Other Pre-Tax Loss (248) (280) 14 18 12
Slide 13: 1Q 2023 Cash Flow
1Q 2023 Cash Flow $B 2.5 1.3 (0.4) 0.1 (1.3) (1.3) 7.0 6.1 December 31, CFO Working Debt Capital Shareholder Other March 31, 2022 (excluding Capital Expenditures Distributions 2023 Cash 1 working & Investments Cash 1 Balance capital) Balance 1) Includes cash and cash equivalents 13
Slide 14: Outlook
Outlook South Texas Gateway Terminal INGLESIDE, TX San Francisco Refinery RODEO, CA Phillips 66 Research Center BARTLESVILLE, OK 2Q 2023 Global Olefins & Polyolefins utilization Mid-90% Refining crude utilization Mid-90% Refining turnaround expenses $100 MM - $120 MM Corporate & Other costs $260MM -
Slide 15: Questions and Answers
Phillips 66 Branded Marketing Site ST. LOUIS, MO Questions and Answers
Slide 16: Appendix
Phillips 66 Branded Marketing Site ST. LOUIS, MO Appendix
Slide 17: 2023 Estimated Sensitivities
2023 Estimated Sensitivities . 17
Slide 18: Capital Structure
Capital Structure 42% 40% 34% 35% 38% 34% 24% 25% 34.1 34.9 21.5 21.6 17.2 18.5 15.9 14.4 6.1 7.0 2.5 3.1 2020 2021 2022 1Q 2023 Equity $B Debt $B Cash & Cash Equivalents $B Debt-to-Capital Net Debt-to-Capital 18
Slide 19: Refining Margins – Atlantic Basin / Europe
1Q 2023 Refining Margins – Market vs. Realized ATLANTIC BASIN / EUROPE ($/BBL, UNLESS OTHERWISE NOTED) Brent: $81.27 (1.71) (0.11) 3.04 (4.66) 82% crude utilization 19.57 16.13 82% market capture 1Q 2023 Configuration Secondary Feedstock Other 1Q 2023 RIN-Adjusted Products Realized Market 3:2:1 Marg
Slide 20: Refining Margins – Gulf Coast
1Q 2023 Refining Margins – Market vs. Realized GULF COAST ($/BBL, UNLESS OTHERWISE NOTED) 3.47 6.53 LLS: $79.00 (4.91) 98% crude utilization 19.97 (3.78) 21.28 107% market capture 1Q 2023 Configuration Secondary Feedstock Other 1Q 2023 RIN-Adjusted Products Realized Market 3:2:1 Margin RIN-Adjusted
Slide 21: Refining Margins – Central Corridor
1Q 2023 Refining Margins – Market vs. Realized CENTRAL CORRIDOR ($/BBL, UNLESS OTHERWISE NOTED) 2.57 6.73 WTI: $76.11 (2.09) (3.58) 89% crude utilization 26.86 23.23 116% market capture 1Q 2023 Configuration Secondary Feedstock Other 1Q 2023 RIN-Adjusted Products Realized Market 3:2:1 Margin RIN-Adj
Slide 22: Refining Margins – West Coast
1Q 2023 Refining Margins – Market vs. Realized WEST COAST ($/BBL, UNLESS OTHERWISE NOTED) ANS: $79.14 (5.00) (2.33) (2.72) 88% crude utilization 29.73 (3.15) 16.53 56% market capture 1Q 2023 Configuration Secondary Feedstock Other 1Q 2023 RIN-Adjusted Products Realized Market 3:2:1 Margin RIN-Adjust
Slide 23: 1Q 2023 Adjusted Earnings vs. 1Q 2022
1Q 2023 Adjusted Earnings 1Q 2023 VS. 1Q 2022 ($MM) 130 1 1,418 (401) (46) 466 1,965 (198) 595 1Q 2022 Midstream Chemicals Refining Marketing Corporate Income Noncontrolling 1Q 2023 Adjusted & Specialties & Other Taxes Interests Adjusted Earnings Earnings 678 198 1,608 426 (248) (576) (121) 1Q 2023
Slide 24: Midstream 1Q 2023 vs. 1Q 2022
1Q 2023 Midstream Adjusted Pre-Tax Income 1Q 2023 VS. 1Q 2022 ($MM) 146 328 678 (8) 212 1Q 2022 Transportation NGL & Other NOVONIX 1Q 2023 Adjusted Adjusted Pre-Tax Income Pre-Tax Income 270 420 (12) 1Q 2023 24
Slide 25: Chemicals 1Q 2023 vs. 1Q 2022
1Q 2023 Chemicals Adjusted Pre-Tax Income 1Q 2023 VS. 1Q 2022 ($MM) 396 (198) 198 1Q 2022 1Q 2023 Adjusted Adjusted Pre-Tax Income Pre-Tax Income 25
Slide 26: Refining 1Q 2023 vs. 1Q 2022
1Q 2023 Refining Adjusted Pre-Tax Income 1Q 2023 VS. 1Q 2022 ($MM) 874 (93) 647 1,608 190 (10) 1Q 2022 Atlantic Gulf Central West Coast 1Q 2023 Adjusted Basin / Coast Corridor Adjusted Pre-Tax Income Europe Pre-Tax Income 142 705 739 22 1Q 2023 26
