Phillips 66

Welcome to the second quarter 2025 Phillips 66 Earnings Conference Call. My name is Emily and I'll be your operator for today's call. At this time, all participants are in the listen-only mode. Later, we will conduct a question and answer session. Please note that this conference is being recorded. I'll now turn the call over to Jeff Detert, Vice President, Investor Relations. Jeff, you may begin.

Welcome to Phillips 66 Earnings Conference Call. Participants on today's call will include Mark Lazor, Chairman and CEO, Kevin Mitchell, CFO, Don Baldrige, Midstream and Chemicals, Rich Harbison, Refining, and Brian Mandel, Marketing and Commercial. Today's presentation 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. Welcome, everyone, to our second quarter earnings call. We had a strong financial and operating results this quarter. They're a reflection of our focused strategy, disciplined execution, and meaningful progress toward achieving our 2027 strategic priorities. Coming off our large spring turnaround program, we said we were positioned to capture a strengthening market, and we delivered. Our refining assets ran at 98% utilization, the highest since 2018. Clean product yield was over 86%. We captured 99% of our market indicator and achieved our lowest adjusted cost per barrel since 2021. Along with refining, the other parts of our integrated business delivered. Midstream generated adjusted EBITDA of approximately $1 billion. We're on track to achieve the $4.5 billion annual EBITDA target in Midstream by 2027. Marketing and Specialties reported its strongest quarter since 2022. The combination of stable contributions from Midstream and Marketing and Specialties provide a robust platform for our capital allocation framework. We returned over $900 million to shareholders this quarter. The resilience of our integrated business model drives results delivering consistent returns to shareholders. Slide four shows the progress we've made in our refining business from targeted, low capital, high return investments and a dedication to operating excellence. The results are clear. Utilization is improving and we're consistently above industry average. We've been setting new clean product yield records Year to date, our yield is 2% higher than the previous record for the same period set in 2024. These factors have contributed to market capture improving to 99% of our published refining indicator this quarter. Year to date, market capture has increased 5% compared to the first half of last year. Our goal is to drive performance in any market environment while running our assets safely and reliably. The second quarter PSX market indicator was just over $11 a barrel. As a reminder, for every dollar per barrel that the indicator increases, EBITDA increases by roughly $170 million per quarter. In the second quarter, we achieved the lowest refining adjusted cost per barrel since 2021. The organization has done a fantastic job embracing a culture of continuous improvement, enabling us to more than offset inflation. By 2027, we expect to see the adjusted cost per barrel number below $5.50 per barrel on an annual basis. Midstream is a key growth driver for our company and creates ongoing value for our shareholders through reliable, long-term cash generation. Slide 5 shows the increase in quarterly average adjusted EBITDA from $500 million in 2021 to $1 billion this quarter. We reached significant milestones in the second quarter as we continue to enhance our integrated wellhead to market strategy. We acquired Epic NGL, now renamed Coastal Bend, at the beginning of the quarter. We're also near completion on the capacity expansion pipeline project from 175 to 225,000 barrels per day. The Dos Picos II gas processing plant came online ahead of schedule and on budget at the end of the second quarter. This plant and the previously announced Iron Mesa plant are great examples of highly strategic and selective investments that enhance Midstream's return on capital employed. These projects contribute to our plan to organically grow Midstream EBITDA to $4.5 billion by 2027. Midstream is an important part of the Phillips 66 story. We're executing on our well-head-to-market strategy, and the results are coming through. Over the past several months, we've had the opportunity to extensively engage with shareholders leading up to and following the annual shareholder meeting. These conversations provided valuable, constructive feedback on our strategic direction, along with the support of our priorities. We will remain focused on four key areas. enhancing our refining competitiveness, driving organic growth in midstream, reducing debt, and returning over 50% of net operating cash flow to shareholders through share repurchases and a secure, competitive, and growing dividend. We've made substantial progress and remain committed to maintaining safe and reliable operations as we execute on achieving these initiatives by 2027. In the second quarter, we welcome the addition of three new board members. As we do with all new directors, each new board member participated in a comprehensive multi-day onboarding process with a broad group of our senior leadership team, equipping them to contribute meaningfully and immediately. The extensive industry experience of our board members continues to promote thoughtful discussion and thorough evaluation of all opportunities for maximizing shareholder value. Now I'll turn the call over to Kevin to cover the results for the quarter.