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): April 29, 2016

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 April 29, 2016 , Phillips 66 issued a press release announcing the company's financial and operating results for the quarter ended March 31, 2016 . 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 April 29, 2016.	
 	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	
 	 	
April 29, 2016	 	

3

EXHIBIT INDEX

	
		
Exhibit	 	
No.	Description	

		
99.1	Press release issued by Phillips 66 on April 29, 2016.	

		
99.2	Supplemental financial and operating information.	

4

Phillips 66 Reports First-Quarter Earnings of $385 Million (Adjusted Earnings of $360 Million)

	
					
 	 	 	 	Exhibit 99.1	

Phillips 66 Reports First -Quarter Earnings of $385 Million
or $0.72 Per Share
Adjusted earnings of $360 million or $0.67 per share

Highlights

		
•	Midstream, Chemicals and Refining negatively impacted by market and seasonality	
		
•	Marketing and Specialties generated solid first-quarter earnings	
		
•	Refining utilization at 94 percent; Chemicals global O&P utilization at 93 percent	
		
•	$687 million of capital returned to shareholders through dividends and share repurchases	
		
•	$446 million invested in Midstream, primarily growth projects	

HOUSTON, April 29, 2016 — Phillips 66 (NYSE: PSX), an energy manufacturing and logistics company, announces first -quarter earnings of $385 million , compared with $650 million in the fourth quarter of 2015 . Adjusted earnings were $360 million , a decrease of $350 million from the last quarter.

"Weaker margins impacted our financial results in the first quarter," said Greg Garland, chairman and CEO of Phillips 66. "Our businesses ran well, and we remain focused on operating excellence with industry-leading safety performance. During the quarter, we successfully completed planned turnarounds and accelerated some maintenance activities in the low margin environment. We are committed to maintaining our strong balance sheet and a disciplined approach to capital allocation. During the quarter we reinvested $750 million in the business and distributed $687 million to shareholders.”

Page 1

Phillips 66 Reports First-Quarter Earnings of $385 Million (Adjusted Earnings of $360 Million)

Midstream

											
 	Millions of Dollars	
 	Earnings	 	Adjusted Earnings	
 	Q1 2016	Q4 2015	 	Q1 2016	Q4 2015	
Transportation	$	72		81		 	72		78		
NGL	(11	)	1		 	(11	)	(2	)	
DCP Midstream	4		(159	)	 	(21	)	(34	)	
Midstream	$	65		(77	)	 	40		42		

Phillips 66's Midstream first -quarter adjusted earnings were $40 million , a decrease of $2 million from the fourth quarter of 2015 .

Adjusted earnings from Phillips 66’s Transportation business were $72 million during the first quarter, a decrease of $6 million from the fourth quarter. Results were impacted by lower earnings from the Rockies Express and Explorer pipeline joint ventures and higher property taxes.

Phillips 66's NGL business generated a loss of $11 million in the first quarter. The $9 million decrease from the prior quarter's adjusted results was largely related to seasonal storage activity, partially offset by lower taxes in the first quarter. Additionally, fractionation processing volumes were limited by heavier incoming NGL composition and turnaround activity.

Phillips 66 Partners (PSXP) contributed $32 million to the Midstream segment's first -quarter earnings. Distributions per limited partner unit increased by 5 percent from the fourth quarter to $0.481 per unit. Distributions to Phillips 66 from PSXP were up 7 percent in the first quarter, compared with the prior quarter, reflecting the positive impact of incentive distribution rights.

For the first quarter, the company’s equity investment in DCP Midstream, LLC (DCP Midstream) had an adjusted loss of $21 million , compared with a $34 million adjusted loss in the prior quarter, as low commodity prices continued to impact DCP Midstream's results. Compared with the prior quarter, results benefited from improved reliability, higher earnings from DCP Midstream's increased interests in the Sand Hills and Southern Hills pipelines and favorable contract restructuring efforts.

Chemicals

											
 	Millions of Dollars	
 	Earnings	 	Adjusted Earnings	
 	Q1 2016	Q4 2015	 	Q1 2016	Q4 2015	
Olefins and Polyolefins (O&P)	$	145		181		 	145		181		
Specialties, Aromatics and Styrenics (SA&S)	16		5		 	16		9		
Other	(5	)	26		 	(5	)	(8	)	
Chemicals	$	156		212		 	156		182		

The Chemicals segment reflects Phillips 66's equity investment in Chevron Phillips Chemical Company LLC (CPChem). First -quarter Chemicals adjusted earnings were $156 million , compared with $182 million in the fourth quarter of 2015 .

During the first quarter, CPChem's Olefins and Polyolefins business contributed $145 million to Phillips 66's Chemicals earnings. This was a decrease of $36 million compared with the prior quarter, primarily due to a decline in cash chain margins, largely driven by lower polyethylene sales prices.

Page 2

Phillips 66 Reports First-Quarter Earnings of $385 Million (Adjusted Earnings of $360 Million)

Global utilization for O&P was 93 percent , up from 92 percent in the fourth quarter, reflecting good demand.

CPChem's Specialties, Aromatics and Styrenics business contributed $16 million of adjusted earnings in the first quarter, an increase of $7 million from the prior quarter. The increase was primarily from improved earnings at CPChem's SA&S equity affiliates due to higher volumes.

Refining

											
 	Millions of Dollars	
 	Earnings	 	Adjusted Earnings	
 	Q1 2016	Q4 2015	 	Q1 2016	Q4 2015	
Refining	$	86		410		 	86		376		

Refining adjusted earnings were $86 million in the first quarter, compared with $376 million in the fourth quarter of 2015 .

The decrease in earnings was largely driven by lower worldwide gasoline and distillate margins. Market crack spreads were $10.64 per barrel, down 17 percent from the prior quarter, and the distillate market crack spread was the lowest since 2010. The Central Corridor and West Coast regions were most impacted by weaker margins, with 24 and 26 percent decreases in market crack spreads, respectively. Phillips 66's worldwide clean product yield was 82 percent in the first quarter, compared with 85 percent in the fourth quarter, primarily due to planned and accelerated maintenance on secondary units. Market capture was 67 percent in the first quarter, down from 74 percent in the fourth quarter. Turnaround costs for the first quarter were $115 million .

Phillips 66’s worldwide refining crude utilization was 94 percent , consistent with the prior quarter. Utilization in the first quarter was impacted by run cuts at certain refineries due to market conditions.

Marketing and Specialties

											
 	Millions of Dollars	
 	Earnings	 	Adjusted Earnings	
 	Q1 2016	Q4 2015	 	Q1 2016	Q4 2015	
Marketing and Other	$	162		199		 	162		198		
Specialties	43		32		 	43		29		
Marketing and Specialties	$	205		231		 	205		227		

Marketing and Specialties (M&S) first -quarter adjusted earnings were $205 million , compared with $227 million in the fourth quarter of 2015 .

Adjusted earnings for Marketing and Other were $162 million , a decrease of $36 million from the prior quarter. The decrease in earnings was largely due to lower biodiesel tax credits. While domestic marketing margins were improved for the quarter, the benefit was mostly offset by lower international marketing margins. Refined product exports in the first quarter were 126,000 barrels per day (BPD), versus 127,000 BPD in the prior quarter.

Phillips 66’s Specialties businesses generated adjusted earnings of $43 million during the first quarter. The $14 million increase from the prior quarter was mainly due to improved base oil margins.

Page 3

Phillips 66 Reports First-Quarter Earnings of $385 Million (Adjusted Earnings of $360 Million)

Corporate and Other

											
 	Millions of Dollars	
 	Earnings	 	Adjusted Earnings	
 	Q1 2016	Q4 2015	 	Q1 2016	Q4 2015	
Corporate and Other	$	(127	)	(126	)	 	(127	)	(117	)	

Corporate and Other adjusted costs were $127 million after-tax in the first quarter, an increase of $10 million compared with the prior quarter, primarily due to lower capitalized interest as a result of the Sweeny fractionator startup in December 2015.

Financial Position, Liquidity and Return of Capital

During the first quarter, Phillips 66 generated $722 million of cash from operations, excluding working capital. Including the impact of working capital, operating cash flow was $258 million . Capital expenditures and investments totaled $750 million .

Phillips 66 returned $687 million to shareholders during the quarter, consisting of $296 million in dividends and the repurchase of 5 million shares of common stock for $391 million . Since July 2012, the company has returned $11.8 billion to shareholders in the form of dividends, share repurchases and share exchange. Phillips 66 ended the quarter with 526 million shares outstanding.

									
 	 	 	 	 	 	
 	Q1 2016	
 	Adjusted Phillips 66	 	Phillips 66 Partners*	 	Phillips 66 Consolidated	
Total Debt, $MM	7,744		 	1,091		 	8,835		
Total Equity, $MM	22,834		 	809		 	23,643		
Debt-to-capital ratio	25	%				27	%	
 	 	 	 	 	 	
Total Cash, $MM	1,703		 	20		 	1,723		
Net-debt-to-capital ratio	21	%				23	%	
* Third-party.	 	 	 	 	 	

