UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K
 
CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported): July 31, 2015

Phillips 66
(Exact name of registrant as specified in its charter)

	
					
Delaware	 	001-35349	 	45-3779385	
(State or other jurisdiction of incorporation)	 	(Commission File Number)	 	(I.R.S. Employer Identification No.)	

3010 Briarpark Drive, Houston, Texas 77042
(Address of principal executive offices and zip code)

Registrant’s telephone number, including area code: (281) 293-6600

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 
Item 2.02 Results of Operations and Financial Condition.
On July 31, 2015 , Phillips 66 issued a press release announcing the company's financial and operating results for the quarter ended June 30, 2015 . A copy of the press release is furnished as Exhibit 99.1 hereto and incorporated herein by reference. Additional financial and operating information about the quarter is furnished as Exhibit 99.2 hereto and incorporated herein by reference.
The information in this report and the exhibits hereto shall not be treated as filed for purposes of the Securities Exchange Act of 1934, as amended.

Item 9.01 Financial Statements and Exhibits.
(d) Exhibits

				
 	99.1	—	Press release issued by Phillips 66 on July 31, 2015.	
 	99.2	—	Supplemental financial and operating information.	

2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	
		
 	PHILLIPS 66	
 	 	
By:	/s/ Chukwuemeka A. Oyolu	
 	Chukwuemeka A. Oyolu
Vice President and Controller	
 	 	
July 31, 2015	 	

3

EXHIBIT INDEX

	
		
Exhibit	 	
No.	Description	

		
99.1	Press release issued by Phillips 66 on July 31, 2015.	

		
99.2	Supplemental financial and operating information.	

4

Phillips 66 Reports Second-Quarter Earnings of $1.0 Billion (Adjusted Earnings of $1.0 Billion)

	

Phillips 66 Reports Second-Quarter Earnings of $1.0 Billion
or $1.84 Per Share
Adjusted earnings of $1.0 billion or $1.83 per share

Highlights

•	$1.8 billion operating cash flow excluding working capital; $1.4 billion including working capital	
		
•	Improved Chemicals Olefins & Polyolefins cash chain margins	
		
•	Sweeny Fractionator One nearing completion	
		
•	Refining utilization at 90 percent; clean product yield of 84 percent	
		
•	Increased quarterly dividend 12 percent to $0.56 per common share	

HOUSTON, July 31, 2015 — Phillips 66 (NYSE: PSX), an energy manufacturing and logistics company, announces second -quarter earnings of $1,012 million , compared with earnings of $987 million in the first quarter of 2015 . Adjusted earnings were $1,002 million , an increase of $168 million from the last quarter.

“Our Refining, Chemicals, and M&S businesses delivered a strong quarter, providing solid earnings and cash flow,” said Greg Garland, chairman and CEO of Phillips 66. "We operated well, executed major turnaround activity and progressed our capital projects. We also returned more than $600 million to shareholders through dividends and share repurchases."

Page 1

Phillips 66 Reports Second-Quarter Earnings of $1.0 Billion (Adjusted Earnings of $1.0 Billion)

Midstream

											
 	Millions of Dollars	
 	Earnings	 	Adjusted Earnings	
 	2nd Qtr
2015	1st Qtr
2015	 	2nd Qtr
2015	1st Qtr
2015	
Transportation	$	65		65		 	65		65		
NGL	8		14		 	8		14		
DCP Midstream	(151	)	(12	)	 	(25	)	(12	)	
Midstream	$	(78	)	67		 	48		67		

Phillips 66's Midstream segment second-quarter adjusted earnings were $48 million , a decrease of $19 million from the first quarter of 2015 .

Phillips 66’s Transportation business generated earnings of $65 million during the second quarter, consistent with the first quarter. Volume increases associated with higher refining utilization in the second quarter were offset by a favorable claim settlement in the first quarter.

Earnings from the NGL business were $8 million for the second quarter of 2015. The $6 million decrease from the prior quarter was largely related to seasonally lower propane volumes, as well as lower realized margins.

Phillips 66 Partners (PSXP) contributed $25 million to the Midstream segment's second -quarter earnings. Distributions per limited partner unit increased by 8 percent from the first quarter to $0.40 per unit. Distributions to Phillips 66 from PSXP were up 19 percent in the second quarter, reflecting the impact of its incentive distribution rights.

For the second quarter of 2015, the company’s equity investment in DCP Midstream, LLC (DCP Midstream) had an adjusted loss of $25 million , compared with a $12 million loss in the prior quarter. DCP Midstream's lower results in the quarter were primarily driven by the loss on the sale of its interest in the Benedum gas processing plant located in Texas. Both quarters were negatively impacted by low natural gas and natural gas liquid (NGL) prices.

During the second quarter of 2015, DCP Midstream recognized a partial impairment of goodwill. This impairment was due to the extended downturn in energy prices. As a result, earnings from Phillips 66’s equity investment in DCP Midstream were negatively impacted by $126 million after-tax.

Chemicals

											
 	Millions of Dollars	
 	Earnings	 	Adjusted Earnings	
 	2nd Qtr
2015	1st Qtr
2015	 	2nd Qtr
2015	1st Qtr
2015	
Olefins and Polyolefins (O&P)	$	267		183		 	267		183		
Specialties, Aromatics and Styrenics (SA&S)	38		26		 	38		26		
Other	(10	)	(6	)	 	(10	)	(6	)	
Chemicals	$	295		203		 	295		203		

Page 2

Phillips 66 Reports Second-Quarter Earnings of $1.0 Billion (Adjusted Earnings of $1.0 Billion)

The Chemicals segment reflects Phillips 66's equity investment in Chevron Phillips Chemical Company LLC (CPChem). Second -quarter Chemicals earnings were $295 million , compared with earnings of $203 million in the first quarter of 2015.

During the second quarter, CPChem's Olefins and Polyolefins business contributed $267 million to Phillips 66's Chemicals earnings. The $84 million improvement from the prior quarter was mainly due to increased polyethylene sales volumes on strong product demand and improved O&P cash chain margins, driven by lower ethylene feedstock costs and higher polyethylene sales prices. CPChem's equity affiliate earnings also improved as a result of higher sales prices, as well as increased volumes due to the completion of turnaround activity in the first quarter. Global utilization for O&P was 91 percent during the quarter, up from 87 percent in the first quarter, primarily reflecting reduced turnaround activity. Final insurance recoveries related to CPChem's 2014 Port Arthur ethylene plant outage increased earnings in the second quarter.

CPChem's Specialties, Aromatics and Styrenics business contributed $38 million of earnings in the second quarter, an increase of $12 million from the prior quarter. The increase was primarily due to improved margins at CPChem's SA&S equity affiliates.

Refining

											
 	Millions of Dollars	
 	Earnings	 	Adjusted Earnings	
 	2nd Qtr
2015	1st Qtr
2015	 	2nd Qtr
2015	1st Qtr
2015	
Refining	$	604		538		 	604		495		

Refining adjusted earnings were $604 million in the second quarter, compared with $495 million in the first quarter of 2015.

The increase in earnings was largely driven by improved realized gasoline margins, partially offset by reduced distillate and secondary product margins. Distillate margins declined primarily due to a seasonal reduction in demand, while secondary product margins were down mainly due to higher crude costs. Market capture for the second quarter was 62 percent, reflecting the company's refining configuration that is more heavily weighted toward distillate production than the market indicator. Earnings were also improved by a positive change in foreign currency impacts.

Phillips 66’s worldwide refining crude utilization was 90 percent and clean product yield was 84 percent in the second quarter of 2015 . A major turnaround was recently completed at our Humber Refinery in the U.K.

Page 3

Phillips 66 Reports Second-Quarter Earnings of $1.0 Billion (Adjusted Earnings of $1.0 Billion)

Marketing and Specialties

											
 	Millions of Dollars	
 	Earnings	 	Adjusted Earnings	
 	2nd Qtr
2015	1st Qtr
2015	 	2nd Qtr
2015	1st Qtr
2015	
Marketing and Other	$	266		254		 	134		144		
Specialties	48		50		 	48		50		
Marketing and Specialties	$	314		304		 	182		194		

Marketing and Specialties (M&S) second -quarter adjusted earnings were $182 million , compared with $194 million in the first quarter of 2015 .

Adjusted earnings for Marketing and Other were $134 million , a decrease of $10 million from the prior quarter. The business realized strong U.S. margins driven by favorable market conditions and higher volumes; however, earnings were slightly lower than last quarter primarily due to foreign currency impacts. Second-quarter refined product exports were 143,000 barrels per day (BPD), up 57,000 BPD primarily due to favorable distillate export economics combined with increased refinery throughput in the Gulf Coast.

Phillips 66’s Specialties businesses generated earnings of $48 million during the second quarter, in line with the first quarter.

Corporate and Other

											
 	Millions of Dollars	
 	Earnings	 	Adjusted Earnings	
 	2nd Qtr
2015	1st Qtr
2015	 	2nd Qtr
2015	1st Qtr
2015	
Corporate and Other	$	(123	)	(125	)	 	(127	)	(125	)	

Corporate and Other adjusted costs were $127 million after-tax in the second quarter, consistent with the first quarter of 2015 .

Financial Position, Liquidity and Return of Capital

During the second quarter, Phillips 66 generated $1.4 billion of cash from operations. Excluding working capital changes, operating cash flow was $1.8 billion . Total cash distributions from CPChem were $873 million. Capital expenditures and investments totaled $1.2 billion , primarily supporting execution of the Midstream growth strategy.

Phillips 66 returned $636 million to shareholders in the form of $302 million in dividends and $334 million in repurchases of 4.2 million shares of common stock. Since July 2012, the company has repurchased 83 million shares for $5.6 billion and increased its quarterly dividend by 180 percent to $0.56. Phillips 66 ended the quarter with 538 million shares outstanding and $1.4 billion of remaining capacity under its current share repurchase authorization.

