Phillips 66

Welcome everyone to the first quarter 2023 Phillips 66 earnings conference call. My name is Ciara 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 of Investor Relations. Jeff, you may begin.

Good morning and welcome to Phillips 66 first quarter earnings conference call. Participants on today's call will include Mark Lazor, President, CEO, Kevin Mitchell, CFO, Brian Mandel, Marketing and Commercial, Tim Roberts, Midstream and Chemicals, and Rich Harbison, 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. 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. With that, I'll turn the call over to Mark. Thanks, Jeff.

Good morning, and thank you for joining us today. During the first quarter, we delivered strong financial and operating results. We had adjusted earnings of $2 billion, or $4.21 per share, a record first quarter. In refining, we successfully executed major plan maintenance and ran above industry average rates. Currently, our refineries are running at high utilization to meet demand and capture market opportunities as we enter summer driving season. We returned $1.3 billion to shareholders through dividends and share repurchases. In February, we raised our dividend 8% to $1.05 per share, demonstrating our ongoing commitment to a secure, competitive, and growing dividend. Our integrated diversified portfolio provides us with the ability to generate strong cash flow, return substantial cash to shareholders, and invest in the most attractive projects. We remain committed to operating excellence and disciplined capital allocation as we execute our strategy. Recently, our midstream refining and chemicals business were recognized for their exemplary safety performance in 2022. For the third consecutive year, midstream was awarded the American Petroleum Institute's Distinguished Pipeline Safety Award for large operators. This is the highest recognition by API for the midstream industry. The American fuel and petrochemical manufacturers recognized five of our refineries for outstanding safety performance. Sweeney Refinery received the Distinguished Safety Award for the second year in a row. Bayway, Borger, Santa Maria, and Ponca City refineries also earned safety awards. In chemicals, four CP Chem facilities were recognized with AFPM safety awards. We're honored to receive these awards and would like to recognize our employees' commitment to operating excellence. Congratulations to all the people working at these facilities. Well done. We started the year off well and continue to advance strategic priorities from our investor day late last year. Slide four summarizes progress toward our targets to create value and increase shareholder distributions. Since July of 2022, we've returned $3.7 billion to shareholders through share repurchases and dividends. We're on track to meet our target to return $10 to $12 billion over the 10 quarter period between July 2022 to year-end 2024. We had strong refining operational performance in the first quarter and market capture increased to 93%. In midstream, we're advancing our NGO well-head-to-market strategy. We recently achieved an integration milestone with the transition of DCP midstream employees to Phillips 66, enabling continued synergy capture. In anticipation of the DCP buy-in, we issued bonds and executed a delayed draw term loan We expect to close on the transaction by the end of the second quarter. We're advancing our business transformation initiatives, and we're on track to deliver $1 billion of annual run rate savings by year end. Next quarter, we'll provide a more detailed update on the cost savings achieved through the first half of the year. In refining, we're converting our San Francisco refinery into one of the world's largest renewables fuels facilities. The conversion will substantially reduce emissions from the facility and produce lower carbon intensity transportation fuels. In February, we safely shut down the Santa Maria facility as we continued to advance the project. We expect to 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. In chemicals, CP Chem is pursuing a portfolio of high-return projects, enhancing its asset base and optimizing its existing operations. This includes construction of a second world-scale 1-hexene unit in Old Ocean, Texas, and the expansion of propylene splitting capacity at its Cedar Bayou facility. Both projects are expected to start up in the second half of 2023. CP Chem and Qatar Energy are jointly building world-scale petrochemical facilities on the U.S. Gulf Coast and in Rastafan, Qatar, with startup at each facility expected in 2026. We look forward to continuing to update you on our strategic priorities. Now, I'll turn the call over to Kevin to review the financial results.