PHILLIPS 66 2014 BANK OF AMERICA MERRILL LYNCH REFINING CONFERENCE - - PowerPoint PPT Presentation

PHILLIPS 66

2014 BANK OF AMERICA MERRILL LYNCH REFINING CONFERENCE

Clayton Reasor, SVP Investor Relations, Strategy and Corporate Affairs

2

This presentation contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Words and phrases such as “is anticipated,” “is estimated,” “is expected,” “is planned,” “is scheduled,” “is targeted,” “believes,” “intends,” “objectives,” “projects,” “strategies” and similar expressions are used to identify such forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements relating to Phillips 66’s operations (including joint venture

• perations) are based on management’s expectations, estimates and projections about the company, its interests and the

energy industry in general on the date this presentation was prepared. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual

• utcomes and results may differ materially from what is expressed or forecast in such forward-looking statements.

Factors that could cause actual results or events to differ materially from those described in the forward-looking statements include fluctuations in crude oil, NGL, and natural gas prices, and refining and petrochemical margins; unexpected changes in costs for constructing, modifying or operating our facilities; unexpected difficulties in manufacturing, refining or transporting our products; lack of, or disruptions in, adequate and reliable transportation for

• ur crude oil, natural gas, NGL, and refined products; potential liability from litigation or for remedial actions, including

removal and reclamation obligations under environmental regulations; limited access to capital or significantly higher cost

• f capital related to illiquidity or uncertainty in the domestic or international financial markets; and other economic,

business, competitive and/or regulatory factors affecting Phillips 66’s businesses generally as set forth in our filings with the Securities and Exchange Commission. Phillips 66 is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

CAUTIONARY STATEMENT

3

Operating excellence Growth Returns Distributions High-performing organization

STRATEGY

50 100 150 200 250 2002 2004 2006 2008 2010 2012 0.5 1 1.5 2 2.5

Total Recordable Rates

OPERATING EXCELLENCE

4

(Incidents per 200,000 Hours Worked) 2009 2010 2011 2012 2013

U.S. Refining Emissions (Lb/MBbl)

(SOx, NOx, and Particulate Matter)

Industry Average

Phillips 66 CPChem DCP

See appendix for footnotes.

Midstream tream: Growth

Build on integrated Transportation system Utilize Phillips 66 Partners LP as a growth vehicle Expand DCP Grow NGL Operations

Chemi emical cals: Growth

Grow CPChem Advance olefins and polyolefins projects Capitalize on domestic feedstock advantage

Mark rketi ting ng & S Special alti ties es: Selective growth

Expand European Retail Marketing Grow Lubricants Ensure refinery pull-through

5

Refini ning ng: Enhance returns

Process more advantaged crudes Expand export capability Increase yields Decrease costs Optimize portfolio

SEGMENT STRATEGY

Gulf Coast Fractionator, Mont Belvieu, Texas.

2013 Sept Annualized ROCE See appendix for footnotes.

15% 8% 7% 6%

PSX OKE EPD KMP

HIGH-PERFORMING BUSINESSES

6

26% 23% 21% 19% 9%

PSX LYB WLK XOM Chem DOW

Chemi emicals als

ROCE

Midst dstre ream

ROCE

17% 15% 8% 8% 6%

PSX MPC CVX VLO TSO

Refinin fining g and nd M&S M&S

ROCE

MIDSTREAM MACRO ENVIRONMENT

7

1 2 3 4 5 6 2003 2008 2013 2018 2023

EIA Consultant A Consultant B Consultant C Consultant D Consultant E Consultant F

Forecast History

Growing domestic NGL production is reshaping U.S. midstream business Wide range of consultant forecasts Infrastructure needed to move new production to market centers U.S. NGL Production

(MMBD)

500 1,000 1,500 2,000 2,500 3,000 2000 2005 2010 2015 2020 2025 2030

Demand High Production Low Production

8

Ethylene Production Cost Curve

($/ton)

U.S. Ethane Production and Demand

(MBD)

CHEMICALS MACRO ENVIRONMENT

See appendix for footnotes.

