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February 2019 Investor Presentation – Phillips 66

Phillips 66 · Feb 8, 2019 · 66 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 2019 Investor Presentation – Phillips 66 – slide 1
    Lake Charles Refinery FEBRUARY 2019 INVESTOR UPDATE 1 phillips66.com NYSE: PSX
  2. February 2019 Investor Presentation – Phillips 66 – slide 2
    DIVERSIFIED DOWNSTREAM COMPANY MIDSTREAM CHEMICALS REFINING MARKETING AND SPECIALTIES Integrated Midstream 50% Interest in CPChem Complex Integrated Stable, High-Return Network Refining System Location Advantaged Businesses…
  3. February 2019 Investor Presentation – Phillips 66 – slide 3
    CORPORATE STRATEGY OPERATING GROWTH RETURNS EXCELLENCE Committed to safety, reliability Reshaping our portfolio by Enhancing returns by and environmental capturing growth maximizing earnings from stewardship while protecting…
  4. February 2019 Investor Presentation – Phillips 66 – slide 4
    DEMONSTRATED STRATEGY EXECUTION; 2017 2018 HIGHLIGHTS OPERATING EXCELLENCE Industry leading safety Top-tier refining utilization GROWTH 1.5+ B adjusted mid-cycle EBITDA from growth projects 31% increase in CPChem ethylene and…
  5. February 2019 Investor Presentation – Phillips 66 – slide 5
    OPERATING EXCELLENCE TOTAL RECORDABLE RATES REFINING TIER 1 PROCESS SAFETY EVENT RATE Incidents per 200,000 Hours Worked Phillips 66 CPChem DCP Midstream 1.15 1.03 0.08 0.08 Industry Average .86 0.02 0.02 0.02 .79 14 15 16…
  6. February 2019 Investor Presentation – Phillips 66 – slide 6
    ENVIRONMENTAL, SOCIAL, GOVERNANCE INDUSTRY SAFETY METRICS Board engaged in setting company ESG strategy Incidents per 200,000 hours worked 6 Independent lead director 4 Extensive ESG engagement 2 Industry leading safety…
  7. February 2019 Investor Presentation – Phillips 66 – slide 7
    E N E R G Y L AN D S C AP E US OIL AND NGL PRODUCTION US OIL, NGL, CLEAN PRODUCT EXPORTS MMBD MMBD 30 10 20 5 10 0 0 12 13 14 15 16 17 18 19 20 21 22 23 12 13 14 15 16 17 18 19 20 21 22 23 Crude NGL Crude NGL Clean…
  8. February 2019 Investor Presentation – Phillips 66 – slide 8
    Beaumont Terminal M I D S T R E AM phillips66.com NYSE: PSX
  9. February 2019 Investor Presentation – Phillips 66 – slide 9
    INTEGRATED MIDSTREAM NETWORK 10 phillips66.com NYSE: PSX
  10. February 2019 Investor Presentation – Phillips 66 – slide 10
    MIDSTREAM PORTFOLIO TRANSPORTATION NGL AND OTHER DCP MIDSTREAM 21,000 miles of U.S. pipeline systems 200,000+ BD fractionation capacity 49 natural gas processing facilities 39 product terminals 200,000 BD LPG export capacity 6.7…
  11. February 2019 Investor Presentation – Phillips 66 – slide 11
    MIDSTREAM Integrated with Refining, Marketing and Chemicals ADJUSTED EBITDA B 1.9 Capital projects delivering EBITDA growth 1.3 1.2 PSXP integral to Midstream strategy 1.0 1.0 Crude and NGL pipelines from key shale basins to…
  12. February 2019 Investor Presentation – Phillips 66 – slide 12
    M I D S T R E AM G R O W T H P R O J E C T S Gray Oak Pipeline Sweeny fractionators Clemens Caverns Beaumont Terminal South Texas Gateway Terminal Bakken Pipeline Sand Hills Pipeline Bayou Bridge Pipeline Lake Charles…
  13. February 2019 Investor Presentation – Phillips 66 – slide 13
    M I D S T R E AM O R G AN I C G R O W T H COMPLETION GROSS CAPITAL OWNERSHIP PSX PROJECT DATE CAPACITY (MM) (%) Beaumont Terminal expansion phase III 4Q 2018 1.3 MMB 40 100 Beaumont Terminal expansion phase IV 1Q 2020 2.2 MMB 80…
