U.S. Production Growth Wellhead Breakeven 1 vs. Drilling Activity U.S. Oil Production EIA Outlooks for U.S. Oil Production 000’S REMAINING HORIZONTAL DRILLING LOCATIONS MMBD MMBD 16 120 18 16 14 100 14 12 80 12 10 10 8 60 8 6 40 6 4 4 20 2 2 0 0 0 Permian Eagle Ford DJ Basin Williston 10 12 14 16 18 20 22 24 06 08 10 12 14 16 18 20 22 24 Over $70 2019 2018 2017 2016 $50-$70 History Forecast Range 2015 2014 2013 2012 Sub $50 2011 2010 History Forecasted Wells Drilled Through 2024 18 Investor Day Source: Chief Economist Office; BTU Analytics; IEA; EIA; IHS Energy, 2019. The use of this content was authorized in advance by IHS Markit. 1) Wellhead breakeven is for remaining horizontal drilling locations
U.S. Gulf Coast Petroleum Exports Crude Oil LPG Finished Petroleum Products 1 MMBD MMBD MMBD 2.5 3.5 6.0 Forecast Forecast Forecast 3.0 5.0 2.0 2.5 4.0 1.5 2.0 3.0 1.5 1.0 2.0 1.0 0.5 1.0 0.5 0.0 0.0 0.0 10 12 14 16 18 20 22 24 10 12 14 16 18 20 22 24 10 12 14 16 18 20 22 24 19 Investor Day Source: EIA; BTU Analytics; IHS Energy, 2019. The use of this content was authorized in advance by IHS Markit. 1) Finished Petroleum Products include finished motor gasoline, distillate, jet, kerosene, residual fuel oil, special naphtha, lubricants, waxes, petroleum coke, and miscellaneous petroleum products
Natural Gas Liquids Value Chain U.S. NGL Production 1 Global LPG Demand by Region U.S. Gulf Coast LPG Exports MMBD MMBD MMBD 12 Forecast 6 2.0 Forecast Forecast Forecast Forecast 1.8 5 10 1.6 1.4 4 8 1.2 3 6 1.0 0.8 2 4 0.6 0.4 2 1 0.2 0 0 0.0 10 12 14 16 18 20 22 24 10 12 14 16 18 20 22 24 10 12 14 16 18 20 22 24 North America Europe & CIS Permian Eagle Ford Latin America Other Asia U.S. Gulf Coast LPG Exports Marcellus & Utica Powder River & DJ Middle East & Africa India Others China 20 Investor Day Source: BTU Analytics; IHS Energy, 2019. The use of this content was authorized in advance by IHS Markit. 1) U.S. NGL production, excluding Alaska, at current recovery
U.S. Ethane Fundamentals U.S. Ethane Production 1 U.S. Ethane Demand Natural Gas and Ethane Pricing MMBD MMBD $ PER MMBTU 4.5 16 4.5 Forward Curve 2 Forecast Forecast 4.0 4.0 14 3.5 3.5 12 Rejection 3.0 3.0 10 2.5 2.5 8 2.0 2.0 6 1.5 1.5 4 1.0 1.0 2 0.5 0.5 0.0 0.0 0 10 12 14 16 18 20 22 24 10 12 14 16 18 20 22 24 10 12 14 16 18 20 22 24 Technically Recoverable Ethane Henry Hub Natural Gas Petrochemical Demand Exports Recovered Ethane Mont Belvieu Ethane 21 Investor Day Source: BTU Analytics; EIA; Morningstar; IHS Energy, 2019. The use of this content was authorized in advance by IHS Markit. 1) U.S. Ethane production, excluding Alaska 2) Forward curve as of October 15, 2019.
Strong Demand for High Density Polyethylene Global HDPE Production Petrochemical Projects 2018-2024 U.S. HDPE Domestic Chain Margin MILLION METRIC TONS MILLION METRIC TONS ETHYLENE CAPACITY CENTS PER POUND 45 70 Forecast 40 CAGR 4% 60 35 CAGR 5% 50 30 40 25 20 30 15 20 10 10 5 0 0 10 12 14 16 18 20 22 24 15 16 17 18 19 North America China HDPE Margin Other Asia Middle East & Africa Ethylene Margin Europe & CIS Latin America 2009 - 2018 Average 22 Investor Day Source: IHS Energy, 2019. The use of this content was authorized in advance by IHS Markit. Map excludes CPChem USGC II (potential 2024). Project is under development and final investment decision has not been reached.
IMO Update Northwest Europe Cracks 1 Medium Sour vs. Heavy Sweet Crude $ PER BARREL $ PER BARREL VS. BRENT Forecast 8.4 23.05 3.5 17.85 2.2 13.24 1.7 1.0 0.0 (11.51) (1.4) (3.4) (2.9) (2.6) (2.8) (23.88) (28.85) (5.1) Historical 2020 Forward Consultant 10 12 14 16 18 20 22 24 Average Curve Average Dubai, FOB - API 30.4, SUL 2.1 ULSD 3.5% Fuel Oil Cabinda, FOB - API 32.5, SUL 0.1 23 Investor Day Sources: Morningstar; IHS Energy, 2019. The use of this content was authorized in advance by IHS Markit. 1) Historical average 2009-2018. 2020 Forward curve as of October 15, 2019.
