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

October 25, 2019

Date of Report (date of earliest event reported)

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 Boulevard

Houston, Texas 77042

(Address of Principal Executive Offices and Zip Code)

(281) 293-6600

Registrant's telephone number, including area code

Not Applicable

(Former name or former address, if changed since last report.)

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 (see General Instruction A.2. below):

☐ 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))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, $0.01 par value	PSX	New York Stock Exchange

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 October 25, 2019, Phillips 66 issued a press release announcing the company's financial and operating results for the quarter ended September 30, 2019. 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 October 25, 2019.
99.2	—	Supplemental financial and operating information.
101.INS	—	Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH	—	Inline XBRL Taxonomy Extension Schema Document.
101.CAL	—	Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF	—	Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB	—	Inline XBRL Taxonomy Extension Labels Linkbase Document.
101.PRE	—	Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104	—	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

1

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: October 25, 2019

2

EX-99.1

Phillips 66 Reports Third-Quarter Earnings of $712 Million (Adjusted Earnings of $1.4 Billion)

Exhibit 99.1

Phillips 66 Reports Third-Quarter Earnings of $712 Million

or $1.58 Per Share

Adjusted earnings of $1.4 billion or $3.11 per share

Highlights

• Generated $1.7 billion of operating cash flow

• Returned $841 million to shareholders through dividends and share repurchases

• Initiated line fill on Gray Oak Pipeline; progressing Red Oak and Liberty pipelines

• Started up Lake Charles isomerization unit

• Operated at 97% utilization in Refining

• Delivered 97% O&P utilization in Chemicals

• Announced new $3 billion share repurchase program

HOUSTON, Oct. 25, 2019 – Phillips 66 (NYSE: PSX), a diversified energy manufacturing and logistics company, announces third-quarter 2019 earnings of $712 million, compared with $1.4 billion in the second quarter of 2019. Excluding special items of $690 million in the third quarter, primarily impairments related to the company's investment in DCP Midstream, LLC, adjusted earnings were $1.4 billion, compared with second-quarter adjusted earnings of $1.4 billion.

“We continued to successfully execute our strategy and delivered another quarter of solid financial results,” said Greg Garland, chairman and CEO of Phillips 66. “We operated safely and reliably and captured favorable margins in our Refining and Marketing businesses. Midstream's transportation and NGL businesses reported record pre-tax income, while we continued to progress Midstream's portfolio of growth projects. The Lake Charles isomerization unit reached full production, and line fill started on the Gray Oak Pipeline. CPChem operated well and contributed to our strong operating cash flow.”

“During the quarter, we returned $841 million to shareholders through dividends and share repurchases. As part of our ongoing commitment to return capital to our shareholders, we announced a new $3 billion share repurchase program. Since 2012, we have returned approximately $25 billion to shareholders through dividends and share repurchases and exchanges and have reduced our initial shares outstanding by one-third.”

“We look forward to providing an update on our strategy and how we are positioned to deliver superior returns to shareholders at our upcoming investor day in New York on Nov. 6.”

Page 1

Phillips 66 Reports Third-Quarter Earnings of $712 Million (Adjusted Earnings of $1.4 Billion)

Midstream

	Millions of Dollars
	Pre-Tax Income (Loss)				Adjusted Pre-Tax Income
	Q3 2019			Q2 2019	Q3 2019	Q2 2019
Transportation	$	248		245	248	245
NGL and Other	169			143	169	143
DCP Midstream	(877		)	35	23	35
Midstream	$	(460	)	423	440	423

Midstream had a third-quarter pre-tax loss of $460 million, compared with pre-tax income of $423 million in the second quarter of 2019. Midstream results in the third quarter included $900 million of impairments related to Phillips 66’s equity investment in DCP Midstream, LLC (DCP Midstream).

Transportation third-quarter adjusted pre-tax income of $248 million was $3 million higher than the second quarter, primarily due to higher pipeline volumes.

NGL and Other adjusted pre-tax income for the third quarter was $169 million, a $26 million increase from the second quarter. The improvement was mainly due to butane and propane trading activity.

The company’s equity investment in DCP Midstream generated adjusted pre-tax income of $23 million in the third quarter, compared with $35 million in the second quarter. The decrease primarily reflects lower hedging results.

Chemicals

	Millions of Dollars
	Pre-Tax Income					Adjusted Pre-Tax Income
	Q3 2019			Q2 2019		Q3 2019		Q2 2019
Olefins and Polyolefins	$	209		260		251		260
Specialties, Aromatics and Styrenics	36			34		36		34
Other	(18		)	(19	)	(18	)	(19	)
Chemicals	$	227		275		269		275

The Chemicals segment reflects Phillips 66’s equity investment in Chevron Phillips Chemical Company LLC (CPChem). Chemicals’ third-quarter pre-tax income was $227 million, compared with $275 million in the second quarter. Chemicals results in the third quarter included a $42 million reduction to equity earnings from a lower-of-cost-or-market inventory adjustment.

CPChem’s Olefins and Polyolefins (O&P) business contributed $251 million of adjusted pre-tax income in the third quarter of 2019, compared with $260 million in the second quarter. The $9 million decrease mainly reflects lower margins, partially offset by higher sales volumes. Global O&P utilization was 97% in the third quarter.

CPChem’s Specialties, Aromatics and Styrenics (SA&S) business contributed third-quarter 2019 adjusted pre-tax income of $36 million, in line with the prior quarter.

Page 2

Phillips 66 Reports Third-Quarter Earnings of $712 Million (Adjusted Earnings of $1.4 Billion)

Refining

	Millions of Dollars
	Pre-Tax Income			Adjusted Pre-Tax Income
	Q3 2019		Q2 2019	Q3 2019	Q2 2019
Refining	$	856	983	839	983

Refining third-quarter pre-tax income was $856 million, compared with $983 million in the second quarter of 2019. Refining results in the third quarter included a $17 million favorable adjustment related to a prior year asset disposition.

Refining adjusted pre-tax income was $839 million in the third quarter of 2019, compared with $983 million in the second quarter of 2019. The decrease is mainly due to higher turnaround costs, as well as lower realized margins, primarily reflecting weaker gasoline crack spreads in the Central Corridor.

Phillips 66's worldwide crude utilization rate was 97%. Pre-tax turnaround costs for the third quarter were $120 million, compared with second-quarter costs of $67 million. Clean product yield was 84% in the third quarter.

Marketing and Specialties

	Millions of Dollars
	Pre-Tax Income			Adjusted Pre-Tax Income
	Q3 2019		Q2 2019	Q3 2019	Q2 2019
Marketing and Other	$	440	294	440	294
Specialties	58		59	58	59
Marketing and Specialties	$	498	353	498	353

Marketing and Specialties (M&S) third-quarter pre-tax income was $498 million, compared with $353 million in the second quarter of 2019.

Adjusted pre-tax income for Marketing and Other was $440 million in the third quarter of 2019, an increase of $146 million from the second quarter of 2019. The increase was primarily due to higher margins, driven by favorable market conditions. Refined product exports in the third quarter were 220,000 barrels per day (BPD).

Specialties generated third-quarter adjusted pre-tax income of $58 million, in line with the prior quarter.

