Slide 1: Billings Refinery Vacuum Unit
Billings Refinery Vacuum Unit BILLINGS, MT Billings BillingsRefinery BILLINGS, Refinery BILLINGS,MT July 29, 2022 MT 1
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 Humber Refinery SweenyOCEAN, SWEENY/OLD Hub Fractionators TX N. LINCOLNSHIRE, U.K. Renewable Fuels Catalyst OLD Research Reactor OCEAN, TX PHILLIPS RESEARCH CENTER, BARTLESVILLE, OK Sweeny Hub Fractionators Humber Organic Solar Cells at Phillips 66 Researc
Slide 4: 2022 Investor Day Priorities
2022 Investor Day Priorities 4
Slide 5: 2022 Overview
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 $8,901 Adjusted EPS1 18.79 Operating cash flow 10,813 Capital exp
Slide 6: 2022 Cash Flow
2022 Cash Flow $B 0.6 10.8 (2.4) (2.2) (3.3) (0.5) 6.1 3.1 December 31, CFO Related Party Debt Capital Shareholder Other December 31, 2021 Loans Expenditures Distributions 2022 Cash & Investments 2 Cash 1 1 Balance Balance 1) Includes cash and cash equivalents 2) Net of cash acquired 6
Slide 7: 4Q 2022 Overview
4Q 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 Sand Hills Metering Station DENVER, CO Mt. Belvieu, TX Adjusted earnings $ 1,899 Adjusted E
Slide 8: 4Q 2022 Adjusted Earnings
4Q 2022 Adjusted Earnings 4Q 2022 VS. 3Q 2022 ($MM) 3Q 2022 4Q 2022 Midstream Chemicals Refining Marketing Corporate Income Noncontrolling Adjusted Adjusted & Specialties & Other Taxes Interests Earnings Earnings 66 (83) 363 11 (1,257) 3,122 (289) (34) 1,899 674 52 1,626 539 (280) (574) (138) 4Q 202
Slide 9: 4Q 2022 Midstream Adjusted Pre-Tax Income
4Q 2022 Midstream Adjusted Pre-Tax Income 4Q 2022 VS. 3Q 2022 ($MM) 22 36 8 Record LPG cargos Record NGL fractionated volumes 674 608 Full quarter of results for DCP Midstream, Sand Hills Pipeline and Southern Hills Pipeline 3Q 2022 Transportation NGL NOVONIX 4Q 2022 Adjusted & Other Adjusted Pre-Ta
Slide 10: 4Q 2022 Chemicals Adjusted Pre-Tax Income
4Q 2022 Chemicals Adjusted Pre-Tax Income 4Q 2022 VS. 3Q 2022 ($MM) Lower margins (83) 83% O&P utilization 135 FID reached on integrated polymers facilities on U.S. Gulf Coast and in Ras Laffan 52 3Q 2022 4Q 2022 Adjusted Adjusted Pre-Tax Income Pre-Tax Income 10
Slide 11: 4Q 2022 Refining Adjusted Pre-Tax Income
4Q 2022 Refining Adjusted Pre-Tax Income 4Q 2022 VS. 3Q 2022 ($MM) 3Q 2022 Atlantic Gulf Central West 4Q 2022 Adjusted Basin / Coast Corridor Coast Adjusted Pre-Tax Income Europe Pre-Tax Income 91% crude utilization 88 86% clean product yield (386) $19.73/BBL realized margin (627) 2,883 (332) $236 M
Slide 12: 4Q 2022 Refining Margins – Market vs. Realized
4Q 2022 Refining Margins – Market vs. Realized WORLDWIDE REFINING ($/BBL, UNLESS OTHERWISE NOTED) (0.69) 0.46 (3.59) (0.03) 23.58 19.73 4Q 2022 Configuration Secondary Products Feedstock Other 4Q 2022 RIN-Adjusted Realized Market 3:2:1 Margin Avg Market Crude: $86.12 84% RIN-Adjusted Market Capture
Slide 13: 4Q 2022 Marketing & Specialties Adjusted Pre-Tax Income
4Q 2022 Marketing & Specialties Adjusted Pre-Tax Income 4Q 2022 VS. 3Q 2022 ($MM) Lower domestic margins (289) 828 Lower international margins 539 3Q 2022 4Q 2022 Adjusted Adjusted Pre-Tax Income Pre-Tax Income 13
Slide 14: 4Q 2022 Corporate & Other Adjusted Pre-Tax Loss
4Q 2022 Corporate & Other Adjusted Pre-Tax Loss 4Q 2022 VS. 3Q 2022 ($MM) 3Q 2022 Net Interest Corporate 4Q 2022 Adjusted Expense Overhead Adjusted Pre-Tax Loss & Other Pre-Tax Loss (246) (280) (6) (28) 14
Slide 15: 4Q 2022 Cash Flow
4Q 2022 Cash Flow $B 0.4 2.1 (0.5) (0.7) 2.7 (1.2) (0.4) 6.1 3.7 September CFO Working Related Debt Capital Shareholder Other December 30, (excluding Capital Party Loans Expenditures Distributions 31, 2022 working & 2 2022 Cash capital) Investments Cash 1 1 Balance Balance 1) Includes cash and cash
Slide 16: Outlook
