Uploaded byinvestor_phillips66
PDF, PPTX229 views

Phillips 66 Third-Quarter Earnings Conference Call

Phillips 66 reported adjusted earnings of $1.6 billion for the third quarter of 2015. The company's adjusted earnings per share were $3.02. Operating cash flow excluding working capital was $1.5 billion for the quarter. Capital expenditures and investments totaled $1 billion. The company's adjusted net debt-to-capital ratio was 12% at the end of the third quarter.

Embed presentation

Download as PDF, PPTX
PHILLIPS 66 THIRD QUARTER CONFERENCE CALL October 30, 2015
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,” “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 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; 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. CAUTIONARY STATEMENT 2
3 EXECUTING STRATEGY
4 OVERVIEW 3Q 2015 Adjusted Earnings $1.6 B Adjusted EPS $3.02 Operating cash flow excluding working capital $1.5 B Capital expenditures and investments $1.0 B Shareholder distributions $673 MM Adjusted net debt-to-capital ratio 12% Annualized adjusted YTD ROCE 15% Shareholder distributions include dividends and share repurchases Adjusted net debt-to-capital ratio excludes the impacts of PSXP
1,002 1,647 43 (23) 448 162 15 2Q 2015 Adjusted Earnings Midstream Chemicals Refining Marketing & Specialties Corporate & Other 3Q 2015 Adjusted Earnings 3Q 2015 Adjusted Earnings $MM 91 (112)1,052272 344 ADJUSTED EARNINGS 3Q 2015 VS. 2Q 2015 5
6 MIDSTREAM OVERVIEW 3Q 2015 Transportation Higher volumes, lower operating costs NGL Strong margins PSXP Distributions up 7% DCP Midstream Improved marketing margins ROCE 5% ROCE is annualized adjusted YTD
48 91 12 24 7 2Q 2015 Adjusted Earnings Transportation NGL DCP Midstream 3Q 2015 Adjusted Earnings $MM MIDSTREAM 3Q 2015 VS. 2Q 2015 77 32 (18) 3Q 2015 Adjusted Earnings 7
8 CHEMICALS OVERVIEW 3Q 2015 Olefins & Polyolefins Higher volumes and lower costs Specialties, Aromatics & Styrenics Lower margins and volumes ROCE 21% ROCE is annualized adjusted YTD
295 272 (6) (21) 4 2Q 2015 Adjusted Earnings Olefins & Polyolefins Specialties, Aromatics & Styrenics Other 3Q 2015 Adjusted Earnings $MM CHEMICALS 3Q 2015 VS. 2Q 2015 9 3Q 2015 Adjusted Earnings 261 (6)17
10 REFINING OVERVIEW 3Q 2015 Realized refining margin $13.96/BBL Worldwide market capture 72% Refining crude utilization 96% Clean product yield 84% ROCE 21% ROCE is annualized adjusted YTD
604 1,052 103 202 156 (13) 2Q 2015 Adjusted Earnings Atlantic Basin / Europe Gulf Coast Central Corridor Western / Pacific 3Q 2015 Adjusted Earnings $MM REFINING 3Q 2015 VS. 2Q 2015 11 193 372285 202 3Q 2015 Adjusted Earnings
19.51 13.96 (4.14) (2.47) 0.75 0.31 Market 3:2:1 Configuration Secondary Products Feedstock Other Realized Margin WORLDWIDE REFINING $/BBL REFINING MARGINS – MARKET VS. REALIZED 3Q 2015 12 Avg Market Crude: $49.54/BBL 96% Crude Capacity Utilization 72% Market Capture
13 MARKETING AND SPECIALTIES OVERVIEW 3Q 2015 Marketing Higher global margins and volumes Specialties Strong lubricants margins ROCE 33% ROCE is annualized adjusted YTD
182 344 157 5 2Q 2015 Adjusted Earnings Marketing & Other Specialties 3Q 2015 Adjusted Earnings $MM MARKETING AND SPECIALTIES 3Q 2015 VS. 2Q 2015 14 291 53 3Q 2015 Adjusted Earnings
(127) (112) 6 3 6 2Q 2015 Adjusted Net Loss Net Interest Expense Corporate Overhead Other 3Q 2015 Adjusted Net Loss $MM CORPORATE AND OTHER 3Q 2015 VS. 2Q 2015 15
22.4 22.0 22.6 23.2 24.0 22.0 21.6 21.8 22.4 23.2 6.2 8.7 8.9 9.0 9.0 6.2 8.7 7.8 7.9 7.9 5.4 5.2 5.4 5.1 4.8 5.0 5.2 5.3 5.0 4.7 22% 28% 28% 28% 27% 22% 29% 26% 26% 25% 2013 2014 1Q 2015 2Q 2015 3Q 2015 2013 2014 1Q 2015 2Q 2015 3Q 2015 Equity $B Debt $B Cash & Cash Equivalents $B Debt-to-Capital 20%-30% CAPITAL STRUCTURE 2013 – 3Q 2015 16 Consolidated PSX Excluding PSXP
5.2 4.8 4.1 0.1 1.5 (0.8) (3.3) (2.0) December 2014 Cash Balance* CFO (excluding working capital) Working Capital PSXP Bond & Equity Proceeds Debt Repayment Capital Expenditures & Investments Shareholder Distributions September 2015 Cash Balance* $B CASH FLOW YTD 2015 17 * Includes cash and cash equivalents
18 Global Olefins & Polyolefins utilization Mid-90% Refining crude utilization Mid-90% 2015 full year consolidated capital expenditures $4.3 B Effective income tax rate Mid-30% Corporate & Other costs (after-tax) $110 MM - $120 MM OUTLOOK 4Q 2015 Refining turnaround expenses (pre-tax) ~$150 MM DCP equity contribution $1.5 B
PHILLIPS 66 THIRD QUARTER 2015 CONFERENCE CALL Questions and Answers
PHILLIPS 66 THIRD QUARTER 2015 CONFERENCE CALL Appendix
