Freeport Terminal LPG Facility Freeport, Texas July 26, 2019 SECOND QUARTER 2019 CONFERENCE CALL 1 phillips66.com | NYSE: PSX
CAUTIONARY STATEMENT 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,” “continues,” “intends,” “will,” “would,” “objectives,” “goals,” “projects,” “efforts,” “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 operations) 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 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 include fluctuations in NGL, crude oil, and natural gas prices, and petrochemical and refining 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 our NGL, crude oil, natural gas, 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 of capital related to illiquidity or uncertainty in the domestic or international financial markets; the impact of adverse market conditions or other similar risks to those identified herein affecting PSXP, as well as the ability of PSXP to successfully execute its growth plans; 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. 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 our website. 2 phillips66.com | NYSE: PSX
EXECUTING THE STRATEGY Deethanizer tower construction at new fractionation site, Old Ocean, Texas 3 phillips66.com | NYSE: PSX
2Q 2019 OVERVIEW $MM (Unless Otherwise Noted) 2Q 2019 Adjusted earnings $ 1,379 Adjusted EPS 1 3.02 Operating cash flow 1,930 Capital expenditures and investments 631 Shareholder distributions 2 861 Common shares outstanding at June 30 449 MM 1) Dollars per share 2) Shareholder distributions include dividends and share repurchases 4 phillips66.com | NYSE: PSX Wood River Refinery Roxana, Illinois
2Q 2019 ADJUSTED EARNINGS $MM 5 148 1,202 (304) (14) 1,379 48 107 187 Marketing Corporate 1Q 2019 Midstream Chemicals Refining Income Noncontrolli ng 2Q 2019 Adjusted & Specialties & Other Taxes Adjusted Interests Earnings Earnings 423 275 983 353 (205) (370) (80) 2Q 2019 Adjusted Pre-Tax Income (Loss) 5 phillips66.com | NYSE: PSX
MIDSTREAM $MM Record Midstream results 12 53 42 Higher volumes on wholly owned and JV pipelines 423 Record Sweeny Hub 316 performance DCP Midstream started up gas plant in DJ Basin NGL & DCP Transportation 2Q 2019 1Q 2019 Midstream Adjusted Adjusted Other Pre-Tax Income Pre-Tax Income 245 143 35 2Q 2019 6 phillips66.com | NYSE: PSX
CHEMICALS $MM 95% O&P capacity 8 41 utilization (1) Benefited from lower-cost feedstocks 275 227 Higher SA&S results following 1Q turnarounds 1Q 2019 Olefins & Specialties, Other 2Q 2019 Aromatics Adjusted Polyolefins Adjusted & Styrenics Pre-Tax Income Pre-Tax Income 260 34 (19) 2Q 2019 7 phillips66.com | NYSE: PSX
REFINING $MM 97% crude utilization 133 464 84% clean product yield 983 340 $11.37/BBL realized margin 265 (219) $67 MM pre-tax turnaround costs 2Q 2019 Central West 1Q 2019 Atlantic Gulf Coast Adjusted Corridor Coast Adjusted Basin / Pre-Tax Income Europe Pre-Tax Loss 258 222 520 (17) 2Q 2019 8 phillips66.com | NYSE: PSX
REFINING MARGINS – MARKET VS. REALIZED WORLDWIDE REFINING $/BBL 0.01 (2.32) (1.35) (0.21) 15.24 11.37 2Q 2019 Secondary Feedstock Other 2Q 2019 Configuration Market Realized Products 3:2:1 Margin Avg Market Crude: $65.92/BBL 75% Market Capture 9 phillips66.com | NYSE: PSX
