Slide 1: Lake James Gas Plant
Lake James Gas Plant GOLDSMITH, TX1
Slide 2: Cautionary Statement
Cautionary Statement This presentation contains forward-looking statements within the meaning of the federal securities laws relating to Phillips 66’s operations, strategy and performance. Words such as “anticipated,” "commitments," “estimated,” “expected,” “planned,” “scheduled,” “targeted,” “belie
Slide 3: 2024 Strategic Priorities Summary
2024 Strategic Priorities Summary Deliver Shareholder •Achieved $13 B to $15 B shareholder distribution target by Returns year-end 2024 with $13.6 B shareholder distributions since July 2022 Improve Refining •$1/bbl1 cost reduction compared with 2022 Performance •8 straight quarters > industry-avera
Slide 4: Exceeded $3 B Non-Core Asset Disposition Target
Exceeded $3 B Non-Core Asset Disposition Target Segment Proceeds Announced Disposition Impact Proceeds Announced Received Belle Chasse Terminal Midstream $0.1 B 4Q 2022 1Q 2023 South Texas Gateway Terminal Midstream 0.3 B 2Q 2023 3Q 2023 Rockies Express Pipeline Midstream 0.7 B 2Q 2024 2Q 2024 Disco
Slide 5: Advancing Wellhead-to-Market Strategy
Advancing Wellhead-to-Market Strategy 1Q 2022 2Q 2023 2Q 2024 3Q 2024 3Q 2024 4Q 2024 1Q 2025 Exceeded DCP Synergy Rockies Express Target & Sale of Other Announced EPIC NGL Pipeline Sale Non-Core Assets Acquisition Gulf Coast DCP Pinnacle Express PSXP Buy-In Transaction Acquisition Pipeline Sale Com
Slide 6: Strategic Priorities (2025-2027)
Strategic Priorities (2025-2027) Creating Value Now and in the Future TARGETED PERFORMANCE Shareholder Returns • > 50% of Cash Flow from Operations distributed to shareholders through dividends and share repurchases • Secure, competitive and growing dividend World-Class Operations • > 86% annual Ref
Slide 7: 4Q 2024 Overview
4Q 2024 Overview $MM (Unless Otherwise Noted) Earnings $8 Adjusted loss (61) Adjusted loss per share1 (0.15) Operating cash flow 1,198 Capital expenditures and investments2 506 Shareholder distributions3 1,119 Net Debt-to-Capital 39% 1 Represents dollars per share. 4Q 2024 is based on weighted-avera
Slide 8: 4Q 2024 Adjusted Earnings (Loss)
4Q 2024 Adjusted Earnings (Loss) 4Q 2024 vs 3Q 2024 ($MM) 4Q 2024 3Q 2024 Change •Midstream - Record NGL Midstream $ 708 672 36 fractionation and LPG export volumes Chemicals 72 342 (270) •Chemicals - Lower margins Refining (759) (67) (692) Marketing and Specialties 185 583 (398) •Refining - Lower r
Slide 9: 4Q 2024 Cash Flow
4Q 2024 Cash Flow $B 0.2 0.4 0.3 0.9 (1.1) (0.5) (0.1) 1.6 1.7 Sept. 30, 2024 CFO Working Debt Proceeds from Shareholder Capex Acquisitions Dec. 31, 2024 Cash (excluding Capital Asset Distributions & Investments Cash 1 1 Balance working Dispositions Balance capital) 1 Includes cash and cash equivale
Slide 10: Outlook
Outlook 1Q 2025 Global Olefins & Polyolefins utilization Mid-90% Refining crude utilization Low 80% Refining turnaround expense $290 MM - $310 MM Corporate & Other costs1 $310 MM - $330 MM Full-year 2025 Refining turnaround expense $500 MM - $550 MM Depreciation and amortization2 $3.3 B 1 Excludes i
Slide 11: Questions and Answers: 2024 Financial Highlights
Questions and Answers 2024 Financial Highlights $6.15 $4.2 B $5.3 B Adjusted EPS Operating cash flow Shareholder Distributions $13.6 B shareholder Completed DCP integration distributions since July 2022 Clean product yield 87% and captured $500 MM in synergies, exceeding target Business transformati
Slide 12: Appendix
Appendix Borger Refinery, / Borger, TX / 12
