Phillips 66 · NYSE:PSX
Phillips 66 — Investor Day (April 2014)
87 slides from Phillips 66's investor day presentation, Apr 10, 2014
Slide 1: 2014 Analyst Meeting
Investing Building Growing 2014 Analyst Meeting April 10, 2014 New York, N.Y.
Slide 2: Cautionary Statement
Cautionary Statement 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. Wo
Slide 3: Vision and Strategy
Vision and Strategy GREG GARLAND Chairman and Chief Executive Officer
Slide 4: Vision: Enterprise Value
Vision Enterprise Value Operating excellence High-performing organization Refining Midstream M&S Differentiated value creation Chemicals 2013 2018 2
Slide 5: Operating Excellence – Safety and Environmental
Operating Excellence – Safety and Environmental Total Recordable Rates Permit / Regulatory Exceedance Incidents per 200,000 Hours Worked Events 2.5 352 Industry Average 2.0 273 1.5 223 197 187 166 1.0 ’09 ’10 ’11 ’12 ’13 0.5 0.0 Phillips 66 CPChem DCP 2008 2009 2010 2011 2012 2013 See appendix for f
Slide 6: Operating Excellence – Reliability and Costs
Operating Excellence – Reliability and Costs Refining Capacity Utilization Operating Costs and SG&A % $B 92% 93% 93% 5.8 5.7 5.6 5.5 90% 5.4 88% 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 See appendix for footnotes. 4
Slide 7: Delivering on Commitments – 2013 Key Initiatives
Delivering on Commitments – 2013 Key Initiatives Phillips 66 Stock Price Growth $80 Establish MLP Progress USGC petrochemical $70 complex $60 Returns Increase advantaged crude runs $50 Maintain capital discipline $40 Manage costs Grow distributions $30 Enhance financial flexibility $20 May-12 Sep-12
Slide 8: Strategic Drivers
Strategic Drivers North American oil and gas production growth U.S. feedstock and energy cost advantage Developing markets driving global demand Differentiated segment valuations 6
Slide 9: Macro Environment – Midstream
Macro MacroEnvironment Environment-–Midstream Midstream U.S. NGL Production and Demand MMBD 6 High Production Growing NGL production Low Production 4 Infrastructure needed to move production to market centers 2 MLP structure attractive for Demand midstream investment 0 2008 2013 2018 2023 See append
Slide 10: Macro Environment – Chemicals
Macro Environment – Chemicals U.S. Ethane Production Ethylene Production Cost Curve and Demand $/ton 3.0 MMBD 1,200 Europe LPG/Naphtha Other LPG/Naphtha High Production 2.5 900 Asia LPG/Naphtha N.A. LPG/Naphtha M.E. LPG/Naphtha 2.0 Low Production 600 1.5 300 N.A. Ethane 1.0 Demand M.E. Ethane 0 0.5
Slide 11: Macro Environment – Refining
Macro Environment – Refining Total N.A. Crude Production Total U.S. Waterborne Crude Imports MMBD MMBD Canada 8.0 Texas Light/Medium Sweet North Dakota 15.5 14.8 Light/Medium Sour Rest of U.S. Gulf of Mexico Heavy Sweet Alaska & California Heavy Sour 11.1 5.2 7.7 2.7 2.5 2008 2013 2018 2023 2008 201
Slide 12: Manage Risks
Manage Risks Major project execution Organizational capabilities Commodity and financial markets Regulatory and fiscal environment 10
Slide 13: Differentiated Portfolio
Differentiated DifferentiatedPortfolio Portfolio 2013 Capital Employed 2013 Capital Employed by Region by Segment Uniquely positioned Disciplined capital allocator Leading TSR North America Europe Midstream Chemicals Asia ME M&S Refining See appendix for footnotes. 11
Slide 14: Corporate Strategy
Corporate Strategy Operating excellence Growth Returns Distributions High-performing organization 12
Slide 15: Growth Enablers
Growth Enablers Assets Portfolio of projects Experienced project management High-performing organization Financial capacity 13
Slide 16: Strong Portfolio of Growth Opportunities
Strong Portfolio of Growth Opportunities Total Capital Program $B $12 B growth projects 2014E – 2016E 5.7 6.0 4.6 3.7 Focused on high-valued businesses 70% of capital program invested in growth 2013 2014E 2015E 2016E Top-quartile MLP growth CPChem DCP Midstream Refining WRB M&S Sustaining See append
