Phillips 66 (PSX) investor relations material

Strategic positioning and market outlook

• Diversified operations across midstream, refining, chemicals, and marketing reduce volatility and enhance cash flow durability.

• Positioned in attractive markets with strong connectivity between supply and demand centers, leveraging a global asset footprint.

• Global economic and population growth, especially in developing economies, is expected to drive increased demand for liquid hydrocarbons and refined products.

• US and Canadian crude and NGL supply are projected to grow, supporting reliable feedstock for operations.

• Integrated value chain maximizes margin capture through advantaged supply, flexible refining, and broad marketing reach.

Financial performance and shareholder returns

• Achieved a 14% annual dividend CAGR since 2012, with $47 billion returned to shareholders through dividends and share repurchases.

• Maintained an average adjusted ROCE of 12% from 2012 to mid-2026, outperforming S&P 500 benchmarks.

• On track to meet a $17 billion total debt target ahead of schedule, with a net debt-to-capital ratio goal of under 30%.

• Over 50% of net operating cash flow is targeted for return to shareholders, with midstream earnings covering dividends and sustaining capital.

• Disciplined capital allocation prioritizes a secure, growing dividend, debt reduction, and investment in growth projects.

Operational excellence and growth initiatives

• Continuous improvement in refining, with peer-leading utilization, clean product yield, and cost structure; targeting adjusted controllable costs of $5.50/bbl.

• Significant organic growth projects in midstream, refining, and chemicals, including new pipelines, gas plants, and petrochemical facilities.

• Western Gateway pipeline JV enhances West Coast supply reliability and broadens integrated value chain advantages.

• Portfolio evolution includes over $5 billion in non-core asset divestitures and strategic acquisitions to strengthen core operations.

• AI adoption is driving reliability, productivity, and margin improvements across operations and commercial activities.