Phillips 66 DCP Merger Proposal
Non-GAAP Reconciliation
Reconciliation of Midstream Pre-Tax Income (Loss) to Adjusted EBITDA
Midstream pre-tax income (loss)
Plus:
Millions of Dollars
2019
2020
2021
2022 1Q 2023
$
597
(116) 1,500
4,734
702
Depreciation and amortization
Midstream EBITDA*
Special Item Adjustments (pre-tax):
Impairments
Impairments by equity affiliates
Hurricane-related costs
Winter-storm-related costs
Lower-of-cost-or-market inventory adjustments
Net gain on asset dispositions
Pension settlement expense
Merger transaction costs
Gain related to merger of business
291
313
425
568
224
888
197
1,925 5,302
926
853
1,461
208
47
☑│
L
4
(84)
(36)
8
13
(3,013)
DCP integration restructuring costs¹
18
12
Total Special Item Adjustments (pre-tax)
900
1,391
222
(2,982)
(24)
Change in Fair Value of NOVONIX Investment
(370)
442
12
EBITDA, Adjusted for Special Items and Change in Fair Value of NOVONIX Investment*, 2
1,788
1,588
1,777
2,762
914
Other Adjustments (pre-tax)³:
Proportional share of selected equity affiliates income taxes
Proportional share of selected equity affiliates net interest
Proportional share of selected equity affiliates depreciation and amortization
Adjusted EBITDA attributable to joint venture partners' noncontrolling interests, excluding PSXP
Midstream Adjusted EBITDA*
-
$ 2,175
12
9
14
13
4
138
161
169
119
13
237
224
229
209
41
(37)
(81)
(427)
(226)
1,945
2,108
2,676
746
* Refer to changes in "Basis of Presentation" discussion on pg 2.
1 Restructuring costs, related to the integration of DCP Midstream, primarily reflect severance costs and consulting fees. A portion of these costs are attributable to noncontrolling interests.
22021 information has been recast to exclude the change in fair value of our investment in NOVONIX.
3 Prior period information has been recast to include additional equity affiliates and for adjustments to basis difference amortization.
PHILLIPS
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