phillips66.com | NYSE: PSX1
June 2019
Freeport Terminal LPG Facility FREEPORT, TX
J.P. MORGAN ENERGY CONFERENCE
Greg C. Garland
Chairman and Chief Executive Officer
phillips66.com | NYSE: PSX2
C A U T I O N A R Y S T A T E M E N T
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.
phillips66.com | NYSE: PSX3 Vacuum Tower, Billings Refinery, Billings, MT
E X E C U T I N G T H E S T R A T E G Y
Beaumont Terminal NEDERLAND, TX
OPERATING EXCELLENCE
Safe and reliable operations
Technology driven cost efficiencies
GROWTH
Pipelines from key shale basins to the USGC
Crude export capability
NGL value chain – transportation, fractionation and exports
CPChem USGC ethylene and derivative capacity
CPChem debottleneck projects
RETURNS
Refinery yield projects and clean product export capability
Brand re-imaging and European growth
DISTRIBUTIONS
Secure, competitive and growing dividend
Commitment to share repurchases
HIGH-PERFORMING ORGANIZATION
Culture. Capability. Performance.
phillips66.com | NYSE: PSX4
.19.23
.58
.19
.28
.54
.15
.30
.66
.14 .14
.46
.14.10
.23
.43
.74
1.15
.41
.76
.86
.33
.66
1.03
.32
.45
.79
.30
.83
Phillips 66
TOTAL RECORDABLE RATESIncidents per 200,000 Hours Worked
CPChem DCP Midstream
14 15 16 17 18 14 15 16 17 18 14 15 16 17 18
O P E R A T I N G E X C E L L E N C E
Industry Average
REFINING CRUDE CAPACITY UTILIZATION
90%
91%
90%
91%
93%
94%
91%
96%
95% 95%
14 15 16 17 18
U.S. Industry Average Phillips 66
See appendix for footnotes
Phillips 66 2018 industry average is based on preliminary AFPM data and is subject to change;
CPChem 2018 industry data has not been released.
phillips66.com | NYSE: PSX5
0
2
4
6
Agricul.,CropProd.
FoodManufact.
AllManufact.
Construction Prof.& Bus.
Services
PetroleumRefining
Petchem.Manufact.
Phillips 66
INDUSTRY SAFETY METRICSIncidents per 200,000 hours worked
E N V I R O N M E N T A L , S O C I A L , G O V E R N A N C E
25
30
35
40
12 13 14 15 16 17 18
PHILLIPS 66 SOx, NOx, PM EMISSIONS / PROCESSED INPUTSTonnes per processed inputs (MB/year)
Board engaged in setting company ESG strategy
Independent lead director
Extensive ESG engagement
Industry leading safety performance
Low reportable environmental events
25% decline in emissions since 2012
Investing in forward-looking research and development
technology
Inclusive and diverse workforce
Committed to corporate and local philanthropy
See appendix for footnotes
phillips66.com | NYSE: PSX6
G R O W I N G O U R I N T E G R A T E D P O R T F O L I O
phillips66.com | NYSE: PSX7
MIDSTREAM AND CHEMICALS GROWTH
phillips66.com | NYSE: PSX8
P S X P G R A Y O A K P I P E L I N E / S O U T H T E X A S G A T E W A Y T E R M I N A L
Gray Oak Pipeline
Crude oil pipeline from the Permian and Eagle
Ford to the Texas Gulf Coast
Expected in service 4Q 2019
900 MBD crude capacity
42.25% PSXP ownership
South Texas Gateway Terminal
Two deepwater docks with up to 800,000 BPD
throughput capacity
Expected in service mid-2020
7 MMB storage capacity
25% PSXP ownership
phillips66.com | NYSE: PSX9
SWEENY HUB EXPANSION
Sweeny Fractionators 2 and 3 under construction OLD OCEAN, TX
Sweeny
FracsAdds 2 x 150 MBD
NGL fracs
(400 MBD total)
Sand Hills
& OtherSecured feedstock
supply agreements
with firm volume
commitments Clemens
Storage Adds 6 MMB
NGL storage
(15 MMB total)
PetChem MarketAccess to key demand centers
including Freeport, Mont
Belvieu and Corpus Christi
LPG
Freeport
Terminal200 MBD export
capability
Ethane
Y-Grade NGL
Mont Belvieu
Hub
Pasadena
Terminal
C5+
All
Products
C2G Pipeline
New pipeline to supply ethane to Corpus Christi
Expected completion in 2021
phillips66.com | NYSE: PSX10
LIBERTY AND RED OAK P IPELINES
Liberty Pipeline
Crude oil pipeline from the Rockies and