ESTIMATED SENSITIVITIES 2015 21Sensitivities shown above are independent and are only valid within a limited price range Annual Net Income $MM Midstream - DCP (net to Phillips 66) 10¢/Gal Increase in NGL price 30 $1/MMBtu Increase in Natural Gas price 25 $10/BBL Increase in WTI price 15 Chemicals - CPChem (net to Phillips 66) 1¢/Lb Increase in Chain Margin (Ethylene, Polyethylene, NAO) 35 Worldwide Refining $1/BBL Increase in Gasoline Margin 220 $1/BBL Increase in Distillate Margin 200 $1/BBL Widening LLS / Maya Differential (LLS less Maya) 50 $1/BBL Widening WTI / WCS Differential (WTI less WCS) 40 $1/BBL Widening WTI / WTS Differential (WTI less WTS) 15 $1/BBL Widening LLS / Medium Sour Differential (LLS less Medium Sour) 15 $1/BBL Widening ANS / WCS Differential (ANS less WCS) 10 10¢/MMBtu Increase in Natural Gas price (10) Impacts due to Actual Crude Feedstock Differing from Feedstock Assumed in Market Indicators:
18.32 10.27 (3.96) (1.14) (2.06) (0.89) Market 3:2:1 Configuration Secondary Products Feedstock Other Realized Margin ATLANTIC BASIN / EUROPE $/BBL REFINING MARGINS – MARKET VS. REALIZED 3Q 2015 22 Market 3:2:1 – Dated Brent / Gasoline 83.7 RBOB NYH / Diesel 15ppm NYH Brent: $50.26/BBL 97% Crude Capacity Utilization 56% Market Capture
13.34 10.72 (3.07) (3.26) 2.00 1.71 Market 3:2:1 Configuration Secondary Products Feedstock Other Realized Margin GULF COAST $/BBL REFINING MARGINS – MARKET VS. REALIZED 3Q 2015 23 Market 3:2:1 – LLS / Gasoline 85 CBOB / Diesel 61 8ppm LLS: $50.13/BBL 100% Crude Capacity Utilization 80% Market Capture
22.03 20.97 (2.91) (2.18) 1.10 2.93 Market 3:2:1 Configuration Secondary Products Feedstock Other Realized Margin CENTRAL CORRIDOR $/BBL REFINING MARGINS – MARKET VS. REALIZED 3Q 2015 24 Market 3:2:1 – WTI / Gasoline Unl Sub Octane Group 3 / ULSD Group 3 WTI: $46.37/BBL 91% Crude Capacity Utilization 95% Market Capture
30.69 18.29 (6.30) (3.53) 2.68 (5.25) Market 3:2:1 Configuration Secondary Products Feedstock Other Realized Margin WESTERN / PACIFIC $/BBL REFINING MARGINS – MARKET VS. REALIZED 3Q 2015 25 Market 3:2:1 – ANS Spot / Los Angeles CARBOB / Los Angeles No. 2 CARB ANS: $51.44/BBL 96% Crude Capacity Utilization 60% Market Capture
1,140 1,647 (24) (27) 494 85 (21) 3Q 2014 Adjusted Earnings Midstream Chemicals Refining Marketing & Specialties Corporate & Other 3Q 2015 Adjusted Earnings 3Q 2015 Adjusted Earnings $MM 91 (112)1,052272 344 ADJUSTED EARNINGS 3Q 2015 VS. 3Q 2014 26
115 91 19 6 (49) 3Q 2014 Adjusted Earnings Transportation NGL DCP Midstream 3Q 2015 Adjusted Earnings $MM MIDSTREAM 3Q 2015 VS. 3Q 2014 27 77 32 (18) 3Q 2015 Adjusted Earnings
299 272 2 (29) 0 3Q 2014 Adjusted Earnings Olefins & Polyolefins Specialties, Aromatics & Styrenics Other 3Q 2015 Adjusted Earnings $MM CHEMICALS 3Q 2015 VS. 3Q 2014 28 261 (6)17 3Q 2015 Adjusted Earnings
558 1,052 53 219 44 178 3Q 2014 Adjusted Earnings Atlantic Basin / Europe Gulf Coast Central Corridor Western / Pacific 3Q 2015 Adjusted Earnings $MM REFINING 3Q 2015 VS. 3Q 2014 29 193 372285 202 3Q 2015 Adjusted Earnings
259 344 75 10 3Q 2014 Adjusted Earnings Marketing & Other Specialties 3Q 2015 Adjusted Earnings $MM MARKETING AND SPECIALTIES 3Q 2015 VS. 3Q 2014 30 291 53 3Q 2015 Adjusted Earnings
(91) (112) (7) (1) (13) 3Q 2014 Adjusted Net Loss Net Interest Expense Corporate Overhead Other 3Q 2015 Adjusted Net Loss $MM CORPORATE AND OTHER 3Q 2015 VS. 3Q 2014 31
5.1 4.8 0.0 1.5 (1.0) (0.7) (0.1) June 30 Cash Balance* CFO (excluding working capital) Working Capital Capital Expenditures & Investments Shareholder Distributions Other September 30 Cash Balance* $B CASH FLOW 3Q 2015 32 * Includes cash and cash equivalents
33 NON-GAAP RECONCILIATIONS Sep YTD 3Q 2Q Sep YTD 3Q Phillips 66 Net Income (Loss) Attributable to Phillips 66 3,577$ 1,578$ 1,012$ 3,615$ 1,180$ Adjustments: Asset dispositions (265) (18) (132) (109) (109) Pension settlement expense 46 46 - - - Impairments by equity affiliates 148 22 126 69 69 Pending claims and settlements (23) 19 (4) - - Discontinued Operations - - - (706) - Adjusted Net Income (Loss) Attributable to Phillips 66 3,483$ 1,647$ 1,002$ 2,869$ 1,140$ Net Income (Loss) Attributable to Phillips 66 Per Share of Common Stock (dollars) 6.52$ 2.90$ 1.84$ 6.28$ 2.09$ Adjusted Net Income (Loss) Attributable to Phillips 66 Per Share of Common Stock (dollars) 6.34$ 3.02$ 1.83$ 4.98$ 2.02$ Millions of Dollars Except as Indicated 2015 2014
34 NON-GAAP RECONCILIATIONS Sep YTD 3Q 2Q Sep YTD 3Q Midstream Net Income (Loss) Attributable to Phillips 66 90$ 101$ (78)$ 411$ 115$ Adjustments: Pension settlement expense 6 6 - - - Impairments by equity affiliates 128 2 126 - - Asset dispositions (18) (18) - - - Adjusted Net Income (Loss) Attributable to Phillips 66 206$ 91$ 48$ 411$ 115$ Chemicals Net Income (Loss) Attributable to Phillips 66 750$ 252$ 295$ 870$ 230$ Adjustments: Impairments by equity affiliates 20 20 - 69 69 Adjusted Net Income (Loss) Attributable to Phillips 66 770$ 272$ 295$ 939$ 299$ Millions of Dollars Except as Indicated 2015 2014