As of March 31, 2016 , cash and cash equivalents were $1.7 billion and debt was $8.8 billion , including $1.1 billion of debt at Phillips 66 Partners. The company's consolidated debt-to-capital ratio was 27 percent .

Page 4

Phillips 66 Reports First-Quarter Earnings of $385 Million (Adjusted Earnings of $360 Million)

Strategic Update

Development of the Sweeny Hub is nearing completion with construction of the LPG Export Terminal approximately 80 percent complete. The project is on time and on budget with startup expected in the second half of 2016.

The company is participating in joint ventures to develop the approximately 470,000 BPD Dakota Access Pipeline (DAPL) and Energy Transfer Crude Oil Pipeline (ETCOP) system. Phillips 66 has a 25 percent interest in these joint ventures with Energy Transfer Partners and Sunoco Logistics Partners. Mechanical completion is expected in the fourth quarter of 2016.

Phillips 66 is continuing to invest in its Beaumont Terminal, the largest terminal in the company's portfolio. The terminal has 3.2 million barrels of new storage capacity under construction. In addition, a variety of other projects aimed at increasing storage and throughput capabilities at the terminal have been initiated.

On March 1, 2016, Phillips 66 contributed a 25 percent controlling interest in the Sweeny fractionator and associated Clemens Caverns NGL storage facility to its master limited partnership, Phillips 66 Partners, for total consideration of $236 million. Transaction consideration consisted of $24 million in newly issued PSXP units and a $212 million note payable to Phillips 66. In addition, Phillips 66 Partners reached a milestone with the recent startup of the first segment of the Bayou Bridge Pipeline. This initial leg delivers crude oil from the Phillips 66 Beaumont Terminal in Nederland, Texas, to the Phillips 66 Partners Clifton Ridge Terminal in Lake Charles, Louisiana.

In Chemicals, overall progress on CPChem's world-scale U.S. Gulf Coast Petrochemicals Project is approximately 75 percent complete, with startup expected in mid-2017. This project consists of an ethane cracker and related polyethylene facilities that will increase CPChem's global ethylene and polyethylene capacity by approximately one-third.

Page 5

Phillips 66 Reports First-Quarter Earnings of $385 Million (Adjusted Earnings of $360 Million)

Later today, members of Phillips 66 executive management will host a webcast at noon EDT to discuss the company’s first -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	
 	2016	 	2015	
 	Q1	 	Q4	Q1	
Midstream	$	65		 	(77	)	67		
Chemicals	156		 	212		203		
Refining	86		 	410		538		
Marketing and Specialties	205		 	231		304		
Corporate and Other	(127	)	 	(126	)	(125	)	
Phillips 66	$	385		 	650		987		
 	 	 	 	 	
Adjusted Earnings	 	 	 	 	
 	Millions of Dollars	
 	2016	 	2015	
 	Q1	 	Q4	Q1	
Midstream	$	40		 	42		67		
Chemicals	156		 	182		203		
Refining	86		 	376		495		
Marketing and Specialties	205		 	227		194		
Corporate and Other	(127	)	 	(117	)	(125	)	
Phillips 66	$	360		 	710		834		

Page 6

Phillips 66 Reports First-Quarter Earnings of $385 Million (Adjusted Earnings of $360 Million)

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 $48 billion of assets as of March 31, 2016 . For more information, visit www.phillips66.com or follow us on Twitter @Phillips66Co .

- # # # -

	
				
CONTACTS	 	 	 	
Rosy Zuklic (investors)	 	C.W. Mallon (investors)	 	
832-765-2297	 	832-765-2297	 	
rosy.zuklic@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, and operating cash flow excluding working capital. 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 First-Quarter Earnings of $385 Million (Adjusted Earnings of $360 Million)

	
									
 	 Millions of Dollars	
 	 Except as Indicated	
 	2016	 	2015	
 	Q1	 	Q4	Q1	
Reconciliation of Earnings to Adjusted Earnings	 	 	 	 	
 	 	 	 	 	
Consolidated Earnings	$	385		 	650		987		
Adjustments:	 	 	 		
Asset dispositions	—		 	—		(115	)	
Impairments by equity affiliates	4		 	108		—		
Pending claims and settlements	(29	)	 	—		(38	)	
Pension settlement expenses	—		 	3		—		
Certain tax impacts	—		 	(84	)	—		
Lower-of-cost-or-market inventory adjustments	—		 	33		—		
Adjusted earnings	$	360		 	710		834		
 	 	 	 		
Earnings per share of common stock (dollars)	$	0.72		 	1.20		1.79		
Adjusted earnings per share of common stock (dollars)	$	0.67		 	1.31		1.51		
 	 	 	 		
Midstream Earnings (loss)	$	65		 	(77	)	67		
Adjustments:	 	 	 		
Impairments by equity affiliates	4		 	104		—		
Pending claims and settlements	(29	)	 	—		—		
Certain tax impacts	—		 	15		—		
Adjusted earnings	$	40		 	42		67		
 	 	 	 	 	
Chemicals Earnings	$	156		 	212		203		
Adjustments:	 	 	 		
Impairments by equity affiliates	—		 	4		—		
Certain tax impacts	—		 	(34	)	—		
Adjusted earnings	$	156		 	182		203		
 	 	 	 		
Refining Earnings	$	86		 	410		538		
Adjustments:	 	 	 		
Asset dispositions	—		 	—		(5	)	
Pending claims and settlements	—		 	—		(38	)	
Pension settlement expenses	—		 	2		—		
Certain tax impacts	—		 	(69	)	—		
Lower-of-cost-or-market inventory adjustments	—		 	33		—		
Adjusted earnings	$	86		 	376		495		
 	 	 	 		
Marketing and Specialties Earnings	$	205		 	231		304		
Adjustments:	 	 	 		
Asset dispositions	—		 	—		(110	)	
Pension settlement expenses	—		 	1		—		
Certain tax impacts	—		 	(5	)	—		
Adjusted earnings	$	205		 	227		194		
 	 	 	 	 	
Corporate and Other Earnings (loss)	$	(127	)	 	(126	)	(125	)	
Adjustments:	 	 	 	 	
Certain tax impacts	—		 	9		—		
Adjusted earnings (loss)	$	(127	)	 	(117	)	(125	)	

Page 8

Phillips 66 Reports First-Quarter Earnings of $385 Million (Adjusted Earnings of $360 Million)

	

 	 Millions of Dollars	
 	Q1 2016	
Cash Flows from Operating Activities	 	
 	 	
Net Cash Provided by Operating Activities, excluding working capital	$	722		
Changes in working capital	(464	)	
Net Cash Provided by Operating Activities	$	258		

	

	

	

	

Page 9

	
																
 	 	 	 	 	 	 	 	 	 	 	 	 	Exhibit 99.2	
Phillips 66 Earnings Release Supplemental Data	

	
																						
