8-K

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 30, 2014

Phillips 66

(Exact name of registrant as specified in its charter)

Delaware	001-35349	45-3779385
(State or other jurisdiction of	(Commission	(I.R.S. Employer
incorporation)	File Number)	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 30, 2014, Phillips 66 issued a press release announcing the company's financial and operating results for the quarter ended March 31, 2014. 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 30, 2014.
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/ C. Doug Johnson
	C. Doug Johnson Vice President and Controller
April 30, 2014

3

EXHIBIT INDEX

Exhibit
No.	Description

99.1 Press release issued by Phillips 66 on April 30, 2014.

99.2 Supplemental financial and operating information.

4

EX-99.1

Exhibit 99.1

Phillips 66 Reports First-Quarter Earnings of $1.6 Billion

or $2.67 Per Share

Adjusted earnings of $866 million or $1.47 per share

Highlights

• Delivered significant improvement in Midstream results

• Achieved record earnings in Chemicals

• Refining impacted by planned downtime

• Returned $2.2 billion of capital to shareholders including the exchange of Phillips Specialty Products Inc. for Phillips 66 shares

HOUSTON, April 30, 2014 — Phillips 66 (NYSE: PSX), an energy manufacturing and logistics company, announces first-quarter earnings of $1.6 billion and adjusted earnings of $866 million excluding $706 million primarily related to the realized gain on the Phillips Specialty Products Inc. (PSPI) exchange. This compares with fourth-quarter 2013 earnings of $826 million and adjusted earnings of $808 million.

"We delivered a strong quarter, with solid performance and improved margins in our Midstream and Chemicals businesses," said Greg Garland, chairman and CEO of Phillips 66. "Our Refining results were impacted by planned downtime at several of our Gulf Coast and Central Corridor refineries and tightening crude spreads."

"During the first quarter, we made significant progress executing our Midstream growth plans. Phillips 66 Partners completed its first acquisition, final investment decisions were reached on our Sweeny NGL Fractionator I and Freeport LPG Export Terminal projects, and we signed a key LPG sales agreement. In addition to funding our growth plans, we continued to return capital to our shareholders through the payment of regular dividends, ongoing share repurchases and the PSPI share exchange," said Garland.

Midstream

Midstream recorded $188 million of earnings during the first quarter of 2014, $67 million higher than the prior quarter.

Phillips 66’s Transportation business earnings were $62 million during the quarter, compared with earnings of $50 million in the fourth quarter of 2013. The increase was primarily attributable to improved margins from higher throughput fees and railcar rates, as well as lower operating costs.

Page 1

Phillips 66 Reports First-Quarter Earnings of $1.6 Billion (Adjusted Earnings of $866 Million)

First-quarter earnings related to the company’s equity investment in DCP Midstream, LLC were $83 million, compared with $37 million in the prior quarter. The $46 million increase was partially due to gains recorded by Phillips 66 resulting from the issuance of units by DCP Midstream Partners, LP (DCP Partners). In addition, earnings benefited from lower operating costs, as well as higher natural gas and NGL prices.

Earnings from the NGL business were $43 million for the quarter, compared with $34 million during the fourth quarter of 2013. The increase was primarily related to improved margins driven by stronger propane prices.

Chemicals

The Chemicals segment reflects Phillips 66's equity investment in Chevron Phillips Chemical Company LLC (CPChem). First-quarter 2014 Chemicals earnings were $316 million, an increase of $55 million from the prior quarter.

During the first quarter of 2014, CPChem's Olefins and Polyolefins (O&P) business contributed $283 million to Phillips 66's Chemicals earnings, compared with $262 million in the prior quarter. This increase was primarily due to higher realized O&P chain margins and improved earnings from CPChem's equity affiliates, partially offset by lower ethylene volumes. Global utilization for O&P was 93 percent during the quarter.

CPChem's Specialties, Aromatics and Styrenics (SA&S) business contributed $38 million of earnings during the first quarter of 2014, $29 million higher than the prior period. The improvement was mainly driven by lower costs and improved benzene margins following the completion of a planned turnaround during the fourth quarter.

Refining

Refining earnings were $306 million during the first quarter of 2014, compared with earnings of $418 million during the previous quarter. The decrease was primarily attributed to lower volumes due to planned turnaround and maintenance activities, as well as weaker realized refining margins. Despite higher worldwide market crack spreads, realized margins decreased mostly due to tightening crude spreads, lower clean product realizations and negative inventory impacts.

During the quarter, 91 percent of Phillips 66’s U.S. crude slate was advantaged, compared with 94 percent in the fourth quarter of last year. This decrease was largely due to planned refinery turnaround activity in the Gulf Coast region.

Worldwide, Phillips 66’s refining utilization was 90 percent and clean product yield was 84 percent in the first quarter of 2014.

Marketing and Specialties

First-quarter earnings for Marketing and Specialties (M&S) were $137 million, compared with earnings of $105 million during the prior quarter.

Earnings from Marketing and Other were $93 million during the quarter, compared with earnings of $54 million in the previous quarter. The $39 million increase was primarily due to improved U.S. margins, partially offset by higher costs and lower volumes. Refined product exports totaled 139,000 barrels per day in the first quarter, down from 197,000 barrels per day last quarter. The lower exports resulted mostly from refinery turnaround activity in the Gulf Coast region during the first quarter.

Page 2

Phillips 66 Reports First-Quarter Earnings of $1.6 Billion (Adjusted Earnings of $866 Million)

Phillips 66’s Specialties businesses generated earnings of $44 million during the first quarter of 2014, compared with earnings of $51 million during the prior quarter. The decrease primarily reflects lower base oil margins, partially offset by improved lubricants margins.

Corporate and Other

Corporate and Other costs were $81 million after-tax for the quarter, $16 million lower than costs in the fourth quarter of 2013.

Discontinued Operations

PSPI, which is reported as Discontinued Operations, was exchanged Feb. 25, 2014, for 17.4 million shares of Phillips 66 common stock. Earnings during the first quarter of 2014 were $706 million, primarily reflecting the gain realized on the exchange. In the fourth quarter of 2013, Discontinued Operations earnings were $18 million.

Financial Position, Liquidity and Return of Capital

During the quarter, Phillips 66 generated $1.4 billion of cash from operations. The company received a $1.2 billion special distribution from WRB Refining in the first quarter of 2014, of which $760 million benefited cash from operations, and $472 million was considered a return of investment and included in "proceeds from asset dispositions." Excluding working capital and the impacts of the WRB special distribution, adjusted cash from operations was $1.0 billion.

The company funded $572 million in capital expenditures and investments, and returned $2.2 billion of capital to shareholders in the first quarter. The PSPI exchange returned $1.35 billion of capital, of which $450 million consisted of cash. In addition, Phillips 66 paid $229 million in dividends and repurchased 8.4 million shares of common stock for $640 million. The share repurchases and PSPI share exchange resulted in 566 million shares outstanding at the end of the first quarter.