300 600 900 1,200 10 40 70 100 130

Cumulative Capacity MM tons M.E. Ethane N.A. Ethane N.A. LPG/Naphtha M.E. LPG/Naphtha Other LPG/Naphtha Asia LPG/Naphtha Europe LPG/Naphtha

Cumulative Capacity MM Tons

• 25
• 20
• 15
• 10
• 5

5 1Q09 1Q10 1Q11 1Q12 1Q13

• 25
• 20
• 15
• 10
• 5

5 1Q09 1Q10 1Q11 1Q12 1Q13

9

• 25
• 20
• 15
• 10
• 5

5 1Q09 1Q10 1Q11 1Q12 1Q13

LLS LLS - Brent nt

(Nomi mina nal l $/bbl)

WTI TI - LLS LLS

(Nomi mina nal l $/bbl)

2009 – 2013 avg: $-10.04/bbl

Maya a - LLS LLS

(Nomi mina nal l $/bbl)

2009 – 2013 avg: $-11.25/bbl

REFINING MACRO ENVIRONMENT

2009 – 2013 avg: $1.18/bbl

7.4 5.4 2 4 6 8 10 2010 2013 Heavy Sweet Heavy Sour Light/Medium Sweet Light/Medium Sour

10

U.S. tight oil and Canadian production are displacing imports Most grades of U.S. waterborne imports have diminished Expect trend to continue Total U.S. Waterborne Crude Imports (MMBD)

REFINING MACRO ENVIRONMENT

See appendix for footnotes.

11

Build on integrated Transportation system Utilize Phillips 66 Partners LP as a growth vehicle Expand DCP Grow NGL Operations

MIDSTREAM GROWTH

• MLP. Pecan Grove Crude Terminal, Carlyss, LA.

Crude rail cars Jones Act ships Unit train crude unloading facility projects Clean products export facility projects Terminal butane blending Re-commission idle pipelines New refinery storage

TRANSPORTATION

12

Jones Act tanker delivering Eagle Ford crude.

PHILLIPS 66 PARTNERS LP

13

Strategic relationship with PSX Significant growth potential Low cost capital source Financial flexibility $700 MM initial acquisition

Figures shown are 100% DCP.

14

2015+

DCP MIDSTREAM

Goliad Gas Plant 200 MMCFD Granite Wash Gathering System Expansion 140 MMCFD National Helium Gas Plant 600 MMCFD Rawhide Gas Plant 75 MMCFD O’Connor Gas Plant 100 -- 160 MMCFD Sand Hills 720 miles, 200 -- 350 MBD Southern Hills 800 miles, 175 MBD Front Range 435 miles, 150 -- 230 MBD Texas Express 580 miles, 280 -- 400 MBD

Gathering and Processing NGL Pipelines

G&P Plant Under construction/development Expansion/Restart DCP Legacy New/Growth

Sand Hills and Southern Hills startup Butane and butylene storage hub Sweeny fractionator and pipelines Freeport export terminal and de-ethanizer Clemens salt dome storage

15

NGL OPERATIONS

Sand Hills Pipeline. Metering station. Mont Belvieu, Texas.

0.0 0.5 1.0 1.5 2.0 2010 2011 2012 2013 2014E

MIDSTREAM GROWTH

16

Capital Program

($B)

NGL Operations DCP Midstream Transportation

See appendix for footnotes.

DCP NGL Ops and Transportation

G&P in Execution

2013 2015 2017+ 2014 2016

Sand Hills and Southern Hills pipelines Rail Offloading Facilities Rail Cars Butane and Butylene Storage Hub Sweeny fractionator, storage, and pipelines G&P Expansions Freeport export terminal and de-ethanizer New pipelines

2012

CHEMICALS GROWTH

17

Grow CPChem Advance olefins and polyolefins projects Capitalize on domestic feedstock advantage

• 5

10 15 20 25 CPC CPC '17 DOW XOM LYB WLK

Other M.E. region N.A. light feedstock

18

Portfolio concentrated in advantaged feedstock regions U.S. 100% light feedstock based Leading Middle East position First mover on U.S. expansions

See appendix for footnotes. Other category is predominantly heavy feedstock capacity. N.A. light feedstock is predominantly ethane, propane, and butane.

