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Phillips 66 Hosts Investor Day

November 06, 2019

HOUSTON--(BUSINESS WIRE)-- Phillips 66 (NYSE: PSX) executive management is hosting an investor day in New York today, at 8:30 a.m. EST, to provide an update on the company’s strategic initiatives.

“Phillips 66 has a consistent, proven strategy to create value for shareholders,” said Greg Garland, chairman and CEO of Phillips 66. “Our strategic priorities of growth, returns and distributions are supported by a strong foundation of operating excellence and a high-performing organization.”

The company has a strong portfolio of growth and return projects to increase the cash generation capability of its integrated portfolio. Phillips 66 is also introducing AdvantEdge66, a transformational program to unlock value through technology, innovation and value chain optimization. The growth and return investments as well as the AdvantEdge66 initiatives are expected to increase the company’s mid-cycle EBITDA by $2 billion by 2022.

Phillips 66 reiterates its commitment to disciplined capital allocation. The company expects 2019 adjusted capital of $3.3 billion to $3.6 billion, which includes a new Marketing joint venture. For 2020, adjusted capital is estimated to be between $3 billion and $3.5 billion. Phillips 66 is focused on continued strong shareholder distributions including a secure, competitive and growing dividend, along with an intrinsic value approach to share repurchases. The company’s long-term objective is to reinvest 60% of operating cash flow back into the business and return 40% to shareholders.

A live webcast of the meeting is available. To access the webcast, go to the Phillips 66 Investors site, www.phillips66.com/investors, and click on “Events and Presentations.” A replay of the webcast will be archived on the Investors site approximately two hours after the live call, and a transcript also will be available at a later date.

About Phillips 66

Phillips 66 is a diversified energy manufacturing and logistics company. With a portfolio of Midstream, Chemicals, Refining, and Marketing and Specialties businesses, the company processes, transports, stores and markets fuels and products globally. Phillips 66 Partners, the company's master limited partnership, is integral to the portfolio. Headquartered in Houston, the company has 14,500 employees committed to safety and operating excellence. Phillips 66 had $59 billion of assets as of Sept. 30, 2019. For more information, visit http://www.phillips66.com or follow us on Twitter @Phillips66Co.

CAUTIONARY STATEMENT FOR THE PURPOSES OF THE “SAFE HARBOR” PROVISIONS
OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This news release 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,” “continues,” “intends,” “will,” “would,” “objectives,” “goals,” “projects,” “efforts,” “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 news release 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; the impact of adverse market conditions or other similar risks to those identified herein affecting PSXP, as well as the ability of PSXP to successfully execute its growth plans; 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.

Use of Non-GAAP Financial Information This news release includes the terms “mid-cycle EBITDA” and “adjusted capital.” These are non-GAAP financial measures. Mid-cycle EBITDA is a forecast of future EBITDA, and is based on Phillips 66’s projections of annual adjusted EBITDA inclusive of current assets and future potential acquisitions by the company. Mid-cycle EBITDA is included to demonstrate management’s intention of future growth through acquisitions, organic projects and other initiatives. Mid-cycle EBITDA is not presented as an alternative to the nearest GAAP financial measure, net income, and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. We are unable to present a reconciliation of mid-cycle EBITDA because certain elements of net income, including interest, depreciation and income taxes, are not reasonably available. Together, these items generally result in EBITDA being significantly greater than net income. Adjusted capital is a non-GAAP financial measure that demonstrates the portion of total consolidated capital expenditures and investments funded by Phillips 66. Adjusted capital in 2019 and 2020 excludes $0.4 billion and $0.1 billion to $0.5 billion, respectively, of capital expected to be cash funded by joint venture partners. The GAAP financial measure most comparable to adjusted capital is capital expenditures and investments. Additionally, because mid-cycle EBITDA and adjusted capital may be defined differently by other companies in our industry, our definition of mid-cycle EBITDA and adjusted capital may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.

Jeff Dietert, 832-765-2297 (investors)
jeff.dietert@p66.com
or
Brent Shaw, 832-765-2297 (investors)
brent.d.shaw@p66.com
or
Joe Gannon, 855-841-2368 (media)
joe.gannon@p66.com

Source: Phillips 66

Categories: Press Releases