CONSOLIDATED INCOME STATEMENT	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Millions of Dollars	
 	 	 	 	2015	 	2016	
 	 	 	 	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*	22,778		28,512		25,792		21,893		98,975		 	17,409		 	 	 	17,409		
Equity in earnings of affiliates	456		407		583		127		1,573		 	333		 	 	 	333		
Net gain on dispositions	122		139		22		—		283		 	—		 	 	 	—		
Other income	70		19		20		9		118		 	18		 	 	 	18		
Total Revenues and Other Income	23,426		29,077		26,417		22,029		100,949		 	17,760		 	 	 	17,760		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Costs and Expenses	 	 	 	 	 	 	 	 	 	 	 	
Purchased crude oil and products	16,695		22,253		18,580		15,871		73,399		 	11,930		 	 	 	11,930		
Operating expenses	1,094		1,043		1,083		1,074		4,294		 	1,023		 	 	 	1,023		
Selling, general and administrative expenses	394		406		437		433		1,670		 	386		 	 	 	386		
Depreciation and amortization	253		274		270		281		1,078		 	280		 	 	 	280		
Impairments	—		2		1		4		7		 	—		 	 	 	—		
Taxes other than income taxes*	3,462		3,549		3,610		3,456		14,077		 	3,461		 	 	 	3,461		
Accretion on discounted liabilities	5		6		5		5		21		 	5		 	 	 	5		
Interest and debt expense	86		79		71		74		310		 	86		 	 	 	86		
Foreign currency transaction (gains) losses	49		—		1		(1	)	49		 	(7	)	 	 	 	(7	)	
Total Costs and Expenses	22,038		27,612		24,058		21,197		94,905		 	17,164		 	 	 	17,164		
Income before income taxes	1,388		1,465		2,359		832		6,044		 	596		 	 	 	596		
Provision for income taxes	391		440		767		166		1,764		 	198		 	 	 	198		
Net income	997		1,025		1,592		666		4,280		 	398		 	 	 	398		
Less: net income attributable to noncontrolling interests	10		13		14		16		53		 	13		 	 	 	13		
Net Income Attributable to Phillips 66	987		1,012		1,578		650		4,227		 	385		 	 	 	385		
  * Includes excise taxes on petroleum products sales:	3,362		3,463		3,513		3,442		13,780		 	3,360		 	 	 	3,360		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income Attributable to Phillips 66 Per Share of Common Stock (dollars)	 	 	 	 	 	 	 	 	 	 	 	
  Basic	 	 	 	1.80		1.85		2.92		1.21		7.78		 	0.72		 	 	 	0.72		
  Diluted	 	 	 	1.79		1.84		2.90		1.20		7.73		 	0.72		 	 	 	0.72		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Average Common Shares Outstanding (in thousands)	 	 	 	 	 	 	 	 	 	 	 	
  Basic	 	 	 	548,200		544,617		540,357		536,399		542,355		 	531,739		 	 	 	531,739		
  Diluted	 	 	 	552,337		548,926		544,696		540,245		546,977		 	534,709		 	 	 	534,709		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
SUMMARY OF INCOME (LOSS) ATTRIBUTABLE TO PHILLIPS 66 BY SEGMENT	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Millions of Dollars	
 	 	 	 	2015	 	2016	
 	 	 	 	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		 	1st Qtr		2nd Qtr	3rd Qtr	4th Qtr	YTD		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Midstream	67		(78	)	101		(77	)	13		 	65		 	 	 	65		
Chemicals	203		295		252		212		962		 	156		 	 	 	156		
Refining	538		604		1,003		410		2,555		 	86		 	 	 	86		
Marketing and Specialties	304		314		338		231		1,187		 	205		 	 	 	205		
Corporate and Other	(125	)	(123	)	(116	)	(126	)	(490	)	 	(127	)	 	 	 	(127	)	
Consolidated	987		1,012		1,578		650		4,227		 	385		 	 	 	385		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
SUMMARY OF INCOME (LOSS) BEFORE TAXES BY SEGMENT	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Millions of Dollars	
 	 	 	 	2015	 	2016	
 	 	 	 	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		 	1st Qtr		2nd Qtr	3rd Qtr	4th Qtr	YTD		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Midstream	116		(99	)	173		(43	)	147		 	121		 	 	 	121		
Chemicals	291		416		360		248		1,315		 	228		 	 	 	228		
Refining	764		932		1,488		475		3,659		 	127		 	 	 	127		
Marketing and Specialties	406		410		514		322		1,652		 	315		 	 	 	315		
Corporate and Other	(189	)	(194	)	(176	)	(170	)	(729	)	 	(195	)	 	 	 	(195	)	
Consolidated	1,388		1,465		2,359		832		6,044		 	596		 	 	 	596		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
EFFECTIVE TAX RATES	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	2015	 	2016	
 	 	 	 	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		 	1st Qtr		2nd Qtr	3rd Qtr	4th Qtr	YTD		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Midstream	32.8	%	37.4	%	32.9	%	(34.9	)%	49.7	%	 	33.9	%	 	 	 	33.9	%	
Chemicals	30.2	%	29.1	%	30.0	%	14.5	 %	26.8	%	 	31.6	%	 	 	 	31.6	%	
Refining	29.6	%	35.2	%	32.6	%	13.7	 %	30.2	%	 	32.3	%	 	 	 	32.3	%	
Marketing and Specialties	25.1	%	23.4	%	34.2	%	28.3	 %	28.1	%	 	34.9	%	 	 	 	34.9	%	
Corporate and Other	33.3	%	35.1	%	33.5	%	24.1	 %	31.7	%	 	33.8	%	 	 	 	33.8	%	
Consolidated	28.2	%	30.0	%	32.5	%	20.0	 %	29.2	%	 	33.2	%	 	 	 	33.2	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
SUMMARY OF ADJUSTED NET INCOME (LOSS) ATTRIBUTABLE TO PHILLIPS 66 BY SEGMENT	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Millions of Dollars	
 	 	 	 	2015	 	2016	
 	 	 	 	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		 	1st Qtr		2nd Qtr	3rd Qtr	4th Qtr	YTD		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Midstream	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Transportation	65		65		77		78		285		 	72		 	 	 	72		
DCP Midstream	(12	)	(25	)	(18	)	(34	)	(89	)	 	(21	)	 	 	 	(21	)	
NGL	14		8		32		(2	)	52		 	(11	)	 	 	 	(11	)	
Total Midstream	67		48		91		42		248		 	40		 	 	 	40		
Chemicals	203		295		272		182		952		 	156		 	 	 	156		
Refining	 	 	 	 	 	 	 	 	 	 	 	
Atlantic Basin/Europe	75		90		193		97		455		 	4		 	 	 	4		
Gulf Coast	71		83		285		147		586		 	68		 	 	 	68		
Central Corridor	195		216		372		121		904		 	20		 	 	 	20		
West Coast	154		215		202		11		582		 	(6	)	 	 	 	(6	)	
Total Refining	495		604		1,052		376		2,527		 	86		 	 	 	86		
Marketing and Specialties	 	 	 	 	 	 	 	 	 	 	 	
Marketing and Other	144		134		291		198		767		 	162		 	 	 	162		
Specialties	50		48		53		29		180		 	43		 	 	 	43		
Total Marketing and Specialties	194		182		344		227		947		 	205		 	 	 	205		
Corporate and Other	(125	)	(127	)	(112	)	(117	)	(481	)	 	(127	)	 	 	 	(127	)	
Consolidated	834		1,002		1,647		710		4,193		 	360		 	 	 	360		

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SPECIAL ITEMS INCLUDED IN NET INCOME ATTRIBUTABLE TO PHILLIPS 66	
(AFTER-TAX)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Millions of Dollars	
 	 	 	 	2015	 	2016	
 	 	 	 	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		 	1st Qtr		2nd Qtr	3rd Qtr	4th Qtr	YTD		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Midstream	 	 	 	 	 	 	 	 	 	 	 	
Asset dispositions	—		—		18		—		18		 	—		 	 	 	—		
Pending claims and settlements	—		—		—		—		—		 	29		 	 	 	29		
Impairments by equity affiliates	—		(126	)	(2	)	(104	)	(232	)	 	(4	)	 	 	 	(4	)	
Pension settlement expenses	—		—		(6	)	—		(6	)	 	—		 	 	 	—		
Certain tax impacts	—		—		—		(15	)	(15	)	 	—		 	 	 	—		
Total Midstream	—		(126	)	10		(119	)	(235	)	 	25		 	 	 	25		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Chemicals	 	 	 	 	 	 	 	 	 	 	 	
Impairments by equity affiliates	—		—		(20	)	(4	)	(24	)	 	—		 	 	 	—		
Certain tax impacts	—		—		—		34		34		 	—		 	 	 	—		
Total Chemicals	—		—		(20	)	30		10		 	—		 	 	 	—		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Refining	 	 	 	 	 	 	 	 	 	 	 	
Asset dispositions	5		—		—		—		5		 	—		 	 	 	—		
Pending claims and settlements	38		—		(19	)	—		19		 	—		 	 	 	—		
Lower-of-cost-or-market inventory adjustments	—		—		—		(33	)	(33	)	 	—		 	 	 	—		
Pension settlement expenses	—		—		(30	)	(2	)	(32	)	 	—		 	 	 	—		
Certain tax impacts	—		—		—		69		69		 	—		 	 	 	—		
Total Refining	43		—		(49	)	34		28		 	—		 	 	 	—		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Marketing and Specialties	 	 	 	 	 	 	 	 	 	 	 	
Asset dispositions	110		132		—		—		242		 	—		 	 	 	—		
Pension settlement expenses	—		—		(6	)	(1	)	(7	)	 	—		 	 	 	—		
Certain tax impacts	—		—		—		5		5		 	—		 	 	 	—		
Total Marketing and Specialties	110		132		(6	)	4		240		 	—		 	 	 	—		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Corporate and Other	 	 	 	 	 	 	 	 	 	 	 	
Pending claims and settlements	—		4		—		—		4		 	—		 	 	 	—		
Pension settlement expenses	—		—		(4	)	—		(4	)	 	—		 	 	 	—		
Certain tax impacts	—		—		—		(9	)	(9	)	 	—		 	 	 	—		
Total Corporate and Other	—		4		(4	)	(9	)	(9	)	 	—		 	 	 	—		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Phillips 66	153		10		(69	)	(60	)	34		 	25		 	 	 	25		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
By Business Lines/Regions	 	 	 	 	 	 	 	 	 	 	 	
Midstream	 	 	 	 	 	 	 	 	 	 	 	
Transportation	—		—		—		3		3		 	—		 	 	 	—		
DCP Midstream	—		(126	)	16		(125	)	(235	)	 	25		 	 	 	25		
NGL	—		—		(6	)	3		(3	)	 	—		 	 	 	—		
Total Midstream	—		(126	)	10		(119	)	(235	)	 	25		 	 	 	25		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Refining	 	 	 	 	 	 	 	 	 	 	 	
Atlantic Basin/Europe	38		—		(13	)	89		114		 	—		 	 	 	—		
Gulf Coast	—		—		(16	)	(19	)	(35	)	 	—		 	 	 	—		
Central Corridor	—		—		(12	)	(35	)	(47	)	 	—		 	 	 	—		
West Coast	5		—		(8	)	(1	)	(4	)	 	—		 	 	 	—		
Total Refining	43		—		(49	)	34		28		 	—		 	 	 	—		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Marketing and Specialties	 	 	 	 	 	 	 	 	 	 	 	
Marketing and Other	110		132		(6	)	1		237		 	—		 	 	 	—		
Specialties	—		—		—		3		3		 	—		 	 	 	—		
Total Marketing and Specialties	110		132		(6	)	4		240		 	—		 	 	 	—		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
SPECIAL ITEMS INCLUDED IN INCOME BEFORE TAXES	
(PRETAX)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Millions of Dollars	
 	 	 	 	2015	 	2016	
 	 	 	 	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		 	1st Qtr		2nd Qtr	3rd Qtr	4th Qtr	YTD		
Midstream	 	 	 	 	 	 	 	 	 	 	 	
Transportation	—		—		—		—		—		 	—		 	 	 	—		
DCP Midstream	—		(194	)	26		(168	)	(336	)	 	39		 	 	 	39		
NGL	—		—		(9	)	—		(9	)	 	—		 	 	 	—		
Total Midstream	—		(194	)	17		(168	)	(345	)	 	39		 	 	 	39		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Chemicals	—		—		(20	)	(4	)	(24	)	 	—		 	 	 	—		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Refining	 	 	 	 	 	 	 	 	 	 	 	
Atlantic Basin/Europe	—		—		(21	)	(2	)	(23	)	 	—		 	 	 	—		
Gulf Coast	—		—		(26	)	(2	)	(28	)	 	—		 	 	 	—		
Central Corridor	—		—		(18	)	(53	)	(71	)	 	—		 	 	 	—		
West Coast	8		—		(14	)	—		(6	)	 	—		 	 	 	—		
Total Refining	8		—		(79	)	(57	)	(128	)	 	—		 	 	 	—		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Marketing and Specialties	 	 	 	 	 	 	 	 	 	 	 	
Marketing and Other	110		132		(10	)	(1	)	231		 	—		 	 	 	—		
Specialties	—		—		—		—		—		 	—		 	 	 	—		
Total Marketing and Specialties	110		132		(10	)	(1	)	231		 	—		 	 	 	—		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Corporate and Other	—		5		(7	)	4		2		 	—		 	 	 	—		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Phillips 66	118		(57	)	(99	)	(226	)	(264	)	 	39		 	 	 	39		

