Skip to main content February 2018 Investor Presentation – Phillips 66 | Shale Experts
Loading...
Pm

February 2018 Investor Presentation – Phillips 66

Phillips 66 · Feb 15, 2018 · 56 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. February 2018 Investor Presentation – Phillips 66 – slide 1
    Investor Update February 2018 NYSE: PSX www.phillips66.com Lake Charles Refinery
  2. February 2018 Investor Presentation – Phillips 66 – slide 2
    Diversified Downstream Company Marketing & Midstream Chemicals Refining Specialties Integrated Midstream 50% Interest in CPChem Diversified Refining Portfolio Stable, High-return Network Businesses Location Advantaged Investing in…
  3. February 2018 Investor Presentation – Phillips 66 – slide 3
    Executing Strategy Leading Operating Excellence Growth CPChem USGC Petrochemicals Project Phillips 66 Partners Bakken Pipeline Beaumont Terminal Sweeny Hub Returns Refinery yield and feedstock flexibility projects U.S. marketing…
  4. February 2018 Investor Presentation – Phillips 66 – slide 4
    Operating Excellence Total Recordable Rates Refining Environmental Metrics (Incidents per 200,000 Hours Worked) (No. of events) Industry Average 13 14 15 16 17 317 302 279 264 240 Phillips 66 CPChem DCP Midstream 2013 2014 2015…
  5. February 2018 Investor Presentation – Phillips 66 – slide 5
    Environmental, Social, Governance Extensive ESG engagement Industry Safety Metrics (Incidents per 200,000 Hours Worked) 6 Board engaged in setting company ESG strategy 4 2 Record low reportable environmental events 0 Agricul.,…
  6. February 2018 Investor Presentation – Phillips 66 – slide 6
    U.S. Crude Oil and Gas Plant NGL Production Source: I.H.S., April 2017 6
  7. February 2018 Investor Presentation – Phillips 66 – slide 7
    Midstream Macro Environment U.S. Crude Oil Export Volume (MMBD) U.S. Clean Product Exports (MMBD) 1.0 2.5 2.0 1.5 0.5 1.0 0.5 0.0 0.0 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017 U.S. LPG Export Volume (MMBD)…
  8. February 2018 Investor Presentation – Phillips 66 – slide 8
    Chemicals Macro Environment U.S. Ethane Demand Global PE Capacity and Demand (MMBD) (MMTA) 2.5 Exports 150 Capacity Base Ethane Petchem & Price-sensitive Demand 2.0 Flexible Feedstock 100 1.5 1.0 50 0.5 0.0 0 2012 2013…
  9. February 2018 Investor Presentation – Phillips 66 – slide 9
    Refining Macro Environment Global Clean Product Demand (MMBD) Global clean product demand 70 Diesel expected to grow Jet Gasoline 60 50 Global utilization rates expected in low-80s, with U.S. refining in low-90s 40 30 Strong…
  10. February 2018 Investor Presentation – Phillips 66 – slide 10
    Integrated Midstream Network 10
  11. February 2018 Investor Presentation – Phillips 66 – slide 11
    Midstream 2018E Annual Year-End Run-Rate Adjusted EBITDA (B) Platform for growth 1.8 2.0 Focus on NGL value chain Expand crude and products 0.6 PSX export capability PSX PSXP 2018E year-end run-rate PSXP PSXP 1.0 1.1 adjusted…
  12. February 2018 Investor Presentation – Phillips 66 – slide 12
    Phillips 66 Partners Distribution Growth (cents/unit) Funding Midstream growth Organic growth opportunities Sand Hills Pipeline expansions (TX) Bayou Bridge Pipeline extension (LA) Lake Charles Isomerization Unit (LA) 67.8 64.6…
  13. February 2018 Investor Presentation – Phillips 66 – slide 13
    DCP Midstream DJ Basin Well positioned in low-cost supply basins 0.9 Bcf/d processing capacity Strong growth projects around existing footprint Sand Hills NGL Pipeline expansions to 365 MBD in 1Q 2018, 450 MBD in 2H 2018 Permian…
  14. February 2018 Investor Presentation – Phillips 66 – slide 14