Canadian Oil Production vs. Infrastructure CAPP Production Forecast MMBD Forecast 6 5 Plus Line 3 Existing Pipeline Capacity 4 3 2 1 0 Pipeline 10 12 14 16 18 20 22 24 Capacity Western Canada Oil Production Eastern Canada Oil Production Existing Pipeline Capacity Enbridge Line 3 Trans Mountain Expansion Keystone XL 24 Investor Day Sources: Canadian Association of Petroleum Producers (CAPP)
Midstream TIM ROBERTS EXECUTIVE VICE PRESIDENT, MIDSTREAM ROSY ZUKLIC VICE PRESIDENT & CHIEF OPERATING OFFICER, PHILLIPS 66 PARTNERS Investor Day 25 Beaumont Terminal NEDERLAND, TX
Midstream Assets in 2012 18,000 miles of U.S. pipeline systems 102,000 barrels per day fractionation capacity 10 crude oil terminals 39 product terminals 26 Investor Day See appendix for footnotes
Midstream Assets in 2022 Growth since 2012 6,000 miles of U.S. pipeline systems 550,000+ barrels per day fractionation capacity 15 crude oil terminals 1,800,000 barrels per day crude export capacity 4 LPG terminals 27 Investor Day See appendix for footnotes * PSXP asset
Building a Premier Midstream Business Adjusted EBITDA $B Top-quartile safety performance 2.2 1.9 1.2 Diversified portfolio integrated with Refining and 1.0 1.0 Marketing Integrated crude system with optionality for 15 16 17 18 LTM producers, refiners and exporters PSX & PSXP DCP Adjusted Capital Expenditures and Investments Advantaged USGC storage and export solutions $B Full NGL value chain through DCP and CPChem 3.0 1.6 - 1.9 1.5 Disciplined growth underpinned by long-term, 1.5 0.8 fee-based, third-party contracts 15 16 17 18 19E Sustaining Growth 28 Investor Day See appendix for footnotes
Crude Oil System in 2012 29 Investor Day See appendix for footnotes
Crude Oil System in 2022 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 Pipeline Bluewater Project 30 Investor Day See appendix for footnotes * PSXP asset
NGL System in 2012 31 Investor Day See appendix for footnotes
NGL System in 2022 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 expansion 32 Investor Day See appendix for footnotes * PSXP asset
AdvantEdge66 BUSINESS TRANSFORMATION Predictive analytics Automation and digital field operations Pipeline Control Center BARTLESVILLE, OK Artificial Intelligence machine learning Data-driven operations Digital platforms Renton Terminal RENTON, WA 33 Investor Day
DCP Midstream North 1.4 BCFD Mid-Continent 1.6 BCFD Logistics & Marketing and Gathering & Processing Diversified portfolio in premier basins Permian 1.3 BCFD Large scale U.S. NGL producer and gas processor Integrated NGL supply for Phillips 66 Sweeny Hub DCP 2.0 transformation South 2.2 BCFD 34 Investor Day See appendix for footnotes
Phillips 66 Partners Total Return Since IPO % 300% Supports Phillips 66 Midstream growth PSXP +215% Alerian MLP Index (26%) 250% Premier MLP with competitive cost of capital 200% Portfolio of highly integrated assets 150% Stable and predictable cash flows 100% 50% Competitive and growing distribution 0% Scale and financial strength -50% Jul-13 Aug-14 Sep-15 Oct-16 Nov-17 Dec-18 Oct-19 35 Investor Day See appendix for footnotes
Phillips 66 Partners FINANCIAL STRENGTH AND FLEXIBILITY Adjusted EBITDA $B 1.2 2020 exit run-rate adjusted EBITDA of $1.5 B 1.1 0.8 Maintain strong leverage and coverage ratios, 0.5 with long-term targets of 0.3 Up to 3.5x Debt / EBITDA 15 16 17 18 LTM Greater than 1.2x coverage ratio Distribution / Common LP Unit Investment grade credit rating $ 3.40 BBB (S&P) 3.09 2.53 2.08 Baa3 (Moody’s) 1.66 $750 MM revolving credit facility 15 16 17 18 LTM 1.30x 1.28x 1.27x 1.38x Coverage 3.8x 3.8x 3.2x 2.8x Debt / EBITDA 36 Investor Day See appendix for footnotes
Phillips 66 Partners GROWTH Adjusted Capital Expenditures and Investments $B 0.9 Organic Gray Oak Pipeline 0.8 0.7 C2G Pipeline South Texas Gateway Terminal 0.5 Clemens Caverns expansion 0.4 Sweeny to Pasadena pipeline expansion 0.2 Continued sponsor support with backlog of available projects 15 16 17 18 19E 20E 37 Investor Day See appendix for footnotes
Chemicals MARK LASHIER PRESIDENT & CHIEF EXECUTIVE OFFICER, CHEVRON PHILLIPS CHEMICAL COMPANY Investor Day 38 Polyethylene Units OLD OCEAN, TX
Feedstock Advantaged Chemicals Portfolio #1 HDPE producer worldwide #2 NAO producer worldwide #2 Propylene merchant producer on U.S. Gulf Coast 39 Investor Day 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 40 Investor Day
Chevron Phillips Chemical Company 100% CPChem Adjusted EBITDA $B Industry-leading safety performance with focus on operating excellence 3.4 3.2 3.0 2.7 2.6 Proprietary technology 15 16 17 18 LTM Advantaged feedstock portfolio Polyethylene Global Operating Rates % Global marketing network 100% 98% 94% 93% 91% 88% 87% 87% 87% 86% Debottleneck opportunities 15 16 17 18 19 YTD CPChem Industry Average 41 Investor Day Source: IHS See appendix for additional footnotes
Phillips 66 Proportional Share of CPChem Adjusted EBITDA Capital Expenditures and Investments $B $B 1.3 1.0 0.8 1.7 1.6 1.5 1.3 1.3 0.4 0.3 15 16 17 18 LTM 15 16 17 18 19E Sustaining Growth 42 Investor Day See appendix for footnotes
Macro Chemicals Outlook 2019E Ethylene Production Cost Curve CENTS PER POUND Asia Coal M.E. LPG M.E. Naphtha 40 N.A. Naphtha Asia LPG Asia Naphtha Well-positioned in North America and W. Europe N.A. LPG Naphtha 20 Middle East W. Europe LPG N.A. Ethane M.E. Ethane 0 0 50 100 150 200 Expanding global middle class is Cumulative Production - Million Metric Tons increasing demand Polyethylene Global Demand MILLION METRIC TONS Global footprint reduces impact of trade 130 125 121 116 111 disputes with China 106 102 18 19 20 21 22 23 24 HDPE LDPE LLDPE 43 Investor Day Source: IHS
Sustainability Enhancing efforts to eliminate plastic pellet spills by joining Operation Clean Sweep Blue Continue to combat plastic waste and improve perception of plastics Founding member of Alliance to End Plastic Waste 44 Investor Day
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 no later than 2021 with startup in late 2024 Ras Laffan Petrochemicals Project CPChem 30% equity interest 1,900 kMTA ethylene cracker Two PE units with 1,680 kMTA combined capacity FID in late 2021 with planned startup in 2025 U.S. Gulf Coast II signing ceremony WASHINGTON D.C. 45 Investor Day
Refining ROBERT HERMAN EXECUTIVE VICE PRESIDENT, REFINING Investor Day 46 Billings Refinery BILLINGS, MT
Diversified Refining Portfolio Central Corridor 515 MBD West Coast 364 MBD Atlantic Basin / Europe 537 MBD Gulf Coast 764 MBD 47 Investor Day See appendix for footnotes
Enhancing Returns Adjusted EBITDA $B Top-quartile HSE performance 5.7 4.8 4.7 2.7 1.4 Strong cash generation 15 16 17 18 LTM Capital and cost discipline Capital Expenditures and Investments $B High-return capital projects 1.1 1.1 1.0 0.9 0.8 Advantaged feedstocks 15 16 17 18 19E Sustaining Return 48 Investor Day See appendix for footnotes
Refining Portfolio Competitiveness Peer Comparison % Distillate Canadian Coking Capacity / High distillate yield Production / Imports / Crude Capacity Throughput Crude Runs Largest purchaser of advantaged Canadian crude Industry-leading coking capacity Low yield of high-sulfur fuel oil 38 38 37 34 32 27 25 Well-positioned for IMO 2020 19 19 17 16 11 10 8 2 PSX PSX PSX 49 Investor Day Peer comparison as of 2019. See appendix for footnotes.
