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Cautionary Statement
2
This presentation contains forward-looking statements. 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 the operations of Phillips 66 and Phillips 66 Partners LP (including joint venture operations) are based on management’s expectations,
estimates and projections, their 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 outcomes
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 can be found in filings by Phillips 66 and Phillips 66 Partners LP
with the Securities and Exchange Commission. Phillips 66 and Phillips 66 Partners LP are under no obligation (and expressly disclaim any such
obligation) to update or alter their forward-looking statements, whether as a result of new information, future events or otherwise.
This presentation includes non-GAAP financial measures. You can find the reconciliations to comparable GAAP financial measures at the end of
the presentation materials or in the “Investors” section of the websites of Phillips 66 and Phillips 66 Partners LP.
Market Dynamics
3
Strategy
4
Operating Excellence
Growth
Returns
Distributions
High-Performing Organization
See appendix for footnotes.
Operating Excellence
5
Value Chains
6
Midstream Organic Growth
7
Sweeny Midstream Hub Sweeny Fractionator One and Clemens Caverns in
operation 4Q 2015
Freeport LPG Export Terminal startup 2H 2016
DAPL/ETCOP Commercial operations expected to begin 4Q 2016
Beaumont Terminal projects 2.5 MMBbls new crude/products tanks planned by 2H 2016
Bakken JVs (PSXP) Sacagawea Pipeline expected startup 2H 2016
Bayou Bridge System (PSXP) Lake Charles segment operational 1Q 2016
St. James segment targeted in-service 2H 2017
DCP EBITDA excluded.
See appendix for additional footnotes.
Phillips 66 Partners
Fee-based EBITDA
Investment-grade credit rating
Financial targets:
30% distribution CAGR 2013-2018
3.5x debt/EBITDA
1.1x annual coverage ratio
See appendix for footnotes.
8
Phillips 66 Partners 1Q 2016 Drop Down
9
Assets include a 25% controlling interest in:
Sweeny Fractionator – 100MBD NGL fractionator
Clemens NGL Caverns – 7.5MMBbl NGL storage facility
Total transaction value of $236 MM funded with:
$24 MM take-back equity of PSXP LP and GP units
$212 MM sponsor loan payable to PSX
2016E full-year EBITDA of $25 MM
Long-term, take-or-pay contracts with Phillips 66 for the
full capacity of the assets
$25 MM EBITDA is attributable to PSXP interest.
DCP Midstream
10
Strengthened balance sheet
Significant self-help initiatives
Cash flow breakeven reduction from 60 to 35 cpg NGL
Operating improvements
Contract realignment
System rationalization
Capital discipline
90% investment-grade end-use customers
Expected to be self-funding
No DCP Midstream debt maturities until 2019
Global Chemicals Demand
11
Source: Wood Mackenzie.
Petrochemical demand driven by
global economic growth
Demand outpaced capacity additions
0
150
300
450
600
750
900
1,050
1,200
0 15 30 45 60 75 90 105 120 135 150
Chemicals Production Costs
12
M.E.
Ethane
N.A. Ethane
N.A. LPG
M.E. LPG/Naphtha
W. Europe
Naphtha
N.A. Naphtha
W. Europe LPG
Asia Naphtha Asia LPG/Ethane
Cumulative Capacity MM Tons
2015 vs 2014 Average Ethylene Production Cost Curve ($/ton)
Petrochemical production costs
reduced globally
CPChem location-advantaged
feedstock position continues
Rest of World
Asia Coal
CPChem
Source: Wood Mackenzie.
2014
2015
CPChem Growth
13
USGC Petrochemicals Project
1,500 kMTA (ethylene) at Cedar Bayou, TX
1,000 kMTA (polyethylene) at Old Ocean, TX
Planned startup mid-2017
$1 B estimated EBITDA
Healthy pipeline of self-funded growth
opportunities
Expect increased distributions post USGC
project completion
EBITDA estimate is on a CPChem 100% basis and is based on January 2016 IHS forecast premises.