Page 3

Phillips 66 Reports Third-Quarter Earnings of $712 Million (Adjusted Earnings of $1.4 Billion)

Corporate and Other

	Millions of Dollars
	Pre-Tax Loss					Adjusted Pre-Tax Loss
	Q3 2019			Q2 2019		Q3 2019		Q2 2019
Corporate and Other	$	(178	)	(205	)	(178	)	(205	)

Corporate and Other third-quarter pre-tax costs were $178 million, compared with pre-tax costs of $205 million in the second quarter of 2019.

The $27 million decrease in Corporate and Other adjusted pre-tax costs in the third quarter was due to lower environmental expenses and higher capitalized interest.

Financial Position, Liquidity and Return of Capital

Phillips 66 generated $1.7 billion in cash from operations during the third quarter, including $518 million of cash distributions from equity affiliates. Excluding working capital impacts, operating cash flow was $1.8 billion. Phillips 66 Partners (PSXP) issued $900 million of unsecured notes and repaid its $400 million term loan in the quarter. On Oct. 15, 2019, PSXP repaid an additional $300 million of outstanding debt.

Capital expenditures and investments in the third quarter were $867 million. Phillips 66 funded $439 million of share repurchases and $402 million of dividends in the quarter. The company ended the quarter with 444 million shares outstanding.

As of Sept. 30, 2019, cash and cash equivalents were $2.3 billion, and consolidated debt was $11.9 billion, including $3.8 billion at PSXP. The company’s consolidated debt-to-capital ratio was 31% and its net debt-to-capital ratio was 26%. Excluding PSXP, the debt-to-capital ratio was 25% and the net debt-to-capital ratio was 21%.

Strategic Update

In Midstream, Phillips 66 Partners is constructing the 900,000 BPD Gray Oak Pipeline, which is anticipated to begin initial service in the fourth quarter of 2019. The pipeline will provide crude oil transportation from the Permian and Eagle Ford to Texas Gulf Coast destinations that include Corpus Christi, the Sweeny area, including the company's Sweeny Refinery, as well as access to the Houston market. Phillips 66 Partners has a 42.25% ownership in the pipeline.

The Gray Oak Pipeline will connect to multiple terminals in Corpus Christi, including the South Texas Gateway Terminal currently being constructed by Buckeye Partners, L.P. The marine export terminal will have two deepwater docks, with storage capacity of over 7 million barrels and up to 800,000 BPD of throughput capacity. Phillips 66 Partners owns a 25% interest in the terminal, which is expected to start up by mid-2020.

Phillips 66 is expanding the Sweeny Hub with the addition of three fractionators, each with capacity of 150,000 BPD. Fracs 2 and 3 are anticipated to start up in the fourth quarter of 2020. Frac 4 is expected to be completed in the second quarter of 2021. The new fractionators are supported by long-term customer commitments. Upon completion of Frac 4, the Sweeny Hub will have 550,000 BPD of fractionation capacity.

Page 4

Phillips 66 Reports Third-Quarter Earnings of $712 Million (Adjusted Earnings of $1.4 Billion)

Also at the Sweeny Hub, Phillips 66 Partners is adding 6 million barrels of storage capacity at Clemens Caverns. Upon completion in the fourth quarter of 2020, Clemens Caverns will have 15 million barrels of storage capacity. Phillips 66 Partners is also constructing the C2G Pipeline, a 16 inch ethane pipeline that will connect Clemens Caverns to petrochemical facilities in Gregory, Texas, near Corpus Christi. The project is backed by long-term commitments and is expected to be completed in mid-2021.

The company continues to expand capacity at its Beaumont Terminal, adding 2.2 million barrels of crude oil storage. Upon completion in the first quarter of 2020, the terminal will have 16.8 million barrels of total crude and product storage capacity.

Phillips 66 is progressing the Liberty Pipeline, which will provide crude oil transportation from the Rockies and Bakken production areas to Cushing, Oklahoma. Liberty is supported by long-term shipper commitments, and initial service is expected in the first half of 2021. Phillips 66 owns a 50% interest in Liberty and will construct and operate the pipeline.

The company is also advancing the Red Oak Pipeline system, which will provide crude oil transportation from Cushing and the Permian Basin to multiple destinations along the Texas Gulf Coast, including Corpus Christi, Ingleside, Houston and Beaumont. Red Oak is supported by long-term shipper commitments, and initial service is expected in the first half of 2021. Our joint venture partner will construct and Phillips 66 will operate the pipeline. Phillips 66 owns a 50% interest in the venture.

DCP Midstream’s O’Connor 2 plant was placed in service in the quarter, adding 200 million cubic feet per day of gas processing capacity in the DJ Basin. In the Permian, DCP Midstream has a 25% interest in the Gulf Coast Express Pipeline, which transports approximately 2 billion cubic feet per day of natural gas to Gulf Coast markets. The pipeline began commercial operations during the quarter.

In Chemicals, CPChem and Qatar Petroleum are jointly pursuing development of a petrochemical facility on the U.S. Gulf Coast that would add world-scale ethylene and derivative capacity to meet growing global demand. The U.S. Gulf Coast II Petrochemical Project is expected to include a 2 million metric tons per year ethylene cracker and two high-density polyethylene units, each with capacity of 1 million metric tons per year. CPChem would own 51% and have responsibility for the construction, operation and management of the facility. Final investment decision is expected no later than 2021, with targeted startup in 2024.

CPChem and Qatar Petroleum are pursuing the development, construction and operation of a petrochemicals complex in Qatar. The facility is expected to have a 1.9 million metric tons per year ethylene cracker and two high-density polyethylene derivative units with a combined capacity of 1.7 million metric tons per year. Pending final investment decision, the project is expected to start up in late 2025. CPChem will own a 30% share of the joint venture.

In Refining, Phillips 66 is upgrading the fluid catalytic cracking unit (FCC) at the Sweeny Refinery to increase production of higher-value petrochemical products and higher-octane gasoline. The project is anticipated to be completed in the second quarter of 2020.

In Marketing, the company continues its program to roll out updated signature image designs for Phillips 66, 76 and Conoco branded sites in the United States. During the quarter, 373 sites were reimaged. Since the program’s inception in 2015, approximately 3,700 sites have been reimaged.

The company will host an analyst and investor day in New York on Nov. 6, 2019, at 8:30 a.m. EST. A live webcast of the meeting will be available on the Phillips 66 Investors site. To access the webcast, go to www.phillips66.com/investors and click on “Events & Presentations.” A replay of the webcast and a transcript will be archived on the Investors site.

Page 5

Phillips 66 Reports Third-Quarter Earnings of $712 Million (Adjusted Earnings of $1.4 Billion)

Investor Webcast

Later today, members of Phillips 66 executive management will host a webcast at noon EDT to discuss the company’s third-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
	2019							2018
	Q3			Q2		Sep YTD		Q3		Sep YTD
Midstream	$	(460	)	423		279		284		802
Chemicals	227			275		729		263		873
Refining	856			983		1,641		1,232		2,534
Marketing and Specialties	498			353		1,056		423		968
Corporate and Other	(178		)	(205	)	(593	)	(227	)	(650	)
Pre-Tax Income	943			1,829		3,112		1,975		4,527
Less: Income tax expense	150			325		545		407		970
Less: Noncontrolling interests	81			80		227		76		202
Phillips 66	$	712		1,424		2,340		1,492		3,355
Adjusted Earnings
	Millions of Dollars
	2019							2018
	Q3			Q2		Sep YTD		Q3		Sep YTD
Midstream	$	440		423		1,179		312		830
Chemicals	269			275		771		263		873
Refining	839			983		1,603		1,263		2,564
Marketing and Specialties	498			353		1,056		385		861
Corporate and Other	(178		)	(205	)	(593	)	(223	)	(662	)
Pre-Tax Income	1,868			1,829		4,016		2,000		4,466
Less: Income tax expense	385			370		821		467		980
Less: Noncontrolling interests	81			80		227		77		196
Phillips 66	$	1,402		1,379		2,968		1,456		3,290

Page 6

Phillips 66 Reports Third-Quarter Earnings of $712 Million (Adjusted Earnings of $1.4 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 14,500 employees committed to safety and operating excellence. Phillips 66 had $59 billion of assets as of Sept. 30, 2019. For more information, visit www.phillips66.com or follow us on Twitter @Phillips66Co.