35 NON-GAAP RECONCILIATIONS Sep YTD 3Q 2Q Sep YTD 3Q Refining Net Income (Loss) Attributable to Phillips 66 2,145$ 1,003$ 604$ 1,254$ 558$ Adjustments: Asset dispositions (5) - - - - Pension settlement expense 30 30 - - - Pending claims and settlements (19) 19 - - - Adjusted Net Income (Loss) Attributable to Phillips 66 2,151$ 1,052$ 604$ 1,254$ 558$ Marketing & Specialties Net Income (Loss) Attributable to Phillips 66 956$ 338$ 314$ 667$ 368$ Adjustments: Asset dispositions (242) - (132) (109) (109) Pension settlement expense 6 6 - - - Adjusted Net Income (Loss) Attributable to Phillips 66 720$ 344$ 182$ 558$ 259$ Corporate and Other Net Income (Loss) Attributable to Phillips 66 (364)$ (116)$ (123)$ (293)$ (91)$ Adjustments: Pension settlement expense 4 4 - - - Pending claims and settlements (4) - (4) - - Adjusted Net Income (Loss) Attributable to Phillips 66 (364)$ (112)$ (127)$ (293)$ (91)$ 2015 2014 Millions of Dollars Except as Indicated
36 NON-GAAP RECONCILIATIONS Sep YTD 3Q 2Q Sep YTD 3Q Midstream - Transportation Net Income (Loss) Attributable to Phillips 66 207$ 77$ 65$ 180$ 58$ Adjustments: Adjusted Net Income (Loss) Attributable to Phillips 66 207$ 77$ 65$ 180$ 58$ Midstream - NGL Net Income (Loss) Attributable to Phillips 66 48$ 26$ 8$ 84$ 26$ Adjustments: Pension settlement expense 6 6 - - - Adjusted Net Income (Loss) Attributable to Phillips 66 54$ 32$ 8$ 84$ 26$ Midstream - DCP Midstream Net Income (Loss) Attributable to Phillips 66 (165)$ (2)$ (151)$ 147$ 31$ Adjustments: Impairments by equity affiliates 128 2 126 - - Asset dispositions (18) (18) - - - Adjusted Net Income (Loss) Attributable to Phillips 66 (55)$ (18)$ (25)$ 147$ 31$ Millions of Dollars Except as Indicated 2015 2014
37 NON-GAAP RECONCILIATIONS Sep YTD 3Q 2Q Sep YTD 3Q Refining - Atlantic Basin / Europe Net Income (Loss) Attributable to Phillips 66 383$ 180$ 90$ 141$ 140$ Adjustments: Pension settlement expense 8 8 - - - Pending claims and settlements (33) 5 - - - Adjusted Net Income (Loss) Attributable to Phillips 66 358$ 193$ 90$ 141$ 140$ Refining - Gulf Coast Net Income (Loss) Attributable to Phillips 66 423$ 269$ 83$ 263$ 66$ Adjustments: Pension settlement expense 10 10 - - - Pending claims and settlements 6 6 - - - Adjusted Net Income (Loss) Attributable to Phillips 66 439$ 285$ 83$ 263$ 66$ Millions of Dollars Except as Indicated 2015 2014
38 NON-GAAP RECONCILIATIONS Sep YTD 3Q 2Q Sep YTD 3Q Refining - Central Corridor Net Income (Loss) Attributable to Phillips 66 771$ 360$ 216$ 785$ 328$ Adjustments: Pension settlement expense 7 7 - - - Pending claims and settlements 5 5 - - - Adjusted Net Income (Loss) Attributable to Phillips 66 783$ 372$ 216$ 785$ 328$ Refining - Western / Pacific Net Income (Loss) Attributable to Phillips 66 568$ 194$ 215$ 65$ 24$ Adjustments: Pension settlement expense 5 5 - - - Pending claims and settlements 3 3 - - - Asset dispositions (5) - - - - Adjusted Net Income (Loss) Attributable to Phillips 66 571$ 202$ 215$ 65$ 24$ Millions of Dollars Except as Indicated 2015 2014
39 NON-GAAP RECONCILIATIONS Sep YTD 3Q 2Q Sep YTD 3Q Marketing & Specialties - Marketing & Other Net Income (Loss) Attributable to Phillips 66 805$ 285$ 266$ 537$ 325$ Adjustments: Asset dispositions (242) - (132) (109) (109) Pension settlement expense 6 6 - - - Adjusted Net Income (Loss) Attributable to Phillips 66 569$ 291$ 134$ 428$ 216$ Marketing & Specialties - Specialties Net Income (Loss) Attributable to Phillips 66 151$ 53$ 48$ 130$ 43$ Adjustments: Adjusted Net Income (Loss) Attributable to Phillips 66 151$ 53$ 48$ 130$ 43$ Millions of Dollars Except as Indicated 20142015
2015 YTD Phillips 66 Midstream Chemicals Refining Marketing & Specialties Numerator ($MM) Net Income 3,614 132 750 2,145 956 After-tax interest expense 153 - - - - GAAP ROCE earnings 3,767 132 750 2,145 956 Special Items (94) 116 20 6 (236) Adjusted ROCE earnings 3,673 248 770 2,151 720 Denominator ($MM) GAAP average capital employed* 31,853 6,104 4,883 13,637 2,933 2015 Annualized Adjusted YTD ROCE 15% 5% 21% 21% 33% 2015 Annualized GAAP YTD ROCE 16% 3% 20% 21% 43% 40* Total equity plus total debt NON-GAAP RECONCILIATIONS
41 NON-GAAP RECONCILIATIONS Phillips 66 Consolidated Phillips 66 Partners Adjusted Phillips 66 Total Debt 8,951$ 1,100$ 7,851$ Total Equity 24,032$ 805$ 23,227$ Debt-to-Capital Ratio 27% 25% Total Cash 4,822$ 73$ 4,749$ Net-Debt-to-Capital Ratio 15% 12% 2015 3Q Millions of Dollars
42 NON-GAAP RECONCILIATIONS Millions of Dollars 2015 3Q Effective Tax Rates Income before taxes 2,359$ Special items 99$ Adjusted income before taxes 2,458$ Provision for taxes 767$ Special items 30$ Adjusted provision for taxes 797$ GAAP effective tax rate 33% Adjusted effective tax rate 32%