Refining
14
See appendix for footnotes.
Strong free cash flow
Increased demand for refined products
Expansive footprint provides opportunities
for Midstream growth
Refining
15
Investing to improve returns
Quick payout, low cost projects
Wood River projects
Dilbit capacity increase, ULSD expansion,
FCC modernization
$200 MM capex, $100 MM EBITDA
Bayway FCC modernization
$150 MM capex, $75 MM EBITDA
Billings heavy crude project
$300 MM capex, $125 MM EBITDA
See appendix for footnotes.
Marketing & Specialties
16
Increased U.S. gasoline sales volumes by 7%
Upgraded 300 U.S. branded sites
Increased U.K. inland gasoline placement by 11%
Added 31 new retail sites in Germany and Austria
Third largest U.S. finished lubricants supplier
See appendix for footnotes.
Financial Strength
17
Strong balance sheet
Investment-grade credit rating
Disciplined capital allocation
20% net debt/cap
$3.1 B cash
$5 B revolving credit facility
See appendix for footnotes.
Capital Allocation
18
Funding reinvestment
Cash from operations
PSXP proceeds
Returning capital to shareholders
Dividend growth
Ongoing share repurchases
See appendix for footnotes.
Capital Spending
19
Distributions
20
Double-digit dividend growth
37% dividend CAGR since spin
Ongoing share repurchase program
110 MM shares repurchased and exchanged
$2.6 B authorization remaining
Cumulative distributions include distributions since July 2012.
See appendix for additional footnotes.
Compelling Investment
21
Shareholder returns
Disciplined capital allocation
Unique portfolio
EBITDA growth
Multiple expansion
-20%
20%
60%
100%
140%
180%
220%
May-12 Feb-13 Nov-13 Aug-14 May-15 Feb-16
PSX +165%
S&P 100 +47%
Peers +37%
Appendix
Segment Strategy
23
Refining:
Enhance Returns Midstream: Growth Chemicals: Growth
Marketing &
Specialties:
Selective Growth
Execute Sweeny Hub
Grow integrated
transportation system
PSXP as a funding vehicle
Pursue organic and M&A
opportunities
Grow CPChem organically
Advance olefins and
polyolefins projects
Capitalize on domestic
feedstock advantage
Leverage proprietary
technology
Optimize crude slate
Expand export capability
Increase yields
Maintain cost discipline
Enhance portfolio
Expand European retail
marketing
Grow lubricants
Ensure domestic refinery
pull-through
Midcontinent Integrated Growth
24
Midstream
Palermo rail terminal/Sacagawea pipeline (PSXP)
DAPL/ETCOP
Refining, Marketing & Specialties
Ponca City
Yield improvement project
Tight oil processing flexibility
100% lease crude purchases
Wood River
Dilbit capacity increase
ULSD expansion
FCC modernization
Billings
Vacuum tower project
Marketing & Specialties
Grow branded fuels volumes
Enhance Phillips 66 brand
Marketing JVs and alliances
LPG Export Terminal
(Under Construction)
Clemens Caverns
Western Gulf Creating a World-Class Energy Complex
25
Midstream
Sweeny Fractionator One (25% PSXP)
Freeport LPG export terminal
Eagle Ford crude pipeline
Sweeny Fractionator Two
Refining, Marketing & Specialties
Sweeny
Strategic asset integration
Marketing & Specialties
Grow unbranded fuels volumes
Focus on high-quality branded assets
Increase high-margin exports
Eastern Gulf Refining Logistics and Midstream Growth
26
Midstream
Beaumont terminal expansion: +7 MMBbls
Bayou Bridge pipeline
Alliance clean products dock
Refining, Marketing & Specialties
Lake Charles
Increase feedstock advantage
Alliance
Increase light crude runs
Marketing & Specialties
Grow unbranded fuels volumes
Leverage brand value through licensing
Increase high-margin exports
Grow performance lubricants and export sales
West Coast Enhancing Returns
Midstream
Los Angeles waterborne crude tank
Santa Maria rail rack
Refining, Marketing & Specialties
San Francisco
Yield improvements
Los Angeles
FCC energy reduction
Marketing & Specialties
Grow branded and unbranded fuels volumes
Enhance 76 brand
Increase high-margin exports
Grow export lubricant sales
27
Atlantic Basin Enhancing Returns
Midstream
Bayway LPG loading facility
Refining, Marketing & Specialties
Bayway
FCC reactor modernization
Yield improvements
Marketing & Specialties
Grow JET and COOP brands in Europe
Increase unbranded volumes in the U.K. and U.S.
