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): January 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 January 29, 2016, Phillips 66 issued a press release announcing the company's financial and operating results for the quarter ended December 31, 2015. A copy of the press release is furnished as Exhibit 99.1 hereto and incorporated herein by reference. Additional financial and operating information about the quarter is furnished as Exhibit 99.2 hereto and incorporated herein by reference.

The information in this report and the exhibits hereto shall not be treated as filed for purposes of the Securities Exchange Act of 1934, as amended.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

99.1	—	Press release issued by Phillips 66 on January 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
January 29, 2016

3

EXHIBIT INDEX

Exhibit
No.	Description

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

99.2 Supplemental financial and operating information.

4

EX-99.1

Phillips 66 Reports Fourth-Quarter Earnings of $650 Million (Adjusted Earnings of $710 Million)

Exhibit 99.1

Phillips 66 Reports Fourth-Quarter Earnings of $650 Million

or $1.20 Per Share

Adjusted earnings of $710 million or $1.31 per share

Highlights

Fourth Quarter

• Generated $1.5 billion in cash from operations

• Refining achieved 94 percent utilization and record 85 percent clean product yield

• Sweeny Fractionator One and Clemens Caverns commenced operations

Full-Year 2015

• Earnings of $4.2 billion; operating cash flow of $5.7 billion

• Refining generated $2.6 billion of earnings

• Chemicals delivered $962 million in earnings amid declining commodity prices

• Received $1.5 billion from Phillips 66 Partners debt and equity offerings

• Capital spending of $4.3 billion, excluding $1.5 billion DCP Midstream contribution

• Midstream growth capital of $2.8 billion

• Increased quarterly dividend 12 percent to $0.56 per common share

• Returned $2.7 billion of capital to shareholders through dividends and share repurchases

HOUSTON, Jan. 29, 2016 — Phillips 66 (NYSE: PSX), an energy manufacturing and logistics company, announces fourth-quarter earnings of $650 million, compared with earnings of $1,578 million in the third quarter of 2015. Adjusted earnings, excluding special items of $60 million, were $710 million.

“We operated well in the quarter, as refining capacity utilization remained high and clean product yield increased," said Greg Garland, Chairman and CEO. "We also reached a significant milestone with the Sweeny Fractionator One and Clemens Caverns coming online. Solid execution in the fourth quarter generated $1.5 billion of cash from operations, and we returned over $700 million to shareholders through dividends and share repurchases."

"Our financial performance in 2015 demonstrates the resiliency of our diversified portfolio in a low commodity price environment. We create value by focusing on operating excellence, enhancing Refining returns, and delivering on our Midstream and Chemicals growth programs. Our balance sheet is strong, and we maintain a disciplined approach to capital allocation. We remain firmly focused on these core priorities in 2016."

Page 1

Phillips 66 Reports Fourth-Quarter Earnings of $650 Million (Adjusted Earnings of $710 Million)

Midstream

	Millions of Dollars
	2015
	Earnings					Adjusted Earnings
	Q4			Q3		Q4		Q3
Transportation	$	81		77		78		77
NGL	1			26		(2	)	32
DCP Midstream	(159		)	(2	)	(34	)	(18	)
Midstream	$	(77	)	101		42		91

Phillips 66's Midstream fourth-quarter adjusted earnings were $42 million, a decrease of $49 million from the third quarter.

Phillips 66’s Transportation business generated adjusted earnings of $78 million during the fourth quarter, consistent with the third quarter.

NGL adjusted losses were $2 million for the fourth quarter. The $34 million decrease from the prior quarter was largely driven by the timing of adjustments related to the tax extenders bill, signed in December, as well as additional costs associated with the Sweeny Hub.

Phillips 66 Partners (PSXP) contributed $37 million to the Midstream segment's fourth-quarter earnings. PSXP's limited partner distribution increased to $0.458 per unit, a 7 percent increase from the third quarter. Distributions to Phillips 66 from PSXP increased 14 percent in the fourth quarter, compared with the prior quarter, reflecting the impact of incentive distribution rights.

For the fourth quarter of 2015, the company’s equity investment in DCP Midstream, LLC (DCP Midstream) had an adjusted loss of $34 million, compared with an $18 million adjusted loss in the prior quarter. DCP Midstream's lower results were primarily due to lower natural gas and natural gas liquids marketing margins, as well as the impact of lower commodity prices.

During the fourth quarter, DCP Midstream recognized asset impairments primarily as a result of the continuing low commodity price environment. The impairments negatively impacted earnings from Phillips 66’s equity investment in DCP Midstream by $104 million after-tax, and were excluded from adjusted earnings.

Chemicals

	Millions of Dollars
	2015
	Earnings				Adjusted Earnings
	Q4		Q3		Q4		Q3
Olefins and Polyolefins (O&P)	$	181	261		181		261
Specialties, Aromatics and Styrenics (SA&S)	5		(3	)	9		17
Other	26		(6	)	(8	)	(6	)
Chemicals	$	212	252		182		272

Page 2

Phillips 66 Reports Fourth-Quarter Earnings of $650 Million (Adjusted Earnings of $710 Million)

The Chemicals segment reflects Phillips 66's equity investment in Chevron Phillips Chemical Company LLC (CPChem). Fourth-quarter Chemicals adjusted earnings were $182 million, compared with adjusted earnings of $272 million in the third quarter.

During the fourth quarter, CPChem's Olefins and Polyolefins business contributed $181 million to Phillips 66's Chemicals earnings. This was a decrease of $80 million compared with the prior quarter largely due to reduced margins, as well as decreased equity earnings. Turnaround and maintenance activity in the fourth quarter increased operating costs and decreased global utilization for O&P to 92 percent compared with 94 percent in the third quarter.

CPChem's Specialties, Aromatics and Styrenics business contributed $9 million of adjusted earnings in the fourth quarter, a decrease of $8 million from the prior quarter primarily due to lower earnings at CPChem's SA&S equity affiliates as a result of planned turnarounds and lower margins.

Chemicals earnings for the fourth quarter were positively impacted by a $34 million tax adjustment. This item was excluded from adjusted earnings.

Refining

	Millions of Dollars
	2015
	Earnings			Adjusted Earnings
	Q4		Q3	Q4	Q3
Refining	$	410	1,003	376	1,052

Refining adjusted earnings were $376 million in the fourth quarter, compared with $1,052 million in the third quarter.

The decrease in earnings was largely driven by lower realized margins due to a 35 percent decline in global market cracks compared to the third quarter. Fourth-quarter gasoline market cracks dropped to $12.72 per barrel, compared with $21.44 per barrel during the third quarter, while distillate cracks declined from $15.67 per barrel to $12.86 per barrel for the same period.

Market capture increased to 74 percent, compared with 72 percent in the prior quarter. Phillips 66's refining utilization and worldwide clean product yield were 94 percent and 85 percent, respectively, in the fourth quarter. Turnaround costs for the fourth quarter were $130 million pre-tax, primarily relating to the Western/Pacific Region.

Refining's earnings in the fourth quarter were impacted by certain tax impacts, including a $91 million benefit resulting from a change in German tax law. Additionally, the WRB joint venture recognized a lower-of-cost-or-market inventory adjustment resulting from declining commodity prices, which negatively impacted earnings from Phillips 66’s equity investment in WRB Refining LP by $33 million after-tax. These items were excluded from adjusted earnings.

Page 3

Phillips 66 Reports Fourth-Quarter Earnings of $650 Million (Adjusted Earnings of $710 Million)

Marketing and Specialties

	Millions of Dollars
	2015
	Earnings			Adjusted Earnings
	Q4		Q3	Q4	Q3
Marketing and Other	$	199	285	198	291
Specialties	32		53	29	53
Marketing and Specialties	$	231	338	227	344

Marketing and Specialties (M&S) fourth-quarter adjusted earnings were $227 million, compared with $344 million in the third quarter.

Adjusted earnings for Marketing and Other were $198 million, a decrease of $93 million from the prior quarter. The decrease in earnings was largely due to lower realized margins driven by less favorable market conditions relative to the third quarter. Refined product exports in the fourth quarter were 127,000 barrels per day (BPD), compared with 118,000 BPD in the prior quarter.

Phillips 66’s Specialties businesses generated adjusted earnings of $29 million during the fourth quarter. The $24 million decrease from the prior quarter was mainly due to reduced base oil margins, as well as lower finished lubricants margins and volumes.

Corporate and Other

	Millions of Dollars
	2015
	Earnings					Adjusted Earnings
	Q4			Q3		Q4		Q3
Corporate and Other	$	(126	)	(116	)	(117	)	(112	)

Corporate and Other adjusted costs were $117 million after-tax in the fourth quarter, an increase of $5 million compared with the prior quarter.

