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): July 27, 2018

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.)

2331 CityWest Blvd., 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))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.02 Results of Operations and Financial Condition.

On July 27, 2018, Phillips 66 issued a press release announcing the company's financial and operating results for the quarter ended June 30, 2018. A copy of the press release is furnished as Exhibit 99.1 hereto and incorporated herein by reference. Additional financial and operating information about the quarter is furnished as Exhibit 99.2 hereto and incorporated herein by reference.

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

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

99.1	—	Press release issued by Phillips 66 on July 27, 2018.
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

Date: July 27, 2018

3

EXHIBIT INDEX

Exhibit
No.	Description

99.1 Press release issued by Phillips 66 on July 27, 2018.

99.2 Supplemental financial and operating information.

4

EX-99.1

Phillips 66 Reports Second-Quarter Earnings of $1.3 Billion (Adjusted Earnings of $1.3 Billion)

Exhibit 99.1

Phillips 66 Reports Second-Quarter Earnings of $1.3 Billion

or $2.84 Per Share

Adjusted earnings of $1.3 billion or $2.80 per share

Highlights

• Achieved 100 percent utilization in Refining

• CPChem's new ethane cracker exceeding design rates

• Generated $2.4 billion in cash from operations

• Returned $602 million to shareholders through dividends and share repurchases

• Increased quarterly dividend by 14 percent

• Began construction of the 300,000 BPD Sweeny Hub NGL expansion project

• Phillips 66 Partners recently completed Gray Oak Pipeline open season

HOUSTON, July 27, 2018 – Phillips 66 (NYSE: PSX), an energy manufacturing and logistics company, announces second-quarter 2018 earnings of $1.3 billion, compared with $524 million in the first quarter of 2018. Excluding special items of $17 million in the second quarter, adjusted earnings were $1.3 billion, compared with first-quarter adjusted earnings of $512 million.

“Our diversified portfolio generated strong earnings and cash flows this quarter,” said Greg Garland, chairman and CEO of Phillips 66. “We advanced strategic growth initiatives and continued to reward our shareholders. In Refining, we operated at full capacity and continued to capture the benefits of advantaged feedstocks through our integrated supply network. CPChem achieved full operations at its new U.S. Gulf Coast petrochemicals assets, contributing to solid earnings growth. In Midstream, the expansion of our Sweeny Hub will further grow and optimize our NGL value chain. Most recently, Phillips 66 Partners completed the Gray Oak Pipeline open season to capitalize on growing Permian crude production.”

“We returned $602 million to shareholders through dividends and share repurchases this quarter. For the year, we have returned $4.4 billion to shareholders. We demonstrated our commitment to a secure, competitive and growing dividend with a 14 percent increase in the second quarter, resulting in a 27 percent compound annual growth rate since 2012.”

Page 1

Phillips 66 Reports Second-Quarter Earnings of $1.3 Billion (Adjusted Earnings of $1.3 Billion)

Midstream

	Millions of Dollars
	Net Income			Adjusted Net Income
	Q2 2018		Q1 2018	Q2 2018	Q1 2018
Transportation	$	137	136	137	136
NGL and Other	50		73	50	73
DCP Midstream	15		24	15	24
Midstream	$	202	233	202	233

Midstream second-quarter net income was $202 million, compared with $233 million in the first quarter of 2018.

Transportation adjusted net income for the second quarter of 2018 was $137 million, in line with the prior quarter.

NGL and Other second-quarter adjusted net income of $50 million was $23 million lower than first-quarter adjusted net income of $73 million, mainly reflecting positive inventory impacts in the first quarter.

The company’s equity investment in DCP Midstream generated adjusted net income of $15 million in the second quarter, a $9 million decrease from the first quarter, primarily due to the timing of incentive distributions.

Chemicals

	Millions of Dollars
	Net Income					Adjusted Net Income
	Q2 2018			Q1 2018		Q2 2018		Q1 2018
Olefins and Polyolefins (O&P)	$	247		224		247		224
Specialties, Aromatics and Styrenics (SA&S)	32			18		32		18
Other	(17		)	(10	)	(17	)	(10	)
Chemicals	$	262		232		262		232

The Chemicals segment reflects Phillips 66's equity investment in Chevron Phillips Chemical Company LLC (CPChem). Chemicals' second-quarter net income was $262 million, compared with $232 million in the first quarter of 2018.

CPChem's O&P business contributed $247 million of adjusted net income to the Chemicals segment in the second quarter of 2018, compared with $224 million in the first quarter. The increase reflects ramp-up of the new U.S. Gulf Coast petrochemicals assets. Global O&P utilization was 95 percent in the second quarter.

CPChem's SA&S business contributed $32 million of adjusted net income in the second quarter of 2018, an increase of $14 million from the prior quarter. The increase primarily reflects reduced downtime following turnarounds in the first quarter.

The $7 million increase in CPChem's Other adjusted net costs in the second quarter mainly reflects lower capitalized interest following completion of the U.S. Gulf Coast Petrochemicals Project in the first quarter.

Page 2

Phillips 66 Reports Second-Quarter Earnings of $1.3 Billion (Adjusted Earnings of $1.3 Billion)

Refining

	Millions of Dollars
	Net Income			Adjusted Net Income
	Q2 2018		Q1 2018	Q2 2018	Q1 2018
Refining	$	910	91	911	89

Refining second-quarter net income was $910 million, compared with $91 million in the first quarter of 2018.

Refining adjusted net income was $911 million in the second quarter of 2018, compared with $89 million in the first quarter of 2018. The increase was due to higher realized margins and volumes, as well as lower turnaround costs.

Realized margins for the quarter increased to $12.28 per barrel from $9.29 per barrel in the first quarter, reflecting improved market crack spreads and wider crude differentials. Gasoline and distillate market cracks were up 20 percent and 4 percent, respectively. The widening of the Brent–WTI spread, larger discounts on U.S. inland crudes, and improved heavy crude differentials all contributed to increased realized margins.

Phillips 66’s worldwide crude utilization rate was 100 percent, up from 89 percent in the prior quarter. Pre-tax turnaround costs for the second quarter were $60 million, down from $245 million in the first quarter.

Marketing and Specialties

	Millions of Dollars
	Net Income			Adjusted Net Income
	Q2 2018		Q1 2018	Q2 2018	Q1 2018
Marketing and Other	$	187	139	145	129
Specialties	50		45	50	45
Marketing and Specialties	$	237	184	195	174

Marketing and Specialties (M&S) second-quarter net income was $237 million, compared with $184 million in the first quarter of 2018. M&S results in both periods included benefits from biodiesel blender tax credits.

Adjusted net income for Marketing and Other was $145 million in the second quarter of 2018, an increase of $16 million from the first quarter. The increase was largely due to seasonally higher margins and volumes, partially offset by higher operating costs and foreign currency impacts. Refined product exports in the second quarter rose to 200,000 barrels per day (BPD) from 190,000 BPD in the prior quarter.

Specialties generated adjusted net income of $50 million during the second quarter, compared with $45 million in the prior quarter. Second-quarter adjusted net income reflects improved base oil margins.

Page 3

Phillips 66 Reports Second-Quarter Earnings of $1.3 Billion (Adjusted Earnings of $1.3 Billion)

Corporate and Other

	Millions of Dollars
	Net Income					Adjusted Net Income
	Q2 2018			Q1 2018		Q2 2018		Q1 2018
Corporate and Other	$	(207	)	(155	)	(183	)	(162	)

Corporate and Other second-quarter net costs were $207 million, compared with net costs of $155 million in the first quarter of 2018. Net costs in both periods included adjustments to the provisional income tax benefit from U.S. tax reform recorded in the fourth quarter of 2017.

The $21 million increase in Corporate and Other adjusted net costs in the second quarter was mainly due to higher net interest expense and tax expense.

Financial Position, Liquidity and Return of Capital

Phillips 66 generated $2.4 billion in cash from operations during the second quarter, including $610 million of cash distributions from equity affiliates. Excluding working capital impacts, operating cash flow was $1.7 billion.

During the quarter, Phillips 66 funded $230 million in share repurchases, $372 million in dividends and $538 million of capital expenditures and investments. Additionally, the company repaid $250 million of debt in the quarter. The company ended the quarter with 464 million shares outstanding.

As of June 30, 2018, cash and cash equivalents were $1.9 billion, and consolidated debt was $11.4 billion, including $2.9 billion at Phillips 66 Partners (PSXP). The company's consolidated debt-to-capital ratio and net-debt-to-capital ratio were 31 percent and 28 percent, respectively. Excluding PSXP, the debt-to-capital ratio was 27 percent and the net-debt-to-capital ratio was 23 percent.

Strategic Update

In Midstream, the company is expanding the Sweeny Hub, which is an integrated natural gas liquids (NGL) fractionation, storage and export complex strategically located on the Texas Gulf Coast with access to petrochemicals, fuels and liquefied petroleum gas (LPG) export markets. The expansion includes two 150,000-BPD-fractionators, associated pipeline infrastructure, and 6 million barrels of additional storage capacity at Phillips 66 Partners’ Clemens Caverns. DCP Midstream has committed to supply Y-grade NGL feedstock and has an option to acquire up to a 30 percent ownership interest in the fractionators. Upon completion of the expansion, expected in late 2020, the Sweeny Hub will have 400,000 BPD of fractionation capability and access to 15 million barrels of storage capacity.

Phillips 66 Partners recently completed the expansion open season to determine the scope and capacity of the Gray Oak Pipeline system. The pipeline will have initial capacity of 800,000 BPD based on shipper commitments of 700,000 BPD and the reservation of capacity for walk-up shippers. The pipeline is expandable to approximately 1 million BPD subject to additional shipper commitments. Gray Oak will provide crude oil transportation from the Permian and Eagle Ford to destinations in Corpus Christi and Sweeny/Freeport, including the Phillips 66 Sweeny Refinery. Phillips 66 Partners will be the largest equity owner in this pipeline project with 75 percent interest. Third parties have options to acquire up to 32.75 percent, which could result in the Partnership owning a 42.25 percent share. The pipeline is expected to be in service by the end of 2019, with total cost of approximately $2 billion.

Page 4

Phillips 66 Reports Second-Quarter Earnings of $1.3 Billion (Adjusted Earnings of $1.3 Billion)

In Corpus Christi, the Gray Oak Pipeline will connect to the new South Texas Gateway Terminal under development by Buckeye Partners, L.P. The marine terminal will have an initial storage capacity of 3.4 million barrels and is expected to begin operations by the end of 2019. Phillips 66 Partners owns a 25 percent interest in the joint venture that owns the terminal.