Page 4

Phillips 66 Reports Second-Quarter Earnings of $1.0 Billion (Adjusted Earnings of $1.0 Billion)

	

 	Second Quarter 2015	
 	Adjusted Phillips 66	 	Phillips 66 Partners	 	Phillips 66 Consolidated	
Total Debt, $MM	7,865		 	1,100		 	8,965		
Total Equity, $MM	22,421		 	802		 	23,223		
Debt-to-capital ratio	26	%				28	%	
 	 	 	 	 	 	
Total Cash, $MM	4,985		 	104		 	5,089		
Net-debt-to-capital ratio	11	%				14	%	

As of June 30, 2015 , cash and cash equivalents were $5.1 billion and debt was $9.0 billion , including $1.1 billion at Phillips 66 Partners. The company's debt-to-capital ratio was 28 percent . Excluding Phillips 66 Partners, the debt-to-capital ratio was 26 percent . Additionally, Phillips 66 reported a year-to-date annualized return on capital employed (ROCE) of 14 percent and a year-to-date annualized adjusted ROCE of 13 percent .

Strategic Update

Phillips 66 continues to execute its strategy to grow its higher-valued Midstream and Chemicals businesses and enhance Refining returns, while returning capital to shareholders in the form of dividends and share repurchases.

Phillips 66's 2015 capital budget, which is primarily focused on major Midstream growth projects, is $4.6 billion. Through the end of the second quarter, total capital expenditures were $2.3 billion .

Construction of the 100,000 BPD Sweeny Fractionator One and the 150,000 BPD Freeport LPG Export Terminal continued during the quarter. The fractionator is approximately 90 percent complete, while the LPG Terminal construction is nearly 50 percent complete. Both projects are on schedule and on budget with startup expected in the fall of 2015 and the second half of 2016, respectively.

The company is also participating in joint ventures to develop the approximately 470,000 BPD Dakota Access Pipeline (DAPL) and Energy Transfer Crude Oil Pipeline (ETCOP) system. The project is approximately 20 percent complete, with commercial operations expected to begin in the fourth quarter of 2016.

In July, Phillips 66 announced it has formed a joint venture with Energy Transfer and Sunoco Logistics to build the Bayou Bridge pipeline that will deliver crude oil from Phillips 66's and Sunoco Logistics' terminals in Nederland, Texas to Lake Charles. The joint venture will also launch an expansion open season for service to the market hub in St. James, Louisiana in the third quarter of 2015. The first segment of the pipeline to Lake Charles is expected to begin commercial operations in 2016.

In Chemicals, CPChem began operating its 220 million-pound-per-year normal alpha olefins (NAO) expansion project at its Cedar Bayou facility in June 2015. The NAO unit continues to ramp up and is expected to achieve target production in the third quarter of 2015. Additionally, construction of CPChem's world-scale U.S. Gulf Coast Petrochemicals Project is approximately 50 percent complete, with startup expected in mid-2017. This $6 billion project consists of an ethane cracker and related polyethylene facilities that will increase CPChem's U.S. olefins and polyolefins capacity by approximately one-third.

Page 5

Phillips 66 Reports Second-Quarter Earnings of $1.0 Billion (Adjusted Earnings of $1.0 Billion)

Later today, members of Phillips 66 executive management will host a webcast at noon EDT to discuss the company’s second -quarter performance and provide an update on strategic initiatives. To access the webcast and view related presentation materials, go to www.phillips66.com/investors and click on "Events & Presentations." For detailed supplemental information, go to www.phillips66.com/supplemental .

	

Earnings	 	 	 	 	 	 	
 	Millions of Dollars	
 	2015	 	2014	
 	First Quarter	Second Quarter	Six Months	 	Second Quarter	Six Months	
Midstream	$	67		(78	)	(11	)	 	108		296		
Chemicals	203		295		498		 	324		640		
Refining	538		604		1,142		 	390		696		
Marketing and Specialties	304		314		618		 	162		299		
Corporate and Other	(125	)	(123	)	(248	)	 	(121	)	(202	)	
Discontinued Operations	—		—		—		 	—		706		
Phillips 66	$	987		1,012		1,999		 	863		2,435		
 	 	 	 	 	 	 	
Adjusted Earnings	 	 	 	 	 	 	
 	Millions of Dollars	
 	2015	 	2014	
 	First Quarter	Second Quarter	Six Months	 	Second Quarter	Six Months	
Midstream	$	67		48		115		 	108		296		
Chemicals	203		295		498		 	324		640		
Refining	495		604		1,099		 	390		696		
Marketing and Specialties	194		182		376		 	162		299		
Corporate and Other	(125	)	(127	)	(252	)	 	(121	)	(202	)	
Phillips 66	$	834		1,002		1,836		 	863		1,729		

Page 6

Phillips 66 Reports Second-Quarter Earnings of $1.0 Billion (Adjusted Earnings of $1.0 Billion)

About Phillips 66

Phillips 66 is a diversified energy manufacturing and logistics company. With a portfolio of Midstream, Chemicals, Refining, and Marketing and Specialties businesses, the company processes, transports, stores and markets fuels and products globally. Phillips 66 Partners, the company's master limited partnership, is an integral asset in the portfolio. Headquartered in Houston, the company has 14,000 employees committed to safety and operating excellence. Phillips 66 had $50 billion of assets as of June 30, 2015 . For more information, visit www.phillips66.com or follow us on Twitter @Phillips66Co .

- # # # -

	
				
CONTACTS	 	 	 	
Kevin Mitchell (investors)	 	C.W. Mallon (investors)	 	
832-765-2297	 	832-765-2297	 	
kevin.mitchell@p66.com	 	c.w.mallon@p66.com	 	
 	 	 	 	
Dennis Nuss (media)	 	 	 	
832-765-1850	 	 	 	
dennis.h.nuss@p66.com	 	 	 	

CAUTIONARY STATEMENT FOR THE PURPOSES OF THE "SAFE HARBOR" PROVISIONS
OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This news release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Words and phrases such as “is anticipated,” “is estimated,” “is expected,” “is planned,” “is scheduled,” “is targeted,” “believes,” “intends,” “objectives,” “projects,” “strategies” and similar expressions are used to identify such forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements relating to Phillips 66’s operations (including joint venture operations) are based on management’s expectations, estimates and projections about the company, its interests and the energy industry in general on the date this news release was prepared. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Factors that could cause actual results or events to differ materially from those described in the forward-looking statements include fluctuations in NGL, crude oil, and natural gas prices, and petrochemical and refining margins; unexpected changes in costs for constructing, modifying or operating our facilities; unexpected difficulties in manufacturing, refining or transporting our products; lack of, or disruptions in, adequate and reliable transportation for our NGL, crude oil, natural gas, and refined products; potential liability from litigation or for remedial actions, including removal and reclamation obligations under environmental regulations; limited access to capital or significantly higher cost of capital related to illiquidity or uncertainty in the domestic or international financial markets; and other economic, business, competitive and/or regulatory factors affecting Phillips 66’s businesses generally as set forth in our filings with the Securities and Exchange Commission. Phillips 66 is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

Use of Non-GAAP Financial Information -- This news release includes the terms adjusted earnings, adjusted earnings per share, adjusted effective tax rate, operating cash flow excluding working capital, and adjusted ROCE. These are non-GAAP financial measures that are included to help facilitate comparisons of company operating performance across periods.

References in the release to earnings refer to net income attributable to Phillips 66.

Page 7

Phillips 66 Reports Second-Quarter Earnings of $1.0 Billion (Adjusted Earnings of $1.0 Billion)

	
									
 	 Millions of Dollars	
 	 Except as Indicated	
 	2015	 	2014	
 	1Q	2Q	 	2Q	
Reconciliation of Earnings to Adjusted Earnings	 	 	 	 	
 	 	 	 	 	
Consolidated	 	 	 	 	
Earnings	$	987		1,012		 	863		
Adjustments:	 	 	 	 	
Asset dispositions	(115	)	(132	)	 	—		
Impairments by equity affiliates	—		126		 	—		
Pending claims and settlements	(38	)	(4	)	 	—		
Adjusted earnings	$	834		1,002		 	863		
 	 	 	 	 	
Earnings per share of common stock (dollars)	$	1.79		1.84		 	1.51		
Adjusted earnings per share of common stock (dollars)	$	1.51		1.83		 	1.51		
 	 	 	 	 	
Midstream	 	 	 	 	
Earnings	$	67		(78	)	 	108		
Adjustments:	 	 	 	 	
Impairments by equity affiliates	—		126		 	—		
Adjusted earnings	$	67		48		 	108		
 	 	 	 	 	
Refining	 	 	 	 	
Earnings	$	538		604		 	390		
Adjustments:	 	 	 	 	
Asset dispositions	(5	)	—		 	—		
Pending claims and settlements	(38	)	—		 	—		
Adjusted earnings	$	495		604		 	390		
 	 	 	 	 	
Marketing and Specialties	 	 	 	 	
Earnings	$	304		314		 	162		
Adjustments:	 	 	 	 	
Asset dispositions	(110	)	(132	)	 	—		
Adjusted earnings	$	194		182		 	162		
 	 	 	 	 	
Corporate and Other	 	 	 	 	
Earnings (loss)	$	(125	)	(123	)	 	(121	)	
Adjustments:	 	 	 	 	
Pending claims and settlements	—		(4	)	 	—		
Adjusted earnings (loss)	$	(125	)	(127	)	 	(121	)	

Page 8

Phillips 66 Reports Second-Quarter Earnings of $1.0 Billion (Adjusted Earnings of $1.0 Billion)

	

 	 Millions of Dollars	
 	2Q	
 	2015	
Cash Flows from Operating Activities	 	
 	 	
Net Cash Provided by Operating Activities, excluding working capital	$	1,759		
Changes in working capital	(332	)	
Net Cash Provided by Operating Activities	$	1,427		

	
				
	 Millions of Dollars	
	2015 YTD	
Phillips 66 - ROCE		
Numerator		
Net income	$	2,022		
After-tax interest expense	107		
GAAP ROCE earnings	2,129		
Special items	(163	)	
Adjusted ROCE earnings	$	1,966		
	 	
Denominator	 	
GAAP average capital employed*	$	31,454		
	 	
Annualized Adjusted ROCE (percent)	13	%	
Annualized GAAP ROCE (percent)	14	%	
*Total equity plus total debt.		

