TIM TAYLOR · lubricant blending plants. 18,000+ pipeline miles 10,000+ rail cars . 115 MBD NGL...
Transcript of TIM TAYLOR · lubricant blending plants. 18,000+ pipeline miles 10,000+ rail cars . 115 MBD NGL...
TIM TAYLOR EVP, Commercial, Marketing, Transportation and Business Development
Executing Growth
Delivering Returns
22
Global Portfolio
Midstream Chemicals
50/50 CPChem JV
35 manufacturing facilities 33.1 BLbs/y petrochemical and
product capacity
Marketing & Specialties
10,000+ global outlets
2,158 MBD marketing petroleum products sales 5 lubricant blending plants
18,000+ pipeline miles
10,000+ rail cars 115 MBD NGL fractionated
50/50 DCP JV
Refining
15 refineries 410 MBD export capacity
65% light-medium crudes
2,246 MBD crude capacity
See appendix for footnotes.
Value Chains
23
Crude pipelines, marine and rail
Crude production
Well Head
Pipelines and terminals
Refineries
Gas production
NGL and natural gas G&P
Fractionation and storage
LPG markets
Refined product markets
Petrochemicals
1.5
2.2
2.9 3.4
2013 2014E 2015E 2016E
Midstream Portfolio
24
NGL Pipelines and fractionation Export terminals
Transportation Crude and product pipelines Terminals and storage Rail, marine and trucks
DCP Midstream Gathering and processing Pipelines and fractionation
Capital Program $B
Chart reflects 100% Phillips 66 Midstream capital expenditures plus 50% of DCP Midstream capital expenditures.
NGL Growth
25
Sweeny Fractionator I 2015
Freeport LPG Export Terminal
2016
Future investments Fractionators Condensate splitters Pipelines
2017+
Transportation
26
0.4
0.5
0.2
0.4
2013 2014E
EBITDA CapEx
EBITDA and CapEx $B
Crude oil logistics
Rail cars
Jones Act ships
Refined product exports
Transportation EBITDA includes noncontrolling interests.
Transportation – Midcon Region
27
Current Capacity (MBD)
Crude Pipelines 30 – 140
Products Pipelines 10 – 130
Terminals 10 – 78
Transportation – Rockies Region
28
Current Capacity (MBD)
Crude Pipelines 54 – 100
Products Pipelines 33 – 66
Terminals 10 – 41
29
Transportation – West Coast Region
Current Capacity (MBD)
Crude Pipelines 40 – 103
Products Pipeline 26
Terminals 13 – 28
Current Capacity (MBD)
Terminals 17 – 33
Transportation – Gulf Coast Region
30
Current Capacity (MBD)
Crude Pipelines 22 – 440
Products Pipelines 175 – 500
Terminals 16
Transportation – Rail and Marine
31
Bakersfield, CA
Casper, WY
Clatskanie, OR
Hardisty, AB
Stampede, ND
Albany, NY
Berthold, ND
Chicago, IL Philadelphia, PA
Rail
Rail Crude Rack
Waterborne
Enhancing logistics optionality
2 Jones Act ships
14 crude barges
Freeport crude loading
Increasing crude rail capability
5 rail unloading facilities
1,200 additional rail cars
See appendix for footnotes.
0.5
~1.5
2013Midstreamexcluding
DCP
Frac ILPG Export
Terminal
Refininglogistics
OtherMidstream
growth
2017E
Midstream and Refining Logistics
32
EBITDA $B
NGL fractionators and pipelines
Crude and product pipelines
Terminals and storage
Truck and rail
2013 Midstream EBITDA includes noncontrolling interests.
Phillips 66 Partners
33
IPO in July 2013
Phillips 66 ownership
73% LP interest
2% GP interest
Top-quartile distribution growth
$700 MM acquisition in March 2014
$140 - 145 MM annualized EBITDA
See appendix for footnotes.