Financial Position, Liquidity and Return of Capital

During the fourth quarter, Phillips 66 generated $1.5 billion of cash from operations. Operating cash flow excluding working capital changes was $1.8 billion. Capital expenditures and investments totaled $2.5 billion, supporting execution of the company's Midstream growth strategy, as well as the DCP Midstream recapitalization. The recapitalization, which included the company's $1.5 billion contribution to DCP Midstream, provides DCP Midstream with a stronger balance sheet and increased financial flexibility through the commodity cycle.

Phillips 66 returned $704 million to shareholders during the quarter, consisting of $298 million in dividends and the repurchase of 4.7 million shares of common stock for $406 million. For the year, the company repurchased 19.3 million shares of common stock for $1.5 billion, paid $1.2 billion in dividends, and increased the quarterly dividend by 12 percent. Since July 2012, the company has repurchased 92.5 million shares for $6.4 billion. Phillips 66 ended the quarter with 529 million shares outstanding.

Page 4

Phillips 66 Reports Fourth-Quarter Earnings of $650 Million (Adjusted Earnings of $710 Million)

	Q4 2015
	Adjusted Phillips 66		Phillips 66 Partners	Phillips 66 Consolidated
Total Debt, $MM	7,796		1,091	8,887
Total Equity, $MM	23,129		809	23,938
Debt-to-capital ratio	25	%		27	%
Total Cash, $MM	3,026		48	3,074
Net-debt-to-capital ratio	17	%		20	%

As of Dec. 31, 2015, cash and cash equivalents were $3.1 billion and debt was $8.9 billion, including $1.1 billion at Phillips 66 Partners. The company's consolidated debt-to-capital ratio was 27 percent. Excluding Phillips 66 Partners, the debt-to-capital ratio was 25 percent. Additionally, Phillips 66 reported a 2015 return on capital employed (ROCE) of 14 percent.

Strategic Update

The company continues to execute on its plan to grow the Midstream and Chemicals businesses, while maintaining commitments to shareholder distributions, financial flexibility and a strong balance sheet. Midstream growth is fueled in part by robust operating cash flows generated by the company’s Refining and M&S operations. In addition, PSXP provides a cost-efficient vehicle to fund that growth and invest in fee-based infrastructure, as demonstrated by the $1.5 billion raised by PSXP in debt and equity offerings in the first quarter of 2015.

The company continued development of the Sweeny Hub with the 100,000 BPD Sweeny Fractionator One and Clemens Caverns projects, which came online in the fourth quarter. Construction of the 150,000 BPD Freeport LPG Export Terminal is on schedule 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. Commercial operations are expected to begin in the fourth quarter of 2016.

In the fourth quarter of 2015, Phillips 66 Partners acquired Phillips 66's interest in the Bayou Bridge Pipeline joint venture. The joint venture was created to develop a pipeline from the Phillips 66 and Sunoco Logistics terminals in Nederland, Texas, to St. James, Louisiana. Construction is underway on the first segment of the pipeline, which will deliver crude oil from Nederland, to Lake Charles, Louisiana. Commercial operations on this segment are expected to begin by the end of first-quarter 2016.

In Chemicals, overall progress on CPChem's world-scale U.S. Gulf Coast Petrochemicals Project is now approaching 70 percent completion, with startup expected in mid-2017. This project consists of an ethane cracker and related polyethylene facilities that will increase CPChem's U.S. ethylene and polyethylene capacity by more than 40 percent.

Page 5

Phillips 66 Reports Fourth-Quarter Earnings of $650 Million (Adjusted Earnings of $710 Million)

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

Earnings
	Millions of Dollars
	2015					2014
	Q4			YTD		Q4		YTD
Midstream	$	(77	)	13		96		507
Chemicals	212			962		267		1,137
Refining	410			2,555		517		1,771
Marketing and Specialties	231			1,187		367		1,034
Corporate and Other	(126		)	(490	)	(100	)	(393	)
Discontinued Operations	—			—		—		706
Phillips 66	$	650		4,227		1,147		4,762
Adjusted Earnings
	Millions of Dollars
	2015					2014
	Q4			YTD		Q4		YTD
Midstream	$	42		248		97		508
Chemicals	182			952		270		1,209
Refining	376			2,527		322		1,576
Marketing and Specialties	227			947		324		882
Corporate and Other	(117		)	(481	)	(100	)	(393	)
Phillips 66	$	710		4,193		913		3,782

Page 6

Phillips 66 Reports Fourth-Quarter Earnings of $650 Million (Adjusted Earnings of $710 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 $49 billion of assets as of Dec. 31, 2015. For more information, visit www.phillips66.com or follow us on Twitter @Phillips66Co.

- # # # -

CONTACTS

C.W. Mallon (investors)

832-765-2297

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, petroleum products and natural gas prices, and refining, marketing 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 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, operating cash flow excluding working capital, adjusted debt-to-capital, and adjusted ROCE. These are non-GAAP financial measures that are included to help facilitate comparisons of company operating performance across periods.

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

Page 7

Phillips 66 Reports Fourth-Quarter Earnings of $650 Million (Adjusted Earnings of $710 Million)

	Millions of Dollars
	Except as Indicated
	2015							2014
	Q4			Q3		Year		Q4		Year
Reconciliation of Earnings to Adjusted Earnings
Consolidated
Earnings	$	650		1,578		4,227		1,147		4,762
Adjustments:
Asset dispositions	—			(18	)	(265	)	(385	)	(494	)
Impairments	—			—		—		131		131
Impairments by equity affiliates	108			22		256		—		69
Pending claims and settlements	—			19		(23	)	(10	)	(10	)
Lower-of-cost-or-market inventory adjustments	33			—		33		30		30
Pension settlement expenses	3			46		49		—		—
Certain tax impacts	(84		)	—		(84	)	—		—
Discontinued operations	—			—		—		—		(706	)
Adjusted earnings	$	710		1,647		4,193		913		3,782
Earnings per share of common stock (dollars)	$	1.20		2.90		7.73		2.05		8.33
Adjusted earnings per share of common stock (dollars)	$	1.31		3.02		7.67		1.63		6.62
Midstream
Earnings (loss)	$	(77	)	101		13		96		507
Adjustments:
Asset dispositions	—			(18	)	(18	)	—		—
Impairments by equity affiliates	104			2		232		—		—
Pension settlement expenses	—			6		6		—		—
Lower-of-cost-or-market inventory adjustments	—			—		—		1		1
Certain tax impacts	15			—		15		—		—
Adjusted earnings	$	42		91		248		97		508
Chemicals
Earnings	$	212		252		962		267		1,137
Adjustments:
Impairments by equity affiliates	4			20		24		—		69
Lower-of-cost-or-market inventory adjustments	—			—		—		3		3
Certain tax impacts	(34		)	—		(34	)	—		—
Adjusted earnings	$	182		272		952		270		1,209
Refining
Earnings	$	410		1,003		2,555		517		1,771
Adjustments:
Asset dispositions	—			—		(5	)	(369	)	(369	)
Impairments	—			—		—		131		131
Pending claims and settlements	—			19		(19	)	17		17
Lower-of-cost-or-market inventory adjustments	33			—		33		26		26
Pension settlement expenses	2			30		32		—		—
Certain tax impacts	(69		)	—		(69	)	—		—
Adjusted earnings	$	376		1,052		2,527		322		1,576

Page 8

Phillips 66 Reports Fourth-Quarter Earnings of $650 Million (Adjusted Earnings of $710 Million)

	Millions of Dollars
	Except as Indicated
	2015							2014
	Q4			Q3		Year		Q4		Year
Reconciliation of Earnings to Adjusted Earnings (continued)
Marketing and Specialties
Earnings	$	231		338		1,187		367		1,034
Adjustments:
Asset dispositions	—			—		(242	)	(16	)	(125	)
Pending claims and settlements	—			—		—		(27	)	(27	)
Pension settlement expenses	1			6		7		—		—
Certain tax impacts	(5		)	—		(5	)	—		—
Adjusted earnings	$	227		344		947		324		882
Corporate and Other
Earnings (loss)	$	(126	)	(116	)	(490	)	(100	)	(393	)
Adjustments:
Pending claims and settlements	—			—		(4	)	—		—
Pension settlement expenses	—			4		4		—		—
Certain tax impacts	9			—		9		—		—
Adjusted earnings (loss)	$	(117	)	(112	)	(481	)	(100	)	(393	)

	Millions of Dollars
	Q4
	2015
Cash Flows from Operating Activities
Net Cash Provided by Operating Activities, excluding working capital	$	1,825
Changes in working capital	(328		)
Net Cash Provided by Operating Activities	$	1,497