More Related Content

PDF
Q1 2017 press release slides final
byinvestor_phillips66
 
PDF
Investor update nov 2015 v5
byinvestor_phillips66
 
PDF
Q2 2017 press release slides final
byinvestor_phillips66
 
PDF
Phillips 66 Fourth-Quarter Earnings Conference Call
byinvestor_phillips66
 
PDF
Q2 2016 operations report final as published
byEnLinkMidstreamLLC
 
PDF
Q3 15 earnings slides-final
byInvestorBruker
 
PDF
Psx 2017 baml conference presentation final for posting
byinvestor_phillips66
 
PDF
Management Investor Presentation - Q2 2015
byRioCan
 
Q1 2017 press release slides final
byinvestor_phillips66
 
Investor update nov 2015 v5
byinvestor_phillips66
 
Q2 2017 press release slides final
byinvestor_phillips66
 
Phillips 66 Fourth-Quarter Earnings Conference Call
byinvestor_phillips66
 
Q2 2016 operations report final as published
byEnLinkMidstreamLLC
 
Q3 15 earnings slides-final
byInvestorBruker
 
Psx 2017 baml conference presentation final for posting
byinvestor_phillips66
 
Management Investor Presentation - Q2 2015
byRioCan
 

What's hot

PDF
Management Investor Presentation - Year End 2015
byRioCan
 
PDF
Q3 16 slides ugi-v_final
byUGI_Corporation
 
PDF
2016 shareholdermeetingfinal
byinvestor_phillips66
 
PDF
En link midstream 3q 2016 operations report final
byEnLinkMidstreamLLC
 
PDF
Visão Geral da Petrobras
byPetrobras
 
PDF
Teekay Corporation Q2-2019 Earnings Presentation
byTeekay Corporation
 
PDF
4 q15 earnings slide deck final
byinvestorswci
 
PDF
Sun investor presentation may 2018 final
bySunocoLP
 
PDF
Apresentação de Pedro Parente no Investor Day Londres
byPetrobras
 
PDF
February 2017 enlk and enlc operations report
byEnLinkMidstreamLLC
 
PDF
2017 12 capital one conference final
byDenbury
 
PDF
Arex 3 q15 results presentation
byApproachResources
 
PDF
Webcast 4Q15
byPetrobras
 
PDF
Constellation Energy Partners - Q4 2013
byBRS Resources Ltd.
 
PDF
1 q16 earnings-presentation-final
byinvestorswci
 
PDF
Teekay Corporation Q3-2015 Earnings Presentation
byTeekay Corporation
 
PDF
Am website presentation november 2016
byanteromidstream
 
PDF
Fy17 q2 slides ameri-gas_vfinal
byAmeriGas
 
PDF
Q1 16 slides ugi-v_final
byAmeriGas
 
Management Investor Presentation - Year End 2015
byRioCan
 
Q3 16 slides ugi-v_final
byUGI_Corporation
 
2016 shareholdermeetingfinal
byinvestor_phillips66
 
En link midstream 3q 2016 operations report final
byEnLinkMidstreamLLC
 
Visão Geral da Petrobras
byPetrobras
 
Teekay Corporation Q2-2019 Earnings Presentation
byTeekay Corporation
 
4 q15 earnings slide deck final
byinvestorswci
 
Sun investor presentation may 2018 final
bySunocoLP
 
Apresentação de Pedro Parente no Investor Day Londres
byPetrobras
 
February 2017 enlk and enlc operations report
byEnLinkMidstreamLLC
 
2017 12 capital one conference final
byDenbury
 
Arex 3 q15 results presentation
byApproachResources
 
Webcast 4Q15
byPetrobras
 
Constellation Energy Partners - Q4 2013
byBRS Resources Ltd.
 
