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May 2016 Investor Update – Phillips 66

Phillips 66 · May 20, 2016 · 45 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. May 2016 Investor Update – Phillips 66 – slide 1
    Investor Update May 2016 NYSE: PSX www.phillips66.com
  2. May 2016 Investor Update – Phillips 66 – slide 2
    Diversified Downstream Company Marketing & Refining: Midstream: Growth Chemicals: Growth Specialties: Enhance Returns Selective Growth Execute Sweeny Hub Grow CPChem organically Optimize crude slate Expand European retail Grow…
  3. May 2016 Investor Update – Phillips 66 – slide 3
    Strategy Adjusted EBITDA Operating Excellence (B) 9.7 Growth 8.5 7.8 7.4 Returns Distributions High-Performing Organization 2012 2013 2014 2015 Refining M&S Chemicals DCP Midstream See appendix for footnotes. 4
  4. May 2016 Investor Update – Phillips 66 – slide 4
    Operating Excellence Total Recordable Rates Refining Environmental Metrics (Incidents per 200,000 Hours Worked) Industry Average 1.0 12 13 14 15 0.5 430 317 300 279 0.0 Phillips 66 CPChem DCP 2012 2013 2014 2015 Operating Costs…
  5. May 2016 Investor Update – Phillips 66 – slide 5
    Market Dynamics Brent (/bbl) Global Market Crack (/bbl) 112 109 17 17 99 14 13 12 52 39 2012 2013 2014 2015 2016 YTD 2012 2013 2014 2015 2016 YTD NGL Weighted Average (cpg) PE Cash Chain Margin (cpp) 82 90 89 42 36 33…
  6. May 2016 Investor Update – Phillips 66 – slide 6
    Value Chains 7
  7. May 2016 Investor Update – Phillips 66 – slide 7
    Midstream 8
  8. May 2016 Investor Update – Phillips 66 – slide 8
    Midstream Growth Sweeny Midstream Hub EBITDA Sweeny Fractionator One and Clemens Caverns in (B) operation 4Q 2015 Freeport LPG Export Terminal startup expected 2H 2016 2.3 DAPL/ETCOP 0.4 Mechanical completion expected in 4Q 2016…
  9. May 2016 Investor Update – Phillips 66 – slide 9
    Phillips 66 Partners LP Strategic relationship with PSX Stable and predictable cash flows Low cost capital source Financial flexibility 10
  10. May 2016 Investor Update – Phillips 66 – slide 10
    DCP Midstream Natural Gas Total Throughput (Tbtu/d) Strengthened balance sheet Significant self-help initiatives Cash flow breakeven reduction to below 35 cpg NGL 7.1 7.1 7.3 7.1 Operating improvements Contract realignment 2012 2013…
  11. May 2016 Investor Update – Phillips 66 – slide 11
    Chemicals 12
  12. May 2016 Investor Update – Phillips 66 – slide 12
    Global Chemicals Demand Global Ethylene Demand and Utilization (MM Metric Tons and %) Petrochemical demand driven by 87.7% global economic growth 86.6% 86.9% 86.1% Demand outpaced capacity additions 137 141 134 129 2012…
  13. May 2016 Investor Update – Phillips 66 – slide 13
    Chemicals Production Costs 2016E vs 2015 Average Ethylene Production Cost Curve (/ton) Petrochemical production costs 750 2015 reduced globally 2016E Asia Coal 600 W. Europe Asia LPG/Ethane CPChem location-advantaged 450 CPChem…
  14. May 2016 Investor Update – Phillips 66 – slide 14
    CPChem Growth USGC Petrochemicals Project 1,500 kMTA (ethylene) at Cedar Bayou, TX 1,000 kMTA (polyethylene) at Old Ocean, TX Planned startup mid-2017 1 B estimated EBITDA Healthy pipeline of self-funded growth opportunities…
  15. May 2016 Investor Update – Phillips 66 – slide 15
    Refining 16
  16. May 2016 Investor Update – Phillips 66 – slide 16
    Strong Refining Free Cash Flow FCF (B) Averaged 2 B free cash flow over the last three years 2.4 2.0 1.6 2013 2014 2015 Increased demand for refined products Global Realized Margin (/bbl) Expansive footprint provides…
  17. May 2016 Investor Update – Phillips 66 – slide 17
    Enhancing Refining Returns Adjusted ROCE (%) Investing to improve returns Quick payout, low cost projects 19 Wood River projects 12 12 Dilbit capacity increase, ULSD expansion, FCC modernization 2013 2014 2015 200 MM capex, 100 MM…
