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PHILLIPS 66 2014 BANK OF AMERICA MERRILL LYNCH REFINING CONFERENCE
Clayton Reasor, SVP Investor Relations, Strategy and Corporate Affairs
2
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. Words and phrases such as “is anticipated,” “is estimated,” “is expected,” “is
planned,” “is scheduled,” “is targeted,” “believes,” “intends,” “objectives,” “projects,” “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 presentation 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 crude oil, NGL, and natural gas prices, and refining and petrochemical 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 crude oil, natural gas, NGL, 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; 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.
CAUTIONARY STATEMENT
0
50
100
150
200
250
2002 2004 2006 2008 2010 20120
0.5
1
1.5
2
2.5
Total Recordable Rates
OPERATING EXCELLENCE
4
(Incidents per 200,000 Hours Worked)
20
09
20
10
20
11
20
12
20
13
U.S. Refining Emissions (Lb/MBbl)
(SOx, NOx, and Particulate Matter)
Industry Average
Phillips 66 CPChem DCP
See appendix for footnotes.
Midstream: Growth
Build on integrated Transportation system
Utilize Phillips 66 Partners LP as a growth vehicle
Expand DCP
Grow NGL Operations
Chemicals: Growth
Grow CPChem
Advance olefins and polyolefins projects
Capitalize on domestic feedstock advantage
Marketing & Specialties: Selective growth
Expand European Retail Marketing
Grow Lubricants
Ensure refinery pull-through
5
Refining: Enhance returns
Process more advantaged crudes
Expand export capability
Increase yields
Decrease costs
Optimize portfolio
SEGMENT STRATEGY
Gulf Coast Fractionator, Mont Belvieu, Texas.
2013 Sept Annualized ROCE
See appendix for footnotes.
15%
8%
7%
6%
PSX
OKE
EPD
KMP
HIGH-PERFORMING BUSINESSES
6
26%
23%
21%
19%
9%
PSX
LYB
WLK
XOM Chem
DOW
Chemicals ROCE
Midstream ROCE
17%
15%
8%
8%
6%
PSX
MPC
CVX
VLO
TSO
Refining and M&S ROCE
MIDSTREAM
MACRO ENVIRONMENT
7
1
2
3
4
5
6
2003 2008 2013 2018 2023
EIA Consultant A Consultant B Consultant C
Consultant D Consultant E Consultant F
Forecast History
Growing domestic NGL production is
reshaping U.S. midstream business
Wide range of consultant forecasts
Infrastructure needed to move new
production to market centers
U.S. NGL Production (MMBD)
500
1,000
1,500
2,000
2,500
3,000
2000 2005 2010 2015 2020 2025 2030
Demand
High Production
Low Production
8
Ethylene Production Cost Curve ($/ton)
U.S. Ethane Production and Demand (MBD)
CHEMICALS
MACRO ENVIRONMENT
See appendix for footnotes.
0
300
600
900
1,200
10 40 70 100 130
Cumulative Capacity MM tons
M.E. Ethane
N.A. Ethane
N.A. LPG/Naphtha M.E. LPG/Naphtha
Other LPG/Naphtha
Asia LPG/Naphtha
Europe LPG/Naphtha
Cumulative Capacity MM Tons
-25
-20
-15
-10
-5
0
5
1Q09 1Q10 1Q11 1Q12 1Q13
-25
-20
-15
-10
-5
0
5
1Q09 1Q10 1Q11 1Q12 1Q13
9
-25
-20
-15
-10
-5
0
5
1Q09 1Q10 1Q11 1Q12 1Q13
LLS - Brent (Nominal $/bbl)
WTI - LLS (Nominal $/bbl)
2009 – 2013 avg:
$-10.04/bbl
Maya - LLS (Nominal $/bbl)
2009 – 2013 avg:
$-11.25/bbl
REFINING
MACRO ENVIRONMENT
2009 – 2013 avg:
$1.18/bbl
7.4
5.4
0
2
4
6
8
10
2010 2013
Heavy Sweet Heavy Sour
Light/Medium Sweet Light/Medium Sour
10
U.S. tight oil and Canadian
production are displacing imports
Most grades of U.S. waterborne
imports have diminished
Expect trend to continue
Total U.S. Waterborne Crude Imports
(MMBD)
REFINING
MACRO ENVIRONMENT
See appendix for footnotes.
