Slide 1: Phillips 66 Earnings Presentation
1 Ponca Bayway City Refinery Humber Bayway Refinery Refinery Refinery July 29, 2022 PONCA CITY, OK NJ LINDEN, N. LINCOLNSHIRE, U.K. LINDEN, NJ
Slide 2: Cautionary Statement
Cautionary Statement This news release 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 Humber Refinery SWEENY/OLD OCEAN, TX N. LINCOLNSHIRE, U.K. Renewable Fuels Catalyst Research Reactor PHILLIPS RESEARCH CENTER, BARTLESVILLE, OK Organic solar cell research at P66 Research Center BARTLESVILLE, OK Sweeny Hub Fractionators Humber Organic Sola
Slide 4: Overview
3Q 2022 Overview Ponca City Refinery Phillips 66 Branded Marketing Site PONCA CITY, OK HOUSTON, Ponca Refinery, PONCA CITY, OKTX Lake Charles Refinery WESTLAKE, LA $MM (UNLESS OTHERWISE NOTED) Denver Terminal DENVER, CO Adjusted earnings 3,122 Adjusted EPS1 6.46 Operating cash flow 3,144 Capital exp
Slide 5: Adjusted Earnings
3Q 2022 Adjusted Earnings 3Q 2022 VS. 2Q 2022 ($MM) 2Q 2022 3Q 2022 Midstream Chemicals Refining Marketing Corporate Income Noncontrolling Adjusted Adjusted & Specialties & Other Taxes Interests Earnings Earnings 353 82 (138) (305) (11) (10) (134) 3,285 3,122 645 135 2,827 847 (246) (937) (149) 3Q 2
Slide 6: Midstream
3Q 2022 Midstream Adjusted Pre-Tax Income 3Q 2022 VS. 2Q 2022 ($MM) 207 Completed Sweeny Frac 4 167 Record NGL fractionated 645 volumes (21) 292 Consolidation of DCP Midstream, Sand Hills Pipeline and Southern Hills Pipeline 2Q 2022 Transportation NGL NOVONIX 3Q 2022 Adjusted & Other Adjusted Pre-Ta
Slide 7: Chemicals
3Q 2022 Chemicals Adjusted Pre-Tax Income 3Q 2022 VS. 2Q 2022 ($MM) Lower O&P margins 1 90% O&P utilization (111) 273 (28) CPChem distributions of $41 MM 135 2Q 2022 Olefins & Specialties, Other 3Q 2022 Adjusted Polyolefins Aromatics & Adjusted Pre-Tax Income Styrenics Pre-Tax Income 105 60 (30) 3Q
Slide 8: Refining
3Q 2022 Refining Adjusted Pre-Tax Income 3Q 2022 VS. 2Q 2022 ($MM) 2Q 2022 Atlantic Gulf Central West 3Q 2022 Adjusted Basin / Coast Corridor Coast Adjusted Pre-Tax Income Europe Pre-Tax Income 91% crude utilization 830 85% clean product yield (341) (581) (213) $26.58/BBL realized margin 3,132 2,827
Slide 9: Refining Margins – Market vs. Realized
3Q 2022 Refining Margins – Market vs. Realized WORLDWIDE REFINING ($/BBL, UNLESS OTHERWISE NOTED) (3.44) (3.50) (1.48) (1.29) 36.29 26.58 3Q 2022 Configuration Secondary Products Feedstock Other 3Q 2022 Market Realized 3:2:1 Margin Avg Market Crude: $96.27 73% Market Capture 9
Slide 10: Marketing & Specialties
3Q 2022 Marketing & Specialties Adjusted Pre-Tax Income 3Q 2022 VS. 2Q 2022 ($MM) 61 21 Higher international margins 847 765 Higher base oil margins 2Q 2022 Marketing Specialties 3Q 2022 Adjusted & Other Adjusted Pre-Tax Income Pre-Tax Income 717 130 3Q 2022 10
Slide 11: Corporate & Other Adjusted Pre-Tax Loss
3Q 2022 Corporate & Other Adjusted Pre-Tax Loss 3Q 2022 VS. 2Q 2022 ($MM) 2Q 2022 Net Interest Corporate 3Q 2022 Adjusted Expense Overhead Adjusted Pre-Tax Loss & Other Pre-Tax Loss (235) (246) (9) (2) 11
Slide 12: Cash Flow
3Q 2022 Cash Flow $B 3.1 (0.5) (0.7) 0.2 (1.2) 3.7 2.8 June 30, CFO Debt Capital Shareholder Other September 30, 2022 Expenditures Distributions 2022 Cash & Investments 2 Cash Balance 1 Balance 1 1) Includes cash and cash equivalents 2) Net of cash acquired 12
Slide 13: Outlook
Outlook South Texas Gateway Terminal INGLESIDE, TX Sand Hills Pipeline Pump Station VAN VLECK, TXDenver Terminal DENVER, CO 4Q 2022 Global Olefins & Polyolefins utilization Mid-90% Refining crude utilization Low - mid 90% Refining turnaround expenses (pre-tax) $180 MM - $220 MM Taft Storage Facility
Slide 14: Questions and Answers
Phillips 66 Branded Marketing Site ST. LOUIS, MO Questions and Answers
Slide 15: Appendix
Phillips 66 Branded Marketing Site ST. LOUIS, MO Appendix