Slide 27: Marketing & Specialties 1Q 2023 vs. 1Q 2022
1Q 2023 Marketing & Specialties Adjusted Pre-Tax Income 1Q 2023 VS. 1Q 2022 ($MM) 130 426 296 1Q 2022 1Q 2023 Adjusted Adjusted Pre-Tax Income Pre-Tax Income 27
Slide 28: Corporate & Other 1Q 2023 vs. 1Q 2022
1Q 2023 Corporate & Other Adjusted Pre-Tax Loss 1Q 2023 VS. 1Q 2022 ($MM) 1Q 2022 Adjusted Net Interest Corporate 1Q 2023 Pre-Tax Loss Expense Overhead Adjusted & Other Pre-Tax Loss (249) (248) 8 (7) 28
Slide 29: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2023 2022 1Q 4Q 1Q Phillips 66 Consolidated Earnings $ 1,961 1,884 582 Pre-Tax Adjustments: Hurricane-related costs (recovery) — (14) 17 Net gain on asset disposition (36) — — Business transformation restructuring costs 1 35 60 — DCP i
Slide 30: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2023 2022 1Q 4Q 1Q Midstream Pre-Tax Income $ 702 656 212 Pre-Tax Adjustments: Net gain on asset disposition (36) — — 1 DCP Integration restructuring costs 12 18 — Adjusted Pre-Tax Income $ 678 674 212 Chemicals Pre-Tax Income $ 198 52
Slide 31: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2023 2022 1Q 4Q 1Q Refining Pre-Tax Income $ 1,608 1,640 173 Pre-Tax Adjustments: Hurricane-related costs (recovery) — (14) 17 Adjusted Pre-Tax Income $ 1,608 1,626 190 Marketing & Specialties Pre-Tax Income $ 426 539 296 Pre-Tax Adjus
Slide 32: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2023 2022 1Q 4Q 1Q Midstream - Transportation Pre-Tax Income $ 306 237 278 Pre-Tax Adjustments: Net gain on asset disposition (36) — — Adjusted Pre-Tax Income $ 270 237 278 Midstream - NGL & Other Pre-Tax Income $ 408 430 92 Pre-Tax Ad
Slide 33: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2023 2022 1Q 4Q 1Q Refining - Atlantic Basin / Europe Pre-Tax Income $ 142 618 152 Pre-Tax Adjustments: None — — — Adjusted Pre-Tax Income $ 142 618 152 Refining - Gulf Coast Pre-Tax Income $ 705 374 41 Pre-Tax Adjustments: Hurricane-r
Slide 34: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars (Except as Indicated) 1Q 2023 Atlantic Basin/ Central Europe Gulf Coast Corridor West Coast Worldwide Realized Refining Margins Income before income taxes $ 142 705 739 22 1,608 Plus: Taxes other than income taxes 22 33 25 33 113 Depreciation, amortizatio
Slide 35: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 1Q 2023 Numerator Net Income $ 2,077 After-tax interest expense 151 GAAP ROCE earnings 2,228 After-tax special items 9 Adjusted ROCE earnings $ 2,237 Denominator GAAP average capital employed1 $ 52,349 2023 Annualized GAAP ROCE 17 % 20
Slide 36: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 1Q 2023 Total Debt $ 18,485 Total Equity 34,916 Debt-to-Capital Ratio 35 % Total Cash $ 6,965 Net Debt-to-Capital Ratio 25 % 36
Slide 37: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars 1Q 2023 Growth Sustaining Total Capital Expenditures and Investments Midstream1 $ 69 55 124 Refining 153 74 227 Marketing & Specialties 6 5 11 Corporate & Other — 16 16 Capital Expenditures and Investments $ 228 150 378 1 Includes 100% of DCP Midstream, L
Slide 38: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 1Q 2023 Effective Tax Rates Income before income taxes $ 2,651 Special items 11 Adjusted income before income taxes $ 2,662 Income tax expense $ 574 Special items 2 Adjusted income tax expense $ 576 GAAP effective tax rate 21.7 % Adjus