North America Crude Feedstock Flexibility Crude Feedstock Slate % TOTAL CRUDE RUNS 17% 22% 22% 22% 22% 21% 23% 27% 23% 24% 23% 24% 27% 24% 16% 19% 17% 18% 20% 18% 17% 40% 37% 37% 35% 36% 35% 34% 13 14 15 16 17 18 19 YTD Other Foreign (non-Canadian) Canadian Other Domestic (non-sweet) Sweet Domestic 50 Investor Day
Maintain Cost Discipline U.S. Industry Benchmarking Performance SOLOMON ASSOCIATES Top quartile non-energy operating cost 1 st Quartile Maintenance and personnel costs trending to top quartile in industry 2 nd Quartile Cost efficiencies and improved productivity via AdvantEdge66 Artificial Intelligence machine learning 3 rd Quartile Advanced analytics Digital optimization 4 th Quartile Non-Energy Cash Maintenance Index Personnel Cost Index Opex PSX 2014 PSX 2016 PSX 2018 51 Investor Day
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 generation Optimizing long-term value capture across the entire value chain Lake Charles Refinery dock WESTLAKE, LA 52 Investor Day
Enhancing Returns THROUGH CAPITAL INVESTMENTS Humber Refinery NORTH LINCOLNSHIRE, UK 2019 Lake Charles isomerization unit Borger diesel recovery Wood River LSFO hydrotreater Bayway LSFO hydrotreater High-return, quick payout projects 2020 Sweeny FCC modernization Humber UCO renewable diesel Returns > 30% Ponca City FCC yield improvement San Francisco renewable diesel 2021 Annual return capex Lake Charles coker feed flexibility ~$500 million Wood River distillate maximization 2023 Ferndale renewable diesel processing 53 Investor Day See appendix for footnotes
Marketing & Specialties BRIAN MANDELL EXECUTIVE VICE PRESIDENT, MARKETING & COMMERCIAL Investor Day 54 Phillips 66 Branded Marketing Site CAMDEN COUNTY, MO
Marketing & Specialties 2,200,000 barrels per day clean products sales volume 9,150 global outlets 13,000 barrels per day finished lubricants production Aviation brand 55 Investor Day See appendix for footnotes
Enhancing Returns Adjusted EBITDA $B High-return, low-capital business 1.8 1.6 1.5 1.4 1.2 Refining product placement 15 16 17 18 LTM Fuel brands reimaging Integration through equity partnerships Capital Expenditures and Investments $B Renewable diesel 0.5 Integrated digital platform 0.1 0.1 0.1 0.1 15 16 17 18 19E Base capital Marketing joint venture 56 Investor Day See appendix for footnotes
Secure Product Placement United States ~3,700 sites reimaged since program inception ~5,600 sites implemented mobile pay Direct consumer engagement Expanding partnerships with private labels Europe Proven low-cost, high-volume model Reimaging and high-grading the JET brand Adding 20 - 30 new JET sites per year 57 Investor Day See appendix for footnotes
West Coast Marketing Joint Venture 50 / 50 joint venture with large wholesale / retail operator Proven retail operational expertise Participate in retail fuel margins and store sales $250 - $325 MM capital investment $50 - $60 MM incremental adjusted EBITDA per year Total Site Count 680 Total Volume 74 MBD Site concentration 58 Investor Day See appendix for footnotes
Clean Product Export Capability U.S. Refinery Clean Product Export Capacity MBD 150 700 50 Expand clean products export capability 80 100 550 160 80 Leverage optionality to maximize value 110 Expand sales into new global markets 460 360 Optimal global storage tank portfolio Current Additions 2024 Additional access to 3 rd party export capacity Capacity Capacity Gulf Coast West Coast East Coast 59 Investor Day
IMO 2020 Strategically positioned for IMO 2020 transition Utilize global market presence to maximize returns Optimize refinery feedstock selection Capitalize on distillate production for bunker fuel blending Phillips 66 IMO opportunities 60 Investor Day
Renewable Diesel Portfolio approach for renewable diesel production Humber UCO renewable diesel project San Francisco renewable diesel production Ferndale renewable diesel processing Offtake agreement with Ryze Renewables Leverage Marketing position to capture full value chain margin 61 Investor Day
AdvantEdge66 BUSINESS TRANSFORMATION Go-to-Market Value Enablers Efficiency Enhanced Mobile Pay platform Develop Artificial Intelligence Enhance optimization tools machine learning Improved digital customer experience Automate the back-office Optimized payment systems 62 Investor Day
Financial Update KEVIN MITCHELL EXECUTIVE VICE PRESIDENT, FINANCE & CHIEF FINANCIAL OFFICER Investor Day 63 Phillips 66 Headquarters HOUSTON, TX
Financial Strategy Phillips 66 Headquarters HOUSTON, TX 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 64 Investor Day
Financial Strength Equity and Debt $B UNLESS NOTED Flexibility to execute strategy through the cycle Investment grade credit ratings 30% 29% 31% 27% 27% PSX: A3 (Moody’s), BBB+ (S&P) PSXP: Baa3 (Moody’s), BBB (S&P) 26% 25% 25% 25% 22% Well-laddered debt maturities 27.4 27.2 27.1 23.9 23.7 $8.0 B total liquidity as of September 2019 Debt Maturity Profile $B 11.9 11.2 10.1 10.1 8.9 5.0 2.1 3.2 2.0 0.5 0.8 1.1 1.0 0.8 0.5 0.3 0.0 15 16 17 18 3Q19 20 21 22 23 24 25-29 30-34 35-39 40-44 45+ PSX Equity PSX Debt PSX Senior Notes PSXP Senior Notes PSX Noncontrolling Interest PSXP Third-Party Debt PSX Term Loan PSXP Revolving Credit Facility Attributable to PSXP PSX Revolving Credit Facility PSX Debt-to-Capital, excluding PSXP Consolidated Debt-to-Capital 65 Investor Day See appendix for footnotes
EBITDA and Returns Adjusted Return on Capital Employed % AFTER-TAX Peer-leading ROCE Strong EBITDA generation Peer Avg 16% 16% 14% 8% EBITDA enhancement from capital investments 5% and business transformation initiatives 15 16 17 18 LTM 2022 Mid-Cycle Adjusted EBITDA Adjusted EBITDA $B $B 11 10.1 9.5 8.6 5.9 9 4.7 15 16 17 18 LTM Mid-Cycle Midstream Refining M&S Mid-Cycle 19 22 66 Investor Day Adjusted ROCE LTM is based on 3Q 2018 through 2Q 2019 due to peer data availability. Adjusted ROCE is defined as (Adjusted NI + after-tax interest expense + minority interest) / (Average total debt + average equity). Source: Company filings adjusted to facilitate comparisons of operating performance. See appendix for additional footnotes.