11
Build on integrated Transportation system
Utilize Phillips 66 Partners LP as a growth vehicle
Expand DCP
Grow NGL Operations
MIDSTREAM
GROWTH
MLP. Pecan Grove Crude Terminal, Carlyss, LA.
Crude rail cars
Jones Act ships
Unit train crude unloading facility projects
Clean products export facility projects
Terminal butane blending
Re-commission idle pipelines
New refinery storage
TRANSPORTATION
12 Jones Act tanker delivering Eagle Ford crude.
PHILLIPS 66 PARTNERS LP
13
Strategic relationship with PSX
Significant growth potential
Low cost capital source
Financial flexibility
$700 MM initial acquisition
Figures shown are 100% DCP.
14
2015+
DCP MIDSTREAM
Goliad Gas Plant
200 MMCFD
Granite Wash Gathering System
Expansion
140 MMCFD
National Helium Gas Plant
600 MMCFD
Rawhide Gas Plant
75 MMCFD
O’Connor Gas Plant
100 -- 160 MMCFD
Sand Hills
720 miles, 200 -- 350 MBD
Southern Hills
800 miles, 175 MBD
Front Range
435 miles, 150 -- 230 MBD
Texas Express
580 miles, 280 -- 400 MBD
Gathering and Processing NGL Pipelines
G&P Plant
Under construction/development
Expansion/Restart
DCP Legacy
New/Growth
Sand Hills and Southern Hills startup
Butane and butylene storage hub
Sweeny fractionator and pipelines
Freeport export terminal and de-ethanizer
Clemens salt dome storage
15
NGL OPERATIONS
Sand Hills Pipeline. Metering station. Mont Belvieu, Texas.
0.0
0.5
1.0
1.5
2.0
2010 2011 2012 2013 2014E
MIDSTREAM
GROWTH
16
Capital Program ($B)
NGL Operations
DCP Midstream
Transportation
See appendix for footnotes.
DC
P
NG
L O
ps a
nd
Tra
nsp
ort
ati
on
G&P in Execution
2013 2015 2017+ 2014 2016
Sand Hills and Southern Hills pipelines
Rail Offloading Facilities
Rail Cars
Butane and Butylene
Storage Hub
Sweeny fractionator, storage,
and pipelines
G&P Expansions
Freeport export terminal and de-ethanizer
New pipelines
2012
CHEMICALS
GROWTH
17
Grow CPChem
Advance olefins and polyolefins projects
Capitalize on domestic feedstock advantage
CPChem. Mesaieed, Qatar
-
5
10
15
20
25
CPC CPC '17 DOW XOM LYB WLK
Other
M.E. region
N.A. light feedstock
18
Portfolio concentrated in
advantaged feedstock regions
U.S. 100% light feedstock based
Leading Middle East position
First mover on U.S. expansions
See appendix for footnotes.
Other category is predominantly heavy feedstock capacity.
N.A. light feedstock is predominantly ethane, propane, and butane.
CHEMICALS
FEEDSTOCK ADVANTAGE
Worldwide Ethylene Capacity (Billion Lbs)
Estimated capex and EBITDA figures are 100% CPChem.
Estimated EBITDA based on 2012 IHS industry margins. 19
CHEMICALS
ADVANCING OLEFINS AND POLYOLEFINS PROJECTS
1-Hexene Unit
Sweeny Ethylene Furnace
NAO Expansion
US Gulf Coast
Petrochemicals Project
Capacity increase
25% from 2013 to 2017
Estimated project spending
$6.5 -- 7.0 B
Additional EBITDA
$1.3 -- 1.6 B per year 2017+
CPChem. Mesaieed, Qatar
20
0.0
0.4
0.8
1.2
2010 2011 2012 2013 2014E
CHEMICALS
EXECUTING GROWTH
Capital Program ($B)
2013 2015 2017+ 2014 2016
1-Hexene Unit
250 kMTA
Sweeny Ethylene
Furnace
90 kMTA
USGC Petrochemicals
1,500 kMTA (ethylene), 1,000 kMTA (polyethylene)
NAO Expansion
~130 kMTA
See appendix for footnotes.
