Skip to main content Third Quarter 2014 – Phillips 66 Investor Presentation | Shale Experts
Loading...
Pm

Third Quarter 2014 – Phillips 66

Phillips 66 · Nov 19, 2014 · 36 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. Third Quarter 2014 – Phillips 66 – slide 1
    Investing Building Growing Investor Update Third Quarter 2014
  2. Third Quarter 2014 – Phillips 66 – slide 2
    Corporate Strategy Operating excellence Enterprise Value Growth Refining Returns Midstream Distributions M&S Chemicals High-performing organization 2013 2018 3
  3. Third Quarter 2014 – Phillips 66 – slide 3
    Operating Excellence Total Recordable Rates Refining Environmental Metrics Incidents per 200,000 Hours Worked Industry Average 09 10 11 12 13 Phillips 66 CPChem DCP 2007 2009 2011 2013 See appendix for footnotes. 4
  4. Third Quarter 2014 – Phillips 66 – slide 4
    Macro Environment U.S. Production - Midstream Growth U.S. Crude Oil Production U.S. NGL Production U.S. Dry Natural Gas MMBD MMBD Production BCFD 11 Upper Range of Production 5 80 Lower Range of Production 4 70 9 3 60 7 2…
  5. Third Quarter 2014 – Phillips 66 – slide 5
    Energy Landscape North American oil and gas production growth Energy infrastructure expansion Global demand growth Regulatory environment Major project execution 6
  6. Third Quarter 2014 – Phillips 66 – slide 6
    Capital Program 2014E Total Capital Program 5.8 B 3.9 B 2014E Phillips 66 capital 2.7 B 2014E initial Phillips 66 capital DCP 1.2 B increase for Phillips 66 capital 0.9 B acquisitions: CPChem Beaumont Terminal Spectrum…
  7. Third Quarter 2014 – Phillips 66 – slide 7
    Midstream NGL Midstream and Refining Logistics EBITDA B Pipelines and fractionation Export terminals Transportation Crude and product pipelines 2.3 Terminals and storage Rail, marine and trucks DCP Midstream 0.5 Gathering…
  8. Third Quarter 2014 – Phillips 66 – slide 8
    NGL Gulf Coast Sweeny Fractionator One 100 MBD Storage caverns 8 MMBbls LPG export terminal 150 MBD Mont Belvieu pipeline 200 MBD Sweeny Fractionator Two 110 MBD 9
  9. Third Quarter 2014 – Phillips 66 – slide 9
    Transportation Midcontinent 3,600+ miles of pipeline Over 20 crude and products terminals Crude gathering infrastructure Increased ownership in Explorer Pipeline 10
  10. Third Quarter 2014 – Phillips 66 – slide 10
    Transportation West and East Coast 11
  11. Third Quarter 2014 – Phillips 66 – slide 11
    Transportation Gulf Coast Beaumont Terminal optionality Integration with Refining Access to Eagle Ford and Permian Basin Increase export capability 12
  12. Third Quarter 2014 – Phillips 66 – slide 12
    Phillips 66 Partners Enterprise Value B Increases PSX value 5.4 PSX sponsorship provides: Public Strong portfolio of existing assets PSX 0.9 Ownership Pipeline of organic growth PSX Multiple PSXP LP Multiple Low cost of…
  13. Third Quarter 2014 – Phillips 66 – slide 13
    DCP Midstream 2013 NGL Processing Capex Production Capacity 2014E-2016E MBD BCFD B Permian 130 1.4 1.0 - 1.5 South 130 3.2 .50 - 1.0 North 40 0.9 1.0 - 1.5 Midcon 120 2.0 .75 - 1.0 Logistics N/A N/A .75 - 1.0 EBITDA NGL…
  14. Third Quarter 2014 – Phillips 66 – slide 14
    Chemicals CPChem Portfolio 50/50 JV with Chevron 11 joint ventures 2 research facilities Sales into 139 countries Total Net Capacity 2013 Income Before Taxes from Continuing 2013 Operations SA&S SA&S Intl O&P O&P…
  15. Third Quarter 2014 – Phillips 66 – slide 15
    Chemicals CPChem Growth Plans 2013 2014 2015 2016 2017 1-Hexene Unit 250 kMTA Self-funded capital program Sweeny Ethylene 90 kMTA 6.5 7 B growth spending USGC Petrochemicals 1,500 kMTA (ethylene) 1,000 kMTA (polyethylene) 36%…
  16. Third Quarter 2014 – Phillips 66 – slide 16
    Chemicals CPChem Adjusted EBITDA Leading returns B Market leader 3.4 3.4 3.2 Largest global HDPE producer 2nd largest global alpha olefins producer 4th largest N.A. ethylene producer Estimated new project EBITDA 2012 2013…
  17. Third Quarter 2014 – Phillips 66 – slide 17
    Refining 15 refineries worldwide 2.2 MMBD crude capacity ROCE Improvement Constant Crack Spreads 14% Ireland 10% United Kingdom 5-Yr Avg Adv Yields & Costs 2018E Malaysia Germany Crude Exports See appendix for…
  18. Third Quarter 2014 – Phillips 66 – slide 18
    Marketing and Specialties Adjusted EBITDA U.S. Marketing 2009 2014 Q3 YTD Ensures Refining pull-through International Marketing Retail in Europe U.S. Intl Marketing Marketing Specialties Finished lubricants Specialties Base…
  19. Third Quarter 2014 – Phillips 66 – slide 19
    Disciplined Capital Allocation 2014E 2016E Investment Sustain operations Fund capacity growth Generate competitive returns Distributions Distributions Reinvestment Double-digit dividend growth rate Repurchase shares Capital…
