Investor Update FEBRUARY 2020 Sweeny Fracs 2, 3 and 4 Construction OLD OCEAN, TX
Executing the Strategy GROWTH RETURNS DISTRIBUTIONS Pipelines to Gulf Coast Refinery yield projects Secure, competitive and Crude export capability Clean product export growing dividend NGL value chain capability Commitment to…
Delivering on Our Commitments EXECUTED EXECUTING / DEVELOPING Sweeny Hub Gray Oak Pipeline Freeport LPG Export Terminal Red Oak and Liberty pipelines GROWTH Beaumont Terminal Sweeny Fractionators 2, 3, 4 Bakken Pipeline South Texas…
Integrated Portfolio in 2022 * 5 As of February 21, 2020. See appendix for additional footnotes.
Operating Excellence Total Recordable Rates Refining Crude Capacity Utilization INCIDENTS PER 200,000 HOURS WORKED % 96% 95% 95% Phillips 66 CPChem DCP Midstream 94% 93% 91% 91% 91% Industry Average 90% 90% 1.03 15 16 17 18…
Environmental, Social, Governance 100% of Board of Directors meetings include ESG topics 8+ B invested in safety, environmental and reliability from 2012 to 2019 40+ ESG metrics in 2019 sustainability report 50% lower total recordable…
High-Performing Organization 14,500 employees live our values, every day VISION 94% retention of all employees, 96% retention of high Providing Energy. Improving Lives. performers 21% women and 26% U.S. minority CORE VALUES 44%…
AdvantEdge66 UNLOCKING VALUE THROUGH BUSINESS TRANSFORMATION 1.2 B total enhancements by end of 2021 Total Enhancements 50% - 70% value captured as mid-cycle EBITDA uplift by 2022 End to end value chain optimization Asset…
Mid-Cycle Adjusted EBITDA 2 B incremental mid-cycle adjusted Adjusted EBITDA Growth of 2 B B EBITDA over three years Midstream growth investments Marketing Refining and Marketing return projects Midstream AdvantEdge66…
Disciplined Capital Allocation 7 B mid-cycle CFO in 2020 Sources and Used of Cash B 1 1.6 - 1.7 Sustaining capital for asset integrity, safety and 7 6 1.5 - 2.5 environmental projects 1.5 - 2.5 Mid-Cycle Sust. FCF Dividends Growth…
Midstream Beaumont Terminal NEDERLAND, TX
Midstream Portfolio Transportation NGL and Other DCP Midstream 22,000 miles of U.S. pipeline systems 200,000+ BPD fractionation capacity 45 natural gas processing facilities 39 product terminals 200,000 BPD LPG export capacity 6.5…
Building a Premier Midstream Business Top-quartile safety performance Adjusted EBITDA B 2.3 1.9 Diversified portfolio integrated with Refining and 1.2 1.0 1.0 Marketing Integrated crude system with optionality for 15 16 17 PSX &…
Crude Oil System Operational Bakken Pipeline Bayou Bridge Pipeline Beaumont Terminal Gray Oak Pipeline Executing Red Oak and Liberty pipelines Beaumont storage and dock expansion South Texas Gateway Terminal Developing ACE…
NGL System Operational Sweeny Frac 1 LPG Export Terminal Clemens Caverns Sand and Southern Hills pipelines Executing Sweeny Fracs 2, 3 and 4 C2G Pipeline Clemens Caverns expansion Developing Sweeny Fracs 5 and 6 Freeport…
Phillips 66 Partners Growth-oriented master limited partnership Primarily fee-based midstream assets backed by minimum volume commitments Assets highly integrated with Phillips 66 system Continued sponsor support with backlog of…
DCP Midstream Logistics & Marketing and Gathering & Processing North 1.6 BCFD Diversified portfolio in premier basins Mid-Continent 1.4 BCFD Large-scale U.S. NGL producer and gas processor Permian 1.3 BCFD Integrated NGL supply for…
Liberty and Red Oak Crude Oil Pipeline Systems Liberty Pipeline From the Rockies and Bakken to Cushing, Oklahoma Initial service expected 1H 2021 24 inch pipeline 50% PSX ownership expected to be acquired by PSXP in March 2020 Red…
Sweeny Hub Sweeny Hub Expansion1 Adding 450 MBD fractionation capacity by 2Q 2021 Secured y-grade feedstock supply agreements with firm volume commitments Reduces cost of supply for 200 MBD Freeport LPG Export Terminal Provides…