				

	

Page 9

	
																
 	 	 	 	 	 	 	 	 	 	 	 	 	Exhibit 99.2	
Phillips 66 Earnings Release Supplemental Data	

	
																							
CONSOLIDATED INCOME STATEMENT	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Millions of Dollars	
 	 	 	 	2014	 	2015	
 	 	 	 	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		 	1st Qtr		2nd Qtr		3rd Qtr	4th Qtr	YTD		
Revenues and Other Income	 	 	 	 	 	 	 	 	 	 	 	
  Sales and other operating revenues*	40,283		45,549		40,417		34,963		161,212		 	22,778		28,512		 	 	51,290		
  Equity in earnings of affiliates	778		764		511		413		2,466		 	456		407		 	 	863		
  Net gain on dispositions	7		9		109		170		295		 	122		139		 	 	261		
  Other income (loss)	31		17		11		61		120		 	70		19		 	 	89		
    Total Revenues and Other Income	41,099		46,339		41,048		35,607		164,093		 	23,426		29,077		 	 	52,503		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Costs and Expenses	 	 	 	 	 	 	 	 	 	 	 	
  Purchased crude oil and products	34,381		39,316		33,602		28,449		135,748		 	16,695		22,253		 	 	38,948		
  Operating expenses	1,090		1,077		1,104		1,164		4,435		 	1,094		1,043		 	 	2,137		
  Selling, general and administrative expenses	402		412		401		448		1,663		 	394		406		 	 	800		
  Depreciation and amortization	234		239		249		273		995		 	253		274		 	 	527		
  Impairments	1		3		12		134		150		 	—		2		 	 	2		
  Taxes other than income taxes*	3,638		3,832		3,874		3,696		15,040		 	3,462		3,549		 	 	7,011		
  Accretion on discounted liabilities	6		6		6		6		24		 	5		6		 	 	11		
  Interest and debt expense	68		66		60		73		267		 	86		79		 	 	165		
  Foreign currency transaction (gains) losses	(19	)	29		13		3		26		 	49		—		 	 	49		
    Total Costs and Expenses	39,801		44,980		39,321		34,246		158,348		 	22,038		27,612		 	 	49,650		
  Income from continuing operations before income taxes	1,298		1,359		1,727		1,361		5,745		 	1,388		1,465		 	 	2,853		
  Provision for income taxes	426		487		538		203		1,654		 	391		440		 	 	831		
Income From Continuing Operations	872		872		1,189		1,158		4,091		 	997		1,025		 	 	2,022		
Income from discontinued operations**	706		—		—		—		706		 	—		—		 	 	—		
Net Income	1,578		872		1,189		1,158		4,797		 	997		1,025		 	 	2,022		
Less: net income attributable to noncontrolling interests	6		9		9		11		35		 	10		13		 	 	23		
Net Income Attributable to Phillips 66	1,572		863		1,180		1,147		4,762		 	987		1,012		 	 	1,999		
* Includes excise taxes on petroleum products sales:	3,522		3,743		3,781		3,652		14,698		 	3,362		3,463		 	 	6,825		
** Net of provision for income taxes on discontinued operations:	5		—		—		—		5		 	—		—		 	 	—		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Amounts Attributable to Phillips 66 Common Stockholders:	 	 	 	 	 	 	 	 	 	 	 	
Income from continuing operations	866		863		1,180		1,147		4,056		 	987		1,012		 	 	1,999		
Income from discontinued operations	706		—		—		—		706		 	—		—		 	 	—		
Net Income Attributable to Phillips 66	1,572		863		1,180		1,147		4,762		 	987		1,012		 	 	1,999		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income Attributable to Phillips 66	 	 	 	 	 	 	 	 	 	 	 	
Per Share of Common Stock (dollars)	 	 	 	 	 	 	 	 	 	 	 	
Basic	 	 	 	 	 	 	 	 	 	 	 	
Continuing operations	1.48		1.52		2.11		2.07		7.15		 	1.80		1.85		 	 	3.65		
Discontinued operations	1.21		—		—		—		1.25		 	—		—		 	 	—		
Net Income Attributable to Phillips 66	 	 	 	 	 	 	 	 	 	 	 	
Per Share of Common Stock	2.69		1.52		2.11		2.07		8.40		 	1.80		1.85		 	 	3.65		
Diluted	 	 	 	 	 	 	 	 	 	 	 	 	 	
Continuing operations	1.47		1.51		2.09		2.05		7.10		 	1.79		1.84		 	 	3.63		
Discontinued operations	1.20		—		—		—		1.23		 	—		—		 	 	—		
Net Income Attributable to Phillips 66	 	 	 	 	 	 	 	 	 	 	 	
Per Share of Common Stock	2.67		1.51		2.09		2.05		8.33		 	1.79		1.84		 	 	3.63		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Average Common Shares Outstanding (in thousands)	 	 	 	 	 	 	 	 	 	 	 	
  Basic	 	 	 	584,053		565,799		559,492		554,617		565,902		 	548,200		544,617		 	 	546,398		
  Diluted	 	 	 	589,575		571,285		564,958		559,023		571,504		 	552,337		548,926		 	 	550,985		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
SUMMARY OF INCOME (LOSS) ATTRIBUTABLE TO PHILLIPS 66 BY SEGMENT	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Millions of Dollars	
 	 	 	 	2014	 	2015	
 	 	 	 	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		 	1st Qtr		2nd Qtr		3rd Qtr	4th Qtr	YTD		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Midstream	188		108		115		96		507		 	67		(78	)	 	 	(11	)	
Chemicals	316		324		230		267		1,137		 	203		295		 	 	498		
Refining	306		390		558		517		1,771		 	538		604		 	 	1,142		
Marketing and Specialties	137		162		368		367		1,034		 	304		314		 	 	618		
Corporate and Other	(81	)	(121	)	(91	)	(100	)	(393	)	 	(125	)	(123	)	 	 	(248	)	
Discontinued Operations	706		—		—		—		706		 	—		—		 	 	—		
Consolidated	1,572		863		1,180		1,147		4,762		 	987		1,012		 	 	1,999		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
SUMMARY OF INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES BY SEGMENT	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Millions of Dollars	
 	 	 	 	2014	 	2015	
 	 	 	 	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		 	1st Qtr		2nd Qtr		3rd Qtr	4th Qtr	YTD		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Midstream	302		180		194		175		851		 	116		(99	)	 	 	17		
Chemicals	442		466		328		396		1,632		 	291		416		 	 	707		
Refining	508		647		859		453		2,467		 	764		932		 	 	1,696		
Marketing and Specialties	205		248		495		527		1,475		 	406		410		 	 	816		
Corporate and Other	(159	)	(182	)	(149	)	(190	)	(680	)	 	(189	)	(194	)	 	 	(383	)	
Consolidated	1,298		1,359		1,727		1,361		5,745		 	1,388		1,465		 	 	2,853		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
EFFECTIVE TAX RATES ON INCOME FROM CONTINUING OPERATIONS	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	2014	 	2015	
 	 	 	 	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		 	1st Qtr		2nd Qtr		3rd Qtr	4th Qtr	YTD		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Midstream	35.8	%	35.0	%	36.1	%	38.9	 %	36.3	%	 	32.8	%	37.4	%	 	 	5.9	%	
Chemicals	28.5	%	30.5	%	29.9	%	32.6	 %	30.3	%	 	30.2	%	29.1	%	 	 	29.6	%	
Refining	39.8	%	39.7	%	35.0	%	(14.1	)%	28.2	%	 	29.6	%	35.2	%	 	 	32.7	%	
Marketing and Specialties	33.2	%	34.7	%	25.7	%	30.4	 %	29.9	%	 	25.1	%	23.4	%	 	 	24.3	%	
Corporate and Other	49.1	%	33.5	%	38.9	%	47.4	 %	42.2	%	 	33.3	%	35.1	%	 	 	34.2	%	
Consolidated	32.8	%	35.8	%	31.2	%	14.9	 %	28.8	%	 	28.2	%	30.0	%	 	 	29.1	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
SUMMARY OF ADJUSTED NET INCOME (LOSS) ATTRIBUTABLE TO PHILLIPS 66 BY SEGMENT	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Millions of Dollars	
 	 	 	 	2014	 	2015	
 	 	 	 	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		 	1st Qtr		2nd Qtr		3rd Qtr	4th Qtr	YTD		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Midstream	188		108		115		97		508		 	67		48		 	 	115		
Chemicals	316		324		299		270		1,209		 	203		295		 	 	498		
Refining	306		390		558		322		1,576		 	495		604		 	 	1,099		
Marketing and Specialties	137		162		259		324		882		 	194		182		 	 	376		
Corporate and Other	(81	)	(121	)	(91	)	(100	)	(393	)	 	(125	)	(127	)	 	 	(252	)	
Consolidated	866		863		1,140		913		3,782		 	834		1,002		 	 	1,836		