  14. February 2019 Investor Presentation – Phillips 66 – slide 14
    S W E E N Y H U B E X P AN S I O N 1.5 B capital expansion 2 x 150 MBD NGL fractionators 6 MM bbls expansion of PSXPs NGL storage capacity Y-grade NGL feedstock supply agreements with firm volume commitments secured LPGs…
  15. February 2019 Investor Presentation – Phillips 66 – slide 15
    PROJECTS UNDER DEVELOPMENT Pipelines in open season Gray Oak Pipeline (PSX) West Texas to Texas Gulf Coast Open season for new capacity beyond 900,000 BD Liberty Pipeline (PSX) Rockies and Bakken production areas to Corpus…
  16. February 2019 Investor Presentation – Phillips 66 – slide 16
    PHILLIPS 66 PARTNERS Premier MLP with strong portfolio of organic growth projects ADJUSTED EBITDA MM Strong alignment with Phillips 66 1,137 Highly integrated assets 754 Stable and predictable cash flows 471 Delivered highest…
  17. February 2019 Investor Presentation – Phillips 66 – slide 17
    D C P M I D S T R E AM Integrated midstream business with competitive DJ Basin 1.0 BCFD footprint and geographic diversity processing capacity One of the largest U.S. gas processors and NGL producers Mid-Continent 1.8 BCFD…
  18. February 2019 Investor Presentation – Phillips 66 – slide 18
    Lake Charles Refinery Cedar Bayou Ethane Cracker C H E M I C AL S phillips66.com NYSE: PSX
  19. February 2019 Investor Presentation – Phillips 66 – slide 19
    FEEDSTOCK ADVANTAGED CHEMICALS PORTFOLIO U.S. Gulf Coast U.S. Worldwide Net Ethylene Net Ethylene Capacity: Capacity: 5,285 kMTA 6,410 kMTA Middle East Saudi Qatar Net Ethylene Arabia Capacity: 1,125 kMTA 20…
  20. February 2019 Investor Presentation – Phillips 66 – slide 20
    CPCHEM PORTFOLIO Olefins and Polyolefins 11,245 kMTA North America capacity 2,510 kMTA Middle East capacity Specialties, Aromatics and Styrenics 2,255 kMTA North America capacity 1,050 kMTA Middle East capacity 16 North…
  21. February 2019 Investor Presentation – Phillips 66 – slide 21
    CHEMICALS CPChem has a leading position in olefins and polyolefins with ADJUSTED EBITDA a feedstock advantaged portfolio B Operating excellence focus Strong free cash flow generation 2.1 1.7 1.6 USGC petrochemical assets…
  22. February 2019 Investor Presentation – Phillips 66 – slide 22
    Bayway Refinery R E F I N I N G AN D M AR K E T I N G phillips66.com NYSE: PSX
  23. February 2019 Investor Presentation – Phillips 66 – slide 23
    ENHANCING RETURNS IN REFINING AND MARKETING Central Corridor 515 MBD West Coast Atlantic 364 MBD Basin/Europe 537 MBD Gulf Coast 24 phillips66.com NYSE: PSX As of January 1, 2019 764 MBD
  24. February 2019 Investor Presentation – Phillips 66 – slide 24
    REFINING AND MARKETING PORTFOLIO Refining 13 refineries in U.S. and Europe In all 5 U.S. PADDs 2,180 MBD crude capacity 35% heavy, 35% medium, 30% light crude Marketing 9,000+ global sites, including 5,600 wholesale outlets…
  25. February 2019 Investor Presentation – Phillips 66 – slide 25
    REFINING Complex, integrated refining system focused on safe and ADJUSTED EBITDA B reliable operations Infrastructure network enables strong market capture; access to advantaged inland crude feedstocks 5.7 Cost and capital…
  26. February 2019 Investor Presentation – Phillips 66 – slide 26
    REFINING PORTFOLIO COMPETITIVENESS Industry leading coking capacity and heavy crude processing DISTILLATE PRODUCTION capability % TOTAL THROUGHPUT Largest purchaser of advantaged Canadian crude oils High distillate yield 38.3%…