Slide 13: Increasing Mid-Cycle Adjusted EBITDA Target
Increasing Mid-Cycle Adjusted EBITDA Target Generating value by growing Midstream and Chemicals EBITDA by $1 B 1 Corporate costs are reflected in the total, but are not present on the chart. 13 13 13
Slide 14: Adjusted Controllable Costs
Adjusted Controllable Costs 2024 vs 2022 0.5 0.6 (0.4) (0.9) Excludes Refining 3 JV controllable cost reduction of $0.1B 8.3 8.1 20221 DCP Inflation2 Market Cost Reduction 20241 1 Sum of our operating and SG&A expenses, excluding special items. See non-GAAP reconciliation in Appendix. 2 Based on an
Slide 15: 2024 Strategic Priorities Summary
2024 Strategic Priorities Summary Original 4Q 2022 Enhanced 4Q 2023 Results 4Q 2024 Deliver Shareholder • $10-$12 B shareholder • $13 B - $15 B shareholder • $13.6 B of shareholder distributions at YE 2024 Returns distributions by YE 2024 distributions by YE 2024 Improve Refining • 98% mechanical av
Slide 16: 2025 Estimated Sensitivities
2025 Estimated Sensitivities . 1 Sensitivities shown above are independent and only valid within a limited range. 2 Midstream includes 13% economic interest attributable to noncontrolling interest in DCP Midstream, LP. 16 3 Sensitivities relative to 3-2-1 market crack. 16 16
Slide 17: 2024 Overview
2024 Overview Ponca City Refinery $MM (Unless Otherwise Noted) Earnings $2,117 Adjusted earnings 2,604 Adjusted earnings per share (EPS)1 6.15 Adjusted EBITDA 7,254 Operating cash flow 4,191 Capital expenditures and investments2 1,859 Shareholder distributions3 5,333 Common shares outstanding at Dec
Slide 18: Capital Structure
Capital Structure 40% 41% 40% 40% 38% 34% 39% 38% 38% 36% 34% 24% 34.1 31.7 30.8 30.5 29.8 28.5 19.4 20.2 20.0 20.0 20.1 17.2 6.1 3.3 2.4 1.7 1.6 1.6 2022 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 Equity $B Debt $B Cash & Cash Equivalents $B Debt-to-Capital Net Debt-to-Capital 18 18 18
Slide 19: 4Q 2024 Refining Adjusted Pre-Tax Loss
4Q 2024 Refining Adjusted Pre-Tax Loss 4Q 2024 VS. 3Q 2024 ($MM) 3Q 2024 Atlantic Gulf Central West 4Q 2024 Adjusted Basin / Coast Corridor Coast Adjusted Pre-Tax Loss Europe Pre-Tax Loss (67) 94% crude utilization (39) (26) 88% clean product yield (759) 105% market capture1 (402) (225) (100) (128)
Slide 20: 4Q 2024 Realized Refining Margin
4Q 2024 Realized Refining Margin 4Q 2024 VS. 3Q 2024 ($/BBL) $1.06 • 105% Market capture1 vs. 92% in 3Q • 88% Clean product yield vs. 87% in 3Q $(3.29) 8.31 6.08 3Q 2024 Market Change in 4Q 2024 Realized Indicator Capture Realized Margin Change Impact Margin 1 Capture reflects the percentage of our
Slide 21: 4Q 2024 - Market Indicator vs. Realized Margin
4Q 2024 - Market Indicator vs. Realized Margin ($/BBL) $0.29 • 105% Market capture1 • Record clean product yield at 88% 5.79 6.08 • Improved secondary products differentials 4Q 2024 Capture Impact 4Q 2024 RIN-Adj Market Realized Margin 1 Indicator 1 Capture reflects the percentage of our Phillips 66
Slide 22: Phillips 66 Refining Indicator Market Capture
Phillips 66 Refining Indicator Market Capture1 4Q 2024 3Q 2024 Worldwide Realized Margin ($/BBL) 6.08 8.31 Worldwide Refining Indicator ($/BBL) 5.79 9.08 Worldwide Market Capture (%) 105 % 92 % Atlantic Basin Realized Margin ($/BBL) 6.09 5.87 Atlantic Basin Indicator ($/BBL) 5.06 6.27 Atlantic Basin
Slide 23: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars 2021 2022 2023 2024 Reconciliation of Midstream Income before Income Taxes to Adjusted EBITDA Income before income taxes $ 1,131 5,176 2,819 2,638 Plus: Depreciation and amortization 426 567 923 920 Midstream EBITDA 1,557 5,743 3,742 3,558 Special Item Ad