- # # # -

CONTACTS
Jeff Dietert (investors)	Brent Shaw (investors)	Dennis Nuss (media)
832-765-2297	832-765-2297	855-841-2368
jeff.dietert@p66.com	brent.d.shaw@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; the impact of adverse market conditions or other similar risks to those identified herein affecting PSXP, as well as the ability of PSXP to successfully execute its growth plans; 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 pre-tax income.” These are non-GAAP financial measures that are included to help facilitate comparisons of operating performance across periods and to help facilitate comparisons with other companies in our industry, by excluding items that do not reflect the core operating results of our businesses in the current period. 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.

Page 7

Phillips 66 Reports Third-Quarter Earnings of $712 Million (Adjusted Earnings of $1.4 Billion)

	Millions of Dollars
	Except as Indicated
	2019							2018
	Q3			Q2		Sep YTD		Q3		Sep YTD
Reconciliation of Consolidated Earnings to Adjusted Earnings
Consolidated Earnings	$	712		1,424		2,340		1,492		3,355
Pre-tax adjustments:
Pending claims and settlements	—			—		(21	)	21		21
Pension settlement expense	—			—		—		49		49
Impairments	853			—		853		—		—
Impairments by equity affiliates	47			—		47		—		—
Lower-of-cost-or-market inventory adjustments	42			—		42		—		—
Certain tax impacts	—			—		—		(45	)	(115	)
Asset dispositions	(17		)	—		(17	)	—		—
Tax impact of adjustments*	(235		)	—		(231	)	(6	)	11
U.S. tax reform	—			—		—		(49	)	(32	)
Other tax impacts	—			(45	)	(45	)	(5	)	(5	)
Noncontrolling interests	—			—		—		(1	)	6
Adjusted earnings	$	1,402		1,379		2,968		1,456		3,290
Earnings per share of common stock (dollars)	$	1.58		3.12		5.13		3.18		7.03
Adjusted earnings per share of common stock (dollars)†	$	3.11		3.02		6.51		3.10		6.89
Reconciliation of Segment Pre-Tax Income (Loss) to Adjusted Pre-Tax Income (Loss)
Midstream Pre-Tax Income (Loss)	$	(460	)	423		279		284		802
Pre-tax adjustments:
Impairments	853			—		853		—		—
Pending claims and settlements	—			—		—		21		21
Pension settlement expense	—			—		—		7		7
Impairments by equity affiliates	47			—		47		—		—
Adjusted pre-tax income	$	440		423		1,179		312		830
Chemicals Pre-Tax Income	$	227		275		729		263		873
Pre-tax adjustments:
Lower-of-cost-or-market inventory adjustments	42			—		42		—		—
Adjusted pre-tax income	$	269		275		771		263		873
Refining Pre-Tax Income	$	856		983		1,641		1,232		2,534
Pre-tax adjustments:
Pending claims and settlements	—			—		(21	)	—		—
Asset dispositions	(17		)	—		(17	)	—		—
Certain tax impacts	—			—		—		(1	)	(2	)
Pension settlement expense	—			—		—		32		32
Adjusted pre-tax income	$	839		983		1,603		1,263		2,564

Page 8

Phillips 66 Reports Third-Quarter Earnings of $712 Million (Adjusted Earnings of $1.4 Billion)

	Millions of Dollars
	Except as Indicated
	2019							2018
	Q3			Q2		Sep YTD		Q3		Sep YTD
Reconciliation of Segment Pre-Tax Income (Loss) to Adjusted Pre-Tax Income (Loss)
Marketing and Specialties Pre-Tax Income	$	498		353		1,056		423		968
Pre-tax adjustments:
Pension settlement expense	—			—		—		6		6
Certain tax impacts	—			—		—		(44	)	(113	)
Adjusted pre-tax income	$	498		353		1,056		385		861
Corporate and Other Pre-Tax Loss	$	(178	)	(205	)	(593	)	(227	)	(650	)
Pre-tax adjustments:
Pension settlement expense	—			—		—		4		4
U.S. tax reform	—			—		—		—		(16	)
Adjusted pre-tax loss	$	(178	)	(205	)	(593	)	(223	)	(662	)
*We generally tax effect taxable U.S.-based special items using a combined federal and state statutory income tax rate of approximately 25%. 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.

	Millions of Dollars
	Except as Indicated
	Sept. 30, 2019
Debt-to-Capital Ratio
	Phillips 66 Consolidated			PSXP*	Phillips 66 Excluding PSXP
Total Debt	$	11,925		3,815	8,110
Total Equity	27,092			2,201	24,891
Debt-to-Capital Ratio	31		%		25	%
Total Cash	$	2,268		655	1,613
Net Debt-to-Capital Ratio	26		%		21	%
*PSXP’s third-party debt and Phillips 66’s noncontrolling interests attributable to PSXP.

Page 9

EX-99.2

	Exhibit 99.2
Phillips 66 Earnings Release Supplemental Data

CONSOLIDATED INCOME STATEMENT
	Millions of Dollars, Except as Indicated
	2019									2018
	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	23,103		27,847		27,218			78,168		23,595		28,980		29,788		29,098		111,461
Equity in earnings of affiliates	516		648		499			1,663		424		743		779		730		2,676
Net gain on dispositions	1		—		18			19		17		—		1		1		19
Other income	38		23		36			97		10		13		24		14		61
Total Revenues and Other Income	23,658		28,518		27,771			79,947		24,046		29,736		30,592		29,843		114,217
Costs and Expenses
Purchased crude oil and products	21,055		24,554		23,806			69,415		21,138		25,747		26,385		24,660		97,930
Operating expenses	1,307		1,165		1,206			3,678		1,246		1,143		1,206		1,285		4,880
Selling, general and administrative expenses	366		408		416			1,190		386		432		440		419		1,677
Depreciation and amortization	331		334		336			1,001		336		337		346		337		1,356
Impairments	1		2		853			856		—		6		1		1		8
Taxes other than income taxes	128		97		105			330		110		109		109		97		425
Accretion on discounted liabilities	6		5		6			17		6		6		5		6		23
Interest and debt expense	119		115		109			343		123		135		125		121		504
Foreign currency transaction (gains) losses	5		9		(9	)		5		(16	)	(14	)	—		(1	)	(31	)
Total Costs and Expenses	23,318		26,689		26,828			76,835		23,329		27,901		28,617		26,925		106,772
Income before income taxes	340		1,829		943			3,112		717		1,835		1,975		2,918		7,445
Income tax expense	70		325		150			545		132		431		407		602		1,572
Net Income	270		1,504		793			2,567		585		1,404		1,568		2,316		5,873
Less: net income attributable to noncontrolling interests	66		80		81			227		61		65		76		76		278
Net Income Attributable to Phillips 66	204		1,424		712			2,340		524		1,339		1,492		2,240		5,595
Net Income Attributable to Phillips 66 Per Share of Common Stock (dollars)
Basic	0.44		3.13		1.58			5.15		1.07		2.86		3.20		4.85		11.87
Diluted	0.44		3.12		1.58			5.13		1.07		2.84		3.18		4.82		11.80
Weighted-Average Common Shares Outstanding (thousands)
Basic	457,599		453,681		449,005			453,398		487,065		468,331		466,109		461,651		470,708
Diluted	459,289		455,585		451,001			455,810		489,668		471,638		469,440		464,406		474,047
Effective tax rate (%)	20.6	%	17.8	%	15.9	%		17.5	%	18.4	%	23.5	%	20.6	%	20.6	%	21.1	%
Adjusted effective tax rate (%)	20.7	%	20.2	%	20.6	%		20.4	%	17.5	%	22.1	%	23.4	%	21.1	%	21.6	%