  27. February 2019 Investor Presentation – Phillips 66 – slide 27
    RENEWABLE FUELS Project at Humber Refinery to process used cooking oil in the FCC unit 6 MBD; start-up in 2020 Long-term supply and offtake agreement with Ryze Renewables for two renewable diesel production facilities PSX will…
  28. February 2019 Investor Presentation – Phillips 66 – slide 28
    MARKETING AND SPECIALTIES High-return, low capital intensity business; optimize ADJUSTED EBITDA B placement of Refining production 1.4B Average Enhancing US fuels brands; growing and reimage European sites 1.4 1.5 1.6 1.4…
  29. February 2019 Investor Presentation – Phillips 66 – slide 29
    MARKETING: ENHANCING THE BRANDS U.S. Reimaged 2,600 sites since program inception in 2015 and plan to reimage 1,800 sites in 2019 Industry leading technology; 5,000+ sites implementing mobile pay Europe Proven low-cost…
  30. February 2019 Investor Presentation – Phillips 66 – slide 30
    EARNINGS AND CAPITAL STRUCTURE ADJUSTED EBITDA EQUITY AND DEBT B 28% 27% 30% 29% 27% 28% 25% 26% 25% 10.1 22% 7.9 8.6 27.4 27.2 5.9 4.7 23.9 23.7 22.0 14 15 16 17 18 10.1 10.1 11.2 ADJUSTED RETURN ON CAPITAL…
  31. February 2019 Investor Presentation – Phillips 66 – slide 31
    CAPITAL ALLOCATION Disciplined capital allocation SOURCES AND USES OF CASH B Fund sustaining capital to maintain asset integrity 1 1.5 Committed to a secure, competitive and growing dividend 6.5 5.5 2 Investing in growth…
  32. February 2019 Investor Presentation – Phillips 66 – slide 32
    DISTRIBUTIONS ANNUAL DIVIDEND /share Creates shareholder value 2.73 3.10 2.18 2.45 Secure, competitive, and growing dividend 1.89 14% increase in 2Q18 to 0.80 per quarter 14 15 16 17 18 27% CAGR with eight increases…
  33. February 2019 Investor Presentation – Phillips 66 – slide 33
    C AP I T AL E X P E N D I T U R E S 2019E Consolidated - 2.9 B CAPITAL EXPENDITURES AND INVESTMENTS B Phillips 66 2019E - 2.3 B 1.4 B Growth 0.9 B Sustaining 5.8 Phillips 66 Partners 2019E - 0.6 B Major JVs (CPChem, DCP and…
  34. February 2019 Investor Presentation – Phillips 66 – slide 34
    F I N AN C I AL F L E X I B I L I T Y SOURCES AND USES OF CASH B 1 Maintain financial strength, strong investment- 1.5 grade credit rating 6.5 5.5 2 Pay secure, competitive, and growing dividend 1-2 CFO Sust. FCF Dividends…
  35. February 2019 Investor Presentation – Phillips 66 – slide 35
    EXECUTING STRATEGY OPERATING EXCELLENCE Safe and reliable operations TOTAL SHAREHOLDER RETURN Technology driven cost efficiencies 340% GROWTH Pipelines from key shale basins to Gulf Coast PSX +247% 300% Crude export capability…
  36. February 2019 Investor Presentation – Phillips 66 – slide 36
    Lake Charles Refinery FEBRUARY 2019 INVESTOR R E F I N I N G AN D M AR K E T I N G UPDATE phillips66.com NYSE: phillips66partners.com PSX PSXP I NYSE:
  37. February 2019 Investor Presentation – Phillips 66 – slide 37
    P H I L L I P S 6 6 P AR T N E R S O W N E R S H I P S T R U C T U R E 100% ownership interest Phillips 66 Partners GP LLC PSXP Public (PSXP General Partner) 54% limited Common General Partner Units partner interest…
  38. February 2019 Investor Presentation – Phillips 66 – slide 38
    PHILLIPS 66 PARTNERS Premier MLP with strong portfolio of organic growth projects Strong alignment with Phillips 66 Highly integrated assets Maintaining stable and predictable cash flows Delivered highest distribution…
  39. February 2019 Investor Presentation – Phillips 66 – slide 39
