Phillips 66 · NYSE:PSX
Phillips 66 — Q1 2024 Earnings Presentation
36 slides from Phillips 66's earnings presentation, Apr 26, 2024
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. 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 Safety Award Ceremony DALLAS, TX 3
Slide 4: Strategic Priorities Update
Strategic Priorities Update Deliver Shareholder • $9.9 B shareholder distributions since July 2022 Returns • On track to meet $13 B - $15 B target by YE 2024 Improve Refining • Above industry average crude utilization for five Performance consecutive quarters • >$560 MM run-rate cost savings as of M
Slide 5: Commenced Operations at Rodeo Renewable Energy Complex
Commenced Operations at Rodeo Renewable Energy Complex 2021 2022 2023 1Q 2024 2Q 2024 3Q 2024 Final ~30 MBD investment renewable fuels Expect ~50 MBD Unit 250 production Unit 250 decision on renewable fuels ~7 MBD Rodeo Renewed ~10 MBD Processing production capability Sustainable renewable fuels avi
Slide 6: Advancing Cost Reductions in 2024
Advancing Cost Reductions in 2024 CUMULATIVE COST REDUCTIONS ($MM) TARGET SAVINGS Historical and projected savings presented above are cumulative on a trailing twelve month basis. 1 Savings are reflected as a component of our purchased crude oil and product costs when realized, which is a component
Slide 7: 1Q 2024 Overview
1Q 2024 Overview $MM (Unless Otherwise Noted) Adjusted earnings 822 Adjusted earnings per share (EPS) 1.90 Operating cash flow excluding working capital1 1,211 Capital expenditures and investments 628 Shareholder distributions 1,612 Net Debt-to-Capital 38% 1 Excludes working capital use of cash of $
Slide 8: 1Q 2024 Adjusted Earnings
1Q 2024 Adjusted Earnings 1Q 2024 vs 4Q 2023 ($MM) 4Q 2023 Midstream Chemicals Refining Marketing Corporate 1Q 2024 Income Noncontrolling Adjusted & Specialties & Other Taxes Adjusted Earnings Interests Earnings 99 (141) 179 12 1,362 (569) (87) (33) 822 613 205 228 345 (330) (226) (13) 1Q 2024 Adjus
Slide 9: 1Q 2024 Cash Flow
1Q 2024 Cash Flow $B 1.2 0.8 (1.4) (1.6) 3.3 (0.6) (0.1) 1.6 Dec. 31, 2023 CFO (excluding Working Debt Shareholder Capital Other Mar. 31, 2024 Cash working capital) Capital Distributions Expenditures Cash 1 1 Balance & Investments Balance 99 1 Includes cash and cash equivalents 9
Slide 10: Outlook
Outlook 2Q 2024 Global Olefins & Polyolefins utilization Mid-90% Refining crude utilization Mid-90% Refining turnaround expense* $100 MM - $120 MM Corporate & Other costs $330 MM - $350 MM *Excludes Rodeo Renewable Energy Complex CP Chem 1-Hexene Unit 1010 OLD OCEAN, TX
Slide 11: Questions and Answers
Questions and Answers Financial Highlights $1.90 $1.2 B $1.6 B Adjusted EPS1 Operating cash flow, Shareholder excl. working capital2 Distributions1 $9.9 B shareholder Above industry average $250 MM run-rate DCP distributions since July 2022 crude utilization five synergies as of March 31 consecutive
Slide 12: Phillips 66 Branded Marketing Site
Phillips 66 Branded Marketing Site ST. LOUIS, MO 1212
Slide 13: 2024 Estimated Sensitivities
2024 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. 13 13 13
Slide 14: Capital Structure
Capital Structure 40% 40% 38% 34% 38% 34% 34% 24% 34.1 31.7 30.8 21.6 20.2 19.4 17.2 14.4 6.1 3.1 3.3 1.6 2021 2022 2023 1Q 2024 Equity $B Debt $B Cash & Cash Equivalents $B Debt-to-Capital Net Debt-to-Capital 14 14 14
Slide 15: 1Q 2024 Refining Adjusted Pre-Tax Income
