Phillips 66 DCP Merger Proposal
Non-GAAP Reconciliation
2019
Millions of Dollars
2020
2021
2022
1Q 2023
Reconciliation of Phillips 66 Net Income (Loss) to Adjusted EBITDA (cont'd)
Phillips 66 EBITDA, Adjusted for Special Items and Change in Fair Value of
NOVONIX Investment*, 4
6,771
1,105
5,159
14,493
3,274
Other Adjustments (pre-tax) 5:
Proportional share of selected equity affiliates income taxes
114
77
182
143
29
Proportional share of selected equity affiliates net interest
182
226
242
175
24
Proportional share of selected equity affiliates depreciation and amortization
799
816
812
788
186
Adjusted EBITDA attributable to joint venture partners' noncontrolling interests
Adjusted EBITDA attributable to public ownership interest in PSXP+
Phillips 66 Adjusted EBITDA*
(37)
(81)
(427)
(226)
(413)
(353)
(393)
(82)
$
7,453
1,834
5,921
15,090
3,287
*Refer to changes in "Basis of Presentation" on pg. 2.
+ On March 9, 2022, Phillips 66 Partners, LP, became a wholly owned subsidiary of Phillips 66
1 Costs related to the shutdown of the Alliance Refinery totaled $192 in 2021. Shutdown-related costs recorded in the Refining segment include pre-tax charges for asset retirements of $91 million recorded in depreciation and
amortization expense, and severance and other exit costs of $31 million. Shutdown-related costs in the Midstream segment include asset retirements of $70 million pre-tax recorded in depreciation and amortization expense. Costs
related to the shutdown of the Alliance Refinery totaled $26 million pre-tax in 2022. Shutdown-related costs recorded in the Refining segment include pre-tax charges for the disposal of materials and supplies of $20 million, and asset
retirements of $6 million recorded in depreciation and amortization expense.
2 Restructuring costs, related to Phillips 66's multi-year business transformation efforts, are primarily due to consulting fees. Additionally, 2022 included a held-for-sale asset impairment of $45 million.
3 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.
42021 information has been recast to exclude the change in fair value of our investment in NOVONIX.
5 Prior period information has been recast to include additional equity affiliates and for adjustments to basis difference amortization.
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