Phillips 66 Partners Unlocks Value
34
Value uplift for existing portfolio Provides advantaged capital for Midstream growth Increases financial flexibility
Enterprise Value $B
0.9
~3.7
PSX Multiple~6x (consensus)
PSXP LP Multiple~26x (actual)
PSX Ownership
Public
DCP Midstream Financials
35
1.2 1.3
1.5 1.6
2013 2014E 2015E 2016E
EBITDA $B ~$2 B capex total in execution
~$4-6 B self-funded capital program from 2014 – 2016
Goliad In Service
Front Range In Service
O’Connor Plant Expansion In Service
National Helium Plant Expansion 2Q 2014
Keathley Canyon Connector 4Q 2014
New Plants (North and Permian) 2015
Chart reflects 100% DCP Midstream assuming commodity-neutral growth and includes noncontrolling interests.
DCP Midstream Executing Growth
2010 2016E
36
Growth CapEx ~$8 B
~$8 B Assets $16 B+
58 No. of plants 70+
5.1 Processing
volume (BCFD)
6.2+
369 NGL production (MBD)
525+
~1,400 NGL pipeline miles
3,000+ Midstream logistics services leader
2010 2016E
Top-tier gatherer and processor
See appendix for footnotes.
Chart reflects 100% of CPChem capital expenditures.
1.2
2.1
2.6
2.0
2013 2014E 2015E 2016E
Capital Program $B
Chemicals – Chevron Phillips Chemical Company
37
Market leader
Largest global HDPE producer
2nd largest global alpha olefins producer
4th largest N.A. ethylene producer
Highest returns amongst peer group
Self-funded capital program
Chemicals – CPChem Portfolio
38
50/50 JV with Chevron 11 joint ventures
2 research facilities Sales into 139 countries
2013 Income Before Taxes from Continuing Operations
Total Net Capacity 2013
SA&S
O&P
SA&S
O&P
Int’l
U.S.
1-Hexene Unit 250 kMTA
Sweeny Ethylene 90 kMTA
USGC Petrochemicals 1,500 kMTA (ethylene)
1,000 kMTA (polyethylene)
Chemicals – CPChem Growth Plans
39
2013 2014 2015 2016 2017
Capacity growth 36% U.S. O&P
Estimated growth spending $6.5 – 7 B
Estimated EBITDA generated $1.3 – 1.6 B/year 2017+ NAO Expansion
~100 kMTA
Estimated capital expenditures and EBITDA figures are 100% CPChem. Estimated EBITDA based on 2012 industry margins.
1.2 1.1 1.2 1.2
2013 2014E 2015E 2016E
Refining
40
Germany
Ireland United
Kingdom
Malaysia
Capital Program $B
15 refineries worldwide – 2.2 MMBD crude capacity
Refining Crude Mix
41
Light/ Medium
Heavy Atlantic Basin Central Corridor
Gulf Coast Western Pacific Worldwide
See appendix for footnotes.
Improving Refining Returns
42
Increasing advantaged crude
Improving yields
Expanding export capacity
Managing costs
11% 15%
5-Yr Avg Adv Crude Yields &Exports
Costs 2018E
Constant Crack Spreads ROCE Improvement
Current 2016E
Capturing Advantaged Crude
43
U.S. Refining Crudes %
WTI/WTS
Heavy
Canadian
Other Light/Medium
Brent
See appendix for footnotes.
Improving Yields
44
Distillate yield of 41%
Additional improvements
LPG recovery
Technology enhancements
Product optimization
Clean product yield of 85%
East East
Gulf Gulf
West
West
2013 2016E
Growing Exports
45
Export Capacity MBD
410
550
Marketing and Specialties
46
U.S. Marketing
Ensure refinery placement
International Marketing
Retail growth in Europe
Specialties
Selective Lubricants growth
0.2
0.1 0.1 0.1
2013 2014E 2015E 2016E
CapEx $B
Commercial
47
Minimize feedstock costs
Optimize product channel of trade
Capture market opportunities
Ensure compliance
2014 Initiatives
48
Midstream Creating logistics optionality Expanding pipelines Increasing rail capability Advancing Sweeny Hub
Refining Investing in advantaged crude Growing export capacity
Chemicals Advancing USGC projects
GREG MAXWELL Executive Vice President, Finance and Chief Financial Officer
Financial Update
Financial Strategy
50
Dividends and capital funding
Double-digit dividend growth rate
Share repurchase program
PSXP as additional funding source
Investment-grade credit ratings
$76.65
51
3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 12
$2 B Share Repurchase Authorized
$1 B Share Repurchase Authorized
$1 B Share Repurchase Authorized
$1 B Share Repurchase Authorized
Completed PSXP IPO
25% Dividend Increase
25% Dividend Increase
PSX Begins Trading
$700 MM PSXP
Acquisition
25% Dividend Increase
$32.76
Shareholder Return Growth
6% PSXP Distribution
Increase
PSX Stock Price
PSPI $1.4 B Exchange
See appendix for footnotes.
