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  • Investor Update November 2016

    NYSE: PSX www.phillips66.com

  • 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.

  • Diversified Downstream Company

    3

    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

  • Corporate Strategy

    4

    Operating Excellence

    Growth

    Returns

    Distributions

    High-Performing Organization

    Committed to safety, reliability and environmental stewardship while protecting shareholder value

    Reshaping our portfolio by capturing growth opportunities in Midstream and Chemicals

    Enhancing returns by maximizing earnings from existing assets and investing capital efficiently

    Committed to dividend growth, share repurchases and financial strength

    Building capability, pursuing excellence and doing the right thing

  • Industry Average

    Operating Excellence

    5

    Total Recordable Rates (Incidents per 200,000 Hours Worked)

    ’12 ’13 ’14 ’15

    Refining Environmental Metrics

    Refining Capacity Utilization (%)

    Operating Costs and SG&A ($B)

    Phillips 66 CPChem DCP Midstream

    See appendix for footnotes.

    5.7 5.7 6.1 6.0 4.3

    2012 2013 2014 2015 3Q YTD 2016

    430 317 300 279 188

    2012 2013 2014 2015 3Q YTD 2016

    93% 93% 94% 91% 97%

    3% 3% 4% 5% 1%

    2012 2013 2014 2015 3Q YTD 2016

    Planned Maintenance & Turnarounds

    3Q YTD ‘16

  • 27 36 42 33 28

    2012 2013 2014 2015 3Q YTD 2016

    Energy Prices and Margins

    6

    112 109 99 52 42

    2012 2013 2014 2015 3Q YTD 2016

    Brent ($/bbl)

    82 90 89

    45 43

    2012 2013 2014 2015 3Q YTD 2016

    NGL Weighted Average (cpg) PE Cash Chain Margin (cpp)

    Global Market Crack ($/bbl)

    16.66 14.03 13.42 16.62 12.48

    2012 2013 2014 2015 3Q YTD 2016

    See appendix for footnotes.

  • Midstream

    7

    Integrated network Transportation DAPL/ETCOP Beaumont Terminal Bayou Bridge Bakken JVs

    NGL Sweeny Complex Sand Hills and Southern Hills JV Fractionators

    DCP Midstream Gathering and Processing

  • Sweeny Complex

    8

    Integrated world-scale midstream, refining and chemicals assets

    Sweeny Fractionator One Running to design

    LPG Export Terminal Commissioning and start-up 4Q 2016 Global LPG organization securing sales

    Narrow international export arb

    Platform for long-term earnings growth

  • Midstream Growth

    9

    EBITDA ($B)

    0.6 1.1

    0.4

    Current Operating

    Assets

    Growth Market 2018E Run-Rate

    Substantial backlog of investments

    Focus on enhancing and extending logistics around our assets

    Fewer near-term, large investment opportunities

    PSXP 2018E run-rate EBITDA of $1.1 B

    2018E EBITDA guidance reduced 10-20% from $2.3 B

    PSXP

    PSX

    ~ 2.3

    Current operating assets, as of October 31, 2016, including logistics assets included in Refining segment. See appendix for additional footnotes.

  • Phillips 66 Partners

    See appendix for footnotes.

    10

    Distribution / LP Unit ($) Distribution / LP Unit (cents)

    21.3 22.5 27.4 30.2

    31.7 34.0 37.0 40.0

    42.8 45.8 48.1 50.5

    53.1

    3Q 2013

    4Q 2013

    1Q 2014

    2Q 2014

    3Q 2014

    4Q 2014

    1Q 2015

    2Q 2015

    3Q 2015

    4Q 2015

    1Q 2016

    2Q 2016

    3Q 2016

    Coverage Ratio 1.13x 1.10x 1.10x 1.44x 1.32x 1.28x 1.14x 1.15x 1.40x 1.44x 1.15x 1.21x 1.24x

    Strong sponsorship

    Access to capital markets

    Organic opportunities

    Recent acquisitions

    Distribution guidance unchanged

  • PSXP Value to PSX

    11

    Attractive cost of capital

    Growing distributions

    Funding Midstream growth

    PSX multiple uplift

    Cumulative Dropdown Proceeds ($B)

    Cumulative LP & GP Distributions ($MM)

    0.5 1.8 2.7

    2013 2014 2015 3Q YTD 2016

    0

    20 96

    232

    387

    2013 2014 2015 3Q YTD 2016

    Limited Partner General PartnerSee appendix for footnotes.

  • DCP Midstream

    12

    Self-help initiatives to improve cash flow

    Operating and cost improvements

    Contract realignment

    Portfolio optimization

    Capital discipline

    Strengthened balance sheet

    Expect to be self-funding

    NGL Production (MBD)

    402 426 454 410 400

    2012 2013 2014 2015 3Q YTD 2016

    DCP Midstream Adjusted EBITDA ($MM)

    DCP Midstream adjusted EBITDA represents Phillips 66’s share. See appendix for additional footnotes.

    495 585 487

    170 205

    2012 2013 2014 2015 3Q YTD 2016

  • Source: Wood Mackenzie, as of August 2016.

    Chemicals

    13

    Middle East and North America NGL continue advantaged feedstock position

    Petrochemical production costs reduced globally

    Ethane available to supply new U.S. crackers

    2016E Average Ethylene Production Cost Curve ($/ton)

    Cumulative Capacity MM Tons

    0

    150

    300

    450

    600

    750

    0 15 30 45 60 75 90 105 120 135 150

    CPChem

    M.E. Ethane

    N.A. LPG N.A. Ethane

    M.E. LPG/Naphtha

    W. Europe Naphtha

    N.A. Naphtha

    W. Europe LPG

    Asia Naphtha

    Asia LPG/Ethane Rest of World

    Asia Coal

  • CPChem

    14

    USGC Petrochemicals Project

    1,000 kMTA (polyethylene) at Old Ocean, TX

    Start-up expected mid-2017 1,500 kMTA (ethylene) at Cedar Bayou, TX

    Start-up expected 2H 2017

    Expect increased distributions USGC project completion 2018 capital spend ~ $1 B Incremental EBITDA ~ $1 B

    Next major project FID post-2018

    EBITDA estimate is on a CPChem 100% basis and is based on January 2016 IHS forecast premises.

    CPChem USGC Ethane Cracker, Baytown, TX

  • Refining

    15

    Diversified portfolio

    Enhancing returns

    Portfolio management

    Yield enhancement

    Feedstock flexibility

    Growing export capacity

    Platform for Midstream growth

  • Refining Discipline

    16 See appendix for footnotes.

    (0.2) 1.5

    3.7

    6.4

    3.6 3.4 4.8 1.3

    3.3

    2009 2010 2011 2012 2013 2014 2015 3Q YTD 2016

    Adjusted EBITDA ($B) Operating excellence

    Volatile business

    Market cracks

    Crude differentials

    Regulatory environment

    Significant source of cash

    Run well and optimize business

    2009–2015 Average

    0.7 0.8 1.0 1.1 1.

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