1 q16 earnings-presentation-final
byinvestorswci
 
Teekay Corporation Q3-2015 Earnings Presentation
byTeekay Corporation
 
Am website presentation november 2016
byanteromidstream
 
Fy17 q2 slides ameri-gas_vfinal
byAmeriGas
 
Q1 16 slides ugi-v_final
byAmeriGas
 

Similar to Phillips 66 Third-Quarter Earnings Conference Call

PDF
PHILLIPS 66 FIRST QUARTER CONFERENCE CALL
byinvestor_phillips66
 
PDF
Psx q3 2016 earnings slides final
byinvestor_phillips66
 
PDF
Psx q2 2016 press release slides final
byinvestor_phillips66
 
PDF
Phillips 66 Fourth-Quarter Earnings Conference Call
byinvestor_phillips66
 
PDF
Phillips66 Q4 2014 Press Release Slides
byinvestor_phillips66
 
PDF
Phillips 66 2015 baml-p66.com
byinvestor_phillips66
 
PDF
2015 credit suisse final
byinvestor_phillips66
 
PDF
Investor Update - February 2016
byinvestor_phillips66
 
PDF
Phillips 66 -2015-investor-update-1_q-2015_p66-com
byinvestor_phillips66
 
PDF
Investor update feb 2016 final
byinvestor_phillips66
 
PDF
2015 credit-suisse-final v001-h4mb7r
byinvestor_phillips66
 
PDF
Investor Update September 2015
byinvestor_phillips66
 
PDF
Investor update march 2016 website
byinvestor_phillips66
 
PDF
Barclays Energy Conference - 2014
byinvestor_phillips66
 
PDF
2015 citi may presentation-final
byinvestor_phillips66
 
PDF
2014 baml-presentation
byinvestor_phillips66
 
PDF
Q22015 investorupdatepsxpsxp
byinvestor_phillips66
 
PDF
Phillips 66 ubs austin 2014 final 2014-08-14
byinvestor_phillips66
 
PDF
bp 3Q 2020 financial results
bybp
 
PDF
Arex 4 q and fy15 results presentation
byApproachResources
 
PHILLIPS 66 FIRST QUARTER CONFERENCE CALL
byinvestor_phillips66
 
Psx q3 2016 earnings slides final
byinvestor_phillips66
 
Psx q2 2016 press release slides final
byinvestor_phillips66
 
Phillips 66 Fourth-Quarter Earnings Conference Call
byinvestor_phillips66
 
Phillips66 Q4 2014 Press Release Slides
byinvestor_phillips66
 
Phillips 66 2015 baml-p66.com
byinvestor_phillips66
 
2015 credit suisse final
byinvestor_phillips66
 
Investor Update - February 2016
byinvestor_phillips66
 
Phillips 66 -2015-investor-update-1_q-2015_p66-com
byinvestor_phillips66
 
Investor update feb 2016 final
byinvestor_phillips66
 
2015 credit-suisse-final v001-h4mb7r
byinvestor_phillips66
 
Investor Update September 2015
byinvestor_phillips66
 
Investor update march 2016 website
byinvestor_phillips66
 
Barclays Energy Conference - 2014
byinvestor_phillips66
 
2015 citi may presentation-final
byinvestor_phillips66
 
2014 baml-presentation
byinvestor_phillips66
 
Q22015 investorupdatepsxpsxp
byinvestor_phillips66
 
Phillips 66 ubs austin 2014 final 2014-08-14
byinvestor_phillips66
 
bp 3Q 2020 financial results
bybp
 
Arex 4 q and fy15 results presentation
byApproachResources
 

Phillips 66 Third-Quarter Earnings Conference Call

  • 1.
    PHILLIPS 66 THIRD QUARTERCONFERENCE CALL October 30, 2015
  • 2.
    This presentation containscertain 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,” “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 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; 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. CAUTIONARY STATEMENT 2
  • 3.
  • 4.
    4 OVERVIEW 3Q 2015 Adjusted Earnings$1.6 B Adjusted EPS $3.02 Operating cash flow excluding working capital $1.5 B Capital expenditures and investments $1.0 B Shareholder distributions $673 MM Adjusted net debt-to-capital ratio 12% Annualized adjusted YTD ROCE 15% Shareholder distributions include dividends and share repurchases Adjusted net debt-to-capital ratio excludes the impacts of PSXP
  • 5.
    1,002 1,647 43 (23) 448 162 15 2Q 2015 Adjusted Earnings MidstreamChemicals Refining Marketing & Specialties Corporate & Other 3Q 2015 Adjusted Earnings 3Q 2015 Adjusted Earnings $MM 91 (112)1,052272 344 ADJUSTED EARNINGS 3Q 2015 VS. 2Q 2015 5
  • 6.
    6 MIDSTREAM OVERVIEW 3Q 2015 TransportationHigher volumes, lower operating costs NGL Strong margins PSXP Distributions up 7% DCP Midstream Improved marketing margins ROCE 5% ROCE is annualized adjusted YTD
  • 7.
    48 91 12 24 7 2Q 2015 Adjusted Earnings Transportation NGLDCP Midstream 3Q 2015 Adjusted Earnings $MM MIDSTREAM 3Q 2015 VS. 2Q 2015 77 32 (18) 3Q 2015 Adjusted Earnings 7
  • 8.