19.0
8.0
22.4
6.2
23.8
6.4
Capital Structure
52
2Q 2012 2013 2014E
Equity ($B) Debt ($B) PSXP ($B) Debt-to-Capital (%)
20% - 30%
6.0
5.1
2013 2014E
Funding Growth
53
Consensus Cash from Operations $B
Capital Allocation $B
4.8
6.1
1.8
2.7
2013 2014E
Cash Distributions Growth & Investment CapExSustaining CapEx Consolidated CapEx Total
3.7
4.6
5.7 6.0
2013 2014E 2015E 2016E
Capital Program
54
Growth Capital $12 B Total Capital Program $B
CPChem Midstream DCP WRB Sustaining
2014E – 2016E
M&S Refining
See appendix for footnotes.
625 566
(42) (17)
April2012
ShareRepurchases
Net ofIssuances
PSPIExchange
March2014E
$BEstimate
Share Repurchases
Net of Issuances
Shareholder Distributions
55
Dividend Growth ¢/share
Phillips 66 Common Stock MM shares
20
39
5.00
6.25
7.75
Q3 2012 Q4 2012 Q1 2013 Q4 2013 Q1 2014
95% growth vs. 50% peer average
PSPI Exchange
3.2
1.4
4.6
Common Shares See appendix for footnotes.
Cash from Operations is based on analysts’ consensus.
56
Sources and Uses of Cash
5.4 5.2
5.1
(2.7)
(3.4)
0.8
BeginningCash
Jan 1, 2014
Cashfrom
Operations
CapitalExpenditures
Distributions Other EndingCash
Dec 31, 2014
2014 Outlook $B
5.4
10.6 10.5
4.5 0.7
(0.1)
Cash RevolverFacility
ReceivableSecuritization
Facility
TotalCommittedLiquidity
Letters ofCreditIssued
AvailableCommittedLiquidity
0.8 1.5 2.1 1.5
0.7
4.5
2015 2016 2017 2018 2019-22 2023-50
Undrawn Revolving Credit FacilityUndrawn Receivables Securitization FacilityBonds
Debt Maturity Profile $B
Debt and Liquidity
57
Liquidity $B
See appendix for footnotes.
Phillips 66 Partners Financial Strategy
58
Investment-grade credit rating
Target 3.0x debt / EBITDA
Top-quartile distributions
Annual coverage ratio 1.1x
Support Phillips 66 Midstream growth
28 29
2013 2014E
59
Financial Performance
Average Capital Employed $B
13.7% $3.6 B
$5.89/share
ROCE
Earnings
EPS
13.7% $4.2 B
$7.20/share
Consensus Adjusted
M&S Refining
Corporate
Chemicals
Midstream
Average Capital Employed by Segment 2014E
Strategic Focus
60
Ensure investment-grade credit ratings
Fund capital program
Increase distributions
Deliver leading total shareholder return
Compelling Investment
61
Shareholder returns
Unique portfolio
EBITDA growth
Disciplined capital allocation
Multiple expansion
-20%
20%
60%
100%
140%
May-12 Aug-12 Nov-12 Feb-13 May-13 Aug-13 Nov-13 Feb-14
PSX +142%
S&P 100 +33%
See appendix for footnotes.