At the Beaumont Terminal, the company recently placed 1.3 million barrels of new crude oil storage into service, bringing the terminal’s total crude and products storage capacity to 12.4 million barrels. Additional crude oil tanks are under construction to increase storage capacity to 14.6 million barrels by the end of this year.

DCP Midstream is further expanding the Sand Hills Pipeline capacity and is expected to reach 485,000 BPD by the end of 2018. The pipeline transports NGL from the Permian Basin and Eagle Ford to the Texas Gulf Coast and is owned two-thirds by DCP Midstream and one-third by Phillips 66 Partners. Also in the Permian Basin, DCP Midstream has a 25 percent interest in the Gulf Coast Express Pipeline project that is designed to transport approximately 2 billion cubic feet per day (BCFD) of natural gas to Gulf Coast markets. The Gulf Coast Express Pipeline is anticipated to be completed in the fourth quarter of 2019. DCP Midstream is adding gas processing capacity in the DJ basin. The Mewbourn 3 plant is expected to be completed in the third quarter of 2018 and the O’Connor 2 plant is scheduled for completion in the second quarter of 2019.

In Chemicals, CPChem reached full operations at its new world-scale ethane cracker located at the Cedar Bayou facility in Baytown, Texas. The cracker has demonstrated 3.5 billion pounds per year capacity, which is 6 percent above original design.

In Refining, a project was approved for the Sweeny Refinery to optimize a fluid catalytic cracking (FCC) unit to increase production of higher-value petrochemical products and higher octane gasoline. The project is anticipated to be completed in mid-2020.

At the Lake Charles Refinery, crude unit modifications to run more domestic crudes and reduce feedstock costs have been completed. Additional improvements are anticipated in the fourth quarter that will further enhance refining returns. Phillips 66 Partners is constructing a 25,000 BPD isomerization unit at the refinery to increase production of higher octane gasoline blend components. Expected completion has been accelerated to the third quarter of 2019.

In Marketing, the company re-imaged 250 domestic sites during the second quarter, resulting in approximately 1,700 re-imaged U.S. sites since the program’s inception in 2015.

Page 5

Phillips 66 Reports Second-Quarter Earnings of $1.3 Billion (Adjusted Earnings of $1.3 Billion)

Investor Webcast

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

Earnings
	Millions of Dollars
	2018							2017
	Q2			Q1		Jun YTD		Q2		Jun YTD
Midstream	$	202		233		435		96		208
Chemicals	262			232		494		196		377
Refining	910			91		1,001		224		483
Marketing and Specialties	237			184		421		214		355
Corporate and Other	(207		)	(155	)	(362	)	(149	)	(279	)
Net Income	1,404			585		1,989		581		1,144
Less: Noncontrolling Interests	65			61		126		31		59
Phillips 66	$	1,339		524		1,863		550		1,085
Adjusted Earnings
	Millions of Dollars
	2018							2017
	Q2			Q1		Jun YTD		Q2		Jun YTD
Midstream	$	202		233		435		101		213
Chemicals	262			232		494		196		397
Refining	911			89		1,000		233		231
Marketing and Specialties	195			174		369		218		359
Corporate and Other	(183		)	(162	)	(345	)	(148	)	(278	)
Net Income	1,387			566		1,953		600		922
Less: Noncontrolling Interests	65			54		119		31		59
Phillips 66	$	1,322		512		1,834		569		863

Page 6

Phillips 66 Reports Second-Quarter Earnings of $1.3 Billion (Adjusted Earnings of $1.3 Billion)

About Phillips 66

Phillips 66 is a diversified energy manufacturing and logistics company. With a portfolio of Midstream, Chemicals, Refining, and Marketing and Specialties businesses, the company processes, transports, stores and markets fuels and products globally. Phillips 66 Partners, the company's master limited partnership, is integral to the portfolio. Headquartered in Houston, the company has 14,400 employees committed to safety and operating excellence. Phillips 66 had $55 billion of assets as of June 30, 2018. For more information, visit www.phillips66.com or follow us on Twitter @Phillips66Co.

- # # # -

CONTACTS
Jeff Dietert (investors)	Rosy Zuklic (investors)	Dennis Nuss (media)
832-765-2297	832-765-2297	832-765-1850
jeff.dietert@p66.com	rosy.zuklic@p66.com	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,” “continues,” “intends,” “will,” “would,” “objectives,” “goals,” “projects,” “efforts,” “strategies” and similar expressions are used to identify such forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements relating to Phillips 66’s operations (including joint venture operations) are based on management’s expectations, estimates and projections about the company, its interests and the energy industry in general on the date this news release was prepared. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Factors that could cause actual results or events to differ materially from those described in the forward-looking statements include fluctuations in NGL, crude oil, and natural gas prices, and petrochemical and refining margins; unexpected changes in costs for constructing, modifying or operating our facilities; unexpected difficulties in manufacturing, refining or transporting our products; lack of, or disruptions in, adequate and reliable transportation for our NGL, crude oil, natural gas, and refined products; potential liability from litigation or for remedial actions, including removal and reclamation obligations under environmental regulations; limited access to capital or significantly higher cost of capital related to illiquidity or uncertainty in the domestic or international financial markets; and other economic, business, competitive and/or regulatory factors affecting Phillips 66’s businesses generally as set forth in our filings with the Securities and Exchange Commission. Phillips 66 is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

Use of Non-GAAP Financial Information—This news release includes the terms adjusted earnings, adjusted earnings per share, and adjusted net income. These are non-GAAP financial measures that are included to help facilitate comparisons of company operating performance across periods and with peer companies, by excluding items that do not reflect the core operating results of our businesses in the current period. This release includes realized refining margin, a non-GAAP financial measure that demonstrates how well we performed relative to benchmark industry margins. This release also includes a debt-to-capital ratio excluding PSXP. This non-GAAP measure is provided to differentiate the capital structure of Phillips 66 compared with that of Phillips 66 Partners.

References in the release to earnings refer to net income attributable to Phillips 66. References to adjusted earnings refer to earnings excluding special items, as detailed in the tables to this release. References to net income are inclusive of noncontrolling interests.

Page 7

Phillips 66 Reports Second-Quarter Earnings of $1.3 Billion (Adjusted Earnings of $1.3 Billion)

	Millions of Dollars
	Except as Indicated
	2018							2017
	Q2			Q1		Jun YTD		Q2		Jun YTD
Reconciliation of Earnings to Adjusted Earnings
Consolidated Earnings	$	1,339		524		1,863		550		1,085
Pre-tax adjustments:
Pending claims and settlements	—			—		—		(24	)	(24	)
Pension settlement expense	—			—		—		55		55
Impairments by equity affiliates	—			—		—		—		33
Certain tax impacts	(55		)	(15	)	(70	)	—		—
Gain on consolidation of business	—			—		—		—		(423	)
Tax impact of adjustments*	14			3		17		(12	)	137
U.S. tax reform	24			—		24		—		—
Adjusted earnings	$	1,322		512		1,834		569		863
Earnings per share of common stock (dollars)	$	2.84		1.07		3.87		1.06		2.07
Adjusted earnings per share of common stock (dollars)†	$	2.80		1.04		3.81		1.09		1.65
Reconciliation of Net Income to Adjusted Net Income by Segment
Midstream Net Income	$	202		233		435		96		208
Pre-tax adjustments:
Pension settlement expense	—			—		—		8		8
Tax impact of adjustments*	—			—		—		(3	)	(3	)
Adjusted net income	$	202		233		435		101		213
Chemicals Net Income	$	262		232		494		196		377
Pre-tax adjustments:
Impairments by equity affiliates	—			—		—		—		33
Tax impact of adjustments*	—			—		—		—		(13	)
Adjusted net income	$	262		232		494		196		397
Refining Net Income	$	910		91		1,001		224		483
Pre-tax adjustments:
Pending claims and settlements	—			—		—		(21	)	(21	)
Gain on consolidation of business	—			—		—		—		(423	)
Certain tax impacts	1			(2	)	(1	)	—		—
Pension settlement expense	—			—		—		35		35
Tax impact of adjustments*	—			—		—		(5	)	157
Adjusted net income	$	911		89		1,000		233		231

Page 8

Phillips 66 Reports Second-Quarter Earnings of $1.3 Billion (Adjusted Earnings of $1.3 Billion)

	Millions of Dollars
	Except as Indicated
	2018							2017
	Q2			Q1		Jun YTD		Q2		Jun YTD
Reconciliation of Net Income to Adjusted Net Income by Segment
Marketing and Specialties Net Income	$	237		184		421		214		355
Pre-tax adjustments:
Pension settlement expense	—			—		—		7		7
Certain tax impacts	(56		)	(13	)	(69	)	—		—
Tax impact of adjustments*	14			3		17		(3	)	(3	)
Adjusted net income	$	195		174		369		218		359
Corporate and Other Net Loss	$	(207	)	(155	)	(362	)	(149	)	(279	)
Pre-tax adjustments:
Pending claims and settlements	—			—		—		(3	)	(3	)
Pension settlement expense	—			—		—		5		5
Tax impact of adjustments*	—			—		—		(1	)	(1	)
U.S. tax reform	24			(7	)	17		—		—
Adjusted net loss	$	(183	)	(162	)	(345	)	(148	)	(278	)
*We generally tax effect taxable U.S.-based special items using a combined federal and state statutory income tax rate of approximately 25 percent beginning in 2018, and approximately 38 percent for periods prior to 2018. Taxable special items attributable to foreign locations likewise use a local statutory income tax rate. Nontaxable events reflect zero income tax. These events include, but are not limited to, most goodwill impairments, transactions legislatively exempt from income tax, transactions related to entities for which we have made an assertion that the undistributed earnings are permanently reinvested, or transactions occurring in jurisdictions with a valuation allowance.
†Weighted-average diluted shares outstanding and income allocated to participating securities, if applicable, in the adjusted earnings per share calculation are the same as those used in the GAAP diluted earnings per share calculation.