  18. May 2016 Investor Update – Phillips 66 – slide 18
    Marketing & Specialties 19
  19. May 2016 Investor Update – Phillips 66 – slide 19
    Stable Marketing & Specialties Earnings FCF (B) Increased U.S. branded and unbranded gasoline sales Upgraded 300 U.S. branded sites 1.0 0.9 1.0 Increased U.K. inland gasoline placement by 11% 2013 2014 2015 Adjusted ROCE (%)…
  20. May 2016 Investor Update – Phillips 66 – slide 20
    Financial Strength Available Cash Strong balance sheet (B) BBB+ / A3 credit rating 7.2 23% net debt / cap Ample liquidity 5.1 5.0 1.7 B cash 5 B revolving credit facility 5.8 5.0 Disciplined capital allocation 4.4 60%…
  21. May 2016 Investor Update – Phillips 66 – slide 21
    Capital Allocation Funding reinvestment 2014 2016E Cash from operations PSXP proceeds Returning capital to shareholders Dividend growth Distributions Reinvestment Ongoing share repurchases See appendix for footnotes. 22
  22. May 2016 Investor Update – Phillips 66 – slide 22
    Capital Spending Consolidated Capital Program (B) (B) 7.7 5.8 5.6 5.3 3.8 3.9 3.5 1.8 2013 2014 2015 2016E 2013 2014 2015 2016E Refining M&S Consolidated WRB DCP CPChem PSXP Midstream Investment in DCP Corporate See…
  23. May 2016 Investor Update – Phillips 66 – slide 23
    Distributions Annual Dividend (/sh) Double-digit dividend growth 33% dividend CAGR since spin 2.18 2.45 1.89 1.33 Ongoing share repurchase program 2013 2014 2015 2016E 115 MM shares repurchased and exchanged Cumulative…
  24. May 2016 Investor Update – Phillips 66 – slide 24
    Phillips 66 Partners Ownership Structure (NYSE: PSX) 100% ownership interest PSXP Public Phillips 66 Partners GP LLC Unitholders 61% limited partner (PSXP General Partner) interest General Partner Units IDRs 37% limited…
  25. May 2016 Investor Update – Phillips 66 – slide 25
    Distribution Growth Distribution / LP Unit (cents) 45.80 48.10 40.00 42.80 34.00 37.00 30.17 31.68 27.43 21.25 22.48 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2013 2013 2014 2014 2014 2014 2015 2015 2015 2015 2016 Coverage Ratio…
  26. May 2016 Investor Update – Phillips 66 – slide 26
    Financial Performance Adjusted EBITDA (MM) 87.0 73.3 73.8 56.9 48.9 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 Distributable Cash Flow (MM) 74.0 64.5 64.1 47.8 41.9 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 Adjusted EBITDA…
  27. May 2016 Investor Update – Phillips 66 – slide 27
    Phillips 66 Partners Recent Dropdowns Recently acquired assets from Phillips 66 Sweeny Fractionator 100 MBD NGL fractionator Clemens NGL Caverns 7-8 MMBbl NGL storage facility Standish Pipeline Refined products pipeline 1Q 2016 236…
  28. May 2016 Investor Update – Phillips 66 – slide 28
    314 MM Announced 2016 Organic Growth Plan Bayou Bridge Pipeline Transports crude from Nederland, TX to Lake Charles, LA, and eventually to St. James, LA Increases crude supply options for LA refineries Nederland to Lake Charles leg…
  29. May 2016 Investor Update – Phillips 66 – slide 29
    Highly Integrated and Diversified Asset Portfolio 34
  30. May 2016 Investor Update – Phillips 66 – slide 30
    Fee-based, Long-term Contracts Provide Stability Maximum Term with Asset Initial Term (years) Options (years) Clifton Ridge to Lake Charles 10 20 Sweeny to Pasadena 10 20 Hartford Connector 23 23 Gold Line 10 15 Remaining…
  31. May 2016 Investor Update – Phillips 66 – slide 31
    Debt Profile Debt Maturity Profile 1.3 B Total Debt as of March 31, 2016 (B) 5-Year 300 MM notes, 2.646% coupon 10-Year 500 MM notes, 3.605% coupon 30-Year 300 MM notes, 4.680% coupon 0.2 5-Year 212 MM sponsor loan, 3.0% 0.5…
  32. May 2016 Investor Update – Phillips 66 – slide 32