	Millions of Dollars
	2015
	Growth		Sustaining	Total
Capital expenditures and investments
Midstream1	$	2,801	1,656	4,457
Chemicals	—		—	—
Refining	201		868	1,069
Marketing & Specialties	66		56	122
Corporate and Other	10		106	116
Total	$	3,078	2,686	5,764
1 Midstream sustaining expenditure includes DCP equity contribution of $1.5 billion

Page 9

EX-99.2

	Exhibit 99.2
Phillips 66 Earnings Release Supplemental Data

CONSOLIDATED INCOME STATEMENT
	Millions of Dollars
	2014										2015
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Revenues and Other Income
Sales and other operating revenues*	40,283		45,549		40,417		34,963		161,212		22,778		28,512		25,792		21,893		98,975
Equity in earnings of affiliates	778		764		511		413		2,466		456		407		583		127		1,573
Net gain on dispositions	7		9		109		170		295		122		139		22		—		283
Other income (loss)	31		17		11		61		120		70		19		20		9		118
Total Revenues and Other Income	41,099		46,339		41,048		35,607		164,093		23,426		29,077		26,417		22,029		100,949
Costs and Expenses
Purchased crude oil and products	34,381		39,316		33,602		28,449		135,748		16,695		22,253		18,580		15,871		73,399
Operating expenses	1,090		1,077		1,104		1,164		4,435		1,094		1,043		1,083		1,074		4,294
Selling, general and administrative expenses	402		412		401		448		1,663		394		406		437		433		1,670
Depreciation and amortization	234		239		249		273		995		253		274		270		281		1,078
Impairments	1		3		12		134		150		—		2		1		4		7
Taxes other than income taxes*	3,638		3,832		3,874		3,696		15,040		3,462		3,549		3,610		3,456		14,077
Accretion on discounted liabilities	6		6		6		6		24		5		6		5		5		21
Interest and debt expense	68		66		60		73		267		86		79		71		74		310
Foreign currency transaction (gains) losses	(19	)	29		13		3		26		49		—		1		(1	)	49
Total Costs and Expenses	39,801		44,980		39,321		34,246		158,348		22,038		27,612		24,058		21,197		94,905
Income from continuing operations before income taxes	1,298		1,359		1,727		1,361		5,745		1,388		1,465		2,359		832		6,044
Provision for income taxes	426		487		538		203		1,654		391		440		767		166		1,764
Income from continuing operations	872		872		1,189		1,158		4,091		997		1,025		1,592		666		4,280
Income from discontinued operations**	706		—		—		—		706		—		—		—		—		—
Net income	1,578		872		1,189		1,158		4,797		997		1,025		1,592		666		4,280
Less: net income attributable to noncontrolling interests	6		9		9		11		35		10		13		14		16		53
Net Income Attributable to Phillips 66	1,572		863		1,180		1,147		4,762		987		1,012		1,578		650		4,227
* Includes excise taxes on petroleum products sales:	3,522		3,743		3,781		3,652		14,698		3,362		3,463		3,513		3,442		13,780
** Net of provision for income taxes on discontinued operations:	5		—		—		—		5		—		—		—		—		—
Amounts Attributable to Phillips 66 Common Stockholders:
Income from continuing operations	866		863		1,180		1,147		4,056		987		1,012		1,578		650		4,227
Income from discontinued operations	706		—		—		—		706		—		—		—		—		—
Net Income Attributable to Phillips 66	1,572		863		1,180		1,147		4,762		987		1,012		1,578		650		4,227
Net Income Attributable to Phillips 66 Per Share of Common Stock (dollars)
Basic
Continuing operations	1.48		1.52		2.11		2.07		7.15		1.80		1.85		2.92		1.21		7.78
Discontinued operations	1.21		—		—		—		1.25		—		—		—		—		—
Net Income Attributable to Phillips 66
Per Share of Common Stock	2.69		1.52		2.11		2.07		8.40		1.80		1.85		2.92		1.21		7.78
Diluted
Continuing operations	1.47		1.51		2.09		2.05		7.10		1.79		1.84		2.90		1.20		7.73
Discontinued operations	1.20		—		—		—		1.23		—		—		—		—		—
Net Income Attributable to Phillips 66
Per Share of Common Stock	2.67		1.51		2.09		2.05		8.33		1.79		1.84		2.90		1.20		7.73
Average Common Shares Outstanding (in thousands)
Basic	584,053		565,799		559,492		554,617		565,902		548,200		544,617		540,357		536,399		542,355
Diluted	589,575		571,285		564,958		559,023		571,504		552,337		548,926		544,696		540,245		546,977
SUMMARY OF INCOME (LOSS) ATTRIBUTABLE TO PHILLIPS 66 BY SEGMENT
	Millions of Dollars
	2014										2015
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Midstream	188		108		115		96		507		67		(78	)	101		(77	)	13
Chemicals	316		324		230		267		1,137		203		295		252		212		962
Refining	306		390		558		517		1,771		538		604		1,003		410		2,555
Marketing and Specialties	137		162		368		367		1,034		304		314		338		231		1,187
Corporate and Other	(81	)	(121	)	(91	)	(100	)	(393	)	(125	)	(123	)	(116	)	(126	)	(490	)
Discontinued Operations	706		—		—		—		706		—		—		—		—		—
Consolidated	1,572		863		1,180		1,147		4,762		987		1,012		1,578		650		4,227
SUMMARY OF INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES BY SEGMENT
	Millions of Dollars
	2014										2015
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Midstream	302		180		194		175		851		116		(99	)	173		(43	)	147
Chemicals	442		466		328		396		1,632		291		416		360		248		1,315
Refining	508		647		859		453		2,467		764		932		1,488		475		3,659
Marketing and Specialties	205		248		495		527		1,475		406		410		514		322		1,652
Corporate and Other	(159	)	(182	)	(149	)	(190	)	(680	)	(189	)	(194	)	(176	)	(170	)	(729	)
Consolidated	1,298		1,359		1,727		1,361		5,745		1,388		1,465		2,359		832		6,044
EFFECTIVE TAX RATES ON INCOME FROM CONTINUING OPERATIONS
	2014										2015
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Midstream	35.8	%	35.0	%	36.1	%	38.9	%	36.3	%	32.8	%	37.4	%	32.9	%	-34.9	%	49.7	%
Chemicals	28.5	%	30.5	%	29.9	%	32.6	%	30.3	%	30.2	%	29.1	%	30.0	%	14.5	%	26.8	%
Refining	39.8	%	39.7	%	35.0	%	-14.1	%	28.2	%	29.6	%	35.2	%	32.6	%	13.7	%	30.2	%
Marketing and Specialties	33.2	%	34.7	%	25.7	%	30.4	%	29.9	%	25.1	%	23.4	%	34.2	%	28.3	%	28.1	%
Corporate and Other	49.1	%	33.5	%	38.9	%	47.4	%	42.2	%	33.3	%	35.1	%	33.5	%	24.1	%	31.7	%
Consolidated	32.8	%	35.8	%	31.2	%	14.9	%	28.8	%	28.2	%	30.0	%	32.5	%	20.0	%	29.2	%
SUMMARY OF ADJUSTED NET INCOME (LOSS) ATTRIBUTABLE TO PHILLIPS 66 BY SEGMENT
	Millions of Dollars
	2014										2015
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Midstream	188		108		115		97		508		67		48		91		42		248
Chemicals	316		324		299		270		1,209		203		295		272		182		952
Refining	306		390		558		322		1,576		495		604		1,052		376		2,527
Marketing and Specialties	137		162		259		324		882		194		182		344		227		947
Corporate and Other	(81	)	(121	)	(91	)	(100	)	(393	)	(125	)	(127	)	(112	)	(117	)	(481	)
Consolidated	866		863		1,140		913		3,782		834		1,002		1,647		710		4,193