Cash Generation Free Cash Flow Yield Cash From Operations % $B 18 8.0 7.6 7.3 7.0 16 5.7 6.0 14 5.0 12 12.99 Realized Crack 3.6 4.0 11.76 $ per barrel 9.4% 11.84 10 3.0 3.0 6.3% 9.13 8 2.0 3.4% 6.99 6 1.0 4 - 15 16 17 18 LTM PSX S&P 100 Avg Peer Avg 67 Investor Day Free cash flow yield is defined as (Net cash provided by operating activities excluding working capital adjustments less capital expenditures and investments) / (June 30, 2019 market cap). Source: Bloomberg. Based on 3Q 2018 through 2Q 2019. See appendix for additional footnotes.
Disciplined Capital Allocation 2020 Sources and Uses of Cash Fund sustaining capital to maintain asset integrity $B Committed to a secure, competitive and growing dividend ~1 1.6 - 1.7 Investing in growth projects with attractive returns 6 7 2.0 - 2.5 Intrinsic value approach to share repurchases 1.5 - 2.5 Long-term: 60% reinvestment and 40% shareholder distributions 2020 Sust. FCF Dividends Growth Share Mid-Cycle Capex Capex Repurch. CFO Adjusted Capital Allocation Peer Yield Comparison $B % 8.7 8% 8% 8.4 6.4 6% 5.2 4% 4% 4.8 4% 4% 4% 2% 15 16 17 18 LTM PSX S&P 100 Avg Peer Avg Reinvestment Distributions Dividend Yield Share Repurchase/Share Yield 68 Investor Day Peer yield comparison is based on share price as of June 30, 2019; dividend yield is annualized latest dividend; share repurchase / share yield is based on 3Q18 - 2Q19 spend. Source: Bloomberg. See appendix for additional footnotes.
Adjusted Capital Expenditures 2019E Adjusted Capital Spending Adjusted Capital Expenditures and Investments $B 4.3 3.3 - 3.6 3.0 - 3.5 2.8 2.6 Midstream Sustaining PSX 1.8 Refining and Marketing Midstream Midstream PSXP Marketing PSXP Refining 15 16 17 18 19E 20E Sustaining Growth 69 Investor Day See appendix for footnotes
Distributions Annual Dividend $ PER SHARE Secure, competitive and growing dividend 12.5% increase in 2Q19 to $0.90 per share 3.50 3.10 25% CAGR with nine increases since May 2012 2.73 2.45 2.18 Committed to intrinsic value approach to 15 16 17 18 19 share repurchases Cumulative Distributions Authorized additional $3 B program, total $15 B $B authorization 24.9 22.5 Repurchased / exchanged 32% of shares initially 16.4 outstanding 13.4 11.1 8.4 Source of shareholder value 3.7 13 14 15 16 17 18 19 YTD Share Repurchases and Exchanges Dividends 70 Investor Day See appendix for footnotes
Phillips 66 Partners STRATEGIC FIT Total Return Since IPO % 250% PSXP: 200% Competitive cost of capital +215% 150% 100% Strong partnership fundamentals 50% 0% AMZ: Robust growth profile (26%) -50% High distribution coverage Oct-19 Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18 Jul-19 Solid financial position Total Return Year-to-Date % IDR Elimination Midstream segment valuation transparency 50% PSXP: +42% Additional source of capital 25% Phillips 66 owns ~75% of LP common units AMZ: Reinvestment +5% 0% Dec-18 Feb-19 Apr-19 Jun-19 Aug-19 Oct-19 71 Investor Day See appendix for footnotes
Financial Flexibility Strong and growing cash flow generation from diverse and integrated portfolio Peer-leading balance sheet with additional capacity Highest credit rating among peers Low debt to capital ratio Significant liquidity PSXP is best performing sponsored MLP and supports Midstream growth Returned 120% of initial Phillips 66 market cap in cumulative distributions since inception Lake Charles isomerization unit LAKE CHARLES, LA 72 Investor Day See appendix for footnotes
Closing GREG GARLAND CHAIRMAN & CHIEF EXECUTVE OFFICER Investor Day 73 Sweeny Fracs 2, 3 and 4 construction OLD OCEAN, TX
Key Messages Mid-Cycle Adjusted EBITDA $B Operating safely with technology-enabled cost efficiencies Growing Midstream and Chemicals Enhancing returns in Refining and Marketing & Specialties 11 Secure, competitive and growing dividend with commitment to share repurchases 9 Building capability, pursuing excellence and doing the right thing Mid-Cycle Midstream Refining M&S Mid-Cycle 19 22 74 Investor Day See appendix for footnotes
Compelling Investment Total Shareholder Return % 340% PSX +328% OPERATING EXCELLENCE 300% Peers +163% 260% S&P 100 +148% GROWTH 220% RETURNS 180% 140% DISTRIBUTIONS 100% 60% HIGH-PERFORMING ORGANIZATION 20% Reinvestment -20% Oct-19 May-12 May-13 May-14 May-15 May-16 May-17 May-18 May-19 75 Investor Day See appendix for footnotes
Clifton Ridge Marine Terminal SULPHUR, LA
2019 Sensitivities Annual EBITDA ($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 Increase in Chain Margin (Ethylene, Polyethylene, NAO) 65 Worldwide Refining $1/BBL Increase in Gasoline Margin 350 $1/BBL Increase in Distillate Margin 300 Impacts due to Actual Crude Feedstock Differing from Feedstock Assumed in Market Indicators: $1/BBL Widening WTI / WCS Differential (WTI less WCS) 100 $1/BBL Widening LLS / WTI Differential (LLS less WTI) 70 $1/BBL Widening LLS / Maya Differential (LLS less Maya) 60 $1/BBL Widening WTI / WTS Differential (WTI less WTS) 30 $1/BBL Widening ANS / WTI Differential (ANS less WTI) 25 10 ¢/MMBtu Increase in Natural Gas price (15) 77 Investor Day Sensitivities are independent and only valid within a limited price range
Value Chain 78 Investor Day