Slide 16: 2022 Estimated Sensitivities
2022 Estimated Sensitivities 1) Annualized number reflects full year impact of the increased interest in DCP. 16 Sensitivities shown above are independent and are only valid within a limited price range
Slide 17: Capital Structure
Capital Structure Consolidated PSX 42% 40% 39% 35% 35% 30% 38% 34% 33% 29% 29% 27% 33.3 27.2 24.6 21.5 21.6 22.1 17.7 15.9 14.4 14.4 11.8 13.0 2.5 3.1 3.3 2.8 3.7 1.6 2019 2020 2021 1Q 2022 2Q 2022 3Q 2022 Equity $B Debt $B Cash & Cash Equivalents $B Debt-to-Capital Net Debt-to-Capital 17
Slide 18: Refining Margins – Atlantic Basin / Europe
3Q 2022 Refining Margins – Market vs. Realized ATLANTIC BASIN / EUROPE ($/BBL, UNLESS OTHERWISE NOTED) Brent: $100.85 (3.75) (0.24) (8.99) 98% crude utilization 33.80 (1.60) 19.22 57% market capture 3Q 2022 Configuration Secondary Feedstock Other 3Q 2022 Market Products Realized 3:2:1 Margin Market
Slide 19: Refining Margins – Gulf Coast
3Q 2022 Refining Margins – Market vs. Realized GULF COAST ($/BBL, UNLESS OTHERWISE NOTED) LLS: $94.19 2.85 (2.85) (4.81) (2.87) 91% crude utilization 28.97 21.29 73% market capture 3Q 2022 Configuration Secondary Feedstock Other 3Q 2022 Market Products Realized 3:2:1 Margin Market 3:2:1 - LLS / Gaso
Slide 20: Refining Margins – Central Corridor
3Q 2022 Refining Margins – Market vs. Realized CENTRAL CORRIDOR ($/BBL, UNLESS OTHERWISE NOTED) 4.54 WTI: $91.76 1.00 (1.47) (3.64) 93% crude utilization 38.33 38.76 101% market capture 3Q 2022 Configuration Secondary Feedstock Other 3Q 2022 Market Products Realized 3:2:1 Margin Market 3:2:1 - WTI /
Slide 21: Refining Margins – West Coast
3Q 2022 Refining Margins – Market vs. Realized WEST COAST ($/BBL, UNLESS OTHERWISE NOTED) (4.54) ANS: $99.12 (6.59) (0.47) (7.37) 47.61 80% crude utilization 28.64 60% market capture 3Q 2022 Configuration Secondary Feedstock Other 3Q 2022 Market Products Realized 3:2:1 Margin Market 3:2:1 - ANS / Lo
Slide 22: Adjusted Earnings 3Q 2022 vs. 3Q 2021
3Q 2022 Adjusted Earnings 3Q 2022 VS. 3Q 2021 ($MM) 300 2,643 (16) (651) (61) 3 3,122 1,403 (499) 3Q 2021 Midstream Chemicals Refining Marketing Corporate Income Noncontrolling 3Q 2022 Adjusted & Specialties & Other Taxes Interests Adjusted Earnings Earnings 645 135 2,827 847 (246) (937) (149) 3Q 20
Slide 23: Midstream vs. 3Q 2021
3Q 2022 Midstream Adjusted Pre-Tax Income 3Q 2022 VS. 3Q 2021 ($MM) 285 (257) (25) 642 645 3Q 2021 Transportation NGL & Other NOVONIX 3Q 2022 Adjusted Adjusted Pre-Tax Income Pre-Tax Income 229 449 (33) 3Q 2022 23
Slide 24: Chemicals vs. 3Q 2021
3Q 2022 Chemicals Adjusted Pre-Tax Income 3Q 2022 VS. 3Q 2021 ($MM) 634 23 (508) (14) 135 3Q 2021 Olefins & Specialties, Other 3Q 2022 Adjusted Polyolefins Aromatics & Adjusted Pre-Tax Income Styrenics Pre-Tax Income 105 60 (30) 3Q 2022 24
Slide 25: Refining vs. 3Q 2021
3Q 2022 Refining Adjusted Pre-Tax Income 3Q 2022 VS. 3Q 2021 ($MM) 372 1,110 733 2,827 428 184 3Q 2021 Atlantic Gulf Central West Coast 3Q 2022 Adjusted Basin / Coast Corridor Adjusted Pre-Tax Income Europe Pre-Tax Income 521 702 1,342 262 3Q 2022 25
Slide 26: Marketing & Specialties vs. 3Q 2021
3Q 2022 Marketing & Specialties Adjusted Pre-Tax Income 3Q 2022 VS. 3Q 2021 ($MM) 37 263 847 547 3Q 2021 Marketing Specialties 3Q 2022 Adjusted & Other Adjusted Pre-Tax Income Pre-Tax Income 717 130 3Q 2022 26
Slide 27: Corporate & Other vs. 3Q 2021
3Q 2022 Corporate & Other Adjusted Pre-Tax Loss 3Q 2022 VS. 3Q 2021 ($MM) 3Q 2021 Adjusted Net Interest Corporate 3Q 2022 Pre-Tax Loss Expense Overhead Adjusted & Other Pre-Tax Loss (230) (246) 12 (28) 27
Slide 28: YTD 2022 Cash Flow
YTD 2022 Cash Flow $B 6.1 (2.0) (1.5) 0.1 (2.1) 3.7 3.1 December 31, CFO Debt Capital Shareholder Other September 30, 2021 Expenditures 2 Distributions 2022 Cash & Investments Cash 1 1 Balance Balance 1) Includes cash and cash equivalents 2) Net of cash acquired 28