2014 Analyst Meeting April 10, 2014 New York, N.Y.
Appendix
63
Crude and Product Pipelines
Terminals and Storage
NGL and NGL Pipelines
Truck and Rail
Phillips 66 Midstream and Refining Logistics
• 4,100 miles of crude pipelines with ~1,200 MBD capacity • 6,600 miles of product pipelines with ~1,000 MBD capacity • 25% interest in REX natural gas pipeline with 1.8 BCFD capacity
• 33 finished product terminals with ~10 MMBbls storage capacity • 12 crude terminals with 5 MMBbls storage capacity • 5 LPG terminals • 1 coke export facility • ~60 MMBbls refinery tankage
• 3 fractionators with 102 MBD capacity • 33% interest in Sand Hills and Southern Hills pipelines with 375 MBD capacity
• 8,800 owned and leased rail cars • 2,100 crude; 2,100 general service; 2,400 high pressure; 2,200 hoppers • Additional 1,200 newly constructed rail cars for crude service • 17 rail racks in service of Refining, Transportation, and Lubricants • Sentinel trucking venture with 300+ trucks
NGL fractionation capacity of 102 MBD does not include Phillips 66’s 50% share of Borger’s NGL fractionation capacity.
402 500 525
2012 2014E 2016E
5.3 5.9 6.2
2012 2014E 2016E
DCP Midstream Regional Growth
64
2013 NGL Production
MBD
Processing Capacity
BCFD
CapEx 2014E-2016E
$B
Permian ~130 1.4 1.0 - 1.5
South ~130 3.2 .50 - 1.0
North ~ 49 0.9 1.0 - 1.5
Midcon ~120 2.0 .75 - 1.0
Logistics N/A N/A .75 - 1.0
Plant Throughput Volume BCFD
NGL Production MBD
Footnotes
Slide 3 Injury statistics do not include major projects. Industry Averages are from: Phillips 66 – American Fuel & Petrochemical Manufacturers (AFPM) refining data, CPChem – American Chemistry Council (XCC), DCP – Gas Processors Association (GPA). Slide 4 Refining capacity utilization data excludes Wilhelmshaven and Trainer; costs include discontinued operations. Slide 5 Phillips 66 closing stock price May 1, 2012 to March 28, 2014. Slide 7 Source: Historical – EIA, Forecast – Industry Consultants (production), Phillips 66 internal analysis (demand). Slide 8 Source: U.S. Ethane Historical – EIA; U.S. Ethane Forecast – Industry Consultants (production), Phillips 66 internal analysis (demand); Ethylene Production Cost Curve – Wood Mackenzie 2012 estimated data using Brent Crude $112/bbl and Henry Hub $3/mmbtu. Slide 9 Both charts include crude and condensate. Source: Historical – EIA/CAPP; Forecast – Phillips 66 internal analysis. Slide 11 Both charts exclude Corporate and include Phillips 66’s share of DCP, CPChem and WRB capital employed. See non-GAAP reconciliations.
65
Footnotes
Slide 14 70% of capital program invested in growth based on 2014E – 2016E. Capital program in total and the “sustaining” category include Phillips 66 proportionate share of DCP, CPChem and WRB, each of which is expected to be self-funding. All periods include capital leases. Slide 15 Chart reflects total unit holder return July 23, 2013 to March 28, 2014. Phillips 66 Partners dividends assumed to be reinvested in units on payment date. Source: Bloomberg. Slide 16 Data reflects 2013 Return on Capital Employed (ROCE). To facilitate peer comparison, Phillips 66’s Refining and Marketing & Specialties segments were combined for the Refining and M&S ROCE calculation. Refining and M&S ROCE for MPC, VLO, TSO are total company. Refining and M&S ROCE for CVX estimated based on excluding Chemicals. XOM Chem refers to Exxon Mobil’s Chemicals segment. Slide 17 Chart reflects total shareholder return May 1, 2012 to March 28, 2014. Phillips 66 dividends assumed to be reinvested in stock on payment date. Slide 22 Midstream list excludes DCP metrics; Chemicals includes CPChem equity interest joint ventures; Refining includes equity interest joint ventures. Rail car count includes 1,200 rail cars managed for CPChem.
66
Footnotes
Slide 31 Five crude rail unloading facilities includes Santa Maria, for which construction has not yet begun. Slide 34 Phillips 66 ownership consists of ~75% of the total LP and GP units; Phillips 66 multiple of 6x is based on consensus; Phillips 66 Partners multiple is based on actuals as of 3/28/2014. Slide 36 NGL pipeline miles reflect partial ownership. Slide 41 Heavy: API<28 and Sulfur >0.50wt%; Light/Medium: API>28 with Sulfur >0.50wt%. Slide 43 Current refers to 2014 YTD through February 28, 2014. Slide 51 Phillips 66 closing stock price May 1, 2012 to March 28, 2014. Slide 54 Capital program in total and the “sustaining” category include Phillips 66 proportionate share of DCP, CPChem and WRB, each of which is expected to be self-funding. Slide 55 Peer average includes DOW, MPC, TSO and VLO.