Page 1

SPECIAL ITEMS INCLUDED IN NET INCOME ATTRIBUTABLE TO PHILLIPS 66
(AFTER-TAX)
	Millions of Dollars
	2014								2015
	1st Qtr	2nd Qtr	3rd Qtr		4th Qtr		YTD		1st Qtr	2nd Qtr		3rd Qtr		4th Qtr		YTD
Midstream
Asset dispositions	—	—	—		—		—		—	—		18		—		18
Impairments by equity affiliates	—	—	—		—		—		—	(126	)	(2	)	(104	)	(232	)
Pension settlement expenses	—	—	—		—		—		—	—		(6	)	—		(6	)
Lower-of-cost-or-market inventory adjustments	—	—	—		(1	)	(1	)	—	—		—		—		—
Certain tax impacts	—	—	—		—		—		—	—		—		(15	)	(15	)
Total Midstream	—	—	—		(1	)	(1	)	—	(126	)	10		(119	)	(235	)
Chemicals
Impairments by equity affiliates	—	—	(69	)	—		(69	)	—	—		(20	)	(4	)	(24	)
Lower-of-cost-or-market inventory adjustments	—	—	—		(3	)	(3	)	—	—		—		—		—
Certain tax impacts	—	—	—		—		—		—	—		—		34		34
Total Chemicals	—	—	(69	)	(3	)	(72	)	—	—		(20	)	30		10
Refining
Asset dispositions	—	—	—		369		369		5	—		—		—		5
Impairments	—	—	—		(131	)	(131	)	—	—		—		—		—
Pending claims and settlements	—	—	—		(17	)	(17	)	38	—		(19	)	—		19
Lower-of-cost-or-market inventory adjustments	—	—	—		(26	)	(26	)	—	—		—		(33	)	(33	)
Pension settlement expenses	—	—	—		—		—		—	—		(30	)	(2	)	(32	)
Certain tax impacts	—	—	—		—		—		—	—		—		69		69
Total Refining	—	—	—		195		195		43	—		(49	)	34		28
Marketing and Specialties
Asset dispositions	—	—	109		16		125		110	132		—		—		242
Pending claims and settlements	—	—	—		27		27		—	—		—		—		—
Pension settlement expenses	—	—	—		—		—		—	—		(6	)	(1	)	(7	)
Certain tax impacts	—	—	—		—		—		—	—		—		5		5
Total Marketing and Specialties	—	—	109		43		152		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	)
Discontinued Operations	706	—	—		—		706		—	—		—		—		—
Total Phillips 66	706	—	40		234		980		153	10		(69	)	(60	)	34
By Business Lines/Regions
Midstream
Transportation	—	—	—		—		—		—	—		—		3		3
DCP Midstream	—	—	—		(1	)	(1	)	—	(126	)	16		(125	)	(235	)
NGL	—	—	—		—		—		—	—		(6	)	3		(3	)
Total Midstream	—	—	—		(1	)	(1	)	—	(126	)	10		(119	)	(235	)
Refining
Atlantic Basin/Europe	—	—	—		(132	)	(132	)	38	—		(13	)	89		114
Gulf Coast	—	—	—		(3	)	(3	)	—	—		(16	)	(19	)	(35	)
Central Corridor	—	—	—		(17	)	(17	)	—	—		(12	)	(35	)	(47	)
Western/Pacific	—	—	—		347		347		5	—		(8	)	(1	)	(4	)
Total Refining	—	—	—		195		195		43	—		(49	)	34		28
Marketing and Specialties
Marketing and Other	—	—	109		43		152		110	132		(6	)	1		237
Specialties	—	—	—		—		—		—	—		—		3		3
Total Marketing and Specialties	—	—	109		43		152		110	132		(6	)	4		240
SPECIAL ITEMS INCLUDED IN INCOME FROM CONTINUING OPERATIONS
(PRETAX)
	Millions of Dollars
	2014								2015
	1st Qtr	2nd Qtr	3rd Qtr		4th Qtr		YTD		1st Qtr	2nd Qtr		3rd Qtr		4th Qtr		YTD
Midstream
Transportation	—	—	—		—		—		—	—		—		—		—
DCP Midstream	—	—	—		(2	)	(2	)	—	(194	)	26		(168	)	(336	)
NGL	—	—	—		—		—		—	—		(9	)	—		(9	)
Total Midstream	—	—	—		(2	)	(2	)	—	(194	)	17		(168	)	(345	)
Chemicals	—	—	(88	)	(3	)	(91	)	—	—		(20	)	(4	)	(24	)
Refining
Atlantic Basin/Europe	—	—	—		(133	)	(133	)	—	—		(21	)	(2	)	(23	)
Gulf Coast	—	—	—		(5	)	(5	)	—	—		(26	)	(2	)	(28	)
Central Corridor	—	—	—		(29	)	(29	)	—	—		(18	)	(53	)	(71	)
Western/Pacific	—	—	—		118		118		8	—		(14	)	—		(6	)
Total Refining	—	—	—		(49	)	(49	)	8	—		(79	)	(57	)	(128	)
Marketing and Specialties
Marketing and Other	—	—	109		60		169		110	132		(10	)	(1	)	231
Specialties	—	—	—		—		—		—	—		—		—		—
Total Marketing and Specialties	—	—	109		60		169		110	132		(10	)	(1	)	231
Corporate and Other	—	—	—		—		—		—	5		(7	)	4		2
Discontinued Operations	711	—	—		—		711		—	—		—		—		—
Total Phillips 66	711	—	21		6		738		118	(57	)	(99	)	(226	)	(264	)

Page 2

CASH FLOW INFORMATION
	Millions of Dollars
	2014										2015
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Cash Flows From Operating Activities
Net income	1,578		872		1,189		1,158		4,797		997		1,025		1,592		666		4,280
Depreciation and amortization	234		239		249		273		995		253		274		270		281		1,078
Impairments	1		3		12		134		150		—		2		1		4		7
Accretion on discounted liabilities	6		6		6		6		24		5		6		5		5		21
Deferred taxes	(444	)	(11	)	(72	)	39		(488	)	(6	)	(75	)	(44	)	654		529
Undistributed equity earnings	632		(253	)	(19	)	(163	)	197		(337	)	662		(308	)	168		185
Net gain on dispositions	(7	)	(9	)	(109	)	(170	)	(295	)	(122	)	(139	)	(22	)	—		(283	)
Income from discontinued operations	(706	)	—		—		—		(706	)	—		—		—		—		—
Other	(21	)	90		1		(197	)	(127	)	90		4		(24	)	47		117
Net working capital changes	123		(107	)	(828	)	(208	)	(1,020	)	472		(332	)	(33	)	(328	)	(221	)
Net cash provided by continuing operating activities	1,396		830		429		872		3,527		1,352		1,427		1,437		1,497		5,713
Net cash provided by discontinued operations	2		—		—		—		2		—		—		—		—		—
Net Cash Provided by Operating Activities	1,398		830		429		872		3,529		1,352		1,427		1,437		1,497		5,713
Cash Flows From Investing Activities
Capital expenditures and investments	(572	)	(561	)	(1,514	)	(1,126	)	(3,773	)	(1,081	)	(1,213	)	(992	)	(2,478	)	(5,764	)
Proceeds from asset dispositions*	507		150		6		581		1,244		(9	)	4		73		2		70
Advances/loans—related parties	—		(3	)	—		—		(3	)	(50	)	—		—		—		(50	)
Collection of advances/loans—related parties	—		—		—		—		—		—		50		—		—		50
Other	13		21		127		77		238		102		(55	)	(45	)	(46	)	(44	)
Net cash used in continuing investing activities	(52	)	(393	)	(1,381	)	(468	)	(2,294	)	(1,038	)	(1,214	)	(964	)	(2,522	)	(5,738	)
Net cash provided by (used in) discontinued operations	(34	)	32		—		—		(2	)	—		—		—		—		—
Net Cash Used in Investing Activities	(86	)	(361	)	(1,381	)	(468	)	(2,296	)	(1,038	)	(1,214	)	(964	)	(2,522	)	(5,738	)
Cash Flows From Financing Activities
Issuance of debt	—		—		—		2,487		2,487		1,169		—		—		—		1,169
Repayment of debt	(8	)	(9	)	(13	)	(19	)	(49	)	(895	)	(9	)	(14	)	(8	)	(926	)
Issuance of common stock	(20	)	8		13		—		1		(25	)	—		(2	)	8		(19	)
Repurchase of common stock	(640	)	(616	)	(494	)	(532	)	(2,282	)	(399	)	(334	)	(373	)	(406	)	(1,512	)
Share exchange—PSPI transaction	(450	)	—		—		—		(450	)	—		—		—		—		—
Dividends paid on common stock	(229	)	(281	)	(277	)	(275	)	(1,062	)	(272	)	(302	)	(300	)	(298	)	(1,172	)
Distributions to noncontrolling interests	(4	)	(9	)	(5	)	(12	)	(30	)	(6	)	(14	)	(10	)	(16	)	(46	)
Net proceeds from issuance of Phillips 66 Partners LP common units	—		—		—		—		—		384		—		—		—		384
Other	(4	)	29		(2	)	—		23		(14	)	16		—		3		5
Net cash provided by (used in) continuing financing activities	(1,355	)	(878	)	(778	)	1,649		(1,362	)	(58	)	(643	)	(699	)	(717	)	(2,117	)
Net cash provided by (used in) discontinued operations	—		—		—		—		—		—		—		—		—		—
Net Cash Provided by (Used in) Financing Activities	(1,355	)	(878	)	(778	)	1,649		(1,362	)	(58	)	(643	)	(699	)	(717	)	(2,117	)
Effect of Exchange Rate Changes on Cash and Cash Equivalents	(31	)	39		(118	)	46		(64	)	(73	)	129		(41	)	(6	)	9
Net Change in Cash and Cash Equivalents	(74	)	(370	)	(1,848	)	2,099		(193	)	183		(301	)	(267	)	(1,748	)	(2,133	)
Cash and cash equivalents at beginning of period	5,400		5,326		4,956		3,108		5,400		5,207		5,390		5,089		4,822		5,207
Cash and Cash Equivalents at End of Period	5,326		4,956		3,108		5,207		5,207		5,390		5,089		4,822		3,074		3,074
*Includes return of investments in equity affiliates.
CAPITAL PROGRAM
	Millions of Dollars
	2014										2015
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Consolidated Capital Expenditures and Investments
Midstream	288		298		946		641		2,173		769		899		700		2,089		4,457
Chemicals	—		—		—		—		—		—		—		—		—		—
Refining	186		215		278		359		1,038		274		268		233		294		1,069
Marketing and Specialties	84		26		248		81		439		24		30		32		36		122
Corporate and Other	14		22		42		45		123		14		16		27		59		116
Total Consolidated from Continuing Operations	572		561		1,514		1,126		3,773		1,081		1,213		992		2,478		5,764
Proportional Share of Select Equity Affiliates   Capital Expenditures and Investments*
DCP Midstream (Midstream)	178		176		207		215		776		157		149		71		61		438
CPChem (Chemicals)**	154		220		242		270		886		249		259		331		480		1,319
WRB Refining (Refining)	23		38		35		44		140		35		36		47		57		175
Select Equity Affiliates	355		434		484		529		1,802		441		444		449		598		1,932
**Prior period amounts have been restated.
Total Capital Program*
Midstream	466		474		1,153		856		2,949		926		1,048		771		2,150		4,895
Chemicals	154		220		242		270		886		249		259		331		480		1,319
Refining	209		253		313		403		1,178		309		304		280		351		1,244
Marketing and Specialties	84		26		248		81		439		24		30		32		36		122
Corporate and Other	14		22		42		45		123		14		16		27		59		116
Total Capital Program	927		995		1,998		1,655		5,575		1,522		1,657		1,441		3,076		7,696
* Includes Phillips 66’s portion of self-funded capital spending by DCP Midstream, LLC (DCP Midstream), Chevron Phillips Chemical Company LLC (CPChem) and WRB Refining.