Chemicals Polyethylene Units OLD OCEAN, TX
Feedstock Advantaged Chemicals Portfolio 1 HDPE producer worldwide 2 NAO producer worldwide 2 Propylene merchant producer In North America 22 See appendix for footnotes
Chemicals Value Chain Upgrade Serve growing low-cost global ethane middle class feedstock World-scale Produce manufacturing in-demand facilities and products proprietary technology 70,000+ end-user products 23
Chevron Phillips Chemical Company Industry-leading safety performance with focus on Adjusted EBITDA1 operating excellence B Proprietary technology Advantaged feedstock portfolio 1.7 1.6 1.5 1.3 1.3 Global marketing network Debottleneck…
Macro Chemicals Outlook 2019 Ethylene Production Cost Curve CENTS PER POUND 60 W. Europe M.E. Naphtha Naphtha W. Europe LPG Well-positioned in North America and 40 Asia Coal Asia Naphtha Middle East 20 N.A. Ethane N.A. Naphtha…
Sustainability Enhancing efforts to eliminate plastic pellet spills by joining Operation Clean Sweep Blue and investing in Circulate Capital Ocean Fund Continue to combat plastic waste and improve perception of plastics Founding…
CPChem Growth Projects U.S. Gulf Coast II Jointly pursuing development with Qatar Petroleum CPChem 51% equity interest 2,000 kMTA ethylene cracker Two 1,000 kMTA polyethylene units FID in 2021 with targeted startup in 2024 Ras…
Refining Billings Refinery BILLINGS, MT
Enhancing Returns Adjusted EBITDA B Top-quartile HSE performance 5.7 4.8 3.1 Strong cash generation 1.4 2.7 15 16 17 18 19 Capital and cost discipline High-return capital projects Capital Expenditures and Investments B 1.1…
Refining Portfolio Competitiveness Peer Comparison % High distillate yield Distillate Canadian Coking Capacity / Production / Imports / Crude Capacity Throughput Crude Runs Largest purchaser of advantaged Canadian crude…
North America Crude Feedstock Flexibility Atlantic Basin / Europe 537 MBD West Coast 364 MBD Central Crude Feedstock Slate Corridor % TOTAL CRUDE RUNS 530 MBD 22% 22% 22% 22% 23% 21% 17% 23% 23% 24% 27% 24% 24% 27% 20% 19%…
Maintain Cost Discipline U.S. Industry Benchmarking Performance1 EFFICIENCY POSITION Top quartile non-energy operating cost Maintenance and personnel costs trending to top 1st Quartile quartile in industry 2nd Quartile Cost…
AdvantEdge66 BUSINESS TRANSFORMATION End-to-end value chain optimization Deploying digital technology to provide real-time information Leveraging advanced analytics to enable agile decision making Empowering our people to improve value…
Enhancing Returns THROUGH CAPITAL INVESTMENTS 2019 Lake Charles isomerization unit High-return, quick payout Borger diesel recovery Wood River LSFO hydrotreater projects Bayway LSFO hydrotreater 2020 Sweeny FCC modernization…
Marketing & Specialties Phillips 66 Branded Marketing Site ST. LOUIS, MO
Enhancing Returns Adjusted EBITDA High-return, low-capital business B Refining product placement 1.5 1.6 1.4 1.5 1.2 Fuel brands reimaging 15 16 17 18 19 Integration through equity partnerships Capital Expenditures and…
Secure Product Placements United States 4,200 sites reimaged since program inception All eligible sites are mobile enabled Direct consumer engagement Expanding partnerships with private labels Europe Proven low-cost, high-volume…
West Coast Marketing Joint Venture Formed joint venture with large wholesale / retail operator Proven retail operational expertise Increases long-term placement of Phillips 66 refinery production Participates in retail fuel margins…
Renewable Diesel Portfolio approach for renewable diesel production Humber UCO renewable diesel project San Francisco renewable diesel production Offtake agreement with Ryze Renewables Pursuing opportunities to leverage existing…