CHEMICALS FEEDSTOCK ADVANTAGE

Worldwide Ethylene Capacity

(Billion Lbs)

Estimated capex and EBITDA figures are 100% CPChem. Estimated EBITDA based on 2012 IHS industry margins.

19

CHEMICALS ADVANCING OLEFINS AND POLYOLEFINS PROJECTS

1-Hexene Unit Sweeny Ethylene Furnace NAO Expansion US Gulf Coast Petrochemicals Project

Capacity increase 25% from 2013 to 2017 Estimated project spending $6.5 -- 7.0 B Additional EBITDA $1.3 -- 1.6 B per year 2017+

• CPChem. Mesaieed, Qatar

20

0.0 0.4 0.8 1.2 2010 2011 2012 2013 2014E

CHEMICALS EXECUTING GROWTH

Capital Program

($B) 2013 2015 2017+ 2014 2016

1-Hexene Unit 250 kMTA Sweeny Ethylene Furnace 90 kMTA USGC Petrochemicals 1,500 kMTA (ethylene), 1,000 kMTA (polyethylene) NAO Expansion ~130 kMTA

See appendix for footnotes.

2012

21

Process more advantaged crudes Expand export capability Increase yields Decrease costs Optimize portfolio

REFINING ENHANCE RETURNS

San Francisco Refinery, Rodeo Facility. San Francisco, California.

REFINING DIVERSIFIED PORTFOLIO

22

MI

Germany

HU

WG

Ireland United Kingdom

ME

Malaysia Western / Pacific 440 MBD Central Region 475 MBD Gulf Coast 733 MBD Atlantic Basin / Europe 588 MBD

LA SF FD BI BG PC

BW

AL SW WR LC

Refinery system runs ~50% Sweet - 50% Sour crudes; ~65% Light/Medium - 35% Heavy crudes

See appendix for footnotes.

REFINING ADVANTAGED CRUDE

23

U.S. Refining

(MBD)

Other Light/Medium Brent Heavy Canadian WTI/WTS

See appendix for footnotes.

Current 3+ Years

Gasoline Gasoline Distillate Distillate

East East East Gulf Gulf Gulf West West West

REFINING ENHANCE RETURNS

24

Increase product placement optionality Capture global demand growth Maintain high utilization rates

2012 2013 3+ Years Actual Actual Capacity Capacity Capacity

Domestic Exports

(MBD)

100 285 180 410 500

See appendix for footnotes.

0% 10% 20% 30% 2010 2011 2012 2013

Adjusted ROCE

(%)

REFINING ENHANCE RETURNS

25

0.0 1.0 2.0 2010 2011 2012 2013 2014E Refining WRB

Capital Program

($B)

26

Expand European Retail Marketing Grow Lubricants Ensure refinery pull-through

MARKETING AND SPECIALTIES SELECTIVE GROWTH

Berlin, Germany

27

1.6 3.5 6.4 9.0 6.7 2% 6% 14% 22% 14%

2009 2010 2011 2012 2013

Midstream Chemicals Marketing & Specialties Refining Corporate ROCE

Adjusted EBITDA and ROCE

($B)

FINANCIAL SUMMARY

Disciplined capital allocation Enhanced financial flexibility Growing shareholder distributions

20% - 30%

19.0 20.6 20.8 21.4 21.7 22.0 22.4 8.0 8.0 7.0 7.0 6.5 6.2 6.2 30% 28% 25% 25% 23% 22% 22% 2Q 2012 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013 4Q 2013

Equity $B Debt $B Debt to Capital

CAPITAL STRUCTURE

28

1 2 3 4 5 2012 2013 2014E 2012 2013 2014E 2012 2013 2014E Midstream Refining Marketing & Specialties Corporate

TOTAL CAPITAL PROGRAM

29

$B

See appendix for footnotes.