Page 1

	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

																							
SPECIAL ITEMS INCLUDED IN NET INCOME ATTRIBUTABLE TO PHILLIPS 66	
(AFTER-TAX)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Millions of Dollars	
 	 	 	 	2014	 	2015	
 	 	 	 	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		 	1st Qtr		2nd Qtr		3rd Qtr	4th Qtr	YTD		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Midstream	 	 	 	 	 	 	 	 	 	 	 	
Impairments by equity affiliates	—		—		—		—		—		 	—		(126	)	 	 	(126	)	
Lower-of-cost-or-market inventory adjustments	—		—		—		(1	)	(1	)	 	—		—		 	 	—		
Total Midstream	—		—		—		(1	)	(1	)	 	—		(126	)	 	 	(126	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Chemicals	 	 	 	 	 	 	 	 	 	 	 	
Impairments by equity affiliates	—		—		(69	)	—		(69	)	 	—		—		 	 	—		
Lower-of-cost-or-market inventory adjustments	—		—		—		(3	)	(3	)	 	—		—		 	 	—		
Total Chemicals	—		—		(69	)	(3	)	(72	)	 	—		—		 	 	—		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Refining	 	 	 	 	 	 	 	 	 	 	 	
Asset dispositions	—		—		—		369		369		 	5		—		 	 	5		
Impairments	—		—		—		(131	)	(131	)	 	—		—		 	 	—		
Pending claims and settlements	—		—		—		(17	)	(17	)	 	38		—		 	 	38		
Lower-of-cost-or-market inventory adjustments	—		—		—		(26	)	(26	)	 	—		—		 	 	—		
Total Refining	—		—		—		195		195		 	43		—		 	 	43		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Marketing and Specialties	 	 	 	 	 	 	 	 	 	 	 	
Asset dispositions	—		—		109		16		125		 	110		132		 	 	242		
Pending claims and settlements	—		—		—		27		27		 	—		—		 	 	—		
Total Marketing and Specialties	—		—		109		43		152		 	110		132		 	 	242		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Corporate and Other	 	 	 	 	 	 	 	 	 	 	 	
Pending claims and settlements	—		—		—		—		—		 	—		4		 	 	4		
Total Corporate and Other	—		—		—		—		—		 	—		4		 	 	4		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Discontinued Operations	706		—		—		—		706		 	—		—		 	 	—		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Phillips 66	706		—		40		234		980		 	153		10		 	 	163		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
By Business Lines/Regions	 	 	 	 	 	 	 	 	 	 	 	
Midstream	 	 	 	 	 	 	 	 	 	 	 	
Transportation	—		—		—		—		—		 	—		—		 	 	—		
DCP Midstream	—		—		—		(1	)	(1	)	 	—		(126	)	 	 	(126	)	
NGL	—		—		—		—		—		 	—		—		 	 	—		
Total Midstream	—		—		—		(1	)	(1	)	 	—		(126	)	 	 	(126	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Refining	 	 	 	 	 	 	 	 	 	 	 	
Atlantic Basin/Europe	—		—		—		(132	)	(132	)	 	38		—		 	 	38		
Gulf Coast	—		—		—		(3	)	(3	)	 	—		—		 	 	—		
Central Corridor	—		—		—		(17	)	(17	)	 	—		—		 	 	—		
Western/Pacific	—		—		—		347		347		 	5		—		 	 	5		
Total Refining	—		—		—		195		195		 	43		—		 	 	43		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Marketing and Specialties	 	 	 	 	 	 	 	 	 	 	 	
Marketing and Other	—		—		109		43		152		 	110		132		 	 	242		
Specialties	—		—		—		—		—		 	—		—		 	 	—		
Total Marketing and Specialties	—		—		109		43		152		 	110		132		 	 	242		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
SPECIAL ITEMS INCLUDED IN INCOME FROM CONTINUING OPERATIONS	
(PRETAX)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Millions of Dollars	
 	 	 	 	2014	 	2015	
 	 	 	 	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		 	1st Qtr		2nd Qtr		3rd Qtr	4th Qtr	YTD		
Midstream	 	 	 	 	 	 	 	 	 	 	 	
Transportation	—		—		—		—		—		 	—		—		 	 	—		
DCP Midstream	—		—		—		(2	)	(2	)	 	—		(194	)	 	 	(194	)	
NGL	—		—		—		—		—		 	—		—		 	 	—		
Total Midstream	—		—		—		(2	)	(2	)	 	—		(194	)	 	 	(194	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Chemicals	—		—		(88	)	(3	)	(91	)	 	—		—		 	 	—		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Refining	 	 	 	 	 	 	 	 	 	 	 	
Atlantic Basin/Europe	—		—		—		(133	)	(133	)	 	—		—		 	 	—		
Gulf Coast	—		—		—		(5	)	(5	)	 	—		—		 	 	—		
Central Corridor	—		—		—		(29	)	(29	)	 	—		—		 	 	—		
Western/Pacific	—		—		—		118		118		 	8		—		 	 	8		
Total Refining	—		—		—		(49	)	(49	)	 	8		—		 	 	8		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Marketing and Specialties	 	 	 	 	 	 	 	 	 	 	 	
Marketing and Other	—		—		109		60		169		 	110		132		 	 	242		
Specialties	—		—		—		—		—		 	—		—		 	 	—		
Total Marketing and Specialties	—		—		109		60		169		 	110		132		 	 	242		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Corporate and Other	—		—		—		—		—		 	—		5		 	 	5		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Discontinued Operations	711		—		—		—		711		 	—		—		 	 	—		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Phillips 66	711		—		21		6		738		 	118		(57	)	 	 	61		

Page 2

	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

																							
CASH FLOW INFORMATION	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Millions of Dollars	
 	 	 	 	2014	 	2015	
 	 	 	 	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		 	1st Qtr		2nd Qtr		3rd Qtr	4th Qtr	YTD		
Cash Flows From Operating Activities	 	 	 	 	 	 	 	 	 	 	 	
  Net income	1,578		872		1,189		1,158		4,797		 	997		1,025		 	 	2,022		
  Depreciation and amortization	234		239		249		273		995		 	253		274		 	 	527		
  Impairments	1		3		12		134		150		 	—		2		 	 	2		
  Accretion on discounted liabilities	6		6		6		6		24		 	5		6		 	 	11		
  Deferred taxes	(444	)	(11	)	(72	)	39		(488	)	 	(6	)	(75	)	 	 	(81	)	
  Undistributed equity earnings	632		(253	)	(19	)	(163	)	197		 	(337	)	662		 	 	325		
  Net gain on dispositions	(7	)	(9	)	(109	)	(170	)	(295	)	 	(122	)	(139	)	 	 	(261	)	
  Income from discontinued operations	(706	)	—		—		—		(706	)	 	—		—		 	 	—		
  Other	(21	)	90		1		(197	)	(127	)	 	90		4		 	 	94		
  Net working capital changes	123		(107	)	(828	)	(208	)	(1,020	)	 	472		(332	)	 	 	140		
Net cash provided by continuing operating activities	1,396		830		429		872		3,527		 	1,352		1,427		 	 	2,779		
Net cash provided by discontinued operations	2		—		—		—		2		 	—		—		 	 	—		
Net Cash Provided by Operating Activities	1,398		830		429		872		3,529		 	1,352		1,427		 	 	2,779		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash Flows From Investing Activities	 	 	 	 	 	 	 	 	 	 	 	
  Capital expenditures and investments	(572	)	(561	)	(1,514	)	(1,126	)	(3,773	)	 	(1,081	)	(1,213	)	 	 	(2,294	)	
  Proceeds from asset dispositions*	507		150		6		581		1,244		 	(9	)	4		 	 	(5	)	
  Advances/loans—related parties	—		(3	)	—		—		(3	)	 	(50	)	—		 	 	(50	)	
Collection of advances/loans—related parties	—		—		—		—		—		 	—		50		 	 	50		
Other	13		21		127		77		238		 	102		(55	)	 	 	47		
Net cash used in continuing investing activities	(52	)	(393	)	(1,381	)	(468	)	(2,294	)	 	(1,038	)	(1,214	)	 	 	(2,252	)	
Net cash provided by (used in) discontinued operations	(34	)	32		—		—		(2	)	 	—		—		 	 	—		
Net Cash Used in Investing Activities	(86	)	(361	)	(1,381	)	(468	)	(2,296	)	 	(1,038	)	(1,214	)	 	 	(2,252	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash Flows From Financing Activities	 	 	 	 	 	 	 	 	 	 	 	
  Issuance of debt	—		—		—		2,487		2,487		 	1,169		—		 	 	1,169		
  Repayment of debt	(8	)	(9	)	(13	)	(19	)	(49	)	 	(895	)	(9	)	 	 	(904	)	
  Issuance of common stock	(20	)	8		13		—		1		 	(25	)	—		 	 	(25	)	
  Repurchase of common stock	(640	)	(616	)	(494	)	(532	)	(2,282	)	 	(399	)	(334	)	 	 	(733	)	
  Share exchange—PSPI transaction	(450	)	—		—		—		(450	)	 	—		—		 	 	—		
  Dividends paid on common stock	(229	)	(281	)	(277	)	(275	)	(1,062	)	 	(272	)	(302	)	 	 	(574	)	
  Distributions to noncontrolling interests	(4	)	(9	)	(5	)	(12	)	(30	)	 	(6	)	(14	)	 	 	(20	)	
Net proceeds from issuance of Phillips 66 Partners LP common units	—		—		—		—		—		 	384		—		 	 	384		
  Other	(4	)	29		(2	)	—		23		 	(14	)	16		 	 	2		
Net cash provided by (used in) continuing financing activities	(1,355	)	(878	)	(778	)	1,649		(1,362	)	 	(58	)	(643	)	 	 	(701	)	
Net cash provided by (used in) discontinued operations	—		—		—		—		—		 	—		—		 	 	—		
Net Cash Provided by (Used in) Financing Activities	(1,355	)	(878	)	(778	)	1,649		(1,362	)	 	(58	)	(643	)	 	 	(701	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Effect of Exchange Rate Changes on Cash and Cash Equivalents	(31	)	39		(118	)	46		(64	)	 	(73	)	129		 	 	56		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Change in Cash and Cash Equivalents	(74	)	(370	)	(1,848	)	2,099		(193	)	 	183		(301	)	 	 	(118	)	
Cash and cash equivalents at beginning of period	5,400		5,326		4,956		3,108		5,400		 	5,207		5,390		 	 	5,207		
Cash and Cash Equivalents at End of Period	5,326		4,956		3,108		5,207		5,207		 	5,390		5,089		 	 	5,089		
* Includes return of investments in equity affiliates.	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
CAPITAL PROGRAM	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Millions of Dollars	
 	 	 	 	2014	 	2015	
 	 	 	 	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		 	1st Qtr		2nd Qtr		3rd Qtr	4th Qtr	YTD		
Consolidated Capital Expenditures and Investments	 	 	 	 	 	 	 	 	 	 	 	
Midstream	288		298		946		641		2,173		 	769		899		 	 	1,668		
Chemicals	—		—		—		—		—		 	—		—		 	 	—		
Refining	186		215		278		359		1,038		 	274		268		 	 	542		
Marketing and Specialties	84		26		248		81		439		 	24		30		 	 	54		
Corporate and Other	14		22		42		45		123		 	14		16		 	 	30		
Total Consolidated from Continuing Operations	572		561		1,514		1,126		3,773		 	1,081		1,213		 	 	2,294		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Proportional Share of Select Equity Affiliates
  Capital Expenditures and Investments*	 	 	 	 	 	 	 	 	 	 	 	
DCP Midstream (Midstream)	178		176		207		215		776		 	157		149		 	 	306		
CPChem (Chemicals)	155		224		244		274		897		 	252		264		 	 	516		
WRB Refining (Refining)	23		38		35		44		140		 	35		36		 	 	71		
Select Equity Affiliates	356		438		486		533		1,813		 	444		449		 	 	893		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Capital Program*	 	 	 	 	 	 	 	 	 	 	 	
Midstream	466		474		1,153		856		2,949		 	926		1,048		 	 	1,974		
Chemicals	155		224		244		274		897		 	252		264		 	 	516		
Refining	209		253		313		403		1,178		 	309		304		 	 	613		
Marketing and Specialties	84		26		248		81		439		 	24		30		 	 	54		
Corporate and Other	14		22		42		45		123		 	14		16		 	 	30		
Total Capital Program	928		999		2,000		1,659		5,586		 	1,525		1,662		 	 	3,187		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
  * Includes Phillips 66’s portion of self-funded capital spending by DCP Midstream, LLC (DCP Midstream), Chevron Phillips Chemical Company LLC (CPChem) and WRB Refining.	