Page 9

Phillips 66 Reports Second-Quarter Earnings of $1.3 Billion (Adjusted Earnings of $1.3 Billion)

	Millions of Dollars
	Except as Indicated
	2018
	Q2			Q1
Realized Refining Margins
Net income	$	910		91
Plus:
Income tax expense	280			21
Taxes other than income taxes	72			77
Depreciation, amortization and impairments	206			211
Selling, general and administrative expenses	47			41
Operating expenses	869			989
Equity in (earnings) losses of affiliates	(214		)	64
Other segment income, net	(19		)	(9	)
Proportional share of refining gross margins contributed by equity affiliates	409			227
Realized refining margins	$	2,560		1,712
Total processed inputs (thousands of barrels)	186,257			167,712
Adjusted total processed inputs (thousands of barrels)*	208,395			184,241
Net income (dollars per barrel)**	$	4.89		0.54
Realized refining margins (dollars per barrel)***	$	12.28		9.29
*Adjusted total processed inputs include our proportional share of processed inputs of an equity affiliate.
**Net income divided by total processed inputs.
***Realized refining margins per barrel, as presented, are calculated using the underlying realized refining margin amounts, in dollars, divided by adjusted total processed inputs, in barrels. As such, recalculated per barrel amounts using the rounded margins and barrels presented may differ from the presented per barrel amounts due to rounding.

	Millions of Dollars
	June 30, 2018
Debt-to-Capital Ratio
	Phillips 66 Consolidated			PSXP*	Phillips 66 Excluding PSXP
Total Debt	$	11,364		2,946	8,418
Total Equity	24,960			2,391	22,569
Debt-to-Capital Ratio	31		%		27	%
Total Cash	$	1,884		151	1,733
Net-Debt-to-Capital Ratio	28		%		23	%
*PSXP's third-party debt and Phillips 66's noncontrolling interests attributable to PSXP.

Page 10

EX-99.2

	Exhibit 99.2
Phillips 66 Earnings Release Supplemental Data

CONSOLIDATED INCOME STATEMENT
	Millions of Dollars
	2018								2017
	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*	23,595		28,980				52,575		22,894		24,087		25,627		29,746		102,354
Equity in earnings of affiliates	424		743				1,167		365		462		530		375		1,732
Net gain on dispositions	17		—				17		1		14		—		—		15
Other income	10		13				23		452		18		49		2		521
Total Revenues and Other Income	24,046		29,736				53,782		23,712		24,581		26,206		30,123		104,622
Costs and Expenses
Purchased crude oil and products	21,138		25,747				46,885		17,679		18,353		19,463		23,914		79,409
Operating expenses	1,246		1,143				2,389		1,270		1,137		1,134		1,158		4,699
Selling, general and administrative expenses	386		432				818		384		439		435		437		1,695
Depreciation and amortization	336		337				673		315		320		337		346		1,318
Impairments	—		6				6		2		15		1		6		24
Taxes other than income taxes*	110		109				219		3,156		3,356		3,456		3,494		13,462
Accretion on discounted liabilities	6		6				12		5		6		5		6		22
Interest and debt expense	123		135				258		105		107		112		114		438
Foreign currency transaction (gains) losses	(16	)	(14	)			(30	)	(1	)	—		7		(6	)	—
Total Costs and Expenses	23,329		27,901				51,230		22,915		23,733		24,950		29,469		101,067
Income before income taxes	717		1,835				2,552		797		848		1,256		654		3,555
Income tax expense (benefit)	132		431				563		234		267		407		(2,601	)	(1,693	)
Net Income	585		1,404				1,989		563		581		849		3,255		5,248
Less: net income attributable to noncontrolling interests	61		65				126		28		31		26		57		142
Net Income Attributable to Phillips 66	524		1,339				1,863		535		550		823		3,198		5,106
* Includes excise taxes on sales of petroleum products for periods prior to the adoption of Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2014-09 on January 1, 2018:									3,036		3,252		3,376		3,390		13,054
Net Income Attributable to Phillips 66 Per Share of Common Stock (dollars)
Basic	1.07		2.86				3.89		1.02		1.06		1.60		6.29		9.90
Diluted	1.07		2.84				3.87		1.02		1.06		1.60		6.25		9.85
Weighted-Average Common Shares Outstanding (thousands)
Basic	487,065		468,331				477,647		521,647		517,785		512,923		508,148		515,090
Diluted	489,668		471,638				480,995		524,520		520,160		515,960		511,352		518,508
RECONCILIATION OF SEGMENT NET INCOME (LOSS) TO NET INCOME ATTRIBUTABLE TO PHILLIPS 66
	Millions of Dollars
	2018								2017
	1st Qtr		2nd Qtr		3rd Qtr	4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Midstream	233		202				435		112		96		117		139		464
Chemicals	232		262				494		181		196		121		27		525
Refining	91		910				1,001		259		224		550		371		1,404
Marketing and Specialties	184		237				421		141		214		208		123		686
Corporate and Other	(155	)	(207	)			(362	)	(130	)	(149	)	(147	)	2,595		2,169
Net Income	585		1,404				1,989		563		581		849		3,255		5,248
Less: net income attributable to noncontrolling interests	61		65				126		28		31		26		57		142
Net Income Attributable to Phillips 66	524		1,339				1,863		535		550		823		3,198		5,106
SUMMARY OF INCOME (LOSS) BEFORE INCOME TAXES BY SEGMENT
	Millions of Dollars
	2018								2017
	1st Qtr		2nd Qtr		3rd Qtr	4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Midstream	280		238				518		153		130		166		189		638
Chemicals	286		324				610		251		294		163		8		716
Refining	112		1,190				1,302		390		307		863		516		2,076
Marketing and Specialties	235		310				545		208		328		317		167		1,020
Corporate and Other	(196	)	(227	)			(423	)	(205	)	(211	)	(253	)	(226	)	(895	)
Consolidated	717		1,835				2,552		797		848		1,256		654		3,555
EFFECTIVE TAX RATES
	2018								2017
	1st Qtr		2nd Qtr		3rd Qtr	4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Midstream	16.8	%	15.1	%			16.0	%	26.8	%	26.2	%	29.5	%	26.5	%	27.3	%
Chemicals	18.9	%	19.1	%			19.0	%	27.9	%	33.3	%	25.8	%	(237.5	)%	26.7	%
Refining	18.8	%	23.5	%			23.1	%	33.6	%	27.0	%	36.3	%	28.1	%	32.4	%
Marketing and Specialties	21.7	%	23.5	%			22.8	%	32.2	%	34.8	%	34.4	%	26.3	%	32.7	%
Corporate and Other	20.9	%	8.8	%			14.4	%	36.6	%	29.4	%	41.9	%	1,248.2	%	342.3	%
Consolidated	18.4	%	23.5	%			22.1	%	29.4	%	31.5	%	32.4	%	(397.7	)%	(47.6	)%
RECONCILIATION OF ADJUSTED SEGMENT NET INCOME (LOSS) TO ADJUSTED NET INCOME ATTRIBUTABLE TO PHILLIPS 66
	Millions of Dollars
	2018								2017
	1st Qtr		2nd Qtr		3rd Qtr	4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Midstream
Transportation	136		137				273		78		74		98		108		358
NGL and Other	73		50				123		17		14		—		20		51
DCP Midstream	24		15				39		17		13		1		14		45
Total Midstream	233		202				435		112		101		99		142		454
Chemicals	232		262				494		201		196		153		121		671
Refining
Atlantic Basin/Europe	(73	)	131				58		(50	)	109		172		120		351
Gulf Coast	1		275				276		67		56		77		72		272
Central Corridor	203		392				595		62		29		198		192		481
West Coast	(42	)	113				71		(81	)	39		101		(26	)	33
Total Refining	89		911				1,000		(2	)	233		548		358		1,137
Marketing and Specialties
Marketing and Other	129		145				274		124		185		163		87		559
Specialties	45		50				95		17		33		48		37		135
Total Marketing and Specialties	174		195				369		141		218		211		124		694
Corporate and Other	(162	)	(183	)			(345	)	(130	)	(148	)	(127	)	(140	)	(545	)
Adjusted Net Income	566		1,387				1,953		322		600		884		605		2,411
Less: net income attributable to noncontrolling interests	54		65				119		28		31		26		57		142
Adjusted Net Income Attributable to Phillips 66	512		1,322				1,834		294		569		858		548		2,269