As of March 31, 2014, cash and cash equivalents were $5.3 billion and debt was $6.2 billion. The company's debt-to-capital ratio was 22 percent. Additionally, Phillips 66 reported a year-to-date annualized return on capital employed (ROCE) of 23 percent, and a year-to-date annualized adjusted ROCE of 13 percent.

Strategic Initiatives

Phillips 66 is growing its Midstream and Chemicals segments, while enhancing returns in Refining. As announced in February, the company reached a final investment decision to construct its Sweeny Fractionator I and Freeport LPG Export Terminal, and in March signed a related sales contract for delivery of LPG to China. These two projects represent a projected investment of more than $3 billion.

Phillips 66 Partners LP (NYSE: PSXP) completed its first post-initial public offering acquisition from Phillips 66 in March. This $700 million acquisition included a refined products pipeline system and two refinery-grade propylene storage spheres.

The company's Transportation business took delivery of 2,000 new crude oil railcars in 2013 and ordered an additional 1,200 crude oil railcars during the first quarter of 2014. These new crude railcars, which meet or exceed current government safety standards, are part of Phillips 66's program to increase the safe shipment of advantaged crudes into its refineries. Delivery of the additional railcars is scheduled to be completed by the end of 2014. Construction continued on rail offloading facilities at the Bayway and Ferndale refineries, both of which are expected to be operational in the second half of 2014. Recently, the company also reached agreements with several third-party logistics companies to deliver additional advantaged crude to its refineries.

Page 3

Phillips 66 Reports First-Quarter Earnings of $1.6 Billion (Adjusted Earnings of $866 Million)

During the quarter, Phillips 66 increased its ownership in the refined products Explorer Pipeline to 19.5 percent with the purchase of an additional 5.7 percent interest. Additionally, the Cross-Channel Connector project is expected to be operational as early as the fourth quarter of 2014.

During the first quarter, DCP Partners completed a $1.15 billion acquisition from DCP Midstream, its largest to date. The transaction included DCP Midstream's one-third interests in the Sand Hills and Southern Hills pipelines and its remaining 20 percent interest in the Eagle Ford system, as well as the 35 million-cubic-feet-per-day (MMCFD) Lucerne 1 Plant in the Denver-Julesburg Basin. In addition, DCP Partners will complete construction of the 200 MMCFD Lucerne 2 Plant, which is expected to be operational in mid-2015. As recently announced, DCP Midstream plans to build a 200 MMCFD sour natural gas processing plant, the Zia II Plant, with associated gathering system expansions in the Permian Basin.

CPChem is investing in domestic growth projects to realize the benefits of low-cost petrochemical feedstocks in the U.S. Gulf Coast (USGC). During the quarter, CPChem broke ground on its USGC Petrochemicals Project consisting of a 3.3 billion-pounds-per-year ethane cracker and two polyethylene facilities, each with an annual capacity of 1.1 billion pounds. The ethane cracker will be built at CPChem's Cedar Bayou Plant in Baytown, Texas, and the two polyethylene units will be built near its Sweeny Facility. The project is expected to start up in 2017. CPChem's 1-hexene project, also at Cedar Bayou, is anticipated to start up during the second quarter of 2014. Globally, CPChem is expanding its sulfur-based products capacity at its Belgium facility by more than 40 percent. Construction is expected to be completed in the second quarter of 2014.

Phillips 66 remains focused on enhancing returns in Refining by expanding access to advantaged feedstocks, controlling costs and optimizing its portfolio. Following a turnaround and crude unit modifications at the Alliance Refinery, the facility now has the capability to process a wider variety of light crude oils. The company continues to progress the potential sale of the Bantry Bay Terminal in Ireland and its interest in the Melaka Refinery in Malaysia; however, the sales process has been discontinued for the Whitegate Refinery in Ireland.

In order to maintain strong refinery utilization rates and meet growing demand for refined products in regions outside the United States, the company is expanding its refined products export capability. Phillips 66 expects to increase its export capability to 550,000 barrels per day by 2016.

In Marketing and Specialties, the company increased its ownership interest in the Sweeny Cogeneration power plant to 100 percent by acquiring the remaining 50 percent interest. Phillips 66's Sweeny Refinery and CPChem's Sweeny Facility both use steam and power generated by the plant.

Later today, Phillips 66 Chairman and Chief Executive Officer Greg Garland; Executive Vice President and Chief Financial Officer Greg Maxwell; and Executive Vice President Tim Taylor will host a webcast at 11 a.m. EDT to discuss the company’s first-quarter performance and provide an update on strategic initiatives. To listen to the conference call and view related presentation materials, go to www.phillips66.com/investors and click on "Presentations & Conference Calls." For detailed supplemental information, go to www.phillips66.com/earningsreports.

Page 4

Phillips 66 Reports First-Quarter Earnings of $1.6 Billion (Adjusted Earnings of $866 Million)

Earnings
	Millions of Dollars
	First Quarter			Fourth Quarter
	2014			2013
Midstream	$	188		$	121
Chemicals	316			261
Refining	306			418
Marketing and Specialties	137			105
Corporate and Other	(81		)	(97		)
Discontinued Operations	706			18
Phillips 66	$	1,572		$	826
Adjusted Earnings
	Millions of Dollars
	First Quarter			Fourth Quarter
	2014			2013
Midstream	$	188		$	121
Chemicals	316			261
Refining	306			418
Marketing and Specialties	137			105
Corporate and Other	(81		)	(97		)
Phillips 66	$	866		$	808

Page 5

Phillips 66 Reports First-Quarter Earnings of $1.6 Billion (Adjusted Earnings of $866 Million)

About Phillips 66

Built on more than 130 years of experience, Phillips 66 is a growing energy manufacturing and logistics company with high-performing Midstream, Chemicals, Refining, and Marketing and Specialties businesses. This integrated portfolio enables Phillips 66 to capture opportunities in the changing energy landscape. Headquartered in Houston, the company has 13,500 employees who are committed to operating excellence and safety. Phillips 66 had $51 billion of assets as of March 31, 2014. For more information, visit www.phillips66.com or follow us on Twitter @Phillips66Co.

- # # # -

CONTACTS

Rich Johnson (media)

832-765-1016

rich.johnson@p66.com

Rosy Zuklic (investors)    

832-765-2297

rosy.zuklic@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 crude oil, NGL, and natural gas prices, and refining and petrochemical 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 crude oil, natural gas, NGL, 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 adjusted cash from operations. These are non-GAAP financial measures. Adjusted earnings, adjusted earnings per share, and adjusted cash from operations 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.