2012
21
Process more advantaged crudes
Expand export capability
Increase yields
Decrease costs
Optimize portfolio
REFINING
ENHANCE RETURNS
San Francisco Refinery, Rodeo Facility. San Francisco, California.
REFINING
DIVERSIFIED PORTFOLIO
22
MI
Germany
HU WG
Ireland
United Kingdom
ME
Malaysia
Western / Pacific 440 MBD Central Region 475 MBD Gulf Coast 733 MBD Atlantic Basin / Europe 588 MBD
LA
SF
FD
BI
BG PC
BW
AL SW
WR
LC
Refinery system runs ~50% Sweet - 50% Sour crudes; ~65% Light/Medium - 35% Heavy crudes See appendix for footnotes.
REFINING
ADVANTAGED CRUDE
23
U.S. Refining (MBD)
Other
Light/Medium
Brent
Heavy
Canadian
WTI/WTS
See appendix for footnotes.
Current 3+ Years
Gasoline Gasoline
Distillate
Distillate
East East East
Gulf Gulf
Gulf
West
West
West
REFINING
ENHANCE RETURNS
24
Increase product placement optionality
Capture global demand growth
Maintain high utilization rates
2012 2013 3+ Years
Actual Actual Capacity Capacity Capacity
Domestic Exports (MBD)
100
285
180
410
500
See appendix for footnotes.
0%
10%
20%
30%
2010 2011 2012 2013
Adjusted ROCE (%)
REFINING
ENHANCE RETURNS
25
0.0
1.0
2.0
2010 2011 2012 2013 2014E
Refining WRB
Capital Program ($B)
26
Expand European Retail Marketing
Grow Lubricants
Ensure refinery pull-through
MARKETING AND SPECIALTIES
SELECTIVE GROWTH
Berlin, Germany
27
1.6
3.5
6.4
9.0
6.7
2%
6%
14%
22%
14%
2009 2010 2011 2012 2013
Midstream
Chemicals
Marketing & Specialties
Refining
Corporate
ROCE
Adjusted EBITDA and ROCE ($B)
FINANCIAL SUMMARY
Disciplined capital allocation
Enhanced financial flexibility
Growing shareholder distributions
20% - 30%
19.0 20.6 20.8 21.4 21.7 22.0 22.4
8.0 8.0 7.0 7.0 6.5 6.2 6.2
30%28%
25% 25%23%
22% 22%
2Q 2012 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013 4Q 2013
Equity $B Debt $B Debt to Capital
CAPITAL STRUCTURE
28
0
1
2
3
4
5
2012 2013 2014E 2012 2013 2014E 2012 2013 2014E
Midstream
Refining
Marketing & Specialties
Corporate
TOTAL CAPITAL PROGRAM
29
$B
See appendix for footnotes.
Phillips 66 Consolidated Selected Joint Ventures Total
DCP
CPChem
WRB
SHAREHOLDER DISTRIBUTIONS
30
0.0
1.0
2.0
3.0
4.0
3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 Total
Dividends
Share
Repurchases
Regular dividends
Secure
Growing
Competitive
Share repurchase
Immediate EPS growth
Below intrinsic value
Announced $5 B in buybacks
Distributions ($B)
$3.7 B capital returned to shareholders
A PROMISING FUTURE
31
Operating excellence
Growth
Returns
Distributions
High-performing organization
INSTITUTIONAL INVESTORS CONTACT
Rosy Zuklic
Manager, Investor Relations
[email protected] 832-765-2297
Save the date:
2014 Phillips 66 Analyst meeting
April 10, 2014
New York, NY
FOOTNOTES
33
Slide 4
Injury statistics do not include major projects.
Industry Averages are from: Phillips 66 –American Fuels and Petrochemical Manufacturers (AFPM) refining data, CPChem – American Chemistry Council (ACC), DCP – Gas Processors Association (GPA).
U.S. Refining emissions exclude Trainer. Values are calculated as pounds of SOx, NOx, and particulate matter per thousand barrels of clean product produced. WRB is included at 50%.
Slide 6
To facilitate peer comparison, PSX’s Refining and Marketing & Specialties segments were combined for the Downstream ROCE calculation and recast to exclude impacts of PSPI.
Downstream ROCE for MPC, VLO and TSO are total company.