Page 3

	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

																							
MIDSTREAM	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	2014	 	2015	
 	 	 	 	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		 	1st Qtr		2nd Qtr		3rd Qtr	4th Qtr	YTD		
Midstream Net Income (Loss) Attributable
   to Phillips 66 ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Transportation	62		60		58		53		233		 	65		65		 	 	130		
DCP Midstream	83		33		31		(12	)	135		 	(12	)	(151	)	 	 	(163	)	
NGL	43		15		26		55		139		 	14		8		 	 	22		
   Midstream Net Income (Loss) Attributable to Phillips 66	188		108		115		96		507		 	67		(78	)	 	 	(11	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Midstream Income (Loss) before Income Taxes ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Transportation	101		105		102		108		416		 	113		115		 	 	228		
DCP Midstream	130		52		50		(18	)	214		 	(17	)	(233	)	 	 	(250	)	
NGL	71		23		42		85		221		 	20		19		 	 	39		
Midstream Income (Loss) before Income Taxes	302		180		194		175		851		 	116		(99	)	 	 	17		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Midstream Adjusted EBITDA	384		256		273		257		1,170		 	199		177		 	 	376		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation and Amortization ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Transportation	19		20		23		27		89		 	25		27		 	 	52		
DCP Midstream	—		—		—		—		—		 	—		—		 	 	—		
NGL	—		1		1		—		2		 	1		—		 	 	1		
Total	19		21		24		27		91		 	26		27		 	 	53		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating and SG&A Expense ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Transportation	96		109		122		134		461		 	124		117		 	 	241		
DCP Midstream	—		—		—		—		—		 	—		—		 	 	—		
NGL	17		20		20		37		94		 	32		25		 	 	57		
Total	113		129		142		171		555		 	156		142		 	 	298		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Transportation Volumes (MB/D)	 	 	 	 	 	 	 	 	 	 	 	
Pipelines*	3,101		3,243		3,142		3,336		3,206		 	3,145		3,290		 	 	3,218		
Terminals**	1,477		1,609		1,780		1,860		1,683		 	1,983		1,969		 	 	1,976		
* Pipelines represent the sum of volumes transported through each separately tariffed pipeline segment, including our share of equity volumes in Yellowstone and Lake Charles pipelines.	 	 	 	 	 	 	 	 	 	 	 	
** Terminals include Bayway and Ferndale crude oil rail rack volumes.	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
PSX Other Volumes	 	 	 	 	 	 	 	 	 	 	 	
NGL Fractionated (MB/D)*	112		117		110		99		109		 	108		108		 	 	108		
* Excludes DCP Midstream.	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
100% DCP Midstream Results	 	 	 	 	 	 	 	 	 	 	 	
Net Income Attributable, excludes parent company income tax related to DCP's earnings ($ Millions)	165		89		81		(47	)	288		 	(37	)	(466	)	 	 	(503	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation and Amortization ($ Millions)	85		86		87		90		348		 	91		94		 	 	185		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating and SG&A Expense ($ Millions)	243		283		264		271		1,061		 	236		240		 	 	476		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Expense ($ Millions)*	72		74		71		70		287		 	76		79		 	 	155		
* Net of interest income.	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Capital Expenditures and Investments ($ Millions)	355		353		414		429		1,551		 	314		297		 	 	611		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Selected DCP Volumes and Gross Margin	 	 	 	 	 	 	 	 	 	 	 	
by Major Contract Type (excludes current quarter)	 	 	 	 	 	 	 	 	 	 	 	
Percentage of Proceeds (long NGL / long Gas)*	 	 	 	 	 	 	 	 	 	 	 	
Volume (TBtu/d)	5.3		5.6		5.8		5.9		5.7		 	5.6		 **		 	 	5.6		
Gross Margin ($ Millions)	265		265		275		215		1,020		 	130		 **		 	 	130		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Keep-whole (long NGL / short Gas)*	 	 	 	 	 	 	 	 	 	 	 	
Volume (TBtu/d)	0.5		0.4		0.4		0.3		0.4		 	0.3		 **		 	 	0.3		
Gross Margin ($ Millions)	35		20		25		20		100		 	10		 **		 	 	10		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Fee-based Gas (primarily gathering and transport)*	 	 	 	 	 	 	 	 	 	 	 	
Volume (TBtu/d)	4.6		4.5		4.6		4.7		4.6		 	4.7		 **		 	 	4.7		
Gross Margin ($ Millions)	80		85		90		105		360		 	95		 **		 	 	95		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Fee-based NGL Transport and Fractionation	 	 	 	 	 	 	 	 	 	 	 	
Volume (MB/d)	242		281		325		340		297		 	320		 **		 	 	320		
Gross Margin ($ Millions)	26		27		39		39		131		 	36		 **		 	 	36		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other Gross Margin***	 	 	 	 	 	 	 	 	 	 	 	
Gross Margin ($ Millions)	205		139		175		139		658		 	118		 **		 	 	118		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Throughput (TBtu/d)	7.2		7.3		7.5		7.4		7.3		 	7.1		7.0		 	 	7.1		
NGL Production (MB/d)	445		452		471		447		454		 	399		408		 	 	404		
    * Certain volumes earn duplicate revenue streams (i.e. both fee plus processing economics).	 	 	 	 	 	 	 	 	 	 	 	
  ** Pending DCP Midstream release.	 	 	 	 	 	 	 	 	 	 	 	
*** Includes NGL/Propane Marketing, MTM, Condensate Sales, Gas Marketing activity and other items.	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted Average NGL Price*	 	 	 	 	 	 	 	 	 	 	 	 	
DCP Midstream ($/BBL)			44.52		39.06		37.66		28.45		37.43		 	20.57		19.99		 	 	20.28		
DCP Midstream ($/gal)			1.06		0.93		0.90		0.68		0.89		 	0.49		0.48		 	 	0.48		
* Based on index prices from the Mont Belvieu and Conway market hubs that are weighted by NGL component and location mix.	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
MLP Distributions ($ Millions)*	 	 	 	 	 	 	 	 	 	 	 	
GP Distribution from PSXP to Phillips 66	1		1		2		4		8		 	6		9		 	 	15		
LP Distribution from PSXP to Phillips 66	15		17		17		19		68		 	21		23		 	 	44		
GP Distribution from DPM to DCP Midstream***	26		28		29		31		114		 	31		**		 	 	31		
LP Distribution from DPM to DCP Midstream***	18		18		19		19		74		 	19		**		 	 	19		
 	 	 	 	 	 	 	 	 	 	 	 	
    * Cash distributions declared attributable to general partner interest, common unit ownership and incentive distribution rights. These distributions are eliminated in the respective sponsors consolidated financial statements.	
  ** Pending DCP Midstream release.	
*** Represents 100 percent of DCP Midstream's distributions from DPM.	