Prior period results have been recast to reflect realignment of certain businesses between segments and business lines. Within the Midstream segment, certain NGL pipelines were moved from the Transportation business to the NGL business. Sales commissions for specialty coke, polypropylene and solvents businesses are recorded in the M&S segment. Certain joint ventures, such as a base oil business, were moved from the Refining segment to the M&S segment.

Page 6

Phillips 66 Reports First-Quarter Earnings of $1.6 Billion (Adjusted Earnings of $866 Million)

Reconciliation of Earnings to Adjusted Earnings
	Millions of Dollars
	Except as Indicated
	1Q			4Q
	2014			2013
Consolidated
Earnings (loss)	$	1,572		$	826
Adjustments:
Discontinued operations	(706		)	(18		)
Adjusted earnings	$	866		$	808
Earnings per share of common stock (dollars)	$	2.67		$	1.37
Adjusted earnings per share of common stock (dollars)	$	1.47		$	1.34

	Millions of Dollars
	1Q
	2014
Cash Flows from Operating Activities
Net Cash Provided by Operating Activities	$	1,398
Working capital adjustments
Working capital	(123		)
Deferred tax impact from certain transactions on current taxes payable	468
Adjusted Working Capital	345
WRB special distribution	(760		)
Adjusted Cash from Operations	$	983

	Millions of Dollars
	2014 YTD
Phillips 66 - ROCE
Numerator
Net income	$	1,578
After-tax interest expense	44
GAAP ROCE earnings	1,622
Special items	(706		)
Adjusted ROCE earnings	$	916
Denominator
GAAP average capital employed*	$	28,296
Discontinued operations	(96		)
Adjusted average capital employed	$	28,200
Annualized Adjusted ROCE (percent)	13		%
Annualized GAAP ROCE (percent)	23		%
*Total equity plus total debt.

Page 7

EX-99.2

	Exhibit 99.2
Phillips 66 Earnings Release Supplemental Data

CONSOLIDATED INCOME STATEMENT
	Millions of Dollars
	2013										2014
	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*	41,211		43,190		44,146		43,049		171,596		40,283					40,283
Equity in earnings of affiliates	1,039		618		647		769		3,073		778					778
Net gain on dispositions	1		41		8		5		55		7					7
Other income (loss)	23		49		(7	)	20		85		31					31
Total Revenues and Other Income	42,274		43,898		44,794		43,843		174,809		41,099					41,099
Costs and Expenses
Purchased crude oil and products	35,243		37,257		38,717		37,028		148,245		34,381					34,381
Operating expenses	978		1,032		992		1,204		4,206		1,090					1,090
Selling, general and administrative expenses	327		368		349		434		1,478		402					402
Depreciation and amortization	242		229		233		243		947		234					234
Impairments	24		1		1		3		29		1					1
Taxes other than income taxes*	3,324		3,501		3,624		3,670		14,119		3,638					3,638
Accretion on discounted liabilities	6		6		6		6		24		6					6
Interest and debt expense	70		69		68		68		275		68					68
Foreign currency transaction (gains) losses	2		(18	)	—		(24	)	(40	)	(19	)				(19	)
Total Costs and Expenses	40,216		42,445		43,990		42,632		169,283		39,801					39,801
Income from continuing operations before income taxes	2,058		1,453		804		1,211		5,526		1,298					1,298
Provision for income taxes	663		507		278		396		1,844		426					426
Income From Continuing Operations	1,395		946		526		815		3,682		872					872
Income from discontinued operations**	15		14		14		18		61		706					706
Net income	1,410		960		540		833		3,743		1,578					1,578
Less: net income attributable to noncontrolling interests	3		2		5		7		17		6					6
Net Income Attributable to Phillips 66	1,407		958		535		826		3,726		1,572					1,572
* Includes excise taxes on petroleum products sales:	3,258		3,428		3,568		3,612		13,866		3,522					3,522
** Net of provision for income taxes on discontinued operations:	8		7		8		11		34		5					5
Amounts Attributable to Phillips 66 Common Stockholders:
Income from continuing operations	1,392		944		521		808		3,665		866					866
Income from discontinued operations	15		14		14		18		61		706					706
Net Income Attributable to Phillips 66	1,407		958		535		826		3,726		1,572					1,572
Net Income Attributable to Phillips 66
Per Share of Common Stock (dollars)
Basic
Continuing operations	2.23		1.53		0.86		1.35		5.97		1.48					1.48
Discontinued operations	0.02		0.02		0.02		0.03		0.10		1.21					1.21
Net Income Attributable to Phillips 66
Per Share of Common Stock	2.25		1.55		0.88		1.38		6.07		2.69					2.69
Diluted
Continuing operations	2.21		1.51		0.85		1.34		5.92		1.47					1.47
Discontinued operations	0.02		0.02		0.02		0.03		0.10		1.20					1.20
Net Income Attributable to Phillips 66
Per Share of Common Stock	2.23		1.53		0.87		1.37		6.02		2.67					2.67
Average Common Shares Outstanding (in thousands)
Basic	625,030		619,143		608,934		598,553		612,918		584,053					584,053
Diluted	631,288		624,907		614,519		604,165		618,989		589,575					589,575
SUMMARY OF INCOME (LOSS) ATTRIBUTABLE TO PHILLIPS 66 BY SEGMENT
	Millions of Dollars
	2013										2014
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		1st Qtr		2nd Qtr	3rd Qtr	4th Qtr	YTD
Midstream	111		90		147		121		469		188					188
Chemicals	282		181		262		261		986		316					316
Refining	904		455		(30	)	418		1,747		306					306
Marketing and Specialties	190		344		255		105		894		137					137
Corporate and Other	(95	)	(126	)	(113	)	(97	)	(431	)	(81	)				(81	)
Discontinued Operations	15		14		14		18		61		706					706
Consolidated	1,407		958		535		826		3,726		1,572					1,572
SUMMARY OF INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES BY SEGMENT
	Millions of Dollars
	2013										2014
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		1st Qtr		2nd Qtr	3rd Qtr	4th Qtr	YTD
Midstream	177		141		239		193		750		302					302
Chemicals	403		232		367		359		1,361		442					442
Refining	1,371		735		(8	)	684		2,782		508					508
Marketing and Specialties	282		531		362		152		1,327		205					205
Corporate and Other	(175	)	(186	)	(156	)	(177	)	(694	)	(159	)				(159	)
Consolidated	2,058		1,453		804		1,211		5,526		1,298					1,298
EFFECTIVE TAX RATES ON INCOME FROM CONTINUING OPERATIONS
	2013										2014
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		1st Qtr		2nd Qtr	3rd Qtr	4th Qtr	YTD
Midstream	35.6	%	34.8	%	36.4	%	33.7	%	35.2	%	35.8	%				35.8	%
Chemicals	30.0	%	22.0	%	28.6	%	27.3	%	27.6	%	28.5	%				28.5	%
Refining	34.1	%	38.1	%	(275.0	)%	38.9	%	37.2	%	39.8	%				39.8	%
Marketing and Specialties	32.6	%	35.2	%	29.6	%	30.9	%	32.6	%	33.2	%				33.2	%
Corporate and Other	45.7	%	32.3	%	27.6	%	45.2	%	37.9	%	49.1	%				49.1	%
Consolidated	32.2	%	34.9	%	34.6	%	32.7	%	33.4	%	32.8	%				32.8	%
SUMMARY OF ADJUSTED NET INCOME (LOSS) ATTRIBUTABLE TO PHILLIPS 66 BY SEGMENT
	Millions of Dollars
	2013										2014
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		1st Qtr		2nd Qtr	3rd Qtr	4th Qtr	YTD
Midstream	111		90		147		121		469		188					188
Chemicals	282		181		262		261		986		316					316
Refining	891		455		(30	)	418		1,734		306					306
Marketing and Specialties	204		321		255		105		885		137					137
Corporate and Other	(95	)	(126	)	(113	)	(97	)	(431	)	(81	)				(81	)
Consolidated	1,393		921		521		808		3,643		866					866