    8 CHEMICALS OVERVIEW 3Q 2015 Olefins& Polyolefins Higher volumes and lower costs Specialties, Aromatics & Styrenics Lower margins and volumes ROCE 21% ROCE is annualized adjusted YTD
  • 9.
    295 272 (6) (21) 4 2Q 2015 Adjusted Earnings Olefins & Polyolefins Specialties, Aromatics& Styrenics Other 3Q 2015 Adjusted Earnings $MM CHEMICALS 3Q 2015 VS. 2Q 2015 9 3Q 2015 Adjusted Earnings 261 (6)17
  • 10.
    10 REFINING OVERVIEW 3Q 2015 Realizedrefining margin $13.96/BBL Worldwide market capture 72% Refining crude utilization 96% Clean product yield 84% ROCE 21% ROCE is annualized adjusted YTD
  • 11.
    604 1,052 103 202 156 (13) 2Q 2015 Adjusted Earnings Atlantic Basin / Europe GulfCoast Central Corridor Western / Pacific 3Q 2015 Adjusted Earnings $MM REFINING 3Q 2015 VS. 2Q 2015 11 193 372285 202 3Q 2015 Adjusted Earnings
  • 12.
    19.51 13.96 (4.14) (2.47) 0.75 0.31 Market 3:2:1 Configuration Secondary Products FeedstockOther Realized Margin WORLDWIDE REFINING $/BBL REFINING MARGINS – MARKET VS. REALIZED 3Q 2015 12 Avg Market Crude: $49.54/BBL 96% Crude Capacity Utilization 72% Market Capture
  • 13.
    13 MARKETING AND SPECIALTIESOVERVIEW 3Q 2015 Marketing Higher global margins and volumes Specialties Strong lubricants margins ROCE 33% ROCE is annualized adjusted YTD
  • 14.
    182 344 157 5 2Q 2015 Adjusted Earnings Marketing &Other Specialties 3Q 2015 Adjusted Earnings $MM MARKETING AND SPECIALTIES 3Q 2015 VS. 2Q 2015 14 291 53 3Q 2015 Adjusted Earnings
  • 15.
    (127) (112) 6 3 6 2Q 2015 Adjusted NetLoss Net Interest Expense Corporate Overhead Other 3Q 2015 Adjusted Net Loss $MM CORPORATE AND OTHER 3Q 2015 VS. 2Q 2015 15
  • 16.
    22.4 22.0 22.6 23.2 24.0 22.0 21.6 21.8 22.4 23.2 6.2 8.78.9 9.0 9.0 6.2 8.7 7.8 7.9 7.9 5.4 5.2 5.4 5.1 4.8 5.0 5.2 5.3 5.0 4.7 22% 28% 28% 28% 27% 22% 29% 26% 26% 25% 2013 2014 1Q 2015 2Q 2015 3Q 2015 2013 2014 1Q 2015 2Q 2015 3Q 2015 Equity $B Debt $B Cash & Cash Equivalents $B Debt-to-Capital 20%-30% CAPITAL STRUCTURE 2013 – 3Q 2015 16 Consolidated PSX Excluding PSXP
  • 17.
    5.2 4.8 4.1 0.1 1.5 (0.8) (3.3) (2.0) December 2014Cash Balance* CFO (excluding working capital) Working Capital PSXP Bond & Equity Proceeds Debt Repayment Capital Expenditures & Investments Shareholder Distributions September 2015 Cash Balance* $B CASH FLOW YTD 2015 17 * Includes cash and cash equivalents
  • 18.
    18 Global Olefins &Polyolefins utilization Mid-90% Refining crude utilization Mid-90% 2015 full year consolidated capital expenditures $4.3 B Effective income tax rate Mid-30% Corporate & Other costs (after-tax) $110 MM - $120 MM OUTLOOK 4Q 2015 Refining turnaround expenses (pre-tax) ~$150 MM DCP equity contribution $1.5 B
  • 19.
    PHILLIPS 66 THIRD QUARTER2015 CONFERENCE CALL Questions and Answers
  • 20.
    PHILLIPS 66 THIRD QUARTER2015 CONFERENCE CALL Appendix
  • 21.
    ESTIMATED SENSITIVITIES 2015 21Sensitivities shownabove are independent and are only valid within a limited price range Annual Net Income $MM Midstream - DCP (net to Phillips 66) 10¢/Gal Increase in NGL price 30 $1/MMBtu Increase in Natural Gas price 25 $10/BBL Increase in WTI price 15 Chemicals - CPChem (net to Phillips 66) 1¢/Lb Increase in Chain Margin (Ethylene, Polyethylene, NAO) 35 Worldwide Refining $1/BBL Increase in Gasoline Margin 220 $1/BBL Increase in Distillate Margin 200 $1/BBL Widening LLS / Maya Differential (LLS less Maya) 50 $1/BBL Widening WTI / WCS Differential (WTI less WCS) 40 $1/BBL Widening WTI / WTS Differential (WTI less WTS) 15 $1/BBL Widening LLS / Medium Sour Differential (LLS less Medium Sour) 15 $1/BBL Widening ANS / WCS Differential (ANS less WCS) 10 10¢/MMBtu Increase in Natural Gas price (10) Impacts due to Actual Crude Feedstock Differing from Feedstock Assumed in Market Indicators:
  • 22.
    18.32 10.27 (3.96) (1.14) (2.06) (0.89) Market 3:2:1 Configuration Secondary Products Feedstock OtherRealized Margin ATLANTIC BASIN / EUROPE $/BBL REFINING MARGINS – MARKET VS. REALIZED 3Q 2015 22 Market 3:2:1 – Dated Brent / Gasoline 83.7 RBOB NYH / Diesel 15ppm NYH Brent: $50.26/BBL 97% Crude Capacity Utilization 56% Market Capture
  • 23.
    13.34 10.72 (3.07) (3.26) 2.00 1.71 Market 3:2:1 Configuration Secondary Products Feedstock OtherRealized Margin GULF COAST $/BBL REFINING MARGINS – MARKET VS. REALIZED 3Q 2015 23 Market 3:2:1 – LLS / Gasoline 85 CBOB / Diesel 61 8ppm LLS: $50.13/BBL 100% Crude Capacity Utilization 80% Market Capture