Midstream Organic Growth EXPECTED GROSS CAPITAL OWNERSHIP PSX PROJECT START-UP CAPACITY ($MM) (%) Beaumont Terminal expansion phase IV 1Q 2020 2.2 MMB 80 100 Beaumont Terminal Dock IV 1 3Q 2020 200 MBD 70 100 Sweeny Fractionators 2 and 3 4Q 2020 2 x 150 MBD 1,300 100 2 Sweeny Fractionator 4 2Q 2021 1 x 150 MBD 500 100 Liberty Pipeline 1H 2021 400 MBD 3 1,600 50 Red Oak Pipeline 1H 2021 1,000 MBD 3 2,500 50 EXPECTED GROSS CAPITAL OWNERSHIP PSXP PROJECT START-UP CAPACITY ($MM) (%) Bayou Bridge Pipeline Completed 2Q 2019 480 MBD 750 40 Lake Charles products pipeline Completed 2Q 2019 50 MBD 25 100 Lake Charles isomerization unit Completed 3Q 2019 25 MBD 200 99 Gray Oak Pipeline 4Q 2019 4 900 MBD 2,700 42.25 Sweeny to Pasadena products expansion 5 2Q 2020 80 MBD 70 100 South Texas Gateway Terminal 6 Mid 2020 8.5 MMB 625 25 Clemens Caverns expansion 7 4Q 2020 7 MMB 150 100 C2G Pipeline Mid 2021 240 MBD 335 100 Projects expected to have typical Midstream EBITDA build multiples (6x - 8x) 1) Capacity expanding from 600 MBD to 800 MBD 2) DCP has an option to purchase 30% of Fracs 2 and 3; 3) Commercial operating capacity is likely to vary from the specified instantaneous design capacity, 79 Investor Day depending on the specific operating parameters for a given system (e.g., crude types, batching frequency and system complexity); 4) Initial service; 5) 300 MB storage and 80 MBD pipeline capacity expansion; 6) 8.5 MMB storage and up to 800 MBD export capacity, includes two deepwater VLCC docks; 7) Expanding from 9 MMB to 16 MMB.
PSXP Gray Oak, South Texas Gateway Gray Oak Pipeline Crude oil pipeline from Permian and Eagle Ford to Texas Gulf Coast Expected initial service 4Q 2019 900 MBD West Texas crude capacity 42.25% PSXP ownership South Texas Gateway Terminal Two deep water docks with up to 800 MBD throughput capacity Expected start up mid 2020 8.5 MMB storage capacity 25% PSXP ownership Gray Oak Pipeline Conan Station commencing line fill LOVING COUNTY, TX 80 Investor Day
Liberty, 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 Red Oak Pipeline From West Texas and Cushing, Oklahoma, to the Texas Gulf Coast Initial service expected 1H 2021 Primarily 30-inch pipeline 50% PSX ownership 81 Investor Day
Sweeny Hub Sweeny Hub Expansion Adding 450 MBD fractionation capacity by 2Q 2021 Increasing Clemens Storage to 16 MMB by 4Q 2020 Secured y-grade feedstock supply agreements with firm volume commitments Reduces cost of supply for 200 MBD Freeport LPG Export Terminal Provides ethane supply for growing U.S. Gulf Coast petrochemical complex Clemens to Gregory (C2G) Pipeline New 16-inch ethane pipeline to Gregory, Texas near Corpus Christi Expected start up in mid 2021 Fractionators 2 and 3 under construction SWEENY, TX Supplies Corpus Christi area petrochemical facilities 82 Investor Day Combined, Fracs 1, 2, 3 and 4 will have 550 MBD total capacity. DCP has an option to purchase 30% of Fracs 2 and 3.
PSXP Ownership Structure PSXP Public Non-economic general Common partner interest and 75% Unitholders limited partner interest 25% limited partner interest (NYSE: PSXP) Operating Subsidiaries Joint Ventures 83 Investor Day As of August 1, 2019. Public also owns 13.8 MM convertible preferred units.
Footnotes General Information disclosed is as of December 31 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 CPChem. Date Conventions 19 YTD is as of September 30, 2019, or the nine-month period ended September 30, 2019, as applicable; except as otherwise noted. 3Q19 is as of September 30, 2019; except as otherwise noted. LTM represents last twelve months actual data from 4Q 2018 through 3Q 2019, as applicable; except as otherwise noted. 19E represents 2019 current year estimate using most recent forecast. 20E represents forward looking estimate for that period. Forecasted and Estimated Adjusted EBITDA We are unable to present reconciliations of various forecasted and estimated adjusted EBITDA included in this presentation because certain elements of net income, including interest, depreciation and income taxes, are not reasonably available. Together, these items generally result in EBITDA being significantly greater than net income. Non-GAAP Reconciliations Regarding slides 15, 16, 28, 36, 41, 42, 48, 56, 65, 66, 67, 68, 69, 74, see following slides for accompanying non-GAAP reconciliations. 84 Investor Day
Footnotes Maps Maps, images and drawings are for informational purposes only and may not be to scale. Slides 8, 9, 10, 26, 27, 29, 30, 31, 32, 34, 39, 47, 50, 55 85 Investor Day
Footnotes Slide 7, 70 Total Distributions include 2014 PSPI share exchange and are through September 30, 2019. Dividend CAGR calculated from initial dividend of $0.20 per share in 3Q 2012 to last increase of $0.90 per share in 2Q 2019. Slide 11 Industry averages are from: Phillips 66 – American Fuel & Petrochemical Manufacturers (AFPM) refining data, Chevron Phillips Chemical Company LLC (CPChem) – American Fuel & Petrochemical Manufacturers (AFPM) chemicals data, DCP Midstream, LLC (DCP Midstream) – Gas Processors Association (GPA). 2019 TRR for Phillips 66, CPChem, and DCP Midstream through September 30, 2019. Industry safety metrics as of 2017. Source: Bureau of Labor Statistics. YTD Refining Crude Capacity Utilization through September 30, 2019. Industry refining crude capacity utilization through July 2019. Source: EIA. Slide 12 Sulfur oxides (SOx), nitrous oxides (NOx) and particulate matter (PM). Slide 14 The “Total Enhancements” amount represents estimated EBITDA uplift versus a baseline year of 2017. The “Mid - Cycle EBITDA Uplift” amount represents estimated actual mid-cycle EBITDA uplift after consideration for inflation and market movements in a mid-cycle environment. 86 Investor Day