Page 1

SPECIAL ITEMS INCLUDED IN NET INCOME ATTRIBUTABLE TO PHILLIPS 66
(AFTER-TAX)
	Millions of Dollars
	2013							2014
	1st Qtr		2nd Qtr	3rd Qtr	4th Qtr	YTD		1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Midstream	—		—	—	—	—		—				—
Chemicals	—		—	—	—	—		—				—
Refining
Tax law impacts	13		—	—	—	13		—				—
Total Refining	13		—	—	—	13		—				—
Marketing and Specialties
Gain on asset dispositions	—		23	—	—	23		—				—
Pending claims and settlements	16		—	—	—	16		—				—
Exit of a business line	(34	)	—	—	—	(34	)	—				—
Tax law impacts	4		—	—	—	4		—				—
Total Marketing and Specialties	(14	)	23	—	—	9		—				—
Corporate and Other	—		—	—	—	—		—				—
Discontinued Operations	15		14	14	18	61		706				706
Total Phillips 66	14		37	14	18	83		706				706
By Business Lines/Regions
Midstream
Transportation	—		—	—	—	—		—				—
DCP Midstream	—		—	—	—	—		—				—
NGL	—		—	—	—	—		—				—
Total Midstream	—		—	—	—	—		—				—
Refining
Atlantic Basin/Europe	7		—	—	—	7		—				—
Gulf Coast	—		—	—	—	—		—				—
Central Corridor	3		—	—	—	3		—				—
Western/Pacific	2		—	—	—	2		—				—
Other Refining	1		—	—	—	1		—				—
Total Refining	13		—	—	—	13		—				—
Marketing and Specialties
Marketing and Other	20		—	—	—	20		—				—
Specialties	(34	)	23	—	—	(11	)	—				—
Total Marketing and Specialties	(14	)	23	—	—	9		—				—
SPECIAL ITEMS INCLUDED IN INCOME FROM CONTINUING OPERATIONS
(PRE-TAX)
	Millions of Dollars
	2013							2014
	1st Qtr		2nd Qtr	3rd Qtr	4th Qtr	YTD		1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Midstream
Transportation	—		—	—	—	—		—				—
DCP Midstream	—		—	—	—	—		—				—
NGL	—		—	—	—	—		—				—
Total Midstream	—		—	—	—	—		—				—
Chemicals	—		—	—	—	—		—				—
Refining
Atlantic Basin/Europe	12		—	—	—	12		—				—
Gulf Coast	—		—	—	—	—		—				—
Central Corridor	5		—	—	—	5		—				—
Western/Pacific	3		—	—	—	3		—				—
Other Refining	2		—	—	—	2		—				—
Total Refining	22		—	—	—	22		—				—
Marketing and Specialties
Marketing and Other	31		—	—	—	31		—				—
Specialties	(54	)	40	—	—	(14	)	—				—
Total Marketing and Specialties	(23	)	40	—	—	17		—				—
Corporate and Other	—		—	—	—	—		—				—
Discontinued Operations	23		21	22	29	95		711				711
Total Phillips 66	22		61	22	29	134		711				711

Page 2

CASH FLOW INFORMATION
	Millions of Dollars
	2013										2014
	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	1,410		960		540		833		3,743		1,578					1,578
Depreciation and amortization	242		229		233		243		947		234					234
Impairments	24		1		1		3		29		1					1
Accretion on discounted liabilities	6		6		6		6		24		6					6
Deferred taxes	82		80		120		312		594		(444	)				(444	)
Undistributed equity earnings	77		(98	)	(55	)	(278	)	(354	)	632					632
Net gain on dispositions	(1	)	(41	)	(8	)	(5	)	(55	)	(7	)				(7	)
Income from discontinued operations	(15	)	(14	)	(14	)	(18	)	(61	)	(706	)				(706	)
Other	(34	)	35		33		161		195		(21	)				(21	)
Net working capital changes	400		(204	)	1,076		(392	)	880		123					123
Net cash provided by continuing operating activities	2,191		954		1,932		865		5,942		1,396					1,396
Net cash provided by discontinued operations	22		14		17		32		85		2					2
Net Cash Provided by Operating Activities	2,213		968		1,949		897		6,027		1,398					1,398
Cash Flows From Investing Activities
Capital expenditures and investments	(382	)	(366	)	(408	)	(623	)	(1,779	)	(572	)				(572	)
Proceeds from asset dispositions*	9		60		1,119		26		1,214		507					507
Advances/loans—related parties	—		—		(65	)	—		(65	)	—					—
Collection of advances/loans—related parties	55		45		—		65		165		—					—
Other	—		—		—		48		48		13					13
Net cash provided by (used in) continuing investing activities	(318	)	(261	)	646		(484	)	(417	)	(52	)				(52	)
Net cash used in discontinued operations	(5	)	(5	)	(4	)	(13	)	(27	)	(34	)				(34	)
Net Cash Provided by (Used in) Investing Activities	(323	)	(266	)	642		(497	)	(444	)	(86	)				(86	)
Cash Flows From Financing Activities
Repayment of debt	(3	)	(502	)	(510	)	(5	)	(1,020	)	(8	)				(8	)
Issuance of common stock	(6	)	3		(1	)	10		6		(20	)				(20	)
Repurchase of common stock	(382	)	(546	)	(674	)	(644	)	(2,246	)	(640	)				(640	)
Share exchange—PSPI transaction	—		—		—		—		—		(450	)				(450	)
Dividends paid on common stock	(194	)	(192	)	(189	)	(232	)	(807	)	(229	)				(229	)
Distributions to noncontrolling interests	—		(1	)	—		(9	)	(10	)	(4	)				(4	)
Net proceeds from issuance of Phillips 66 Partners LP common units	—		—		404		—		404		—					—
Other	—		(3	)	(1	)	(2	)	(6	)	(4	)				(4	)
Net cash used in continuing financing activities	(585	)	(1,241	)	(971	)	(882	)	(3,679	)	(1,355	)				(1,355	)
Net cash provided by (used in) discontinued operations	—		—		—		—		—		—					—
Net Cash Used in Financing Activities	(585	)	(1,241	)	(971	)	(882	)	(3,679	)	(1,355	)				(1,355	)
Effect of Exchange Rate Changes on Cash and Cash Equivalents	(26	)	6		102		(60	)	22		(31	)				(31	)
Net Change in Cash and Cash Equivalents	1,279		(533	)	1,722		(542	)	1,926		(74	)				(74	)
Cash and cash equivalents at beginning of period	3,474		4,753		4,220		5,942		3,474		5,400					5,400
Cash and Cash Equivalents at End of Period	4,753		4,220		5,942		5,400		5,400		5,326					5,326
* Includes return of investments in equity affiliates.
CAPITAL PROGRAM
	Millions of Dollars
	2013										2014
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		1st Qtr		2nd Qtr	3rd Qtr	4th Qtr	YTD
Consolidated Capital Expenditures and Investments
Midstream	115		131		131		220		597		288					288
Chemicals	—		—		—		—		—		—					—
Refining	131		151		229		309		820		186					186
Marketing and Specialties	97		42		41		46		226		84					84
Corporate and Other	39		42		7		48		136		14					14
Total Consolidated from Continuing Operations	382		366		408		623		1,779		572					572
Discontinued Operations	5		5		4		13		27		—					—
Proportional Share of Select Equity Affiliates   Capital Expenditures and Investments*
DCP Midstream (Midstream)	274		268		218		211		971		178					178
CPChem (Chemicals)**	106		142		172		193		613		155					155
WRB Refining (Refining)	29		30		19		31		109		23					23
Select Equity Affiliates	409		440		409		435		1,693		356					356
Total Capital Program*
Midstream	389		399		349		431		1,568		466					466
Chemicals	106		142		172		193		613		155					155
Refining	160		181		248		340		929		209					209
Marketing and Specialties	97		42		41		46		226		84					84
Corporate and Other	39		42		7		48		136		14					14
Discontinued Operations	5		5		4		13		27		—					—
Total Capital Program	796		811		821		1,071		3,499		928					928
* 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.
** 2013 capital expenditures and investments have been recast to reflect a change in CPChem’s basis of presentation.