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CASH FLOW INFORMATION	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Millions of Dollars	
 	 	 	 	2015	 	2016	
 	 	 	 	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	997		1,025		1,592		666		4,280		 	398		 	 	 	398		
Depreciation and amortization	253		274		270		281		1,078		 	280		 	 	 	280		
Impairments	—		2		1		4		7		 	—		 	 	 	—		
Accretion on discounted liabilities	5		6		5		5		21		 	5		 	 	 	5		
Deferred taxes	(6	)	(75	)	(44	)	654		529		 	154		 	 	 	154		
Undistributed equity earnings	(337	)	662		(308	)	168		185		 	(166	)	 	 	 	(166	)	
Net gain on dispositions	(122	)	(139	)	(22	)	—		(283	)	 	—		 	 	 	—		
Other	90		4		(24	)	47		117		 	51		 	 	 	51		
Net working capital changes	472		(332	)	(33	)	(328	)	(221	)	 	(464	)	 	 	 	(464	)	
Net Cash Provided by Operating Activities	1,352		1,427		1,437		1,497		5,713		 	258		 	 	 	258		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash Flows From Investing Activities	 	 	 	 	 	 	 	 	 	 	 	
Capital expenditures and investments	(1,081	)	(1,213	)	(992	)	(2,478	)	(5,764	)	 	(750	)	 	 	 	(750	)	
Proceeds from asset dispositions*	(9	)	4		73		2		70		 	5		 	 	 	5		
Advances/loans—related parties	(50	)	—		—		—		(50	)	 	(75	)	 	 	 	(75	)	
Collection of advances/loans—related parties	—		50		—		—		50		 	—		 	 	 	—		
Other	102		(55	)	(45	)	(46	)	(44	)	 	(42	)	 	 	 	(42	)	
Net Cash Used in Investing Activities	(1,038	)	(1,214	)	(964	)	(2,522	)	(5,738	)	 	(862	)	 	 	 	(862	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash Flows From Financing Activities	 	 	 	 	 	 	 	 	 	 	 	
Issuance of debt	1,169		—		—		—		1,169		 	50		 	 	 	50		
Repayment of debt	(895	)	(9	)	(14	)	(8	)	(926	)	 	(100	)	 	 	 	(100	)	
Issuance of common stock	(25	)	—		(2	)	8		(19	)	 	(31	)	 	 	 	(31	)	
Repurchase of common stock	(399	)	(334	)	(373	)	(406	)	(1,512	)	 	(391	)	 	 	 	(391	)	
Dividends paid on common stock	(272	)	(302	)	(300	)	(298	)	(1,172	)	 	(296	)	 	 	 	(296	)	
Distributions to noncontrolling interests	(6	)	(14	)	(10	)	(16	)	(46	)	 	(11	)	 	 	 	(11	)	
Net proceeds from issuance of Phillips 66 Partners LP common units	384		—		—		—		384		 	—		 	 	 	—		
Other	(14	)	16		—		3		5		 	(4	)	 	 	 	(4	)	
Net Cash Used in Financing Activities	(58	)	(643	)	(699	)	(717	)	(2,117	)	 	(783	)	 	 	 	(783	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Effect of Exchange Rate Changes on Cash and Cash Equivalents	(73	)	129		(41	)	(6	)	9		 	36		 	 	 	36		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Change in Cash and Cash Equivalents	183		(301	)	(267	)	(1,748	)	(2,133	)	 	(1,351	)	 	 	 	(1,351	)	
Cash and cash equivalents at beginning of period	5,207		5,390		5,089		4,822		5,207		 	3,074		 	 	 	3,074		
Cash and Cash Equivalents at End of Period	5,390		5,089		4,822		3,074		3,074		 	1,723		 	 	 	1,723		
*Includes return of investments in equity affiliates and working capital true-ups on dispositions.	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
CAPITAL PROGRAM	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Millions of Dollars	
 	 	 	 	2015	 	2016	
 	 	 	 	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		 	1st Qtr		2nd Qtr	3rd Qtr	4th Qtr	YTD		
Consolidated Capital Expenditures and Investments	 	 	 	 	 	 	 	 	 	 	 	
Midstream	769		899		700		2,089		4,457		 	446		 	 	 	446		
Chemicals	—		—		—		—		—		 	—		 	 	 	—		
Refining	274		268		233		294		1,069		 	261		 	 	 	261		
Marketing and Specialties	24		30		32		36		122		 	15		 	 	 	15		
Corporate and Other	14		16		27		59		116		 	28		 	 	 	28		
Total Consolidated	1,081		1,213		992		2,478		5,764		 	750		 	 	 	750		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Proportional Share of Select Equity Affiliates Capital Expenditures and Investments*	 	 	 	 	 	 	 	 	 	 	 	
DCP Midstream (Midstream)	157		149		71		61		438		 	35		 	 	 	35		
CPChem (Chemicals)	249		259		331		480		1,319		 	247		 	 	 	247		
WRB Refining (Refining)	35		36		47		57		175		 	37		 	 	 	37		
Select Equity Affiliates	441		444		449		598		1,932		 	319		 	 	 	319		
	 	 	 	 	 	 	 	 	 	 	 	
Total Capital Program*	 	 	 	 	 	 	 	 	 	 	 	
Midstream	926		1,048		771		2,150		4,895		 	481		 	 	 	481		
Chemicals	249		259		331		480		1,319		 	247		 	 	 	247		
Refining	309		304		280		351		1,244		 	298		 	 	 	298		
Marketing and Specialties	24		30		32		36		122		 	15		 	 	 	15		
Corporate and Other	14		16		27		59		116		 	28		 	 	 	28		
Total Capital Program	1,522		1,657		1,441		3,076		7,696		 	1,069		 	 	 	1,069		
 * 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.	