Phillips 66 Consolidated Selected Joint Ventures Total DCP CPChem WRB

SHAREHOLDER DISTRIBUTIONS

30

0.0 1.0 2.0 3.0 4.0 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 Total Dividends Share Repurchases

Regular dividends

Secure Growing Competitive

Share repurchase

Immediate EPS growth Below intrinsic value Announced $5 B in buybacks

Distributions

($B)

$3.7 B capital returned to shareholders

A PROMISING FUTURE

31

Operating excellence Growth Returns Distributions High-performing organization

INSTITUTIONAL INVESTORS CONTACT

Rosy Zuklic Manager, Investor Relations Rosy.Zuklic@p66.com 832-765-2297

Save the date: 2014 Phillips 66 Analyst meeting April 10, 2014 New York, NY

FOOTNOTES

33

Slide 4

Injury statistics do not include major projects. Industry Averages are from: Phillips 66 –American Fuels and Petrochemical Manufacturers (AFPM) refining data, CPChem – American Chemistry Council (ACC), DCP – Gas Processors Association (GPA). U.S. Refining emissions exclude Trainer. Values are calculated as pounds of SOx, NOx, and particulate matter per thousand barrels of clean product produced. WRB is included at 50%.

Slide 6

To facilitate peer comparison, PSX’s Refining and Marketing & Specialties segments were combined for the Downstream ROCE calculation and recast to exclude impacts of PSPI. Downstream ROCE for MPC, VLO and TSO are total company. Downstream ROCE for CVX estimated based on Downstream excluding Chemicals. XOM Chem refers to Exxon Mobil’s Chemicals segment.

Slide 8

US Ethane Supply/Demand Imbalance Source: Historical: EIA; Forecast: P66 internal analysis 2013 Ethylene Production Cost Curve – Source: Wood Mackenzie, 2012 estimated data using Brent $112/bbl and Henry Hub $3/mbtu

Slide 10

Source: ClipperData Crude definitions: Light >32API, Medium 32-34 API, Heavy <24 API. Sweet <0.5 sulfur, Sour >=0.5 sulfur

FOOTNOTES

34

Slide 16

DCP Midstream capital program includes equity share of DCP Midstream capital. 2012 NGL Ops includes acquisition costs for one-third interest of Sand Hills and Southern Hills Pipelines totaling approximately $0.5 B. This amount was also included in DCP Midstream's capital spending, primarily in 2012.

Slide 18

Source: ICIS , 10-K filings, and external press releases

Slide 20

Project capacities are gross capacity. Chemicals capital program denotes equity share of CPChem capital.

Slide 22

Sour is defined as sulfur > 0.54wt% Heavy is defined as API < 24

Slide 23 U.S. advantaged crude percentages are on an equity basis. Light and medium Canadian crude are in the WTI/WTS category. Slide 25 Capital program denotes equity share of WRB capital as well as non-cash capital leases. Slide 29 Total capital program includes non-cash capital leases and our net share of certain equity affiliate investments.

PSXP - FIRST ACQUISITION OVERVIEW

35

PHILLIPS 66 PARTNERS LP

$700 MM Initial Acquisition in Feb 2014 Asset Overview

Gold Product Pipeline System

‒ 735-mile, 10-16” pipeline system ‒ Four truck rack terminals with an aggregate capacity of 172 MBD

Two refinery grade propylene (RGP) spheres

‒ Newly constructed asset in Medford, OK ‒ 70 MBbls working capacity ‒ RGP outlet from Ponca City refinery ‒ Commercial operations began March 2014

2014 SENSITIVITIES

36

Sensitivities shown above are independent and are only valid within a limited price range