Page 1

RECONCILIATION OF INCOME (LOSS) BEFORE INCOME TAXES BY SEGMENT TO
NET INCOME ATTRIBUTABLE TO PHILLIPS 66
	Millions of Dollars
	2019									2018
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Midstream	316		423		(460	)		279		280		238		284		379		1,181
Chemicals	227		275		227			729		286		324		263		152		1,025
Refining	(198	)	983		856			1,641		112		1,190		1,232		2,001		4,535
Marketing and Specialties	205		353		498			1,056		235		310		423		589		1,557
Corporate and Other	(210	)	(205	)	(178	)		(593	)	(196	)	(227	)	(227	)	(203	)	(853	)
Income before income taxes	340		1,829		943			3,112		717		1,835		1,975		2,918		7,445
Less: income tax expense	70		325		150			545		132		431		407		602		1,572
Net Income	270		1,504		793			2,567		585		1,404		1,568		2,316		5,873
Less: net income attributable to noncontrolling interests	66		80		81			227		61		65		76		76		278
Net Income Attributable to Phillips 66	204		1,424		712			2,340		524		1,339		1,492		2,240		5,595
RECONCILIATION OF ADJUSTED INCOME (LOSS) BEFORE INCOME TAXES BY SEGMENT TO
ADJUSTED NET INCOME ATTRIBUTABLE TO PHILLIPS 66
	Millions of Dollars
	2019									2018
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Midstream
Transportation	203		245		248			696		163		164		209		234		770
NGL and Other	90		143		169			402		86		53		74		122		335
DCP Midstream	23		35		23			81		31		21		29		53		134
Total Midstream	316		423		440			1,179		280		238		312		409		1,239
Chemicals	227		275		269			771		286		324		263		152		1,025
Refining
Atlantic Basin/Europe	(7	)	258		279			530		(108	)	164		216		301		573
Gulf Coast	(118	)	222		184			288		—		366		221		468		1,055
Central Corridor	56		520		408			984		272		521		846		1,188		2,827
West Coast	(150	)	(17	)	(32	)		(199	)	(54	)	140		(20	)	51		117
Total Refining	(219	)	983		839			1,603		110		1,191		1,263		2,008		4,572
Marketing and Specialties
Marketing and Other	138		294		440			872		163		188		323		528		1,202
Specialties	67		59		58			184		59		66		62		64		251
Total Marketing and Specialties	205		353		498			1,056		222		254		385		592		1,453
Corporate and Other	(210	)	(205	)	(178	)		(593	)	(212	)	(227	)	(223	)	(201	)	(863	)
Adjusted income before income taxes	319		1,829		1,868			4,016		686		1,780		2,000		2,960		7,426
Less: adjusted income tax expense	66		370		385			821		120		393		467		624		1,604
Adjusted Net Income	253		1,459		1,483			3,195		566		1,387		1,533		2,336		5,822
Less: adjusted net income attributable to noncontrolling interests	66		80		81			227		54		65		77		76		272
Adjusted Net Income Attributable to Phillips 66	187		1,379		1,402			2,968		512		1,322		1,456		2,260		5,550

Page 2

SPECIAL ITEMS INCLUDED IN INCOME (LOSS) BEFORE INCOME TAXES BY SEGMENT
AND NET INCOME ATTRIBUTABLE TO PHILLIPS 66
	Millions of Dollars
	2019								2018
	1st Qtr	2nd Qtr		3rd Qtr		4th Qtr	YTD		1st Qtr	2nd Qtr		3rd Qtr		4th Qtr		YTD
Midstream
Pending claims and settlements	—	—		—			—		—	—		(21	)	—		(21	)
Impairments	—	—		(853	)		(853	)	—	—		—		—		—
Impairments by equity affiliates	—	—		(47	)		(47	)	—	—		—		(28	)	(28	)
Pension settlement expense	—	—		—			—		—	—		(7	)	(2	)	(9	)
Total Midstream	—	—		(900	)		(900	)	—	—		(28	)	(30	)	(58	)
Chemicals
Lower-of-cost-or-market inventory adjustments	—	—		(42	)		(42	)	—	—		—		—		—
Total Chemicals	—	—		(42	)		(42	)	—	—		—		—		—
Refining
Pending claims and settlements	21	—		—			21		—	—		—		—		—
Certain tax impacts	—	—		—			—		2	(1	)	1		4		6
Asset dispositions	—	—		17			17		—	—		—		—		—
Pension settlement expense	—	—		—			—		—	—		(32	)	(11	)	(43	)
Total Refining	21	—		17			38		2	(1	)	(31	)	(7	)	(37	)
Marketing and Specialties
Certain tax impacts	—	—		—			—		13	56		44		—		113
Pension settlement expense	—	—		—			—		—	—		(6	)	(3	)	(9	)
Total Marketing and Specialties	—	—		—			—		13	56		38		(3	)	104
Corporate and Other
U.S. tax reform	—	—		—			—		16	—		—		—		16
Pension settlement expense	—	—		—			—		—	—		(4	)	(2	)	(6	)
Total Corporate and Other	—	—		—			—		16	—		(4	)	(2	)	10
Total Special Items (Pre-tax)	21	—		(925	)		(904	)	31	55		(25	)	(42	)	19
Less: Income Tax Expense (Benefit)
Tax impact of pre-tax special items*	4	—		(235	)		(231	)	5	14		(6	)	(12	)	1
Other tax impacts	—	(45	)	—			(45	)	—	—		(5	)	(65	)	(70	)
U.S. tax reform	—	—		—			—		7	24		(49	)	55		37
Total Income Tax Expense (Benefit)	4	(45	)	(235	)		(276	)	12	38		(60	)	(22	)	(32	)
Less: Income (Loss) Attributable to Noncontrolling Interests
Pending claims and settlements	—	—		—			—		—	—		(1	)	—		(1	)
U.S. tax reform	—	—		—			—		7	—		—		—		7
Total Income (Loss) Attributable to Noncontrolling Interests	—	—		—			—		7	—		(1	)	—		6
Total Phillips 66 Special Items (After-tax)	17	45		(690	)		(628	)	12	17		36		(20	)	45
* We generally tax effect taxable U.S.-based special items using a combined federal and state statutory income tax rate of approximately 25%. 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.
SPECIAL ITEMS INCLUDED IN INCOME (LOSS) BEFORE INCOME TAXES BY BUSINESS LINES/REGIONS
	Millions of Dollars
	2019								2018
	1st Qtr	2nd Qtr		3rd Qtr		4th Qtr	YTD		1st Qtr	2nd Qtr		3rd Qtr		4th Qtr		YTD
Midstream
Transportation	—	—		—			—		—	—		—		—		—
NGL and Other	—	—		—			—		—	—		(28	)	(2	)	(30	)
DCP Midstream	—	—		(900	)		(900	)	—	—		—		(28	)	(28	)
Total Midstream	—	—		(900	)		(900	)	—	—		(28	)	(30	)	(58	)
Refining
Atlantic Basin/Europe	—	—		17			17		—	—		(7	)	1		(6	)
Gulf Coast	—	—		—			—		—	—		(11	)	(4	)	(15	)
Central Corridor	21	—		—			21		—	—		(7	)	(3	)	(10	)
West Coast	—	—		—			—		2	(1	)	(6	)	(1	)	(6	)
Total Refining	21	—		17			38		2	(1	)	(31	)	(7	)	(37	)
Marketing and Specialties
Marketing and Other	—	—		—			—		13	56		38		(3	)	104
Specialties	—	—		—			—		—	—		—		—		—
Total Marketing and Specialties	—	—		—			—		13	56		38		(3	)	104