Bakken to Cushing, Oklahoma
Initial service expected early 2021
24-inch pipeline
50% PSX ownership
Red Oak Pipeline
Crude oil pipeline from West Texas and
Cushing, Oklahoma, to the Texas Gulf Coast
Initial service expected early 2021
Primarily 30-inch pipeline
50% PSX ownership
phillips66.com | NYSE: PSX11
E N H A N C I N G R E T U R N S I N R E F I N I N G A N D M A R K E T I N G
West Coast
364 MBD
Central Corridor
515 MBD
Gulf Coast
764 MBD
Atlantic
Basin/Europe
537 MBD
West Coast
364 MBD
Central Corridor
515 MBD
As of January 1, 2019
phillips66.com | NYSE: PSX12
R E F I N I N G P O R T F O L I O C O M P E T I T I V E N E S S
DISTILLATE PRODUCTION % TOTAL THROUGHPUT
2018 AVERAGE CANADIAN IMPORTSMBD
38.2% 37.9% 37.0% 34.0%
32.0%
PSX
High distillate yield
Industry leading coking capacity and
heavy crude processing capability
Largest purchaser of advantaged
Canadian crude oils
Low yield of high-sulfur fuel oil
Well positioned for IMO 2020
541
407
133 10533
PSX
Comparison is to independent refining peer group: HFC, MPC, PBF, VLO. Source: E.I.A, through December 2018.
MPC PF reflects pro forma capacity and production with Andeavor acquisition, including Western Refining.
Comparison is to independent refining peer group: HFC, MPC, PBF, VLO. Source: company disclosures.
Calculated using distillate yield and total throughput for FY 2018.
phillips66.com | NYSE: PSX13
REFINING RETURN PROJECTS
Lake Charles Refinery
Borger diesel recovery (3Q19)
Humber diesel yield improvement (3Q19)
San Francisco coker feed segregation (3Q19)
Wood River crude unit restart (3Q19)
Ferndale DHT maximization (4Q19)
Wood River ULD debottleneck (4Q19)
Wood River LSFO hydrotreater project (1Q20)
Bayway LSFO hydrotreater project (2Q20)
Adds 25 MBD
distillate production
Reduces HSFO
production by 35 MBD
Capital ~$120 MM
Returns > 40%
Wood River Refinery ROXANA, IL
phillips66.com | NYSE: PSX14
U.S.
Reimaged ~2,900 sites since 2015
Reimaging 1,800 sites in 2019
5,000+ sites implementing mobile pay
Europe / U.K.
Low-cost high-volume model
Built on brand image, reputation, and
customer focus
High-grading the JET portfolio with
new sites
M A R K E T I N G : E N H A N C I N G T H E B R A N D S
phillips66.com | NYSE: PSX15
Leverage existing infrastructure,
supply network and capabilities
Co-processing used cooking oil at
Humber Refinery
Partnership with Ryze Renewables
Renewable diesel plant at
Ferndale Refinery with Renewable
Energy Group
Renewable diesel production at
San Francisco Refinery
650 million gallons annual
production capacity
R E N E W A B L E D I E S E L
Ryze renewable diesel facility RENO, NV
phillips66.com | NYSE: PSX16 Vacuum Tower, Billings Refinery, Billings, MT
A D J U S T E D E B I T D A A N D C A S H G E N E R A T I O N
PSX CASH FROM OPERATIONS$B
See appendix for footnotes
4.3
6.0
3.5
5.7
3.0
3.6
7.6
12 13 14 15 16 17 18
9.8
7.5 7.9
8.6
4.7
5.9
10.1
12 13 14 15 16 17 18
Midstream Chemicals Refining Marketing and Specialties Corporate
ADJUSTED EBITDA$B
phillips66.com | NYSE: PSX17
CUMULATIVE DISTRIBUTIONS$B
SOURCES AND USES OF CASH$B
D I S C I P L I N E D C A P I T A L A L L O C A T I O N
CAPITAL EXPENDITURES AND INVESTMENTS $B
Fund sustaining capital to maintain asset integrity
Committed to a secure, competitive and growing dividend
Investing in growth projects with attractive returns
Intrinsic value approach to share repurchases
Long-term: 60% reinvestment and 40% shareholder distributions
3.7
8.411.1
13.416.4
22.523.2
13 14 15 16 17 18 1Q19
Share Repurchases and Exchanges Dividends
5.8
2.8
1.8
2.6 2.9
15 16 17 18 19BPSX PSXP
2015 consolidated capital expenditures includes $1.5 B investment in DCP Midstream. See appendix for additional footnotes.