Downstream ROCE for CVX estimated based on Downstream excluding Chemicals.
XOM Chem refers to Exxon Mobil’s Chemicals segment.
Slide 8
US Ethane Supply/Demand Imbalance Source: Historical: EIA; Forecast: P66 internal analysis
2013 Ethylene Production Cost Curve – Source: Wood Mackenzie, 2012 estimated data using Brent $112/bbl and Henry Hub $3/mbtu
Slide 10
Source: ClipperData
Crude definitions: Light >32API, Medium 32-34 API, Heavy <24 API. Sweet <0.5 sulfur, Sour >=0.5 sulfur
FOOTNOTES
34
Slide 16
DCP Midstream capital program includes equity share of DCP Midstream capital.
2012 NGL Ops includes acquisition costs for one-third interest of Sand Hills and Southern Hills Pipelines totaling approximately $0.5 B. This amount was also included in DCP Midstream's capital spending, primarily in 2012.
Slide 18
Source: ICIS , 10-K filings, and external press releases
Slide 20
Project capacities are gross capacity.
Chemicals capital program denotes equity share of CPChem capital.
Slide 22 Sour is defined as sulfur > 0.54wt% Heavy is defined as API < 24
Slide 23
U.S. advantaged crude percentages are on an equity basis. Light and medium Canadian crude are in the WTI/WTS category.
Slide 25
Capital program denotes equity share of WRB capital as well as non-cash capital leases.
Slide 29
Total capital program includes non-cash capital leases and our net share of certain equity affiliate investments.
PSXP - FIRST ACQUISITION OVERVIEW 35
PHILLIPS 66 PARTNERS LP
$700 MM Initial Acquisition in Feb 2014 Asset Overview
Gold Product Pipeline System
‒ 735-mile, 10-16” pipeline system
‒ Four truck rack terminals with an aggregate
capacity of 172 MBD
Two refinery grade propylene (RGP) spheres
‒ Newly constructed asset in Medford, OK
‒ 70 MBbls working capacity
‒ RGP outlet from Ponca City refinery
‒ Commercial operations began March 2014
2014 SENSITIVITIES
36
Sensitivities shown above are independent and are only valid within a limited price range
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 in Refining Margin 440
$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
$0.10/MMBtu Increase in Natural Gas price (10)
Impacts due to Actual Crude Feedstock Differing from Feedstock Assumed in Market Indicators:
NON-GAAP RECONCILIATIONS
ADJUSTED EARNINGS SLIDE 6
37
2013 2012 2011 2010 2009
Year Year Year Year Year
Midstream
Earnings (loss) 469$ 53$ 2,149$ 386$ 386$
Adjustments:
Net (gain) loss on asset sales - - (1,618) - (19)
Impairments - 330 4 - 79
Pending claims and settlements - (23) - - -
Gain on share issuance by equity affiliate - - - - (88)
Hurricane-related costs - 2 - - -
Adjusted earnings 469$ 362$ 535$ 386$ 358$
Chemicals
Earnings (loss) 986$ 823$ 716$ 486$ 228$
Adjustments:
Impairments - 27 - - -
Premium on early debt retirement - 89 - - -
Repositioning tax impacts - 41 - - -
Adjusted earnings 986$ 980$ 716$ 486$ 228$
Millions of Dollars
NON-GAAP RECONCILIATIONS
ADJUSTED EARNINGS SLIDE 6
38
2013 2012 2011 2010 2009
Year Year Year Year Year
Refining
Earnings (loss) 1,851$ 3,217$ 1,529$ (545)$ (536)$
Adjustments:
Net (gain) loss on asset sales - (104) 96 - -
Impairments - 606 314 1,110 -
Canceled projects - - 28 29 -
Severance accruals - - 15 28 -
Tax law impacts (13) - - - -