Page 3

CASH FLOW INFORMATION
	Millions of Dollars
	2019									2018
	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	270		1,504		793			2,567		585		1,404		1,568		2,316		5,873
Depreciation and amortization	331		334		336			1,001		336		337		346		337		1,356
Impairments	1		2		853			856		—		6		1		1		8
Accretion on discounted liabilities	6		5		6			17		6		6		5		6		23
Deferred income taxes	179		74		(138	)		115		101		28		100		23		252
Undistributed equity earnings	95		(139	)	19			(25	)	119		(133	)	125		110		221
Net gain on dispositions	(1	)	—		(18	)		(19	)	(17	)	—		(1	)	(1	)	(19	)
Other	42		(101	)	(38	)		(97	)	173		24		(79	)	14		132
Net working capital changes	(1,401	)	251		(151	)		(1,301	)	(815	)	692		(1,483	)	1,333		(273	)
Net Cash Provided by (Used in) Operating Activities	(478	)	1,930		1,662			3,114		488		2,364		582		4,139		7,573
Cash Flows From Investing Activities
Capital expenditures and investments	(1,097	)	(631	)	(867	)		(2,595	)	(328	)	(538	)	(779	)	(994	)	(2,639	)
Proceeds from asset dispositions*	103		15		21			139		17		12		10		18		57
Advances/loans—related parties	—		(95	)	—			(95	)	(1	)	—		—		—		(1	)
Collection of advances/loans—related parties	—		95		—			95		—		—		—		—		—
Other	(18	)	42		—			24		(45	)	62		50		45		112
Net Cash Used in Investing Activities	(1,012	)	(574	)	(846	)		(2,432	)	(357	)	(464	)	(719	)	(931	)	(2,471	)
Cash Flows From Financing Activities
Issuance of debt	725		135		898			1,758		1,509		—		85		590		2,184
Repayment of debt	(592	)	(5	)	(407	)		(1,004	)	(7	)	(253	)	(114	)	(770	)	(1,144	)
Issuance of common stock	8		1		6			15		10		20		9		—		39
Repurchase of common stock	(344	)	(455	)	(439	)		(1,238	)	(3,513	)	(230	)	(405	)	(497	)	(4,645	)
Dividends paid on common stock	(364	)	(406	)	(402	)		(1,172	)	(327	)	(372	)	(370	)	(367	)	(1,436	)
Distributions to noncontrolling interests	(56	)	(61	)	(59	)		(176	)	(45	)	(51	)	(50	)	(61	)	(207	)
Net proceeds from issuance of Phillips 66 Partners LP common and preferred units	32		10		91			133		9		58		47		14		128
Other	307		(6	)	(19	)		282		(45	)	(13	)	(21	)	(7	)	(86	)
Net Cash Used in Financing Activities	(284	)	(787	)	(331	)		(1,402	)	(2,409	)	(841	)	(819	)	(1,098	)	(5,167	)
Effect of Exchange Rate Changes on Cash and Cash Equivalents	8		(3	)	(36	)		(31	)	1		(17	)	(4	)	(15	)	(35	)
Net Change in Cash and Cash Equivalents	(1,766	)	566		449			(751	)	(2,277	)	1,042		(960	)	2,095		(100	)
Cash and cash equivalents at beginning of period	3,019		1,253		1,819			3,019		3,119		842		1,884		924		3,119
Cash and Cash Equivalents at End of Period	1,253		1,819		2,268			2,268		842		1,884		924		3,019		3,019
* Includes return of investments in equity affiliates.
CAPITAL PROGRAM
	Millions of Dollars
	2019									2018
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Consolidated Capital Expenditures and Investments
Midstream	419		359		524			1,302		136		339		503		570		1,548
Chemicals	—		—		—			—		—		—		—		—		—
Refining	194		197		254			645		172		153		200		301		826
Marketing and Specialties	19		23		34			76		13		15		37		60		125
Corporate and Other	43		52		55			150		7		31		39		63		140
Adjusted Capital Spending	675		631		867			2,173		328		538		779		994		2,639
Capital expenditures and investments funded by Gray Oak joint venture partners	422		—		—			422		—		—		—		—		—
Consolidated Capital Expenditures and Investments	1,097		631		867			2,595		328		538		779		994		2,639
Proportional Share of Selected Equity Affiliates Capital Expenditures and Investments*
DCP Midstream (Midstream)	150		128		77			355		95		98		149		142		484
CPChem (Chemicals)	103		72		77			252		161		63		60		55		339
WRB (Refining)	37		44		54			135		40		35		41		40		156
Selected Equity Affiliates	290		244		208			742		296		196		250		237		979
* Represents 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 (WRB).