  • 24.
    22.03 20.97 (2.91) (2.18) 1.10 2.93 Market 3:2:1 Configuration Secondary Products FeedstockOther Realized Margin CENTRAL CORRIDOR $/BBL REFINING MARGINS – MARKET VS. REALIZED 3Q 2015 24 Market 3:2:1 – WTI / Gasoline Unl Sub Octane Group 3 / ULSD Group 3 WTI: $46.37/BBL 91% Crude Capacity Utilization 95% Market Capture
  • 25.
    30.69 18.29 (6.30) (3.53) 2.68 (5.25) Market 3:2:1 Configuration Secondary Products Feedstock OtherRealized Margin WESTERN / PACIFIC $/BBL REFINING MARGINS – MARKET VS. REALIZED 3Q 2015 25 Market 3:2:1 – ANS Spot / Los Angeles CARBOB / Los Angeles No. 2 CARB ANS: $51.44/BBL 96% Crude Capacity Utilization 60% Market Capture
  • 26.
    1,140 1,647 (24) (27) 494 85 (21) 3Q 2014 Adjusted Earnings MidstreamChemicals Refining Marketing & Specialties Corporate & Other 3Q 2015 Adjusted Earnings 3Q 2015 Adjusted Earnings $MM 91 (112)1,052272 344 ADJUSTED EARNINGS 3Q 2015 VS. 3Q 2014 26
  • 27.
    115 91 19 6 (49) 3Q 2014 Adjusted Earnings TransportationNGL DCP Midstream 3Q 2015 Adjusted Earnings $MM MIDSTREAM 3Q 2015 VS. 3Q 2014 27 77 32 (18) 3Q 2015 Adjusted Earnings
  • 28.
    299 272 2 (29) 0 3Q 2014 Adjusted Earnings Olefins& Polyolefins Specialties, Aromatics & Styrenics Other 3Q 2015 Adjusted Earnings $MM CHEMICALS 3Q 2015 VS. 3Q 2014 28 261 (6)17 3Q 2015 Adjusted Earnings
  • 29.
    558 1,052 53 219 44 178 3Q 2014 Adjusted Earnings Atlantic Basin/ Europe Gulf Coast Central Corridor Western / Pacific 3Q 2015 Adjusted Earnings $MM REFINING 3Q 2015 VS. 3Q 2014 29 193 372285 202 3Q 2015 Adjusted Earnings
  • 30.
    259 344 75 10 3Q 2014 Adjusted Earnings Marketing &Other Specialties 3Q 2015 Adjusted Earnings $MM MARKETING AND SPECIALTIES 3Q 2015 VS. 3Q 2014 30 291 53 3Q 2015 Adjusted Earnings
  • 31.
    (91) (112) (7) (1) (13) 3Q 2014 Adjusted NetLoss Net Interest Expense Corporate Overhead Other 3Q 2015 Adjusted Net Loss $MM CORPORATE AND OTHER 3Q 2015 VS. 3Q 2014 31
  • 32.
    5.1 4.8 0.0 1.5 (1.0) (0.7) (0.1) June30 Cash Balance* CFO (excluding working capital) Working Capital Capital Expenditures & Investments Shareholder Distributions Other September 30 Cash Balance* $B CASH FLOW 3Q 2015 32 * Includes cash and cash equivalents
  • 33.
    33 NON-GAAP RECONCILIATIONS Sep YTD3Q 2Q Sep YTD 3Q Phillips 66 Net Income (Loss) Attributable to Phillips 66 3,577$ 1,578$ 1,012$ 3,615$ 1,180$ Adjustments: Asset dispositions (265) (18) (132) (109) (109) Pension settlement expense 46 46 - - - Impairments by equity affiliates 148 22 126 69 69 Pending claims and settlements (23) 19 (4) - - Discontinued Operations - - - (706) - Adjusted Net Income (Loss) Attributable to Phillips 66 3,483$ 1,647$ 1,002$ 2,869$ 1,140$ Net Income (Loss) Attributable to Phillips 66 Per Share of Common Stock (dollars) 6.52$ 2.90$ 1.84$ 6.28$ 2.09$ Adjusted Net Income (Loss) Attributable to Phillips 66 Per Share of Common Stock (dollars) 6.34$ 3.02$ 1.83$ 4.98$ 2.02$ Millions of Dollars Except as Indicated 2015 2014
  • 34.
    34 NON-GAAP RECONCILIATIONS Sep YTD3Q 2Q Sep YTD 3Q Midstream Net Income (Loss) Attributable to Phillips 66 90$ 101$ (78)$ 411$ 115$ Adjustments: Pension settlement expense 6 6 - - - Impairments by equity affiliates 128 2 126 - - Asset dispositions (18) (18) - - - Adjusted Net Income (Loss) Attributable to Phillips 66 206$ 91$ 48$ 411$ 115$ Chemicals Net Income (Loss) Attributable to Phillips 66 750$ 252$ 295$ 870$ 230$ Adjustments: Impairments by equity affiliates 20 20 - 69 69 Adjusted Net Income (Loss) Attributable to Phillips 66 770$ 272$ 295$ 939$ 299$ Millions of Dollars Except as Indicated 2015 2014
  • 35.
    35 NON-GAAP RECONCILIATIONS Sep YTD3Q 2Q Sep YTD 3Q Refining Net Income (Loss) Attributable to Phillips 66 2,145$ 1,003$ 604$ 1,254$ 558$ Adjustments: Asset dispositions (5) - - - - Pension settlement expense 30 30 - - - Pending claims and settlements (19) 19 - - - Adjusted Net Income (Loss) Attributable to Phillips 66 2,151$ 1,052$ 604$ 1,254$ 558$ Marketing & Specialties Net Income (Loss) Attributable to Phillips 66 956$ 338$ 314$ 667$ 368$ Adjustments: Asset dispositions (242) - (132) (109) (109) Pension settlement expense 6 6 - - - Adjusted Net Income (Loss) Attributable to Phillips 66 720$ 344$ 182$ 558$ 259$ Corporate and Other Net Income (Loss) Attributable to Phillips 66 (364)$ (116)$ (123)$ (293)$ (91)$ Adjustments: Pension settlement expense 4 4 - - - Pending claims and settlements (4) - (4) - - Adjusted Net Income (Loss) Attributable to Phillips 66 (364)$ (112)$ (127)$ (293)$ (91)$ 2015 2014 Millions of Dollars Except as Indicated
