Phillips 66

Welcome to the third quarter 2020 Phillips 66 earnings conference call. My name is David, and I will be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session. Please note that this conference is being recorded. I will now turn the call over to Jeff Dieter, Vice President, Investor Relations. Jeff, you may begin.

Good morning, and welcome to the Phillips 66 Third Quarter Earnings Conference Call. Participants on today's call will include Greg Garland, Chairman and CEO, Kevin Mitchell, EVP and CFO, Bob Herman, EVP Refining, Brian Mandel, EVP Marketing and Commercial, and Tim Roberts, EVP of Midstream. Today's presentation material can be found on the investor relations section of the Phillips 66 website, along with supplemental financial and operating information. Slide 2 contains our safe harbor statement. We will be making forward-looking statements during the presentation and our Q&A session. Actual results may differ materially from today's comments. Factors that could cause actual results to differ are included here, as well as in our SEC filings. With that, I'll turn the call over to Greg Garland for opening remarks.

Okay, thanks, Jeff, and good morning, everyone, and thank you for joining us today. Our diversified integrated portfolio, strong balance sheet, and disciplined capital allocation enable us to navigate through this challenging market environment. In the third quarter, we delivered improved results in our midstream, chemicals, and marketing businesses. with an adjusted loss of $1 million, or one cent per share, and generated $795 million of operating cash flow, excluding working capital. We're proud of our employees and how they continue to step up to the challenges of 2020, including the pandemic, the West Coast fires, Gulf Coast hurricanes. Most recently, our people responded to the storms by helping their families, their neighbors, and safeguarding our assets. Through our employees' commitment to operating excellence, our facilities were secured and sustained minimal damage. Our company has provided $7 million in assistance to our employees and contributions to communities across the Gulf Coast to help those affected by the storms. Our employees continue to execute our strategy with an unwavering focus on operating excellence in what has been a very uncertain and challenging environment. Our year-to-date safety results are exceeding last year's industry-leading performance, despite the current challenges. Every day, we strive toward a zero-incident, zero-accident workplace and to keep our people healthy and safe. In the third quarter, we returned $393 million to our shareholders through dividends. We remain committed to a secure, competitive, and growing dividend. Since we formed the company, we returned over $27 billion to shareholders through dividends, share repurchases, and exchanges. In the near term, our focus is on ensuring the financial and operational strength of our company and overcoming this period of market weakness. We expect to exceed the $500 million in cost reductions and the $700 million in consolidated capital spending reductions announced earlier this year. We will continue to maintain disciplined capital allocation with a focus on long-term value creation for our shareholders. We're executing our growth strategy and achieved a major milestone with completion of the Sweeney Hub Phase 2 expansion. We completed the two new 150,000-barrel-a-day fractionators at the Sweeney Hub, bringing the site's total fractionation capacity to 400,000 barrels per day. Fract 2 reached full rates in September, and Fract 3 started operations in October. Both fractionators have operated at rates exceeding design capacity. The fractionators are supported by long-term customer commitments. The LF66 partners continue construction on the CDG pipeline, connecting its Clements storage caverns to petrochemical facilities in the Corpus Christi area. The project is backed by long-term commitments and is expected to be completed in mid-2021. At the South Texas Gateway Terminal, the first stock and 5.1 million barrels of storage capacity have been commissioned. Terminal operations are expected to ramp up through the end of this year as additional phases of construction are finished. We expect the project to be completed in the first quarter of 2021 with a total storage capacity of 8.6 million barrels and up to 800,000 barrels per day of export capacity. Field 66 partners owns a 25% interest in the terminal. As we wrap up our major projects in execution this year, we expect that total capital spending for 2021 will be $2 billion or less. We look forward to sharing the details of our 2021 capital program with you in December, following the approval of our board. Phillips 66 recognizes the climate challenge and is making investments to competitively position the company for a lower carbon future. Recently, we announced plans to reconfigure our San Francisco refinery in Rodeo, California, into the world's largest renewable fuels facility to meet the growing demand for renewable energy. The plant will no longer produce fuels from crude oil, but instead will have the flexibility to run used cooking oil, fats, greases, and other feedstocks. Upon completion in early 2024, the facility will have over 50,000 barrels per day or 800 million gallons per year of renewable fuel production capacity. This capital efficient investment is expected to deliver strong returns. The conversion is expected to reduce the plant's greenhouse gas emissions by 50% and help California meet its low-carbon objectives. Earlier this month, CVChem announced its first commercial-scale production of polyethylene from recycled mixed-waste plastics. This development is an important milestone, further demonstrating CVChem's commitment to proactively help the world find sustainable solutions, including elimination of plastics waste in the environment. We have a dual challenge of providing affordable, abundant, reliable energy to the world and also addressing the global climate challenge. Our company is committed to both while continuing to deliver shareholder returns. So with that, I'll turn the call over to Kevin to review the financials.