67
Footnotes
Slide 57 Charts are as of Dec. 31, 2013. Debt maturity profile excludes capital leases. Slide 61 Chart reflects total shareholder return May 1, 2012 to March 28, 2014. Phillips 66 dividends assumed to be reinvested in stock on payment date.
68
2014 Sensitivities
69
Net Income $MMMidstream
1¢/Gal Increase in NGL price 4 10¢/MMBtu Increase in Natural Gas price 2 $1/BBL Increase in WTI price 2
Chemicals1¢/Lb Increase in Olefins Chain Margin (Ethylene, Polyethylene, NAO) 35
Worldwide Refining (assuming 94% refining utilization)$1/BBL Increase in Refining Margin 440
Impacts due to Actual Crude Feedstock Differing from Feedstock Assumed in Market Indicators:$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 / WCS Differential (LLS less WCS) 10 $1/BBL Widening ANS / WCS Differential (ANS less WCS) 10
$0.10/MMBtu Increase in Natural Gas price (10)
Sensitivities shown above are independent and are only valid within a limited price range.
2014 Guidance
70
After-Tax Corporate Segment Net Income Losses $0.4 B
Pre-Tax Turnaround Costs $0.4 B
Pre-Tax Depreciation and Amortization Expense $1.0 B
Effective Tax Rate Mid-30's
Capital Program
71
Years Ended December 31 2013 2014E 2015E 2016ECapital Expenditures and Investments*ConsolidatedMidstream
Transportation 226$ 388 385 400 NGL 302 1,029 2,027 2,537
528$ 1,417 2,412 2,937 Chemicals - - - - Refining 1,066 1,002 1,032 1,067 Marketing and Specialties 226 126 123 125 Corporate 150 136 214 224
1,970$ 2,681 3,781 4,353
Selected Equity AffiliatesDCP 971$ 750 500 454 CPChem 613 1,046 1,301 979 WRB 109 145 165 175
1,693$ 1,941 1,966 1,608
Capital Program**Midstream
Transportation 226$ 388 385 400 DCP 971 750 500 454 NGL 302 1,029 2,027 2,537
1,499$ 2,167 2,912 3,391 Chemicals 613 1,046 1,301 979 Refining 1,175 1,147 1,197 1,242 Marketing and Specialties 226 126 123 125 Corporate 150 136 214 224
3,663$ 4,622 5,747 5,961 *Includes non-cash capital leases of $191 million in 2013.**Includes Phillips 66's share of capital spending by DCP, CPChem and WRB, which are expected to be self-funded.
Millions of Dollars
Capital Program
72
Years Ended December 31 2013 2014E 2015E 2016E Years Ended December 31 2013 2014E 2015E 2016EGrowth Capital Sustaining Capital*Consolidated ConsolidatedMidstream Midstream
Transportation 76$ 238 235 250 Transportation 150$ 150 150 150 NGL 301 1,024 2,021 2,533 NGL 1 5 6 4
377$ 1,262 2,256 2,783 151$ 155 156 154 Chemicals - - - - Chemicals - - - - Refining 216 268 289 290 Refining 850 734 743 777 Marketing and Specialties 140 65 68 74 Marketing and Specialties 86 61 55 51 Corporate 11 12 14 12 Corporate 139 124 200 212
744$ 1,607 2,627 3,159 1,226$ 1,074 1,154 1,194
Selected Equity Affiliates Selected Equity AffiliatesDCP 849$ 600 349 299 DCP 122$ 150 151 155 CPChem 354 852 1,115 837 CPChem 259 194 186 142 WRB 18 28 52 41 WRB 91 117 113 134
1,221$ 1,480 1,516 1,177 472$ 461 450 431
Growth Capital Program** Sustaining Capital Program**Midstream Midstream
Transportation 76$ 238 235 250 Transportation 150$ 150 150 150 DCP 849 600 349 299 DCP 122 150 151 155 NGL 301 1,024 2,021 2,533 NGL 1 5 6 4
1,226$ 1,862 2,605 3,082 273$ 305 307 309 Chemicals 354 852 1,115 837 Chemicals 259 194 186 142 Refining 234 296 341 331 Refining 941 851 856 911 Marketing and Specialties 140 65 68 74 Marketing and Specialties 86 61 55 51 Corporate 11 12 14 12 Corporate 139 124 200 212
1,965$ 3,087 4,143 4,336 1,698$ 1,535 1,604 1,625
*Includes non-cash capital leases of $191 million in 2013.
