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

Investor Update – Phillips 66

Phillips 66 · Apr 30, 2012 · 35 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. Investor Update – Phillips 66 – slide 1
    Investor Update Greg Garland April 2012
  2. Investor Update – Phillips 66 – slide 2
    Phillips 66 The Advantaged Downstream Energy Company Industry-leading Adjusted Earnings B 4 Midstream Refining & Marketing Chemicals Chemicals R&M 3 Total Midstream Financial strength 2 Earnings growth Returns enhancement…
  3. Investor Update – Phillips 66 – slide 3
    Improving Returns and Earnings R&M ROCE Midstream ROCE 12% Adjusted Earnings 30% 0.2 B - 2009 - 0.2 B 20% 18% 1.2 B - 2010 - 0.3 B 5% 1% 2.7 B - 2011 - 0.4 B 2009 2010 2011 2009 2010 2011 Chemicals ROCE Phillips 66 ROCE…
  4. Investor Update – Phillips 66 – slide 4
    Optimizing Portfolio Refining Capacity Chemicals Capacity Midstream Capacity MM Bbls crude oil/day B pounds/yr DCP BCF/D 16% reduction 8% increase 6% increase 2.7 31 7.2 29 6.8 2.2 2009 2011 2009 2011 2009 2011 3-Yr ROCE…
  5. Investor Update – Phillips 66 – slide 5
    High-Performing Businesses R&M Chemicals Midstream 2011 ROCE (%) 2011 ROCE (%) 2011 ROCE (%) MPC 27 CPChem 25 DCP 19 Midstream XOM 19 XOM Chem 22 MWE 14 TSO 18 LYB 20 PSX 12 14 OKE WLK 20 VLO 12 DOW 11 11 CVX 11…
  6. Investor Update – Phillips 66 – slide 6
    Operating Excellence Total Recordable Rates Refining Reliability Incidents per 200,000 hours worked Global utilization rate 92% 1.9 90% 88% 2011 2009 2010 1.3 1.1 0.4 0.3 0.3 0.4 0.4 0.4 Industry R&M Chemicals…
  7. Investor Update – Phillips 66 – slide 7
    Benefits of Spin Exploitation of opportunities at existing facilities Cash flow available to fund growth, returns and distributions Management focus Improving capital allocation Margin expansion Reducing operating costs…
  8. Investor Update – Phillips 66 – slide 8
    Key Initiatives Creating differential shareholder value Continuously improving operating excellence Enhancing financial strength and flexibility Allocating cash flow well / returning excess cash to shareholders Growing Chemicals…
  9. Investor Update – Phillips 66 – slide 9
    External Environment Market Assumptions U.S. shale gas and oil Supply U.S. NGLs Growth Canadian oil sands Ethanol and biofuels Non-OECD energy demand Expanding Distillate outpacing gasoline demand Demand U.S. NGL demand…
  10. Investor Update – Phillips 66 – slide 10
    North American Supply Growth U.S. Lower 48 Onshore Oil Production NGL Production (ex. Refining) 5 MMBD 5,000 MBD 4 +52% Woodford 3 Granite Wash 3,750 Niobrara Bakken 2 Avalon 1 Marcellus 2,500 0 Eagle Ford 2009 2011 2013 2015…
  11. Investor Update – Phillips 66 – slide 11
    Selected Refining Margins and Differentials Global 3-2-1 (/BBL) Ethylene Cash Margin (/Ton) 30 External Range 25 800 20 600 Ethane Derived 15 400 10 200 Naphtha Derived 5 0 0 (200) 2009 2010 2011 2012 2013 2009 2010 2011 2012…
  12. Investor Update – Phillips 66 – slide 12
    The Advantaged Downstream Energy Company Phillips 66 value proposition High-performing businesses Opportunities for growth and returns enhancement Advantaged portfolio Breadth of investment opportunities with attractive…
  13. Investor Update – Phillips 66 – slide 13
    Strong Portfolio R&M Midstream Chemicals 15 refineries (11 in US) 50/50 JV with Spectra - DCP 50/50 JV with Chevron - CPChem Nelson complexity of 11 Large U.S. gatherer & processor NAs largest producer of HDPE 2.2 MMBPD refining…
  14. Investor Update – Phillips 66 – slide 14
    Refining Assets Western / Pacific Central Corridor Gulf Coast Atlantic Basin / Europe Throughput Capacity United States FD Ireland BI 588 439 WG HU BW 2,231 SF MMBD United 471 WR Kingdom LA BG PC 733 LC AL SW Germany…
  15. Investor Update – Phillips 66 – slide 15
    Marketing and Specialty Businesses U.S. Marketing Ensures refinery off take Highly integrated with refining assets European Marketing Highest market efficiency Strong ROCE Lubricants Large finished lubes supplier Co-located with…
  16. Investor Update – Phillips 66 – slide 16
    Chemicals 50/50 JV with Chevron CPChem CPChem Net Capacity 30 B Lbs / Year Global portfolio Specialties, 80% of capacity in U.S. Aromatics Olefins / and Polyolefins Styrenics Advantaged feedstock position 70-80% of U.S. capacity…
  17. Investor Update – Phillips 66 – slide 17
    Midstream 50/50 JV with Spectra DCP Large U.S. NGL producer Wattenburg Wood River Large gatherer and processor Powder River Conway Blue Line Shocker Assets overlay shale plays Chisholm Ponca Growing MLP DPM City Borger…
  18. Investor Update – Phillips 66 – slide 18
