THIRD QUARTER 2018 EARNINGS CALL AND WEBCAST. October 26, 2018

Transcription

1 THIRD QUARTER 2018 EARNINGS CALL AND WEBCAST October 26, 2018

2 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. 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 Partners 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 the continued ability of Phillips 66 to satisfy its obligations under our commercial and other agreements; the volume of crude oil, refined petroleum products and NGL we or our joint ventures transport, fractionate, terminal and store; the tariff rates with respect to volumes that we transport through our regulated assets, which rates are subject to review and possible adjustment by federal and state regulators; fluctuations in the prices for crude oil, refined petroleum products and NGL; liabilities associated with the risks and operational hazards inherent in transporting, fractionating, terminaling and storing crude oil, refined petroleum products and NGL; potential liability from litigation or for remedial actions, including removal and reclamation obligations under environmental regulations; the failure to complete construction of announced and future capital projects in a timely manner and any cost overruns associated with such projects; and other economic, business, competitive and/or regulatory factors affecting Phillips 66 Partners businesses generally as set forth in our filings with the Securities and Exchange Commission. Phillips 66 Partners 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 Measures. Today s presentation includes non-gaap financial measures. You can find the reconciliations to comparable GAAP financial measures at the end of the presentation materials or in the Financial Information section of our website. 2

3 OVERVIEW 3Q 2018 $MM (unless otherwise noted) Adjusted EBITDA $ 305 Net Income 217 Distributable Cash Flow* 218 Distribution per Common LP Unit ($/unit) *Distributable cash flow is net of distributions to Series A Preferred equity 3

4 Coverage Ratio Dist. / Common LP Unit (cents/unit) DISTRIBUTION GROWTH * Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q * Represents the minimum quarterly distribution for 3Q 2013, actual distribution of cents equal to MQD prorated 4

5 FINANCIAL HIGHLIGHTS 20 Adjusted EBITDA ($MM) Q 2018 Joint Ventures Wholly Owned Assets 3Q 2018 Distributable Cash Flow ($MM) 29 (13) (2) Q 2018 Adjusted EBITDA Maintenance Capital Expenditures Other 3Q

6 FINANCIAL FLEXIBILITY AND LIQUIDITY 3Q 2018 $MM (unless otherwise noted) Cash and cash equivalents $ 100 Total assets 5,643 Total liabilities 3,200 Revolving credit facility availability 750 Debt-to-EBITDA ratio* 2.8x *Leverage ratio estimated on credit facility covenant basis. 6

7 PSXP ORGANIC GROWTH Project Completion Date Gross Capital ($MM) PSXP Equity (%) Sacagawea Gas Pipeline 3Q Sand Hills Pipeline expansion 4Q Bayou Bridge Pipeline (segments I and II) 4Q Lake Charles products pipeline 2Q Lake Charles isomerization unit 3Q Gray Oak Pipeline 4Q , * South Texas Gateway Terminal 4Q Clemens Caverns expansion 4Q Projects expected to have typical Midstream EBITDA build multiples (6x 8x) * PSXP equity of 42.25% assumes all third party options are exercised Assumes midpoint of capital range 7 7

8 QUESTIONS AND ANSWERS EARNINGS CALL AND WEBCAST October 26, 2018

9 APPENDIX

10 FINANCIAL RESULTS (CONSOLIDATED) $MM (unless otherwise noted) 3Q Q 2018 Revenues and other income $ 384 $ 354 Costs and expenses Income before income taxes Income tax expense Net Income Less: Net income attributable to Predecessors Net income attributable to PSXP Adjusted EBITDA Distributable Cash Flow Quarterly Distribution (cents/unit)

11 OPERATIONAL HIGHLIGHTS 3Q Q 2018 Wholly Owned Operating Data Pipelines Pipeline revenues ($ MM) Pipeline volumes (1) (MBD) Crude oil 1,047 1,020 Refined products and NGL Total 2,006 1,940 Average pipeline revenue per barrel ($s) Terminals Terminal revenues ($ MM) Terminal throughput (MBD) Crude oil (2) Refined products Total 1,190 1,277 Average terminaling revenue per barrel ($s) Storage, processing and other revenues ($ MM) Total operating revenues ($ MM) Joint Venture Operating Data (3) Crude oil, refined products and NGL (MBD) Note: Excludes predecessor results (1) Represents the sum of volumes transported through each separately tariffed pipeline segment. (2) Bayway and Ferndale rail rack volumes included in crude oil terminals. (3) Proportional share of total pipeline and terminal volumes of joint ventures consistent with recognized equity in earnings of affiliates. 11

12 NON-GAAP RECONCILIATION $MM 3Q Q Q Q Q 2017 Net income attributable to the Partnership Plus: Net income attributable to Predecessors 2 32 Net income Plus: Depreciation Net interest expense Income tax expense EBITDA Proportional share of equity affiliates net interest, taxes and depreciation Expenses indemnified by Phillips Transaction costs associated with acquisitions EBITDA attributable to Predecessors (36) Adjusted EBITDA Plus: Deferred revenue impacts * (5) (5) 5 (3) 1 Less: Equity affiliate distributions less than proportional EBITDA Maintenance capital expenditures Net interest expense Preferred unit distributions Distributable cash flow * Difference between cash receipts and revenue recognition Excludes MSLP capital reimbursements and turnaround impacts 12

13 NON-GAAP RECONCILIATION $MM 3Q Q Q Q Q 2017 Net cash provided by operating activities Plus: Net interest expense Income tax expense Changes in working capital (7) (10) (17) (19) Undistributed equity earnings (2) (1) 8 1 (9) Deferred revenue and other liabilities (45) 2 Other (5) (2) (6) EBITDA Proportional share of equity affiliates net interest, taxes and depreciation Expenses indemnified by Phillips Transaction costs associated with acquisitions EBITDA attributable to Predecessors (36) Adjusted EBITDA Plus: Deferred revenue impacts * (5) (5) 5 (3) 1 Less: Equity affiliate distributions less than proportional EBITDA Maintenance capital expenditures Net interest expense Preferred unit distributions Distributable cash flow * Difference between cash receipts and revenue recognition Excludes MSLP capital reimbursements and turnaround impacts 13