Credit Suisse Energy Summit Tim Taylor Executive Vice President, Commercial, Marketing, Transportation and Business Development February 5, 2013 Vail, Colorado
Growing Value Midstream Chemicals Refining & Marketing U.S. oil and gas production Low cost U.S. feedstocks Adding value and growth drives investment underpin petrochemical enhancing returns expansion 3
Expanding Higher Valued Businesses Growing and shifting portfolio See appendix for footnotes. 4
Midstream DCP Midstream 50/50 JV with Spectra Leading U.S. gatherer and processor Largest U.S. NGL producer Adjusted EBITDA 1.1 B Phillips 66 Midstream 3 NGL fractionators 1 natural gas pipeline 22% ROCE Adjusted EBITDA 180…
Midstream Strategy Expand DCP gathering & processing Build NGL transport to Gulf Coast Grow fractionation & export capability Establish MLP to support growth and increase value 6
Chemicals Delivering Profitable Growth CPChem Global Portfolio 36 Manufacturing Sites 2 Research Facilities Sales into over 100 countries 31% ROCE Adjusted EBITDA 3.1 B See appendix for footnotes. 7
Chemicals Strategy 2013 Ethylene Production Cost Curve Access advantaged feedstocks (/ton) U.S. Gulf Coast growth 2013 NGL fractionation expansion 2014 1hexene plant at Cedar Bayou 2017 Ethane cracker and derivatives Proprietary…
Refining & Marketing Western/Pacific Central Corridor Gulf Coast Atlantic Basin / Europe United States Refining Ireland 1.8 U.S. capacity 0.4 International capacity United Kingdom Marketing U.S. branded sites International…
Increasing Advantaged Crude Throughput Targeting 90% advantaged crude longterm See appendix for footnotes. 10
Refining and Marketing Strategy Improve Refining returns Increase advantaged feedstocks Drive margin improvements Grow Marketing and Specialties Enable full refining utilization Pursue highvalue investments Implement Optimize…
Capital Allocation 2010 2.1 B Sustaining capital 2011 5.0 B Growth capital 2012 4.3 B Increasing distributions 2013E 4.5 B Dividends Sustaining Capital Financial flexibility Growth Capital Cash from Operations 2013E…
Business Investments (B) Midstream Chemicals R&M Refining WRB DCP P66 Midstream CPChem MSO Trans. Capital Program of 3.7 B in 2013 Midstream, Chemicals, and R&M include equity share of DCP Midstream, CPChem, and WRB capital…
Capital Structure Equity Debt DebttoCapital Ratio (B) (B) (%) 7 25 23 21 6 20 2012 2013E 2012 2013E 2012 2013E Equity, debt, and debttocapital ratio estimates based on analysts earnings estimates. See appendix for additional…
2013 Key Initiatives Growth WE ARE PHILLIPS 66 Establish MLP / grow Midstream Progress petrochemical investments Returns Increase advantaged crude runs Maintain capital discipline Implement Optimize 66 Increase distributions…
2013 Guidance 2013 B Corporate Segment Net Expense 0.5 Turnaround Costs 0.4 Depreciation and Amortization Expense 1.0 Cash Capital Expenditures 1.8 19
2013 Sensitivities Worldwide R&M (assuming 95% refining utilization rate) Net Income MM 1/BBL Increase in Refining Margin 440 1/BBL Increase in Crude Price Impact on Secondary Products (20) Impacts due to Actual Crude Feedstock…
PSX Non GAAP Reconciliations Reconciliation of Earnings to Adjusted Earnings Phillips 66 - ROCE 2011 2012 Millions of Dollars 2012 2011 Numerator (MM) Consolidated Net income 4,780 4,131 Earnings (loss) 4,124 4,775 After-tax…
PSX Non GAAP Reconciliations Reconciliation of Earnings to Adjusted Earnings Reconciliation of Earnings to Adjusted Earnings Millions of Dollars Millions of Dollars 2012 2011 2010 2009 2012 2011 2010 2009 R&M Midstream Earnings…
PSX Non GAAP Reconciliations R&M EBITDA ROCE - 2012 Millions of Dollars R&M Midstream Chemicals 2012 Net Income 3,736 Numerator (MM) Net income 3,736 6 823 Income taxes 2,367 After-tax interest expense - - - Net interest expense…
PSX Non GAAP Reconciliations Non-DCP P66 Midstream DCP Midstream, LLC CPChem Millions of Dollars Millions of Dollars Millions of Dollars 2012 2012 2012 Net income (173) Net income 2,403 Net income 583 Income taxes (94) Income…
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