Creating Superior Value Go for Extraordinary 2018 Wolfe Research 4th Annual Refiners Conference January 3, 2018
Andeavors Competitive Position Leading integrated marketing, logistics and ANDV Refinery Terminalling Crude Basin Rail refining company in our strategic footprint Anacortes Andeavor Trucking Pipelines Marine Kenai Well diversified…
Environmental Health and Safety Driving to Destination Zero OSHA Recordable Incident Rate Refining A a .55 .27 .27 .19 .22 Reducing our Environmental Impact 2010-2014 2015 2016 2017 YTD 2016 AFPM Average Top Quartile Air…
Andeavors Journey to 2020 Advance a fully integrated fuel and convenience store marketing Marketing and wholesale business Expand customer-focused, full-service, diversified midstream Logistics business, strategically integrated into…
Targeting EBITDA Increase of 45% EBITDA* Composition ( in billions) EBITDA* Growth ( in millions) 4.5 2018E 2020E Western Refining Synergies 320 3.1 Strategic Refining Capital Projects 175 Marketing Marketing 300 Logistics…
Growth and Financial Discipline Deliver Superior Returns Value Created for Shareholders Leading Adjusted CFO* CAGR 2013 2017E 2013 3Q2017 (%) (%) 19 206 11 186 1 -3 -17 128 113 ANDV Peer 1 Peer 2 Peer 3 Peer 4 Driving ROIC…
Potential Market Impact of 2020 Regulations LA CARB Diesel vs. Singapore HSFO Cold Lake vs. WTI ( per barrel) ( per barrel) 2016-2019E 2020E Average Average 51 (12) 25 (24) 2016-2019E 2020E Average Average Singapore HSFO vs.…
Marketings Journey to 2020 Retail/Branded Volumes Increase to over 50% of total volumes Stores Expand to over 4,000 Convenience Margin* Improve contribution to 450 million Achieve plan with 150 million in average annual Capital…
Drive Branded Fuel Sales Fuel Volume (Million of Gallons) YTD 3Q17 Target increasing Retail/Branded 12,400 Fuel Margin* 11,900 volumes from 47% of total volumes in 2017 to 52% in 2020 8,300 Retail / 20.0 CPG Branded -…
Expand Retail Network and Increase Convenience Sales Store Count 4,000+ Target growing total store count 3,200+ to 4,000+ 2,270 Use high recognition brands in targeted geographies 2014 2017E 2020E Build new-to-industry retail…
Expanding Presence in Mexico Baja & Sonora Fuel Supply Chihuahua, Sinaloa and Baja Sur (MBD) Fuel Supply (MBD) 30+ 5 20 Los Angeles 2017E 2020E 2017E 2022 Potential Baja & Sonora Store Count Chihuahua, Sinaloa and Baja Sur…
Logistics Journey to 2020 Growth Execute 1 billion of annual high-return growth Investments investments Permian Grow EBITDA* to 200+ million Bakken Deliver 80+ million of annual EBITDA* from projects Third-Party Increase…
Significant Organic Project Portfolio Natural Gas & NGL Optimization Anacortes 140 150 (Capex in millions) Bakken Gathering Projects 60 90 Dickinson Mandan St. Paul Park Martinez Salt Lake City LA Refinery Interconnect…
Robust Potential Dropdown Portfolio Description Estimated EBITDA* ( in millions) Refinery tankage, rail loading and unloading, Refinery truck racks, refinery gate pipelines and 115+ Infrastructure petroleum coke handling Logistics…
Refinings Journey to 2020 Major Capital Projects Deliver over 175 million in annual EBITDA* Capture 200 million of additional Refining and Synergies Commercial synergies by 2020 Operational Improve productivity, efficiency and…
Major Capital Projects Potential Mixed Xylenes Project Approved Strategic Capital Projects ( in millions) 300 Anacortes Potential Renewable Diesel Project EP Energy JV Anacortes Isomerization Isomerization 110 Potential Vancouver…
Delivering Western Refining Synergies Expected Refining & Commercial Synergies Refining & Commercial Operational ( in millions) Synergies: Cost reductions 220 Yield improvement Throughput increases 155 Capital efficiencies Energy…
Driving Reliability and High Utilization Process Unit Availability (%) Utilize Operations Excellence Management System to: 96 96 95 96 96 96 Build upon mechanical integrity programs and capability development Continue process unit…
Maximizing Availability through Focused Investment Program Turnaround Spend Refining Sustaining Capital Spend ( in millions) ( in millions) 575 560 540 525 500 450 450 350 2017E 2018E 2019E 2020E 2017E 2018E 2019E 2020E…
Renewable Fuels Opportunities Dickinson Renewable Diesel Renewable diesel facility to supply product to Novel catalytic based technology to produce high California octane renewable gasoline Renewable feedstock made from municipal…
Deliver Western Refining Synergies Western Refining Annual Annual run-rate synergies of 110 ( in millions) Synergies million as of 3Q17 Marketing 50 2017E in-year synergies of 80 Logistics 20 million Refining 200 One-time cash…
Financial Principles & Capital Allocation Key Metrics Ample Maintain strong liquidity position to allow for 3 4 billion available liquidity at ANDV Liquidity execution of growth plans 1 2 billion available liquidity at ANDX…
2018 2020 Capital Expenditure Plan ( in millions) Andeavor 2017E 2018E 2019E 2020E Andeavor Logistics 2017E 2018E 2019E 2020E Maintenance Capital 535 410 380 420 Net Maintenance Capital 55 75 80 90 Regulatory Capital 120 180 125 130…
2018 2020 Plan Delivers Significant Cash Flow 2018E-2020E ANDV Cumulative ANDV Cash Flow Generated ( in billions) Cash Flow Deployment Complete Additional Share Cash 12.7 Repurchase Generated Plan & Grow Cash from Additional…
ANDX Capital Investment and Funding Plan ( in billions) Andeavor Logistics Investment Plan 1.1 1.1 1.1 ( in billions, unless noted) Maintenance Dropdowns Annual Growth Capital 1.0+ Organic Growth & Acquisitions Annual Maintenance…
Andeavor
Appendix Andeavor 29
Creating Competitive Advantage at the Los Angeles Refinery Completes full integration of Los Angeles Refinery Provides 30 40 MBD of gasoline and distillate yield flexibility Drives ability to upgrade feedstocks within combined…
Non-GAAP Financial Measures Our management uses certain non-GAAP operational measures to analyze operating segment performance and non-GAAP financial measures to evaluate past performance and prospects for the future to supplement our…
Non-GAAP Reconciliations Andeavor Amounts may not recalculate due to rounding of dollar and volume information. 32
Non-GAAP Reconciliations Andeavor Amounts may not recalculate due to rounding of dollar and volume information. 33
Non-GAAP Reconciliations Andeavor Amounts may not recalculate due to rounding of dollar and volume information. 34
Non-GAAP Reconciliations (in millions) Unaudited Projected Logistics Segment EBITDA Terminalling and Logistics 2017E Projected WNRL and Synergies Transportation Permian and Bakken 2018E Projected Additional 2020E Projected 2018E-2020E…
Non-GAAP Reconciliations Andeavor Amounts may not recalculate due to rounding of dollar and volume information. 36
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