Page 4

MIDSTREAM
	Millions of Dollars, Except as Indicated
	2019							2018
	1st Qtr	2nd Qtr	3rd Qtr		4th Qtr	YTD		1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Income (Loss) before Income Taxes
Transportation	203	245	248			696		163	164	209	234	770
NGL and Other	90	143	169			402		86	53	46	120	305
DCP Midstream	23	35	(877	)		(819	)	31	21	29	25	106
Income (Loss) before Income Taxes	316	423	(460	)		279		280	238	284	379	1,181
Adjusted EBITDA*
PSXP**	273	306	312			891		236	263	297	300	1,096
Other Midstream	133	196	222			551		127	79	113	176	495
Transportation and NGL and Other	406	502	534			1,442		363	342	410	476	1,591
DCP Midstream	67	81	79			227		76	62	72	97	307
Adjusted EBITDA	473	583	613			1,669		439	404	482	573	1,898
* See reconciliation of income before income taxes to adjusted EBITDA below.
** Does not include certain PSXP adjustments made for PSXP stand-alone reporting purposes.
Equity in Earnings (Losses) of Affiliates
Transportation	103	124	128			355		87	91	106	121	405
NGL and Other	51	53	51			155		35	43	48	39	165
DCP Midstream	23	34	(23	)		34		30	21	29	26	106
Total	177	211	156			544		152	155	183	186	676
Depreciation and Amortization*
Transportation	36	37	40			113		36	44	46	41	167
NGL and Other	37	38	38			113		38	38	40	37	153
DCP Midstream	—	—	—			—		—	—	—	—	—
Total	73	75	78			226		74	82	86	78	320
* Excludes D&A of all equity affiliates.
Operating and SG&A Expenses*
Transportation	172	173	183			528		178	188	178	185	729
NGL and Other	128	76	76			280		77	78	101	77	333
DCP Midstream	—	—	—			—		—	—	—	—	—
Total	300	249	259			808		255	266	279	262	1,062
* Excludes operating and SG&A expenses of all equity affiliates.
Transportation Volumes (MB/D)
Pipelines*	3,176	3,417	3,443			3,346		3,209	3,404	3,517	3,627	3,441
Terminals**	3,063	3,261	3,381			3,236		2,669	3,214	3,179	3,541	3,153
* Pipelines represent the sum of volumes transported through each separately tariffed consolidated pipeline segment.
** Terminals include Bayway and Ferndale crude oil rail rack volumes.
PSX Other Volumes
NGL Fractionated (MB/D)*	234	232	203			223		184	227	227	223	216
* Excludes DCP Midstream.
100% DCP Midstream, LLC Results
Net Income (Loss) Attributable to Owners	45	68	(47	)		66		60	42	57	51	210
Depreciation and Amortization	103	101	100			304		94	97	98	99	388
Operating and SG&A Expenses	246	257	257			760		221	260	275	304	1,060
Net Interest Expense*	70	75	79			224		70	69	71	69	279
* Net of interest income.
Capital Expenditures and Investments	300	256	154			710		189	196	299	283	967
Selected DCP Operating Statistics
Wellhead Volume (Bcf/D)	5.0	4.9	5.0			5.0		4.5	4.9	4.9	5.0	4.8
NGL Production (MB/D)	428	423	409			420		380	430	426	415	413
Weighted-Average NGL Price*
DCP Midstream ($/BBL)	25.33	21.28	18.31			21.64		29.41	31.83	36.51	28.80	31.64
DCP Midstream ($/gal)	0.60	0.51	0.44			0.52		0.70	0.76	0.87	0.69	0.75
* Based on index prices from the Mont Belvieu market hub, which are weighted by NGL component mix.
MLP Distributions*
GP Distribution from PSXP to Phillips 66**	69	70	—			139		51	57	61	67	236
LP Distribution from PSXP to Phillips 66	58	58	147			263		50	51	55	58	214
GP Distribution from DCP Midstream, LP to DCP Midstream****	43	43	***			86		43	42	43	43	171
LP Distribution from DCP Midstream, LP to DCP Midstream****	41	41	***			82		41	41	41	41	164
* 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.
** On August 1, 2019, PSXP eliminated its incentive distributions rights and 2% economic general partner interest, therefore, no distributions will be made to the general partner interest after August 1, 2019.
*** Pending DCP Midstream release.
**** Represents 100% of DCP Midstream's distributions from DCP Midstream, LP.

Page 5

MIDSTREAM (continued)
	Millions of Dollars
	2019						2018
	1st Qtr	2nd Qtr	3rd Qtr		4th Qtr	YTD	1st Qtr		2nd Qtr	3rd Qtr	4th Qtr	YTD
Reconciliation of Midstream Income (Loss) before Income Taxes to Adjusted EBITDA
Income (loss) before income taxes	316	423	(460	)		279	280		238	284	379	1,181
Plus:
Depreciation and amortization	73	75	78			226	74		82	86	78	320
EBITDA	389	498	(382	)		505	354		320	370	457	1,501
Special Item Adjustments (pre-tax):
Pending claims and settlements	—	—	—			—	—		—	21	—	21
Impairments	—	—	853			853	—		—	—	—	—
Impairments by equity affiliates	—	—	47			47	—		—	—	28	28
Pension settlement expense	—	—	—			—	—		—	7	2	9
EBITDA, Adjusted for Special Items	389	498	518			1,405	354		320	398	487	1,559
Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes	—	—	—			—	—		—	—	1	1
Proportional share of selected equity affiliates net interest	30	30	36			96	34		33	32	32	131
Proportional share of selected equity affiliates depreciation and amortization	54	55	59			168	51		51	52	53	207
Adjusted EBITDA	473	583	613			1,669	439		404	482	573	1,898
Adjusted EBITDA by Business Line
100% PSXP Results
Income before income taxes	199	234	238			671	174		186	217	223	800
Plus:
Net interest expense	27	26	25			78	29		29	28	28	114
Depreciation and amortization	29	29	30			88	28		29	30	30	117
EBITDA	255	289	293			837	231		244	275	281	1,031
Adjustments (pre-tax):
EBITDA attributable to predecessors	—	—	—			—	—		—	—	—	—
Special item - pending claims and settlements*	—	—	—			—	—		—	3	—	3
Special item - U.S. tax reform*	—	—	—			—	(10	)	—	—	—	(10	)
EBITDA, Adjusted for Predecessors and Special Items**	255	289	293			837	221		244	278	281	1,024
Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes	—	—	—			—	—		—	—	—	—
Proportional share of selected equity affiliates net interest	7	6	7			20	7		8	8	8	31
Proportional share of selected equity affiliates depreciation and amortization	11	11	12			34	8		11	11	11	41
Adjusted EBITDA**	273	306	312			891	236		263	297	300	1,096
* Represents a special item adjustment made for PSX reporting purposes only.
** Does not include certain PSXP adjustments made for PSXP stand-alone reporting purposes.

Page 6

MIDSTREAM (continued)
	Millions of Dollars
	2019							2018
	1st Qtr	2nd Qtr	3rd Qtr		4th Qtr	YTD		1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Total Transportation and NGL and Other
Income before income taxes	293	388	417			1,098		249	217	255	354	1,075
Plus:
Depreciation and amortization	73	75	78			226		74	82	86	78	320
EBITDA*	366	463	495			1,324		323	299	341	432	1,395
Special Item Adjustments (pre-tax):
Pending claims and settlements	—	—	—			—		—	—	21	—	21
Pension settlement expense	—	—	—			—		—	—	7	2	9
EBITDA, Adjusted for Special Items*	366	463	495			1,324		323	299	369	434	1,425
Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes	—	—	—			—		—	—	—	1	1
Proportional share of selected equity affiliates net interest	15	14	14			43		18	18	17	16	69
Proportional share of selected equity affiliates depreciation and amortization	25	25	25			75		22	25	24	25	96
Adjusted EBITDA*	406	502	534			1,442		363	342	410	476	1,591
* Includes PSXP results above. Does not include certain PSXP adjustments made for PSXP stand-alone reporting purposes.
DCP Midstream
Income (loss) before income taxes	23	35	(877	)		(819	)	31	21	29	25	106
Plus:
None	—	—	—			—		—	—	—	—	—
EBITDA	23	35	(877	)		(819	)	31	21	29	25	106
Special Item Adjustments (pre-tax):
Impairments	—	—	853			853		—	—	—	—	—
Impairments by equity affiliates	—	—	47			47		—	—	—	28	28
EBITDA, Adjusted for Special Items	23	35	23			81		31	21	29	53	134
Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes	—	—	—			—		—	—	—	—	—
Proportional share of selected equity affiliates net interest	15	16	22			53		16	15	15	16	62
Proportional share of selected equity affiliates depreciation and amortization	29	30	34			93		29	26	28	28	111
Adjusted EBITDA*	67	81	79			227		76	62	72	97	307
* Proportional share of selected equity affiliates is net of noncontrolling interests.