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MIDSTREAM	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	2015	 	2016	
 	 	 	 	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	65		65		77		81		288		 	72		 	 	 	72		
DCP Midstream	(12	)	(151	)	(2	)	(159	)	(324	)	 	4		 	 	 	4		
NGL	14		8		26		1		49		 	(11	)	 	 	 	(11	)	
Midstream Net Income (Loss) Attributable to Phillips 66	67		(78	)	101		(77	)	13		 	65		 	 	 	65		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Midstream Income (Loss) before Income Taxes ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Transportation	113		115		129		134		491		 	123		 	 	 	123		
DCP Midstream	(17	)	(233	)	(3	)	(210	)	(463	)	 	7		 	 	 	7		
NGL	20		19		47		33		119		 	(9	)	 	 	 	(9	)	
Midstream Income (Loss) before Income Taxes	116		(99	)	173		(43	)	147		 	121		 	 	 	121		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Midstream Adjusted EBITDA ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Transportation and NGL	143		144		198		188		673		 	144		 	 	 	144		
DCP Midstream	56		33		47		34		170		 	44		 	 	 	44		
Midstream Adjusted EBITDA	199		177		245		222		843		 	188		 	 	 	188		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation and Amortization ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Transportation	25		27		31		31		114		 	30		 	 	 	30		
DCP Midstream	—		—		—		—		—		 	—		 	 	 	—		
NGL	1		—		2		10		13		 	18		 	 	 	18		
Total	26		27		33		41		127		 	48		 	 	 	48		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating and SG&A Expense ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Transportation	124		117		113		124		478		 	122		 	 	 	122		
DCP Midstream	—		—		1		—		1		 	(1	)	 	 	 	(1	)	
NGL	32		25		34		36		127		 	45		 	 	 	45		
Total	156		142		148		160		606		 	166		 	 	 	166		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Transportation Volumes (MB/D)	 	 	 	 	 	 	 	 	 	 	 	
Pipelines*	3,145		3,290		3,239		3,381		3,264		 	3,488		 	 	 	3,488		
Terminals**	1,983		1,969		2,021		1,953		1,981		 	2,209		 	 	 	2,209		
    * 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)*	108		108		110		123		112		 	161		 	 	 	161		
* Excludes DCP Midstream.	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
100% DCP Midstream Results	 	 	 	 	 	 	 	 	 	 	 	
Net Income Attributable, excludes parent company income tax related to DCP's earnings ($ Millions)*	(37	)	(466	)	(6	)	(433	)	(942	)	 	24		 	 	 	24		
* Q4 2015 revised.	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation and Amortization ($ Millions)	91		94		93		99		377		 	95		 	 	 	95		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating and SG&A Expense ($ Millions)	236		240		275		277		1,028		 	245		 	 	 	245		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Expense ($ Millions)*	76		79		85		80		320		 	79		 	 	 	79		
* Net of interest income.	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Capital Expenditures and Investments ($ Millions)	314		297		143		121		875		 	69		 	 	 	69		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Selected DCP Volumes and Gross Margin	 	 	 	 	 	 	 	 	 	 	 	
by Major Contract Type (excludes current quarter)	 	 	 	 	 	 	 	 	 	 	 	
Percentage of Proceeds (long NGL / long Gas)*	 	 	 	 	 	 	 	 	 	 	 	
Volume (TBtu/d)	5.6		5.6		5.7		5.6		5.6		 	 **		 	 	 	—		
Gross Margin ($ Millions)	130		125		120		115		490		 	 **		 	 	 	—		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Keep-whole (long NGL / short Gas)*	 	 	 	 	 	 	 	 	 	 	 	
Volume (TBtu/d)	0.3		0.3		0.3		0.2		0.3		 	 **		 	 	 	—		
Gross Margin ($ Millions)	10		10		5		5		30		 	 **		 	 	 	—		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Fee-based Gas (primarily gathering and transport)*	 	 	 	 	 	 	 	 	 	 	 	
Volume (TBtu/d)	4.7		4.7		4.9		4.8		4.8		 	 **		 	 	 	—		
Gross Margin ($ Millions)	95		105		110		135		445		 	 **		 	 	 	—		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Fee-based NGL Transport and Fractionation	 	 	 	 	 	 	 	 	 	 	 	
Volume (MB/d)	320		339		354		411		356		 	 **		 	 	 	—		
Gross Margin ($ Millions)	36		44		47		58		185		 	 **		 	 	 	—		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other Gross Margin***	 	 	 	 	 	 	 	 	 	 	 	
Gross Margin ($ Millions)	118		94		162		116		490		 	 **		 	 	 	—		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Throughput (TBtu/d)	7.1		7.0		7.3		7.1		7.1		 	6.9		 	 	 	6.9		
NGL Production (MB/d)	399		408		421		410		410		 	382		 	 	 	382		
    * 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 ($/BBL)	20.57		19.99		17.57		17.66		18.95		 	15.34		 	 	 	15.34		
DCP Midstream ($/gal)	0.49		0.48		0.42		0.42		0.45		 	0.37		 	 	 	0.37		
* 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	6		9		11		14		40		 	16		 	 	 	16		
LP Distribution from PSXP to Phillips 66	21		23		25		27		96		 	28		 	 	 	28		
GP Distribution from DPM to DCP Midstream***	31		31		31		31		124		 	**		 	 	 	—		
LP Distribution from DPM to DCP Midstream***	19		19		19		19		76		 	**		 	 	 	—		
      * 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.	 	 	 	 	 	 	 	

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CHEMICALS	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	2015	 	2016	
 	 	 	 	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)	203		295		252		212		962		 	156		 	 	 	156		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Chemicals Adjusted EBITDA ($ Millions)	380		507		473		341		1,701		 	319		 	 	 	319		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
100% CPChem Results	 	 	 	 	 	 	 	 	 	 	 	
Net Income (Loss), excludes parent company income tax related to CPChem's earnings ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Olefins and Polyolefins	530		769		737		499		2,535		 	422		 	 	 	422		
Specialties, Aromatics and Styrenics	69		93		4		19		185		 	49		 	 	 	49		
Corporate and Other	(12	)	(28	)	(11	)	(18	)	(69	)	 	(12	)	 	 	 	(12	)	
Total	 	 	 	587		834		730		500		2,651		 	459		 	 	 	459		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (Loss) before Income Taxes ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Olefins and Polyolefins	542		780		750		510		2,582		 	432		 	 	 	432		
Specialties, Aromatics and Styrenics	77		100		10		23		210		 	56		 	 	 	56		
Corporate and Other	(12	)	(28	)	(9	)	(18	)	(67	)	 	(12	)	 	 	 	(12	)	
Total	 	 	 	607		852		751		515		2,725		 	476		 	 	 	476		

Depreciation and Amortization ($ Millions)	76		74		75		81		306		 	77		 	 	 	77		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Expense ($ Millions)*	—		(1	)	(1	)	—		(2	)	 	—		 	 	 	—		
* Net of interest income.	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Investing Cash Flows ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Capital Expenditures and Investments	498		518		661		960		2,637		 	493		 	 	 	493		
Advances to Equity Companies	10		23		22		20		75		 	14		 	 	 	14		
Advance Repayments from Equity Companies	—		—		—		(18	)	(18	)	 	—		 	 	 	—		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Externally Marketed Sales Volumes (MM Lbs)*	 	 	 	 	 	 	 	 	 	 	 	
Olefins and Polyolefins	4,019		4,258		4,446		4,193		16,916		 	4,002		 	 	 	4,002		
Specialties, Aromatics and Styrenics	1,482		1,356		1,259		1,204		5,301		 	1,254		 	 	 	1,254		
Total	 	 	 	5,501		5,614		5,705		5,397		22,217		 	5,256		 	 	 	5,256		
* 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 (%)	87	%	91	%	94	%	92	%	91	%	 	93	%	 	 	 	93	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Market Indicators*	 	 	 	 	 	 	 	 	 	 	 	
U.S. Industry Prices	 	 	 	 	 	 	 	 	 	 	 	
Ethylene, Average Acquisition Contract (cents/lb)	38.04		37.88		29.18		24.44		32.39		 	23.95		 	 	 	23.95		
HDPE Blow Molding, Domestic Spot (cents/lb)	 	 	 	52.75		58.83		58.42		54.00		56.00		 	47.42		 	 	 	47.42		
 	 	 	 	 	 	 	 	 	 	 	 	
U.S. Industry Costs	 	 	 	 	 	 	 	 	 	 	 	
Ethylene, Cash Cost Weighted Average Feed (cents/lb)	10.25		9.67		9.64		10.91		10.12		 	9.80		 	 	 	9.80		
HDPE Blow Molding, Total Cash Cost (cents/lb)	50.97		50.73		41.91		36.90		45.13		 	36.50		 	 	 	36.50		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Ethylene to High-Density Polyethylene Chain Cash Margin (cents/lb)	29.57		36.31		36.05		30.63		33.14		 	25.07		 	 	 	25.07		
* Source: IHS, Inc.	 	 	 	 	 	 	 	 	 	 	 	