Slide 17: Phillips 66 Partners
Phillips 66 Partners 80% PSXP +61% since IPO Strong sponsorship from Phillips 66 60% Stable and predictable cash flows 40% Substantial growth potential 20% Low cost capital source 0% Financial flexibility Alerian MLP Index +5% -20% Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 Significant value creation See ap
Slide 18: Industry-Leading Returns on Capital – 2013
Industry-Leading Returns on Capital – 2013 Midstream Chemicals Refining and M&S PSX PSX 15% PSX PSX 26% PSX 15% LYB 24% MPC 15% OKE 8% WLK 21% VLO 10% EPD 7% XOM 18% CVX 7% Chem KMP 6% DOW 9% TSO 5% See appendix for footnotes. 16
Slide 19: Total Shareholder Return
Total Shareholder Return PSX +142% 140% 100% 60% S&P 100 +33% 20% -20% May-12 Aug-12 Nov-12 Feb-13 May-13 Aug-13 Nov-13 Feb-14 See appendix for footnotes. 17
Slide 20: Shareholder Distributions
Shareholder Distributions Distributions Regular dividends $B Secure 6.0 Share Exchange Growing Dividends Share Repurchases Competitive 4.0 Share repurchase Immediate EPS growth 2.0 Below intrinsic value 0.0 Announced $5 B of repurchases 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 Total Share exchange
Slide 21: Disciplined Capital Allocation
Disciplined Capital Allocation 2014E – 2016E Investment Sustain operations Fund capacity growth Generate competitive returns Distributions Distributions Reinvestment Double-digit dividend growth rate Repurchase shares Capital Structure Maintain financial flexibility Target debt-to-capital 20 – 30% 1
Slide 22: 2014 Key Initiatives
2014 Key Initiatives Growth Advance infrastructure projects Progress USGC petrochemicals complex Grow Phillips 66 Partners Returns Increase advantaged crude Expand export capability Maintain cost discipline Grow distributions 20
Slide 23: Executing Growth, Delivering Returns
Executing Growth Delivering Returns TIM TAYLOR EVP, Commercial, Marketing, Transportation and Business Development
Slide 24: Global Portfolio
Global Portfolio Midstream Chemicals Refining Marketing & Specialties 18,000+ pipeline miles 50/50 CPChem JV 15 refineries 10,000+ global outlets 10,000+ rail cars 35 manufacturing facilities 410 MBD export capacity 2,158 MBD marketing 115 MBD NGL fractionated 65% light-medium crudes petroleum produ
Slide 25: Value Chains
Value Chains Crude pipelines, Refineries marine and rail Crude production Refined product markets Pipelines and terminals Well Head LPG markets Gas production Petrochemicals NGL and natural Fractionation gas G&P and storage 23
Slide 26: Midstream Portfolio
Midstream Portfolio NGL Capital Program $B Pipelines and fractionation Export terminals 3.4 2.9 Transportation Crude and product pipelines 2.2 Terminals and storage 1.5 Rail, marine and trucks DCP Midstream Gathering and processing 2013 2014E 2015E 2016E Pipelines and fractionation Chart reflects 10
Slide 27: NGL Growth
NGL Growth Sweeny Fractionator I 2015 Freeport LPG 2016 Export Terminal Future investments 2017+ Fractionators Condensate splitters Pipelines 25
Slide 28: Transportation
Transportation EBITDA and CapEx $B Crude oil logistics 0.5 0.4 Rail cars 0.4 Jones Act ships 0.2 Refined product exports 2013 2014E EBITDA CapEx Transportation EBITDA includes noncontrolling interests. 26
Slide 29: Transportation – Midcon Region
Transportation – Midcon Region Current Capacity (MBD) Crude Pipelines 30 – 140 Products Pipelines 10 – 130 Terminals 10 – 78 27
Slide 30: Transportation – Rockies Region
Transportation – Rockies Region Current Capacity (MBD) Crude Pipelines 54 – 100 Products Pipelines 33 – 66 Terminals 10 – 41 28
Slide 31: Transportation – West Coast Region
Transportation – West Coast Region Current Capacity (MBD) Current Capacity (MBD) Crude Pipelines 40 – 103 Products Pipeline 26 Terminals 17 – 33 Terminals 13 – 28 29
Slide 32: Transportation – Gulf Coast Region