Pending claims and settlements - 19 - - 25
Repositioning tax impacts - 73 - - -
Hurricane-related costs - 33 - - -
Adjusted earnings 1,838$ 3,844$ 1,982$ 622$ (511)$
Marketing & Specialties
Earnings (loss) 790$ 417$ 530$ 537$ 519$
Adjustments:
Net (gain) loss on asset sales (23) (2) (23) (116) (13)
Impairments - - - 8 37
Pending claims and settlements (16) 38 - (35) -
Exit of business line 34 - - - -
Tax law impacts (4) - - - -
Repositioning tax impacts - 63 - - -
Adjusted earnings 781$ 516$ 507$ 394$ 543$
Millions of Dollars
NON-GAAP RECONCILIATIONS
2013 ROCE SLIDE 7
39 * Total equity plus total debt
September 30, 2013 YTDMidstream Chemicals
Refining and
M&S
Numerator ($MM)
Net Income 358$ 725$ 2,118$
After-tax interest expense - - -
GAAP ROCE earnings 358 725 2,118
Special Items - - (22)
Adjusted ROCE earnings 358$ 725$ 2,096$
Denominator ($MM)
GAAP average capital employed* 3,182$ 3,731$ 16,678$
Annual Adjusted ROCE 15% 26% 17%
Annual GAAP ROCE 15% 26% 17%
NON-GAAP RECONCILIATIONS
CPCHEM EBITDA SLIDE 20
40
Incremental Project Earnings Projections
EBITDA Reconcilation to Net Income - $MM
Estimated incremental net income (CPChem View) Low High
Estimated incremental net income 1,000 1,313
Estimated depreciation 280 260
Estimated interest - -
Estimated taxes 20 27
Estimated incremental EBITDA 1,300 1,600
NON-GAAP RECONCILIATIONS
REFINING ROCE SLIDE 26
41 * Total equity plus total debt
2013 2012 2011 2010
Year Year Year Year
Refining - ROCE
Numerator
Net Income 1,851$ 3,217$ 1,529$ (545)$
After-tax interest expense - - - -
GAAP ROCE earnings 1,851 3,217 1,529 (545)
Special Items (13) 627 453 1,167
Adjusted ROCE earnings 1,838$ 3,844$ 1,982$ 622$
Denominator
GAAP average capital employed* 14,252$ 14,331$ 15,160$ 16,829$
Annual Adjusted ROCE 13% 27% 13% 4%
Annual GAAP ROCE 13% 22% 10% -3%
Millions of Dollars
Except as Indicated
NON-GAAP RECONCILIATIONS
ROCE SLIDE 28
42 * Total equity plus total debt
2013 2012 2011 2010 2009
Year Year Year Year Year
Phillips 66 - ROCE
Numerator
Net Income 3,743$ 4,131$ 4,780$ 740$ 479$
After-tax interest expense 178 160 11 1 1
GAAP ROCE earnings 3,921 4,291 4,791 741 480
Special Items (83) 1,215 (1,227) 994 2
Adjusted ROCE earnings 3,838$ 5,506$ 3,564$ 1,735$ 482$
Denominator
GAAP average capital employed* 28,163$ 25,732$ 25,064$ 26,906$ 26,417$
Discontinued Operations (191) (176)$ (163)$ (168)$ (173)$
Adjusted average capital employed* 27,972$ 25,556$ 24,901$ 26,738$ 26,244$
Annual Adjusted ROCE 14% 22% 14% 6% 2%
Annual GAAP ROCE 14% 17% 19% 3% 2%
Millions of Dollars
Except as Indicated
NON-GAAP RECONCILIATIONS
ADJUSTED EBITDA SLIDE 28
43
2013 2012 2011 2010 2009
Year Year Year Year Year
Phillips 66
Net Income 3,743$ 4,131$ 4,780$ 740$ 479$
Less: Income from discontinued operations 61 48 43 30 19
Plus:
Income taxes 1,844 2,473 1,822 562 357
Net interest expense 258 231 (16) (41) (44)
Depreciation and amortization 947 906 902 874 873
EBITDA from continuing operations 6,731$ 7,693$ 7,445$ 2,105$ 1,646$
Adjustments (pre-tax):
Net (gain) loss on asset sales (40) (189) (1,636) (234) (37)
Gain on share issuance by equity affiliate - - - - (135)
Impairments - 1,197 506 1,512 129
Canceled projects - - 44 106 -
Severance accruals - - 24 28 -
Exit of business line 54 - - - -