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REFINING	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	2015	 	2016	
 	 	 	 	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	113		90		180		186		569		 	4		 	 	 	4		
Gulf Coast	71		83		269		128		551		 	68		 	 	 	68		
Central Corridor	195		216		360		86		857		 	20		 	 	 	20		
West Coast	159		215		194		10		578		 	(6	)	 	 	 	(6	)	
Refining Net Income (Loss) Attributable to Phillips 66	538		604		1,003		410		2,555		 	86		 	 	 	86		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Refining Income (Loss) before Income Taxes ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Atlantic Basin/Europe	108		130		228		88		554		 	3		 	 	 	3		
Gulf Coast	109		127		416		237		889		 	107		 	 	 	107		
Central Corridor	301		347		546		132		1,326		 	32		 	 	 	32		
West Coast	246		328		298		18		890		 	(15	)	 	 	 	(15	)	
Refining Income (Loss) before Income Taxes	764		932		1,488		475		3,659		 	127		 	 	 	127		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Refining Adjusted EBITDA ($ Millions)	996		1,176		1,816		786		4,774		 	376		 	 	 	376		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Realized Refining Margins ($/BBL)*	 	 	 	 	 	 	 	 	 	 	 	
Atlantic Basin/Europe	9.94		10.45		10.27		7.18		9.39		 	5.79		 	 	 	5.79		
Gulf Coast	10.59		7.38		10.72		8.59		9.29		 	6.76		 	 	 	6.76		
Central Corridor	13.86		13.49		20.97		11.43		14.88		 	7.41		 	 	 	7.41		
West Coast	16.54		19.87		18.29		12.51		16.86		 	9.70		 	 	 	9.70		
Worldwide	12.26		11.70		13.96		9.41		11.84		 	7.11		 	 	 	7.11		
* 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	45		48		51		53		197		 	47		 	 	 	47		
Gulf Coast	54		56		57		58		225		 	57		 	 	 	57		
Central Corridor	25		25		25		26		101		 	26		 	 	 	26		
West Coast	53		54		54		54		215		 	56		 	 	 	56		
Total	177		183		187		191		738		 	186		 	 	 	186		
* Excludes D&A of all equity affiliates.	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating and SG&A Expense ($ Millions)*	 	 	 	 	 	 	 	 	 	 	 	
Atlantic Basin/Europe	261		287		265		249		1,062		 	236		 	 	 	236		
Gulf Coast	386		299		320		296		1,301		 	286		 	 	 	286		
Central Corridor	113		108		138		123		482		 	114		 	 	 	114		
West Coast	217		244		256		303		1,020		 	250		 	 	 	250		
Total	977		938		979		971		3,865		 	886		 	 	 	886		
* Excludes Operating and SG&A Expense of all equity affiliates.	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Turnaround Expense ($ Millions), included in	 	 	 	 	 	 	 	 	 	
Operating and SG&A Expense*	 	 	 	 	 	 	 	 	 	
Atlantic Basin/Europe	36		89		21		15		161		 	26		 	 	 	26		
Gulf Coast	114		8		7		16		145		 	23		 	 	 	23		
Central Corridor	6		1		10		16		33		 	10		 	 	 	10		
West Coast	17		46		31		83		177		 	56		 	 	 	56		
Total	173		144		69		130		516		 	115		 	 	 	115		
* Excludes Turnaround Expense of all equity affiliates.	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Taxes Other than Income Taxes, excluding Excise Taxes ($ Millions)	 	 	 	 	 	 	 	 	 	 	
Atlantic Basin/Europe	16		14		14		14		58		 	17		 	 	 	17		
Gulf Coast	23		18		18		17		76		 	23		 	 	 	23		
Central Corridor	11		10		11		10		42		 	13		 	 	 	13		
West Coast	23		21		22		20		86		 	22		 	 	 	22		
Total	73		63		65		61		262		 	75		 	 	 	75		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Foreign Currency Gains (Losses) After-Tax ($ Millions)	(37	)	3		(1	)	1		(34	)	 	5		 	 	 	5		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Refining—Equity Affiliate Information ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Equity in earnings of affiliates	97		140		112		(24	)	325		 	(9	)	 	 	 	(9	)	
Less: Share of equity affiliate gross margin included in Realized Refining Margin and other equity affiliate-related costs*	(266	)	(303	)	(298	)	(186	)	(1,053	)	 	(146	)	 	 	 	(146	)	
Equity-affiliate-related expenses not included in Realized Refining Margins	(169	)	(163	)	(186	)	(210	)	(728	)	 	(155	)	 	 	 	(155	)	
Regional Totals	 	 	 	 	 	 	 	 	 	 	 	
Atlantic Basin/Europe	(28	)	(30	)	(19	)	(16	)	(93	)	 	(18	)	 	 	 	(18	)	
Gulf Coast	11		3		7		13		34		 	14		 	 	 	14		
Central Corridor	(152	)	(136	)	(174	)	(207	)	(669	)	 	(151	)	 	 	 	(151	)	
Total	(169	)	(163	)	(186	)	(210	)	(728	)	 	(155	)	 	 	 	(155	)	
* Other costs associated with equity affiliates which do not flow through equity earnings.	 	 	 	 	 	 	

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REFINING (continued)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	2015	 	2016	
 	 	 	 	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)	514		475		570		596		539		 	577		 	 	 	577		
Total Charge Input (MB/D)	567		524		611		627		583		 	607		 	 	 	607		
Crude Oil Capacity Utilization (%)	87	%	81	%	97	%	101	%	92	%	 	98	%	 	 	 	98	%	
Clean Product Yield (%)	86	%	84	%	84	%	86	%	85	%	 	83	%	 	 	 	83	%	
* Includes our proportionate share of a refinery complex in Karlsruhe, Germany.	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gulf Coast	 	 	 	 	 	 	 	 	 	 	 	
Crude Oil Charge Input (MB/D)	528		662		735		688		654		 	679		 	 	 	679		
Total Charge Input (MB/D)	590		738		816		756		726		 	748		 	 	 	748		
Crude Oil Capacity Utilization (%)	72	%	90	%	100	%	93	%	89	%	 	91	%	 	 	 	91	%	
Clean Product Yield (%)	76	%	79	%	79	%	83	%	79	%	 	79	%	 	 	 	79	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Central Corridor*	 	 	 	 	 	 	 	 	 	 	 	
Crude Oil Charge Input (MB/D)	460		495		448		456		465		 	472		 	 	 	472		
Total Charge Input (MB/D)	483		512		465		476		484		 	491		 	 	 	491		
Crude Oil Capacity Utilization (%)	94	%	101	%	91	%	93	%	95	%	 	96	%	 	 	 	96	%	
Clean Product Yield (%)	86	%	90	%	87	%	87	%	88	%	 	88	%	 	 	 	88	%	
* Includes our proportionate share of the Borger Refinery and Wood River Refinery.	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
West Coast	 	 	 	 	 	 	 	 	 	 	 	
Crude Oil Charge Input (MB/D)	327		337		346		312		330		 	323		 	 	 	323		
Total Charge Input (MB/D)	357		358		375		343		358		 	351		 	 	 	351		
Crude Oil Capacity Utilization (%)	91	%	94	%	96	%	87	%	92	%	 	90	%	 	 	 	90	%	
Clean Product Yield (%)	87	%	84	%	86	%	84	%	85	%	 	81	%	 	 	 	81	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Worldwide — Including Proportionate Share of Equity Affiliates	 	 	 	 	 	 	 	 	 	 	
Crude Oil Charge Input (MB/D)	1,829		1,969		2,099		2,052		1,988		 	2,051		 	 	 	2,051		
Total Charge Input (MB/D)	1,997		2,132		2,267		2,202		2,151		 	2,197		 	 	 	2,197		
Crude Oil Capacity Utilization (%)	84	%	90	%	96	%	94	%	91	%	 	94	%	 	 	 	94	%	
Clean Product Yield (%)	83	%	84	%	83	%	85	%	84	%	 	82	%	 	 	 	82	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Refined Products Production (MB/D)	 	 	 	 	 	 	 	 	 	 	 	
Atlantic Basin/Europe*	 	 	 	 	 	 	 	 	 	 	 	
Gasoline	235		224		248		251		239		 	249		 	 	 	249		
Distillates	238		200		251		271		240		 	241		 	 	 	241		
Other	100		102		115		112		108		 	121		 	 	 	121		
Total	573		526		614		634		587		 	611		 	 	 	611		
* Includes our proportionate share of a refinery complex in Karlsruhe, Germany.	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gulf Coast	 	 	 	 	 	 	 	 	 	 	 	
Gasoline	211		289		318		311		283		 	286		 	 	 	286		
Distillates	216		271		302		288		270		 	277		 	 	 	277		
Other	174		182		206		163		180		 	192		 	 	 	192		
Total	601		742		826		762		733		 	755		 	 	 	755		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Central Corridor*	 	 	 	 	 	 	 	 	 	 	 	
Gasoline	237		268		234		238		244		 	254		 	 	 	254		
Distillates	178		189		169		174		177		 	175		 	 	 	175		
Other	72		56		62		66		65		 	65		 	 	 	65		
Total	487		513		465		478		486		 	494		 	 	 	494		
* Includes our proportionate share of the Borger Refinery and Wood River Refinery.	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
West Coast	 	 	 	 	 	 	 	 	 	 	 	
Gasoline	169		173		184		160		172		 	161		 	 	 	161		
Distillates	140		129		137		129		134		 	123		 	 	 	123		
Other	52		54		54		54		53		 	66		 	 	 	66		
Total	361		356		375		343		359		 	350		 	 	 	350		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Worldwide—Including Proportionate Share of Equity Affiliates	 	 	 	 	 	 	 	 	 	 	
Gasoline	 	 	 	852		954		984		960		938		 	950		 	 	 	950		
Distillates	 	 	 	772		789		859		862		821		 	816		 	 	 	816		
Other	 	 	 	398		394		437		395		406		 	444		 	 	 	444		
Total	 	 	 	2,022		2,137		2,280		2,217		2,165		 	2,210		 	 	 	2,210		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Certain 2015 refined product production and yield information have been recast to conform to the 2016 presentation.	 	 	 	 	 	 	