Transportation – Gulf Coast Region Current Capacity (MBD) Crude Pipelines 22 – 440 Products Pipelines 175 – 500 Terminals 16 30
Slide 33: Transportation – Rail and Marine
Transportation – Rail and Marine Hardisty, AB Stampede, ND Enhancing logistics optionality Clatskanie, OR Berthold, ND 2 Jones Act ships Albany, NY Casper, WY 14 crude barges Chicago, IL Philadelphia, PA Bakersfield, CA Freeport crude loading Increasing crude rail capability 5 rail unloading facilit
Slide 34: Midstream and Refining Logistics
Midstream and Refining Logistics EBITDA $B NGL fractionators and pipelines Crude and product pipelines ~1.5 Terminals and storage 0.5 2013 Frac I Refining Other 2017E Truck and rail Midstream LPG Export logistics Midstream excluding Terminal growth DCP 2013 Midstream EBITDA includes noncontrolling i
Slide 35: Phillips 66 Partners
Phillips 66 Partners 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 33
Slide 36: Phillips 66 Partners Unlocks Value
Phillips 66 Partners Unlocks Value Enterprise Value $B Value uplift for existing portfolio ~3.7 Public Provides advantaged capital for Midstream growth PSX 0.9 Ownership Increases financial flexibility PSX Multiple PSXP LP Multiple ~6x (consensus) ~26x (actual) See appendix for footnotes. 34
Slide 37: DCP Midstream Financials
DCP Midstream Financials EBITDA $B ~$2 B capex total in execution Goliad In Service 1.5 1.6 Front Range In Service 1.3 O’Connor Plant Expansion In Service 1.2 National Helium Plant Expansion 2Q 2014 Keathley Canyon Connector 4Q 2014 New Plants (North and Permian) 2015 ~$4-6 B self-funded capital pro
Slide 38: DCP Midstream Executing Growth
DCP Midstream Executing Growth 2010 2016E Growth CapEx ~$8 B 2010 2016E ~$8 B Assets $16 B+ 58 No. of plants 70+ Processing 5.1 volume 6.2+ (BCFD) NGL production 369 525+ (MBD) NGL pipeline Top-tier gatherer ~1,400 miles 3,000+ Midstream logistics and processor services leader See appendix for footn
Slide 39: Chemicals – Chevron Phillips Chemical Company
Chemicals – Chevron Phillips Chemical Company Capital Program $B Market leader 2.6 Largest global HDPE producer 2.1 2.0 2nd largest global alpha olefins producer 1.2 4th largest N.A. ethylene producer Highest returns amongst peer group 2013 2014E 2015E 2016E Self-funded capital program Chart reflect
Slide 40: Chemicals – CPChem Portfolio
Chemicals – CPChem Portfolio 50/50 JV with Chevron 11 joint ventures 2 research facilities Sales into 139 countries Total Net Capacity 2013 Income Before Taxes from Continuing 2013 Operations SA&S SA&S Int’l O&P O&P U.S. 38
Slide 41: Chemicals – CPChem Growth Plans
Chemicals – CPChem Growth Plans 2013 2014 2015 2016 2017 1-Hexene Unit Capacity growth 250 kMTA 36% U.S. O&P Sweeny Ethylene 90 kMTA Estimated growth spending $6.5 – 7 B USGC Petrochemicals 1,500 kMTA (ethylene) 1,000 kMTA (polyethylene) Estimated EBITDA generated NAO Expansion $1.3 – 1.6 B/year 201
Slide 42: Refining
Refining 15 refineries worldwide – 2.2 MMBD crude capacity Capital Program $B 1.2 1.2 1.2 1.1 Ireland United Kingdom Malaysia Germany 2013 2014E 2015E 2016E 40
Slide 43: Refining Crude Mix
Refining Crude Mix Heavy Light/ Atlantic Basin Central Corridor Medium Worldwide Gulf Coast Western Pacific See appendix for footnotes. 41
Slide 44: Improving Refining Returns
Improving Refining Returns Constant Crack Spreads Increasing advantaged crude ROCE Improvement Improving yields Expanding export capacity 15% 11% Managing costs 5-Yr Avg Adv Crude Yields & Costs 2018E Exports 42
Slide 45: Capturing Advantaged Crude
Capturing Advantaged Crude U.S. Refining Crudes % Brent Other Light/Medium Heavy Canadian WTI/WTS Current 2016E See appendix for footnotes. 43
Slide 46: Improving Yields
Improving Yields Distillate yield of 41% Additional improvements LPG recovery Technology enhancements Product optimization Clean product yield of 85% 44
Slide 47: Growing Exports
Growing Exports Export Capacity MBD 550 West 410 West Gulf Gulf East East 2013 2016E 45