    Financial Flexibility Investment-grade credit rating Financial targets: 30% distribution CAGR 2013-2018 3.5x debt / EBITDA 1.1x annual coverage ratio Support Phillips 66 Midstream growth 37
  33. May 2016 Investor Update – Phillips 66 – slide 33
    Total Return Since IPO PSXP 146% Closed 340 MM Closed 70 MM 300% Alerian MLP Index -24% acquisition - acquisition Closed 775 MM 250% acquisition Closed 700 MM acquisition - 200% 150% 100% Closed 1.1 B Closed 236 MM IPO…
  34. May 2016 Investor Update – Phillips 66 – slide 34
    Midcontinent Integrated Growth Midstream Palermo rail terminal/Sacagawea pipeline (PSXP) DAPL/ETCOP Refining, Marketing & Specialties Ponca City Yield improvement project Tight oil processing flexibility 100% lease crude…
  35. May 2016 Investor Update – Phillips 66 – slide 35
    Western Gulf Creating a World-Class Energy Complex Midstream Sweeny Fractionator One (PSXP) Freeport LPG export terminal Eagle Ford crude pipeline Sweeny Fractionator Two Refining, Marketing & Specialties Sweeny Strategic…
  36. May 2016 Investor Update – Phillips 66 – slide 36
    Eastern Gulf Refining Logistics and Midstream Growth Midstream Beaumont terminal expansion: +9 MMBbls Bayou Bridge pipeline Alliance clean products dock Refining, Marketing & Specialties Lake Charles Increase feedstock…
  37. May 2016 Investor Update – Phillips 66 – slide 37
    West Coast Enhancing Returns Midstream Los Angeles waterborne crude tank Santa Maria rail rack Refining, Marketing & Specialties San Francisco Yield improvements Los Angeles FCC energy reduction Marketing & Specialties Grow…
  38. May 2016 Investor Update – Phillips 66 – slide 38
    Atlantic Basin Enhancing Returns Midstream Bayway LPG loading facility Refining, Marketing & Specialties Bayway FCC reactor modernization Yield improvements Marketing & Specialties Grow JET and COOP brands in Europe…
  39. May 2016 Investor Update – Phillips 66 – slide 39
    Historical Performance Adjusted EBITDA Adjusted CFO Adjusted Earnings (B) (B) (B) 9.7 8.5 7.8 7.4 7.0 5.9 5.4 5.3 5.1 4.6 4.5 4.0 4.2 3.5 3.6 3.8 2.2 2.2 1.7 0.5 0.5 2009 '10 '11 '12 '13 '14 '15 2009 '10 '11 '12 '13…
  40. May 2016 Investor Update – Phillips 66 – slide 40
    Free Cash Flow 2013 2015 Average Midstream (B) Chemicals (B) PSXP 0.3 0.2 Contributions 0.7 1.4 1.1 0.9 1.0 Adjusted CFO & PSXP Sustaining Capex Available Cash Flow CFO Sustaining Capex FCF Contributions Refining (B)…
  41. May 2016 Investor Update – Phillips 66 – slide 41
    2015 Adjusted ROCE 40% M&S 30% 35% Refining Chemicals P66 Total 20% 19% 14% 10% 19% Midstream 5% Corporate 0% -8% -10% 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 Average Capital Employed (B) 48
  42. May 2016 Investor Update – Phillips 66 – slide 42
    Capital Structure Consolidated PSX Excluding PSXP 27% 28% 25% 28% 20- 30% 21% 22% 23.9 23.1 22.4 22.0 22.0 21.6 8.6 8.9 8.6 7.8 6.1 5.4 5.2 6.1 5.0 5.2 3.1 3.0 2013 2014 2015 2013 2014 2015 Equity B Debt B Cash &…
  43. May 2016 Investor Update – Phillips 66 – slide 43
    Debt and Liquidity Debt Maturity Profile Liquidity (B) (B) 5.0 6.7 5.0 4.0 1.5 2.0 1.7 2016 2017 2018 2019 2020-30 2031-50 Cash Undrawn Revolving Total Credit Facility Committed Liquidity Bonds Revolving Credit Facility…
  44. May 2016 Investor Update – Phillips 66 – slide 44
    2016 Sensitivities Sensitivities shown above are independent and are only valid within a limited price range. 51
  45. May 2016 Investor Update – Phillips 66 – slide 45
    Phillips 66 Capital Program Millions of Dollars 2016 Budget Sustaining Growth Total Consolidated Capital Expenditures and Investments Midstream(1) 227 2,119 2,346 Chemicals - - - Refining 833 384 1,217 Marketing and Specialties 57…

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