Page 4

	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

																							
CHEMICALS	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	2014	 	2015	
 	 	 	 	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		 	1st Qtr		2nd Qtr		3rd Qtr	4th Qtr	YTD		
Chemicals Net Income Attributable
   to Phillips 66 ($ Millions)	316		324		230		267		1,137		 	203		295				498		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Chemicals Adjusted EBITDA	534		557		517		493		2,101		 	380		507				887		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
100% CPChem Results	 	 	 	 	 	 	 	 	 	 	 	
Net Income (Loss), excludes parent company income tax related to CPChem's earnings ($ Millions)						 			 			
Olefins and Polyolefins	801		903		720		731		3,155		 	530		769				1,299		
Specialties, Aromatics and Styrenics	97		52		(45	)	74		178		 	69		93				162		
Corporate and Other	(8	)	(15	)	(13	)	(9	)	(45	)	 	(12	)	(28	)			(40	)	
Total	 	 	 	890		940		662		796		3,288		 	587		834				1,421		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (Loss) before Income Taxes ($ Millions)*						 			 			
Olefins and Polyolefins	815		918		735		741		3,209		 	542		780				1,322		
Specialties, Aromatics and Styrenics	105		60		(36	)	79		208		 	77		100				177		
Corporate and Other	(8	)	(14	)	(12	)	(9	)	(43	)	 	(12	)	(28	)			(40	)	
Total	 	 	 	912		964		687		811		3,374		 	607		852				1,459		
* Excludes CPChem discontinued operations.	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation and Amortization ($ Millions)	69		69		74		84		296		 	76		74				150		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Expense ($ Millions)*	—		(1	)	(1	)	—		(2	)	 	—		(1	)			(1	)	
* Net of interest income.	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Investing Cash Flows ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Capital Expenditures and Investments	310		447		488		548		1,793		 	504		527				1,031		
Advances to Equity Companies	5		21		18		34		78		 	10		23				33		
Advance Repayments from Equity Companies	—		—		—		—		—		 	—		—				—		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Externally Marketed Sales Volumes (MM Lbs)	 	 	 	 	 	 	 	 	 	 	 	
Olefins and Polyolefins	4,302		4,395		4,067		4,051		16,815		 	4,019		4,258				8,277		
Specialties, Aromatics and Styrenics	1,569		1,530		1,571		1,624		6,294		 	1,482		1,356				2,838		
Total	 	 	 	5,871		5,925		5,638		5,675		23,109		 	5,501		5,614		 	 	11,115		
* Represents 100 percent of CPChem's outside sales of produced petrochemical products, as well as commission sales from equity affiliates.	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Olefins and Polyolefins Capacity Utilization (%)	93	%	95	%	83	%	83	%	88	%	 	87	%	91	%			89	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Market Indicators	 	 	 	 	 	 	 	 	 	 	 	
U.S. Industry Prices*											 									
Ethylene, Average Acquisition Contract (cents/lb)	53.49		53.03		59.95		50.26		54.18		 	38.04		37.88				37.96		
HDPE Blow Molding, Domestic Spot (cents/lb)	 	 	 	70.50		71.25		74.33		68.83		71.23		 	52.75		58.83		 	 	55.79		
 	 	 	 	 	 	 	 	 	 	 	 	
U.S. Industry Costs*											 									
Ethylene, Cash Cost Weighted Average Feed (cents/lb)	20.10		16.77		14.39		10.48		15.44		 	10.25		9.67				9.96		
HDPE Blow Molding, Total Cash Cost (cents/lb)	 	 	 	67.09		66.56		73.51		63.60		67.69		 	50.97		50.73		 	 	50.85		
* Released by IHS. Reflect the IHS analysis of historical market indicators.	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Ethylene to High-Density Polyethylene Chain Cash Margin (cents/lb)	 	 	 	36.80		40.95		46.38		45.01		42.28		 	29.57		36.31				32.94		

Page 5

	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

																							
REFINING	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	2014	 	2015	
 	 	 	 	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		 	1st Qtr		2nd Qtr		3rd Qtr	4th Qtr	YTD		
Refining Net Income (Loss) Attributable
to Phillips 66 ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Atlantic Basin/Europe	38		(37	)	140		57		198		 	113		90		 	 	203		
Gulf Coast	79		118		66		(11	)	252		 	71		83		 	 	154		
Central Corridor	225		232		328		182		967		 	195		216		 	 	411		
Western/Pacific	(36	)	77		24		289		354		 	159		215		 	 	374		
   Refining Net Income (Loss) Attributable to Phillips 66	306		390		558		517		1,771		 	538		604		 	 	1,142		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Refining Income (Loss) before Income Taxes ($ Millions)	 	 	 	 	 	 	 	 	 	 	
Atlantic Basin/Europe	64		(24	)	205		137		382		 	108		130		 	 	238		
Gulf Coast	128		184		100		(19	)	393		 	109		127		 	 	236		
Central Corridor	365		373		502		265		1,505		 	301		347		 	 	648		
Western/Pacific	(49	)	114		52		70		187		 	246		328		 	 	574		
Refining Income (Loss) before Income Taxes	508		647		859		453		2,467		 	764		932		 	 	1,696		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Refining Adjusted EBITDA	722		883		1,098		746		3,449		 	996		1,176		 	 	2,172		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Realized Refining Margins ($/BBL)*	 	 	 	 	 	 	 	 	 	 	 	
Atlantic Basin/Europe	8.34		5.75		10.60		11.04		8.94		 	9.94		10.45		 	 	10.18		
Gulf Coast	8.80		8.22		7.35		6.33		7.64		 	10.59		7.38		 	 	8.80		
Central Corridor	15.38		15.26		17.84		14.02		15.63		 	13.86		13.49		 	 	13.67		
Western/Pacific	7.58		11.11		9.87		6.92		8.89		 	16.54		19.87		 	 	18.22		
Worldwide	9.88		9.66		10.89		9.30		9.93		 	12.26		11.70		 	 	11.97		
* Based on total processed inputs and includes proportional share of refining margins contributed by certain equity affiliates. Realized margin excludes special items.	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation and Amortization ($ Millions)*	 	 	 	 	 	 	 	 	 	 	 	
Atlantic Basin/Europe	47		48		49		48		192		 	45		48		 	 	93		
Gulf Coast	50		50		53		54		207		 	54		56		 	 	110		
Central Corridor	23		24		23		25		95		 	25		25		 	 	50		
Western/Pacific	52		52		53		53		210		 	53		54		 	 	107		
Total	172		174		178		180		704		 	177		183		 	 	360		
* Excludes D&A of all equity affiliates.	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating and SG&A Expense ($ Millions)*	 	 	 	 	 	 	 	 	 	 	 	
Atlantic Basin/Europe	289		259		254		266		1,068		 	261		287		 	 	548		
Gulf Coast	365		335		366		401		1,467		 	386		299		 	 	685		
Central Corridor	117		129		120		134		500		 	113		108		 	 	221		
Western/Pacific	233		233		235		251		952		 	217		244		 	 	461		
Total	1,004		956		975		1,052		3,987		 	977		938		 	 	1,915		
* Excludes Operating and SG&A Expense of all equity affiliates.	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Turnaround Expense ($ Millions), included in	 	 	 	 	 	 	 	 	 	
Operating and SG&A Expense*	 	 	 	 	 	 	 	 	 	
Atlantic Basin/Europe	23		9		16		14		62		 	36		89		 	 	125		
Gulf Coast	75		35		67		94		271		 	114		8		 	 	122		
Central Corridor	5		4		3		6		18		 	6		1		 	 	7		
Western/Pacific	22		13		15		23		73		 	17		46		 	 	63		
Total	125		61		101		137		424		 	173		144		 	 	317		
* Excludes Turnaround Expense of all equity affiliates.	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Taxes Other than Income Taxes, excluding Excise Taxes
   ($ Millions)	 	 	 	 	 	 	 	 	 	 	
Atlantic Basin/Europe	18		15		15		15		63		 	16		14		 	 	30		
Gulf Coast	24		21		20		18		83		 	23		18		 	 	41		
Central Corridor	11		7		9		8		35		 	11		10		 	 	21		
Western/Pacific	29		26		26		23		104		 	23		21		 	 	44		
Total	82		69		70		64		285		 	73		63		 	 	136		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Foreign Currency Gains (Losses) After-Tax
($ Millions)	14		(18	)	(6	)	4		(6	)	 	(37	)	3		 	 	(34	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Refining—Equity Affiliate Information ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Equity in earnings of affiliates	150		173		55		(67	)	311		 	97		140		 	 	237		
Less: Share of equity affiliate gross margin included in Realized Refining Margin and other equity affiliate-related costs*	(352	)	(364	)	(248	)	(172	)	(1,136	)	 	(266	)	(303	)	 	 	(569	)	
Equity-affiliate-related expenses not included in Realized Refining Margins	(202	)	(191	)	(193	)	(239	)	(825	)	 	(169	)	(163	)	 	 	(332	)	
Regional Totals	 	 	 	 	 	 	 	 	 	 	 	
Gulf Coast	11		13		3		1		28		 	11		3		 	 	14		
Central Corridor	(167	)	(156	)	(159	)	(195	)	(677	)	 	(152	)	(136	)	 	 	(288	)	
Other Regions**	(46	)	(48	)	(37	)	(45	)	(176	)	 	(28	)	(30	)	 	 	(58	)	
Total	(202	)	(191	)	(193	)	(239	)	(825	)	 	(169	)	(163	)	 	 	(332	)	
 * Other costs associated with equity affiliates which do not flow through equity earnings.	 	 	 	 	 	 	
 ** Combined equity affiliates reported in Atlantic Basin/Europe and Western/Pacific.	 	 	 	 	 	 	