Slide 24: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2024 2022 Reconciliation of Refining Operating and SG&A Expenses to Refining Adjusted Controllable Costs Turnaround expenses $ 484 772 Other operating expenses 3,243 3,995 Total operating expenses 3,727 4,767 Selling, general and admin
Slide 25: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars 2024 2023 Year 4Q 3Q Year 4Q Reconciliation of Consolidated Earnings to Adjusted Earnings Consolidated Earnings $ 2,117 8 346 7,015 1,260 Pre-Tax Adjustments: Impairments1 450 35 28 — — 2 Los Angeles Refinery cessation costs 48 7 41 — — Certain tax impact
Slide 26: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars 2024 2023 Year 4Q 3Q Year 4Q Reconciliation of Midstream Pre-Tax Income to Adjusted Pre-Tax Income Pre-tax income $ 2,638 673 644 2,819 759 Pre-tax adjustments: Impairments1 346 35 28 — — Certain tax items — — — (2) (2) Net gain on asset disposition (238)
Slide 27: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars 2024 2023 Year 4Q 3Q Year 4Q Reconciliation of Refining Pre-Tax Income (Loss) to Adjusted Pre-Tax Income (Loss) Pre-tax income (loss) $ (365) (775) (108) 5,340 859 Pre-tax adjustments: Impairments1 104 — — — — Los Angeles Refinery cessation costs2 44 3 41
Slide 28: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars 2024 2023 Year 4Q 3Q Year 4Q Reconciliation of Renewable Fuels Pre-Tax Income (Loss) to Adjusted Pre-Tax Income (Loss) Pre-tax income (loss) $ (198) 28 (116) 153 (11) Pre-tax adjustments: None — — — — — Adjusted Pre-Tax Income (Loss) $ (198) 28 (116) 153
Slide 29: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars 2024 4Q 3Q Reconciliation of Refining - Atlantic Basin / Europe Pre-tax Loss to Adjusted Pre-Tax Loss Pre-tax loss $ (91) (61) Pre-tax adjustments: Certain tax impacts (9) — Adjusted Pre-Tax Loss $ (100) (61) Reconciliation of Refining - Gulf Coast Pre-Ta
Slide 30: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated December 31, 2024 Total Debt $ 20,062 Total Equity 28,463 Debt-to-Capital Ratio 41 % Total Cash $ 1,738 Net Debt-to-Capital Ratio 39 % 30 30 30
Slide 31: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars 2024 Reconciliation of Consolidated Net Income to Adjusted EBITDA Net income $ 2,175 Plus: Income tax expense 500 Net interest expense 745 Depreciation and amortization 2,363 Phillips 66 EBITDA $ 5,783 Special Item Adjustments (pre-tax): Certain tax impac
Slide 32: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars (Except as Indicated) 4Q 2024 Atlantic Basin/ Central Europe Gulf Coast Corridor West Coast Worldwide Reconciliation of Refining Loss Before Income Taxes to Realized Refining Margins Loss before income taxes $ (91) (128) (94) (462) (775) Plus: Taxes other
Slide 33: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars (Except as Indicated) 2024 Reconciliation of Return on Capital Employed (ROCE) to Adjusted ROCE Numerator Net income $ 2,175 After-tax interest expense 717 ROCE earnings 2,892 After-tax special items 517 Adjusted ROCE earnings $ 3,409 Denominator Average
Slide 34: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars 2024 2022 Reconciliation of Operating and SG&A Expenses to Adjusted Controllable Costs Operating Expenses $ 5,939 6,111 Selling, general and administrative expenses (SG&A) 2,814 2,168 Controllable costs $ 8,753 8,279 Special Item Adjustments (pre-tax) Hur