MARKETING AND SPECIALTIES $MM Strong global marketing margins 156 (8) Re-imaged approximately 400 branded sites 353 Refined products exports of 205 187 MBPD 1Q 2019 Marketing Specialties 2Q 2019 Adjusted & Other Adjusted Pre-Tax Income Pre-Tax Income 294 59 2Q 2019 10 phillips66.com | NYSE: PSX
2Q 2019 CASH FLOW $B 0.1 0.2 1.7 (0.6) (0.9) 1.8 1.3 March 31, CFO Working Debt Shareholder June 30, Capital (excluding Capital Distributions 2019 Expenditures 2019 Working Cash & Investments Cash Balance 1 Balance 1 Capital) 1) Includes cash and cash equivalents 11 phillips66.com | NYSE: PSX
3Q 2019 OUTLOOK Global Olefins and Polyolefins utilization Mid-90% Refining crude utilization Mid-90% Refining turnaround expenses (pre-tax) $150 MM – $180 MM $210 MM – $240 MM Corporate and Other costs (pre-tax) Beaumont Terminal Nederland, TX 12 phillips66.com | NYSE: PSX
Beaumont Terminal Beaumont, Texas QUESTIONS AND ANSWERS phillips66.com | NYSE: PSX
Beaumont Terminal Beaumont, Texas APPENDIX phillips66.com | NYSE: PSX
2019 ESTIMATED 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) Sensitivities shown above are independent and are only valid within a limited price range 15 phillips66.com | NYSE: PSX
CAPITAL STRUCTURE CONSOLIDATED PSX EXCLUDING PSXP 26% 30% 30% 30% 25% 25% 25% 29% 27% 26% 22% 22% 21% 27% 24% 23% 18% 20% 17% 14% 25.1 24.7 24.8 24.3 27.4 27.2 27.3 26.7 22.4 23.7 11.3 11.4 11.2 10.1 10.1 8.1 8.1 8.1 7.7 7.2 2.9 3.0 3.1 3.0 2.7 2.7 1.7 1.8 1.3 1.3 2016 2017 2018 1Q 2Q 2016 2017 2018 1Q 2Q 2019 2019 2019 2019 Equity $B Debt $B Cash & Cash Equivalents $B Debt-to-Capital Net Debt-to-Capital 16 phillips66.com | NYSE: PSX
REFINING MARGINS – MARKET VS. REALIZED ATLANTIC BASIN / EUROPE $/BBL Brent: $68.82/BBL 2.51 0.09 97% crude capacity (1.54) (3.00) utilization 12.79 10.85 85% market capture 2Q 2019 Configuration Secondary Feedstock Other 2Q 2019 Market Realized Products 3:2:1 Margin Market 3:2:1 - Dated Brent / Gasoline 83.7 RBOB NYH / Diesel 15ppm NYH 17 phillips66.com | NYSE: PSX
REFINING MARGINS – MARKET VS. REALIZED GULF COAST $/BBL LLS: $66.92/BBL 1.08 99% crude capacity (1.64) (0.04) utilization (1.42) 10.22 8.20 80% market capture 2Q 2019 Configuration Secondary Feedstock Other 2Q 2019 Market Realized Products 3:2:1 Margin Market 3:2:1 - LLS / Gasoline 85 CBOB / Diesel 62 10ppm 18 phillips66.com | NYSE: PSX
REFINING MARGINS – MARKET VS. REALIZED CENTRAL CORRIDOR $/BBL WTI: $59.80/BBL 1.98 101% crude capacity 1.61 (1.99) utilization (3.73) 19.97 17.84 89% market capture 2Q 2019 Configuration Secondary Feedstock Other 2Q 2019 Market Realized Products 3:2:1 Margin Market 3:2:1 - WTI / Gasoline Unl Sub Octane Group 3 / ULSD Group 3 19 phillips66.com | NYSE: PSX
REFINING MARGINS – MARKET VS. REALIZED WEST COAST $/BBL ANS: $68.18/BBL 87% crude capacity utilization (4.51) (4.02) (0.16) 22.70 (4.07) 44% market capture 9.94 2Q 2019 Configuration Secondary Feedstock Other 2Q 2019 Market Realized Products 3:2:1 Margin Market 3:2:1 - ANS / Los Angeles CARBOB / Los Angeles No. 2 CARB 20 phillips66.com | NYSE: PSX
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