Net Income $MM Midstream

1¢/Gal Increase in NGL price 4 10¢/MMBtu Increase in Natural Gas price 2 $1/BBL Increase in WTI price 2

Chemicals

1¢/Lb Increase in Olefins Chain Margin (Ethylene, Polyethylene, NAO) 35

Worldwide Refining (assuming 94% refining utilization)

$1/BBL Increase in Refining Margin 440 $1/BBL Widening LLS / Maya Differential (LLS less Maya) 50 $1/BBL Widening WTI / WCS Differential (WTI less WCS) 40 $1/BBL Widening WTI / WTS Differential (WTI less WTS) 15 $1/BBL Widening LLS / WCS Differential (LLS less WCS) 10 $1/BBL Widening ANS / WCS Differential (ANS less WCS) 10 $0.10/MMBtu Increase in Natural Gas price (10) Impacts due to Actual Crude Feedstock Differing from Feedstock Assumed in Market Indicators:

NON-GAAP RECONCILIATIONS ADJUSTED EARNINGS SLIDE 6

37

2013 2012 2011 2010 2009 Year Year Year Year Year Midstream Earnings (loss) 469 $ 53 $ 2,149 $ 386 $ 386 $ Adjustments: Net (gain) loss on asset sales

• (1,618)
• (19)

Impairments

• 330

4

• 79

Pending claims and settlements

• (23)
• Gain on share issuance by equity affiliate
• (88)

Hurricane-related costs

• 2
• Adjusted earnings

469 $ 362 $ 535 $ 386 $ 358 $ Chemicals Earnings (loss) 986 $ 823 $ 716 $ 486 $ 228 $ Adjustments: Impairments

• 27
• Premium on early debt retirement
• 89
• Repositioning tax impacts
• 41
• Adjusted earnings

986 $ 980 $ 716 $ 486 $ 228 $ Millions of Dollars

NON-GAAP RECONCILIATIONS ADJUSTED EARNINGS SLIDE 6

38 2013 2012 2011 2010 2009 Year Year Year Year Year Refining Earnings (loss) 1,851 $ 3,217 $ 1,529 $ (545) $ (536) $ Adjustments: Net (gain) loss on asset sales

• (104)

96

• Impairments
• 606

314 1,110

• Canceled projects
• 28

29

• Severance accruals
• 15

28

• Tax law impacts

(13)

• Pending claims and settlements
• 19
• 25

Repositioning tax impacts

• 73
• Hurricane-related costs
• 33
• Adjusted earnings

1,838 $ 3,844 $ 1,982 $ 622 $ (511) $ Marketing & Specialties Earnings (loss) 790 $ 417 $ 530 $ 537 $ 519 $ Adjustments: Net (gain) loss on asset sales (23) (2) (23) (116) (13) Impairments

• 8

37 Pending claims and settlements (16) 38

• (35)
• Exit of business line

34

• Tax law impacts

(4)

• Repositioning tax impacts
• 63
• Adjusted earnings

781 $ 516 $ 507 $ 394 $ 543 $ Millions of Dollars

NON-GAAP RECONCILIATIONS 2013 ROCE SLIDE 7

39

* Total equity plus total debt

September 30, 2013 YTD Midstream Chemicals Refining and M&S Numerator ($MM) Net Income 358 $ 725 $ 2,118 $ After-tax interest expense

• GAAP ROCE earnings

358 725 2,118 Special Items

• (22)

Adjusted ROCE earnings 358 $ 725 $ 2,096 $ Denominator ($MM) GAAP average capital employed* 3,182 $ 3,731 $ 16,678 $ Annual Adjusted ROCE 15% 26% 17% Annual GAAP ROCE 15% 26% 17%

NON-GAAP RECONCILIATIONS CPCHEM EBITDA SLIDE 20

40

Incremental Project Earnings Projections EBITDA Reconcilation to Net Income - $MM Estimated incremental net income (CPChem View) Low High Estimated incremental net income 1,000 1,313 Estimated depreciation 280 260 Estimated interest