**Includes Phillips 66's share of capital spending by DCP, CPChem and WRB, which are expected to be self-funded.
Millions of Dollars Millions of Dollars
Non-GAAP Reconciliations
73
Use of Non-GAAP Financial Information – This presentation includes the terms adjusted earnings, adjusted earnings per share, EBITDA and return on capital employed. These are non-GAAP financial measures. Adjusted earnings, adjusted earnings per share, EBITDA and return on capital employed are included to help facilitate comparisons of company operating performance across periods. References in the presentation to earnings refer to net income attributable to Phillips 66.
Non-GAAP Reconciliations
74
Average Capital
Employed in Millions of
Dollars
Percent of Average Capital
EmployedReconciliation of Capital Employed*MidstreamGAAP Average Capital Employed 3,158$ 13%Plus:
Proportional share of select equity affiliates debt 2,414 Midstream Adjusted Average Capital Employed 5,572$ 18%
ChemicalsGAAP Average Capital Employed 3,823$ 16%Plus:
Proportional share of equity affiliates debt 1,062 Chemicals Adjusted Average Capital Employed 4,885$ 16%
RefiningGAAP Average Capital Employed 14,252$ 59%Plus:
Basis difference of select equity affiliates 2,973 Proportional share of select equity affiliates debt 13
Refining Adjusted Average Capital Employed 17,238$ 56%
Marketing and Specialties GAAP Average Capital Employed 2,882$ 12%Marketing and Specialties Adjusted Average Capital Employed 2,882$ 10%*Total equity plus debt.
2013
Non-GAAP Reconciliations
75
Average Capital
Employed in Millions of
Dollars
Percent of Average Capital
Employed
Average Capital
Employed in Millions of Dollars
Percent of Average Capital
EmployedReconciliation of Capital Employed*North America Middle EastGAAP Average Capital Employed GAAP Average Capital Employed
Midstream 3,158 Chemicals 1,287 Chemicals 2,318 Refining - Refining 11,886 Middle East GAAP Average Capital Employed 1,287 5%Marketing and Specialties 2,156 Plus:Corporate 3,857 Proportional share of select equity affiliates debt 1,032 Discontinued operations 191 Middle East Adjusted Average Capital Employed 2,319 8%
North America GAAP Average Capital Employed 23,566 84%Plus: Asia
Basis difference of select equity affiliates 2,973 GAAP Average Capital EmployedProportional share of select equity affiliates debt 2,433 Chemicals 52
Less: Refining 618 Corporate 3,857 Asia GAAP Average Capital Employed 670 2%Discontinued operations 191 Plus:
North America Adjusted Average Capital Employed 24,924 81% Proportional share of select equity affiliates debt 24 Asia Adjusted Average Capital Employed 694 2%
Europe *Total equity plus debt.GAAP Average Capital Employed
Chemicals 166 Refining 1,748 Marketing and Specialties 726
Europe GAAP Average Capital Employed 2,640 9%Europe Adjusted Average Capital Employed 2,640 9%
2013 2013
Non-GAAP Reconciliations
76
Midstream ChemicalsRefining
and M&SNumeratorNet income 486$ 986 2,641
After-tax interest expense - - - GAAP ROCE earnings 486 986 2,641
Special items - - (22) Adjusted ROCE earnings 486$ 986 2,619
DenominatorGAAP average capital employed* 3,158$ 3,823 17,134
Adjusted ROCE (percent) 15% 26 15GAAP ROCE (percent) 15% 26 15*Total equity plus debt.
