Strategy Operating Committed to safety, reliability and environmental stewardship while Excellence protecting shareholder value Reshaping our portfolio by capturing growth opportunities in Midstream Growth and Chemicals Enhancing…
Operating Excellence See appendix for footnotes. 4
Global Energy Landscape Abundant supply Demand exceeding expectations Energy efficiency increasing Source: International Energy Agency 5
U.S. Energy Landscape Production remains resilient Pace of infrastructure investment contingent on production growth Stronger fuels demand Source: EIA Annual Energy Outlook 2015 6
U.S. Downstream Advantage Refiners and chemical manufacturers remain advantaged Low feedstock costs Low energy costs Scale and complexity MLP structure supports midstream investment See appendix for footnotes. 7
Value of Integration Creating value across downstream Accelerating growth Leveraging existing portfolio Allocating capital efficiently Expanding multiple See appendix for footnotes. 8
Midcontinent Integrated Growth Midstream 280 MM EBITDA growth Palermo rail terminal/Sacagawea pipeline (PSXP) Dakota Access/ETCO crude pipelines Refining, Marketing & Specialties 430 MM EBITDA growth Ponca City Yield improvement…
Western Gulf Creating a World-Class Energy Complex Midstream 750 MM EBITDA growth Sweeny Fractionator One Freeport LPG export terminal Cross-channel connector (PSXP) Eagle Ford crude pipeline Sweeny Fractionator Two Refining,…
Eastern Gulf Refining Logistics and Midstream Growth Midstream 200 MM EBITDA growth Beaumont terminal expansion: +7 MMBbls Bayou Bridge pipeline Alliance clean products dock Refining, Marketing & Specialties 150 MM EBITDA growth…
West Coast Enhancing Returns Midstream 60 MM EBITDA growth Completed Ferndale rail rack 4Q 2014 (PSXP) Los Angeles waterborne crude tank Santa Maria rail rack Refining, Marketing & Specialties 60 MM EBITDA growth San Francisco…
PSXP Value to PSX Fee-based assets Growth opportunities Organic Drop downs Selective acquisitions Funds Midstream growth See appendix for footnotes. 15
DCP Midstream 550 MM 2015 growth capital 500 MM EBITDA growth by 2018 Placing current projects into service in 2015 Keathley Canyon National Helium Plant expansion Zia II Plant and Gathering Lucerne 2 Plant and Gathering Sand…
Chemicals Petrochemical demand driven by global GDP growth Cost-advantaged feedstocks High capacity utilization supports strong margins Source: Wood MacKenzie 17
CPChem Projects Update 1.5 B EBITDA growth by 2018 Completed 1-hexene project and 10th Sweeny furnace in 2014 NAO expansion 100 kMTA at Cedar Bayou, TX Completed 2Q 2015 USGC Petrochemicals 1,500 kMTA (ethylene) at Cedar…
Refining Enhancing Returns Significant free cash flow generation High-return projects creating sustainable earnings increases EBITDA growth: 850 MM Increasing ROCE 4% by 2018 Expansive footprint provides leverage for…
Marketing & Specialties High-returning businesses 250 MM EBITDA growth by 2018 25% ROCE U.S. Marketing Wholesale model Enhancing fuels brands Volume growth International Marketing Retail / wholesale model Adding 100+ sites…
Phillips 66 Available Cash Flow Diversified cash generation Funding transformational growth Growing distributions Financial flexibility Strong free cash flow yield See appendix for footnotes. 21
Capital Allocation Ensuring financial flexibility Investment grade credit rating Strong balance sheet Funding growth Cash from operations PSXP proceeds Returning capital to shareholders Dividend growth Ongoing share…
Capital Budget 2 - 3 B Growth capital Legacy, scalable Midstream assets Fee-based assets suitable for PSXP dropdown Quick payout Refining projects 1 B Sustaining capital Maintaining safe, reliable assets 23
Distributions See appendix for footnotes. 24
Delivering Value 45% EBITDA growth Growing Midstream and Chemicals Enhancing returns in Refining Realizing benefits of reinvestment See appendix for footnotes. 25
Free Cash Flow 2013 1H 2015 Average CFO excludes working capital. Average from 2013 1H 2015 DCP Midstream, CPChem and WRB free cash flow calculated at the enterprise level 29
1H 2015 Adjusted ROCE 30
Capital Structure Excludes PSXP. 31
2015 Sensitivities Phillips 66 Sensitivities shown above are independent and are only valid within a limited price range. 32
Phillips 66 Capital Program Millions of Dollars 2015 Budget Sustaining Growth Total Capital Expenditures and Investments Consolidated Midstream(1) Transportation 148 1,084 1,232 NGL 19 1,912 1,931 167 2,996 3,163 Chemicals - -…
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