So that said, it's my pleasure to introduce the designated Chairman and CEO of Phillips 66, Mr. Greg Garland.Greg C. Garland Thanks, Clayton, and good morning, everyone. I want to welcome you to our worldwide webcast. We really appreciate your interest in our new company, and we're excited to share with you the story of Phillips 66. So I'm going to start on Slide 3. This is my first opportunity to speak about Phillips 66 to the financial community since being designated as CEO of the company. So I thought that today I could share with you some of my perspectives about the company as we approach May 1. I'm sure you've seen the announcement last week that our board did approve the spin transaction that'll be effective May 1. So we've been working hard executing separation plans, getting ready for day one, and we're ready to go. So there's a couple of things as I think about Phillips 66. First of all, we believe we have an unparalleled foundation for success for our company. Clearly, we think we have 3 leading operating segments. We have a global Refining, Marketing, transportation business. We have one of the largest midstream businesses in the U.S., and we have a growing chemicals business, which is one of the world's top producers of olefins and polyolefins. We think we have an experienced management team in place. We have a talented global workforce. They are enthusiastic and ready to go, day one. We have a strong technology position in our company and a solid financial position starting out. Secondly, we have a clear strategy to improve our returns and our growth. And then finally, we think that investors are going to like our plans for continued strong distributions. We have a history of being shareholder-friendly. That will continue. We will pay competitive dividends. We believe in increasing those dividends over time. And we're going to generate excess cash, and we'll use some of that to purchase shares.
So on Slide 4, during the last 3 years, at ConocoPhillips we've been going through a repositioning or a reset. In the R&M business, we've been working to improve returns in that segment. We've clearly been the beneficiary of some improved margins along the way, but we've also been working the portfolio hard. We've been selling and shutting down unprofitable assets. We've been working to push margins and increase yields in the business, and we've been tightening and focusing our capital expenditures.In our Chemicals and our Midstream businesses, clearly, returns have been in excess of 20% over the last 3 years. We expect to maintain strong returns in these businesses while capturing growth opportunities. And you can see that the income of the Phillips 66 company has increased from about $500 million in 2009 to $3.6 billion last year. On Slide 4 -- excuse me, Slide 5, you can see that we're taking steps to shift our portfolio to higher-returning segments. Over the past 3 years, we've reduced Refining capacity about 450,000 barrels a day. And in our Chemicals segment, we've been growing primarily through investments in the Middle East. In our Midstream segment, growth has come from expansions around the shale liquids and gas-producing areas. We've also sold about $2.5 billion worth of assets over the last 3 years in this segment. Slide 6 shows our capital employed for each of these 3 segments versus some of our competitors. In 2011, you can see in R&M, we were mid-pack for ROCE. We'll talk later about our plans to improve ROCE in this segment and what we can do there. Both CPChem and DCP have been leaders in their respective peer groups in return on capital employed. Slide 7, operating excellence. Our company has a strong history of operating excellence, and personally, I have a real passion for OE. And for me, OE, it's personal safety, it's process safety, it's environmental excellence, it's reliability. We expect employees can work one day, one week, one month, even an entire career without getting hurt. In over 30 years, I've observed that our safest facilities tend to have the best cost structures. They tend to be the most reliable facilities that we have, so there's solid business reasons for focusing on operating excellence. It's clearly a foundation for sustainable value. So we've got more work to do here. 0 is the target, and that's where we're heading. Read the rest of this transcript for free on seekingalpha.com