• Estimated taxes

20 27 Estimated incremental EBITDA 1,300 1,600

NON-GAAP RECONCILIATIONS REFINING ROCE SLIDE 26

41

* Total equity plus total debt

2013 2012 2011 2010 Year Year Year Year Refining - ROCE Numerator Net Income 1,851 $ 3,217 $ 1,529 $ (545) $ After-tax interest expense

• GAAP ROCE earnings

1,851 3,217 1,529 (545) Special Items (13) 627 453 1,167 Adjusted ROCE earnings 1,838 $ 3,844 $ 1,982 $ 622 $ Denominator GAAP average capital employed* 14,252 $ 14,331 $ 15,160 $ 16,829 $ Annual Adjusted ROCE 13% 27% 13% 4% Annual GAAP ROCE 13% 22% 10%

• 3%

Millions of Dollars Except as Indicated

NON-GAAP RECONCILIATIONS ROCE SLIDE 28

42

* Total equity plus total debt

2013 2012 2011 2010 2009 Year Year Year Year Year Phillips 66 - ROCE Numerator Net Income 3,743 $ 4,131 $ 4,780 $ 740 $ 479 $ After-tax interest expense 178 160 11 1 1 GAAP ROCE earnings 3,921 4,291 4,791 741 480 Special Items (83) 1,215 (1,227) 994 2 Adjusted ROCE earnings 3,838 $ 5,506 $ 3,564 $ 1,735 $ 482 $ Denominator GAAP average capital employed* 28,163 $ 25,732 $ 25,064 $ 26,906 $ 26,417 $ Discontinued Operations (191) (176) $ (163) $ (168) $ (173) $ Adjusted average capital employed* 27,972 $ 25,556 $ 24,901 $ 26,738 $ 26,244 $ Annual Adjusted ROCE 14% 22% 14% 6% 2% Annual GAAP ROCE 14% 17% 19% 3% 2% Millions of Dollars Except as Indicated

NON-GAAP RECONCILIATIONS ADJUSTED EBITDA SLIDE 28

43

2013 2012 2011 2010 2009 Year Year Year Year Year Phillips 66 Net Income 3,743 $ 4,131 $ 4,780 $ 740 $ 479 $ Less: Income from discontinued operations 61 48 43 30 19 Plus: Income taxes 1,844 2,473 1,822 562 357 Net interest expense 258 231 (16) (41) (44) Depreciation and amortization 947 906 902 874 873 EBITDA from continuing operations 6,731 $ 7,693 $ 7,445 $ 2,105 $ 1,646 $ Adjustments (pre-tax): Net (gain) loss on asset sales (40) (189) (1,636) (234) (37) Gain on share issuance by equity affiliate

• (135)

Impairments

• 1,197

506 1,512 129 Canceled projects

• 44

106

• Severance accruals
• 24

28

• Exit of business line

54

• Tax law impacts

(28)

• Pending claims and settlements

(25) 56

• (56)

39 Premium on early debt retirement

• 144
• Repositioning costs
• 85
• Hurricane-related costs
• 56
• Adjusted EBITDA

6,692 $ 9,042 $ 6,383 $ 3,461 $ 1,642 $ Millions of Dollars

NON-GAAP RECONCILIATIONS ADJUSTED EBITDA SLIDE 28

44

2013 2012 2011 2010 2009 Year Year Year Year Year Midstream Net Income 486 $ 60 $ 2,154 $ 391 $ 389 $ Income taxes 265 29 454 186 205 Net interest expense

• Depreciation and amortization

88 83 82 74 99 EBITDA 839 $ 172 $ 2,690 $ 651 $ 693 $ Adjustments (pre-tax): Net (gain) loss on asset sales

• (1,830)
• (15)

Impairments

• 523

6

• 70

Pending claims and settlements

• (37)
• Gain on share issuance by equity affiliate
• (135)

