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HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Phillips 66

Phillips 66 · Mar 18, 2013 · 32 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Phillips 66 – slide 1
    Howard Weil st 41 Annual Energy Conference Greg Garland Chief Executive Officer March 18, 2013 New Orleans, LA
  2. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Phillips 66 – slide 2
    Delivering on Commitments Adjusted Earnings and ROCE (B) Midstream 22 % Enhanced operating excellence 7 Chemicals 6 R&M Corporate Achieved solid financial results 5 ROCE 14 % 4 Captured opportunities 3 7% 2 Created…
  3. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Phillips 66 – slide 3
    Operating Excellence - Safety At Phillips 66 we take the Total Recordable Rates Incidents per 200,000 Hours Worked time to work safely, every job, every day. 2012 2009 2010 2011 1.8 1.1 1.2 0.9 0.4 0.4 0.4 0.3 0.4 0.3 0.3…
  4. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Phillips 66 – slide 4
    Macro Environment - U.S. Midstream 32 100-130 B of infrastructure capital required during this decade 24 6 % CAGR Natural Gas and NGL MMBbls/day 6 % CAGR 80 85 B 16 NGL Crude Oil 2 % CAGR Crude 8 10 25 B Actual…
  5. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Phillips 66 – slide 5
    Macro Environment - Chemicals U.S. Ethane Supply/ Demand Balance 2013 Ethylene Production Cost Curve (MBD) (/ton) 3,000 1,500 Supply Range Petchem Demand West 1,000 Europe 2,000 Ethane Exports NE Asia SE Asia U.S. 500 Ethane…
  6. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Phillips 66 – slide 6
    Macro Environment - Refining N.A. Crude Production U.S. Refined Product Exports (MMBD) (MMBD) 2.0 Utilization Utilization 93.0% Net Exports 15 88.7% Other US ANS GOM Canadian Shale 1.0 0.0 82.9% 10 Net Imports -1.0…
  7. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Phillips 66 – slide 7
    Phillips 66 Strategy Operating Excellence Growth Returns Distributions High-performing organization Providing energy, improving lives 8
  8. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Phillips 66 – slide 8
    Segment Strategy Midstream: Build on existing base Chemicals: Grow capacity and earnings Grow Transportation and NGL Operations Pursue organic growth through CPChem Pursue organic growth through DCP Execute mega-projects Leverage…
  9. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Phillips 66 – slide 9
    Midstream - Large Platform for Growth Capital Program (B) 2.0 1.5 1.0 0.5 0.0 NGL Operations Fractionator 2010 2011 2012 2013E Transportation Storage DCP Midstream Gas Plant Transportation NGL Operations Pipeline DCP…
  10. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Phillips 66 – slide 10
    DCP Midstream - Growth 2013 2014 2015+ Gathering and processing in execution 2 B Gathering and processing expansions 2 B G&P Plant New Plant Pipelines and logistics Expansion/Restart 2 B DCP Legacy New/Growth…
  11. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Phillips 66 – slide 11
    Transportation and NGL Operations - Adding Capacity 2000 additional crude rail cars Jones Act ships Bakken crude to Bayway via Global Partners Export facilities Sand Hills/Southern Hills NGL pipelines Gulf Coast…
  12. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Phillips 66 – slide 12
    Transportation - New Growth Volume Delivery Crude Partner Destination (MBD) Method Bakken 35-40 Enbridge EC, WC, GC Rail Rail to Canadian 30 Targa WC barge Mississippi 20 Magellan Ponca Pipeline Lime Mississippi 40 Ponca…
  13. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Phillips 66 – slide 13
    Chemicals - Focused Portfolio S-Chem (SCP and JCP) Saudi Polymers Q-Chem and Q-Chem II 14
  14. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Phillips 66 – slide 14
    Chemicals - Growth CPChem Equity M.E. Production Capacity CPChem Equity U.S. Production Capacity (Blb/y) (Blb/y) 7.7 31.5 Other Benzene 25.7 24.5 Styrene Paraxylene 3.6 Cyclohexane Alpha Olefins 2.0 Polypropylene…
  15. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Phillips 66 – slide 15
    Chemicals - Growth 2012 2013 2014 2015 2016 2017+ Capital Program (B) SPCo Petrochemicals (35% ownership) 1,200 kMTA 0.6 Sweeny Frac Expansion 22 MBD 0.4 1-Hexene 250 kMTA 0.2 USGC Petrochemicals 1,500 kMTA 0.0 2010…
  16. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Phillips 66 – slide 16