  • 36.
    36 NON-GAAP RECONCILIATIONS Sep YTD3Q 2Q Sep YTD 3Q Midstream - Transportation Net Income (Loss) Attributable to Phillips 66 207$ 77$ 65$ 180$ 58$ Adjustments: Adjusted Net Income (Loss) Attributable to Phillips 66 207$ 77$ 65$ 180$ 58$ Midstream - NGL Net Income (Loss) Attributable to Phillips 66 48$ 26$ 8$ 84$ 26$ Adjustments: Pension settlement expense 6 6 - - - Adjusted Net Income (Loss) Attributable to Phillips 66 54$ 32$ 8$ 84$ 26$ Midstream - DCP Midstream Net Income (Loss) Attributable to Phillips 66 (165)$ (2)$ (151)$ 147$ 31$ Adjustments: Impairments by equity affiliates 128 2 126 - - Asset dispositions (18) (18) - - - Adjusted Net Income (Loss) Attributable to Phillips 66 (55)$ (18)$ (25)$ 147$ 31$ Millions of Dollars Except as Indicated 2015 2014
  • 37.
    37 NON-GAAP RECONCILIATIONS Sep YTD3Q 2Q Sep YTD 3Q Refining - Atlantic Basin / Europe Net Income (Loss) Attributable to Phillips 66 383$ 180$ 90$ 141$ 140$ Adjustments: Pension settlement expense 8 8 - - - Pending claims and settlements (33) 5 - - - Adjusted Net Income (Loss) Attributable to Phillips 66 358$ 193$ 90$ 141$ 140$ Refining - Gulf Coast Net Income (Loss) Attributable to Phillips 66 423$ 269$ 83$ 263$ 66$ Adjustments: Pension settlement expense 10 10 - - - Pending claims and settlements 6 6 - - - Adjusted Net Income (Loss) Attributable to Phillips 66 439$ 285$ 83$ 263$ 66$ Millions of Dollars Except as Indicated 2015 2014
  • 38.
    38 NON-GAAP RECONCILIATIONS Sep YTD3Q 2Q Sep YTD 3Q Refining - Central Corridor Net Income (Loss) Attributable to Phillips 66 771$ 360$ 216$ 785$ 328$ Adjustments: Pension settlement expense 7 7 - - - Pending claims and settlements 5 5 - - - Adjusted Net Income (Loss) Attributable to Phillips 66 783$ 372$ 216$ 785$ 328$ Refining - Western / Pacific Net Income (Loss) Attributable to Phillips 66 568$ 194$ 215$ 65$ 24$ Adjustments: Pension settlement expense 5 5 - - - Pending claims and settlements 3 3 - - - Asset dispositions (5) - - - - Adjusted Net Income (Loss) Attributable to Phillips 66 571$ 202$ 215$ 65$ 24$ Millions of Dollars Except as Indicated 2015 2014
  • 39.
    39 NON-GAAP RECONCILIATIONS Sep YTD3Q 2Q Sep YTD 3Q Marketing & Specialties - Marketing & Other Net Income (Loss) Attributable to Phillips 66 805$ 285$ 266$ 537$ 325$ Adjustments: Asset dispositions (242) - (132) (109) (109) Pension settlement expense 6 6 - - - Adjusted Net Income (Loss) Attributable to Phillips 66 569$ 291$ 134$ 428$ 216$ Marketing & Specialties - Specialties Net Income (Loss) Attributable to Phillips 66 151$ 53$ 48$ 130$ 43$ Adjustments: Adjusted Net Income (Loss) Attributable to Phillips 66 151$ 53$ 48$ 130$ 43$ Millions of Dollars Except as Indicated 20142015
  • 40.
    2015 YTD Phillips66 Midstream Chemicals Refining Marketing & Specialties Numerator ($MM) Net Income 3,614 132 750 2,145 956 After-tax interest expense 153 - - - - GAAP ROCE earnings 3,767 132 750 2,145 956 Special Items (94) 116 20 6 (236) Adjusted ROCE earnings 3,673 248 770 2,151 720 Denominator ($MM) GAAP average capital employed* 31,853 6,104 4,883 13,637 2,933 2015 Annualized Adjusted YTD ROCE 15% 5% 21% 21% 33% 2015 Annualized GAAP YTD ROCE 16% 3% 20% 21% 43% 40* Total equity plus total debt NON-GAAP RECONCILIATIONS
  • 41.
    41 NON-GAAP RECONCILIATIONS Phillips 66 Consolidated Phillips66 Partners Adjusted Phillips 66 Total Debt 8,951$ 1,100$ 7,851$ Total Equity 24,032$ 805$ 23,227$ Debt-to-Capital Ratio 27% 25% Total Cash 4,822$ 73$ 4,749$ Net-Debt-to-Capital Ratio 15% 12% 2015 3Q Millions of Dollars
  • 42.
    42 NON-GAAP RECONCILIATIONS Millions ofDollars 2015 3Q Effective Tax Rates Income before taxes 2,359$ Special items 99$ Adjusted income before taxes 2,458$ Provision for taxes 767$ Special items 30$ Adjusted provision for taxes 797$ GAAP effective tax rate 33% Adjusted effective tax rate 32%