Page 3

MIDSTREAM
	2013					2014
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Midstream Net Income Attributable    to Phillips 66 ($ Millions)
Transportation	45	50	54	50	199	62				62
DCP Midstream	56	30	87	37	210	83				83
NGL	10	10	6	34	60	43				43
Midstream Net Income Attributable
to Phillips 66	111	90	147	121	469	188				188
Midstream Income before Income Taxes ($ Millions)
Transportation	75	80	87	83	325	101				101
DCP Midstream	87	46	136	63	332	130				130
NGL	15	15	16	47	93	71				71
Midstream Income before Income Taxes	177	141	239	193	750	302				302
Midstream Adjusted EBITDA	244	213	322	288	1,067	384				384
Depreciation and Amortization ($ Millions)
Transportation	18	19	19	30	86	19				19
DCP Midstream	—	—	—	—	—	—				—
NGL	1	—	—	1	2	—				—
Total	19	19	19	31	88	19				19
Operating and SG&A Expense ($ Millions)
Transportation	93	102	110	103	408	96				96
DCP Midstream	—	—	—	2	2	—				—
NGL	17	25	15	21	78	17				17
Total	110	127	125	126	488	113				113
Transportation Volumes (MB/D)
Pipelines*	3,032	3,170	3,222	3,150	3,144	3,101				3,101
Terminals	1,041	1,194	1,419	1,435	1,274	1,477				1,477
* 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.
PSX Other Volumes
NGL Fractionated (MB/D)*	117	113	123	109	115	112				112
* Excludes DCP Midstream.
100% DCP Midstream Results
Net Income Attributable, excludes parent company income tax related to DCP's earnings ($ Millions)	91	78	191	131	491	165				165
Depreciation and Amortization ($ Millions)	69	76	82	87	314	85				85
Operating and SG&A Expense ($ Millions)	228	236	223	262	949	243				243
Net Interest Expense ($ Millions)*	50	52	75	72	249	72				72
* Net of interest income.
Capex and Investments ($ Millions)	547	537	435	422	1,941	355				355
Selected DCP Volumes and Gross Margin
by Major Contract Type (excludes current quarter)
Percentage of Proceeds (long NGL / long Gas)*
Volume (TBtu/d)	4.8	5.0	5.3	5.2	5.1	**				**
Gross Margin ($ Millions)	185	220	230	240	875	**				**
Keep-whole (long NGL / short Gas)*
Volume (TBtu/d)	0.6	0.6	0.6	0.6	0.6	**				**
Gross Margin ($ Millions)	45	35	45	45	170	**				**
Fee-based Gas (primarily gathering and transport)*
Volume (TBtu/d)	4.5	4.7	4.7	4.6	4.6	**				**
Gross Margin ($ Millions)	65	75	75	90	305	**				**
Fee-based NGL Transport and Fractionation
Volume (MB/d)	202	201	209	220	208	**				**
Gross Margin ($ Millions)	19	19	25	23	86	**				**
Other Gross Margin***
Gross Margin ($ Millions)	153	160	186	172	671	**				**
Total Throughput (TBtu/d)	6.9	7.1	7.4	7.2	7.1	7.2				7.2
NGL Production (MB/d)	396	412	442	452	426	445				445
* 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 ($/BBL)	37.45	34.58	37.84	41.48	37.84	44.52				44.52
DCP Midstream ($/gal)	0.89	0.82	0.90	0.99	0.90	1.06				1.06
* Based on index prices from the Mont Belvieu and Conway market hubs that are weighted by NGL component and location mix. 2013 weighted average NGL prices have been recast to reflect the impact of ethane rejection.