Expand brand licensing in the U.S.
28
Historical Performance
29
Free Cash Flow 2013 – 2015 Average
30
CFO excludes working capital. Sustaining capex excludes capital leases.
Midstream adjusted CFO excludes PSXP. PSXP contributions are calculated as consideration paid by PSXP to PSX in dropdown transactions plus quarterly cash distributions paid from PSXP to PSX. Midstream
sustaining capex excludes PSXP.
DCP Midstream, CPChem and WRB free cash flow calculated based on Phillips 66’s share of after tax cash flow at the enterprise level.
35%
19%
19%
5%
M&S
Chemicals Refining
Midstream
-10%
0%
10%
20%
30%
40%
Average Capital Employed ($B)
Corporate
-8%
2015 Adjusted ROCE
31
P66 Total
14%
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32
Capital Structure
32
Debt and Liquidity
33
As of 12/31/2015. Excludes PSXP.
Debt maturity profile excludes capital leases.
Undrawn Revolving Credit Facility includes $5.0 B revolving credit facility less $51 MM in letters of credit.
2016 Sensitivities
34
Sensitivities shown above are independent and are only valid within a limited price range.
Phillips 66 Capital Program
35
Sustaining Growth Total
Consolidated Capital Expenditures and Investments
Midstream(1) 227 2,119 2,346
Chemicals - - -
Refining 833 384 1,217
Marketing and Specialties 57 80 137
Corporate(2) 180 - 180
1,297 2,583 3,880
Select Equity Affiliates (3)
DCP 98 125 223
CPChem 241 775 1,016
WRB 129 55 184
467 956 1,423
Capital Program(3)
Midstream 324 2,244 2,568
Chemicals 241 775 1,016
Refining 962 439 1,401
Marketing and Specialties 57 80 137
Corporate 180 - 180
1,764 3,539 5,303
Millions of Dollars
2016 Budget
(3) Includes Phillips 66’s portion of self-funded capital spending by DCP Midstream, CPChem, and WRB.
(2) Includes non-cash capitalized lease of $3 million in Corporate
(1) Includes 100% of Phillips 66 Partners
Footnotes
36
Slide 3
2016 YTD data is through February 18, 2016 unless otherwise noted.
Global Market Crack refers to worldwide market crack spread based on Phillips 66 global crude capacity.
NGL weighted average prices are based on index prices from the Mont Belvieu and Conway market hubs
that are weighted by DCP Midstream, LLC’s (DCP’s) NGL component and location mix.
PE cash chain margins are ethylene to high-density polyethylene cash chain margins. 2016 YTD is
January average pricing. Source: IHS, Inc.
Slide 4
Corporate not included in bars on chart, but included in totals. Adjusted EBITDA adjusted for non-
controlling interest and proportional share of selected equity affiliates’ income taxes, net interest and D&A.
Footnotes
37
Slide 5
Injury statistics do not include major projects.
Industry Averages are from: Phillips 66 – American Fuel & Petrochemical Manufacturers (AFPM) refining
data, Chevron Phillips Chemical Company LLC (CPChem) – American Chemistry Council (ACC), DCP –
Gas Processors Association (GPA).