Slide 48: Marketing and Specialties
Marketing and Specialties CapEx $B U.S. Marketing 0.2 Ensure refinery placement International Marketing 0.1 0.1 0.1 Retail growth in Europe Specialties Selective Lubricants growth 2013 2014E 2015E 2016E 46
Slide 49: Commercial
Commercial Minimize feedstock costs Optimize product channel of trade Capture market opportunities Ensure compliance 47
Slide 50: 2014 Initiatives
2014 Initiatives Midstream Creating logistics optionality Expanding pipelines Increasing rail capability Advancing Sweeny Hub Refining Investing in advantaged crude Growing export capacity Chemicals Advancing USGC projects 48
Slide 51: Financial Update
Financial Update GREG MAXWELL Executive Vice President, Finance and Chief Financial Officer
Slide 52: Financial Strategy
Financial Strategy Dividends and capital funding Double-digit dividend growth rate Share repurchase program PSXP as additional funding source Investment-grade credit ratings 50
Slide 53: Shareholder Return Growth
Shareholder Return Growth $2 B Share Repurchase $76.65 PSX Begins Authorized Completed Trading PSXP IPO 25% Dividend $700 MM Increase PSXP Acquisition $1 B Share Repurchase PSPI $1.4 B Authorized $1 B Share $1 B Share Exchange Repurchase Repurchase Authorized Authorized 6% PSXP $32.76 Distribution 2
Slide 54: Capital Structure
Capital Structure 23.8 20% - 30% 22.4 19.0 8.0 6.2 6.4 2Q 2012 2013 2014E Equity ($B) Debt ($B) PSXP ($B) Debt-to-Capital (%) 52
Slide 55: Funding Growth
Funding Growth Capital Allocation Consensus Cash from Operations $B $B 6.1 6.0 4.8 5.1 2.7 1.8 2013 2014E 2013 2014E Cash Distributions Growth & Investment CapEx Sustaining CapEx Consolidated CapEx Total 53
Slide 56: Capital Program
Capital Program Total Capital Program Growth Capital $12 B $B 5.7 6.0 4.6 3.7 2013 2014E 2015E 2016E 2014E – 2016E CPChem DCP Midstream Refining WRB M&S Sustaining See appendix for footnotes. 54
Slide 57: Shareholder Distributions
Shareholder Distributions Phillips 66 Common Stock Dividend Growth MM shares ¢/share 7.75 (42) (17) 4.6 6.25 5.00 1.4 625 39 566 3.2 20 April Share PSPI PSPI March $B Q3 2012 Q4 2012 Q1 2013 Q4 2013 Q1 2014 2012 Repurchases Exchange Exchange 2014E Estimate Net of Issuances 95% growth vs. 50% peer av
Slide 58: Sources and Uses of Cash
Sources and Uses of Cash 2014 Outlook $B 5.1 (2.7) 0.8 (3.4) 5.4 5.2 Beginning Cash Capital Distributions Other Ending Cash from Expenditures Cash Jan 1, 2014 Operations Dec 31, 2014 Cash from Operations is based on analysts’ consensus. 56
Slide 59: Debt and Liquidity
Debt and Liquidity Debt Maturity Profile Liquidity $B $B 0.7 4.5 (0.1) 10.6 10.5 4.5 5.4 0.7 2.1 1.5 1.5 0.8 2015 2016 2017 2018 2019-22 2023-50 Cash Revolver Receivable Total Letters of Available Facility Securitization Committed Credit Committed Undrawn Revolving Credit Facility Facility Liquidity
Slide 60: Phillips 66 Partners Financial Strategy
Phillips 66 Partners Financial Strategy Investment-grade credit rating Target 3.0x debt / EBITDA Top-quartile distributions Annual coverage ratio 1.1x Support Phillips 66 Midstream growth 58
Slide 61: Financial Performance
Financial Performance Average Capital Employed Average Capital Employed $B by Segment 2014E Midstream Corporate 28 29 Chemicals 2013 2014E M&S Refining Consensus Adjusted 13.7% ROCE 13.7% $3.6 B Earnings $4.2 B $5.89/share EPS $7.20/share 59
Slide 62: Strategic Focus
Strategic Focus Ensure investment-grade credit ratings Fund capital program Increase distributions Deliver leading total shareholder return 60
Slide 63: Compelling Investment
Compelling Investment Shareholder returns PSX +142% 140% Unique portfolio 100% EBITDA growth S&P 100 +33% 60% Disciplined capital allocation 20% Multiple expansion May-12 Aug-12 Nov-12 Feb-13 May-13 Aug-13 Nov-13 Feb-14 -20% See appendix for footnotes. 61
Slide 64: Appendix
Appendix 2014 Analyst Meeting April 10, 2014 New York, N.Y.