Page 3

MIDSTREAM
	2014						2015
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr		YTD	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Midstream Net Income (Loss) Attributable    to Phillips 66 ($ Millions)
Transportation	62	60	58	53		233	65		65		77		81		288
DCP Midstream	83	33	31	(12	)	135	(12	)	(151	)	(2	)	(159	)	(324	)
NGL	43	15	26	55		139	14		8		26		1		49
Midstream Net Income (Loss) Attributable to Phillips 66	188	108	115	96		507	67		(78	)	101		(77	)	13
Midstream Income (Loss) before Income Taxes ($ Millions)
Transportation	101	105	102	108		416	113		115		129		134		491
DCP Midstream	130	52	50	(18	)	214	(17	)	(233	)	(3	)	(210	)	(463	)
NGL	71	23	42	85		221	20		19		47		33		119
Midstream Income (Loss) before Income Taxes	302	180	194	175		851	116		(99	)	173		(43	)	147
Midstream Adjusted EBITDA	384	256	273	257		1,170	199		177		245		174		795
Depreciation and Amortization ($ Millions)
Transportation	19	20	23	27		89	25		27		31		31		114
DCP Midstream	—	—	—	—		—	—		—		—		—		—
NGL	—	1	1	—		2	1		—		2		10		13
Total	19	21	24	27		91	26		27		33		41		127
Operating and SG&A Expense ($ Millions)
Transportation	96	109	122	134		461	124		117		113		124		478
DCP Midstream	—	—	—	—		—	—		—		1		—		1
NGL	17	20	20	37		94	32		25		34		36		127
Total	113	129	142	171		555	156		142		148		160		606
Transportation Volumes (MB/D)
Pipelines*	3,101	3,243	3,142	3,336		3,206	3,145		3,290		3,239		3,381		3,264
Terminals**	1,477	1,609	1,780	1,860		1,683	1,983		1,969		2,021		1,953		1,981
* Pipelines represent the sum of volumes transported through each separately tariffed pipeline segment, including our share of equity volumes in
Yellowstone and Lake Charles pipelines.
** Terminals include Bayway and Ferndale crude oil rail rack volumes.
PSX Other Volumes
NGL Fractionated (MB/D)*	112	117	110	99		109	108		108		110		123		112
* Excludes DCP Midstream.
100% DCP Midstream Results
Net Income Attributable, excludes parent company income tax related to DCP's earnings ($ Millions)	165	89	81	(47	)	288	(37	)	(466	)	(6	)	(420	)	(929	)
Depreciation and Amortization ($ Millions)	85	86	87	90		348	91		94		93		99		377
Operating and SG&A Expense ($ Millions)	243	283	264	271		1,061	236		240		275		277		1,028
Net Interest Expense ($ Millions)*	72	74	71	70		287	76		79		85		80		320
* Net of interest income.
Capital Expenditures and Investments ($ Millions)	355	353	414	429		1,551	314		297		143		121		875
Selected DCP Volumes and Gross Margin
by Major Contract Type (excludes current quarter)
Percentage of Proceeds (long NGL / long Gas)*
Volume (TBtu/d)	5.3	5.6	5.8	5.9		5.7	5.6		5.6		5.7		**		5.6
Gross Margin ($ Millions)	265	265	275	215		1,020	130		125		120		**		375
Keep-whole (long NGL / short Gas)*
Volume (TBtu/d)	0.5	0.4	0.4	0.3		0.4	0.3		0.3		0.3		**		0.3
Gross Margin ($ Millions)	35	20	25	20		100	10		10		5		**		25
Fee-based Gas (primarily gathering and transport)*
Volume (TBtu/d)	4.6	4.5	4.6	4.7		4.6	4.7		4.7		4.9		**		4.8
Gross Margin ($ Millions)	80	85	90	105		360	95		105		110		**		310
Fee-based NGL Transport and Fractionation
Volume (MB/d)	242	281	325	340		297	320		339		354		**		338
Gross Margin ($ Millions)	26	27	39	39		131	36		44		47		**		127
Other Gross Margin***
Gross Margin ($ Millions)	205	139	175	139		658	118		94		162		**		374
Total Throughput (TBtu/d)	7.2	7.3	7.5	7.4		7.3	7.1		7.0		7.3		7.1		7.1
NGL Production (MB/d)	445	452	471	447		454	399		408		421		410		410
* Certain volumes earn duplicate revenue streams (i.e. both fee plus processing economics).
** Pending DCP Midstream release.
*** Includes NGL/Propane Marketing, MTM, Condensate Sales, Gas Marketing activity and other items.
Weighted Average NGL Price*
DCP Midstream ($/BBL)	44.52	39.06	37.66	28.45		37.43	20.57		19.99		17.57		17.66		18.95
DCP Midstream ($/gal)	1.06	0.93	0.90	0.68		0.89	0.49		0.48		0.42		0.42		0.45
* Based on index prices from the Mont Belvieu and Conway market hubs that are weighted by NGL component and location mix.
MLP Distributions ($ Millions)*
GP Distribution from PSXP to Phillips 66	1	1	2	4		8	6		9		11		14		40
LP Distribution from PSXP to Phillips 66	15	17	17	19		68	21		23		25		27		96
GP Distribution from DPM to DCP Midstream***	26	28	29	31		114	31		31		31		**		93
LP Distribution from DPM to DCP Midstream***	18	18	19	19		74	19		19		19		**		57
* 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 DCP Midstream Partners LP (DPM).