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REFINING (continued)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	2015	 	2016	
 	 	 	 	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		 	1st Qtr		2nd Qtr	3rd Qtr	4th Qtr	YTD		
Market Indicators	 	 	 	 	 	 	 	 	 	 	 	
Crude and Crude Differentials ($/BBL)	 	 	 	 	 	 	 	 	 	 	 	
WTI	48.55		57.84		46.37		42.10		48.72		 	33.27		 	 	 	33.27		
Brent	53.97		61.92		50.26		43.69		52.46		 	33.89		 	 	 	33.89		
LLS	52.83		62.95		50.13		43.57		52.37		 	35.14		 	 	 	35.14		
ANS	53.68		62.91		51.44		43.79		52.96		 	34.46		 	 	 	34.46		
WTI less Maya	4.43		2.52		3.81		7.73		4.62		 	7.21		 	 	 	7.21		
WTI less WCS	13.66		9.74		15.06		14.45		13.23		 	13.63		 	 	 	13.63		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Natural Gas ($/MCF)	 	 	 	 	 	 	 	 	 	 	 	 	 	
Henry Hub	 	 	 	2.87		2.72		2.74		2.08		2.61		 	1.98		 	 	 	1.98		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Product Margins ($/BBL)	 	 	 	 	 	 	 	 	 	 	 	
Atlantic Basin/Europe	 	 	 	 	 	 	 	 	 	 	 	
East Coast Gasoline less Brent	9.19		20.92		19.77		11.92		15.45		 	11.54		 	 	 	11.54		
East Coast Distillate less Brent	23.22		17.74		15.41		12.49		17.22		 	10.79		 	 	 	10.79		
Gulf Coast	 	 	 	 	 	 	 	 	 	 	 	
Gulf Coast Gasoline less LLS	9.99		13.31		13.44		7.62		11.09		 	7.81		 	 	 	7.81		
Gulf Coast Distillate less LLS	18.03		13.96		13.13		10.45		13.89		 	7.92		 	 	 	7.92		
Central Corridor	 	 	 	 	 	 	 	 	 	 	 	
Central Gasoline less WTI	14.88		19.90		22.85		13.22		17.71		 	10.24		 	 	 	10.24		
Central Distillate less WTI	22.63		18.21		20.40		15.03		19.06		 	11.08		 	 	 	11.08		
West Coast	 	 	 	 	 	 	 	 	 	 	 	
West Coast Gasoline less ANS	20.21		32.95		38.61		23.82		28.90		 	17.66		 	 	 	17.66		
West Coast Distillate less ANS	19.17		18.16		14.84		15.45		16.91		 	11.19		 	 	 	11.19		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Worldwide Market Crack Spread ($/BBL)*	15.26		18.94		19.51		12.77		16.62		 	10.64		 	 	 	10.64		
* Weighted average based on Phillips 66 crude capacity.	 	 	 	 	 	 	

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MARKETING AND SPECIALTIES	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	2015	 	2016	
 	 	 	 	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	254		266		285		199		1,004		 	162		 	 	 	162		
Specialties	50		48		53		32		183		 	43		 	 	 	43		
Marketing and Specialties Net Income Attributable to Phillips 66	304		314		338		231		1,187		 	205		 	 	 	205		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Marketing and Specialties Income before Income Taxes ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Marketing and Other	325		335		430		276		1,366		 	246		 	 	 	246		
Specialties	81		75		84		46		286		 	69		 	 	 	69		
Marketing and Specialties Income before Income Taxes	406		410		514		322		1,652		 	315		 	 	 	315		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Marketing and Specialties Adjusted EBITDA ($ Millions)	320		299		549		348		1,516		 	340		 	 	 	340		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Realized Marketing Fuel Margin ($/BBL)*	 	 	 	 	 	 	 	 	 	 	 	
U.S.	1.46		1.46		2.26		1.37		1.65		 	1.83		 	 	 	1.83		
International	3.85		2.98		5.94		4.74		4.40		 	3.16		 	 	 	3.16		
* On third-party petroleum products sales.	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Realized Margins not included in Marketing Fuel Margin ($ Millions)*	 	 	 	 	 	 	 	 	 	 	 	
Marketing and Other	165		158		159		125		607		 	123		 	 	 	123		
Specialties	122		117		122		92		453		 	112		 	 	 	112		
Total	287		275		281		217		1,060		 	235		 	 	 	235		
* Excludes Gain on Dispositions and Excise Tax Income.	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation and Amortization ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Marketing and Other	19		19		20		21		79		 	20		 	 	 	20		
Specialties	5		4		5		4		18		 	5		 	 	 	5		
Total	24		23		25		25		97		 	25		 	 	 	25		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating and SG&A Expense ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Marketing and Other	254		270		292		267		1,083		 	244		 	 	 	244		
Specialties	34		35		34		38		141		 	35		 	 	 	35		
Total	288		305		326		305		1,224		 	279		 	 	 	279		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Marketing Petroleum Products Sales (MB/D)	 	 	 	 	 	 	 	 	 	 	 	
U.S. Marketing	 	 	 	 	 	 	 	 	 	 	 	
Gasoline	974		1,174		1,158		1,143		1,113		 	1,086		 	 	 	1,086		
Distillates	 	 	 	689		775		792		788		761		 	706		 	 	 	706		
Other	 	 	 	—		—		—		—		—		 	—		 	 	 	—		
Total	 	 	 	1,663		1,949		1,950		1,931		1,874		 	1,792		 	 	 	1,792		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
International Marketing	 	 	 	 	 	 	 	 	 	 	 	
Gasoline	 	 	 	88		94		95		93		92		 	90		 	 	 	90		
Distillates	 	 	 	193		185		193		194		192		 	197		 	 	 	197		
Other	 	 	 	16		14		15		18		16		 	15		 	 	 	15		
Total	 	 	 	297		293		303		305		300		 	302		 	 	 	302		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Worldwide Marketing	 	 	 	 	 	 	 	 	 	 	 	
Gasoline	 	 	 	1,062		1,268		1,253		1,236		1,205		 	1,176		 	 	 	1,176		
Distillates	 	 	 	882		960		985		982		953		 	903		 	 	 	903		
Other	 	 	 	16		14		15		18		16		 	15		 	 	 	15		
Total	 	 	 	1,960		2,242		2,253		2,236		2,174		 	2,094		 	 	 	2,094		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Foreign Currency Gains (Losses) After-Tax ($ Millions)	(1	)	(3	)	—		—		(4	)	 	(1	)	 	 	 	(1	)	

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CORPORATE AND OTHER	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	2015	 	2016	
 	 	 	 	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)	(125	)	(123	)	(116	)	(126	)	(490	)	 	(127	)	 	 	 	(127	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Detail of Net Income (Loss) Attributable to Phillips 66 ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Net interest expense	(53	)	(46	)	(43	)	(44	)	(186	)	 	(54	)	 	 	 	(54	)	
Corporate overhead	(45	)	(36	)	(37	)	(39	)	(157	)	 	(42	)	 	 	 	(42	)	
Technology	(14	)	(15	)	(15	)	(16	)	(60	)	 	(14	)	 	 	 	(14	)	
Other	(13	)	(26	)	(21	)	(27	)	(87	)	 	(17	)	 	 	 	(17	)	
Total	(125	)	(123	)	(116	)	(126	)	(490	)	 	(127	)	 	 	 	(127	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Before-Tax Net Interest Expense ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Interest expense	(102	)	(105	)	(105	)	(104	)	(416	)	 	(105	)	 	 	 	(105	)	
Capitalized interest	16		26		34		30		106		 	19		 	 	 	19		
Interest revenue	5		9		5		6		25		 	4		 	 	 	4		
Premium on early debt retirement	—		—		—		—		—		 	(1	)	 	 	 	(1	)	
Total	(81	)	(70	)	(66	)	(68	)	(285	)	 	(83	)	 	 	 	(83	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Foreign Currency Gains (Losses) After-Tax ($ Millions)	—		—		—		—		—		 	1		 	 	 	1		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Phillips 66 Total Company Debt	 	 	 	 	 	 	 	 	 	 	 	
Total Debt ($ Millions)	8,892		8,909		8,897		8,887		8,887		 	8,835		 	 	 	8,835		
Debt-to-Capital Ratio (%)	28	%	28	%	27	%	27	%	27	%	 	27	%	 	 	 	27	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Equity ($ Millions)	22,595		23,223		24,032		23,938		23,938		 	23,643		 	 	 	23,643		