Outlook South Texas Gateway Terminal INGLESIDE, TX 1Q 2023 San Francisco Refinery Global Olefins & Polyolefins utilization Mid-90% RODEO, CA Refining crude utilization Mid-80% Refining turnaround expenses $240 MM - $270 MM Corporate & Other costs $230MM - $260 MM 2023 Taft Storage Facility at Gray O
Slide 17: Questions and Answers
Phillips 66 Branded Marketing Site ST. LOUIS, MO Questions and Answers
Slide 18: Appendix
Phillips 66 Branded Marketing Site ST. LOUIS, MO Appendix
Slide 19: 2023 Estimated Sensitivities
2023 Estimated Sensitivities 19
Slide 20: Capital Structure
Capital Structure Consolidated PSX 42% 40% 39% 35% 35% 34% 38% 34% 33% 29% 29% 24% 33.3 34.1 24.6 21.5 21.6 22.1 17.7 17.2 15.9 14.4 14.4 13.0 6.1 2.5 3.1 3.3 2.8 3.7 2020 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 Equity $B Debt $B Cash & Cash Equivalents $B Debt-to-Capital Net Debt-to-Capital 20
Slide 21: 4Q 2022 Refining Margins – Market vs. Realized
4Q 2022 Refining Margins – Market vs. Realized ATLANTIC BASIN / EUROPE ($/BBL, UNLESS OTHERWISE NOTED) (0.41) (0.52) Brent: $88.71 (6.02) (2.58) 101% crude utilization 29.11 19.58 67% RIN-adjusted market capture 4Q 2022 Configuration Secondary Feedstock Other 4Q 2022 RIN-Adjusted Products Realized M
Slide 22: 4Q 2022 Refining Margins – Market vs. Realized
4Q 2022 Refining Margins – Market vs. Realized GULF COAST ($/BBL, UNLESS OTHERWISE NOTED) 1.66 (1.59) 4.86 LLS: $85.50 17.83 (6.41) 89% crude utilization 16.35 92% RIN-adjusted market capture 4Q 2022 Configuration Secondary Feedstock Other 4Q 2022 RIN-Adjusted Products Realized Market 3:2:1 Margin R
Slide 23: 4Q 2022 Refining Margins – Market vs. Realized
4Q 2022 Refining Margins – Market vs. Realized CENTRAL CORRIDOR ($/BBL, UNLESS OTHERWISE NOTED) 4.10 1.58 WTI: $82.85 2.39 (4.06) 94% crude utilization 25.03 21.02 119% RIN-adjusted market capture 4Q 2022 Configuration Secondary Feedstock Other 4Q 2022 RIN-Adjusted Products Realized Market 3:2:1 Mar
Slide 24: 4Q 2022 Refining Margins – Market vs. Realized
4Q 2022 Refining Margins – Market vs. Realized WEST COAST ($/BBL, UNLESS OTHERWISE NOTED) (2.02) ANS: $87.99 (3.92) (1.41) (3.39) 74% crude utilization 27.51 16.77 61% RIN-adjusted market capture 4Q 2022 Configuration Secondary Feedstock Other 4Q 2022 RIN-Adjusted Products Realized Market 3:2:1 Marg
Slide 25: 4Q 2022 Adjusted Earnings
4Q 2022 Adjusted Earnings 4Q 2022 VS. 4Q 2021 ($MM) 68 1,160 (35) (220) (40) 40 1,899 (372) 1,298 4Q 2021 Midstream Chemicals Refining Marketing Corporate Income Noncontrolling 4Q 2022 Adjusted & Specialties & Other Taxes Interests Adjusted Earnings Earnings 674 52 1,626 539 (280) (574) (138) 4Q 202
Slide 26: 4Q 2022 Midstream Adjusted Pre-Tax Income
4Q 2022 Midstream Adjusted Pre-Tax Income 4Q 2022 VS. 4Q 2021 ($MM) 233 (157) (36) 634 674 4Q 2021 Transportation NGL & Other NOVONIX 4Q 2022 Adjusted Adjusted Pre-Tax Income Pre-Tax Income 237 448 (11) 4Q 2022 26
Slide 27: 4Q 2022 Chemicals Adjusted Pre-Tax Income
4Q 2022 Chemicals Adjusted Pre-Tax Income 4Q 2022 VS. 4Q 2021 ($MM) (372) 424 52 4Q 2021 4Q 2022 Adjusted Adjusted Pre-Tax Income Pre-Tax Income 27
Slide 28: 4Q 2022 Refining Adjusted Pre-Tax Income
4Q 2022 Refining Adjusted Pre-Tax Income 4Q 2022 VS. 4Q 2021 ($MM) 571 (145) 240 494 1,626 466 4Q 2021 Atlantic Gulf Central West Coast 4Q 2022 Adjusted Basin / Coast Corridor Adjusted Pre-Tax Income Europe Pre-Tax Income 618 360 716 (68) 4Q 2022 28
Slide 29: 4Q 2022 Marketing & Specialties Adjusted Pre-Tax Income
4Q 2022 Marketing & Specialties Adjusted Pre-Tax Income 4Q 2022 VS. 4Q 2021 ($MM) 68 539 471 4Q 2021 4Q 2022 Adjusted Adjusted Pre-Tax Income Pre-Tax Income 29
Slide 30: 4Q 2022 Corporate & Other Adjusted Pre-Tax Loss
4Q 2022 Corporate & Other Adjusted Pre-Tax Loss 4Q 2022 VS. 4Q 2021 ($MM) 4Q 2021 Adjusted Net Interest Corporate 4Q 2022 Pre-Tax Loss Expense Overhead Adjusted & Other Pre-Tax Loss (245) (280) 9 (44) 30