    Feedstock Advantaged Chemicals Portfolio Worldwide U.S. Gulf Net Ethylene Coast Capacity: 4,810 kMTA U.S. Net Ethylene Capacity: 3,685 kMTA Middle East Net Ethylene Saudi Qatar Arabia Capacity: 1,125 kMTA 14
  15. February 2018 Investor Presentation – Phillips 66 – slide 15
    Chemicals Outlook 2018E Average Ethylene Production Cost Curve Middle East ethane and North (/Ton) America NGLs remain positioned at Asia Coal the low end of the cost curve 1,000 M.E. Naphtha Ethylene demand growth outpacing W.…
  16. February 2018 Investor Presentation – Phillips 66 – slide 16
    CPChem USGC Petrochemicals Project 1,000 kMTA polyethylene at Old Ocean, TX Started operations 3Q 2017 1,500 kMTA ethylene at Cedar Bayou, TX Mechanical completion 4Q 2017 Commissioning 1Q 2018 Long-term mid-cycle EBITDA 1.2-1.4 B…
  17. February 2018 Investor Presentation – Phillips 66 – slide 17
    Enhancing Returns in Refining and Marketing 17
  18. February 2018 Investor Presentation – Phillips 66 – slide 18
    Refining Improving returns PSX Global Clean Product Yield Billings heavy crude project (2Q 2017) Ponca City yield flexibility (4Q 2017) 85.5% 84.6% 84.1% 84.4% 84.6% Wood River FCC modernization (2Q 2018) 2013 2014 2015 2016…
  19. February 2018 Investor Presentation – Phillips 66 – slide 19
    Marketing and Specialties Stable, high-return businesses Marketing Enhancing U.S. fuels brands 3% volume uplift at reimaged sites Adding 25-30 European sites per year Expanding brand licensing Providing ratable refinery off-take…
  20. February 2018 Investor Presentation – Phillips 66 – slide 20
    Capital Structure Equity and Debt Investment-grade credit ratings 27.4 PSX BBB+ / A3 22.4 23.9 23.7 30% 22.0 27% 27% PSXP BBB / Baa3 28% 22% 26% 25% 22% 21% 10.1 10.1 Nearly 9 B of total liquidity 8.6 8.9 6.1 3.5x…
  21. February 2018 Investor Presentation – Phillips 66 – slide 21
    Capital Allocation Maintain financial strength, strong 2015 2017 investment-grade credit rating Fund sustaining capital expenditures Distributions Pay a growing, secure and competitive Reinvestment dividend 60% reinvestment and…
  22. February 2018 Investor Presentation – Phillips 66 – slide 22
    Capital Expenditures Consolidated Capital Expenditures (B) 2018E Consolidated 2.3 B 5.8 Phillips 66 2018E 1.7 B 3.8 0.8 B Growth 2.8 0.9 B Sustaining 2.3 1.8 1.8 Phillips 66 Partners 2018E 0.6 B 2013 2014 2015 2016 2017…
  23. February 2018 Investor Presentation – Phillips 66 – slide 23
    Distributions Important source of shareholder value Annual Dividend (/share) Growing, secure, and competitive 2.73 dividend 1.89 2.18 2.45 1.33 30% CAGR with seven increases since May 2012 2013 2014 2015 2016 2017 Cumulative…
  24. February 2018 Investor Presentation – Phillips 66 – slide 24
    Creating Value Mid-Cycle Incremental Run-Rate Adjusted EBITDA 1.5 B long-term expected (B) EBITDA growth from projects coming online 2017-2018 1.5 Shifted from heavy-investment period to increasing net cash generation Continued…
  25. February 2018 Investor Presentation – Phillips 66 – slide 25
    Delivering Shareholder Returns Total Shareholder Return Integrated portfolio PSX +262% 300% Disciplined capital allocation Peers +178% 260% S&P 100 +123% 220% Returns focused 180% 140% Value-added growth 100% 60% Strong balance…
  26. February 2018 Investor Presentation – Phillips 66 – slide 26
    Investor Update February 2018 NYSE: PSXP www.phillips66partners.com
  27. February 2018 Investor Presentation – Phillips 66 – slide 27
    Phillips 66 Partners Ownership Structure (NYSE: PSX) 100% ownership interest PSXP Public Common Phillips 66 Partners GP LLC Unitholders 55% limited partner (PSXP General Partner) interest General Partner Units IDRs 43%…