1Q 2024 Refining Adjusted Pre-Tax Income 1Q 2024 VS. 4Q 2023 ($MM) 4Q 2023 Atlantic Gulf Central West 1Q 2024 Adjusted Basin / Coast Corridor Coast Adjusted Pre-Tax Income Europe Pre-Tax Income 92% crude utilization 84% clean product yield (80) 69% market capture (237) 797 18 (270) 228 80 111 210 (1
Slide 16: 1Q 2024 Refining Margins – Market vs. Realized
1Q 2024 Refining Margins – Market vs. Realized ($/BBL, Unless Otherwise Noted) (1.76) 0.46 0.38 (3.94) 15.77 10.91 1Q 2024 Configuration Secondary Products Feedstock Other 1Q 2024 RIN-Adjusted Realized Market 3:2:1 Margin Avg Market Crude: $80.22 69% RIN-Adjusted Market Capture 16 16 16
Slide 17: 1Q 2024 Refining Margins – Market vs. Realized
1Q 2024 Refining Margins – Market vs. Realized Atlantic Basin / Europe ($/BBL, Unless Otherwise Noted) (0.50) Brent: $83.24 (2.18) 3.00 13.92 88% crude utilization (4.69) 9.55 69% market capture 1Q 2024 Configuration Secondary Feedstock Other 1Q 2024 RIN-Adjusted Products Realized Market 3:2:1 Margi
Slide 18: 1Q 2024 Refining Margins – Market vs. Realized
1Q 2024 Refining Margins – Market vs. Realized Gulf Coast ($/BBL, Unless Otherwise Noted) LLS: $79.76 (3.09) 1.84 2.11 90% crude utilization 15.70 (5.65) 10.91 69% market capture 1Q 2024 Configuration Secondary Feedstock Other 1Q 2024 RIN-Adjusted Products Realized Market 3:2:1 Margin RIN-Adjusted M
Slide 19: 1Q 2024 Refining Margins – Market vs. Realized
1Q 2024 Refining Margins – Market vs. Realized Central Corridor ($/BBL, Unless Otherwise Noted) 0.57 3.38 (0.43) WTI: $77.07 (4.03) 96% crude utilization 13.78 13.27 96% market capture 1Q 2024 Configuration Secondary Feedstock Other 1Q 2024 RIN-Adjusted Products Realized Market 3:2:1 Margin RIN-Adju
Slide 20: 1Q 2024 Refining Margins – Market vs. Realized
1Q 2024 Refining Margins – Market vs. Realized West Coast ($/BBL, Unless Otherwise Noted) ANS: $81.47 (4.42) 0.81 (3.94) 100% crude utilization 24.38 (7.94) 8.89 36% market capture 1Q 2024 Configuration Secondary Feedstock Other 1Q 2024 RIN-Adjusted Products Realized Market 3:2:1 Margin RIN-Adjusted
Slide 21: 1Q 2024 Adjusted Earnings
1Q 2024 Adjusted Earnings 1Q 2024 vs 1Q 2023 ($MM) 7 (65) 1,965 108 350 (1,380) 822 (81) (82) 1Q 2023 Midstream Chemicals Refining Marketing Corporate Income Noncontrolling 1Q 2024 Adjusted & Specialties & Other Taxes Interests Adjusted Earnings Earnings 613 205 228 345 (330) (226) (13) 1Q 2024 Adju
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2024 2023 1Q 4Q 1Q Reconciliation of Consolidated Earnings to Adjusted Earnings Consolidated Earnings $ 748 1,260 1,961 Pre-Tax Adjustments: Impairments 163 — — Certain tax impacts — (19) — Net gain on asset disposition — — (36) Legal
Slide 23: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2024 2023 1Q 4Q 1Q Reconciliation of Midstream Pre-Tax Income to Adjusted Pre-Tax Income Pre-tax income $ 554 756 702 Pre-tax adjustments: Impairments 59 — — Certain tax items — (2) — Net gain on asset disposition — — (36) DCP Integrat
Slide 24: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2024 2023 1Q 4Q 1Q Reconciliation of Refining Pre-Tax Income to Adjusted Pre-Tax Income Pre-tax income $ 131 814 1,608 Pre-tax adjustments: Impairments 104 — — Certain tax impacts — (17) — Legal settlement (7) — — Adjusted Pre-Tax Inco
Slide 25: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2024 2023 1Q 4Q Reconciliation of Refining - Atlantic Basin / Europe Pre-tax Income to Adjusted Pre-Tax Income Pre-tax income $ 80 175 Pre-tax adjustments: Certain tax impacts — (15) Adjusted Pre-Tax Income $ 80 160 Reconciliation of R