Page 1

SPECIAL ITEMS INCLUDED IN SEGMENT NET INCOME AND NET INCOME ATTRIBUTABLE TO PHILLIPS 66
(AFTER-TAX)
	Millions of Dollars
	2018								2017
	1st Qtr		2nd Qtr		3rd Qtr	4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Midstream
Pending claims and settlements	—		—				—		—		—		23		—		23
Hurricane-related costs	—		—				—		—		—		(3	)	(3	)	(6	)
Pension settlement expense	—		—				—		—		(5	)	(2	)	—		(7	)
Total Midstream	—		—				—		—		(5	)	18		(3	)	10
Chemicals
Impairments by equity affiliates	—		—				—		(20	)	—		—		(19	)	(39	)
Hurricane-related costs	—		—				—		—		—		(32	)	(75	)	(107	)
Total Chemicals	—		—				—		(20	)	—		(32	)	(94	)	(146	)
Refining
Pending claims and settlements	—		—				—		—		13		18		—		31
Certain tax impacts	2		(1	)			1		—		—		—		23		23
Hurricane-related costs	—		—				—		—		—		(8	)	(7	)	(15	)
Gain on consolidation of business	—		—				—		261		—		—		—		261
Pension settlement expense	—		—				—		—		(22	)	(8	)	(3	)	(33	)
Total Refining	2		(1	)			1		261		(9	)	2		13		267
Marketing and Specialties
Certain tax impacts	10		42				52		—		—		—		—		—
Hurricane-related costs	—		—				—		—		—		(1	)	—		(1	)
Pension settlement expense	—		—				—		—		(4	)	(2	)	(1	)	(7	)
Total Marketing and Specialties	10		42				52		—		(4	)	(3	)	(1	)	(8	)
Corporate and Other
Pending claims and settlements	—		—				—		—		2		(19	)	—		(17	)
U.S. tax reform	7		(24	)			(17	)	—		—		—		2,735		2,735
Pension settlement expense	—		—				—		—		(3	)	(1	)	—		(4	)
Total Corporate and Other	7		(24	)			(17	)	—		(1	)	(20	)	2,735		2,714
Noncontrolling Interests
U.S. tax reform	(7	)	—				(7	)	—		—		—		—		—
Total Noncontrolling Interests	(7	)	—				(7	)	—		—		—		—		—
Total Phillips 66	12		17				29		241		(19	)	(35	)	2,650		2,837
SPECIAL ITEMS INCLUDED IN NET INCOME BY BUSINESS LINES/REGIONS
(AFTER-TAX)
	Millions of Dollars
	2018								2017
	1st Qtr		2nd Qtr		3rd Qtr	4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Midstream
Transportation	—		—				—		—		—		21		(3	)	18
NGL and Other	—		—				—		—		(5	)	(3	)	—		(8	)
DCP Midstream	—		—				—		—		—		—		—		—
Total Midstream	—		—				—		—		(5	)	18		(3	)	10
Refining
Atlantic Basin/Europe	—		—				—		—		(2	)	(1	)	22		19
Gulf Coast	—		—				—		261		(3	)	(10	)	(8	)	240
Central Corridor	—		—				—		—		(2	)	(1	)	(1	)	(4	)
West Coast	2		(1	)			1		—		(2	)	14		—		12
Total Refining	2		(1	)			1		261		(9	)	2		13		267
Marketing and Specialties
Marketing and Other	10		42				52		—		(4	)	(3	)	(1	)	(8	)
Specialties	—		—				—		—		—		—		—		—
Total Marketing and Specialties	10		42				52		—		(4	)	(3	)	(1	)	(8	)
SPECIAL ITEMS INCLUDED IN INCOME BEFORE INCOME TAXES
(PRE-TAX)
	Millions of Dollars
	2018								2017
	1st Qtr		2nd Qtr		3rd Qtr	4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Midstream
Pending claims and settlements	—		—				—		—		—		37		—		37
Hurricane-related costs	—		—				—		—		—		(4	)	(6	)	(10	)
Pension settlement expense	—		—				—		—		(8	)	(3	)	(1	)	(12	)
Total Midstream	—		—				—		—		(8	)	30		(7	)	15
Chemicals
Impairments by equity affiliates	—		—				—		(33	)	—		—		(31	)	(64	)
Hurricane-related costs	—		—				—		—		—		(53	)	(122	)	(175	)
Total Chemicals	—		—				—		(33	)	—		(53	)	(153	)	(239	)
Refining
Pending claims and settlements	—		—				—		—		21		30		—		51
Certain tax impacts	2		(1	)			1		—		—		—		23		23
Hurricane-related costs	—		—				—		—		—		(12	)	(12	)	(24	)
Gain on consolidation of business	—		—				—		423		—		—		—		423
Pension settlement expense	—		—				—		—		(35	)	(13	)	(5	)	(53	)
Total Refining	2		(1	)			1		423		(14	)	5		6		420
Marketing and Specialties
Hurricane-related costs	—		—				—		—		—		(1	)	—		(1	)
Certain tax impacts	13		56				69		—		—		—		—		—
Pension settlement expense	—		—				—		—		(7	)	(3	)	(1	)	(11	)
Total Marketing and Specialties	13		56				69		—		(7	)	(4	)	(1	)	(12	)
Corporate and Other
Pending claims and settlements	—		—				—		—		3		(31	)	—		(28	)
Pension settlement expense	—		—				—		—		(5	)	(2	)	—		(7	)
U.S. tax reform	16		—				16		—		—		—		—		—
Total Corporate and Other	16		—				16		—		(2	)	(33	)	—		(35	)
Total Phillips 66	31		55				86		390		(31	)	(55	)	(155	)	149
By Business Lines/Regions
Midstream
Transportation	—		—				—		—		—		34		(5	)	29
NGL and Other	—		—				—		—		(8	)	(4	)	(2	)	(14	)
DCP Midstream	—		—				—		—		—		—		—		—
Total Midstream	—		—				—		—		(8	)	30		(7	)	15
Refining
Atlantic Basin/Europe	—		—				—		—		(4	)	(2	)	22		16
Gulf Coast	—		—				—		423		(5	)	(14	)	(14	)	390
Central Corridor	—		—				—		—		(3	)	(1	)	(2	)	(6	)
West Coast	2		(1	)			1		—		(2	)	22		—		20
Total Refining	2		(1	)			1		423		(14	)	5		6		420
Marketing and Specialties
Marketing and Other	13		56				69		—		(7	)	(4	)	(1	)	(12	)
Specialties	—		—				—		—		—		—		—		—
Total Marketing and Specialties	13		56				69		—		(7	)	(4	)	(1	)	(12	)

Page 2

CASH FLOW INFORMATION
	Millions of Dollars
	2018								2017
	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	585		1,404				1,989		563		581		849		3,255		5,248
Depreciation and amortization	336		337				673		315		320		337		346		1,318
Impairments	—		6				6		2		15		1		6		24
Accretion on discounted liabilities	6		6				12		5		6		5		6		22
Deferred income taxes	101		28				129		493		264		27		(2,670	)	(1,886	)
Undistributed equity earnings	119		(133	)			(14	)	(212	)	(40	)	(291	)	27		(516	)
Net gain on dispositions	(17	)	—				(17	)	(1	)	(14	)	—		—		(15	)
Gain on consolidation of business	—		—				—		(423	)	—		—		—		(423	)
Other	173		24				197		6		92		(332	)	48		(186	)
Net working capital changes	(815	)	692				(123	)	(1,297	)	641		(195	)	913		62
Net Cash Provided by (Used in) Operating Activities	488		2,364				2,852		(549	)	1,865		401		1,931		3,648
Cash Flows From Investing Activities
Capital expenditures and investments	(328	)	(538	)			(866	)	(470	)	(458	)	(367	)	(537	)	(1,832	)
Proceeds from asset dispositions*	17		12				29		9		42		14		21		86
Collection of advances/loans—related parties	—		—				—		325		—		—		1		326
Restricted cash received from consolidation of business	—		—				—		318		—		—		—		318
Other	(46	)	62				16		(24	)	(37	)	(28	)	45		(44	)
Net Cash Provided by (Used in) Investing Activities	(357	)	(464	)			(821	)	158		(453	)	(381	)	(470	)	(1,146	)
Cash Flows From Financing Activities
Issuance of debt	1,509		—				1,509		712		1,891		480		425		3,508
Repayment of debt	(7	)	(253	)			(260	)	(773	)	(2,137	)	(251	)	(517	)	(3,678	)
Issuance of common stock	10		20				30		4		2		17		12		35
Repurchase of common stock	(3,513	)	(230	)			(3,743	)	(285	)	(381	)	(461	)	(463	)	(1,590	)
Dividends paid on common stock	(327	)	(372	)			(699	)	(326	)	(360	)	(356	)	(353	)	(1,395	)
Distributions to noncontrolling interests	(45	)	(51	)			(96	)	(24	)	(30	)	(29	)	(37	)	(120	)
Net proceeds from issuance of Phillips 66 Partners LP common and preferred units	9		58				67		40		131		—		1,034		1,205
Other	(45	)	(13	)			(58	)	(34	)	(20	)	(12	)	(10	)	(76	)
Net Cash Provided by (Used in) Financing Activities	(2,409	)	(841	)			(3,250	)	(686	)	(904	)	(612	)	91		(2,111	)
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash	1		(17	)			(16	)	2		17		(22	)	20		17
Net Change in Cash, Cash Equivalents and Restricted Cash	(2,277	)	1,042				(1,235	)	(1,075	)	525		(614	)	1,572		408
Cash, cash equivalents and restricted cash at beginning of period	3,119		842				3,119		2,711		1,636		2,161		1,547		2,711
Cash, Cash Equivalents and Restricted Cash at End of Period	842		1,884				1,884		1,636		2,161		1,547		3,119		3,119
* Includes return of investments in equity affiliates.
CAPITAL PROGRAM
	Millions of Dollars
	2018								2017
	1st Qtr		2nd Qtr		3rd Qtr	4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Consolidated Capital Expenditures and Investments
Midstream	136		339				475		182		199		178		212		771
Chemicals	—		—				—		—		—		—		—		—
Refining	172		153				325		259		216		148		230		853
Marketing and Specialties	13		15				28		15		23		27		43		108
Corporate and Other	7		31				38		14		20		14		52		100
Total Consolidated	328		538				866		470		458		367		537		1,832
Proportional Share of Select Equity Affiliates Capital Expenditures and Investments*
DCP Midstream (Midstream)	95		98				193		44		60		62		102		268
CPChem (Chemicals)	161		63				224		256		131		119		270		776
WRB Refining (Refining)	40		35				75		42		22		27		35		126
Select Equity Affiliates	296		196				492		342		213		208		407		1,170
Total Capital Program*
Midstream	231		437				668		226		259		240		314		1,039
Chemicals	161		63				224		256		131		119		270		776
Refining	212		188				400		301		238		175		265		979
Marketing and Specialties	13		15				28		15		23		27		43		108
Corporate and Other	7		31				38		14		20		14		52		100
Total Capital Program	624		734				1,358		812		671		575		944		3,002
* 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 LP.

Page 3

MIDSTREAM
	2018					2017
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr		3rd Qtr		4th Qtr	YTD
Midstream Net Income (Loss) ($ Millions)
Transportation	136	137			273	78	74		119		105	376
NGL and Other	73	50			123	17	9		(3	)	20	43
DCP Midstream	24	15			39	17	13		1		14	45
Midstream Net Income (Loss)	233	202			435	112	96		117		139	464
Midstream Income (Loss) before Income Taxes ($ Millions)
Transportation	163	164			327	107	102		174		147	530
NGL and Other	86	53			139	19	6		(9	)	16	32
DCP Midstream	31	21			52	27	22		1		26	76
Midstream Income (Loss) before Income Taxes	280	238			518	153	130		166		189	638
Midstream Adjusted EBITDA ($ Millions)*
PSXP**	236	263			499	149	157		154		240	700
Other Midstream	127	79			206	70	54		107		55	286
Transportation and NGL and Other	363	342			705	219	211		261		295	986
DCP Midstream	76	62			138	71	65		42		70	248
Midstream Adjusted EBITDA	439	404			843	290	276		303		365	1,234
* See reconciliation of net income to Adjusted EBITDA on next page.
** Does not include certain PSXP adjustments made for PSXP stand-alone reporting purposes.
Depreciation and Amortization ($ Millions)*
Transportation	36	44			80	33	35		46		44	158
NGL and Other	38	38			76	35	34		35		37	141
DCP Midstream	—	—			—	—	—		—		—	—
Total	74	82			156	68	69		81		81	299
*Excludes D&A of all equity affiliates.
Operating and SG&A Expense ($ Millions)*
Transportation	178	188			366	161	177		187		185	710
NGL and Other	77	78			155	57	63		65		70	255
DCP Midstream	—	—			—	—	(1	)	—		—	(1	)
Total	255	266			521	218	239		252		255	964
*Excludes Operating and SG&A Expense of all equity affiliates.
Transportation Volumes (MB/D)
Pipelines*	3,407	3,594			3,501	3,469	3,430		3,447		3,658	3,501
Terminals**	2,669	3,214			2,942	2,395	2,581		2,675		3,008	2,665
* 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)*	184	227			206	175	177		177		215	186
* Excludes DCP Midstream.
100% DCP Midstream Results
Net Income Attributable, excludes parent company income tax related to DCP's earnings ($ Millions)	60	42			102	53	42		3		49	147
Depreciation and Amortization ($ Millions)	94	97			191	94	94		94		97	379
Operating and SG&A Expense ($ Millions)	221	260			481	240	254		226		234	954
Net Interest Expense ($ Millions)*	70	69			139	76	73		77		72	298
* Net of interest income.
Capital Expenditures and Investments ($ Millions)	189	196			385	87	121		124		204	536
Selected DCP Operating Statistics
Wellhead Volume (Bcf/D)	4.5	4.9			4.7	4.6	4.5		4.5		4.6	4.6
NGL Production (MB/D)	380	430			405	341	367		378		411	374
Weighted-Average NGL Price*
DCP Midstream ($/BBL)	29.41	31.83			30.62	25.31	22.94		26.12		30.39	26.19
DCP Midstream ($/gal)	0.70	0.76			0.73	0.60	0.55		0.62		0.72	0.62
* Based on index prices from the Mont Belvieu market hub, which are weighted by NGL component mix.
MLP Distributions ($ Millions)*
GP Distribution from PSXP to Phillips 66	51	57			108	32	36		43		47	158
LP Distribution from PSXP to Phillips 66	50	51			101	37	40		44		46	167
GP Distribution from DCP Midstream, LP to DCP Midstream***	43	**			43	23	23		43		83	172
LP Distribution from DCP Midstream, LP to DCP Midstream***	40	**			40	41	40		42		40	163
* 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, LP.