Millions of DollarsYear Ended December 31, 2013
Non-GAAP Reconciliations
77
Millions of DollarsFirst Year
Sweeny Fractionator and Freeport Export FacilityEstimated net income 210$
Plus:Estimated income taxes 135Estimated net interest expense 5Estimated depreciation and amortization 140
Estimated EBITDA 490$
Non-GAAP Reconciliations
78
Years Ended December 31 2013 2014ETransportationNet Income Attributable to Phillips 66 200$ 222
Plus:Net income attributable to noncontrolling interests 17 41 Income taxes 110 148 Depreciation and amortization 86 83
EBITDA* 413$ 494 *Includes noncontrolling interests.
Millions of Dollars
Non-GAAP Reconciliations
79
Millions of DollarsYear Ended December 31 2013Transportation and NGLNet Income Attributable to Phillips 66 259$
Plus:Net income attributable to noncontrolling interests 17 Income taxes 143 Depreciation and amortization 88
EBITDA* 507$ *Includes noncontrolling interests.
Midstream and Refining Logistics forecasts were derived on an EBITDA-only basis. Accordingly, elements of net income including tax and depreciation information are not available. Together, these items generally result in a significant uplift in EBITDA over net income.
Non-GAAP Reconciliations
80
Millions of DollarsYears Ended December 31 2014EPhillips 66 Partners LPNet Income $ 119.0 - 124.0Plus:
Depreciation 15.0 Net interest expense 5.4 Amortization of deferred rentals 0.4 Provision for income taxes 0.4
EBITDA $ 140.2 - 145.2
Non-GAAP Reconciliations
81
Years Ended December 31 2013 2014E 2015E 2016E100% DCP MidstreamNet Income Attributable to Members' Interest 491$ 510 545 555
Plus:Net income attributable to noncontrolling interests 93 135 245 255 Income taxes 10 10 10 10 Net interest expense 249 315 330 345 Depreciation and amortization 314 360 405 430
EBITDA* 1,157$ 1,330 1,535 1,595 *Includes noncontrolling interests.
Millions of Dollars
Non-GAAP Reconciliations
82
Low High100% CPChem Incremental Project Earnings ProjectionsEstimated incremental net income 1,000$ 1,313
Plus:Estimated income taxes 20 27 Estimated net interest expense - - Estimated depreciation 280 260
Estimated EBITDA 1,300$ 1,600
Millions of Dollars
Non-GAAP Reconciliations
83
Millions of DollarsExcept as Indicated
Years Ended December 31 5-Year Average
Refining - ROCENumerator Average 2009 - 2013 net income 1,103$ After-tax interest expense - GAAP ROCE earnings 1,103 Special Items 452 Adjusted ROCE earnings 1,555$
DenominatorGAAP average capital employed* 14,252$
Adjusted ROCE (percent) 11%GAAP ROCE (percent) 8%*2013 average total equity plus debt.
Non-GAAP Reconciliations
84
Millions of DollarsYear Ended December 31 2013
Net Income Attributable to Phillips 66 3,726$
Adjustments:Net gain on asset sales (23) Exit of business line 34 Tax law impacts (17) Pending claims and settlements (16)
Discontinued operations (61)
Adjusted Net Income Attributable to Phillips 66 3,643$
Net Income Attributable to Phillips 66 Per Share of Common Stock (dollars) 6.02$
Adjusted Net Income Attributable to Phillips 66 Per Share of Common Stock (dollars) 5.89$
Non-GAAP Reconciliations
85
Millions of DollarsExcept as Indicated
Year Ended December 31 2013Phillips 66 - ROCENumerator Net Income 3,743$ After-tax interest expense 178 GAAP ROCE earnings 3,921 Special Items (83)Adjusted ROCE earnings 3,838$
DenominatorGAAP average capital employed* 28,163$ Discontinued Operations (191) Adjusted average capital employed* 27,972$
Adjusted ROCE (percent) 13.7%GAAP ROCE (percent) 13.9%*Total equity plus debt.
Millions of DollarsYears Ended December 31 5-Year AverageMarketing and SpecialtiesNet Income Attributable to Phillips 66 558$
Income taxes 343 Net interest expense (23) Depreciation and amortization 135 Average 2009 - 2013 EBITDA 1,013$