    Refining - Diversified Portfolio Western / Pacific 440 MBD Central Region 475 MBD Gulf Coast 733 MBD Atlantic Basin / Europe 588 MBD United States FD Ireland BI HU WG BW United SF Kingdom WR LA PC Germany BG MI Malaysia…
  17. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Phillips 66 – slide 17
    Refining - Enhancing Returns Phillips 66 U.S. Advantaged Crude (MBD) Brent LLS/ANS Heavy Canadian WTI/WTS Current 3+ Years Extensive U.S. refining portfolio Infrastructure and commercial capabilities Shifting to 100%…
  18. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Phillips 66 – slide 18
    Refining - Enhancing Returns Distillate Yield Phillips 66 Export Infrastructure (Percentage of processed inputs) (MBD) Industry 400 40.8% 39.9% 40.2% 39.5% 285 37.1% 37.4% West 35.8% Gulf East 2010 2011 2012 2013E Current 3+…
  19. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Phillips 66 – slide 19
    Refining - Enhancing Returns Constant Margin Net Income Capital Program Improvement (B) (MM) 2.0 1.0 500 0.0 Adv Crude Yields & Costs 3+ Years 2010 2011 2012 2013E Exports Refining Refining Logistics WRB Mid-cycle…
  20. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Phillips 66 – slide 20
    Marketing & Specialties Capital Program (B) 0.2 0.1 Branded Market Share 20% 10 - 20% Manufacturing Locations: 5 10% Lubricants CPreme Graphite 0.1 - 5% CSPI Flow Improvers Power Generation 0.0 Refinery Locations 2010…
  21. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Phillips 66 – slide 21
    Financial Strategy Disciplined capital allocation Growing shareholder distributions Enhanced financial flexibility 22
  22. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Phillips 66 – slide 22
    Capital Allocation 2013E Sources and Uses of Cash (B) Sustaining capital Share Repurchases Debt Repayment Increasing distributions 1.0 5.3 Growth Capital 0.8 Growth capital 0.8 Dividends 1.0 Sustaining Capital Financial…
  23. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Phillips 66 – slide 23
    Shareholder Distributions Expanded share repurchase plan by 1 B and Regular dividends announced dividend increase to 1.25/year Secure Announced quarterly Growing dividend increase of 25% Competitive Announced 1.0 B share repurchase…
  24. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Phillips 66 – slide 24
    Capital Structure Equity Debt Debt-to-Capital Ratio (B) (B) (%) 24 25 7 21 6 20 2012 2013E 2012 2013E 2012 2013E Equity, debt, and debt-to-capital ratio estimates based on First Call consensus as of 3/5/2013. See appendix for…
  25. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Phillips 66 – slide 25
    A Promising Future Operating excellence Growth Returns Distributions High-performing organization 26
  26. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Phillips 66 – slide 26
    Institutional Investors Contact: Rosy C. Zuklic rosy.zuklicp66.com Manager, Investor Relations 832-765-2297 Appendix
  27. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Phillips 66 – slide 27
    Phillips 66 Reporting Segments 2012 Beginning Q1 2013 R&M (includes transportation) Refining Refining Marketing & Specialties Marketing, Specialties & Other Chemicals (CPChem) Chemicals (CPChem) Midstream Midstream DCP…
  28. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Phillips 66 – slide 28
    2013 Guidance 2013 B Corporate Segment Net Expense (after-tax) 0.5 Turnaround Costs (pre-tax) 0.4 Depreciation and Amortization Expense (pre-tax) 1.0 Cash Capital Expenditures 1.8 31
  29. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Phillips 66 – slide 29
    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…
  30. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Phillips 66 – slide 30
    PSX Non GAAP Reconciliations Reconciliation of Earnings to Adjusted Earnings Millions of Dollars 2012 2011 2010 Consolidated Earnings (loss) 4,124 4,775 735 Adjustments: Net (gain) loss on asset sales (106) (1,545) (116)…
  31. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Phillips 66 – slide 31
    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 2012 2011 2010 R&M Chemicals Earnings (loss) 3,729…
  32. HOWARD WEIL 41ST ANNUAL ENERGY CONFERENCE – Phillips 66 – slide 32
    PSX Non GAAP Reconciliations Phillips 66 - ROCE 2010 2011 2012 Numerator (MM) Net income 740 4,780 4,131 After-tax interest expense 1 11 160 GAAP ROCE earnings 741 4,791 4,291 Special Items 1,024 (1,184) 1,263 Adjusted ROCE…

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