Slide 31: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2022 2021 Year 4Q 3Q Year 4Q Phillips 66 Consolidated Earnings $ 11,024 1,884 5,391 1,317 1,273 Pre-Tax Adjustments: Impairments — — — 1,496 — Certain tax impacts — — — (11) (11) Pension settlement expense — — — 77 10 Hurricane-related
Slide 32: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2022 2021 Year 4Q 3Q Year 4Q Midstream Pre-Tax Income $ 4,734 656 3,608 1,500 559 Pre-Tax Adjustments: Impairments — — — 208 — Pension settlement expense — — — 8 1 Hurricane-related costs — — — 4 4 Winter-storm-related costs — — — 2 —
Slide 33: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2022 2021 Year 4Q 3Q Year 4Q Refining Pre-Tax Income (Loss) $ 7,816 1,640 2,907 (2,353) 408 Pre-Tax Adjustments: Impairments — — — 1,288 — Certain tax impacts — — — (11) (11) Pension settlement expense — — — 37 5 Hurricane-related cost
Slide 34: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2022 2021 Year 4Q 3Q Year 4Q Corporate & Other Pre-Tax Loss $ (1,169) (340) (320) (974) (246) Pre-Tax Adjustments: Pension settlement expense — — — 4 1 Restructuring costs 2 159 60 74 — — Adjusted Pre-Tax Loss $ (1,010) (280) (246) (97
Slide 35: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2022 2021 Year 4Q 3Q Year 4Q Midstream - Transportation Pre-Tax Income $ 1,176 237 411 678 203 Pre-Tax Adjustments: Impairments — — — 208 — Winter-storm-related costs — — — 1 — 1 Alliance shutdown-related costs — — — 70 70 Gain on cons
Slide 36: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2022 2021 Year 4Q 3Q Year 4Q Midstream - NOVONIX Pre-Tax Income (Loss) $ (442) (11) (33) 370 146 Pre-Tax Adjustments: None — — — — — Adjusted Pre-Tax Income (Loss) $ (442) (11) (33) 370 146 36
Slide 37: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2022 2021 Year 4Q 3Q Year 4Q Refining - Atlantic Basin / Europe Pre-Tax Income $ 2,402 618 530 1 147 Pre-Tax Adjustments: Certain tax impacts — — — (4) (4) Pension settlement expense — — — 5 1 Hurricane-related costs — — — 1 — Winter-s
Slide 38: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 2022 2021 Year 4Q 3Q Year 4Q Refining - Central Corridor Pre-Tax Income $ 2,415 716 1,343 72 171 Pre-Tax Adjustments: Pension settlement expense — — — 10 1 Winter-storm-related costs — — — 7 — Regulatory compliance costs 22 — — (27) (2
Slide 39: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars (Except as Indicated) 4Q 2022 Atlantic Basin/ Central Europe Gulf Coast Corridor West Coast Worldwide Realized Refining Margins Income (loss) before income taxes $ 618 374 716 (68) 1,640 Plus: Taxes other than income taxes 6 19 5 17 47 Depreciation, amort
Slide 40: Non-GAAP Reconciliations
Non-GAAP Reconciliations 2022 Numerator ($MM) Net Income $ 11,391 After-tax interest expense 489 GAAP ROCE earnings 11,880 After-tax special items (2,113) Adjusted ROCE earnings $ 9,767 Denominator ($MM) GAAP average capital employed1 $ 43,691 2022 Annualized GAAP ROCE 27 % 2022 Annualized Adjusted
Slide 41: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated December 31, 2022 Total Debt $ 17,190 Total Equity 34,106 Debt-to-Capital Ratio 34 % Total Cash $ 6,133 Net Debt-to-Capital Ratio 24 % 41
Slide 42: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Millions of Dollars 4Q 2022 2022 Growth Sustaining Total Growth Sustaining Total Capital Expenditures and Investments Midstream1 $ 211 103 314 $ 744 299 1,043 Refining 177 147 324 477 451 928 Marketing & Specialties 18 11 29 48 41 89 Corporate & Other 4 4
Slide 43: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated 4Q 2022 Year Effective Tax Rates Income before income taxes $ 2,547 14,639 Special items 64 (2,748) Adjusted income before income taxes $ 2,611 11,891 Income tax expense $ 535 3,248 Special items 39 (635) Adjusted income tax expense $