Phillips 66

Welcome to the third quarter 2022 Phillips 66 Earnings Conference call. My name is Sylvie 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 Tietert, Vice President, Investor Relations. Jeff, you may begin.

Good morning, and welcome to Phillips' 66th Third Quarter Earnings Conference Call. Participants on today's call include Mark Lazor, President and CEO, Kevin Mitchell, EVP and CFO, Brian Mandel, EVP, Marketing and Commercial, Tim Roberts, EVP, Midstream and Chemicals, and Rich Harbison, SVP, Refining. Today's presentation material can be found on the investor relations section of the Phillips 66 website, along with supplemental financial and operating information. We provided supplemental information this morning for chemicals, refining, and marketing in midstream. The remaining supplemental information will be available with the 10Q filing. We'll return to the normal supplemental release next quarter. Slide two contains our safe harbor statement. We will be making forward-looking statements during today's call. 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. Before we begin our discussion, I would like to highlight that we will be hosting an investor day in New York on November 9th. With that, I'll turn the call over to Mark.

Thanks, Jeff. Our third quarter results reflect the continued favorable market environment and our strong operating performance. We ran at high rates during the summer driving season to meet peak demand for critical transportation fuel. Our refining business delivered improved market capture this quarter, supported by strong distillate cracks and wider discounts for heavy sour crews. In the third quarter, we had adjusted earnings of $3.1 billion, or $6.46 per cent. $6.46 per share. We generated $3.1 billion in operating cash flow. We're committed to strong shareholder distributions. During the quarter, we ramped up share repurchases in a meaningful way, purchasing almost $700 million of common stock. Including dividends, we returned $1.2 billion to shareholders. During the quarter, we continued to focus on operating excellence and advancing our strategic priorities. Our enterprise-wide business transformation is underway. The team is implementing key initiatives to deliver results. We look forward to providing more details at our Investor Day next week. In midstream, we realigned our economic and governance interests in DCP Midstream LP and Grey Oak Pipeline LLC. Our economic interest in DCP Midstream increased to 43%, and our economic interest in Grey Oak Pipeline decreased to 6.5%. At the same time, we made an offer to acquire all publicly held common units of DCP Midstream LP. Our increased interest in DCP Midstream allows for further integration and optimization across our NGL business. The well-headed market value chain structure will allow us to capture new commercial opportunities and optimize costs. Additionally, we started up FRAC4 at the Sweeney Hub on time and under budget. In October, FRAC4 achieved full run rates, bringing our total Sweeney Hub fractionation capacity to 550,000 barrels per day. CP Chem is pursuing a portfolio of high-return projects, enhancing its asset base as well as optimizing its existing operations. This includes growing its normal alpha-olefins business with a second world-scale unit to produce one hexene, a critical component in high-performance polyethylene. The unit is being constructed at CPCAM's Old Ocean, Texas facility and will produce 586 million pounds per year. CPCAM is also building a new propylene splitter at its Cedar Bayou facility, which will expand its capacity by 1 billion pounds per year. Both the one hexene and propylene splitter projects are expected to start up in the second half of 2023. TP Chem continues to develop two world-scale petrochemical facilities on the U.S. Gulf Coast and in Ras Laffan, Qatar. A final investment decision for the U.S. Gulf Coast project is expected before the end of this year. In refining, we're converting our San Francisco refinery into one of the world's largest renewable fuels facilities. The Rodeo Renewed project is expected to cost approximately $850 million and begin commercial operations in the first quarter of 2024. Upon completion, Rodeo will have over 50,000 barrels per day of renewable fuels production capacity. Now I'll turn the call over to Kevin to review the financial results.