Page 7

CHEMICALS
	Millions of Dollars, Except as Indicated
	2019									2018
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Income before Income Taxes	227		275		227			729		286		324		263		152		1,025
Equity in Earnings of Affiliate	225		274		224			723		288		325		261		151		1,025
100% CPChem Results
Net Income (Loss), excludes parent company income tax related to CPChem's earnings
Olefins and Polyolefins	434		525		417			1,376		535		609		443		315		1,902
Specialties, Aromatics and Styrenics	49		70		73			192		57		76		108		28		269
Corporate and Other	(34	)	(36	)	(34	)		(104	)	(7	)	(35	)	(20	)	(40	)	(102	)
Total	449		559		456			1,464		585		650		531		303		2,069
Income (Loss) before Income Taxes
Olefins and Polyolefins	446		536		430			1,412		546		618		457		325		1,946
Specialties, Aromatics and Styrenics	57		78		78			213		61		83		116		33		293
Corporate and Other	(34	)	(36	)	(33	)		(103	)	(7	)	(34	)	(20	)	(41	)	(102	)
Total	469		578		475			1,522		600		667		553		317		2,137
Depreciation and Amortization	146		139		140			425		116		153		159		167		595
Net Interest (Income) Expense*	20		17		19			56		(3	)	19		18		17		51
* Net of interest income.
Investing Cash Flows
Capital Expenditures and Investments	206		144		153			503		322		126		119		111		678
Advances to Equity Companies	—		—		—			—		—		—		—		—		—
Advance Repayments from Equity Companies	(26	)	(28	)	(9	)		(63	)	(33	)	(35	)	(12	)	(39	)	(119	)
Olefins and Polyolefins Capacity Utilization (%)	98	%	95	%	97	%		97	%	96	%	95	%	91	%	95	%	94	%
Market Indicators*
U.S. Industry Prices
Ethylene, Average Acquisition Contract (cents/lb)	22.44		19.14		19.33			20.30		26.80		20.60		23.61		25.18		24.05
HDPE Blow Molding, Domestic Spot (cents/lb)	52.67		51.08		45.42			49.72		60.00		61.00		59.58		56.00		59.15
U.S. Industry Costs
Ethylene, Cash Cost Weighted Average Feed (cents/lb)	16.43		11.89		9.46			12.59		14.81		15.47		20.68		17.27		17.06
HDPE Blow Molding, Total Cash Cost (cents/lb)	35.46		31.97		32.13			33.19		39.81		33.47		36.57		38.30		37.04
Ethylene to High-Density Polyethylene Chain Cash Margin (cents/lb)	23.23		26.36		23.16			24.25		32.18		32.66		25.94		25.60		29.10
* Source: IHS, Inc.
Reconciliation of Chemicals Income before Income Taxes to Adjusted EBITDA
Income before income taxes	227		275		227			729		286		324		263		152		1,025
Plus:
None	—		—		—			—		—		—		—		—		—
EBITDA	227		275		227			729		286		324		263		152		1,025
Special Item Adjustments (pre-tax):
Lower-of-cost-or-market inventory adjustments	—		—		42			42		—		—		—		—		—
EBITDA, Adjusted for Special Items	227		275		269			771		286		324		263		152		1,025
Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes	22		24		23			69		23		30		30		17		100
Proportional share of selected equity affiliates net interest	13		8		10			31		3		13		11		11		38
Proportional share of selected equity affiliates depreciation and amortization	105		106		104			315		92		108		110		112		422
Adjusted EBITDA	367		413		406			1,186		404		475		414		292		1,585

Page 8

REFINING
	Millions of Dollars, Except as Indicated
	2019									2018
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Income (Loss) before Income Taxes
Atlantic Basin/Europe	(7	)	258		296			547		(108	)	164		209		302		567
Gulf Coast	(118	)	222		184			288		—		366		210		464		1,040
Central Corridor	77		520		408			1,005		272		521		839		1,185		2,817
West Coast	(150	)	(17	)	(32	)		(199	)	(52	)	139		(26	)	50		111
Income (Loss) before Income Taxes	(198	)	983		856			1,641		112		1,190		1,232		2,001		4,535
Income (Loss) before Income Taxes ($/BBL)
Atlantic Basin/Europe	(0.17	)	5.04		5.93			3.83		(2.75	)	3.42		4.62		5.63		3.05
Gulf Coast	(1.80	)	2.88		2.46			1.32		—		4.76		3.01		6.04		3.55
Central Corridor	3.22		19.81		15.26			13.07		10.37		19.88		31.33		43.77		26.50
West Coast	(4.89	)	(0.52	)	(0.93	)		(2.03	)	(1.57	)	3.95		(0.74	)	1.52		0.81
Worldwide	(1.22	)	5.25		4.60			3.07		0.67		6.39		6.96		10.50		6.29
Realized Refining Margins ($/BBL)*
Atlantic Basin/Europe	7.76		10.85		11.48			10.17		7.17		10.42		11.48		11.54		10.32
Gulf Coast	5.44		8.20		8.34			7.42		6.75		9.93		9.09		11.84		9.48
Central Corridor	10.23		17.84		15.99			14.91		16.11		17.51		23.61		30.60		22.22
West Coast	6.25		9.94		10.11			8.84		8.32		12.77		9.53		14.18		11.20
Worldwide	7.23		11.37		11.18			10.06		9.29		12.28		13.36		16.53		12.99
* See note on the use of non-GAAP measures below. Also, reconciliations of income (loss) before income taxes to realized refining margin for each period and by region are included in the "Realized Margin Non-GAAP Reconciliations" section below.
Equity in Earnings (Losses) of Affiliates
Atlantic Basin/Europe	(3	)	(3	)	(3	)		(9	)	(2	)	(3	)	(2	)	(3	)	(10	)
Gulf Coast	—		(2	)	1			(1	)	(1	)	(3	)	(1	)	(1	)	(6	)
Central Corridor	84		133		69			286		(61	)	220		300		353		812
West Coast	—		—		—			—		—		—		—		—		—
Total	81		128		67			276		(64	)	214		297		349		796
Depreciation and Amortization*
Atlantic Basin/Europe	50		49		49			148		52		50		50		49		201
Gulf Coast	67		68		66			201		66		64		69		69		268
Central Corridor	33		34		34			101		35		32		34		34		135
West Coast	62		63		66			191		58		59		60		59		236
Total	212		214		215			641		211		205		213		211		840
* Excludes D&A of all equity affiliates.
Operating and SG&A Expenses*
Atlantic Basin/Europe	240		211		218			669		298		240		233		242		1,013
Gulf Coast	382		330		352			1,064		376		305		330		358		1,369
Central Corridor	146		141		131			418		115		131		131		145		522
West Coast	254		257		290			801		241		240		275		334		1,090
Total	1,022		939		991			2,952		1,030		916		969		1,079		3,994
* Excludes operating and SG&A expenses of all equity affiliates.
Turnaround Expense, included in Operating and SG&A Expenses*
Atlantic Basin/Europe	20		13		17			50		98		21		4		10		133
Gulf Coast	90		29		44			163		105		10		24		44		183
Central Corridor	25		8		9			42		2		4		7		7		20
West Coast	13		17		50			80		40		25		20		69		154
Total	148		67		120			335		245		60		55		130		490
* Excludes turnaround expense of all equity affiliates.
Taxes Other than Income Taxes, excluding Excise Taxes
Atlantic Basin/Europe	15		11		12			38		15		15		13		13		56
Gulf Coast	23		16		23			62		25		23		23		17		88
Central Corridor	13		10		10			33		12		9		10		12		43
West Coast	24		21		23			68		27		25		26		24		102
Total	75		58		68			201		79		72		72		66		289
Foreign Currency Gains (Losses) Pre-Tax	(5	)	(7	)	10			(2	)	11		7		(1	)	7		24
Refining—Equity Affiliate Information
Equity in earnings (losses) of affiliates	81		128		67			276		(64	)	214		297		349		796
Less: Share of equity affiliate gross margin included in Realized Refining Margin and other equity-affiliate-related costs*	(277	)	(309	)	(273	)		(859	)	(239	)	(397	)	(469	)	(507	)	(1,612	)
Equity-affiliate-related expenses not included in Realized Refining Margins	(196	)	(181	)	(206	)		(583	)	(303	)	(183	)	(172	)	(158	)	(816	)
Regional Totals
Atlantic Basin/Europe	(13	)	(14	)	(7	)		(34	)	(43	)	(18	)	—		5		(56	)
Gulf Coast	—		(2	)	1			(1	)	(1	)	(3	)	(1	)	(1	)	(6	)
Central Corridor	(183	)	(165	)	(200	)		(548	)	(259	)	(162	)	(171	)	(162	)	(754	)
Total	(196	)	(181	)	(206	)		(583	)	(303	)	(183	)	(172	)	(158	)	(816	)
* Other costs associated with equity affiliates which do not flow through equity earnings.