  28. February 2018 Investor Presentation – Phillips 66 – slide 28
    Phillips 66 Partners Strong alignment with Phillips 66 Highly integrated assets Stable and predictable cash flows Strong growth potential Financial flexibility Sweeny Fractionator, Sweeny, TX Pecan Grove Marine Dock 28
  29. February 2018 Investor Presentation – Phillips 66 – slide 29
    Phillips 66 Partners Pecan Grove Marine Dock 29
  30. February 2018 Investor Presentation – Phillips 66 – slide 30
    Distribution Growth Distribution / LP Unit (cents) 64.60 67.80 58.60 61.50 53.10 55.80 48.10 50.50 42.80 45.80 37.00 40.00 30.17 31.68 34.00 27.43 21.25 22.48 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2013…
  31. February 2018 Investor Presentation – Phillips 66 – slide 31
    Financial Growth Adjusted EBITDA (MM) Annual performance highlights since 2014 754 58% growth in Earnings 471 75% growth in Adjusted EBITDA 285 141 65% growth in Distributable Cash Flow 33 2013 2014 2015 2016 2017 Earnings…
  32. February 2018 Investor Presentation – Phillips 66 – slide 32
    Phillips 66 Partners Capital Expenditures PSXP Capital Expenditures (MM) 2018E Capex of 595 MM 510 MM Growth Bayou Bridge Pipeline Sand Hills Pipeline 595 461 Lake Charles Isomerization Unit 352 Sacagewea Gas Pipeline 205 4…
  33. February 2018 Investor Presentation – Phillips 66 – slide 33
    510 MM 2018 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 Louisiana refineries Nederland to Lake Charles leg began…
  34. February 2018 Investor Presentation – Phillips 66 – slide 34
    PSXP Debt Profile 2.9 B Total Debt as of December 31, 2017 Senior Notes Maturity Profile (MM) 2.9 B Senior Notes, weighted average cost of 3.97%: 5-Year 300 MM notes, 2.646% coupon 10-Year 500 MM notes, 3.605% coupon 10-Year 500 MM…
  35. February 2018 Investor Presentation – Phillips 66 – slide 35
    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 35
  36. February 2018 Investor Presentation – Phillips 66 – slide 36
    Total Return Since IPO PSXP +164% 300% Closed 70 MM Closed 1.3 B Alerian MLP Index -15% acquisition acquisition Closed 2.4 B 250% acquisition Closed 775 MM 200% Closed 700 MM acquisition acquisition 150% 100% Closed 340 MM Closed…
  37. February 2018 Investor Presentation – Phillips 66 – slide 37
    Appendix Freeport LPG Export Terminal
  38. February 2018 Investor Presentation – Phillips 66 – slide 38
    Corporate 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…
  39. February 2018 Investor Presentation – Phillips 66 – slide 39
    Value Chain 39
  40. February 2018 Investor Presentation – Phillips 66 – slide 40
    Midcontinent Integrated Growth Midstream Palermo rail terminal/Sacagawea Pipeline (PSXP) Bakken Pipeline (PSXP) Refining, Marketing & Specialties Ponca City Yield improvement projects Tar Stripper Retirement Gas oil hydrotreater…
  41. February 2018 Investor Presentation – Phillips 66 – slide 41
    Western Gulf Creating a World-Class Energy Complex Midstream Sweeny Fractionator (PSXP) Freeport LPG Export Terminal Refining, Marketing & Specialties Sweeny Strategic asset integration FCC optimization Marketing &…
  42. February 2018 Investor Presentation – Phillips 66 – slide 42
    Eastern Gulf Refining Logistics and Midstream Growth Midstream Beaumont Terminal expansion Bayou Bridge Pipeline (PSXP) River Parish NGL System (PSXP) Refining, Marketing & Specialties Lake Charles Increase feedstock advantage…
  43. February 2018 Investor Presentation – Phillips 66 – slide 43
    West Coast Enhancing Returns Refining, Marketing & Specialties San Francisco Yield improvements Reduce Coker Operating Pressure Renewable diesel project Los Angeles Renewable diesel project Marketing & Specialties Grow branded…