Slide 29: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2022 2021 Sep YTD 3Q 2Q Sep YTD 3Q Phillips 66 Consolidated Earnings $ 9,140 5,391 3,167 44 402 Pre-Tax Adjustments: Impairments — — — 1,496 1,298 Pension settlement expense — — — 67 20 Hurricane-related costs (7) (24) — 11 11 Winter-s
Slide 30: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2022 2021 Sep YTD 3Q 2Q Sep YTD 3Q Midstream Pre-Tax Income $ 4,179 3,645 292 1,017 629 Pre-Tax Adjustments: Impairments — — — 208 10 Pension settlement expense — — — 7 3 Winter-storm-related costs — — — 2 — Merger transaction costs 13
Slide 31: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2022 2021 Sep YTD 3Q 2Q Sep YTD 3Q Refining Pre-Tax Income (Loss) $ 6,010 2,851 3,036 (2,895) (1,126) Pre-Tax Adjustments: Impairments — — — 1,288 1,288 Pension settlement expense — — — 32 12 Hurricane-related costs (7) (24) — 10 10 Wi
Slide 32: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2022 2021 Sep YTD 3Q 2Q Sep YTD 3Q Midstream - Transportation Pre-Tax Income $ 939 411 250 475 244 Pre-Tax Adjustments: Impairments — — — 208 10 Winter-storm-related costs — — — 1 — Gain on consolidation (182) (182) — — — Adjusted Pre-
Slide 33: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2022 2021 Sep YTD 3Q 2Q Sep YTD 3Q Midstream - NOVONIX Pre-Tax Income (Loss) $ (431) (33) (240) 224 224 Pre-Tax Adjustments: None — — — — — Adjusted Pre-Tax Income (Loss) $ (431) (33) (240) 224 224 34
Slide 34: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2022 2021 Sep YTD 3Q 2Q Sep YTD 3Q Chemicals - Olefins & Polyolefins Pre-Tax Income $ 698 105 216 1,318 611 Pre-Tax Adjustments: Pension settlement expense — — — 18 2 Winter-storm-related costs — — — 44 — Adjusted Pre-Tax Income $ 698
Slide 35: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2022 2021 Sep YTD 3Q 2Q Sep YTD 3Q Refining - Atlantic Basin / Europe Pre-Tax Income (Loss) $ 1,757 521 1,093 (173) 90 Pre-Tax Adjustments: Pension settlement expense — — — 4 2 Hurricane-related costs — — — 1 1 Winter-storm-related cos
Slide 36: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2022 2021 Sep YTD 3Q 2Q Sep YTD 3Q Refining - Central Corridor Pre-Tax Income (Loss) $ 1,697 1,342 490 (101) 229 Pre-Tax Adjustments: Pension settlement expense — — — 9 3 Winter-storm-related costs — — — 7 — Regulatory compliance costs
Slide 37: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2022 2021 Sep YTD 3Q 2Q Sep YTD 3Q Marketing & Specialties - Marketing & Other Pre-Tax Income $ 1,576 717 656 1,052 452 Pre-Tax Adjustments: Pension settlement expense — — — 5 2 Adjusted Pre-Tax Income $ 1,576 717 656 1,057 454 Marketi
Slide 38: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars (Except as Indicated) 3Q 2022 Atlantic Basin/ Central Europe Gulf Coast Corridor West Coast Worldwide Realized Refining Margins Income before income taxes $ 521 726 1,342 262 2,851 Plus: Taxes other than income taxes 14 18 16 31 79 Depreciation, amortizat
Slide 39: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated September 30, 2022 Total Debt $ 17,657 Total Equity 33,345 Debt-to-Capital Ratio 35 % Total Cash $ 3,744 Net Debt-to-Capital Ratio 29 % 40
Slide 40: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Millions of Dollars 3Q 2022 2022 September YTD Growth Sustaining Total Growth Sustaining Total Capital Expenditures and Investments Midstream $ 352 110 462 $ 534 198 732 Refining 108 102 210 299 302 601 Marketing & Specialties 16 14 30 31 29 60 Corporate
Slide 41: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 3Q 2022 Effective Tax Rates Income before income taxes $ 7,158 Special items (2,950) Adjusted income before income taxes $ 4,208 Income tax expense $ 1,618 Special items (681) Adjusted income tax expense $ 937 GAAP effective tax rate 2