Page 4

CHEMICALS
	2013										2014
	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)	282		181		262		261		986		316					316
Chemicals Adjusted EBITDA	482		320		454		454		1,710		534					534
100% CPChem Results
Net Income (Loss), excludes parent company income     tax related to CPChem's earnings ($ Millions)
Olefins and Polyolefins	726		411		677		746		2,560		801					801
Specialties, Aromatics and Styrenics	56		73		72		—		201		97					97
Corporate and Other	29		(14	)	(11	)	(22	)	(18	)	(8	)				(8	)
Total	811		470		738		724		2,743		890					890
Income (Loss) before Income Taxes ($ Millions)*
Olefins and Polyolefins	736		421		688		756		2,601		815					815
Specialties, Aromatics and Styrenics	60		83		81		10		234		105					105
Corporate and Other	30		(14	)	(11	)	(22	)	(17	)	(8	)				(8	)
Total	826		490		758		744		2,818		912					912
* Excludes CPChem discontinued operations.
Depreciation and Amortization ($ Millions)	64		66		66		82		278		69					69
Net Interest Expense ($ Millions)*	(1	)	—		(1	)	(1	)	(3	)	—					—
* Net of interest income.
Investing Cash Flows ($ Millions)
Capital Expenditures and Investments	211		284		345		385		1,225		310					310
Advances to Equity Companies	45		19		5		98		167		5					5
Advance Repayments from Equity Companies	(43	)	(12	)	—		—		(55	)	—					—
Externally Marketed Sales Volumes (MM Lbs)
Olefins and Polyolefins	4,036		3,862		3,927		4,246		16,071		4,302					4,302
Specialties, Aromatics and Styrenics	1,496		1,485		1,577		1,672		6,230		1,569					1,569
Total	5,532		5,347		5,504		5,918		22,301		5,871					5,871
* 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 (%)	91	%	78	%	87	%	95	%	88	%	93	%				93	%
Market Indicators
U.S. Industry Prices*
Ethylene, Net Transaction Price (cents/lb)	48.00		46.33		45.83		46.50		46.67		48.25					48.25
HDPE Blow Molding (cents/lb)	91.67		93.67		96.67		100.00		95.50		102.67					102.67
U.S. Industry Costs*
Ethylene, Cash Cost Weighted Average Feed (cents/lb)	13.80		15.66		16.47		18.60		16.13		19.84					19.84
HDPE, Total Cash Cost (cents/lb)	69.26		65.55		63.71		64.52		65.76		67.04					67.04
* Released by IHS. Reflect the IHS analysis of historical market indicators.

Page 5

REFINING
	2013										2014
	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	95		24		47		(139	)	27		16					16
Gulf Coast	35		(82	)	(79	)	185		59		77					77
Central Corridor	588		395		119		379		1,481		222					222
Western/Pacific	63		33		(94	)	42		44		(47	)				(47	)
Other Refining	123		85		(23	)	(49	)	136		38					38
Refining Net Income (Loss) Attributable
to Phillips 66	904		455		(30	)	418		1,747		306					306
Refining Income (Loss) before Income Taxes ($ Millions)
Atlantic Basin/Europe	136		41		59		(191	)	45		34					34
Gulf Coast	43		(109	)	(118	)	282		98		122					122
Central Corridor	923		626		193		589		2,331		359					359
Western/Pacific	95		59		(123	)	74		105		(63	)				(63	)
Other Refining	174		118		(19	)	(70	)	203		56					56
Refining Income (Loss) before Income Taxes	1,371		735		(8	)	684		2,782		508					508
Refining Adjusted EBITDA	1,560		937		199		887		3,583		722					722
Realized Refining Margins ($/BBL)*
Atlantic Basin/Europe	8.61		6.83		6.59		5.12		6.87		7.46					7.46
Gulf Coast	8.08		3.89		3.35		9.12		6.04		8.64					8.64
Central Corridor	27.29		19.45		9.80		18.50		18.62		15.21					15.21
Western/Pacific	9.64		8.80		4.77		9.51		8.20		7.02					7.02
Worldwide	13.78		9.70		5.94		10.50		9.90		9.88					9.88
* Based on total processed inputs and includes proportional share of refining margins contributed by certain equity affiliates.
Depreciation and Amortization ($ Millions)*
Atlantic Basin/Europe	42		43		43		42		170		46					46
Gulf Coast	52		54		50		50		206		49					49
Central Corridor	27		22		21		23		93		23					23
Western/Pacific	53		50		51		52		206		51					51
Other Refining	3		(1	)	5		3		10		3					3
Total	177		168		170		170		685		172					172
* Excludes D&A of all equity affiliates.
Operating and SG&A Expense ($ Millions)*
Atlantic Basin/Europe	262		279		238		354		1,133		274					274
Gulf Coast	330		297		309		326		1,262		363					363
Central Corridor	98		98		114		116		426		113					113
Western/Pacific	185		200		199		222		806		227					227
Other Refining	26		40		35		85		186		27					27
Total	901		914		895		1,103		3,813		1,004					1,004
* Excludes Operating and SG&A Expense of all equity affiliates.
Turnaround Expense ($ Millions), included in
Operating and SG&A Expense*
Atlantic Basin/Europe	12		35		15		108		170		23					23
Gulf Coast	64		12		18		28		122		75					75
Central Corridor	6		4		16		11		37		5					5
Western/Pacific	4		11		7		12		34		22					22
Total	86		62		56		159		363		125					125
* Excludes Turnaround Expense of all equity affiliates.
Taxes Other than Income Taxes, excluding Excise Taxes    ($ Millions)
Atlantic Basin/Europe	18		15		14		15		62		17					17
Gulf Coast	22		19		14		14		69		23					23
Central Corridor	9		9		8		8		34		10					10
Western/Pacific	27		26		26		26		105		29					29
Other Refining	(3	)	(4	)	(3	)	1		(9	)	3					3
Total	73		65		59		64		261		82					82
Foreign Currency Gains (Losses) After-Tax ($ Millions)	16		9		(2	)	18		41		14					14
Refining—Equity Affiliate Information ($ Millions)
Equity in earnings of affiliates	503		274		69		261		1,107		150					150
Less: Share of equity affiliate gross margin included in Realized Refining Margin and other equity affiliate-related costs*	(691	)	(428	)	(221	)	(387	)	(1,727	)	(352	)				(352	)
Equity-affiliate-related expenses not included in Realized Refining Margins	(188	)	(154	)	(152	)	(126	)	(620	)	(202	)				(202	)
Regional Totals
Gulf Coast	(21	)	1		19		34		33		11					11
Central Corridor	(121	)	(112	)	(110	)	(115	)	(458	)	(167	)				(167	)
Other Regions**	(46	)	(43	)	(61	)	(45	)	(195	)	(46	)				(46	)
Total	(188	)	(154	)	(152	)	(126	)	(620	)	(202	)				(202	)
* 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)
	2013										2014
	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)	571		555		574		483		546		551					551
Total Charge Input (MB/D)	614		597		606		489		576		585					585
Crude Oil Capacity Utilization (%)	97	%	94	%	98	%	82	%	93	%	94	%				94	%
Clean Product Yield (%)	85	%	84	%	84	%	79	%	83	%	84	%				84	%
* Includes our proportionate share of a refinery complex in Karlsruhe, Germany.
Gulf Coast
Crude Oil Charge Input (MB/D)	584		664		671		682		651		613					613
Total Charge Input (MB/D)	643		741		767		762		729		705					705
Crude Oil Capacity Utilization (%)	80	%	91	%	92	%	93	%	89	%	84	%				84	%
Clean Product Yield (%)	81	%	83	%	82	%	82	%	82	%	81	%				81	%
Central Corridor*
Crude Oil Charge Input (MB/D)	457		474		480		479		472		466					466
Total Charge Input (MB/D)	473		488		495		494		488		481					481
Crude Oil Capacity Utilization (%)	96	%	100	%	101	%	100	%	99	%	96	%				96	%
Clean Product Yield (%)	87	%	86	%	88	%	88	%	87	%	88	%				88	%
* Includes our proportionate share of the Borger Refinery and Wood River Refinery.
Western/Pacific*
Crude Oil Charge Input (MB/D)	401		417		403		419		410		395					395
Total Charge Input (MB/D)	441		448		430		450		442		427					427
Crude Oil Capacity Utilization (%)	91	%	95	%	91	%	95	%	93	%	90	%				90	%
Clean Product Yield (%)	83	%	86	%	84	%	85	%	85	%	84	%				84	%
* Includes our proportionate share of a refinery in Melaka, Malaysia.
Worldwide—Including Proportionate Share of Equity Affiliates
Crude Oil Charge Input (MB/D)	2,013		2,110		2,128		2,063		2,079		2,025					2,025
Total Charge Input (MB/D)	2,171		2,274		2,298		2,195		2,235		2,198					2,198
Crude Oil Capacity Utilization (%)	90	%	94	%	95	%	92	%	93	%	90	%				90	%
Clean Product Yield (%)	84	%	85	%	84	%	84	%	84	%	84	%				84	%
Refined Products Production (MB/D)
Atlantic Basin/Europe*
Gasoline	240		239		241		175		224		231					231
Distillates	264		249		252		204		242		245					245
Other	114		110		116		107		112		112					112
Total	618		598		609		486		578		588					588
* Includes our proportionate share of a refinery complex in Karlsruhe, Germany.
Gulf Coast
Gasoline	252		292		304		293		285		276					276
Distillates	247		292		295		297		283		270					270
Other	147		164		175		184		168		171					171
Total	646		748		774		774		736		717					717
Central Corridor*
Gasoline	242		242		257		254		249		247					247
Distillates	168		175		174		179		174		173					173
Other	65		71		66		63		66		63					63
Total	475		488		497		496		489		483					483
* Includes our proportionate share of the Borger Refinery and Wood River Refinery.
Western/Pacific*
Gasoline	188		198		188		191		191		181					181
Distillates	177		189		173		193		183		179					179
Other	80		65		71		69		71		69					69
Total	445		452		432		453		445		429					429
* Includes our proportionate share of a refinery in Melaka, Malaysia.
Worldwide—Including Proportionate Share of Equity Affiliates
Gasoline	922		971		990		913		949		935					935
Distillates	856		905		894		873		882		867					867
Other	406		410		428		423		417		415					415
Total	2,184		2,286		2,312		2,209		2,248		2,217					2,217
Market Indicators
Crude and Crude Differentials ($/BBL)
WTI	94.29		94.12		105.80		97.38		97.90		98.75					98.75
Brent	112.55		102.44		110.36		109.27		108.66		108.22					108.22
LLS	113.92		104.63		109.89		100.94		107.34		104.43					104.43
ANS	111.02		104.52		110.52		104.67		107.68		105.74					105.74
WTI less Maya	(8.54	)	(3.55	)	6.47		8.12		0.63		9.41					9.41
WTI less WCS	27.02		16.71		23.07		31.23		24.51		20.83					20.83
Natural Gas ($/MCF)
Henry Hub	3.48		4.01		3.55		3.84		3.72		5.08					5.08
Product Margins ($/BBL)
Atlantic Basin/Europe
East Coast Gasoline less Brent	9.70		14.83		13.05		2.95		10.13		5.12					5.12
East Coast Distillate less Brent	18.78		19.09		17.43		16.35		17.91		22.28					22.28
Gulf Coast
Gulf Coast Gasoline less LLS	3.41		9.14		5.86		2.89		5.33		5.25					5.25
Gulf Coast Distillate less LLS	15.67		15.52		16.66		21.48		17.33		18.63					18.63
Central Corridor
Central Gasoline less WTI	24.04		26.18		14.55		3.23		17.00		13.15					13.15
Central Distillate less WTI	35.72		29.35		22.95		25.52		28.39		25.94					25.94
Western/Pacific
West Coast Gasoline less ANS	18.34		20.59		12.39		8.71		15.01		11.75					11.75
West Coast Distillate less ANS	20.67		16.84		18.42		19.60		18.89		17.55					17.55
Worldwide Market Crack Spread ($/BBL)*	15.50		17.56		13.44		9.62		14.03		12.44					12.44
* Weighted average based on Phillips 66 crude capacity.