Growth component of operating costs is estimated based on growth initiatives post-2013.
Slide 7
PSX operating assets EBITDA includes Refining Logistics. Refining Logistics represents terminaling,
storage and other logistics assets currently embedded in the Refining segment. Amount represents an
estimate of the EBITDA potential of these assets if they were transferred to Midstream and market-based
fees for their use were charged to the Refining segment.
Projects under construction and planned EBITDA growth is 2018 estimated run-rate EBITDA of projects
completed 2016 or later. PSXP EBITDA includes EBITDA attributable to non-controlling interests.
Planned EBITDA includes projects that have not yet reached final investment decision.
Footnotes
38
Slide 8
3Q 2013 distribution represents the minimum quarterly distribution, actual distribution of $0.1548 equal to
MQD prorated.
Slide 14
FCF is CFO less sustaining capital, excluding working capital. WRB Refining LP (WRB) free cash flow is
calculated based on P66’s share of after tax cash flow at the enterprise level.
Global realized margin is based on total processed inputs and includes proportional share of refining
margins contributed by certain equity affiliates. Realized margin excludes special items.
Slide 15
Wood River Projects capex and EBITDA shown at 100% WRB.
Refining capex excludes capital leases but includes Phillips 66’s portion of self-funded capital spending by
WRB. Project capex and annual EBITDA are estimated.
Slide 16
FCF is CFO less sustaining capital, excluding working capital.
Footnotes
39
Slide 17
Net debt/cap and cash figures are consolidated.
Revolving credit facility available includes $5.0 B revolving credit facility less $51 MM in letters of credit.
Adjusted CFO excludes PSXP and excludes working capital.
PSXP contributions are calculated as consideration paid by PSXP to PSX in dropdown transactions plus
quarterly cash distributions paid from PSXP to PSX.
Sustaining capex excludes capital leases and excludes PSXP.
Slide 18
Reinvestment excludes Phillips 66’s portion of self-funded capital spending by DCP, CPChem and WRB.
Includes $1.5 B equity contribution to DCP in 2015.
Distributions include the 2014 PSPI share exchange.
Slide 19
Capital program includes Phillips 66’s portion of self-funded capital spending by DCP, CPChem and WRB.
Footnotes
40
Slide 20
2014 share repurchases and exchanges include the PSPI share exchange.
Slide 21
Chart reflects total shareholder return May 1, 2012 to February 18, 2016. Dividends assumed to be
reinvested in stock. Source: Bloomberg.
Peer average includes Delek US Holdings, Inc., HollyFrontier Corporation, Marathon Petroleum
Corporation, PBF Energy Inc., Tesoro Corporation, Valero Energy Corporation, Western Refining, Energy
Transfer Equity, L.P., Enterprise Products Partners L.P., ONEOK, Inc., Targa Resources Corp., Celanese
Corporation, The Dow Chemical Company, Eastman Chemical Company, Huntsman Corporation,
LyondellBasell Industries NV, and Westlake Chemical Corporation.
Non-GAAP Reconciliations
41
Adjusted EBITDA by Segment Reconciliation 2012 2013 2014 2015
Midstream (excluding DCP Midstream)
Midstream net income attributable to Phillips 66 (127) 259 372 337
Plus:
Net income attributable to noncontrolling interests 7 17 35 61
Provision for income taxes (71) 142 230 212
Depreciation and amortization 83 88 91 127
Midstream (excluding DCP Midstream) EBITDA (108) 506 728 737
Adjustments (pretax):
EBITDA attributable to Phillips 66 noncontrolling interests (13) (24) (45) (73)
Proportional share of selected equity affiliates income taxes - - - -
Proportional share of selected equity affiliates net interest - - - -
Proportional share of selected equity affiliates depreciation and amortization - - - -
Lower-of-cost-or-market inventory adjustments - - - -
Gain on asset dispositions - - - -
Gain on share issuance by equity affiliate - - - -
Impairments 523 - - -
Pending Claims and settlements (37) - - -
Hurricane-related costs 2 - - -
Pension settlement expense - - - 9
Midstream (excluding DCP Midstream) Adjusted EBITDA* 367 482 683 673
* Proportional share of selected equity affiliates is net of noncontrolling interests.
