Phillips 66 (PSX) Piper Sandler 25th Annual Energy Conference summary

Midstream business strategy and performance

• Integrated DCP and PSXP to create a synergistic wellhead-to-market entity, capturing $500 million in synergies and rolling efficiency gains into broader cost reduction efforts.

• Monetized $3.5 billion in non-core assets, redeploying capital into strategic acquisitions like Pinnacle and EPIC, which enhance organic growth and system integration.

• Aims to increase proprietary pipeline volumes from 35% to 50% and secure long-term contracts through the 2030s, ensuring system utilization and value creation.

• Maintains strong positions in the Permian and DJ Basins, leveraging third-party assets and contracts to optimize system feed and accretive growth.

Portfolio integration and shareholder value

• Integrated assets at Sweeny Hub enable operational and molecular synergies across refining, NGL, and petrochemicals, optimizing daily value.

• Global trading offices maximize value from NGLs and crude, supporting a strong A3/BBB+ credit rating and stable cash flow management.

• Volatility in refining is offset by stable NGL and marketing earnings, enabling significant shareholder returns—66% of operating cash flow in 2023 and over 100% in 2024.

• ROCE has outperformed both NGL and refining peers over the last decade, with TSR since July 2022 at 65-66%, exceeding industry benchmarks.

Refining market outlook and operational improvements

• Global refining capacity is increasing by 1.5 million barrels/day, with 1 million barrels/day of shutdowns and 1 million barrels/day of demand growth, tightening North American markets.

• Ongoing multi-year operational improvement plan has raised crude utilization rates to 94% and clean product yields from 84% to 87%.

• Predictive maintenance technologies have reduced turnaround costs and durations, enhancing reliability and utilization.

• Further opportunities exist to optimize downstream units and adapt to evolving technologies and market conditions.