Phillips 66 at Piper Sandler Energy Conference Transcript

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

Question: Ryan Todd - Piper Sandler & Co. - Analyst : Maybe we'll start it off. I want to start off talking about midstream and we're going to kick down the line a little bit, the elephant in the room regarding the Midstream, but if we can just talk a little bit about what you've built in the Midstream over the last few years in particular? What you've been able to build? Where do you think it's headed? What do you think are the relative strengths or weaknesses within your Midstream portfolio at this point?

Question: Ryan Todd - Piper Sandler & Co. - Analyst : So anything -- I guess, as you think about that, any weaknesses? Do you feel like it's relatively balanced at this point or anything that you think you need to address to kind of --

Question: Ryan Todd - Piper Sandler & Co. - Analyst : Great. Thanks. So maybe with all that being said, I'll address the headline question here, obviously. Like what is the risk that the market never adequately recognizes the value of the Midstream business? You've obviously got an activist investor that's pushing this case. Why do you think the Midstream is better positioned within your portfolio versus spinning it out?

Question: Ryan Todd - Piper Sandler & Co. - Analyst : Thanks. You talked a little bit about refining there. I want to shift the conversation a little bit to stock refining. Since the start of the year, there's been a significant amount of volatility in refining markets. Margins have improved a bit over the last couple of months. What's your latest -- you guys always have a pretty informed view. What's your latest view on refining supply, demand as you look, right now, as you look over the remainder of the year?

Question: Ryan Todd - Piper Sandler & Co. - Analyst : Thanks. And then still on Refining, I mean you've had a plan going on for a few years here, the self-help improvement plan on operational reliability, capture improvement, et cetera. You lowered operating costs by about $1 a barrel and improved the reliability of the assets. What do you think are the next steps of improvement or the biggest needle movers from here when you look going forward?

Question: Ryan Todd - Piper Sandler & Co. - Analyst : All right. Thanks. And on the Chemicals side, you've got a couple of big projects underway, if you can -- that should start up over the next few years? Where are we on the road back to mid-cycle? What do you think it takes to get there?

Question: Ryan Todd - Piper Sandler & Co. - Analyst : And then maybe similar to the question on the Midstream, how do you view CPChem has positioned in terms of core position within the portfolio? What do you think would be the benefits or the risks of monetizing CPChem?

Question: Ryan Todd - Piper Sandler & Co. - Analyst : Okay. Renewable diesel. Lots of uncertainty out there right now, a lot of moving pieces, right? You've got ETC expiry, you've got the PTC, which may or may not last depending on what happens with the IRA. Moving pieces in California with the Low Carbon Fuel Standard. So can you maybe talk about how you view the near-term and the medium-term outlook for that business? It's clearly pretty challenging at the moment, but where do we go from here? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 18, 2025 / 5:50PM, PSX.N - Phillips 66 at Piper Sandler Energy Conference

Question: Ryan Todd - Piper Sandler & Co. - Analyst : Right. One on the balance sheet or just use of cash. You have -- headline optics might suggest on a consolidated basis that you might delever a little bit based on your Midstream weighting, as I think you've talked about before, you could argue in a different way that you might be actually underlevered. What's the right amount of debt for your business? And how should we think about how you're approaching that from a cash point of view?

Question: Ryan Todd - Piper Sandler & Co. - Analyst : Thanks, Mark. I think that's all the time we have. We really appreciate it.