    Differentiated Portfolio Capital employed of 24 B at year-end 2011 Refining represents 40% of 2009-2011 adjusted earnings 2011 Capital Employed 2009 2011 Adjusted Earnings 5% 14% 11% 40% 54% 22% 30% Refining 24% Marketing…
  19. Investor Update – Phillips 66 – slide 19
    Strategic Priorities Enhance return on capital Portfolio optimization Margin improvement Deliver profitable growth Chemicals expansion Midstream growth Specialties and transportation Grow shareholder distributions Regular…
  20. Investor Update – Phillips 66 – slide 20
    Enhance Return on Capital Optimize portfolio Shift capital employed to higher Capital Expenditures B returning assets / segments PSX CPChem* DCP* 2.5 Continuous high-grade of portfolio Midstream 2.0 Improve margins 1.5…
  21. Investor Update – Phillips 66 – slide 21
    Optimize Portfolio Shifting Capital Employed Increase investment in higher- returning businesses 5% 10% 11% 25% Midstream Rationalize low-returning 20% refining assets Chemicals 25% 84% Disciplined portfolio management…
  22. Investor Update – Phillips 66 – slide 22
    Capture Advantaged Feedstock Opportunities Shale oil to Phillips 66 refineries 100 MBD Current shale oil Crude Advantage (%) processed 460 MBD Total shale oil processing capability Brent/LLS/ 38.3% 46.5% HLS/ANS Billings…
  23. Investor Update – Phillips 66 – slide 23
    Increase Exports Increased exports in 2011 Canadian Oil sands Additional planned export Bakken capability increases Coastal refineries Niobrara Granitewash Phillips 66 Exports (MBD) Bone Spring Actuals Capability U.S.…
  24. Investor Update – Phillips 66 – slide 24
    Cost Initiatives Controllable Costs B Target 200 MM cost reduction Eliminate spin-related dis-synergies Drive unit operating costs lower 3.7 3.9 3.9 Potential procurement savings 2009 2010 2011 Controllable Costs do not…
  25. Investor Update – Phillips 66 – slide 25
    Deliver Profitable Growth Chemicals Olefins and polyolefins Derivatives Midstream NGL logistics Gathering and Processing capacity Refining & Marketing Specialties and transportation Limited opportunities for profitable…
  26. Investor Update – Phillips 66 – slide 26
    Chemicals Growth Growth in the Middle East Saudi Arabia: S-Chem and Saudi Polymers Company ventures Qatar: Q-Chem I and Q-Chem II ventures Pursuing additional opportunities Growth in the U.S. 2014 start-up of Cedar Bayou 1-hexene…
  27. Investor Update – Phillips 66 – slide 27
    Midstream Growth DCP Opportunities 4 B of growth projects in LaSalle Plant execution Online 2011 2014 Conway 2 B of additional opportunities Online 2012 2014 Adding 500 MBD NGL logistics Southern capacity Hills Pipeline…
  28. Investor Update – Phillips 66 – slide 28
    Returns Improvement 2009-2011 Long-Term ROCE 8% ROCE 15%+ 15+% 2009-2011 R&M Margin Chemicals Midstream Portfolio Long-Term ROCE Opportunities Growth Growth Initiatives ROCE Return-enhancing growth 29
  29. Investor Update – Phillips 66 – slide 29
    Shareholder Distributions Dividends Share repurchases Initial quarterly dividend of Cash available after funding 0.20 / share dividend growth and sustaining capital Expect annual increases Uses of excess cash Affordable Growth…
  30. Investor Update – Phillips 66 – slide 30
    Financial Strength and Flexibility Strong investment grade BBB/Baa1 Good liquidity with extended maturity profile Initial debt outstanding of 8 B Weighted average interest cost of 3.5% pre-tax 20-30% debt to total capitalization…
  31. Investor Update – Phillips 66 – slide 31
    Compelling Investment Opportunity History of building high-performing businesses Industry-leading R&M, Midstream and Chemicals segments Focus on increasing ROCE and earnings growth Balance sheet strength and financial flexibility…
  32. Investor Update – Phillips 66 – slide 32
    Investor Update Appendix
  33. Investor Update – Phillips 66 – slide 33
    PSX Non GAAP Reconciliations Millions Millions 2011 2010 2009 2011 2010 2009 1 Adjustments Earnings 4,775 735 476 R&M Less Adjustments Gain (loss) on asset sales 1,629 116 32 Gain (loss) on asset sales 1,545 116 120 Impairments…
  34. Investor Update – Phillips 66 – slide 34
    PSX Non GAAP Reconciliations PSX - ROCE Chemicals - ROCE 2011 2010 2009 2011 2010 2009 Numerator (MM) Numerator (MM) Net income 4,780 740 479 Net income 716 486 228 After-tax interest expense 11 1 1 After-tax interest expense - - -…
  35. Investor Update – Phillips 66 – slide 35
    PSX Non GAAP Reconciliations Millions Three 2011 2010 2009 Year Average 1 Marketing, Specialties and Other Earnings 2,200 566 420 1,062 Less Adjustments Gain (loss) on asset sales 1,629 116 32 592 Impairments - (8) (116) (41)…

From the store

Browse maps, data & reports in the Shale Experts store