Phillips 66 DCP Merger Proposal
Non-GAAP Reconciliation
Reconciliation of Midstream - NGL & Other Pre-Tax Income (Loss) to Adjusted EBITDA
Midstream pre-tax income (loss)
Plus:
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
DCP integration restructuring costs 1
Total Special Item Adjustments (pre-tax)
EBITDA, Adjusted for Special Items*
Other Adjustments (pre-tax)2:
2019
Millions of Dollars
2020
2021
2022
1Q 2023
(350)
(624)
452
4,000
408
139
154
191
394
184
(211)
(470)
643
4,394
592
853
1,161
47
1
9
4
13
(2,831)
18
12
900
1,171
13
(2,800)
12
689
701
656
1,594
604
Proportional share of selected equity affiliates income taxes
9
1
Proportional share of selected equity affiliates net interest
77
161
85
50
Proportional share of selected equity affiliates depreciation and amortization
119
224
79
73
14
Adjusted EBITDA attributable to joint venture partners' noncontrolling interests, excluding PSXP
Midstream Adjusted EBITDA*
(37)
(368)
(222)
$
885
1,058
820
1,350
396
* 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.
2 Prior period information has been recast to include additional equity affiliates and for adjustments to basis difference amortization.
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PHILLIPS
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