Hurricane-related costs

• 2
• Adjusted EBITDA

839 $ 660 $ 866 $ 651 $ 613 $ Millions of Dollars

NON-GAAP RECONCILIATIONS ADJUSTED EBITDA SLIDE 28

45

2013 2012 2011 2010 2009 Year Year Year Year Year Chemicals Net Income 986 $ 823 $ 716 $ 486 $ 228 $ Income taxes 375 366 252 194 67 EBITDA 1,361 $ 1,189 $ 968 $ 680 $ 295 $ Adjustments (pre-tax): Impairments

• 43
• Premium on early debt retirement
• 144
• Adjusted EBITDA

1,361 $ 1,376 $ 968 $ 680 $ 295 $ Millions of Dollars

NON-GAAP RECONCILIATIONS ADJUSTED EBITDA SLIDE 28

46

2013 2012 2011 2010 2009 Year Year Year Year Year Refining Net Income 1,851 $ 3,217 $ 1,529 $ (545) $ (536) $ Income taxes 1,091 2,067 902 (56) (286) Net interest expense

• (1)

(2) (1) Depreciation and amortization 685 655 664 659 641 EBITDA 3,627 $ 5,939 $ 3,094 $ 56 $ (182) $ Adjustments (pre-tax): Net (gain) loss on asset sales

• (185)

234

• Impairments
• 606

500 1,500

• Canceled projects
• 44

106

• Severance accruals
• 24

28

• Tax law impacts

(22)

• Pending claims and settlements
• 31
• 39

Hurricane-related costs

• 54
• Adjusted EBITDA

3,605 $ 6,445 $ 3,896 $ 1,690 $ (143) $ Millions of Dollars

NON-GAAP RECONCILIATIONS ADJUSTED EBITDA SLIDE 28

47

2013 2012 2011 2010 2009 Year Year Year Year Year Marketing & Specialities Net Income 790 $ 417 $ 530 $ 537 $ 519 $ Income taxes 376 250 311 331 446 Net interest expense

• (32)

(40) (44) Depreciation and amortization 103 147 153 141 132 EBITDA 1,269 $ 814 $ 962 $ 969 $ 1,053 $ Adjustments (pre-tax): Net (gain) loss on asset sales (40) (4) (40) (234) (22) Impairments

• 12

59 Pending claims and settlements (25) 62

• (56)
• Exit of business line

54

• Tax law impacts

(6)

• Adjusted EBITDA

1,252 $ 872 $ 922 $ 691 $ 1,090 $ Millions of Dollars

NON-GAAP RECONCILIATIONS ADJUSTED EBITDA SLIDE 28

48

2013 2012 2011 2010 2009 Year Year Year Year Year Corporate Net Income (431) $ (434) $ (192) $ (159) $ (140) $ Income taxes (263) (239) (97) (93) (75) Net interest expense 258 231 17 1 1 Depreciation and amortization 71 21 3

• 1

EBITDA (365) $ (421) $ (269) $ (251) $ (213) $ Adjustments (pre-tax): Impairments

• 25
• Repositioning costs
• 85
• Adjusted EBITDA

(365) $ (311) $ (269) $ (251) $ (213) $ Millions of Dollars

NON-GAAP RECONCILIATIONS SWEENY FRAC AND EXPORT EBITDA

49

Millions of Dollars First Year Sweeny Fractionator & Export Facility Estimated net income 190 $ Estimated income taxes 117 Estimated net interest expense 5 Estimated depreciation and amortization 118 Estimated EBITDA 430 $

NON-GAAP RECONCILIATIONS CPCHEM EBITDA

50

* Primarily related to premium on early debt retirement

Millions of Dollars 2012 Year CPChem Net Income 2,403 $ Income taxes 67 Net interest expense 9 Depreciation and amortization 356 CPChem EBITDA 2,835 $ Adjustments* 252 Adjusted CPChem EBITDA 3,087 $