Page 4

MIDSTREAM (continued)
	2018							2017
	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 ($ Millions)
Midstream net income	233		202			435		112		96		117		139		464
Plus:
Income tax expense	47		36			83		41		34		49		50		174
Interest revenue	—		—			—		(1	)	—		—		—		(1	)
Depreciation and amortization	74		82			156		68		69		81		81		299
Midstream EBITDA	354		320			674		220		199		247		270		936
Special Item Adjustments (pre-tax):
Pending claims and settlements	—		—			—		—		—		(37	)	—		(37	)
Hurricane-related costs	—		—			—		—		—		4		6		10
Pension settlement expense	—		—			—		—		8		3		1		12
Midstream EBITDA, Adjusted for Special Items	354		320			674		220		207		217		277		921
Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes	—		—			—		—		1		1		(1	)	1
Proportional share of selected equity affiliates net interest	34		33			67		27		26		31		37		121
Proportional share of selected equity affiliates depreciation and amortization	51		51			102		43		42		54		52		191
Midstream Adjusted EBITDA	439		404			843		290		276		303		365		1,234
Midstream Adjusted EBITDA by Business Line
100% PSXP Results ($ Millions)
PSXP net income	172		186			358		110		119		131		164		524
Plus:
Income tax expense	2		—			2		—		1		1		2		4
Net interest expense	29		29			58		23		23		24		29		99
Depreciation and amortization	28		29			57		28		28		32		28		116
PSXP EBITDA	231		244			475		161		171		188		223		743
Adjustments (pre-tax):
EBITDA attributable to predecessors	—		—			—		(14	)	(17	)	(36	)	(2	)	(69	)
Special item - U.S. tax reform*	(10	)	—			(10	)	—		—		—		—		—
PSXP EBITDA, Adjusted for Predecessors and Special Item**	221		244			465		147		154		152		221		674
Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes	—		—			—		—		—		—		1		1
Proportional share of selected equity affiliates net interest	7		8			15		—		—		—		7		7
Proportional share of selected equity affiliates depreciation and amortization	8		11			19		2		3		2		11		18
PSXP Adjusted EBITDA**	236		263			499		149		157		154		240		700
* Represents a special item adjustment made for PSX reporting purposes only.
** Does not include certain PSXP adjustments made for PSXP stand-alone reporting purposes.
Total Transportation and NGL and Other ($ Millions)
Total Transportation and NGL and Other net income	209		187			396		95		83		116		125		419
Plus:
Income tax expense	40		30			70		31		25		49		38		143
Interest revenue	—		—			—		(1	)	—		—		—		(1	)
Depreciation and amortization	74		82			156		68		69		81		81		299
Total Transportation and NGL and Other EBITDA*	323		299			622		193		177		246		244		860
Special Item Adjustments (pre-tax):
Pension settlement expense	—		—			—		—		8		3		1		12
Pending claims and settlements	—		—			—		—		—		(37	)	—		(37	)
Hurricane-related costs	—		—			—		—		—		4		6		10
Total Transportation and NGL and Other EBITDA, Adjusted for Special Items*	323		299			622		193		185		216		251		845
Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes	—		—			—		—		—		—		1		1
Proportional share of selected equity affiliates net interest	18		18			36		10		10		18		18		56
Proportional share of selected equity affiliates depreciation and amortization	22		25			47		16		16		27		25		84
Total Transportation and NGL and Other Adjusted EBITDA*	363		342			705		219		211		261		295		986
* Includes PSXP results above. Does not include certain PSXP adjustments made for PSXP stand-alone reporting purposes.
DCP Midstream ($ Millions)
DCP Midstream net income	24		15			39		17		13		1		14		45
Plus:
Income tax expense	7		6			13		10		9		—		12		31
DCP Midstream EBITDA	31		21			52		27		22		1		26		76
Special Item Adjustments (pre-tax):
None	—		—			—		—		—		—		—		—
DCP Midstream EBITDA, Adjusted for Special Items	31		21			52		27		22		1		26		76
Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes	—		—			—		—		1		1		(2	)	—
Proportional share of selected equity affiliates net interest	16		15			31		17		16		13		19		65
Proportional share of selected equity affiliates depreciation and amortization	29		26			55		27		26		27		27		107
DCP Midstream Adjusted EBITDA*	76		62			138		71		65		42		70		248
* Proportional share of selected equity affiliates is net of noncontrolling interests.

Page 5

CHEMICALS
	2018								2017
	1st Qtr		2nd Qtr		3rd Qtr	4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Chemicals Net Income ($ Millions)	232		262				494		181		196		121		27		525
100% CPChem Results
Net Income (Loss), excludes parent company income tax related to CPChem's earnings ($ Millions)
Olefins and Polyolefins	535		609				1,144		461		537		295		27		1,320
Specialties, Aromatics and Styrenics	57		76				133		53		61		46		9		169
Corporate and Other	(7	)	(35	)			(42	)	(11	)	(8	)	(10	)	(14	)	(43	)
Total	585		650				1,235		503		590		331		22		1,446
Income (Loss) before Income Taxes ($ Millions)
Olefins and Polyolefins	546		618				1,164		470		546		304		35		1,355
Specialties, Aromatics and Styrenics	61		83				144		62		65		51		13		191
Corporate and Other	(7	)	(34	)			(41	)	(11	)	(8	)	(10	)	(13	)	(42	)
Total	600		667				1,267		521		603		345		35		1,504
Depreciation and Amortization ($ Millions)	116		153				269		73		75		85		118		351
Net Interest Expense ($ Millions)*	(3	)	19				16		(1	)	(1	)	(3	)	(3	)	(8	)
* Net of interest income.
Investing Cash Flows ($ Millions)
Capital Expenditures and Investments	322		126				448		512		262		238		540		1,552
Advances to Equity Companies	—		—				—		6		2		3		—		11
Advance Repayments from Equity Companies	(33	)	(35	)			(68	)	(7	)	—		—		(52	)	(59	)
Externally Marketed Sales Volumes (MM Lbs)*
Olefins and Polyolefins	4,427		4,738				9,165		4,016		4,137		3,842		3,875		15,870
Specialties, Aromatics and Styrenics	1,013		1,595				2,608		1,206		1,175		1,095		1,142		4,618
Total	5,440		6,333				11,773		5,222		5,312		4,937		5,017		20,488
* 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 (%)	96	%	95	%			96	%	89	%	98	%	83	%	79	%	87	%
Market Indicators*
U.S. Industry Prices
Ethylene, Average Acquisition Contract (cents/lb)	26.80		20.60				23.70		31.87		29.61		28.21		30.84		30.13
HDPE Blow Molding, Domestic Spot (cents/lb)	60.00		61.00				60.50		55.83		58.00		58.67		60.75		58.31
U.S. Industry Costs
Ethylene, Cash Cost Weighted Average Feed (cents/lb)	14.81		15.47				15.14		11.80		12.54		16.14		16.22		14.18
HDPE Blow Molding, Total Cash Cost (cents/lb)	39.81		33.47				36.64		44.90		42.59		41.13		43.78		43.10
Ethylene to High-Density Polyethylene Chain Cash Margin (cents/lb)	32.18		32.66				32.42		31.00		32.48		29.61		31.59		31.17
* Source: IHS, Inc.
Reconciliation of Chemicals Net Income to Adjusted EBITDA ($ Millions)
Chemicals net income	232		262				494		181		196		121		27		525
Plus:
Income tax expense (benefit)	54		62				116		70		98		42		(19	)	191
Chemicals EBITDA	286		324				610		251		294		163		8		716
Special Item Adjustments (pre-tax):
Impairments by equity affiliates	—		—				—		33		—		—		31		64
Hurricane-related costs	—		—				—		—		—		53		122		175
Chemicals EBITDA, Adjusted for Special Items	286		324				610		284		294		216		161		955
Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes	23		30				53		20		14		18		16		68
Proportional share of selected equity affiliates net interest	3		13				16		1		2		1		—		4
Proportional share of selected equity affiliates depreciation and amortization	92		108				200		69		70		76		92		307
Chemicals Adjusted EBITDA	404		475				879		374		380		311		269		1,334