6.5 5.5
~1
~1.6
1.5 - 2.5
1.5 - 2.5
Mid-CycleCFO
Sust.Capex
FCF Dividends GrowthCapex
ShareRepurch.
phillips66.com | NYSE: PSX18 Vacuum Tower, Billings Refinery, Billings, MT
T O T A L S H A R E H O L D E R R E T U R N
See appendix for footnotes
-20%
20%
60%
100%
140%
180%
220%
260%
300%
340%
May-12 May-13 May-14 May-15 May-16 May-17 May-18 May-19
PSX +219%
Peers +119%
S&P 100 +134%
Jun-19
phillips66.com | NYSE: PSX
SAFETY. HONOR. COMMITMENT.
Freeport Terminal LPG Facility FREEPORT, TX
phillips66.com | NYSE: PSX20
FOOTNOTES
General
Information disclosed is as of December 31 unless otherwise noted.
“Mid-Cycle CFO” is defined as 2014-2017 average operating cash flow plus run-rate operating cash flow from growth projects coming online in 2017 and 2018 and
estimated benefit from 2017 tax rate change.
18
18 is as of December 31, 2018, or the twelve-month period ended December 31, 2018, as applicable; except as otherwise noted.
1Q19
1Q19 is as of March 31, 2019, or the three-month period ended March 31, 2019, as applicable; except as otherwise noted.
19B
Budget as of January 1, 2019. See Form 10-Q for information on actual results.
Forecasted and Estimated EBITDA and Maps
We are unable to present reconciliations of various forecasted and estimated 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.
Maps, images, and drawings are for informational purposes only and may not be to scale.
phillips66.com | NYSE: PSX21
FOOTNOTES
Slide 4
Industry averages are from: Phillips 66 – American Fuel & Petrochemical Manufacturers (AFPM) refining data, Chevron Phillips Chemical Company LLC
(CPChem) – American Chemistry Council (ACC), DCP Midstream, LLC (DCP Midstream) – Gas Processors Association (GPA).
Industry refining crude capacity utilization through December 2018. Source: EIA.
Slide 5
Industry safety metrics as of 2017, Phillips 66 as of 2018. Source: Bureau of Labor Statistics.
Sulfur oxides (SOx), nitrous oxides (NOx) and particulate matter (PM).
Slide 17
PSXP 2019 Adjusted Capital Budget excludes $303 MM of growth capital expected to be cash funded by noncontrolling interests and reflects JV-level financing to
fund a portion of the Gray Oak Pipeline construction. Capital expenditures are attributable to the Partnership and exclude predecessor capital spending.
2014 share repurchases/exchanges include the PSPI share exchange.
Slide 18
Chart reflects total shareholder return May 1, 2012 to June 10, 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.
Regarding slide 16, see following slides for accompanying non-GAAP reconciliations.
phillips66.com | NYSE: PSX22
NON-GAAP RECONCILIATION (SLIDE 16)
Millions of Dollars
2012 2013 2014 2015 2016 2017 2018
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
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
Net interest expense 231 258 246 283 321 407 459
Depreciation and amortization 906 947 995 1,078 1,168 1,318 1,356
Phillips 66 EBITDA 7,693 6,731 6,986 7,405 3,680 5,280 9,260
Special Item Adjustments (pre-tax):
Impairments by equity affiliates — — 88 390 95 64 28
Premium on early retirement of debt 144 — — — — — —
Pending claims and settlements 56 (25) (21) 30 (115) (57) 21
Repositioning costs 85 — — — — — —
Tax law impacts — (28) — — — — —
Certain tax impacts — — — — (32) (23) (119)
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) — — —
Impairments 1,197 — 131 — — — —
Lower-of-cost-or-market inventory adjustments — — 45 53 — — —
Pension settlement expense — — — 80 — 83 67
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
Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes 84 93 117 86 79 70 102
Proportional share of selected equity affiliates net interest 38 80 161 189 178 123 167
Proportional share of selected equity affiliates depreciation and amortization 641 689 721 752 798 777 912
EBITDA attributable to Phillips 66 noncontrolling interests (13) (24) (45) (73) (132) (229) (361)
Phillips 66 Adjusted EBITDA $ 9,792 7,530 7,913 8,632 4,654 5,875 10,061
phillips66.com | NYSE: PSX23
Millions of Dollars
2012 2013 2014 2015 2016 2017 2018
Reconciliation of Midstream Pre-Tax Income to Adjusted EBITDA