Millions of Dollars
Adjusted EBITDA by Segment Reconciliation 2012 2013 2014 2015
Proportional Share of DCP Midstream
Proportional Share of DCP Midstream net income attributable to Phillips 66 179 210 135 (324)
Plus:
Net income attributable to noncontrolling interests
Provision for income taxes 100 122 79 (139)
Depreciation and amortization - - - -
Proportional Share of DCP Midstream EBITDA 279 332 214 (463)
Adjustments (pretax):
EBITDA attributable to Phillips 66 noncontrolling interests
Proportional share of selected equity affiliates income taxes - 4 3 (2)
Proportional share of selected equity affiliates net interest 85 110 118 133
Proportional share of selected equity affiliates depreciation and amortization 131 139 150 166
Lower-of-cost-or-market inventory adjustments - - 2 -
Gain on asset dispositions - - - (30)
Gain on share issuance by equity affiliate - - - -
Impairments in equity affiliates - - - 366
Pending Claims and settlements - - - -
Hurricane-related costs - - - -
Proportional Share of DCP Midstream Adjusted EBITDA* 495 585 487 170
* Proportional share of selected equity affiliates is net of noncontrolling interests.
Millions of Dollars
Non-GAAP Reconciliations
42
Adjusted EBITDA by Segment Reconciliation 2012 2013 2014 2015
Chemicals
Chemicals net income attributable to Phillips 66 823 986 1,137 962
Plus:
Provision for income taxes 366 375 495 353
Chemicals EBITDA 1,189 1,361 1,632 1,315
Adjustments (pretax):
Proportional share of selected equity affiliates income taxes 79 93 111 91
Proportional share of selected equity affiliates net interest 13 10 9 7
Proportional share of selected equity affiliates depreciation and amortization 213 246 258 264
Impairments by equity affiliates 43 - 88 24
Premium on early debt retirement 144 - - -
Lower-of-cost-or-market inventory adjustments - - 3 -
Chemicals Adjusted EBITDA 1,681 1,710 2,101 1,701
Millions of Dollars
Adjusted EBITDA by Segment Reconciliation 2012 2013 2014 2015
Refining
Refining net income (loss) attributable to Phillips 66 3,091 1,747 1,771 2,555
Plus:
Provision for income taxes 1,998 1,035 696 1,104
Net interest expense - - - -
Depreciation and amortization 655 685 704 738
Refining EBITDA 5,744 3,467 3,171 4,397
Adjustments (pretax):
Proportional share of selected equity affiliates income taxes 5 (4) 3 (3)
Proportional share of selected equity affiliates net interest (118) (95) (19) -
Proportional share of selected equity affiliates depreciation and amortization 236 237 245 252
Net (gain) loss on asset dispositions (185) - (145) (8)
Impairments 606 - 131 -
Canceled projects - - - -
Pending claims and settlements 31 - 23 30
Severence accruals - - - -
Hurrican-related costs 54 - - -
Tax law impacts - (22) - -
Lower-of-cost-or-market inventory adjustments - - 40 53
Pension settlement expenses - - - 53
Refining Adjusted EBITDA 6,373 3,583 3,449 4,774
Millions of Dollars
Non-GAAP Reconciliations
43
Adjusted EBITDA by Segment Reconciliation 2012 2013 2014 2015
Marketing and Specialties
Marketing and Specialties net income attributable to Phillips 66 544 894 1,034 1,187
Plus:
Provision for income taxes 319 433 441 465
Net interest expense - - - (2)
Depreciation and amortization 147 103 95 97
Marketing and Specialties EBITDA 1,010 1,430 1,570 1,747
Adjustments (pretax):
Asset dispositions (4) (40) (125) (242)
Impairments - - - -
Pending claims and settlements 62 (25) (44) -
Exit of a business line - 54 - -
Tax law impacts - (6) - -
Pension settlement expenses - - - 11
Marketing and Specialties Adjusted EBITDA 1,068 1,413 1,401 1,516
