Phillips 66 (NYSE:PSX) Q3 2020 Earnings Conference Call - Final Transcript

Welcome to the Third Quarter 2020 Phillips 66 Earnings Conference Call. My name is David, and I will be your operator for today's call. [Operator Instructions] Please note that this conference is being recorded.

I will now turn the call over to Jeff Dietert, Vice President, Investor Relations. Jeff, you may begin.

Good morning, and welcome to the Phillips 66 third quarter earnings conference call. Participants on today's call will include Greg Garland, Chairman and CEO; Kevin Mitchell, EVP and CFO; Bob Herman, EVP Refining; Brian Mandell, EVP Marketing and Commercial; and Tim Roberts, EVP of Midstream.

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 2 contains our safe harbor statement. We will be making forward-looking statements during the presentation and our Q&A session. 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 Greg Garland for opening remarks.

Okay, thanks, Jeff, and good morning, everyone, and thank you for joining us today. Our diversified integrated portfolio, strong balance sheet and disciplined capital allocation enable us to navigate through this challenging market environment.

In the third quarter, we delivered improved results in our Midstream, Chemicals and Marketing businesses, with an adjusted loss of $1 million or $0.01 per share and generated $795 million of operating cash flow, excluding working capital.

We're proud of our employees and how they continued to step up to the challenges of 2020, including the pandemic, the West Coast fires, Gulf Coast hurricanes. Most recently, our people responded to the storms by helping their families, their neighbors, and safeguarding our assets. With our employee's commitment to operating excellence, our facilities were secured and sustained minimal damage.

Our Company has provided $7 million in assistance to our employees and contributions to communities across the Gulf Coast to help those affected by the storms. Our employees continue to execute our strategy with an unwavering focus on operating excellence in what has been a very uncertain and challenging environment.

Our year-to-date safety results are exceeding last year's industry-leading performance despite the current challenges. Every day, we strive toward a zero incident, zero accident workplace and to keep our people healthy and safe.

In the third quarter, we returned $393 million to our shareholders through dividends. We remain committed to a secure, competitive and growing dividend. Since we formed the Company, we returned over $27 billion to shareholders through dividends, share repurchases and exchanges.

In the near-term, our focus is on ensuring the financial and operational strength of our Company and overcoming this period of market weakness. We expect to exceed the $500 million in cost reductions and the $700 million in consolidated capital spending reductions announced earlier this year. We will continue to maintain disciplined capital allocation with a focus on long-term value creation for our shareholders.

We're executing our