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MARKETING AND SPECIALTIES
	2013					2014
	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	177	258	199	54	688	93				93
Specialties	13	86	56	51	206	44				44
Marketing and Specialties Net Income Attributable
to Phillips 66	190	344	255	105	894	137				137
Marketing and Specialties Income before    Income Taxes ($ Millions)
Marketing and Other	259	391	273	71	994	135				135
Specialties	23	140	89	81	333	70				70
Marketing and Specialties Income before
Income Taxes	282	531	362	152	1,327	205				205
Marketing and Specialties Adjusted EBITDA	338	516	384	175	1,413	226				226
Realized Marketing Fuel Margin ($/BBL)*
U.S.	1.02	1.77	1.25	0.74	1.21	1.19				1.19
International	3.16	4.93	5.55	3.76	4.36	3.72				3.72
* On third-party petroleum products sales.
Realized Margins not included in Marketing Fuel Margin
($ Millions)*
Marketing and Other	210	184	141	121	656	139				139
Specialties	83	135	112	113	443	106				106
Total	293	319	253	234	1,099	245				245
* Excludes Gain on Dispositions and Excise Tax Income.
Depreciation and Amortization ($ Millions)
Marketing and Other	30	23	21	21	95	20				20
Specialties	3	2	1	2	8	1				1
Total	33	25	22	23	103	21				21
Operating and SG&A Expense ($ Millions)
Marketing and Other	189	231	220	271	911	274				274
Specialties	35	32	29	31	127	32				32
Total	224	263	249	302	1,038	306				306
Marketing Petroleum Products Sales (MB/D)
U.S. Marketing
Gasoline	1,016	1,138	1,111	1,059	1,081	1,030				1,030
Distillates	763	817	761	759	775	748				748
Other	—	—	—	—	—	—				—
Total	1,779	1,955	1,872	1,818	1,856	1,778				1,778
International Marketing
Gasoline	89	95	95	92	93	89				89
Distillates	193	190	190	192	192	196				196
Other	16	18	18	17	17	16				16
Total	298	303	303	301	302	301				301
Worldwide Marketing
Gasoline	1,105	1,233	1,206	1,151	1,174	1,119				1,119
Distillates	956	1,007	951	951	967	944				944
Other	16	18	18	17	17	16				16
Total	2,077	2,258	2,175	2,119	2,158	2,079				2,079
Foreign Currency Gains (Losses) After-Tax ($ Millions)	3	1	1	—	5	—				—