Millions of Dollars
Adjusted EBITDA by Segment Reconciliation 2012 2013 2014 2015
Corporate
Corporate net income (loss) attributable to Phillips 66 (434) (431) (393) (490)
Plus:
Net income attributable to noncontrolling interests - - - (8)
Provision for income taxes (239) (263) (287) (231)
Net interest expense 231 258 246 285
Depreciation and amortization 21 71 105 116
Corporate EBITDA (421) (365) (329) (328)
Adjustments (pretax):
Impairments 25 - - -
Repositioning Costs 85 - - -
Pending claims and settlements - - - -
Tax impacts - - - -
Pension settlement expense - - - 7
Corporate Adjusted EBITDA (311) (365) (329) (321)
Millions of Dollars
Non-GAAP Reconciliations
44
2009 2010 2011 2012 2013 2014 2015
Phillips 66
Phillips 66 net income attributable to Phillips 66 476 735 4,775 4,124 3,726 4,762 4,227
Less:
Income from discontinued operations 19 30 43 48 61 706 -
Plus:
Net income attributable to noncontrolling interests 3 5 5 7 17 35 53
Provision for income taxes 357 562 1,822 2,473 1,844 1,654 1,764
Net interest expense (44) (41) (16) 231 258 246 283
Depreciation and amortization 873 874 902 906 947 995 1,078
Phillips 66 EBITDA 1,646 2,105 7,445 7,693 6,731 6,986 7,405
Adjustments (pretax):
EBITDA attributable to Phillips 66 noncontrolling interests - (9) (10) (13) (24) (45) (73)
Proportional share of selected equity affiliates income taxes 47 63 80 84 93 117 86
Proportional share of selected equity affiliates net interest (26) (6) (27) (20) 25 108 140
Proportional share of selected equity affiliates depreciation and amortization 557 540 584 580 622 653 682
Gain on asset dispositions (37) (234) (1,636) (189) (40) (270) (280)
Gain on share issuance by equity affiliate (135) - - - - - -
Impairments 129 1,512 506 1,197 - 131 -
Impairments by equity affiliates - - - 88 390
Cancelled projects - 106 44 - - - -
Severence accruals - 28 24 - - - -
Exit of a business line - - - - 54 - -
Pending claims and settlements 39 (56) - 56 (25) (21) 30
Premium on early debt retirement - - - 144 - - -
Repositioning Costs - - - 85 - - -
Hurricane-related costs - - - 56 - - -
Tax law impacts - - - - (28) - -
Lower-of-cost-or-market inventory adjustments - - - - - 45 53
Pension settlement expense - - - - - - 80
Phillips 66 Adjusted EBITDA 2,220 4,049 7,010 9,673 7,408 7,792 8,513
Millions of Dollars
Non-GAAP Reconciliations
45
Forecasted EBITDA
We are unable to present reconciliations of the various forecasted 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
46
2013 2014 2015
Refining FCF
Numerator
Cash From Operations GAAP $ 3,700 1,374 2,770
Less: Change in Non-Cash Working Cap. 818 (1,599) (441)
Cash From Operations (excluding WC) 2,882$ 2,973 3,211
Less: P66 Equity affiliate cash from ops 1,020 838 90
Add: Equity look through cash from ops 848 351 303
Adjusted FCF (excl WC) 2,710$ 2,486 3,424
Total Capex GAAP 820 1,038 1,069
Less: Growth Capex 166 265 189
Sustaining Capex 654$ 773 880
Less: P66 Equity affiliate sustaining capex - - -
Add: Equity look through sustaining capex 94 118 151
Adjusted Sustaining Capex $ 748 891 1,031
Refining Free Cash Flow 1,962$ 1,595 2,393
Millions of Dollars
Non-GAAP Reconciliations
47
2013 2014 2015
Refining ROCE
Numerator
Net Income 1,747 1,771 2,554
After-tax interest expense - - -
GAAP ROCE earnings 1,747 1,771 2,554
Special Items (13) (195) (28)
Adjusted ROCE earnings 1,734 1,576 2,526
Denominator
GAAP average capital employed* 13,940 13,377 13,582
Discontinued Operations - - -
Adjusted average capital employed* 13,940 13,377 13,582
*Total equity plus debt.
