Phillips 66

Welcome to the first quarter 2021 Phillips 66 earnings conference call. My name is Hillary, 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 Dietert, Vice President and Professor Relations. Jeff, you may begin.

Good morning, and welcome to Phillips 66 first quarter earnings conference call. Participants on today's call will include Greg Garland, Chairman and CEO, Mark Lazor, President and COO, Kevin Mitchell, EVP and CFO, Bob Herman, EVP Refining, Brian Mandel, EVP Marketing and Commercial, and Tim Roberts, EVP Midstream. Today's presentation material can be found on the Investor Relations section of the along with supplemental financial and operating information. Slide two contains our safe harbor statement. We will be making forward-looking statements during today's 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 over the call to Greg.

Thanks, Jeff. Good morning, everyone, and thanks for joining us today. First, I'd like to welcome Mark Glazier, our new president and chief operating officer. I think many of you know Mark from his previous role as president and CEO of CP Chem. Mark, it's great to have you here with us at Phillips 66. In the first quarter, we had an adjusted loss of $509 million, or $1.16 per share. Our results reflect the impact of the severe winter storms in the U.S. Gulf Coast and central regions, where we experienced reduced volumes, increased utility costs, and maintenance and repair costs. We've safely resumed operations across our businesses following the storm-related downtime. We're proud of our employees and their commitment to operating excellence, particularly during these challenging times. Gasoline and diesel demand continues to recover, and product inventories have normalized, supporting higher refining margins and utilization rates. We expect continued recovery as we wrap up spring turnarounds and head into the summer driving season. Also, chemical facilities are back to normal operations with continued strong demand and margins. We remain optimistic about the impact COVID-19 vaccines and monetary stimulus will have on economic recovery in the back half of the year. Bleeding indicators suggest economic growth is accelerating. which supports demand for our products. In the first quarter, we returned $394 million to shareholders in dividends. We remain committed to a secure, competitive, and growing dividend. In February, we repaid $500 million of maturing debt. We will continue with a disciplined approach to capital allocation, including debt repayment, as cash generation improves. will maintain a conservative balance sheet and a strong investment grade credit rating. The South Texas Gateway Terminal commissioned additional storage, bringing the total capacity to 8.6 million barrels. This completes the final construction phase for this project. In addition, the terminal has up to 800,000 barrels per day of export capacity. Gold 66 Partners owns a 25% interest in the terminal. Phillips 66 Partners continued construction of the C2G pipeline, connecting its Clemens 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 Sweeney Hub, we plan to resume construction of Fract 4 in the second half of 2021, which will add 150,000 barrels per day. Upon completion, the Sweeney Hub will have 550,000 barrels per day of fractionation capacity supported by long-term customer commitments. In chemicals, CP Chem is advancing optimization and development opportunities. This includes improved projects at its Cedar Bayou facility that will increase production of ethylene and polyethylene. In addition, CP Chem is developing an expansion of its normal alpha-olfenase capacity. We're advancing our Rodeo Renewed project at the San Francisco Refinery. Earlier this month, we began renewable diesel production from a hydro-tributor conversion, which will ramp up to 8,000 barrels per day in the third quarter. Subject to permitting and approvals, full conversion of the facility is expected in early 2024. On completion, the facility will have over 50,000 barrels per day of renewable fuel production capacity. This capital and efficient investment is expected to deliver strong returns and reduce the facility's greenhouse gas emissions by 50%. This project will help California meet its lower carbon objectives. We're increasing our focus on lower carbon initiatives across the company. This includes the creation of the Emerging Energy Group earlier this year and ongoing research and development by our Energy Research and Innovation Organization. We've invested in Shell Rock Soy Processing, a joint venture that plans to construct a new soybean facility in Iowa. We expect the project to be completed in late 2022, and we will purchase 100% of the soybean oil production. We signed an MOU with Southwest Airlines to commercialize sustainable aviation fuel. we launched a technical collaboration with Radian, a leader in sodium ion battery technology to develop lower cost, higher performing animal materials for sodium ion batteries. These activities further our commitment to addressing the global climate challenge while delivering attractive shareholder returns. Finally, we'd like to comment on our company's operating excellence. We are honored that our refining, midstream, and chemicals businesses were recently recognized for 2020 safety performance. Six of our refineries were recognized by AFPM, including Lake Charles, Ponca City, and Santa Maria refineries, which received distinguished safety awards. This is the highest annual safety award in our industry and the fifth year in a row that our refineries have received this honor. Our midstream businesses was awarded API Distinguished Pipeline Safety Award for large operators. This is the highest recognition by API from the midstream industry. In addition, we're recognized by the Gas Processors Association for outstanding safety performance in midstream. In chemicals, AFPM selected CP Chem's Conroe, Orange, and Port Arthur facilities as recipients of the Elite Silver Safety Award. So congratulations to all these facilities. Well done. We're really proud of you. So with that, I'm going to turn the call over to Kevin to review the financial results.