Phillips 66 at Scotiabank Energy Conference (Virtual) Transcript

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

Question: Paul Cheng - Scotiabank Global Banking and Markets, Research Division - Analyst : Greg, energy transition has been the buzz word. So just curious that based on that, do you see any potential longer-term impact on your refining and midstream configuration? And how will Phillips 66 adjusts your overall investment mix over the next 5 years? 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 23, 2021 / 6:00PM, PSX.N - Phillips 66 at Scotiabank Energy Conference (Virtual)

Question: Paul Cheng - Scotiabank Global Banking and Markets, Research Division - Analyst : And Greg, to a large degree that I think Phillips 66 is unique among the refiners that you actually have your own research lab and research department, which is quite unique. And so when we're looking at energy transition, do you look at things that you are doing, whether you're seeing the battery, the solar, the hydrogen is generating offset of the carbon to your core business or that you think that could become a new business for you? 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 23, 2021 / 6:00PM, PSX.N - Phillips 66 at Scotiabank Energy Conference (Virtual)

Question: Paul Cheng - Scotiabank Global Banking and Markets, Research Division - Analyst : Yes. And Greg and the rest of the team, over the last 12 months, I think we have experienced something that we have never seen in our lifetime. And so a lot of the business taxes or the operation has been changed accordingly. So just curious that what have you learned from that process? And is there any lesson you will be able to apply in the post pandemic to make your operation even more efficient or better? And also, from that standpoint, in a low-carbon world and in the post pandemic, do you believe you have the right human organization and the skill set or that you may have some area that you may need to make some changes?

Question: Paul Cheng - Scotiabank Global Banking and Markets, Research Division - Analyst : Greg, since you mentioned about the digitalization, can you give us an update where is your program last? I think the year before in 2019 in your Analyst Day, you pop out the AdvantEdge66, where are we in that program? I mean, given the pandemic, are we seeing that being accelerated or that is being delayed?

Question: Paul Cheng - Scotiabank Global Banking and Markets, Research Division - Analyst : That's impressive. And Greg, just to that, I mean, I think ever since you've become a public company, you have been always a very unique and also a well-defined cash flow usage system, 60% reinvestment and 40% for distribution. And in the post-pandemic and also in the low-carbon world, do you think that, that distribution take sort of 60%, reinvest 40%, is that still a reasonable proxy going forward or that, that needs to be adjusted also? And also that from a balance sheet standpoint, even though you have had some debt during this downturn, I mean, you still have a good balance sheet. But as I said that, given the new world so to state, given the volatility in the market, do you think that on the longer-term basis that you really want to drive your net debt down significantly?

Question: Paul Cheng - Scotiabank Global Banking and Markets, Research Division - Analyst : Wonderful. Greg, I mean, marketing is an area that has been a pretty strong contributor to your free cash flow and earning over the last couple of years. And how does that fit into your long-term portfolio under a low-carbon world? And then if at some point that the gasoline demand will come down, I mean how should we look at that business?

Question: Paul Cheng - Scotiabank Global Banking and Markets, Research Division - Analyst : Well, that's wonderful. Right now is 2:25 in -- New York time. So I wish I have more time because that I can learn from you gentlemen, by that time I can talk for another 2 hours. But with that, I also want to keep you on schedule for your one-on-one. So we will end the session here, and thank you very much for your time and taking time out from your business schedule. We appreciate it. Thank you, Greg, Bob, Mark and Jeff. Have a good day.