Adjusted ROCE (percent) 12% 12% 19%
GAAP ROCE (percent) 13% 13% 19%
*Total equity plus debt.
Millions of Dollars
Non-GAAP Reconciliations
48
2013 2014 2015
M&S FCF
Numerator
Cash From Operations GAAP $ 757 1,663 1,736
Less: Change in Non-Cash Working Cap. (217) 651 676
Cash From Operations (excluding WC) 974$ 1,012 1,060
Less: P66 Equity affiliate cash from ops - - -
Add: Equity look through cash from ops - - -
Adjusted FCF (excl WC) 974$ 1,012 1,060
Total Capex GAAP 226 439 122
Less: Growth Capex 176 379 53
Sustaining Capex 50$ 60 69
Less: P66 Equity affiliate sustaining capex - - -
Add: Equity look through sustaining capex - - -
Adjusted Sustaining Capex $ 50 60 69
M&S Free Cash Flow 924$ 952 991
Millions of Dollars
Non-GAAP Reconciliations
49
2013 2014 2015
M&S ROCE
Numerator
Net Income 894 1,034 1,187
After-tax interest expense - - -
GAAP ROCE earnings 894 1,034 1,187
Special Items (9) (152) (239)
Adjusted ROCE earnings 885 882 948
Denominator
GAAP average capital employed* 3,160 2,743 2,735
Discontinued Operations - - -
Adjusted average capital employed* 3,160 2,743 2,735
*Total equity plus debt.
Adjusted ROCE (percent) 28% 32% 35%
GAAP ROCE (percent) 28% 38% 43%
*Total equity plus debt.
Millions of Dollars
Non-GAAP Reconciliations
50
2013 2014 2015
Phillips 66 Available Cash
Cash From Continuing Operations GAAP 5,942$ 3,527 5,713
Less: Change in Non-Cash Working Cap. 880 (1,020) (221)
Cash From Operations (excluding WC) 5,062$ 4,547 5,934
Less: PSXP cash from operations 24 100 176
Adjusted CFO 5,038$ 4,447 5,758
Add: PSXP contributions 20 536 1,478
Total Available Cash 5,058$ 4,983 7,236
Total Phillips 66 Sustaining Capex 1,028$ 1,095 1,186
Less: PSXP Sustaining Capex 3 12 8
Sustaining Capex excluding PSXP 1,025$ 1,083 1,178
Remaining capital expenditures 754 2,690 4,586
GAAP capital expenditures 1,779$ 3,773 5,764
Millions of Dollars
Non-GAAP Reconciliations
51
2009 2010 2011 2012 2013 2014 2015
Phillips 66 Cash from Operations
Cash From Continuing Operations GAAP 917$ 2,054 4,953 4,259 5,942 3,527 5,713
Less: Change in Non-Cash Working Cap. 393 (195) 314 (1,140) 880 (1,020) (221)
Cash From Continuing Operations (excluding WC) 524$ 2,249 4,639 5,399 5,062 4,547 5,934
Millions of Dollars
Non-GAAP Reconciliations
52
2009 2010 2011 2012 2013 2014 2015
Reconciliation of Earnings to Adjusted Earnings
Consolidated
Earnings 476 735 4,775 4,124 3,726 4,762 4,227
Adjustments:
Gain on share issuance by equity affiliate (88) - - - - - -
Asset dispositions (32) (116) (1,545) (106) (23) (494) (265)
Impairments 116 1,118 318 979 - 131 -
Impairments by equity affiliates - - - - - 69 256