Page 6

REFINING
	2018								2017
	1st Qtr		2nd Qtr		3rd Qtr	4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Refining Net Income (Loss) ($ Millions)
Atlantic Basin/Europe	(73	)	131				58		(50	)	107		171		142		370
Gulf Coast	1		275				276		328		53		67		64		512
Central Corridor	203		392				595		62		27		197		191		477
West Coast	(40	)	112				72		(81	)	37		115		(26	)	45
Refining Net Income (Loss)	91		910				1,001		259		224		550		371		1,404
Refining Income (Loss) before Income Taxes ($ Millions)
Atlantic Basin/Europe	(108	)	164				56		(98	)	120		247		179		448
Gulf Coast	—		366				366		521		86		109		93		809
Central Corridor	272		521				793		97		42		317		299		755
West Coast	(52	)	139				87		(130	)	59		190		(55	)	64
Refining Income (Loss) before Income Taxes	112		1,190				1,302		390		307		863		516		2,076
Refining Net Income (Loss) ($/BBL)
Atlantic Basin/Europe	(1.86	)	2.73				0.67		(1.25	)	2.07		3.27		2.59		1.86
Gulf Coast	0.01		3.58				1.89		4.91		0.73		0.95		0.84		1.79
Central Corridor	7.74		14.96				11.35		2.52		1.21		8.37		8.83		5.18
West Coast	(1.21	)	3.18				1.06		(2.95	)	1.05		3.14		(0.75	)	0.34
Worldwide	0.54		4.89				2.83		1.63		1.23		3.01		1.98		1.97
Realized Refining Margins ($/BBL)*
Atlantic Basin/Europe	7.17		10.42				8.96		6.29		7.90		10.02		8.32		8.25
Gulf Coast	6.75		9.93				8.43		8.03		6.74		7.26		6.38		7.07
Central Corridor	16.11		17.51				16.85		10.54		9.96		14.04		15.16		12.44
West Coast	8.32		12.77				10.61		9.95		10.83		12.95		7.96		10.49
Worldwide	9.29		12.28				10.88		8.55		8.44		10.49		8.98		9.13
* See note on the use of non-GAAP measures below. Also, reconciliations of net income to realized refining margin for each period and by region are included in the "Realized Margin Non-GAAP Reconciliations" section below.
Depreciation and Amortization ($ Millions)*
Atlantic Basin/Europe	52		50				102		49		47		47		49		192
Gulf Coast	66		64				130		65		68		68		70		271
Central Corridor	35		32				67		27		27		32		33		119
West Coast	58		59				117		58		62		58		61		239
Total	211		205				416		199		204		205		213		821
* Excludes D&A of all equity affiliates.
Operating and SG&A Expense ($ Millions)*
Atlantic Basin/Europe	298		240				538		271		213		201		223		908
Gulf Coast	376		305				681		350		308		312		297		1,267
Central Corridor	115		131				246		144		191		131		161		627
West Coast	241		240				481		324		234		224		248		1,030
Total	1,030		916				1,946		1,089		946		868		929		3,832
* Excludes Operating and SG&A Expense of all equity affiliates.
Turnaround Expense ($ Millions), included in Operating and SG&A Expense*
Atlantic Basin/Europe	98		21				119		83		19		7		16		125
Gulf Coast	105		10				115		72		23		11		19		125
Central Corridor	2		4				6		27		79		14		47		167
West Coast	40		25				65		117		33		11		17		178
Total	245		60				305		299		154		43		99		595
* Excludes Turnaround Expense of all equity affiliates.
Taxes Other than Income Taxes, excluding Excise Taxes ($ Millions)
Atlantic Basin/Europe	15		15				30		16		13		14		13		56
Gulf Coast	25		23				48		27		23		23		23		96
Central Corridor	12		9				21		14		13		9		10		46
West Coast	27		25				52		20		21		—		23		64
Total	79		72				151		77		70		46		69		262
Foreign Currency Gains (Losses) After-Tax ($ Millions)	9		5				14		—		1		(5	)	5		1
Refining—Equity Affiliate Information ($ Millions)
Equity in earnings (losses) of affiliates	(64	)	214				150		(6	)	22		144		162		322
Less: Share of equity affiliate gross margin included in Realized Refining Margin and other equity-affiliate-related costs*	(239	)	(397	)			(636	)	239		(191	)	(262	)	(306	)	(520	)
Equity-affiliate-related expenses not included in Realized Refining Margins	(303	)	(183	)			(486	)	233		(169	)	(118	)	(144	)	(198	)
Regional Totals
Atlantic Basin/Europe	(43	)	(18	)			(61	)	(17	)	(18	)	25		17		7
Gulf Coast	(1	)	(3	)			(4	)	428		(2	)	1		(1	)	426
Central Corridor	(259	)	(162	)			(421	)	(178	)	(149	)	(144	)	(160	)	(631	)
Total	(303	)	(183	)			(486	)	233		(169	)	(118	)	(144	)	(198	)
* Other costs associated with equity affiliates which do not flow through equity earnings.

Page 7

REFINING (continued)
	2018								2017
	1st Qtr		2nd Qtr		3rd Qtr	4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Reconciliation of Refining Net Income to Adjusted EBITDA ($ Millions)
Refining net income	91		910				1,001		259		224		550		371		1,404
Plus:
Income tax expense	21		280				301		131		83		313		145		672
Depreciation and amortization	211		205				416		199		204		205		213		821
Refining EBITDA	323		1,395				1,718		589		511		1,068		729		2,897
Special Item Adjustments (pre-tax):
Pending claims and settlements	—		—				—		—		(21	)	(30	)	—		(51	)
Certain tax impacts	(2	)	1				(1	)	—		—		—		(23	)	(23	)
Hurricane-related costs	—		—				—		—		—		12		12		24
Gain on consolidation of business	—		—				—		(423	)	—		—		—		(423	)
Pension settlement expense	—		—				—		—		35		13		5		53
Refining EBITDA, Adjusted for Special Items	321		1,396				1,717		166		525		1,063		723		2,477
Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes	—		—				—		—		—		—		1		1
Proportional share of selected equity affiliates net interest	(2	)	(1	)			(3	)	—		(1	)	(1	)	(1	)	(3	)
Proportional share of selected equity affiliates depreciation and amortization	68		68				136		65		65		68		70		268
Refining Adjusted EBITDA	387		1,463				1,850		231		589		1,130		793		2,743
Operating Statistics
Atlantic Basin/Europe*
Crude Oil Charge Input (MB/D)	419		495				457		366		533		536		543		494
Total Processed Inputs (MB/D)	436		527				482		446		569		569		597		546
Crude Oil Capacity Utilization (%)	78	%	92	%			85	%	70	%	103	%	103	%	104	%	95	%
Clean Product Yield (%)	84	%	86	%			85	%	88	%	87	%	88	%	89	%	88	%
* Includes our proportionate share of a refinery complex in Karlsruhe, Germany.
Gulf Coast
Crude Oil Charge Input (MB/D)	696		767				732		668		715		694		758		709
Total Processed Inputs (MB/D)	769		845				807		743		795		767		828		784
Crude Oil Capacity Utilization (%)	93	%	102	%			97	%	90	%	96	%	93	%	102	%	95	%
Clean Product Yield (%)	76	%	80	%			78	%	80	%	81	%	80	%	81	%	81	%
Central Corridor*
Crude Oil Charge Input (MB/D)	458		513				486		470		465		480		452		467
Total Processed Inputs (MB/D)	475		531				503		488		480		497		472		484
Crude Oil Capacity Utilization (%)	93	%	104	%			99	%	95	%	94	%	97	%	92	%	95	%
Clean Product Yield (%)	90	%	88	%			89	%	90	%	88	%	88	%	91	%	89	%
* Includes our proportionate share of the Borger Refinery and Wood River Refinery.
West Coast
Crude Oil Charge Input (MB/D)	340		362				351		279		366		368		353		342
Total Processed Inputs (MB/D)	367		387				377		304		388		398		378		367
Crude Oil Capacity Utilization (%)	93	%	100	%			97	%	78	%	102	%	102	%	98	%	95	%
Clean Product Yield (%)	86	%	86	%			86	%	87	%	87	%	86	%	89	%	87	%
Worldwide—Including Proportionate Share of Equity Affiliates
Crude Oil Charge Input (MB/D)	1,913		2,137				2,026		1,783		2,079		2,078		2,106		2,012
Total Processed Inputs (MB/D)	2,047		2,290				2,169		1,981		2,232		2,231		2,275		2,181
Crude Oil Capacity Utilization (%)	89	%	100	%			94	%	84	%	98	%	98	%	100	%	95	%
Clean Product Yield (%)	83	%	84	%			84	%	85	%	85	%	85	%	87	%	86	%
Refined Products Production (MB/D)
Atlantic Basin/Europe*
Gasoline	172		222				197		213		252		252		260		244
Distillates	185		218				201		163		228		230		254		219
Other	81		92				87		81		95		92		90		90
Total	438		532				485		457		575		574		604		553
* Includes our proportionate share of a refinery complex in Karlsruhe, Germany.
Gulf Coast
Gasoline	303		337				320		296		324		310		333		316
Distillates	260		315				288		275		292		286		311		291
Other	212		198				205		178		185		175		191		182
Total	775		850				813		749		801		771		835		789
Central Corridor*
Gasoline	242		263				252		253		241		253		251		249
Distillates	181		201				191		181		180		182		178		180
Other	56		73				65		59		64		68		48		60
Total	479		537				508		493		485		503		477		489
* Includes our proportionate share of the Borger Refinery and Wood River Refinery.
West Coast
Gasoline	180		190				185		154		197		198		189		185
Distillates	136		143				140		110		141		142		144		135
Other	53		54				53		41		50		58		44		48
Total	369		387				378		305		388		398		377		368
Worldwide—Including Proportionate Share of Equity Affiliates
Gasoline	897		1,012				954		916		1,014		1,013		1,033		994
Distillates	762		877				820		729		841		840		887		825
Other	402		417				410		359		394		393		373		380
Total	2,061		2,306				2,184		2,004		2,249		2,246		2,293		2,199

Page 8

REFINING (continued)
	2018					2017
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Market Indicators
Crude and Crude Differentials ($/BBL)
WTI	62.88	67.99			65.43	51.83	48.24	48.16	55.35	50.90
Brent	66.76	74.35			70.55	53.78	49.83	52.08	61.39	54.27
LLS	65.79	73.11			69.45	53.51	50.31	51.65	61.05	54.13
ANS	66.96	74.10			70.53	53.83	50.68	52.20	61.52	54.56
WTI less Maya	5.16	5.83			5.50	7.10	4.29	1.62	2.21	3.80
WTI less WCS	25.78	18.04			21.91	13.79	9.99	10.49	16.82	12.77
Natural Gas ($/MMBtu)
Henry Hub	3.01	2.82			2.91	3.00	3.05	2.93	2.86	2.96
Product Margins ($/BBL)
Atlantic Basin/Europe
East Coast Gasoline less Brent	9.23	13.36			11.29	9.46	15.53	19.17	11.26	13.85
East Coast Distillate less Brent	16.35	15.83			16.09	12.93	13.29	17.18	17.77	15.29
Gulf Coast
Gulf Coast Gasoline less LLS	8.65	9.44			9.04	9.92	10.86	14.90	8.95	11.16
Gulf Coast Distillate less LLS	15.15	15.28			15.21	12.26	11.59	16.44	15.48	13.94
Central Corridor
Central Gasoline less WTI	13.57	16.04			14.81	12.77	14.11	19.32	16.43	15.66
Central Distillate less WTI	19.85	22.03			20.94	14.00	14.59	21.98	23.43	18.50
West Coast
West Coast Gasoline less ANS	16.40	18.76			17.58	17.28	21.08	20.83	11.76	17.74
West Coast Distillate less ANS	17.28	18.69			17.99	14.84	14.32	20.45	18.81	17.10
Worldwide Market Crack Spread ($/BBL)*	13.12	14.86			13.99	12.24	14.06	18.19	13.98	14.62
* Weighted average based on Phillips 66 crude capacity.