Footnotes Slides 15, 66, 74 2019 mid-cycle adjusted EBITDA calculated using the following methodology: average adjusted EBITDA from 2012 to 2018 for Refining, Marketing and Specialties, and Corporate; 2018 exit run-rate excluding market impacts plus completed 2019 growth projects for Midstream; average adjusted EBITDA from 2012 to 2018 plus 50% proportional share of estimated EBITDA from U.S. Gulf Coast I project for Chemicals. Refining growth EBITDA calculated using average 2016 to 2019 growth capital and assuming 30% returns. Marketing and Specialties growth EBITDA calculated using West Coast Marketing joint venture incremental EBITDA and average 2016 to 2019 growth capital and assuming 30% returns. Midstream growth EBITDA calculated using project timeline, capital expenditures, and build multiples set forth on slide 80 and previously disclosed projects. Mid-cycle 2020, 2021, and 2022 adjusted EBITDA calculated using 2019 mid-cycle adjusted EBITDA and growth EBITDA. 2019 and 2022 mid-cycle CFO calculated using mid-cycle adjusted EBITDA for the respective year and adjusted for estimated interest, taxes and noncontrolling interest for growth projects. These forecasted annual EBITDA contributions cannot be reconciled to net income, the nearest GAAP measure, because certain elements of net income, such as interest, depreciation and taxes, were not used in developing the forecasts and therefore are not readily available. Together, these items generally result in EBITDA being significantly greater than net income. Slide 16 Mid-cycle CFO calculated using mid-cycle adjusted EBITDA and adjusted for estimated interest, taxes and noncontrolling interest for growth projects. Total Distributions include 2014 PSPI share exchange and are through September 30, 2019. JV Capital includes Phillips 66 share of DCP Midstream’s, CPChem’s and WRB’s self-funded capital spending. $20.8 B initial market cap as of May 1, 2012 compared to $24.9 B cumulative distributions including exchanges through September 30, 2019. Slides 18-24 Statistics and forecasts as of October 15, 2019, except as otherwise noted. 87 Investor Day
Footnotes Slide 26 As of December 31, 2012. Slide 27 Statistics include assets owned by PSXP. 15 crude oil terminals includes rail racks. Forward-looking fractionation capacity and crude exports are based on 100% ownership. Slide 28 2015 capital expenditures exclude $1.5 B investment in DCP Midstream. 2019E adjusted capital expenditures and investments exclude $0.4 B of growth capital cash funded by certain of our Gray Oak joint venture partners. Slide 29 As of December 31, 2012. Slide 34 Map BCFD represents billion cubic feet per day processing capacity. Slide 35, 71 Chart reflects total unitholder return July 22, 2013 to October 25, 2019. Distributions assumed to be reinvested in units. PSXP compared against Alerian MLP Index (AMZ). Source: Bloomberg Slide 36 Adjusted EBITDA and Distributable Cash Flow shown are attributable to PSXP. Slide 37 2019E and 2020E adjusted capital expenditures and investments exclude $0.4 B and $0.1 B, respectively, of growth capital expected to be cash funded by certain of our Gray Oak joint venture partners. 88 Investor Day
Footnotes Slide 39 High density polyethylene (HDPE), Normal alpha olefins (NAO). Metrics shown net of JV capacity and sourced from IHS, Nexant, and company filings. Slide 42 Represents Phillips 66’s proportional share of CPChem’s adjusted EBITDA, as well as self -funded capital expenditures and investments. Slide 47 Capacities as of January 1, 2019. Slide 49 Comparison is to independent refining peer group: HFC, MPC, PBF, VLO. Distillate Production / Throughput: Distillate % calculated using distillate yield and total throughput for 1H 2019. Source: company disclosures. Canadian Imports / Crude Runs: Canadian Imports % using Canadian Imports through May 2019 and crude runs for 1H 2019. Source: E.I.A., company disclosures. MPC PF reflects pro forma capacity and production with Andeavor acquisition, including Western Refining. Coking Capacity / Crude Capacity: Coking capacity % calculated using coking capacity and total crude capacity. Phillips 66 coking capacity includes 50% WRB, 18.75% MiRO. Source: 2019 Oil & Gas Journal. Slide 53 PSXP owns 99 percent of the Lake Charles isomerization unit. Slide 55 Site count and volumes as of December 31, 2018. Slide 57 Sites reimaged and implementing mobile pay as of September 30, 2019. 89 Investor Day
Footnotes Slide 58 EBITDA estimate based on Phillips 66 proportional share of West Coast Marketing joint venture. Slide 65 Total debt includes capital leases and is net of issuance premiums and discounts. Slides 66, 67, 68 Peer average includes Delek US Holdings, Inc., HollyFrontier Corporation, Marathon Petroleum Corporation, PBF Energy Inc., Valero Energy Corporation, Enterprise Products Partners L.P., ONEOK, Inc., Targa Resources Corp., Celanese Corporation, Eastman Chemical Company, Huntsman Corporation and Westlake Chemical Corporation. Slide 67 Realized crack is Phillips 66 worldwide realized crack. Slide 68 2015 capital expenditures include $1.5 B investment in DCP Midstream. 2020 mid-cycle CFO calculated using 2020 mid-cycle adjusted EBITDA and adjusted for estimated interest, taxes and noncontrolling interest for growth projects. Slide 69 2015 capital expenditures exclude $1.5 B investment in DCP Midstream. 2019E and 2020E adjusted capital expenditures and investments exclude $0.4 B and $0.1 - $0.5 B, respectively, of growth capital expected to be cash funded by joint venture partners. 90 Investor Day
Footnotes Slide 72 $20.8 B initial market cap as of May 1, 2012 compared to $24.9 B cumulative distributions including exchanges through September 30, 2019. Slide 75 Chart reflects total shareholder return May 1, 2012 to October 25, 2019. Dividends assumed to be reinvested in stock. Source: Bloomberg. Peer average includes Delek US Holdings, Inc., HollyFrontier Corporation, Marathon Petroleum Corporation, PBF Energy Inc., Valero Energy Corporation, Enterprise Products Partners L.P., ONEOK, Inc., Targa Resources Corp., Celanese Corporation, Eastman Chemical Company, Huntsman Corporation, LyondellBasell Industries, and Westlake Chemical Corporation. 91 Investor Day