Midstream pre-tax income $ 89 751 851 147 402 638 1,181
Plus:
Interest revenue — — — — — (1) —
Depreciation and amortization 83 88 91 127 215 299 320
Midstream EBITDA 172 839 942 274 617 936 1,501
Special Item Adjustments (pre-tax):
Pending claims and settlements (37) — — — (45) (37) 21
Impairments 523 — — — — — —
Impairments by equity affiliates — — — 366 6 — 28
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
Midstream EBITDA, Adjusted for Special Items 660 839 944 619 611 921 1,559
Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes — 4 3 (2) 2 1 1
Proportional share of selected equity affiliates net interest 132 156 165 176 170 121 131
Proportional share of selected equity affiliates depreciation and amortization 181 194 207 225 244 191 207
Midstream Adjusted EBITDA $ 973 1,193 1,319 1,018 1,027 1,234 1,898
NON-GAAP RECONCILIATION (SLIDE 16)
phillips66.com | NYSE: PSX24
Millions of Dollars
2012 2013 2014 2015 2016 2017 2018
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
Plus:
None — — — — — — —
Chemicals EBITDA 1,189 1,361 1,632 1,315 839 716 1,025
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 — — — —
Chemicals EBITDA, Adjusted for Special Items 1,376 1,361 1,723 1,339 928 955 1,025
Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes 79 93 111 91 77 68 100
Proportional share of selected equity affiliates net interest 13 10 9 7 8 4 38
Proportional share of selected equity affiliates depreciation and amortization 213 246 258 264 285 307 422
Chemicals Adjusted EBITDA $ 1,681 1,710 2,101 1,701 1,298 1,334 1,585
NON-GAAP RECONCILIATION (SLIDE 16)
phillips66.com | NYSE: PSX25
Millions of Dollars
2012 2013 2014 2015 2016 2017 2018
Reconciliation of Refining Pre-Tax Income to Adjusted EBITDA
Refining pre-tax income $ 5,090 2,782 2,467 3,659 436 2,076 4,535
Plus:
Depreciation and amortization 655 685 704 738 769 821 840
Refining EBITDA 5,745 3,467 3,171 4,397 1,205 2,897 5,375
Special Item Adjustments (pre-tax):
Pending claims and settlements 31 — 23 30 (70) (51) —
Tax law impacts — (22) — — — — —
Certain tax impacts — — — — (32) (23) (6)
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) — — —
Gain on asset sales (185) — — — — — —
Impairments 606 — 131 — — — —
Lower-of-cost-or-market inventory adjustments — — 40 53 — — —
Pension settlement expense — — — 53 — 53 43
Refining EBITDA, Adjusted for Special Items 6,251 3,445 3,220 4,525 1,173 2,477 5,412
Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes 5 (4) 3 (3) — 1 1
Proportional share of selected equity affiliates net interest (118) (95) (19) — — (3) (6)
Proportional share of selected equity affiliates depreciation and amortization 236 237 245 252 257 268 272
Refining Adjusted EBITDA $ 6,374 3,583 3,449 4,774 1,430 2,743 5,679
NON-GAAP RECONCILIATION (SLIDE 16)
phillips66.com | NYSE: PSX26
Millions of Dollars
2012 2013 2014 2015 2016 2017 2018
Reconciliation of Marketing and 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
Plus:
Interest revenue — — — (2) — — —
Depreciation and amortization 147 103 95 97 107 112 114
Marketing and Specialties EBITDA 1,010 1,430 1,570 1,747 1,368 1,132 1,671
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
Marketing and Specialties EBITDA, Adjusted for Special Items 1,068 1,413 1,401 1,516 1,368 1,144 1,567
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
Proportional share of selected equity affiliates depreciation and amortization 11 12 11 11 12 11 11
Marketing and Specialties Adjusted EBITDA $ 1,090 1,434 1,418 1,533 1,380 1,156 1,582
NON-GAAP RECONCILIATION (SLIDE 16)
phillips66.com | NYSE: PSX27
Millions of Dollars
2012 2013 2014 2015 2016 2017 2018
Reconciliation of Corporate and Other Pre-Tax Loss to Adjusted EBITDA
Corporate and Other pre-tax loss $ (675) (695) (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 and Other EBITDA (423) (366) (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 and Other EBITDA, Adjusted for Special Items (313) (366) (329) (321) (349) (363) (322)
Other Adjustments (pre-tax):
None — — — — — — —
Corporate and Other Adjusted EBITDA $ (313) (366) (329) (321) (349) (363) (322)
NON-GAAP RECONCILIATION (SLIDE 16)