Slide 26: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars 2024 Reconciliation of Consolidated Net Income to Adjusted EBITDA Net income $ 761 Plus: Income tax expense 203 Net interest expense 185 Depreciation and amortization 504 Phillips 66 EBITDA $ 1,653 Special Item Adjustments (pre-tax): Impairments 163 Legal
Slide 27: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars 2024 Reconciliation of Midstream Income before Income Taxes to Adjusted EBITDA Income before income taxes $ 554 Plus: Depreciation and amortization 229 Midstream EBITDA $ 783 Special Item Adjustments (pre-tax): Impairments 59 Total Special Item Adjustment
Slide 28: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars 2024 Reconciliation of Chemicals Income before Income Taxes to Adjusted EBITDA Income before income taxes $ 205 Plus: None — Chemicals EBITDA $ 205 Special Item Adjustments (pre-tax): None — Chemicals EBITDA, Adjusted for Special Items $ 205 Other Adjustm
Slide 29: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars 2024 Reconciliation of Refining Income before Income Taxes to Adjusted EBITDA Income before income taxes $ 131 Plus: Depreciation and amortization 214 Refining EBITDA $ 345 Special Item Adjustments (pre-tax): Impairments 104 Legal settlement (7) Total Spe
Slide 30: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars 2024 Reconciliation of Marketing & Specialties Income before Income Taxes to Adjusted EBITDA Income before income taxes $ 404 Plus: Depreciation and amortization 36 Marketing & Specialties EBITDA $ 440 Special Item Adjustments (pre-tax): Legal settlement
Slide 31: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars 2024 Reconciliation of Corporate & Other Loss before Income Taxes to Adjusted EBITDA Loss before income taxes $ (330) Plus: Net interest expense 185 Depreciation and amortization 25 Corporate & Other EBITDA $ (120) Special Item Adjustments (pre-tax): None
Slide 32: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars 2H 2023 Reconciliation of Midstream Income before Income Taxes to Adjusted EBITDA Income before income taxes 1,468 Plus: Depreciation and amortization 465 Midstream EBITDA $ 1,933 Special Item Adjustments (pre-tax): Certain tax impacts (2) Net gain on ass
Slide 33: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars (Except as Indicated) 1Q 2024 Atlantic Basin/ Central Europe Gulf Coast Corridor West Coast Worldwide Reconciliation of Refining Income (Loss) Before Income Taxes to Realized Refining Margins Income (loss) before income taxes $ 80 118 210 (277) 131 Plus:
Slide 34: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 1Q 2024 Total Debt $ 20,154 Total Equity 30,793 Debt-to-Capital Ratio 40 % Total Cash $ 1,570 Net Debt-to-Capital Ratio 38 % 34 34 34
Slide 35: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars 1Q 2024 Growth Sustaining Total Capital Expenditures and Investments Midstream $ 209 46 255 Refining 269 82 351 Marketing & Specialties 5 10 15 Corporate & Other 1 6 7 Total $ 484 144 628 35 35 35
Slide 36: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars 1Q 2024 Reconciliation of Net Cash Used in Operating Activities to Operating Cash Flow or CFO, Excluding Working Capital Net Cash Used in Operating Activities $ (236) Less: Net Working Capital Changes (1,447) Operating Cash Flow or CFO, Excluding Working