Page 9

MARKETING AND SPECIALTIES
	2018								2017
	1st Qtr		2nd Qtr		3rd Qtr	4th Qtr	YTD		1st Qtr	2nd Qtr	3rd Qtr	4th Qtr		YTD
Marketing and Specialties Net Income ($ Millions)
Marketing and Other	139		187				326		124	181	160	86		551
Specialties	45		50				95		17	33	48	37		135
Marketing and Specialties Net Income	184		237				421		141	214	208	123		686
Marketing and Specialties Income before Income Taxes ($ Millions)
Marketing and Other	176		244				420		181	275	242	110		808
Specialties	59		66				125		27	53	75	57		212
Marketing and Specialties Income before Income Taxes	235		310				545		208	328	317	167		1,020
Marketing Net Income ($/BBL)
U.S.	0.64		0.79				0.72		0.52	0.75	0.65	0.34		0.56
International	1.30		2.67				1.99		1.59	2.31	1.79	1.54		1.81
Realized Marketing Fuel Margins ($/BBL)*
U.S.	1.39		1.61				1.51		1.47	1.74	1.63	1.09		1.48
International	3.32		5.25				4.29		3.70	4.95	4.45	3.72		4.21
* See note on the use of non-GAAP measures below. Also, reconciliations of net income to realized marketing fuel margin for each period and by region are included in the "Realized Margin Non-GAAP Reconciliations" section below.
Realized Margins not included in Marketing Fuel Margin ($ Millions)*
Marketing and Other	147		154				301		133	142	160	130		565
Specialties	94		108				202		72	97	120	103		392
Total	241		262				503		205	239	280	233		957
* Excludes Gain on Dispositions and Excise Tax Income.
Depreciation and Amortization ($ Millions)*
Marketing and Other	24		24				48		22	21	24	25		92
Specialties	5		5				10		5	5	5	5		20
Total	29		29				58		27	26	29	30		112
*Excludes D&A of all equity affiliates.
Operating and SG&A Expense ($ Millions)*
Marketing and Other	266		294				560		245	283	292	284		1,104
Specialties	36		36				72		38	37	39	39		153
Total	302		330				632		283	320	331	323		1,257
*Excludes Operating and SG&A Expense of all equity affiliates.
Marketing Petroleum Products Sales (MB/D)
U.S. Marketing
Gasoline	1,024		1,110				1,067		1,073	1,188	1,188	1,197		1,162
Distillates	706		843				775		667	751	780	866		766
Other	1		—				1		—	—	1	1		1
Total	1,731		1,953				1,843		1,740	1,939	1,969	2,064		1,929
International Marketing
Gasoline	81		86				83		82	87	84	83		84
Distillates	173		169				171		168	161	166	165		165
Other	19		17				18		15	18	17	20		17
Total	273		272				272		265	266	267	268		266
Worldwide Marketing
Gasoline	1,105		1,196				1,150		1,155	1,275	1,272	1,280		1,246
Distillates	879		1,012				946		835	912	946	1,031		931
Other	20		17				19		15	18	18	21		18
Total	2,004		2,225				2,115		2,005	2,205	2,236	2,332		2,195
Foreign Currency Gains (Losses) After-Tax ($ Millions)	4		—				4		1	—	1	(3	)	(1	)
Reconciliation of Marketing and Specialties Net Income to Adjusted EBITDA ($ Millions)
Marketing and Specialties net income	184		237				421		141	214	208	123		686
Plus:
Income tax expense	51		73				124		67	114	109	44		334
Depreciation and amortization	29		29				58		27	26	29	30		112
Marketing and Specialties EBITDA	264		339				603		235	354	346	197		1,132
Special Item Adjustments (pre-tax):
Hurricane-related costs	—		—				—		—	—	1	—		1
Pension settlement expense	—		—				—		—	7	3	1		11
Certain tax impacts	(13	)	(56	)			(69	)	—	—	—	—		—
Marketing and Specialties EBITDA, Adjusted for Special Items	251		283				534		235	361	350	198		1,144
Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes	—		—				—		—	—	—	—		—
Proportional share of selected equity affiliates net interest	—		2				2		—	—	1	—		1
Proportional share of selected equity affiliates depreciation and amortization	3		2				5		3	3	2	3		11
Marketing and Specialties Adjusted EBITDA	254		287				541		238	364	353	201		1,156

Page 10

CORPORATE AND OTHER
	2018								2017
	1st Qtr		2nd Qtr		3rd Qtr	4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Corporate and Other Net Income (Loss) ($ Millions)	(155	)	(207	)			(362	)	(130	)	(149	)	(147	)	2,595		2,169
Detail of Net Income (Loss) ($ Millions)
Net interest expense	(89	)	(101	)			(190	)	(65	)	(65	)	(68	)	(68	)	(266	)
Corporate overhead	(47	)	(58	)			(105	)	(39	)	(47	)	(45	)	(44	)	(175	)
Technology	(18	)	(17	)			(35	)	(15	)	(14	)	(16	)	(17	)	(62	)
U.S. tax reform	7		(24	)			(17	)	—		—		—		2,735		2,735
Other	(8	)	(7	)			(15	)	(11	)	(23	)	(18	)	(11	)	(63	)
Total	(155	)	(207	)			(362	)	(130	)	(149	)	(147	)	2,595		2,169
Pre-Tax Net Interest Expense ($ Millions)
Interest expense	(123	)	(136	)			(259	)	(114	)	(113	)	(112	)	(114	)	(453	)
Capitalized interest	—		1				1		9		6		—		—		15
Interest revenue	11		7				18		5		7		8		10		30
Total	(112	)	(128	)			(240	)	(100	)	(100	)	(104	)	(104	)	(408	)
Reconciliation of Corporate and Other Net Income (Loss) to Adjusted EBITDA ($ Millions)
Corporate and Other net income (loss)	(155	)	(207	)			(362	)	(130	)	(149	)	(147	)	2,595		2,169
Plus:
Income tax benefit	(41	)	(20	)			(61	)	(75	)	(62	)	(106	)	(2,821	)	(3,064	)
Net interest expense	112		128				240		100		100		104		104		408
Depreciation and amortization	22		21				43		21		21		22		22		86
Corporate and Other EBITDA	(62	)	(78	)			(140	)	(84	)	(90	)	(127	)	(100	)	(401	)
Special Item Adjustments (pre-tax):
Pension settlement expense	—		—				—		—		5		2		—		7
Pending claims and settlements	—		—				—		—		—		31		—		31
U.S. tax reform	(16	)	—				(16	)	—		—		—		—		—
Corporate and Other EBITDA, Adjusted for Special Items	(78	)	(78	)			(156	)	(84	)	(85	)	(94	)	(100	)	(363	)
Other Adjustments (pre-tax):
None	—		—				—		—		—		—		—		—
Corporate and Other Adjusted EBITDA	(78	)	(78	)			(156	)	(84	)	(85	)	(94	)	(100	)	(363	)
Foreign Currency Gains (Losses) After-Tax ($ Millions)	—		8				8		—		(1	)	(1	)	2		—
Phillips 66 Total Company Debt
Total Debt ($ Millions)	11,621		11,364				11,364		10,210		9,965		10,201		10,110		10,110
Debt-to-Capital Ratio (%)	32	%	31	%			31	%	30	%	30	%	30	%	27	%	27	%
Total Equity ($ Millions)	24,300		24,960				24,960		23,725		23,806		23,959		27,428		27,428
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA
	Millions of Dollars
	2018								2017
	1st Qtr		2nd Qtr		3rd Qtr	4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Net income	585		1,404				1,989		563		581		849		3,255		5,248
Plus:
Income tax expense (benefit)	132		431				563		234		267		407		(2,601	)	(1,693	)
Net interest expense	112		128				240		99		100		104		104		407
Depreciation and amortization	336		337				673		315		320		337		346		1,318
Phillips 66 EBITDA	1,165		2,300				3,465		1,211		1,268		1,697		1,104		5,280
Special Item Adjustments (pre-tax):
Impairments by equity affiliates	—		—				—		33		—		—		31		64
Pending claims and settlements	—		—				—		—		(21	)	(36	)	—		(57	)
Certain tax impacts	(15	)	(55	)			(70	)	—		—		—		(23	)	(23	)
Gain on consolidation of business	—		—				—		(423	)	—		—		—		(423	)
Pension settlement expense	—		—				—		—		55		21		7		83
Hurricane-related costs	—		—				—		—		—		70		140		210
U.S. tax reform	(16	)	—				(16	)	—		—		—		—		—
Phillips 66 EBITDA, Adjusted for Special Items	1,134		2,245				3,379		821		1,302		1,752		1,259		5,134
Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes	23		30				53		20		15		19		16		70
Proportional share of selected equity affiliates net interest	35		47				82		28		27		32		36		123
Proportional share of selected equity affiliates depreciation and amortization	214		229				443		180		180		200		217		777
EBITDA attributable to Phillips 66 noncontrolling interests	(80	)	(87	)			(167	)	(46	)	(47	)	(49	)	(87	)	(229	)
Phillips 66 Adjusted EBITDA	1,326		2,464				3,790		1,003		1,477		1,954		1,441		5,875
Use of Non-GAAP Financial Information—This earnings release supplemental data includes the terms EBITDA and Adjusted EBITDA and Realized refining margins per barrel and Realized marketing fuel margins per barrel. 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. Realized refining margin per barrel is calculated on a similar basis as industry crack spreads and we believe it provides a useful measure of how well we performed relative to benchmark industry margins. Realized marketing fuel margin per barrel demonstrates the value uplift our marketing operations provide by optimizing the placement and ultimate sale of our refineries' fuel production. The most directly comparable GAAP measure to both realized margin per barrel measures is net income per barrel. Reconciliations of net income to realized refining margin and realized marketing fuel margin for each period and by region are included in the "Realized Margin Non-GAAP Reconciliations" section below.