    PHILLIPS 66 PARTNERS 40 phillips66.com NYSE: phillips66partners.com PSX PSXP I NYSE:
  40. February 2019 Investor Presentation – Phillips 66 – slide 40
    2018 HIGHLIGHTS Operated safely and reliably ADJUSTED EBITDA (MM) Reached 1.1 B run-rate EBITDA target ahead of schedule 1,137 Achieved 30% LP distribution CAGR goal 754 Focused on organic growth 471 285 Sanctioned Gray Oak…
  41. February 2019 Investor Presentation – Phillips 66 – slide 41
    DISTRIBUTION GROWTH DISTRIBUTION / COMMON LP UNIT (CENTS) 79.2 83.5 71.4 75.2 64.6 67.8 58.6 61.5 53.1 55.8 45.8 48.1 50.5 40.0 42.8 34.0 37.0 27.4 30.2 31.7 22.5 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16…
  42. February 2019 Investor Presentation – Phillips 66 – slide 42
    P S X P O R G AN I C G R O W T H COMPLETION GROSS CAPITAL OWNERSHIP PSXP PROJECT DATE CAPACITY (MM) (%) Sand Hills Pipeline expansion 4Q 2018 68 MBD1 450 33.3 Bayou Bridge Pipeline (segments I and II) 1Q 2019 480 MBD 750 40 Lake…
  43. February 2019 Investor Presentation – Phillips 66 – slide 43
    GRAY OAK PIPELINE Crude oil pipeline from West Texas to Corpus Christi and Sweeny/Freeport markets Expected in service by end of 2019 900 MBD capacity 42.25% PSXP ownership Operated by Phillips 66 44 phillips66.com…
  44. February 2019 Investor Presentation – Phillips 66 – slide 44
    FINANCIAL FLEXIBILITY Investment-grade credit rating BBB (S&P), Baa3 (Moodys) Fund 2019 capital program with cash, debt, and selective use of ATM 3.5x debt / EBITDA long term target 750 MM revolving credit facility 826…
  45. February 2019 Investor Presentation – Phillips 66 – slide 45
    PSXP DEBT PROFILE SENIOR NOTES MATURITY PROFILE B PSXP Revolving Credit Facility PSXP Bonds 0.8 0.6 0.5 0.5 0.5 0.5 0.3 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 SENIOR NOTES MM 3…
  46. February 2019 Investor Presentation – Phillips 66 – slide 46
    TOTAL RETURN SINCE IPO 300% PSXP +162% Closed 1.3 B acquisition Alerian MLP Index (21%) 250% Closed 70 MM acquisition Closed 2.4 B Closed 775 MM acquisition Closed 700 MM acquisition 200% acquisition 150% 100%…
  47. February 2019 Investor Presentation – Phillips 66 – slide 47
    Lake Charles FreeportRefinery Clipper AP P E N D I X phillips66.com NYSE: PSX
  48. February 2019 Investor Presentation – Phillips 66 – slide 48
    2019 SENSITIVITIES Annual EBITDA (MM) Midstream - DCP (net to Phillips 66) 10 /Gal Increase in NGL price 6 10 /MMBtu Increase in Natural Gas price 1 1/BBL Increase in WTI price 1 Chemicals - CPChem (net to Phillips 66) 1 /Lb…
  49. February 2019 Investor Presentation – Phillips 66 – slide 49
    VALUE CHAIN 50 phillips66.com NYSE: PSX
  50. February 2019 Investor Presentation – Phillips 66 – slide 50
    WEST COAST 51 phillips66.com NYSE: PSX
  51. February 2019 Investor Presentation – Phillips 66 – slide 51
    GULF COAST 52 phillips66.com NYSE: PSX
  52. February 2019 Investor Presentation – Phillips 66 – slide 52
    MIDCONTINENT 53 phillips66.com NYSE: PSX
  53. February 2019 Investor Presentation – Phillips 66 – slide 53
    ATLANTIC BASIN 54 phillips66.com NYSE: PSX
  54. February 2019 Investor Presentation – Phillips 66 – slide 54
    C O N S O L I D AT E D D E B T AN D L I Q U I D I T Y SENIOR NOTES MATURITY PROFILE B PSX Senior Notes PSXP Senior Notes PSX Term Loan PSXP Revolving Credit Facility PSX Revolving Credit Facility 5.0 0.8 0.8 2.0 0.5 1.5…
  55. February 2019 Investor Presentation – Phillips 66 – slide 55