Page 4

CHEMICALS
	2014										2015
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Chemicals Net Income Attributable    to Phillips 66 ($ Millions)	316		324		230		267		1,137		203		295		252		212		962
Chemicals Adjusted EBITDA	534		557		517		493		2,101		380		507		473		341		1,701
100% CPChem Results
Net Income (Loss), excludes parent company income tax related to CPChem's earnings ($ Millions)
Olefins and Polyolefins	801		903		720		731		3,155		530		769		737		499		2,535
Specialties, Aromatics and Styrenics	97		52		(45	)	74		178		69		93		4		19		185
Corporate and Other	(8	)	(15	)	(13	)	(9	)	(45	)	(12	)	(28	)	(11	)	(18	)	(69	)
Total	890		940		662		796		3,288		587		834		730		500		2,651
Income (Loss) before Income Taxes ($ Millions)*
Olefins and Polyolefins	815		918		735		741		3,209		542		780		750		510		2,582
Specialties, Aromatics and Styrenics	105		60		(36	)	79		208		77		100		10		23		210
Corporate and Other	(8	)	(14	)	(12	)	(9	)	(43	)	(12	)	(28	)	(9	)	(18	)	(67	)
Total	912		964		687		811		3,374		607		852		751		515		2,725
* Excludes CPChem discontinued operations.
Depreciation and Amortization ($ Millions)	69		69		74		84		296		76		74		75		81		306
Net Interest Expense ($ Millions)*	—		(1	)	(1	)	—		(2	)	—		(1	)	(1	)	—		(2	)
* Net of interest income.
Investing Cash Flows ($ Millions)
Capital Expenditures and Investments*	307		440		484		540		1,771		498		518		661		960		2,637
Advances to Equity Companies	5		21		18		34		78		10		23		22		20		75
Advance Repayments from Equity Companies	—		—		—		—		—		—		—		—		(18	)	(18	)
*Prior period amounts have been restated.
Externally Marketed Sales Volumes (MM Lbs)*
Olefins and Polyolefins	4,302		4,395		4,067		4,051		16,815		4,019		4,258		4,446		4,193		16,916
Specialties, Aromatics and Styrenics	1,569		1,530		1,571		1,624		6,294		1,482		1,356		1,259		1,204		5,301
Total	5,871		5,925		5,638		5,675		23,109		5,501		5,614		5,705		5,397		22,217
* Represents 100 percent of CPChem's outside sales of produced petrochemical products, as well as commission sales from equity affiliates.
Olefins and Polyolefins Capacity Utilization (%)	93	%	95	%	83	%	83	%	88	%	87	%	91	%	94	%	92	%	91	%
Market Indicators*
U.S. Industry Prices
Ethylene, Average Acquisition Contract (cents/lb)	53.49		53.03		59.95		50.26		54.18		38.04		37.88		29.18		24.44		32.39
HDPE Blow Molding, Domestic Spot (cents/lb)	70.50		71.25		74.33		68.83		71.23		52.75		58.83		58.42		54.00		56.00
U.S. Industry Costs
Ethylene, Cash Cost Weighted Average Feed (cents/lb)	20.10		16.77		14.39		10.48		15.44		10.25		9.67		9.64		10.91		10.12
HDPE Blow Molding, Total Cash Cost (cents/lb)	67.09		66.56		73.51		63.60		67.69		50.97		50.73		41.91		36.90		45.13
Ethylene to High-Density Polyethylene Chain Cash Margin (cents/lb)	36.80		40.95		46.38		45.01		42.28		29.57		36.31		36.05		30.63		33.14
* Source: IHS, Inc.

Page 5

REFINING
	2014										2015
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Refining Net Income (Loss) Attributable to Phillips 66 ($ Millions)
Atlantic Basin/Europe	38		(37	)	140		57		198		113		90		180		186		569
Gulf Coast	79		118		66		(11	)	252		71		83		269		128		551
Central Corridor	225		232		328		182		967		195		216		360		86		857
Western/Pacific	(36	)	77		24		289		354		159		215		194		10		578
Refining Net Income (Loss) Attributable to Phillips 66	306		390		558		517		1,771		538		604		1,003		410		2,555
Refining Income (Loss) before Income Taxes ($ Millions)
Atlantic Basin/Europe	64		(24	)	205		137		382		108		130		228		88		554
Gulf Coast	128		184		100		(19	)	393		109		127		416		237		889
Central Corridor	365		373		502		265		1,505		301		347		546		132		1,326
Western/Pacific	(49	)	114		52		70		187		246		328		298		18		890
Refining Income (Loss) before Income Taxes	508		647		859		453		2,467		764		932		1,488		475		3,659
Refining Adjusted EBITDA	722		883		1,098		746		3,449		996		1,176		1,816		786		4,774
Realized Refining Margins ($/BBL)*
Atlantic Basin/Europe	8.34		5.75		10.60		11.04		8.94		9.94		10.45		10.27		7.18		9.39
Gulf Coast	8.80		8.22		7.35		6.33		7.64		10.59		7.38		10.72		8.59		9.29
Central Corridor	15.38		15.26		17.84		14.02		15.63		13.86		13.49		20.97		11.43		14.88
Western/Pacific	7.58		11.11		9.87		6.92		8.89		16.54		19.87		18.29		12.51		16.86
Worldwide	9.88		9.66		10.89		9.30		9.93		12.26		11.70		13.96		9.41		11.84
* Based on total processed inputs and includes proportional share of refining margins contributed by certain equity affiliates. Realized margin excludes special items.
Depreciation and Amortization ($ Millions)*
Atlantic Basin/Europe	47		48		49		48		192		45		48		51		53		197
Gulf Coast	50		50		53		54		207		54		56		57		58		225
Central Corridor	23		24		23		25		95		25		25		25		26		101
Western/Pacific	52		52		53		53		210		53		54		54		54		215
Total	172		174		178		180		704		177		183		187		191		738
* Excludes D&A of all equity affiliates.
Operating and SG&A Expense ($ Millions)*
Atlantic Basin/Europe	289		259		254		266		1,068		261		287		265		249		1,062
Gulf Coast	365		335		366		401		1,467		386		299		320		296		1,301
Central Corridor	117		129		120		134		500		113		108		138		123		482
Western/Pacific	233		233		235		251		952		217		244		256		303		1,020
Total	1,004		956		975		1,052		3,987		977		938		979		971		3,865
* Excludes Operating and SG&A Expense of all equity affiliates.
Turnaround Expense ($ Millions), included in
Operating and SG&A Expense*
Atlantic Basin/Europe	23		9		16		14		62		36		89		21		15		161
Gulf Coast	75		35		67		94		271		114		8		7		16		145
Central Corridor	5		4		3		6		18		6		1		10		16		33
Western/Pacific	22		13		15		23		73		17		46		31		83		177
Total	125		61		101		137		424		173		144		69		130		516
* Excludes Turnaround Expense of all equity affiliates.
Taxes Other than Income Taxes, excluding Excise Taxes    ($ Millions)
Atlantic Basin/Europe	18		15		15		15		63		16		14		14		14		58
Gulf Coast	24		21		20		18		83		23		18		18		17		76
Central Corridor	11		7		9		8		35		11		10		11		10		42
Western/Pacific	29		26		26		23		104		23		21		22		20		86
Total	82		69		70		64		285		73		63		65		61		262
Foreign Currency Gains (Losses) After-Tax ($ Millions)	14		(18	)	(6	)	4		(6	)	(37	)	3		(1	)	1		(34	)
Refining—Equity Affiliate Information
Equity in earnings of affiliates	150		173		55		(67	)	311		97		140		112		(24	)	325
Less: Share of equity affiliate gross margin included in Realized Refining Margin and other equity affiliate-related costs*	(352	)	(364	)	(248	)	(172	)	(1,136	)	(266	)	(303	)	(298	)	(186	)	(1,053	)
Equity-affiliate-related expenses not included in Realized Refining Margins	(202	)	(191	)	(193	)	(239	)	(825	)	(169	)	(163	)	(186	)	(210	)	(728	)
Regional Totals
Gulf Coast	11		13		3		1		28		11		3		7		13		34
Central Corridor	(167	)	(156	)	(159	)	(195	)	(677	)	(152	)	(136	)	(174	)	(207	)	(669	)
Other Regions**	(46	)	(48	)	(37	)	(45	)	(176	)	(28	)	(30	)	(19	)	(16	)	(93	)
Total	(202	)	(191	)	(193	)	(239	)	(825	)	(169	)	(163	)	(186	)	(210	)	(728	)
* Other costs associated with equity affiliates which do not flow through equity earnings.
** Combined equity affiliates reported in Atlantic Basin/Europe and Western/Pacific.