Canceled projects - 29 28 - - - -
Severance accruals - 28 15 - - - -
Pending claims and settlements 25 (35) - 34 (16) (10) (23)
Premium on early debt retirement - - - 89 - - -
Repositioning costs - - - 55 - - -
Exit of business line - - - - 34 - -
Repositioning tax impacts - - - 177 - - -
Certain tax impacts - - - - (17) - (84)
Hurricane-related costs - - - 35 - - -
Lower-of-cost-or-market inventoyr adjustments - - - - - 30 33
Pension settlement expenses - - - - - - 49
Discontinued operations (19) (30) (43) (48) (61) (706) -
Adjusted earnings 478 1,729 3,548 5,339 3,643 3,782 4,193
Millions of Dollars
Except as Indicated
Non-GAAP Reconciliations
53
Midstream Chemicals Refining
Marketing &
Specialties
FCF
Numerator
Cash From Operations GAAP 859$ 571 2,615 1,385
Less: Change in Non-Cash Working Cap. (46) 0 (407) 370
Cash From Operations (excluding WC) 905$ 571 3,022 1,015
Less: P66 Equity affiliate cash from ops 228 571 649 0
Add: Equity look through cash from ops 378 1,147 501 0
Adjusted FCF (excl WC) 1,055$ 1,147 2,874 1,015
Total Capex GAAP 2,409 0 976 262
Less: Growth Capex 1,750 0 207 203
Sustaining Capex 659$ 0 769 59
Less: P66 Equity affiliate sustaining capex 500 0 0 0
Add: Equity look through sustaining capex 125 209 121 0
Adjusted Sustaining Capex 284$ 209 890 59
PSXP Contributions 678$ - - -
Free Cash Flow 1,449$ 938 1,984 956
Average 2013-2015
Non-GAAP Reconciliations
54
Phillips 66 Midstream Chemicals Refining
Marketing &
Specialties Corporate
ROCE
Numerator
Net Income 4,280$ 74 962 2,554 1,187 (497)
After-tax interest expense 201 - - - - 201
GAAP ROCE earnings 4,481 74 962 2,554 1,187 (296)
Special Items (34) 235 (10) (28) (240) 9
Adjusted ROCE earnings 4,447$ 309 952 2,526 947 (287)
Denominator
GAAP average capital employed* 31,749$ 6,793 4,921 13,582 2,735 3,718
Discontinued Operations - - - - - -
Adjusted average capital employed* 31,749$ 6,793 4,921 13,582 2,735 3,718
*Total equity plus debt.
Adjusted ROCE (percent) 14% 5% 19% 19% 35% -8%
GAAP ROCE (percent) 14% 1% 20% 19% 43% -8%
*Total equity plus debt.
Millions of Dollars
2015
Non-GAAP Reconciliations
55
Adjusted
Phillips 66
Phillips 66
Partners
Phillips 66
Consolidated
2013
Cash and cash equivalents 4,975 425 5,400
Total Debt 6,126 - 6,126
Total Equity 21,983 409 22,392
Debt-to-capital ratio 22% 21%
2014
Cash and cash equivalents 5,199 8 5,207
Total Debt 8,617 18 8,635
Total Equity 21,622 415 22,037
Debt-to-capital ratio 28% 28%
2015
Cash and cash equivalents 3,026 48 3,074
Total Debt 7,796 1,091 8,887
Total Equity 23,129 809 23,938
Debt-to-capital ratio 25% 27%
Millions of Dollars