    PHILLIPS 66 OUTLOOK 1Q 2019 Global Olefins & Polyolefins utilization Mid-90% Refining crude utilization Mid-80% Refining turnaround expenses (pre-tax) 140 MM - 170 MM Corporate & other costs (pre-tax) 210 MM - 240 MM 2019…
  56. February 2019 Investor Presentation – Phillips 66 – slide 56
    2019 CAPITAL BUDGET Millions of Dollars Sustaining Growth Capital Capital Capital Program Adjusted Capital Program Midstream* 185 847 1,032 Chemicals - - - Refining 512 411 923 Marketing and Specialties 64 97 161 Corporate and…
  57. February 2019 Investor Presentation – Phillips 66 – slide 57
    Coking Capacity 2,701 TOTAL U.S. COKING CAPACITY MBD 350 328 304 281 177 176 175 150 146 131 90 65 54 51 41 39 36 36 29 21 18 6 5,034 TOTAL GLOBAL COKING CAPACITY MBD 485 423 328 304 281 263 263 198 191 177 155 150…
  58. February 2019 Investor Presentation – Phillips 66 – slide 58
    FOOTNOTES 18 18 is as of December 31, 2018, or the twelve-month period ended December 31, 2018, as applicable; except as otherwise noted. Forecasted and Estimated EBITDA and Maps We are unable to present reconciliations of various…
  59. February 2019 Investor Presentation – Phillips 66 – slide 59
    N O N - G A A P R E C O N C I L I AT I O N ( S L I D E 1 2 ) Millions of Dollars 2014 2015 2016 2017 2018 Reconciliation of Midstream Pre-Tax Income to Adjusted EBITDA Midstream pre-tax income 851 147 402 638 1,181 Plus: Interest…
  60. February 2019 Investor Presentation – Phillips 66 – slide 60
    N O N - G A A P R E C O N C I L I AT I O N ( S L I D E S 1 7 a n d 4 1 ) Millions of Dollars 2014 2015 2016 2017 2018 Reconciliation to Net Income Attributable to the Partnership Net income attributable to the Partnership 116 194 301…
  61. February 2019 Investor Presentation – Phillips 66 – slide 61
    N O N - G A A P R E C O N C I L I AT I O N ( S L I D E S 1 7 a n d 4 1 ) Millions of Dollars 2014 2015 2016 2017 2018 Reconciliation to Net Cash Provided by Operating Activities Net Cash Provided by Operating Activities 296 392 492…
  62. February 2019 Investor Presentation – Phillips 66 – slide 62
    N O N - G A A P R E C O N C I L I AT I O N ( S L I D E 2 2 ) Millions of Dollars 2014 2015 2016 2017 2018 Reconciliation of Chemicals Pre-Tax Income to Adjusted EBITDA Chemicals pre-tax income 1,632 1,315 839 716 1,025 Plus: None…
  63. February 2019 Investor Presentation – Phillips 66 – slide 63
    N O N - G A A P R E C O N C I L I AT I O N ( S L I D E 2 6 ) Millions of Dollars 2014 2015 2016 2017 2018 Reconciliation of Refining Pre-Tax Income to Adjusted EBITDA Refining pre-tax income 2,467 3,659 436 2,076 4,535 Plus:…
  64. February 2019 Investor Presentation – Phillips 66 – slide 64
    N O N - G A A P R E C O N C I L I AT I O N ( S L I D E 2 9 ) Millions of Dollars 2014 2015 2016 2017 2018 Reconciliation of Marketing and Specialties Pre-Tax Income to Adjusted EBITDA Marketing and Specialties pre-tax income 1,475…
  65. February 2019 Investor Presentation – Phillips 66 – slide 65
    N O N - G A A P R E C O N C I L I AT I O N ( S L I D E 3 1 ) Millions of Dollars 2014 2015 2016 2017 2018 Reconciliation of Phillips 66 Pre-Tax Income to Adjusted EBITDA Phillips 66 pre-tax income 5,745 6,044 2,191 3,555 7,445…
  66. February 2019 Investor Presentation – Phillips 66 – slide 66
    N O N - G A A P R E C O N C I L I AT I O N ( S L I D E 3 1 ) Millions of Dollars 2014 2015 2016 2017 2018 Phillips 66 ROCE Numerator Net income 4,797 4,280 1,644 5,248 5,873 After-tax interest expense 173 201 220 285 398 GAAP ROCE…

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