Page 6

REFINING (continued)
	2014										2015
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Atlantic Basin/Europe*
Crude Oil Charge Input (MB/D)	551		562		538		563		554		514		475		570		596		539
Total Charge Input (MB/D)	585		612		588		616		600		567		524		611		627		583
Crude Oil Capacity Utilization (%)	94	%	96	%	92	%	96	%	94	%	87	%	81	%	97	%	101	%	92	%
Clean Product Yield (%)	84	%	83	%	86	%	85	%	85	%	86	%	84	%	84	%	86	%	85	%
* Includes our proportionate share of a refinery complex in Karlsruhe, Germany.
Gulf Coast
Crude Oil Charge Input (MB/D)	613		673		710		708		676		528		662		735		688		654
Total Charge Input (MB/D)	705		771		794		779		763		590		738		816		756		726
Crude Oil Capacity Utilization (%)	84	%	92	%	97	%	97	%	92	%	72	%	90	%	100	%	93	%	89	%
Clean Product Yield (%)	81	%	79	%	79	%	77	%	79	%	77	%	80	%	81	%	83	%	80	%
Central Corridor*
Crude Oil Charge Input (MB/D)	466		493		476		466		475		460		495		448		456		465
Total Charge Input (MB/D)	481		511		492		481		491		483		512		465		476		484
Crude Oil Capacity Utilization (%)	96	%	102	%	98	%	96	%	98	%	94	%	101	%	91	%	93	%	95	%
Clean Product Yield (%)	88	%	88	%	90	%	90	%	89	%	87	%	90	%	88	%	89	%	89	%
* Includes our proportionate share of the Borger Refinery and Wood River Refinery.
Western/Pacific*
Crude Oil Charge Input (MB/D)	395		424		390		403		403		327		337		346		312		330
Total Charge Input (MB/D)	427		450		423		435		434		357		358		375		343		358
Crude Oil Capacity Utilization (%)	90	%	96	%	89	%	92	%	92	%	91	%	94	%	96	%	87	%	92	%
Clean Product Yield (%)	84	%	85	%	83	%	87	%	85	%	87	%	84	%	86	%	84	%	85	%
* Includes our proportionate share of a refinery in Melaka, Malaysia.
Worldwide—Including Proportionate Share of Equity Affiliates
Crude Oil Charge Input (MB/D)	2,025		2,152		2,114		2,140		2,108		1,829		1,969		2,099		2,052		1,988
Total Charge Input (MB/D)	2,198		2,344		2,297		2,311		2,288		1,997		2,132		2,267		2,202		2,151
Crude Oil Capacity Utilization (%)	90	%	96	%	94	%	95	%	94	%	84	%	90	%	96	%	94	%	91	%
Clean Product Yield (%)	84	%	83	%	84	%	84	%	84	%	84	%	84	%	84	%	85	%	84	%
Refined Products Production (MB/D)
Atlantic Basin/Europe*
Gasoline	231		244		247		247		242		235		224		248		251		239
Distillates	245		248		240		262		249		238		200		251		271		240
Other	112		123		106		113		114		100		102		115		112		108
Total	588		615		593		622		605		573		526		614		634		587
* Includes our proportionate share of a refinery complex in Karlsruhe, Germany.
Gulf Coast
Gasoline	276		300		296		275		287		217		299		328		313		289
Distillates	270		286		299		293		287		216		271		302		288		270
Other	171		197		203		218		197		168		172		196		161		174
Total	717		783		798		786		771		601		742		826		762		733
Central Corridor*
Gasoline	247		262		256		251		254		241		269		238		246		249
Distillates	173		187		181		181		181		178		189		169		174		177
Other	63		64		57		53		59		68		55		58		58		60
Total	483		513		494		485		494		487		513		465		478		486
* Includes our proportionate share of the Borger Refinery and Wood River Refinery.
Western/Pacific*
Gasoline	181		198		182		194		188		169		173		184		160		172
Distillates	179		186		167		186		179		140		129		137		129		134
Other	69		70		76		56		68		52		54		54		54		53
Total	429		454		425		436		435		361		356		375		343		359
* Includes our proportionate share of a refinery in Melaka, Malaysia.
Worldwide—Including Proportionate Share of Equity Affiliates
Gasoline	935		1,004		981		967		971		862		965		998		970		949
Distillates	867		907		887		922		896		772		789		859		862		821
Other	415		454		442		440		438		388		383		423		385		395
Total	2,217		2,365		2,310		2,329		2,305		2,022		2,137		2,280		2,217		2,165
Market Indicators
Crude and Crude Differentials ($/BBL)
WTI	98.75		103.05		97.48		73.41		93.17		48.55		57.84		46.37		42.10		48.72
Brent	108.22		109.63		101.85		76.27		98.99		53.97		61.92		50.26		43.69		52.46
LLS	104.43		105.55		100.95		76.38		96.83		52.83		62.95		50.13		43.57		52.37
ANS	105.74		109.23		101.51		74.76		97.81		53.68		62.91		51.44		43.79		52.96
WTI less Maya	9.41		7.27		6.64		6.21		7.38		4.43		2.52		3.81		7.73		4.62
WTI less WCS	20.83		19.15		18.22		15.63		18.46		13.66		9.74		15.06		14.45		13.23
Natural Gas ($/MCF)
Henry Hub	5.08		4.58		3.94		3.75		4.34		2.87		2.72		2.74		2.08		2.61
Product Margins ($/BBL)
Atlantic Basin/Europe
East Coast Gasoline less Brent	5.12		15.23		15.44		8.69		11.12		9.19		20.92		19.77		11.92		15.45
East Coast Distillate less Brent	22.28		14.30		16.63		22.06		18.82		23.22		17.74		15.41		12.49		17.22
Gulf Coast
Gulf Coast Gasoline less LLS	5.25		11.53		8.54		(0.03	)	6.32		9.99		13.31		13.44		7.62		11.09
Gulf Coast Distillate less LLS	18.63		17.00		16.26		16.17		17.02		18.03		13.96		13.13		10.45		13.89
Central Corridor
Central Gasoline less WTI	13.15		16.09		14.05		6.12		12.35		14.88		19.90		22.85		13.22		17.71
Central Distillate less WTI	25.94		21.07		21.85		27.60		24.12		22.63		18.21		20.40		15.03		19.06
Western/Pacific
West Coast Gasoline less ANS	11.75		20.88		16.59		7.46		14.17		20.21		32.95		38.61		23.82		28.90
West Coast Distillate less ANS	17.55		17.16		20.19		21.69		19.15		19.17		18.16		14.84		15.45		16.91
Worldwide Market Crack Spread ($/BBL)*	12.44		15.94		14.85		10.45		13.42		15.26		18.94		19.51		12.77		16.62
* Weighted average based on Phillips 66 crude capacity.

Page 7

MARKETING AND SPECIALTIES
	2014									2015
	1st Qtr	2nd Qtr		3rd Qtr		4th Qtr		YTD		1st Qtr		2nd Qtr		3rd Qtr	4th Qtr	YTD
Marketing and Specialties Net Income Attributable to Phillips 66 ($ Millions)
Marketing and Other	93	119		325		299		836		254		266		285	199	1,004
Specialties	44	43		43		68		198		50		48		53	32	183
Marketing and Specialties Net Income Attributable to Phillips 66	137	162		368		367		1,034		304		314		338	231	1,187
Marketing and Specialties Income before Income Taxes ($ Millions)
Marketing and Other	135	179		425		423		1,162		325		335		430	276	1,366
Specialties	70	69		70		104		313		81		75		84	46	286
Marketing and Specialties Income before Income Taxes	205	248		495		527		1,475		406		410		514	322	1,652
Marketing and Specialties Adjusted EBITDA ($ Millions)	226	271		410		494		1,401		320		299		549	348	1,516
Realized Marketing Fuel Margin ($/BBL)*
U.S.	1.19	1.17		1.78		1.87		1.51		1.46		1.46		2.26	1.37	1.65
International	3.72	4.52		6.10		6.48		5.22		3.85		2.98		5.94	4.74	4.40
* On third-party petroleum products sales.
Realized Margins not included in Marketing Fuel Margin ($ Millions)*
Marketing and Other	139	160		169		135		603		165		158		159	125	607
Specialties	106	102		108		146		462		122		117		122	92	453
Total	245	262		277		281		1,065		287		275		281	217	1,060
* Excludes Gain on Dispositions and Excise Tax Income.
Depreciation and Amortization ($ Millions)
Marketing and Other	20	21		21		21		83		19		19		20	21	79
Specialties	1	2		3		6		12		5		4		5	4	18
Total	21	23		24		27		95		24		23		25	25	97
Operating and SG&A Expense ($ Millions)
Marketing and Other	274	284		295		281		1,134		254		270		292	267	1,083
Specialties	32	30		35		34		131		34		35		34	38	141
Total	306	314		330		315		1,265		288		305		326	305	1,224
Marketing Petroleum Products Sales (MB/D)
U.S. Marketing
Gasoline	1,030	1,142		1,093		1,142		1,102		974		1,174		1,158	1,143	1,113
Distillates	748	784		750		864		787		689		775		792	788	761
Other	—	—		—		—		—		—		—		—	—	—
Total	1,778	1,926		1,843		2,006		1,889		1,663		1,949		1,950	1,931	1,874
International Marketing
Gasoline	89	95		95		95		93		88		94		95	93	92
Distillates	196	186		190		196		192		193		185		193	194	192
Other	16	19		17		17		17		16		14		15	18	16
Total	301	300		302		308		302		297		293		303	305	300
Worldwide Marketing
Gasoline	1,119	1,237		1,188		1,237		1,195		1,062		1,268		1,253	1,236	1,205
Distillates	944	970		940		1,060		979		882		960		985	982	953
Other	16	19		17		17		17		16		14		15	18	16
Total	2,079	2,226		2,145		2,314		2,191		1,960		2,242		2,253	2,236	2,174
Foreign Currency Gains (Losses) After-Tax ($ Millions)	—	(3	)	(3	)	(2	)	(8	)	(1	)	(3	)	—	—	(4	)