Page 6

	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

																							
REFINING (continued)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	2014	 	2015	
 	 	 	 	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		 	1st Qtr		2nd Qtr		3rd Qtr	4th Qtr	YTD		
Atlantic Basin/Europe*	 	 	 	 	 	 	 	 	 	 	 	
Crude Oil Charge Input (MB/D)	551		562		538		563		554		 	514		475		 	 	494		
Total Charge Input (MB/D)	585		612		588		616		600		 	567		524		 	 	545		
Crude Oil Capacity Utilization (%)	94	%	96	%	92	%	96	%	94	%	 	87	%	81	%	 	 	84	%	
Clean Product Yield (%)	84	%	83	%	86	%	85	%	85	%	 	86	%	84	%	 	 	85	%	
* Includes our proportionate share of a refinery complex in Karlsruhe, Germany.	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gulf Coast	 	 	 	 	 	 	 	 	 	 	 	
Crude Oil Charge Input (MB/D)	613		673		710		708		676		 	528		662		 	 	596		
Total Charge Input (MB/D)	705		771		794		779		763		 	590		738		 	 	664		
Crude Oil Capacity Utilization (%)	84	%	92	%	97	%	97	%	92	%	 	72	%	90	%	 	 	81	%	
Clean Product Yield (%)	81	%	79	%	79	%	77	%	79	%	 	77	%	80	%	 	 	79	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Central Corridor*	 	 	 	 	 	 	 	 	 	 	 	
Crude Oil Charge Input (MB/D)	466		493		476		466		475		 	460		495		 	 	478		
Total Charge Input (MB/D)	481		511		492		481		491		 	483		512		 	 	498		
Crude Oil Capacity Utilization (%)	96	%	102	%	98	%	96	%	98	%	 	94	%	101	%	 	 	97	%	
Clean Product Yield (%)	88	%	88	%	90	%	90	%	89	%	 	87	%	90	%	 	 	89	%	
* Includes our proportionate share of the Borger Refinery and Wood River Refinery.	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Western/Pacific*	 	 	 	 	 	 	 	 	 	 	 	
Crude Oil Charge Input (MB/D)	395		424		390		403		403		 	327		337		 	 	332		
Total Charge Input (MB/D)	427		450		423		435		434		 	357		358		 	 	358		
Crude Oil Capacity Utilization (%)	90	%	96	%	89	%	92	%	92	%	 	91	%	94	%	 	 	92	%	
Clean Product Yield (%)	84	%	85	%	83	%	87	%	85	%	 	87	%	84	%	 	 	86	%	
* Includes our proportionate share of a refinery in Melaka, Malaysia.	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Worldwide—Including Proportionate Share of Equity Affiliates	 	 	 	 	 	 	 	 	 	 	
Crude Oil Charge Input (MB/D)	2,025		2,152		2,114		2,140		2,108		 	1,829		1,969		 	 	1,900		
Total Charge Input (MB/D)	2,198		2,344		2,297		2,311		2,288		 	1,997		2,132		 	 	2,065		
Crude Oil Capacity Utilization (%)	90	%	96	%	94	%	95	%	94	%	 	84	%	90	%	 	 	87	%	
Clean Product Yield (%)	84	%	83	%	84	%	84	%	84	%	 	84	%	84	%	 	 	84	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Refined Products Production (MB/D)	 	 	 	 	 	 	 	 	 	 	 	
Atlantic Basin/Europe*	 	 	 	 	 	 	 	 	 	 	 	
Gasoline	231		244		247		247		242		 	235		224		 	 	229		
Distillates	245		248		240		262		249		 	238		200		 	 	219		
Other	112		123		106		113		114		 	100		102		 	 	101		
Total	588		615		593		622		605		 	573		526		 	 	549		
* Includes our proportionate share of a refinery complex in Karlsruhe, Germany.	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gulf Coast	 	 	 	 	 	 	 	 	 	 	 	
Gasoline	276		300		296		275		287		 	217		299		 	 	259		
Distillates	270		286		299		293		287		 	216		271		 	 	243		
Other	171		197		203		218		197		 	168		172		 	 	170		
Total	717		783		798		786		771		 	601		742		 	 	672		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Central Corridor*	 	 	 	 	 	 	 	 	 	 	 	
Gasoline	247		262		256		251		254		 	241		269		 	 	255		
Distillates	173		187		181		181		181		 	178		189		 	 	183		
Other	63		64		57		53		59		 	68		55		 	 	62		
Total	483		513		494		485		494		 	487		513		 	 	500		
* Includes our proportionate share of the Borger Refinery and Wood River Refinery.	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Western/Pacific*	 	 	 	 	 	 	 	 	 	 	 	
Gasoline	181		198		182		194		188		 	169		173		 	 	171		
Distillates	179		186		167		186		179		 	140		129		 	 	135		
Other	69		70		76		56		68		 	52		54		 	 	53		
Total	429		454		425		436		435		 	361		356		 	 	359		
* Includes our proportionate share of a refinery in Melaka, Malaysia.	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Worldwide—Including Proportionate Share of Equity Affiliates	 	 	 	 	 	 	 	 	 	 	
Gasoline	 	 	 	935		1,004		981		967		971		 	862		965		 	 	914		
Distillates	 	 	 	867		907		887		922		896		 	772		789		 	 	780		
Other	 	 	 	415		454		442		440		438		 	388		383		 	 	386		
Total	 	 	 	2,217		2,365		2,310		2,329		2,305		 	2,022		2,137		 	 	2,080		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Market Indicators	 	 	 	 	 	 	 	 	 	 	 	
Crude and Crude Differentials ($/BBL)	 	 	 	 	 	 	 	 	 	 	 	
WTI	98.75		103.05		97.48		73.41		93.17		 	48.55		57.84		 	 	53.20		
Brent	108.22		109.63		101.85		76.27		98.99		 	53.97		61.92		 	 	57.95		
LLS	104.43		105.55		100.95		76.38		96.83		 	52.83		62.95		 	 	57.89		
ANS	105.74		109.23		101.51		74.76		97.81		 	53.68		62.91		 	 	58.30		
WTI less Maya	9.41		7.27		6.64		6.21		7.38		 	4.43		2.52		 	 	3.47		
WTI less WCS	20.83		19.15		18.22		15.63		18.46		 	13.66		9.74		 	 	11.70		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Natural Gas ($/MCF)	 	 	 	 	 	 	 	 	 	 	 	 	 	
Henry Hub	 	 	 	5.08		4.58		3.94		3.75		4.34		 	2.87		2.72		 	 	2.80		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Product Margins ($/BBL)	 	 	 	 	 	 	 	 	 	 	 	
Atlantic Basin/Europe	 	 	 	 	 	 	 	 	 	 	 	
East Coast Gasoline less Brent	5.12		15.23		15.44		8.69		11.12		 	9.19		20.92		 	 	15.06		
East Coast Distillate less Brent	22.28		14.30		16.63		22.06		18.82		 	23.22		17.74		 	 	20.48		
Gulf Coast	 	 	 	 	 	 	 	 	 	 	 	
Gulf Coast Gasoline less LLS	5.25		11.53		8.54		(0.03	)	6.32		 	9.99		13.31		 	 	11.65		
Gulf Coast Distillate less LLS	18.63		17.00		16.26		16.17		17.02		 	18.03		13.96		 	 	16.00		
Central Corridor	 	 	 	 	 	 	 	 	 	 	 	
Central Gasoline less WTI	13.15		16.09		14.05		6.12		12.35		 	14.88		19.90		 	 	17.39		
Central Distillate less WTI	25.94		21.07		21.85		27.60		24.12		 	22.63		18.21		 	 	20.42		
Western/Pacific	 	 	 	 	 	 	 	 	 	 	 	
West Coast Gasoline less ANS	11.75		20.88		16.59		7.46		14.17		 	20.21		32.95		 	 	26.58		
West Coast Distillate less ANS	17.55		17.16		20.19		21.69		19.15		 	19.17		18.16		 	 	18.67		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Worldwide Market Crack Spread ($/BBL)*	12.44		15.94		14.85		10.45		13.42		 	15.26		18.94		 	 	17.10		
* Weighted average based on Phillips 66 crude capacity.	 	 	 	 	 	 	

Page 7

	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

																							
MARKETING AND SPECIALTIES	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	2014	 	2015	
 	 	 	 	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		 	1st Qtr		2nd Qtr		3rd Qtr	4th Qtr	YTD		
Marketing and Specialties Net Income Attributable
to Phillips 66 ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Marketing and Other	93		119		325		299		836		 	254		266		 	 	520		
Specialties	44		43		43		68		198		 	50		48		 	 	98		
  Marketing and Specialties Net Income Attributable
to Phillips 66	137		162		368		367		1,034		 	304		314		 	 	618		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Marketing and Specialties Income before Income Taxes ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Marketing and Other	135		179		425		423		1,162		 	325		335		 	 	660		
Specialties	70		69		70		104		313		 	81		75		 	 	156		
Marketing and Specialties Income before Income Taxes	205		248		495		527		1,475		 	406		410		 	 	816		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Marketing and Specialties Adjusted EBITDA	226		271		410		494		1,401		 	320		301		 	 	621		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Realized Marketing Fuel Margin ($/BBL)*	 	 	 	 	 	 	 	 	 	 	 	
U.S.	1.19		1.17		1.78		1.87		1.51		 	1.46		1.46		 	 	1.46		
International	3.72		4.52		6.10		6.48		5.22		 	3.85		2.98		 	 	3.41		
* On third-party petroleum products sales.	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Realized Margins not included in Marketing Fuel Margin ($ Millions)*	 	 	 	 	 	 	 	 	 	 	 	
Marketing and Other	139		160		169		135		603		 	165		158		 	 	323		
Specialties	106		102		108		146		462		 	122		117		 	 	239		
Total	245		262		277		281		1,065		 	287		275		 	 	562		
* Excludes Gain on Dispositions and Excise Tax Income.	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation and Amortization ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Marketing and Other	20		21		21		21		83		 	19		19		 	 	38		
Specialties	1		2		3		6		12		 	5		4		 	 	9		
Total	21		23		24		27		95		 	24		23		 	 	47		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating and SG&A Expense ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Marketing and Other	274		284		295		281		1,134		 	254		270		 	 	524		
Specialties	32		30		35		34		131		 	34		35		 	 	69		
Total	306		314		330		315		1,265		 	288		305		 	 	593		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Marketing Petroleum Products Sales (MB/D)	 	 	 	 	 	 	 	 	 	 	 	
U.S. Marketing	 	 	 	 	 	 	 	 	 	 	 	
Gasoline	1,030		1,142		1,093		1,142		1,102		 	974		1,174		 	 	1,074		
Distillates	 	 	 	748		784		750		864		787		 	689		775		 	 	733		
Other	 	 	 	—		—		—		—		—		 	—		—		 	 	—		
Total	 	 	 	1,778		1,926		1,843		2,006		1,889		 	1,663		1,949		 	 	1,807		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
International Marketing	 	 	 	 	 	 	 	 	 	 	 	
Gasoline	 	 	 	89		95		95		95		93		 	88		94		 	 	91		
Distillates	 	 	 	196		186		190		196		192		 	193		185		 	 	189		
Other	 	 	 	16		19		17		17		17		 	16		14		 	 	15		
Total	 	 	 	301		300		302		308		302		 	297		293		 	 	295		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Worldwide Marketing	 	 	 	 	 	 	 	 	 	 	 	
Gasoline	 	 	 	1,119		1,237		1,188		1,237		1,195		 	1,062		1,268		 	 	1,165		
Distillates	 	 	 	944		970		940		1,060		979		 	882		960		 	 	922		
Other	 	 	 	16		19		17		17		17		 	16		14		 	 	15		
Total	 	 	 	2,079		2,226		2,145		2,314		2,191		 	1,960		2,242		 	 	2,102		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Foreign Currency Gains (Losses) After-Tax ($ Millions)	—		(3	)	(3	)	(2	)	(8	)	 	(1	)	(3	)	 	 	(4	)	