AdvantEdge66 BUSINESS TRANSFORMATION Go-to-Market Value Enablers Efficiency Enhanced Mobile Pay platform Develop Artificial Intelligence Enhance optimization tools machine learning Improved digital customer Automate the…
Financial Strategy Disciplined capital allocation Committed to a secure, competitive and growing dividend Intrinsic value approach to share repurchases Maintain financial flexibility, strong investment grade credit rating Phillips…
Adjusted EBITDA and Returns Adjusted EBITDA Adjusted Earnings B PER SHARE 10.1 11.71 8.6 7.6 7.67 8.05 4.7 5.9 4.38 2.82 15 16 17 18 19 15 16 17 18 19 Adjusted ROCE ROCE Peer Three-Year Avg % AFTER-TAX % AFTER-TAX…
Disciplined Capital Allocation Fund sustaining capital to maintain asset integrity Sources and Used of Cash B 1 1.6 - 1.7 Committed to a secure, competitive and growing 7 6 1.5 - 2.5 dividend 1.5 - 2.5 Investing in growth…
Adjusted Capital Expenditures Adjusted Capital Spending B 2020B Adjusted Capital Spending1 4.3 3.5 3.3 2.8 Midstream 2.6 Sustaining PSX 1.8 Midstream Refining & PSXP Marketing 15 16 17 18 19 20B Sustaining…
Distributions Annual Dividend PER SHARE Secure, competitive and growing dividend 3.10 3.50 12.5% increase in 2Q19 to 0.90 per share 2.45 2.73 2.18 25% CAGR with nine increases since May 2012 15 16 17 18 19 Committed to intrinsic…
Phillips 66 Partners OWNERSHIP STRUCTURE PSXP Public Non-economic general Common partner interest and 74% Unitholders limited partner interest 26% limited partner interest (NYSE: PSXP) Operating Subsidiaries Joint…
Phillips 66 Partners STRATEGIC FIT Competitive cost of capital Strong partnership fundamentals Robust growth profile High distribution coverage Solid financial position Midstream segment valuation transparency Phillips 66 owns…
Phillips 66 Partners FINANCIAL STRENGTH AND FLEXIBILITY 2020 exit run-rate adjusted EBITDA of 1.5 B Distribution Per Common LP Unit Maintain strong leverage and coverage ratios, with long-term targets: 3.44 3.09 Up to 3.5x Debt /…
Phillips 66 Partners GROWTH Organic Adjusted Capital Spending Gray Oak Pipeline B South Texas Gateway Terminal 0.9 C2G Pipeline 0.8 0.7 Clemens Caverns expansion 0.5 Sweeny to Pasadena capacity expansion 0.4 0.2 Continued…
Phillips 66 Partners GRAY OAK PIPELINE AND SOUTH TEXAS GATEWAY TERMINAL Gray Oak Pipeline 42.25% PSXP effective ownership Crude oil pipeline from Permian and Eagle Ford to Texas Gulf Coast Initial startup 4Q 2019; Full service expected…
Phillips 66 Partners SWEENY HUB INFRASTRUCTURE GROWTH C2G Pipeline New 16 inch ethane pipeline to Gregory, Texas, near Corpus Christi Expected start up in mid-2021 Supplies Corpus Christi area petrochemical facilities Clemens…
Phillips 66 Partners VALUE PROPOSITION Total Unitholder Return Since IPO % Supports Phillips 66 Midstream growth PSXP: 250% +245% 150% Premier MLP with competitive cost of capital 50% AMZ: -50% (25%) Jul-13 Jul-14 Jul-15 Jul-16…
Beaumont Terminal NEDERLAND, TX
2020 Sensitivities Annual EBITDA MM Midstream - DCP (net to Phillips 66) 10/Gal Increase in NGL price 9 10/MMBtu Increase in Natural Gas price 3 1/BBL Increase in WTI price 1 Chemicals - CPChem (net to Phillips 66) 1/Lb Increase…
Midstream Organic Growth PSX PROJECT START-UP CAPACITY GROSS CAPITAL OWNERSHIP (MM) (%) Beaumont Terminal expansion phase IV 1Q 2020 2.2 MMB 80 100 Beaumont Terminal Dock IV1 3Q 2020 200 MBD 70 100 Sweeny Fractionators 2 and 3 4Q…
Value Chain 62
Gray Oak Pipeline Ownership Structure PSXP HAS A 42.25% EFFECTIVE OWNERSHIP IN THE GRAY OAK PIPELINE (NYSE: PSXP) (NYSE: ENB) 65% 35% Gray Oak Holdings, LLC 65% (NYSE: MPC) (NYSE: FANG) 25% 10% Gray Oak Pipeline,…
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