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2013 ANNUAL MEETING OF STOCKHOLDERS – Phillips 66

Phillips 66 · May 8, 2013 · 30 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. 2013 ANNUAL MEETING OF STOCKHOLDERS – Phillips 66 – slide 1
    2013 Annual Meeting of Stockholders Greg Garland Chief Executive Officer May 8, 2013 Houston, TX
  2. 2013 ANNUAL MEETING OF STOCKHOLDERS – Phillips 66 – slide 2
    2012 Accomplishments - Operational Excellence Total Recordable Rates U.S. Refining Emissions (Lb/MBbl) Incidents per 200,000 Hours Worked (SOx, NOx, and Particulate Matter) 250 Industry Average 200 2012 2009 2010 2011…
  3. 2013 ANNUAL MEETING OF STOCKHOLDERS – Phillips 66 – slide 3
    2012 Accomplishments - Growth DCP NGL Production (MBD) 402 Acquired one third interest in Sand 383 Hills and Southern Hills Pipelines 369 Increased DCP NGL production 2010 2011 2012 CPChem Equity Global Production Capacity…
  4. 2013 ANNUAL MEETING OF STOCKHOLDERS – Phillips 66 – slide 4
    2012 Accomplishments - Returns Adjusted Earnings and ROCE (B) Increased ROCE from 14% to 22% Midstream 7 22 % Chemicals Marketing & Specialties Refining 20% increase in advantaged feedstocks 5 Corporate 14 % ROCE 3 Expanded…
  5. 2013 ANNUAL MEETING OF STOCKHOLDERS – Phillips 66 – slide 5
    2012 Accomplishments - Distributions Expanded share repurchase plan by 1 B and Regular dividends announced dividend increase to 1.25/year; purchased 356 MM of shares in 2012 Secure Announced quarterly Growing dividend increase of…
  6. 2013 ANNUAL MEETING OF STOCKHOLDERS – Phillips 66 – slide 6
    Building a High-Performing Organization Vision and values Collaborative culture Diversity and inclusion Empowerment and accountability Development and mentoring 7
  7. 2013 ANNUAL MEETING OF STOCKHOLDERS – Phillips 66 – slide 7
    Macro Environment - U.S. Advantage Advantaged feedstocks Low energy costs Scale and complexity Quality workforce 8
  8. 2013 ANNUAL MEETING OF STOCKHOLDERS – Phillips 66 – slide 8
    Macro Environment - Jobs and U.S. Economic Impacts U.S. Jobs Supported by Unconventional Oil and Gas Resources 1.1 trillion 4 (millions) total value added by the energy industry to the national economy in 2011 3 62 billion annual…
  9. 2013 ANNUAL MEETING OF STOCKHOLDERS – Phillips 66 – slide 9
    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…
  10. 2013 ANNUAL MEETING OF STOCKHOLDERS – Phillips 66 – slide 10
    Macro Environment - U.S. Midstream 32 100-130 B of infrastructure capital required during this decade 24 6 % CAGR 6 % CAGR Natural Gas and NGL MMBbls/day 80 85 B 16 NGL Crude Oil 2 % CAGR Crude 8 10 25 B Actual Forecast…
  11. 2013 ANNUAL MEETING OF STOCKHOLDERS – Phillips 66 – slide 11
    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 Europe 2,000 Ethane Exports 1,000 NE Asia SE Asia U.S. 1,000 500…
  12. 2013 ANNUAL MEETING OF STOCKHOLDERS – Phillips 66 – slide 12
    Phillips 66 Strategy Operating Excellence Growth Returns Distributions High-performing organization Providing energy, improving lives 13
  13. 2013 ANNUAL MEETING OF STOCKHOLDERS – Phillips 66 – slide 13
    Segment Strategy Refining: Enhance returns Marketing & Specialties: Selective growth Process advantaged crudes Grow Lubricants and European Marketing Increase export capability Ensure refinery pull-through Optimize portfolio…
  14. 2013 ANNUAL MEETING OF STOCKHOLDERS – Phillips 66 – slide 14
    Refining - Enhancing Returns U.S. Refining Crudes (MBD) Brent LLS/ANS Heavy Canadian WTI/WTS Current 3+ Years Shifting to 100% advantaged crude See appendix for footnotes. 15
  15. 2013 ANNUAL MEETING OF STOCKHOLDERS – Phillips 66 – slide 15