  20. Third Quarter 2014 – Phillips 66 – slide 20
    Capacity to Execute Additional Sources: Share Repurchases Cash on hand Range of mid-cycle CFO Growth Debt capacity Capital MLP drop-downs Sustaining Capital Asset sales Dividends New project cash flows See appendix for…
  21. Third Quarter 2014 – Phillips 66 – slide 21
    Returns 2014 Adjusted ROCE ROCE Chemicals 30% M&S 29% 20% 27% P66 Total Midstream 14% Refining 10% 12% 14% Corporate 0% -6% -10% 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 Average Capital Employed (B) See appendix for…
  22. Third Quarter 2014 – Phillips 66 – slide 22
    Distributions Phillips 66 Common Stock Dividend Growth MM shares /share 11.00 7.75 (54) (17) 6.25 5.00 50 625 554 20 April Share PSPI September Q3 2012 Q4 2012 Q1 2013 Q4 2013 Q2 2014 Q2 2014 2012 Repurchases Exchange…
  23. Third Quarter 2014 – Phillips 66 – slide 23
    Delivering on Commitments Growth 4.2 B 2014E growth capital program Beaumont Terminal and Spectrum acquisitions Grow Phillips 66 Partners Returns 95% advantaged crude slate in 3Q 2014 Record export volumes Distributions 28%…
  24. Third Quarter 2014 – Phillips 66 – slide 24
    Compelling Investment 180% PSX +151% Shareholder returns 140% Unique portfolio 100% EBITDA growth S&P 100 +46% 60% Disciplined capital allocation 20% Multiple expansion May-12 Oct-12 Mar-13 Aug-13 Jan-14 Jun-14 Oct-14 -20%…
  25. Third Quarter 2014 – Phillips 66 – slide 25
    Appendix Institutional Investors Contact Rosy Zuklic Manager, Investor Relations Rosy.Zuklicp66.com 832-765-2297
  26. Third Quarter 2014 – Phillips 66 – slide 26
    2014 Sensitivities Net Income MM Midstream 1/Gal Increase in NGL price 4 10/MMBtu Increase in Natural Gas price 2 1/BBL Increase in WTI price 2 Chemicals 1/Lb Increase in Olefins Chain Margin (Ethylene, Polyethylene, NAO) 35…
  27. Third Quarter 2014 – Phillips 66 – slide 27
    Capital Program Millions of Dollars 2014 Budget Growth Sustaining Total Capital Expenditures and Investments* Consolidated Midstream Transportation 806 150 956 NGL 1,262 5 1,267 2,068 155 2,223 Chemicals - - - Refining 264 751 1,015…
  28. Third Quarter 2014 – Phillips 66 – slide 28
    Non-GAAP Reconciliations Millions of Dollars Year Ended December 31 2013 Transportation and NGL Net income attributable to Phillips 66 259 Plus: Net income attributable to noncontrolling interests 17 Income taxes 142 Depreciation and…
  29. Third Quarter 2014 – Phillips 66 – slide 29
    Non-GAAP Reconciliations Millions of Dollars First Year Sweeny Fractionator One and Two, and Freeport Export Facility Estimated net income 370 Plus: Estimated income taxes 230 Estimated net interest expense 10 Estimated depreciation…
  30. Third Quarter 2014 – Phillips 66 – slide 30
    Non-GAAP Reconciliations Millions of Dollars Years Ended December 31 2014E Phillips 66 Partners LP Net income 119.0 - 124.0 Plus: Depreciation 15.0 Net interest expense 5.4 Amortization of deferred rentals 0.4 Provision for income…
  31. Third Quarter 2014 – Phillips 66 – slide 31
    Non-GAAP Reconciliations Millions of Dollars Years Ended December 31 2012 2014E 2016E 100% DCP Midstream Net income attributable to members' interest 486 510 555 Plus: Net income attributable to noncontrolling interests 97 135 255…
  32. Third Quarter 2014 – Phillips 66 – slide 32
    Non-GAAP Reconciliations Millions of Dollars 2012 2013 3Q YTD 2014 100% CPChem Net income 2,403 2,743 2,492 Plus: Income taxes 67 71 71 Net interest expense 8 (3) (2) Depreciation and amortization 356 278 212 EBITDA 2,834 3,089…
  33. Third Quarter 2014 – Phillips 66 – slide 33
    Non-GAAP Reconciliations Millions of Dollars Low High 100% CPChem Incremental Project Earnings Projections Estimated incremental net income 1,000 1,313 Plus: Estimated income taxes 20 27 Estimated net interest expense - - Estimated…
  34. Third Quarter 2014 – Phillips 66 – slide 34
    Non-GAAP Reconciliations Millions of Dollars Average 2009 - 2013 Refining - ROCE Numerator Average 2009 - 2013 net income 998 After-tax interest expense - GAAP ROCE earnings 998 Special Items 452 Adjusted ROCE earnings 1,450…
  35. Third Quarter 2014 – Phillips 66 – slide 35
    Non-GAAP Reconciliations Millions of Dollars January 1, 2009 - September 30, 2014 U.S. International Marketing Marketing Specialties Net income 1,518 1,226 1,249 Plus: Provision for income taxes 954 590 750 Net interest expense…
  36. Third Quarter 2014 – Phillips 66 – slide 36
    Non-GAAP Reconciliations Millions of Dollars Nine Months Ended September 30, 2014 Marketing & Phillips 66 Midstream Chemicals Refining Specialties Corporate ROCE Numerator Net Income 3,639 435 870 1,254 667 (293) After-tax interest…

From the store

Browse maps, data & reports in the Shale Experts store