Page 11

REALIZED MARGIN NON-GAAP RECONCILIATIONS
RECONCILIATION OF NET INCOME (LOSS) TO REALIZED REFINING MARGINS
	Millions of Dollars, Except as Indicated
	2018								2017
	1st Qtr		2nd Qtr		3rd Qtr	4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
ATLANTIC BASIN/EUROPE
Net income (loss)	(73	)	131				58		(50	)	107		171		142		370
Plus:
Income tax expense (benefit)	(35	)	33				(2	)	(48	)	13		76		37		78
Taxes other than income taxes	15		15				30		16		13		14		13		56
Depreciation, amortization and impairments	52		50				102		49		47		47		49		192
Selling, general and administrative expenses	13		15				28		14		15		16		16		61
Operating expenses	285		225				510		257		198		185		207		847
Equity in losses of affiliates	2		3				5		4		2		3		2		11
Other segment income	(7	)	—				(7	)	(3	)	(3	)	(2	)	(2	)	(10	)
Proportional share of refining gross margins contributed by equity affiliates	29		28				57		14		16		15		14		59
Special items:
Certain tax impacts	—		—				—		—		—		—		(23	)	(23	)
Realized refining margins	281		500				781		253		408		525		455		1,641
Total processed inputs (thousands of barrels)	39,218		47,978				87,196		40,116		51,749		52,306		54,897		199,068
Adjusted total processed inputs (thousands of barrels)	39,218		47,978				87,196		40,116		51,749		52,306		54,897		199,068
Net income (loss) (dollars per barrel)**	(1.86	)	2.73				0.67		(1.25	)	2.07		3.27		2.59		1.86
Realized refining margins (dollars per barrel)***	7.17		10.42				8.96		6.29		7.90		10.02		8.32		8.25
GULF COAST
Net income	1		275				276		328		53		67		64		512
Plus:
Income tax expense (benefit)	(1	)	91				90		193		33		42		29		297
Taxes other than income taxes	25		23				48		27		23		24		23		97
Depreciation, amortization and impairments	66		64				130		67		68		68		70		273
Selling, general and administrative expenses	10		13				23		12		14		14		15		55
Operating expenses	366		292				658		338		294		298		282		1,212
Equity in (earnings) losses of affiliates	1		3				4		(7	)	2		(1	)	2		(4	)
Other segment (income) expense, net	(1	)	3				2		(422	)	1		—		—		(421	)
Proportional share of refining gross margins contributed by equity affiliates	—		—				—		1		—		—		—		1
Realized refining margins	467		764				1,231		537		488		512		485		2,022
Total processed inputs (thousands of barrels)	69,207		76,875				146,082		66,848		72,346		70,544		76,213		285,951
Adjusted total processed inputs (thousands of barrels)	69,207		76,875				146,082		66,848		72,346		70,544		76,213		285,951
Net income (dollars per barrel)**	0.01		3.58				1.89		4.91		0.73		0.95		0.84		1.79
Realized refining margins (dollars per barrel)***	6.75		9.93				8.43		8.03		6.74		7.26		6.38		7.07
CENTRAL CORRIDOR
Net income	203		392				595		62		27		197		191		477
Plus:
Income tax expense	69		129				198		35		15		120		108		278
Taxes other than income taxes	12		9				21		14		13		9		10		46
Depreciation, amortization and impairments	35		32				67		27		37		32		33		129
Selling, general and administrative expenses	7		7				14		8		8		8		10		34
Operating expenses	108		124				232		136		183		123		151		593
Equity in (earnings) losses of affiliates	61		(220	)			(159	)	9		(26	)	(146	)	(166	)	(329	)
Other segment (income) expense, net	(4	)	(8	)			(12	)	2		4		8		(1	)	13
Proportional share of refining gross margins contributed by equity affiliates	198		381				579		169		175		290		325		959
Realized refining margins	689		846				1,535		462		436		641		661		2,200
Total processed inputs (thousands of barrels)	26,236		26,209				52,445		24,647		22,331		23,525		21,643		92,146
Adjusted total processed inputs (thousands of barrels)*	42,765		48,347				91,112		43,921		43,718		45,733		43,451		176,823
Net income (dollars per barrel)**	7.74		14.96				11.35		2.52		1.21		8.37		8.83		5.18
Realized refining margins (dollars per barrel)***	16.11		17.51				16.85		10.54		9.96		14.04		15.16		12.44

Page 12

RECONCILIATION OF NET INCOME (LOSS) TO REALIZED REFINING MARGINS (continued)
	Millions of Dollars, Except as Indicated
	2018								2017
	1st Qtr		2nd Qtr		3rd Qtr	4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
WEST COAST
Net income (loss)	(40	)	112				72		(81	)	37		115		(26	)	45
Plus:
Income tax expense (benefit)	(12	)	27				15		(49	)	22		75		(29	)	19
Taxes other than income taxes	25		25				50		20		21		—		23		64
Depreciation, amortization and impairments	58		60				118		58		67		58		61		244
Selling, general and administrative expenses	11		12				23		11		12		12		13		48
Operating expenses	230		228				458		313		222		212		235		982
Other segment (income) expense	3		(14	)			(11	)	1		1		2		1		5
Realized refining margins	275		450				725		273		382		474		278		1,407
Total processed inputs (thousands of barrels)	33,051		35,195				68,246		27,414		35,304		36,635		34,736		134,089
Adjusted total processed inputs (thousands of barrels)	33,051		35,195				68,246		27,414		35,304		36,635		34,736		134,089
Net income (loss) (dollars per barrel)**	(1.21	)	3.18				1.06		(2.95	)	1.05		3.14		(0.75	)	0.34
Realized refining margins (dollars per barrel)***	8.32		12.77				10.61		9.95		10.83		12.95		7.96		10.49
WORLDWIDE
Net income	91		910				1,001		259		224		550		371		1,404
Plus:
Income tax expense	21		280				301		131		83		313		145		672
Taxes other than income taxes	77		72				149		77		70		47		69		263
Depreciation, amortization and impairments	211		206				417		201		219		205		213		838
Selling, general and administrative expenses	41		47				88		45		49		50		54		198
Operating expenses	989		869				1,858		1,044		897		818		875		3,634
Equity in (earnings) losses of affiliates	64		(214	)			(150	)	6		(22	)	(144	)	(162	)	(322	)
Other segment (income) expense, net	(9	)	(19	)			(28	)	(422	)	3		8		(2	)	(413	)
Proportional share of refining gross margins contributed by equity affiliates	227		409				636		184		191		305		339		1,019
Special items:
Certain tax impacts	—		—				—		—		—		—		(23	)	(23	)
Realized refining margins	1,712		2,560				4,272		1,525		1,714		2,152		1,879		7,270
Total processed inputs (thousands of barrels)	167,712		186,257				353,969		159,025		181,730		183,010		187,489		711,254
Adjusted total processed inputs (thousands of barrels)*	184,241		208,395				392,636		178,299		203,117		205,218		209,297		795,931
Net income (dollars per barrel)**	0.54		4.89				2.83		1.63		1.23		3.01		1.98		1.97
Realized refining margins (dollars per barrel)***	9.29		12.28				10.88		8.55		8.44		10.49		8.98		9.13
* Adjusted total processed inputs include our proportional share of processed inputs of an equity affiliate.
** Net income divided by total processed inputs.
*** Realized refining margins per barrel, as presented, are calculated using the underlying realized refining margin amounts, in dollars, divided by adjusted total processed inputs, in barrels. As such, recalculated per barrel amounts using the rounded margins and barrels presented may differ from the presented per barrel amounts due to rounding.

Page 13

RECONCILIATION OF NET INCOME TO REALIZED MARKETING FUEL MARGINS
	Millions of Dollars, Except as Indicated
	2018								2017
	1st Qtr		2nd Qtr		3rd Qtr	4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
UNITED STATES
Net income	99		140				239		81		132		118		64		395
Plus:
Income tax expense	33		47				80		48		79		73		33		233
Taxes other than income taxes*	(10	)	3				(7	)	1,278		1,375		1,409		1,419		5,481
Depreciation and amortization	4		3				7		4		3		3		4		14
Selling, general and administrative expenses	176		193				369		174		193		193		191		751
Equity in earnings of affiliates	(2	)	(2	)			(4	)	—		(2	)	(2	)	(1	)	(5	)
Other operating revenues*	(84	)	(98	)			(182	)	(1,354	)	(1,459	)	(1,499	)	(1,503	)	(5,815	)
Other segment income	—		—				—		(1	)	(14	)	—		—		(15	)
Realized marketing fuel margins	216		286				502		230		307		295		207		1,039
Total fuel sales volumes (thousands of barrels)	155,780		177,725				333,505		156,548		176,419		181,110		189,851		703,928
Net income (dollars per barrel)	0.64		0.79				0.72		0.52		0.75		0.65		0.34		0.56
Realized marketing fuel margins (dollars per barrel)**	1.39		1.61				1.51		1.47		1.74		1.63		1.09		1.48
INTERNATIONAL
Net income	32		66				98		38		56		44		38		176
Plus:
Income tax expense (benefit)	5		16				21		10		19		14		(2	)	41
Taxes other than income taxes*	(2	)	2				—		1,756		1,881		1,970		1,972		7,579
Depreciation and amortization	18		18				36		15		16		17		19		67
Selling, general and administrative expenses	70		71				141		60		63		70		71		264
Equity in earnings of affiliates	(18	)	(25	)			(43	)	(19	)	(22	)	(22	)	(20	)	(83	)
Other operating revenues*	(7	)	(6	)			(13	)	(1,760	)	(1,883	)	(1,973	)	(1,978	)	(7,594	)
Other segment (income) expense, net	(5	)	2				(3	)	(1	)	1		(1	)	3		2
Marketing Margins	93		144				237		99		131		119		103		452
Less: Margin for non-fuel related sales	12		14				26		11		11		10		10		42
Realized marketing fuel margins	81		130				211		88		120		109		93		410
Total fuel sales volumes (thousands of barrels)	24,534		24,717				49,251		23,885		24,229		24,596		24,636		97,346
Net income (dollars per barrel)	1.30		2.67				1.99		1.59		2.31		1.79		1.54		1.81
Realized marketing fuel margins (dollars per barrel)**	3.32		5.25				4.29		3.70		4.95		4.45		3.72		4.21
* Includes excise taxes on sales of petroleum products for periods prior to the adoption of FASB ASU No. 2014-09 on January 1, 2018. Other operating revenues also includes other non-fuel revenues.
** Realized marketing fuel margins per barrel, as presented, are calculated using the underlying realized marketing fuel margin amounts, in dollars, divided by sales volumes, in barrels. As such, recalculated per barrel amounts using the rounded margins and barrels presented may differ from the presented per barrel amounts due to rounding.

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