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CORPORATE AND OTHER
	2013										2014
	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)	(95	)	(126	)	(113	)	(97	)	(431	)	(81	)				(81	)
Detail of Net Income (Loss) Attributable
to Phillips 66 ($ Millions)
Net interest expense	(43	)	(42	)	(41	)	(40	)	(166	)	(41	)				(41	)
Corporate overhead	(34	)	(36	)	(32	)	(43	)	(145	)	(40	)				(40	)
Technology	(12	)	(12	)	(12	)	(14	)	(50	)	(13	)				(13	)
Other	(6	)	(36	)	(28	)	—		(70	)	13					13
Total	(95	)	(126	)	(113	)	(97	)	(431	)	(81	)				(81	)
Before-Tax Net Interest Expense ($ Millions)
Interest expense	(70	)	(69	)	(68	)	(68	)	(275	)	(69	)				(69	)
Capitalized interest	—		—		—		—		—		1					1
Interest revenue	5		4		5		6		20		5					5
Premium on early debt retirement	—		(1	)	(2	)	—		(3	)	—					—
Total	(65	)	(66	)	(65	)	(62	)	(258	)	(63	)				(63	)
Foreign Currency Gains (Losses) After-Tax ($ Millions)	(1	)	—		(1	)	—		(2	)	—					—
Phillips 66 Total Company Debt
Total Debt ($ Millions)	6,971		6,469		6,156		6,155		6,155		6,217					6,217
Debt-to-Capital Ratio (%)	25	%	23	%	22	%	22	%	22	%	22	%				22	%
Total Equity ($ Millions)	21,378		21,690		21,994		22,392		22,392		21,829					21,829

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NON-GAAP FINANCIAL MEASURES RECONCILIATION
	Millions of Dollars
	2013										2014
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		1st Qtr		2nd Qtr	3rd Qtr	4th Qtr	YTD
Reconciliation of Midstream Adjusted EBITDA to Net Income
Midstream Net Income Attributable to Phillips 66	111		90		147		121		469		188					188
Plus:
Net income attributable to noncontrolling interests	3		2		5		7		17		6					6
Provision for income taxes	63		49		87		65		264		108					108
Depreciation and amortization	19		19		19		31		88		19					19
Midstream EBITDA	196		160		258		224		838		321					321
Adjustments (pre-tax):
EBITDA attributable to Phillips 66 noncontrolling interests	(5	)	(4	)	(7	)	(8	)	(24	)	(8	)				(8	)
Proportional share of select equity affiliates income taxes	—		2		1		1		4		2					2
Proportional share of select equity affiliates net interest	22		22		33		33		110		30					30
Proportional share of select equity affiliates depreciation and amortization	31		33		37		38		139		39					39
Midstream Adjusted EBITDA*	244		213		322		288		1,067		384					384
* Proportional share of select equity affiliates is net of noncontrolling interests.
Reconciliation of Chemicals Adjusted EBITDA to Net Income
Chemicals Net Income	282		181		262		261		986		316					316
Plus:
Provision for income taxes	121		51		105		98		375		126					126
Chemicals EBITDA	403		232		367		359		1,361		442					442
Adjustments (pre-tax):
Proportional share of equity affiliates income taxes	19		25		25		24		93		27					27
Proportional share of equity affiliates net interest	2		3		2		3		10		3					3
Proportional share of equity affiliates depreciation and amortization	58		60		60		68		246		62					62
Chemicals Adjusted EBITDA	482		320		454		454		1,710		534					534
Reconciliation of Refining Adjusted EBITDA to Net Income
Refining Net Income (Loss)	904		455		(30	)	418		1,747		306					306
Plus:
Provision for income taxes	467		280		22		266		1,035		202					202
Depreciation and amortization	177		168		170		170		685		172					172
Refining EBITDA	1,548		903		162		854		3,467		680					680
Adjustments (pre-tax):
Proportional share of select equity affiliates income taxes	2		1		—		(7	)	(4	)	—					—
Proportional share of select equity affiliates net interest	(26	)	(24	)	(23	)	(22	)	(95	)	(19	)				(19	)
Proportional share of select equity affiliates depreciation and amortization	58		57		60		62		237		61					61
Tax law impacts	(22	)	—		—		—		(22	)	—					—
Refining Adjusted EBITDA	1,560		937		199		887		3,583		722					722
Reconciliation of Marketing and Specialties Adjusted EBITDA to Net Income
Marketing and Specialties Net Income	190		344		255		105		894		137					137
Plus:
Provision for income taxes	92		187		107		47		433		68					68
Depreciation and amortization	33		25		22		23		103		21					21
Marketing and Specialties EBITDA	315		556		384		175		1,430		226					226
Adjustments (pre-tax):
Gain on asset dispositions	—		(40	)	—		—		(40	)	—					—
Pending claims and settlements	(25	)	—		—		—		(25	)	—					—
Exit of a business line	54		—		—		—		54		—					—
Tax law impacts	(6	)	—		—		—		(6	)	—					—
Marketing and Specialties Adjusted EBITDA	338		516		384		175		1,413		226					226
Reconciliation of Phillips 66 Adjusted EBITDA to Net Income
Net Income Attributable to Phillips 66	1,407		958		535		826		3,726		1,572					1,572
Less:
Income from discontinued operations	15		14		14		18		61		706					706
Plus:
Net income attributable to noncontrolling interests	3		2		5		7		17		6					6
Income taxes	663		507		278		396		1,844		426					426
Net interest expense	65		66		65		62		258		63					63
Depreciation and amortization	242		229		233		243		947		234					234
Phillips 66 EBITDA	2,365		1,748		1,102		1,516		6,731		1,595					1,595
Adjustments (pre-tax):
EBITDA attributable to Phillips 66 noncontrolling interests	(5	)	(4	)	(7	)	(8	)	(24	)	(8	)				(8	)
Proportional share of select equity affiliates income taxes	21		28		26		18		93		29					29
Proportional share of select equity affiliates net interest	(2	)	1		12		14		25		14					14
Proportional share of select equity affiliates depreciation and amortization	147		150		157		168		622		162					162
Gain on asset dispositions	—		(40	)	—		—		(40	)	—					—
Exit of business line	54		—		—		—		54		—					—
Tax law impacts	(28	)	—		—		—		(28	)	—					—
Pending claims and settlements	(25	)	—		—		—		(25	)	—					—
Phillips 66 Adjusted EBITDA	2,527		1,883		1,290		1,708		7,408		1,792					1,792
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.
Note: Certain 2013 financial and operating information in this report has been recast to reflect realignment of specific businesses between segments and business lines.

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