Investor Update MAY 2020 Freeport Terminal LPG Facility, FREEPORT, 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 Share…
Integrated Portfolio * 4 See appendix for 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% 90% Industry Average 90% 1.03 15 16 17 18…
Long-Term Capital Allocation Framework 6-7 B mid-cycle CFO Sources and Uses of Cash B Sustaining capital for asset integrity, safety 1 1.6 and environmental projects 6 7 1.0 - 2.5 Secure, competitive and growing dividend 1.0 - 2.5…
Responses to Challenging Business Environment Contributed 3 MM in April to COVID-19 relief efforts Reducing 2020 consolidated capital spending by 700 MM Reducing costs by 500 MM Leveraging AdvantEdge66 initiatives Suspended share…
AdvantEdge66 UNLOCKING VALUE THROUGH BUSINESS TRANSFORMATION 1.2 B total enhancements by 2022 Total Enhancements 50% - 70% value captured as mid-cycle EBITDA uplift End to end value chain optimization Asset Performance…
Environmental, Social, Governance 8+ B invested in safety, environmental and reliability from 2012 to 2019 27% decline in SOx, NOx and PM emissions intensity from 2012 to 2019 25x lower total recordable rate in 2019 vs. U.S.…
Energy Transition POSITIONING PHILLIPS 66 TO BE COMPETITIVE LONG-TERM What we are doing Producing renewable diesel at Humber Refinery Supplying components for lithium ion batteries Marketing low carbon fuels on U.S. West Coast…
High-Performing Organization 14,600 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%…
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 Gray Oak Pipeline Beaumont Terminal Bakken Pipeline Bayou Bridge Pipeline * Executing South Texas Gateway Terminal Beaumont dock expansion Evaluating Red Oak and Liberty pipelines Bluewater…
NGL System Operational Sweeny Frac 1 LPG Export Terminal Clemens Caverns Sand and Southern Hills pipelines Executing Sweeny Fracs 2 and 3 Clemens Caverns expansion C2G Pipeline Evaluating Sweeny Frac 4 16 See appendix for…
Phillips 66 Partners Primarily fee-based midstream assets backed by minimum volume commitments Assets highly integrated with Phillips 66 system Continued sponsor support with backlog of available projects Lake Charles Isomerization…
DCP Midstream Logistics & Marketing and Gathering & Processing North Diversified portfolio in premier basins 1.6 BCFD Large-scale U.S. NGL producer and gas processor Mid-Continent Permian 1.1 BCFD 1.2 BCFD Integrated NGL supply…
Sweeny Hub Sweeny Hub Expansion1 Adding 300 MBD fractionation capacity by end of 2020 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 21 High density polyethylene (HDPE), Normal alpha olefins (NAO). Metrics shown…
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 22
Chevron Phillips Chemical Company Industry-leading safety performance with focus on Adjusted EBITDA1 B operating excellence Proprietary technology Advantaged feedstock portfolio 1.7 1.3 1.3 1.6 1.5 Global marketing network 15 16 17…
Macro Chemicals Outlook Well-positioned in North America and 20172019 Ethylene Production Cost Curve CENTS PER POUND 40 Middle East 30 W. Europe Naphtha 20 S.E. Asia N.A. Naphtha N.A Ethane Expanding global middle class is…
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 communicate value of plastics Founding member…
CPChem Growth Projects Jointly pursuing development with Qatar Petroleum on U.S. Gulf Coast II CPChem 51% equity interest 2,000 kMTA ethylene cracker Two 1,000 kMTA polyethylene units Ras Laffan Petrochemicals Project CPChem 30%…
Refining Billings Refinery BILLINGS, MT
Enhancing Returns Top-quartile HSE performance Adjusted EBITDA B Strong cash generation 5.7 4.8 2.7 3.1 1.4 Capital and cost discipline 15 16 17 18 19 High-return capital projects Capital Expenditures and Investments B 1.1…
North America Crude Feedstock Flexibility Atlantic Basin / Europe 537 MBD West Coast 364 MBD Central Crude Feedstock Slate % TOTAL CRUDE RUNS Corridor 22% 22% 22% 22% 23% 21% 17% 530 MBD 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 High-return, quick payout Completed 2019-2020 YTD projects Lake Charles isomerization unit Borger diesel recovery Wood River LSFO hydrotreater Returns 30% Bayway LSFO hydrotreater…
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 4,440 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…
U.S. West Coast Retail 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…
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…
Consolidated Debt and Liquidity Debt Maturity Profile as of March 31, 2020 B PSX Senior Notes PSXP Senior Notes PSX Term Loan PSXP Revolving Credit Facility 5.0 PSX Revolving Credit Facility 1.0 2.0 0.5 0.5* 0.8 1.5 1.7 0.8 1.0…
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 Peer ROCE 2017-2019 Average 18% % AFTER-TAX % AFTER-TAX…
Long-Term Capital Allocation Framework 6-7 B mid-cycle CFO Sources and Uses of Cash B Sustaining capital for asset integrity, safety 1 1.6 and environmental projects 6 7 1.0 - 2.5 Secure, competitive and growing dividend 1.0 - 2.5…
Adjusted Capital Spending Adjusted Capital Spending B 2020E Adjusted Capital Spending1 3.5 3.0 2.8 2.6 Midstream Sustaining PSX 1.8 Midstream Refining & PSXP Marketing 16 17 18 19 20E Sustaining Growth 45 1)…
Distributions Annual Dividend PER SHARE Secure, competitive and growing dividend 22% CAGR with nine increases since May 2012 3.10 3.50 3.60 2.45 2.73 Committed to shareholder distributions 16 17 18 19 20A Repurchased / exchanged…
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 High distribution coverage Solid financial position Midstream segment valuation transparency Phillips 66 owns 74% of LP common units…
Phillips 66 Partners 51 Refineries owned by Phillips 66
Phillips 66 Partners FINANCIAL STRENGTH AND FLEXIBILITY Maintain strong leverage and coverage ratios, Distribution Per Common LP Unit with long-term targets: Up to 3.5x Debt / EBITDA 3.09 3.44 3.50 2.08 2.53 Greater than 1.2x…
Phillips 66 Partners Organic Projects 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 PIPELINE AND TERMINAL PROJECTS Gray Oak Pipeline 42.25% PSXP effective ownership Crude oil pipeline from Permian and Eagle Ford to Texas Gulf Coast Project completed in 2Q 2020 900 MBD West Texas crude capacity…
Phillips 66 Partners SWEENY HUB INFRASTRUCTURE GROWTH C2G Pipeline New 16 inch ethane pipeline to Gregory, Texas, near Corpus Christi, Texas Expected start up in mid-2021 Supplies Corpus Christi area petrochemical facilities…
Phillips 66 Partners VALUE PROPOSITION Total Unitholder Return Since IPO Supports Phillips 66 Midstream growth % 300% Premier MLP with competitive cost of capital 200% PSXP: +147% Portfolio of highly integrated assets 100%…
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 2 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 61
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,…
2Q 2020 Outlook Los Angeles Refinery, WILMINGTON, CA Global Olefins & Polyolefins utilization Mid-90% Refining crude utilization Market Conditions Refining turnaround expenses (pre-tax) 45 MM - 70 MM Corporate & Other costs (pre-tax)…
Footnotes General Information disclosed is as of March 31, 2020, unless noted otherwise. Numbers may not appear to tie due to rounding. AdvantEdge66 may be abbreviated as AE66. Chevron Phillips Chemical Company may be abbreviated as…
Footnotes Maps Maps, images and drawings are for informational purposes only and may not be to scale. 65
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