  44. February 2018 Investor Presentation – Phillips 66 – slide 44
    Atlantic Basin Enhancing Returns Refining, Marketing & Specialties Bayway FCC modernization Yield improvements Marketing & Specialties Grow JET and COOP brands in Europe Increase unbranded volumes in the U.K. and U.S. Expand…
  45. February 2018 Investor Presentation – Phillips 66 – slide 45
    Adjusted Free Cash Flow 20122017 Average Midstream (B) Chemicals (B) PSXP Contributions 1.0 (0.3) (0.2) 1.7 1.0 0.8 0.9 Adjusted CFO & PSXP Sustaining Capex Available Cash Flow Adjusted CFO Sustaining Capex Adjusted FCF…
  46. February 2018 Investor Presentation – Phillips 66 – slide 46
    20122017 Average Adjusted ROCE 30% M&S Chemicals 27% 15% 20% Refining PSX Total 12% 13% Midstream 7% Corporate 0% (8%) -15% 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 Average Capital Employed (B) 46
  47. February 2018 Investor Presentation – Phillips 66 – slide 47
    Phillips 66 Debt and Liquidity Debt Maturity Profile Liquidity (B) (B) 5.0 7.9 5.0 4.0 2.9 2.0 0.5 0.3 0.3 2019 2020 2021 2022-30 2031-50 Cash Undrawn Revolving Total Bonds Revolving Credit Facility Term Loans Credit…
  48. February 2018 Investor Presentation – Phillips 66 – slide 48
    2018 Sensitivities Sensitivities shown above are independent and are only valid within a limited price range. 48
  49. February 2018 Investor Presentation – Phillips 66 – slide 49
    Phillips 66 Outlook 1Q 2018 Global Olefins & Polyolefins utilization Mid-90% Refining crude utilization Mid-80% Refining turnaround expenses (pre-tax) 230 MM - 260 MM Corporate & other costs (after-tax) 160 MM - 180 MM 2018…
  50. February 2018 Investor Presentation – Phillips 66 – slide 50
    2018 Capital Budget 50
  51. February 2018 Investor Presentation – Phillips 66 – slide 51
    Footnotes 1H 2017 1H 2017 is as of June 30, 2017, or the six-month period ended June 30, 2017, as applicable; except as otherwise noted. 3Q YTD 2017 3Q YTD 2017 is as of September 30, 2017, or the nine-month period ended September 30,…
  52. February 2018 Investor Presentation – Phillips 66 – slide 52
    Non-GAAP Reconciliation (slide 4) Millions of Dollars 2013 2014 2015 2016 2017 Production and operating expenses 4,206 4,435 4,294 4,275 4,699 Selling, general and administrative expenses 1,478 1,663 1,670 1,638 1,695 5,684 6,098…
  53. February 2018 Investor Presentation – Phillips 66 – slide 53
    Non-GAAP Reconciliations (Slide 45) Millions of Dollars Average 2012 - 2017 Marketing & FCF Reconcilition Midstream Chemicals Refining Specialties Cash From Operations GAAP 886 355 2,604 908 Less: Change in Non-Cash Working Cap. (3)…
  54. February 2018 Investor Presentation – Phillips 66 – slide 54
    PSXP Adjusted EBITDA and Distributable Cash Flow Reconciliation to Net Income (Slide 31) Millions of Dollars 2013 2014 2015 2016 2017 Reconciliation to Net Income Attributable to the Partnership Net income attributable to the…
  55. February 2018 Investor Presentation – Phillips 66 – slide 55
    PSXP Adjusted EBITDA and Distributable Cash Flow Reconciliation to Operating Cash Flow (Slide 31) Millions of Dollars 2013 2014 2015 2016 2017 Reconciliation to Net Cash Provided by Operating Activities Net cash provided by operating…
  56. February 2018 Investor Presentation – Phillips 66 – slide 56
    Non-GAAP Reconciliations (Slide 46) Millions of Dollars Average 2012-2017 Phillips 66** Midstream Chemicals Refining M&S Corporate Phillips 66 ROCE Numerator Net Income 3,974 317 836 1,824 873 (12) After-tax interest expense 203 - - -…

From the store

Browse maps, data & reports in the Shale Experts store