Slide 65: Phillips 66 Midstream and Refining Logistics
Phillips 66 Midstream and Refining Logistics Crude and • 4,100 miles of crude pipelines with ~1,200 MBD capacity Product Pipelines • 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 MM
Slide 66: DCP Midstream Regional Growth
DCP Midstream Regional Growth 2013 NGL Processing CapEx Production Capacity 2014E-2016E MBD BCFD $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 NGL Production BCFD MBD 5.9 6.2 402 500 525 5
Slide 67: Footnotes
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
Slide 68: Footnotes
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
Slide 69: Footnotes
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
Slide 70: Footnotes
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
Slide 71: 2014 Sensitivities
2014 Sensitivities Net Income $MM Midstream 1¢/Gal Increase in NGL price 4 10¢/MMBtu Increase in Natural Gas price 2 $1/BBL Increase in WTI price 2 Chemicals 1¢/Lb Increase in Olefins Chain Margin (Ethylene, Polyethylene, NAO) 35 Worldwide Refining (assuming 94% refining utilization) $1/BBL Increase
Slide 72: 2014 Guidance
2014 Guidance 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 70
Slide 73: Capital Program
Capital Program Millions of Dollars Years Ended December 31 2013 2014E 2015E 2016E Capital Expenditures and Investments* Consolidated Midstream 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 Specialt
Slide 74: Capital Program
Capital Program Millions of Dollars Millions of Dollars Years Ended December 31 2013 2014E 2015E 2016E Years Ended December 31 2013 2014E 2015E 2016E Growth Capital Sustaining Capital* Consolidated Consolidated Midstream Midstream Transportation $ 76 238 235 250 Transportation $ 150 150 150 150 NGL
Slide 75: Non-GAAP Reconciliations
Non-GAAP Reconciliations 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 cap
Slide 76: Non-GAAP Reconciliations
Non-GAAP Reconciliations 2013 Average Capital Percent of Employed in Average Millions of Capital Dollars Employed Reconciliation of Capital Employed* Midstream GAAP Average Capital Employed $ 3,158 13% Plus: Proportional share of select equity affiliates debt 2,414 Midstream Adjusted Average Capital
Slide 77: Non-GAAP Reconciliations
Non-GAAP Reconciliations 2013 2013 Average Average Capital Percent of Capital Percent of Employed in Average Employed Average Millions of Capital in Millions Capital Dollars Employed of Dollars Employed Reconciliation of Capital Employed* North America Middle East GAAP Average Capital Employed GAAP
Slide 78: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Year Ended December 31, 2013 Refining Midstream Chemicals and M&S Numerator Net 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 Denominator GAAP average
Slide 79: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars First Year Sweeny Fractionator and Freeport Export Facility Estimated net income $ 210 Plus: Estimated income taxes 135 Estimated net interest expense 5 Estimated depreciation and amortization 140 Estimated EBITDA $ 490 77
Slide 80: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Years Ended December 31 2013 2014E Transportation Net 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 noncont
Slide 81: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Year Ended December 31 2013 Transportation and NGL Net 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
Slide 82: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Years Ended December 31 2014E Phillips 66 Partners LP Net Income $ 119.0 - 124.0 Plus: 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 80
Slide 83: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Years Ended December 31 2013 2014E 2015E 2016E 100% DCP Midstream Net 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
Slide 84: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Low High 100% CPChem Incremental Project Earnings Projections Estimated 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 82
Slide 85: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Except as Indicated Years Ended December 31 5-Year Average Refining - ROCE Numerator Average 2009 - 2013 net income $ 1,103 After-tax interest expense - GAAP ROCE earnings 1,103 Special Items 452 Adjusted ROCE earnings $ 1,555 Denominator GAAP average cap
Slide 86: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Year 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 Attribu
Slide 87: Non-GAAP Reconciliations
Non-GAAP Reconciliations Millions of Dollars Millions of Dollars Except as Indicated Years Ended December 31 5-Year Average Marketing and Specialties Year Ended December 31 2013 Net Income Attributable to Phillips 66 $ 558 Phillips 66 - ROCE Numerator Income taxes 343 Net Income $ 3,743 Net interest