Phillips 66 at JPMorgan Energy, Power & Renewables Conference Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: John Royall - JPMorgan - Analyst : Very well. I think we'll dig in on almost everything you mentioned there. And so maybe we'll start with just a high-level question. The company is going through a fair amount of change with some inorganic growth in the midstream side, the fold in DCP, the acquisition of Pinnacle, and then recently, announced the sale on the REX pipeline. How do you think about the optimal business mix for the company within your different segments? Would you like to still continue to be bigger in midstream beyond what you've told us about and is refining the right size? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 18, 2024 / 2:55PM, PSX.N - Phillips 66 at JPMorgan Energy, Power & Renewables Conference

Question: John Royall - JPMorgan - Analyst : And maybe we can go through the reliability efforts you're making on the refining side, something that's been an initiative of yours since you took over in '22, you communicated to shareholders at your Investor Day around then. How's progress on the reliability side and on the capture side as well? And what inning do you think you are in overall? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 18, 2024 / 2:55PM, PSX.N - Phillips 66 at JPMorgan Energy, Power & Renewables Conference

Question: John Royall - JPMorgan - Analyst : And another program you've laid out to investors, and we appreciate that you've been very communicative in keeping us up to date on this. It's the cost save program. Maybe you can talk about what you've achieved on the cost side to date and what you've yet to achieve and how you plan to get that?

Question: John Royall - JPMorgan - Analyst : And sticking with refining, one key topic in the industry today is the startup of TMX. Can you talk about the puts and takes to Phillips 66 on a net basis? You probably -- it's negative for the Gulf Coast and Mid-Con systems. It's probably positive for the West Coast system. How should we think about the impact to PSX? And then how long do you think it'll take before TMX fills up and differentials start widening out again?

Question: John Royall - JPMorgan - Analyst : And then maybe we can drill in a little on recent major project startup, which is where they're renewed. It starting up at somewhat of a challenging time in the (inaudible) CFS markets. But operationally, has the facility running today? Are you still tracking towards full 50 kbd run rates by the second quarter end? And then as you start to report quarters with their renewed -- in the numbers, is there going to be a way to parse out the RD business from the refining business?

Question: John Royall - JPMorgan - Analyst : And then moving on to a business that you know well, which is the chemicals business. Ethane-based ethylene margins have recovered off of bottoms but still remain well below mid-cycle. What are your expectations for margins for the remainder of this year? And what do you think we need to see for margins to get back to mid-cycle?

Question: John Royall - JPMorgan - Analyst : And then maybe moving to the M&S business. And this is a business that's exceeded your prior guidance around mid-cycle levels for a couple of years now, what have been the key drivers of that performance? And then you recently announced the divestiture of the international part of this segment. Can you talk about that business and what was non-core about it and how you feel about the remainder within that international?

Question: John Royall - JPMorgan - Analyst : And then maybe we can move onto the balance sheet and capital allocation. Working capital has been a key driver of leverage now drifting above the 25% to 30% target range. What should we expect in terms of the pathway for leverage to get back to the top end of that range? And what's your expectation for when you might get back into that range? And could those efforts can move leverage down impact 2025 returns at all? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 18, 2024 / 2:55PM, PSX.N - Phillips 66 at JPMorgan Energy, Power & Renewables Conference

Question: John Royall - JPMorgan - Analyst : And then on the asset sales side, we talked about the international marketing piece. What are some other things that could be candidates for the sale program? And could there be a bigger business and maybe increasing the $3 billion target, something like chemicals could ever be on the table?

Question: John Royall - JPMorgan - Analyst : We have a little under five minutes. Do we have any questions from the audience? There's Michael.

Question: John Royall - JPMorgan - Analyst : Are you seeing any evidence of run cuts in Asia, Europe, or even here in the US?

Question: John Royall - JPMorgan - Analyst : Great. Mark, I think we're under a minute, so we're pretty much out of time. But I really appreciate your time today. Thanks for coming and have a great rest of your day.