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CORPORATE AND OTHER
	2014										2015
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Corporate and Other Net Income (Loss) Attributable to Phillips 66 ($ Millions)	(81	)	(121	)	(91	)	(100	)	(393	)	(125	)	(123	)	(116	)	(126	)	(490	)
Detail of Net Income (Loss) Attributable to Phillips 66 ($ Millions)
Net interest expense	(41	)	(39	)	(36	)	(44	)	(160	)	(53	)	(46	)	(43	)	(44	)	(186	)
Corporate overhead	(40	)	(44	)	(32	)	(40	)	(156	)	(45	)	(36	)	(37	)	(39	)	(157	)
Technology	(13	)	(14	)	(14	)	(17	)	(58	)	(14	)	(15	)	(15	)	(16	)	(60	)
Other	13		(24	)	(9	)	1		(19	)	(13	)	(26	)	(21	)	(27	)	(87	)
Total	(81	)	(121	)	(91	)	(100	)	(393	)	(125	)	(123	)	(116	)	(126	)	(490	)
Before-Tax Net Interest Expense ($ Millions)
Interest expense	(69	)	(69	)	(66	)	(83	)	(287	)	(102	)	(105	)	(105	)	(104	)	(416	)
Capitalized interest	1		3		6		10		20		16		26		34		30		106
Interest revenue	5		6		5		5		21		5		9		5		6		25
Total	(63	)	(60	)	(55	)	(68	)	(246	)	(81	)	(70	)	(66	)	(68	)	(285	)
Foreign Currency Gains (Losses) After-Tax ($ Millions)	—		—		—		—		—		—		—		—		—		—
Phillips 66 Total Company Debt
Total Debt ($ Millions)*	6,188		6,183		6,183		8,635		8,635		8,892		8,909		8,897		8,887		8,887
Debt-to-Capital Ratio (%)	22	%	22	%	22	%	28	%	28	%	28	%	28	%	27	%	27	%	27	%
*Prior period amounts have been retrospectively adjusted for Accounting Standards Update No. 2015-03.
Total Equity ($ Millions)	21,829		21,955		22,194		22,037		22,037		22,595		23,223		24,032		23,938		23,938

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NON-GAAP FINANCIAL MEASURES RECONCILIATION
	Millions of Dollars
	2014										2015
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Reconciliation of Midstream Net Income to Adjusted EBITDA
Midstream net income	194		117		124		107		542		78		(62	)	116		(58	)	74
Plus:
Provision for income taxes	108		63		70		68		309		38		(37	)	57		15		73
Depreciation and amortization	19		21		24		27		91		26		27		33		41		127
Midstream EBITDA	321		201		218		202		942		142		(72	)	206		(2	)	274
Adjustments (pretax):
EBITDA attributable to Phillips 66 noncontrolling interests	(8	)	(12	)	(13	)	(12	)	(45	)	(16	)	(17	)	(20	)	(20	)	(73	)
Proportional share of selected equity affiliates income taxes	2		—		2		(1	)	3		1		(2	)	—		(49	)	(50	)
Proportional share of selected equity affiliates net interest	30		31		29		28		118		32		33		34		34		133
Proportional share of selected equity affiliates depreciation and amortization	39		36		37		38		150		40		41		42		43		166
Lower-of-cost-or-market inventory adjustments	—		—		—		2		2		—		—		—		—		—
Impairments by equity affiliates	—		—		—		—		—		—		194		4		168		366
Asset disposition	—		—		—		—		—		—		—		(30	)	—		(30	)
Pension settlement expenses	—		—		—		—		—		—		—		9		—		9
Midstream Adjusted EBITDA*	384		256		273		257		1,170		199		177		245		174		795
* Proportional share of selected equity affiliates is net of noncontrolling interests.
Reconciliation of Chemicals Net Income to Adjusted EBITDA
Chemicals net income	316		324		230		267		1,137		203		295		252		212		962
Plus:
Provision for income taxes	126		142		98		129		495		88		121		108		36		353
Chemicals EBITDA	442		466		328		396		1,632		291		416		360		248		1,315
Adjustments (pretax):
Proportional share of selected equity affiliates income taxes	27		28		35		21		111		22		25		26		18		91
Proportional share of selected equity affiliates net interest	3		1		2		3		9		2		1		2		2		7
Proportional share of selected equity affiliates depreciation and amortization	62		62		64		70		258		65		65		65		69		264
Impairments by equity affiliates	—		—		88		—		88		—		—		20		4		24
Lower-of-cost-or-market inventory adjustments	—		—		—		3		3		—		—		—		—		—
Chemicals Adjusted EBITDA	534		557		517		493		2,101		380		507		473		341		1,701
Reconciliation of Refining Net Income to Adjusted EBITDA
Refining net income	306		390		558		517		1,771		538		604		1,003		410		2,555
Plus:
Provision for income taxes	202		257		301		(64	)	696		226		328		485		65		1,104
Depreciation and amortization	172		174		178		180		704		177		183		187		191		738
Refining EBITDA	680		821		1,037		633		3,171		941		1,115		1,675		666		4,397
Adjustments (pretax):
Proportional share of selected equity affiliates income taxes	—		1		—		2		3		—		(2	)	—		(1	)	(3	)
Proportional share of selected equity affiliates net interest	(19	)	—		—		—		(19	)	—		—		—		—		—
Proportional share of selected equity affiliates depreciation and amortization	61		61		61		62		245		63		63		62		64		252
Asset dispositions	—		—		—		(145	)	(145	)	(8	)	—		—		—		(8	)
Impairments	—		—		—		131		131		—		—		—		—		—
Pending claims and settlements	—		—		—		23		23		—		—		30		—		30
Lower-of-cost-or-market inventory adjustments	—		—		—		40		40		—		—		—		53		53
Pension settlement expenses	—		—		—		—		—		—		—		49		4		53
Refining Adjusted EBITDA	722		883		1,098		746		3,449		996		1,176		1,816		786		4,774
Reconciliation of Marketing and Specialties Net Income to Adjusted EBITDA
Marketing and Specialties net income	137		162		368		367		1,034		304		314		338		231		1,187
Plus:
Provision for income taxes	68		86		127		160		441		102		96		176		91		465
Interest revenue	—		—		—		—		—		—		(2	)	—		—		(2	)
Depreciation and amortization	21		23		24		27		95		24		23		25		25		97
Marketing and Specialties EBITDA	226		271		519		554		1,570		430		431		539		347		1,747
Adjustments (pretax):
Asset dispositions	—		—		(109	)	(16	)	(125	)	(110	)	(132	)	—		—		(242	)
Pending claims and settlements	—		—		—		(44	)	(44	)	—		—		—		—		—
Pension settlement expenses	—		—		—		—		—		—		—		10		1		11
Marketing and Specialties Adjusted EBITDA	226		271		410		494		1,401		320		299		549		348		1,516
Reconciliation of Phillips 66 Net Income to Adjusted EBITDA
Net income	1,578		872		1,189		1,158		4,797		997		1,025		1,592		666		4,280
Less:
Income from discontinued operations	706		—		—		—		706		—		—		—		—		—
Plus:
Provision for income taxes	426		487		538		203		1,654		391		440		767		166		1,764
Net interest expense	63		60		55		68		246		81		67		66		69		283
Depreciation and amortization	234		239		249		273		995		253		274		270		281		1,078
Phillips 66 EBITDA	1,595		1,658		2,031		1,702		6,986		1,722		1,806		2,695		1,182		7,405
Adjustments (pretax):
EBITDA attributable to Phillips 66 noncontrolling interests	(8	)	(12	)	(13	)	(12	)	(45	)	(16	)	(17	)	(20	)	(20	)	(73	)
Proportional share of selected equity affiliates income taxes	29		29		37		22		117		23		21		26		(32	)	38
Proportional share of selected equity affiliates net interest	14		32		31		31		108		34		34		36		36		140
Proportional share of selected equity affiliates depreciation and amortization	162		159		162		170		653		168		169		169		176		682
Asset dispositions	—		—		(109	)	(161	)	(270	)	(118	)	(132	)	(30	)	—		(280	)
Impairments	—		—		—		131		131		—		—		—		—		—
Impairments by equity affiliates	—		—		88		—		88		—		194		24		172		390
Pending claims and settlements	—		—		—		(21	)	(21	)	—		—		30		—		30
Lower-of-cost-or-market inventory adjustments	—		—		—		45		45		—		—		—		53		53
Pension settlement expenses	—		—		—		—		—		—		—		75		5		80
Phillips 66 Adjusted EBITDA	1,792		1,866		2,227		1,907		7,792		1,813		2,075		3,005		1,572		8,465
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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