Tax law impacts (28) - - - -
Pending claims and settlements (25) 56 - (56) 39
Premium on early debt retirement - 144 - - -
Repositioning costs - 85 - - -
Hurricane-related costs - 56 - - -
Adjusted EBITDA 6,692$ 9,042$ 6,383$ 3,461$ 1,642$
Millions of Dollars
NON-GAAP RECONCILIATIONS
ADJUSTED EBITDA SLIDE 28
44
2013 2012 2011 2010 2009
Year Year Year Year Year
Midstream
Net Income 486$ 60$ 2,154$ 391$ 389$
Income taxes 265 29 454 186 205
Net interest expense - - - - -
Depreciation and amortization 88 83 82 74 99
EBITDA 839$ 172$ 2,690$ 651$ 693$
Adjustments (pre-tax):
Net (gain) loss on asset sales - - (1,830) - (15)
Impairments - 523 6 - 70
Pending claims and settlements - (37) - - -
Gain on share issuance by equity affiliate - - - - (135)
Hurricane-related costs - 2 - - -
Adjusted EBITDA 839$ 660$ 866$ 651$ 613$
Millions of Dollars
NON-GAAP RECONCILIATIONS
ADJUSTED EBITDA SLIDE 28
45
2013 2012 2011 2010 2009
Year Year Year Year Year
Chemicals
Net Income 986$ 823$ 716$ 486$ 228$
Income taxes 375 366 252 194 67
EBITDA 1,361$ 1,189$ 968$ 680$ 295$
Adjustments (pre-tax):
Impairments - 43 - - -
Premium on early debt retirement - 144 - - -
Adjusted EBITDA 1,361$ 1,376$ 968$ 680$ 295$
Millions of Dollars
NON-GAAP RECONCILIATIONS
ADJUSTED EBITDA SLIDE 28
46
2013 2012 2011 2010 2009
Year Year Year Year Year
Refining
Net Income 1,851$ 3,217$ 1,529$ (545)$ (536)$
Income taxes 1,091 2,067 902 (56) (286)
Net interest expense - - (1) (2) (1)
Depreciation and amortization 685 655 664 659 641
EBITDA 3,627$ 5,939$ 3,094$ 56$ (182)$
Adjustments (pre-tax):
Net (gain) loss on asset sales - (185) 234 - -
Impairments - 606 500 1,500 -
Canceled projects - - 44 106 -
Severance accruals - - 24 28 -
Tax law impacts (22) - - - -
Pending claims and settlements - 31 - - 39
Hurricane-related costs - 54 - - -
Adjusted EBITDA 3,605$ 6,445$ 3,896$ 1,690$ (143)$
Millions of Dollars
NON-GAAP RECONCILIATIONS
ADJUSTED EBITDA SLIDE 28
47
2013 2012 2011 2010 2009
Year Year Year Year Year
Marketing & Specialities
Net Income 790$ 417$ 530$ 537$ 519$
Income taxes 376 250 311 331 446
Net interest expense - - (32) (40) (44)
Depreciation and amortization 103 147 153 141 132
EBITDA 1,269$ 814$ 962$ 969$ 1,053$
Adjustments (pre-tax):
Net (gain) loss on asset sales (40) (4) (40) (234) (22)
Impairments - - - 12 59
Pending claims and settlements (25) 62 - (56) -
Exit of business line 54 - - - -
Tax law impacts (6) - - - -
Adjusted EBITDA 1,252$ 872$ 922$ 691$ 1,090$
Millions of Dollars
NON-GAAP RECONCILIATIONS
ADJUSTED EBITDA SLIDE 28
48
2013 2012 2011 2010 2009
Year Year Year Year Year
Corporate
Net Income (431)$ (434)$ (192)$ (159)$ (140)$
Income taxes (263) (239) (97) (93) (75)
Net interest expense 258 231 17 1 1
Depreciation and amortization 71 21 3 - 1
EBITDA (365)$ (421)$ (269)$ (251)$ (213)$
Adjustments (pre-tax):
Impairments - 25 - - -
Repositioning costs - 85 - - -
Adjusted EBITDA (365)$ (311)$ (269)$ (251)$ (213)$
Millions of Dollars
NON-GAAP RECONCILIATIONS
SWEENY FRAC AND EXPORT EBITDA
49
Millions of Dollars
First Year
Sweeny Fractionator & Export Facility
Estimated net income 190$
Estimated income taxes 117
Estimated net interest expense 5
Estimated depreciation and amortization 118
Estimated EBITDA 430$