Non-GAAP Reconciliation SLIDES 15, 66, 74 Millions of Dollars 2012 2013 2014 2015 2016 2017 2018 3Q19 LTM Reconciliation of Phillips 66 Net Income to Adjusted EBITDA Phillips 66 net income $ 4,131 3,743 4,797 4,280 1,644 5,248 5,873 4,883 Less: — — — — — Income from discontinued operations 48 61 706 Plus: Income tax expense (benefit) 2,473 1,844 1,654 1,764 547 (1,693) 1,572 1,147 Net interest expense 231 258 246 283 321 407 459 416 Depreciation and amortization 906 947 995 1,078 1,168 1,318 1,356 1,338 Phillips 66 EBITDA 7,693 6,731 6,986 7,405 3,680 5,280 9,260 7,784 Special Item Adjustments (pre-tax): — — Impairments by equity affiliates 88 390 95 64 28 75 — — — — — — — Premium on early retirement of debt 144 Pending claims and settlements 56 (25) (21) 30 (115) (57) 21 (21) — — — — — — — Repositioning costs 85 — — — — — — — Tax law impacts (28) — — — — Certain tax impacts (32) (23) (119) (4) — — — — — — — Gain on consolidation of business (423) — — — — — — Gain on asset sales (189) (40) — — — — — — — Exit of a business line 54 — — — — — — — Equity affiliate ownership restructuring 33 — — — — — — — Recognition of deferred logistics commitments 30 — — — — — — — Railcar lease residual value deficiencies and related costs 40 — — — — — Asset dispositions (270) (280) (17) — — — — — Impairments 1,197 131 853 — — — — — Lower-of-cost-or-market inventory adjustments 45 53 42 — — — — Pension settlement expense 80 83 67 18 — — — — — — Hurricane-related costs 56 210 — — — — — — — U.S. tax reform (16) Phillips 66 EBITDA, Adjusted for Special Items 9,042 6,692 6,959 7,678 3,731 5,134 9,241 8,730 Other Adjustments (pre-tax): Proportional share of selected equity affiliates income taxes 84 93 117 86 79 70 102 88 Proportional share of selected equity affiliates net interest 38 80 161 189 178 123 167 171 Proportional share of selected equity affiliates depreciation and amortization 641 689 721 752 798 777 912 937 EBITDA attributable to Phillips 66 noncontrolling interests (13) (24) (45) (73) (132) (229) (361) (391) Phillips 66 Adjusted EBITDA $ 9,792 7,530 7,913 8,632 4,654 5,875 10,061 9,535 92 Investor Day
Non-GAAP Reconciliation SLIDES 15, 28, 66, 74 Millions of Dollars 2012 2013 2014 2015 2016 2017 2018 3Q19 LTM Reconciliation of Midstream Pre-Tax Income to Adjusted EBITDA Midstream pre-tax income $ 88 750 851 147 402 638 1,181 658 Plus: — — — — — — — Interest revenue (1) Depreciation and amortization 83 88 91 127 215 299 320 304 Midstream EBITDA 171 838 942 274 617 936 1,501 962 Special Item Adjustments (pre-tax): — — — — Pending claims and settlements (37) (45) (37) 21 — — — — — — Impairments 523 853 — — — — Impairments by equity affiliates 366 6 28 75 — — — — — — Hurricane-related costs 2 10 — — — — — — — Lower-of-cost-or-market inventory adjustments 2 — — — — — — — Asset disposition (30) — — — — — — — Equity affiliate ownership restructuring 33 — — — — Pension settlement expense 9 12 9 2 Midstream EBITDA, Adjusted for Special Items 659 838 944 619 611 921 1,559 1,892 Other Adjustments (pre-tax): — Proportional share of selected equity affiliates income taxes 4 3 (2) 2 1 1 1 Proportional share of selected equity affiliates net interest 132 156 165 176 170 121 131 128 Proportional share of selected equity affiliates depreciation and amortization 181 194 207 225 244 191 207 221 Midstream Adjusted EBITDA $ 972 1,192 1,319 1,018 1,027 1,234 1,898 2,242 93 Investor Day
Non-GAAP Reconciliation SLIDES 15, 42, 66, 74 Millions of Dollars 2012 2013 2014 2015 2016 2017 2018 3Q19 LTM Reconciliation of Chemicals Pre-Tax Income to Adjusted EBITDA Chemicals pre-tax income $ 1,189 1,361 1,632 1,315 839 716 1,025 881 Plus: — — — — — — — — None Chemicals EBITDA 1,189 1,361 1,632 1,315 839 716 1,025 881 Special Item Adjustments (pre-tax): — — — — Impairments by equity affiliates 88 24 89 64 — — — — — — — Impairments 43 — — — — — — — Premium on early retirement of debt 144 — — — — — — — Hurricane-related costs 175 — — — — — — Lower-of-cost-or-market inventory adjustments 3 42 Chemicals EBITDA, Adjusted for Special Items 1,376 1,361 1,723 1,339 928 955 1,025 923 Other Adjustments (pre-tax): Proportional share of selected equity affiliates income taxes 79 93 111 91 77 68 100 86 Proportional share of selected equity affiliates net interest 13 10 9 7 8 4 38 42 Proportional share of selected equity affiliates depreciation and amortization 213 246 258 264 285 307 422 427 Chemicals Adjusted EBITDA $ 1,681 1,710 2,101 1,701 1,298 1,334 1,585 1,478 94 Investor Day
Non-GAAP Reconciliation SLIDES 15, 48, 66, 74 Millions of Dollars 2012 2013 2014 2015 2016 2017 2018 3Q19 YTD 3Q19 LTM Reconciliation of Refining Pre-Tax Income to Adjusted EBITDA Refining pre-tax income $ 5,089 2,782 2,467 3,659 436 2,076 4,535 1,641 3,642 Plus: Depreciation and amortization 655 685 704 738 769 821 840 641 852 Refining EBITDA 5,744 3,467 3,171 4,397 1,205 2,897 5,375 2,282 4,494 Special Item Adjustments (pre-tax): — — Pending claims and settlements 31 23 30 (70) (51) (21) (21) — — — — — — — — Tax law impacts (22) — — — — — Certain tax impacts (32) (23) (6) (4) — — — — — — — Hurricane-related costs 54 24 — — — — — — — — Gain on consolidation of business (423) — — — — — — — — Recognition of deferred logistics commitments 30 — — — — — — — — Railcar lease residual value deficiencies and related costs 40 — — — — — Asset dispositions (145) (8) (17) (17) — — — — — — — — Gain on asset sales (185) — — — — — — — Impairments 606 131 — — — — — — — Lower-of-cost-or-market inventory adjustments 40 53 — — — — — Pension settlement expense 53 53 43 11 Refining EBITDA, Adjusted for Special Items 6,250 3,445 3,220 4,525 1,173 2,477 5,412 2,244 4,463 Other Adjustments (pre-tax): — Proportional share of selected equity affiliates income taxes 5 (4) 3 (3) 1 1 1 1 — — Proportional share of selected equity affiliates net interest (118) (95) (19) (3) (6) (3) (4) Proportional share of selected equity affiliates depreciation and amortization 236 237 245 252 257 268 272 210 278 Refining Adjusted EBITDA $ 6,373 3,583 3,449 4,774 1,430 2,743 5,679 2,452 4,738 95 Investor Day