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NON-GAAP FINANCIAL MEASURES RECONCILIATION	
 	 	 	 	 	
 	 	 	 	Millions of Dollars	
 	 	 	 	2015	 	2016	
 	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	78		(62	)	116		(58	)	74		 	80		 	 	 	80		
Plus:	 	 	 	 	 	 	 	 	 	 	 	 	 			
Provision for income taxes	38		(37	)	57		15		73		 	41		 	 	 	41		
Depreciation and amortization	26		27		33		41		127		 	48		 	 	 	48		
Midstream EBITDA	142		(72	)	206		(2	)	274		 	169		 	 	 	169		
 	 	 	 	 	 	 	 	 	 	 	 	
Adjustments (pretax):	 	 	 	 	 	 	 	 	 	 	 	
EBITDA attributable to Phillips 66 noncontrolling interests	(16	)	(17	)	(20	)	(20	)	(73	)	 	(18	)	 	 	 	(18	)	
Proportional share of selected equity affiliates income taxes	1		(2	)	—		(1	)	(2	)	 	1		 	 	 	1		
Proportional share of selected equity affiliates net interest	32		33		34		34		133		 	32		 	 	 	32		
Proportional share of selected equity affiliates depreciation and amortization	40		41		42		43		166		 	43		 	 	 	43		
Pending claims and settlements	—		—		—		—		—		 	(45	)	 	 	 	(45	)	
Impairments by equity affiliates	—		194		4		168		366		 	6		 	 	 	6		
Asset disposition	—		—		(30	)	—		(30	)	 	—		 	 	 	—		
Pension settlement expenses	—		—		9		—		9		 	—		 	 	 	—		
Midstream Adjusted EBITDA*	199		177		245		222		843		 	188		 	 	 	188		
* Proportional share of selected equity affiliates is net of noncontrolling interests.	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
MIDSTREAM ADJUSTED EBITDA BY BUSINESS LINE	 	 	 	 	 	 	 	 	 	 	 	
Transportation and NGL	 	 	 	 	 	 	 	 	 	 	 	
Transportation and NGL net income	90		89		118		101		398		 	76		 	 	 	76		
Plus:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Provision for income taxes	43		45		58		66		212		 	38		 	 	 	38		
Depreciation and amortization	26		27		33		41		127		 	48		 	 	 	48		
Transportation and NGL EBITDA	159		161		209		208		737		 	162		 	 	 	162		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjustments (pretax):	 	 	 	 	 	 	 	 	 	 	 	
EBITDA attributable to Phillips 66 noncontrolling interests	(16	)	(17	)	(20	)	(20	)	(73	)	 	(18	)	 	 	 	(18	)	
Pension settlement expenses	—		—		9		—		9		 	—		 	 	 	—		
Transportation and NGL Adjusted EBITDA	143		144		198		188		673		 	144		 	 	 	144		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
DCP Midstream	 	 	 	 	 	 	 	 	 	 	 	
DCP Midstream net income	(12	)	(151	)	(2	)	(159	)	(324	)	 	4		 	 	 	4		
Plus:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Provision for income taxes	(5	)	(82	)	(1	)	(51	)	(139	)	 	3		 	 	 	3		
DCP Midstream EBITDA	(17	)	(233	)	(3	)	(210	)	(463	)	 	7		 	 	 	7		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjustments (pretax):	 	 	 	 	 	 	 	 	 	 	 	
Proportional share of selected equity affiliates income taxes	1		(2	)	—		(1	)	(2	)	 	1		 	 	 	1		
Proportional share of selected equity affiliates net interest	32		33		34		34		133		 	32		 	 	 	32		
Proportional share of selected equity affiliates depreciation and amortization	40		41		42		43		166		 	43		 	 	 	43		
Pending claims and settlements	—		—		—		—		—		 	(45	)	 	 	 	(45	)	
Impairments by equity affiliates	—		194		4		168		366		 	6		 	 	 	6		
Asset disposition	—		—		(30	)	—		(30	)	 	—		 	 	 	—		
DCP Midstream Adjusted EBITDA*	56		33		47		34		170		 	44		 	 	 	44		
* Proportional share of selected equity affiliates is net of noncontrolling interests.	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reconciliation of Chemicals Net Income to Adjusted EBITDA	 	 	 	 	 	 	 	 	 	 	 	
Chemicals net income	203		295		252		212		962		 	156		 	 	 	156		
Plus:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Provision for income taxes	88		121		108		36		353		 	72		 	 	 	72		
Chemicals EBITDA	291		416		360		248		1,315		 	228		 	 	 	228		
 	 	 	 	 	 	 	 	 	 	 	 	
Adjustments (pretax):	 	 	 	 	 	 	 	 	 	 	 	
Proportional share of selected equity affiliates income taxes	22		25		26		18		91		 	18		 	 	 	18		
Proportional share of selected equity affiliates net interest	2		1		2		2		7		 	2		 	 	 	2		
Proportional share of selected equity affiliates depreciation and amortization	65		65		65		69		264		 	71		 	 	 	71		
Impairments by equity affiliates	—		—		20		4		24		 	—		 	 	 	—		
Chemicals Adjusted EBITDA	380		507		473		341		1,701		 	319		 	 	 	319		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reconciliation of Refining Net Income to Adjusted EBITDA	 	 	 	 	 	 	 	 	 	 	 	
Refining net income	538		604		1,003		410		2,555		 	86		 	 	 	86		
Plus:	 	 	 	 	 	 	 	 	 	 	 	 	 			
Provision for income taxes	226		328		485		65		1,104		 	41		 	 	 	41		
Depreciation and amortization	177		183		187		191		738		 	186		 	 	 	186		
Refining EBITDA	941		1,115		1,675		666		4,397		 	313		 	 	 	313		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjustments (pretax):	 	 	 	 	 	 	 	 	 	 	 	
Proportional share of selected equity affiliates income taxes	—		(2	)	—		(1	)	(3	)	 	—		 	 	 	—		
Proportional share of selected equity affiliates net interest	—		—		—		—		—		 	—		 	 	 	—		
Proportional share of selected equity affiliates depreciation and amortization	63		63		62		64		252		 	63		 	 	 	63		
Asset dispositions	(8	)	—		—		—		(8	)	 	—		 	 	 	—		
Pending claims and settlements	—		—		30		—		30		 	—		 	 	 	—		
Lower-of-cost-or-market inventory adjustments	—		—		—		53		53		 	—		 	 	 	—		
Pension settlement expenses	—		—		49		4		53		 	—		 	 	 	—		
Refining Adjusted EBITDA	996		1,176		1,816		786		4,774		 	376		 	 	 	376		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reconciliation of Marketing and Specialties Net Income to Adjusted EBITDA	 	 	 	 	 	 	 	 	 	 	 	
Marketing and Specialties net income	304		314		338		231		1,187		 	205		 	 	 	205		
Plus:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Provision for income taxes	102		96		176		91		465		 	110		 	 	 	110		
Interest revenue	—		(2	)	—		—		(2	)	 	—		 	 	 	—		
Depreciation and amortization	24		23		25		25		97		 	25		 	 	 	25		
Marketing and Specialties EBITDA	430		431		539		347		1,747		 	340		 	 	 	340		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjustments (pretax):	 	 	 	 	 	 	 	 	 	 	 	
Asset dispositions	(110	)	(132	)	—		—		(242	)	 	—		 	 	 	—		
Pension settlement expenses	—		—		10		1		11		 	—		 	 	 	—		
Marketing and Specialties Adjusted EBITDA	320		299		549		348		1,516		 	340		 	 	 	340		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reconciliation of Phillips 66 Net Income to Adjusted EBITDA	 	 	 	 	 	 	 	 	 	 	 	
Net income	997		1,025		1,592		666		4,280		 	398		 	 	 	398		
Plus:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Provision for income taxes	391		440		767		166		1,764		 	198		 	 	 	198		
Net interest expense	81		67		66		69		283		 	83		 	 	 	83		
Depreciation and amortization	253		274		270		281		1,078		 	280		 	 	 	280		
Phillips 66 EBITDA	1,722		1,806		2,695		1,182		7,405		 	959		 	 	 	959		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjustments (pretax):	 	 	 	 	 	 	 	 	 	 	 	
EBITDA attributable to Phillips 66 noncontrolling interests	(16	)	(17	)	(20	)	(20	)	(73	)	 	(18	)	 	 	 	(18	)	
Proportional share of selected equity affiliates income taxes	23		21		26		16		86		 	19		 	 	 	19		
Proportional share of selected equity affiliates net interest	34		34		36		36		140		 	34		 	 	 	34		
Proportional share of selected equity affiliates depreciation and amortization	168		169		169		176		682		 	177		 	 	 	177		
Asset dispositions	(118	)	(132	)	(30	)	—		(280	)	 	—		 	 	 	—		
Impairments by equity affiliates	—		194		24		172		390		 	6		 	 	 	6		
Pending claims and settlements	—		—		30		—		30		 	(45	)	 	 	 	(45	)	
Lower-of-cost-or-market inventory adjustments	—		—		—		53		53		 	—		 	 	 	—		
Pension settlement expenses	—		—		75		5		80		 	—		 	 	 	—		
Phillips 66 Adjusted EBITDA	1,813		2,075		3,005		1,620		8,513		 	1,132		 	 	 	1,132		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
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.	

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