    Marketing & Specialties Refinery pull-through Increasing Jet sites 14% Branded Market Share 20% Manufacturing Locations: Growing lubricants Lubricants 10 - 20% PSPI Flow Improvers 5 10% Refinery Locations 0.1 - 5% Power…
  16. 2013 ANNUAL MEETING OF STOCKHOLDERS – Phillips 66 – slide 16
    Midstream - Large Platform for Growth Executing 6 B in DCP growth projects Expanding logistics Pursuing new fractionator capacity NGL Operations Fractionator Transportation DCP Midstream Storage Gas Plant PSXP Initial…
  17. 2013 ANNUAL MEETING OF STOCKHOLDERS – Phillips 66 – slide 17
    Chemicals - Growth 2012 2013 2014 2015 2016 2017+ Growing CPChem Equity U.S. SPCo Petrochemicals Production Capacity (35% ownership) (Blb/y) 1,200 kMTA 31.5 Sweeny Frac 25.7 24.5 Expansion 22 MBD 1-Hexene 250 kMTA USGC…
  18. 2013 ANNUAL MEETING OF STOCKHOLDERS – Phillips 66 – slide 18
    Financial Strategy Disciplined capital allocation Growing shareholder distributions Enhanced financial flexibility 19
  19. 2013 ANNUAL MEETING OF STOCKHOLDERS – Phillips 66 – slide 19
    Capital Allocation 2013E Sources and Uses of Cash (B) Sustaining capital Share Repurchases Increasing distributions Debt Repayment 6.0 1.0 Growth Capital 0.8 Growth capital Dividends 0.8 1.0 Sustaining Capital Financial…
  20. 2013 ANNUAL MEETING OF STOCKHOLDERS – Phillips 66 – slide 20
    Disciplined Capital Investments (B) 4 3.7 3.6 3 2.4 2.4 2 1 0 2010 2011 2012 2013 Budget Midstream Chemicals Refining Marketing & Specialties Corporate Capital program includes our net share of certain equity affiliate…
  21. 2013 ANNUAL MEETING OF STOCKHOLDERS – Phillips 66 – slide 21
    Total Shareholder Return PSX Stock Price 90.8% May 1, 2012 32.76 December 31, 2012 53.10 61.7% 63.6% 55.8% 43.6% 39.7% Group Average = 22.4% 35.1% 0.5% 0.6% 0.7% 1.1% 1.4% 1.8% 2.4% 2.4% -1.4% DOW EPD DJIA OKE BP XOM…
  22. 2013 ANNUAL MEETING OF STOCKHOLDERS – Phillips 66 – slide 22
    A Promising Future Operating excellence Growth Returns Distributions High-performing organization 23
  23. 2013 ANNUAL MEETING OF STOCKHOLDERS – Phillips 66 – slide 23
    Appendix
  24. 2013 ANNUAL MEETING OF STOCKHOLDERS – Phillips 66 – slide 24
    2013 Guidance 2013 B Corporate Segment Net Expense (after-tax) 0.4 Turnaround Costs (pre-tax) 0.4 Depreciation and Amortization Expense (pre-tax) 1.0 Cash Capital Expenditures 1.8 27
  25. 2013 ANNUAL MEETING OF STOCKHOLDERS – Phillips 66 – slide 25
    2013 Sensitivities Sensitivities shown above are only valid within a limited price range. *Assumes LLS is less expensive than Brent. 28
  26. 2013 ANNUAL MEETING OF STOCKHOLDERS – Phillips 66 – slide 26
    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)…
  27. 2013 ANNUAL MEETING OF STOCKHOLDERS – Phillips 66 – slide 27
    PSX Non GAAP Reconciliations Millions of Dollars Millions of Dollars 2012 2011 2010 2012 2011 2010 Midstream Refining Earnings (loss) 53 2,149 386 Earnings (loss) 3,217 1,529 (545) Adjustments: Adjustments: Net (gain) loss on asset…
  28. 2013 ANNUAL MEETING OF STOCKHOLDERS – Phillips 66 – slide 28
    PSX Non GAAP Reconciliations Phillips 66 Capital Program Millions of Dollars 2013E 2012 2011 2010 Consolidated Capital Expenditures and Investments Midstream 586 704 122 150 Refining* 1,058 738 771 886 Marketing and Specialties…
  29. 2013 ANNUAL MEETING OF STOCKHOLDERS – Phillips 66 – slide 29
    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…
  30. 2013 ANNUAL MEETING OF STOCKHOLDERS – Phillips 66 – slide 30
    PSX Non GAAP Reconciliations Chemicals - ROCE 2012 Numerator (MM) Net income 823 After-tax interest expense - GAAP ROCE earnings 823 Special Items 157 Adjusted ROCE earnings 980 Denominator (MM) GAAP average capital employed*…

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