Non-GAAP Reconciliation SLIDES 15, 56, 66, 74 Millions of Dollars 2012 2013 2014 2015 2016 2017 2018 3Q19 LTM Reconciliation of Marketing & Specialties Pre-Tax Income to Adjusted EBITDA Marketing and Specialties pre-tax income $ 863 1,327 1,475 1,652 1,261 1,020 1,557 1,645 Plus: — — — — — — — Interest revenue (2) Depreciation and amortization 147 103 95 97 107 112 114 105 Marketing & Specialties EBITDA 1,010 1,430 1,570 1,747 1,368 1,132 1,671 1,750 Special Item Adjustments (pre-tax): — — — — — — Asset dispositions (125) (242) — — — — — — Gain on asset sales (4) (40) — — — — — Pending claims and settlements 62 (25) (44) — — — — — — — Exit of a business line 54 — — — — — — — Tax law impacts (6) — — — — — — — Certain tax impacts (113) — — — — — — — Hurricane-related costs 1 — — — — Pension settlement expense 11 11 9 3 Marketing & Specialties EBITDA, Adjusted for Special Items 1,068 1,413 1,401 1,516 1,368 1,144 1,567 1,753 Other Adjustments (pre-tax): — — — — — — — — Proportional share of selected equity affiliates income taxes — Proportional share of selected equity affiliates net interest 11 9 6 6 1 4 5 Proportional share of selected equity affiliates depreciation and amortization 11 12 11 11 12 11 11 11 Marketing & Specialties Adjusted EBITDA $ 1,090 1,434 1,418 1,533 1,380 1,156 1,582 1,769 96 Investor Day
Non-GAAP Reconciliation SLIDES 15, 66, 74 Millions of Dollars 2012 2013 2014 2015 2016 2017 2018 Reconciliation of Corporate & Other Pre-Tax Loss to Adjusted EBITDA Corporate and Other pre-tax loss $ (673) (694) (680) (729) (747) (895) (853) Plus: Net interest expense 231 258 246 285 321 408 459 Depreciation and amortization 21 71 105 116 77 86 82 Corporate & Other EBITDA (421) (365) (329) (328) (349) (401) (312) Special Item Adjustments (pre-tax): — — — — — — Impairments 25 — — — — — — Repositioning costs 85 — — — — — — Pending claims and settlements 31 — — — — — — U.S. tax reform (16) — — — — Pension settlement expense 7 7 6 Corporate & Other EBITDA, Adjusted for Special Items (311) (365) (329) (321) (349) (363) (322) Other Adjustments (pre-tax): — — — — — — — None Corporate & Other Adjusted EBITDA $ (311) (365) (329) (321) (349) (363) (322) 97 Investor Day
Non-GAAP Reconciliation SLIDES 16, 28, 48, 56, 68, 69 Millions of Dollars Capital Expenditures and Investments 2012 2013 2014 2015 2016 2017 2018 3Q19 LTM Midstream Growth $ 548 429 2,021 2,801 1,267 597 1,360 1,645 Sustaining 159 168 152 1,656 186 174 188 227 Total 707 597 2,173 4,457 1,453 771 1,548 1,872 Refining Growth 85 164 255 201 344 323 267 372 Sustaining 650 656 783 868 805 530 559 574 Total 735 820 1,038 1,069 1,149 853 826 946 Marketing & Specialties Growth 47 139 375 66 47 62 71 65 Sustaining 72 87 64 56 51 46 54 71 Total 119 226 439 122 98 108 125 136 Corporate & Other — — Growth 11 13 10 3 6 7 Sustaining 140 125 110 106 141 100 134 206 Total 140 136 123 116 144 100 140 213 Total Consolidated Growth 680 743 2,664 3,078 1,661 982 1,704 2,089 Sustaining 1,021 1,036 1,109 2,686 1,183 850 935 1,078 Adjusted Capital Spending 1,701 1,779 3,773 5,764 2,844 1,832 2,639 3,167 — — — — — — — Capital Spending Funded By Gray Oak Joint Venture Partners 422 Total 1,701 1,779 3,773 5,764 2,844 1,832 2,639 3,589 98 Investor Day
Non-GAAP Reconciliation SLIDES 16, 42 Millions of Dollars Proportional Share of Select Equity Affiliates Capital Expenditures and Investments* 2012 2013 2014 2015 2016 2017 2018 DCP Midstream (Midstream) $ 1,324 971 776 438 99 268 484 CPChem (Chemicals) Growth 239 403 726 1,136 743 571 131 Sustaining 132 210 160 183 244 205 208 Total 371 613 886 1,319 987 776 339 WRB (Refining) 136 109 140 175 164 126 156 Select Equity Affiliates $ 1,831 1,693 1,802 1,932 1,250 1,170 979 *Represents Phillips 66's portion of self-funded capital spending by DCP Midstream, LLC (DCP Midstream), Chevron Phillips Chemical Company LLC (CPChem) and WRB Refining LP (WRB). Investor Day 99
Non-GAAP Reconciliation SLIDE 28 Millions of Dollars 2015 2016 2017 2018 3Q19 LTM Reconciliation of DCP Midstream Pre-Tax Income (Loss) to Adjusted EBITDA DCP Midstream pre-tax income (loss) $ (463) (34) 76 106 (794) Plus: — — — — — None DCP Midstream EBITDA (463) (34) 76 106 (794) Special Item Adjustments (pre-tax): — — — — Pending claims and settlements (45) — — — — Impairments 853 — Impairments by equity affiliates 366 6 28 75 — — — — Equity affiliate ownership restructuring 33 — — — — Asset disposition (30) DCP Midstream EBITDA, Adjusted for Special Items (127) (40) 76 134 134 Other Adjustments (pre-tax): — — — Proportional share of selected equity affiliates income taxes (2) 2 Proportional share of selected equity affiliates net interest 133 129 65 62 69 Proportional share of selected equity affiliates depreciation and amortization 166 183 107 111 121 DCP Midstream Adjusted EBITDA $ 170 274 248 307 324 100 Investor Day
Recommend
More recommend