Page 8

	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

																							
CORPORATE AND OTHER	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	2014	 	2015	
 	 	 	 	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		 	1st Qtr		2nd Qtr		3rd Qtr	4th Qtr	YTD		
Corporate and Other Net Income (Loss) Attributable	 	 	 	 	 	 	 	 	 	 	 	
to Phillips 66 ($ Millions)	(81	)	(121	)	(91	)	(100	)	(393	)	 	(125	)	(123	)	 	 	(248	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Detail of Net Income (Loss) Attributable to Phillips 66 ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Net interest expense	(41	)	(39	)	(36	)	(44	)	(160	)	 	(53	)	(46	)	 	 	(99	)	
Corporate overhead	(40	)	(44	)	(32	)	(40	)	(156	)	 	(45	)	(36	)	 	 	(81	)	
Technology	(13	)	(14	)	(14	)	(17	)	(58	)	 	(14	)	(15	)	 	 	(29	)	
Other	13		(24	)	(9	)	1		(19	)	 	(13	)	(26	)	 	 	(39	)	
Total	(81	)	(121	)	(91	)	(100	)	(393	)	 	(125	)	(123	)	 	 	(248	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Before-Tax Net Interest Expense ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Interest expense	(69	)	(69	)	(66	)	(83	)	(287	)	 	(102	)	(105	)	 	 	(207	)	
Capitalized interest	1		3		6		10		20		 	16		26		 	 	42		
Interest revenue	5		6		5		5		21		 	5		9		 	 	14		
Total	(63	)	(60	)	(55	)	(68	)	(246	)	 	(81	)	(70	)	 	 	(151	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Foreign Currency Gains (Losses) After-Tax ($ Millions)	—		—		—		—		—		 	—		—		 	 	—		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Phillips 66 Total Company Debt	 	 	 	 	 	 	 	 	 	 	 	
Total Debt ($ Millions)	6,217		6,212		6,213		8,684		8,684		 	8,949		8,965		 	 	8,965		
Debt-to-Capital Ratio (%)	22	%	22	%	22	%	28	%	28	%	 	28	%	28	%	 	 	28	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Equity ($ Millions)	21,829		21,955		22,194		22,037		22,037		 	22,595		23,223		 	 	23,223		

Page 9

	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

																							
NON-GAAP FINANCIAL MEASURES RECONCILIATION	
 	 	 	 	 	
 	 	 	 	Millions of Dollars	
 	 	 	 	2014	 	2015	
 	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		 	1st Qtr		2nd Qtr		3rd Qtr	4th Qtr	YTD		
Reconciliation of Midstream Net Income to Adjusted EBITDA	 	 	 	 	 	 	 	 	 	 	 	
Midstream net income	194		117		124		107		542		 	78		(62	)	 	 	16		
Plus:	 	 	 	 	 	 	 	 	 	 	 	 	 			
Provision for income taxes	108		63		70		68		309		 	38		(37	)	 	 	1		
Depreciation and amortization	19		21		24		27		91		 	26		27		 	 	53		
Midstream EBITDA	321		201		218		202		942		 	142		(72	)	 	 	70		
 	 	 	 	 	 	 	 	 	 	 	 	
Adjustments (pretax):	 	 	 	 	 	 	 	 	 	 	 	
EBITDA attributable to Phillips 66 noncontrolling interests	(8	)	(12	)	(13	)	(12	)	(45	)	 	(16	)	(17	)	 	 	(33	)	
Proportional share of selected equity affiliates income taxes	2		—		2		(1	)	3		 	1		(2	)	 	 	(1	)	
Proportional share of selected equity affiliates net interest	30		31		29		28		118		 	32		33		 	 	65		
Proportional share of selected equity affiliates depreciation and amortization	39		36		37		38		150		 	40		41		 	 	81		
Lower-of-cost-or-market inventory adjustments	—		—		—		2		2		 	—		—		 	 	—		
Impairments by equity affiliates	—		—		—		—		—		 	—		194		 	 	194		
Midstream Adjusted EBITDA*	384		256		273		257		1,170		 	199		177		 	 	376		
* Proportional share of selected equity affiliates is net of noncontrolling interests.	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reconciliation of Chemicals Net Income to Adjusted EBITDA	 	 	 	 	 	 	 	 	 	 	 	
Chemicals net income	316		324		230		267		1,137		 	203		295		 	 	498		
Plus:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Provision for income taxes	126		142		98		129		495		 	88		121		 	 	209		
Chemicals EBITDA	442		466		328		396		1,632		 	291		416		 	 	707		
 	 	 	 	 	 	 	 	 	 	 	 	
Adjustments (pretax):	 	 	 	 	 	 	 	 	 	 	 	
Proportional share of selected equity affiliates income taxes	27		28		35		21		111		 	22		25		 	 	47		
Proportional share of selected equity affiliates net interest	3		1		2		3		9		 	2		1		 	 	3		
Proportional share of selected equity affiliates depreciation and amortization	62		62		64		70		258		 	65		65		 	 	130		
Impairments by equity affiliates	—		—		88		—		88		 	—		—		 	 	—		
Lower-of-cost-or-market inventory adjustments	—		—		—		3		3		 	—		—		 	 	—		
Chemicals Adjusted EBITDA	534		557		517		493		2,101		 	380		507		 	 	887		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reconciliation of Refining Net Income to Adjusted EBITDA	 	 	 	 	 	 	 	 	 	 	 	
Refining net income	306		390		558		517		1,771		 	538		604		 	 	1,142		
Plus:	 	 	 	 	 	 	 	 	 	 	 	 	 			
Provision for income taxes	202		257		301		(64	)	696		 	226		328		 	 	554		
Depreciation and amortization	172		174		178		180		704		 	177		183		 	 	360		
Refining EBITDA	680		821		1,037		633		3,171		 	941		1,115		 	 	2,056		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjustments (pretax):	 	 	 	 	 	 	 	 	 	 	 	
Proportional share of selected equity affiliates income taxes	—		1		—		2		3		 	—		(2	)	 	 	(2	)	
Proportional share of selected equity affiliates net interest	(19	)	—		—		—		(19	)	 	—		—		 	 	—		
Proportional share of selected equity affiliates depreciation and amortization	61		61		61		62		245		 	63		63		 	 	126		
Asset dispositions	—		—		—		(145	)	(145	)	 	(8	)	—		 	 	(8	)	
Impairments	—		—		—		131		131		 	—		—		 	 	—		
Pending claims and settlements	—		—		—		23		23		 	—		—		 	 	—		
Lower-of-cost-or-market inventory adjustments	—		—		—		40		40		 	—		—		 	 	—		
Refining Adjusted EBITDA	722		883		1,098		746		3,449		 	996		1,176		 	 	2,172		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reconciliation of Marketing and Specialties Net Income to Adjusted EBITDA	 	 	 	 	 	 	 	 	 	 	 	
Marketing and Specialties net income	137		162		368		367		1,034		 	304		314		 	 	618		
Plus:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Provision for income taxes	68		86		127		160		441		 	102		96		 	 	198		
Depreciation and amortization	21		23		24		27		95		 	24		23		 	 	47		
Marketing and Specialties EBITDA	226		271		519		554		1,570		 	430		433		 	 	863		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjustments (pretax):	 	 	 	 	 	 	 	 	 	 	 	
Asset dispositions	—		—		(109	)	(16	)	(125	)	 	(110	)	(132	)	 	 	(242	)	
Pending claims and settlements	—		—		—		(44	)	(44	)	 	—		—		 	 	—		
Marketing and Specialties Adjusted EBITDA	226		271		410		494		1,401		 	320		301		 	 	621		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reconciliation of Phillips 66 Net Income to Adjusted EBITDA	 	 	 	 	 	 	 	 	 	 	 	
Net income	1,578		872		1,189		1,158		4,797		 	997		1,025		 	 	2,022		
Less:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from discontinued operations	706		—		—		—		706		 	—		—		 	 	—		
Plus:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Provision for income taxes	426		487		538		203		1,654		 	391		440		 	 	831		
Net interest expense	63		60		55		68		246		 	81		67		 	 	148		
Depreciation and amortization	234		239		249		273		995		 	253		274		 	 	527		
Phillips 66 EBITDA	1,595		1,658		2,031		1,702		6,986		 	1,722		1,806		 	 	3,528		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjustments (pretax):	 	 	 	 	 	 	 	 	 	 	 	
EBITDA attributable to Phillips 66 noncontrolling interests	(8	)	(12	)	(13	)	(12	)	(45	)	 	(16	)	(17	)	 	 	(33	)	
Proportional share of selected equity affiliates income taxes	29		29		37		22		117		 	23		21		 	 	44		
Proportional share of selected equity affiliates net interest	14		32		31		31		108		 	34		34		 	 	68		
Proportional share of selected equity affiliates depreciation and amortization	162		159		162		170		653		 	168		169		 	 	337		
Asset dispositions	—		—		(109	)	(161	)	(270	)	 	(118	)	(132	)	 	 	(250	)	
Impairments	—		—		—		131		131		 	—		—		 	 	—		
Impairments by equity affiliates	—		—		88		—		88		 	—		194		 	 	194		
Pending claims and settlements	—		—		—		(21	)	(21	)	 	—		(5	)	 	 	(5	)	
Lower-of-cost-or-market inventory adjustments	—		—		—		45		45		 	—		—		 	 	—		
Phillips 66 Adjusted EBITDA	1,792		1,866		2,227		1,907		7,792		 	1,813		2,070		 	 	3,883		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Use of Non-GAAP Financial Information —This earnings release supplemental data includes the terms EBITDA and adjusted EBITDA. These are non-GAAP financial measures. EBITDA and adjusted EBITDA are included to help facilitate comparisons of operating performance across periods, to help facilitate comparisons with other companies in our industry and to help facilitate determination of enterprise value. The GAAP measure most directly comparable to EBITDA and adjusted EBITDA is net income.	

Page 10