Page 9

REFINING (continued)
	2019									2018
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Reconciliation of Refining Income (Loss) before Income Taxes to Adjusted EBITDA ($ Millions)
Income (loss) before income taxes	(198	)	983		856			1,641		112		1,190		1,232		2,001		4,535
Plus:
Depreciation and amortization	212		214		215			641		211		205		213		211		840
EBITDA	14		1,197		1,071			2,282		323		1,395		1,445		2,212		5,375
Special Item Adjustments (pre-tax):
Pending claims and settlements	(21	)	—		—			(21	)	—		—		—		—		—
Certain tax impacts	—		—		—			—		(2	)	1		(1	)	(4	)	(6	)
Asset dispositions	—		—		(17	)		(17	)	—		—		—		—		—
Pension settlement expense	—		—		—			—		—		—		32		11		43
EBITDA, Adjusted for Special Items	(7	)	1,197		1,054			2,244		321		1,396		1,476		2,219		5,412
Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes	—		—		1			1		—		—		1		—		1
Proportional share of selected equity affiliates net interest	(1	)	(1	)	(1	)		(3	)	(2	)	(1	)	(2	)	(1	)	(6	)
Proportional share of selected equity affiliates depreciation and amortization	71		69		70			210		68		68		68		68		272
Adjusted EBITDA	63		1,265		1,124			2,452		387		1,463		1,543		2,286		5,679
Operating Statistics
Atlantic Basin/Europe*
Crude Oil Charge Input (MB/D)	427		519		509			485		419		495		465		526		477
Total Processed Inputs (MB/D)	463		562		542			523		436		527		492		583		510
Crude Oil Capacity Utilization (%)	80	%	97	%	95	%		90	%	78	%	92	%	87	%	98	%	89	%
Clean Product Yield (%)	86	%	88	%	87	%		87	%	84	%	86	%	85	%	90	%	86	%
* Includes our proportionate share of a refinery complex in Karlsruhe, Germany.
Gulf Coast
Crude Oil Charge Input (MB/D)	654		757		729			714		696		767		656		751		717
Total Processed Inputs (MB/D)	727		849		815			797		769		845		759		835		802
Crude Oil Capacity Utilization (%)	85	%	99	%	95	%		93	%	93	%	102	%	87	%	100	%	95	%
Clean Product Yield (%)	80	%	81	%	78	%		80	%	76	%	80	%	79	%	81	%	79	%
Central Corridor*
Crude Oil Charge Input (MB/D)	445		521		517			495		458		513		531		524		507
Total Processed Inputs (MB/D)	466		538		531			512		475		531		548		544		525
Crude Oil Capacity Utilization (%)	86	%	101	%	100	%		96	%	93	%	104	%	108	%	106	%	103	%
Clean Product Yield (%)	90	%	88	%	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)	307		317		351			325		340		362		354		316		343
Total Processed Inputs (MB/D)	341		359		375			358		367		387		382		358		373
Crude Oil Capacity Utilization (%)	84	%	87	%	97	%		89	%	93	%	100	%	97	%	87	%	94	%
Clean Product Yield (%)	88	%	81	%	85	%		85	%	86	%	86	%	87	%	88	%	87	%
Worldwide—Including Proportionate Share of Equity Affiliates
Crude Oil Charge Input (MB/D)	1,833		2,114		2,106			2,019		1,913		2,137		2,006		2,117		2,044
Total Processed Inputs (MB/D)	1,997		2,308		2,263			2,190		2,047		2,290		2,181		2,320		2,210
Crude Oil Capacity Utilization (%)	84	%	97	%	97	%		93	%	89	%	100	%	93	%	99	%	95	%
Clean Product Yield (%)	85	%	84	%	84	%		84	%	83	%	84	%	84	%	86	%	84	%

Page 10

REFINING (continued)
	2019									2018
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD		1st Qtr	2nd Qtr	3rd Qtr	4th Qtr		YTD
Refined Petroleum Products Production (MB/D)
Atlantic Basin/Europe*
Gasoline	202		240		230			223		172	222	203	258		213
Distillates	185		241		227			218		185	218	202	248		214
Other	80		89		88			86		81	92	89	85		87
Total	467		570		545			527		438	532	494	591		514
* Includes our proportionate share of a refinery complex in Karlsruhe, Germany.
Gulf Coast
Gasoline	296		348		312			319		303	337	307	344		323
Distillates	261		310		297			289		260	315	266	300		285
Other	165		192		208			189		212	198	192	195		200
Total	722		850		817			797		775	850	765	839		808
Central Corridor*
Gasoline	244		260		256			254		242	263	269	280		264
Distillates	175		214		208			199		181	201	210	212		201
Other	49		67		71			62		56	73	74	57		65
Total	468		541		535			515		479	537	553	549		530
* Includes our proportionate share of the Borger Refinery and Wood River Refinery.
West Coast
Gasoline	165		167		170			167		180	190	180	168		179
Distillates	136		124		148			137		136	143	150	147		144
Other	41		66		53			53		53	54	51	44		50
Total	342		357		371			357		369	387	381	359		373
Worldwide—Including Proportionate Share of Equity Affiliates
Gasoline	907		1,015		968			963		897	1,012	959	1,050		979
Distillates	757		889		880			843		762	877	828	907		844
Other	335		414		420			390		402	417	406	381		402
Total	1,999		2,318		2,268			2,196		2,061	2,306	2,193	2,338		2,225
Market Indicators*
Crude and Crude Differentials ($/BBL)
WTI	54.87		59.80		56.44			57.04		62.88	67.99	69.71	59.09		64.92
Brent	63.20		68.82		61.94			64.65		66.76	74.35	75.27	67.76		71.04
LLS	62.40		66.92		60.64			63.32		65.79	73.11	74.31	66.55		69.94
ANS	64.50		68.18		63.07			65.25		66.96	74.10	75.55	68.65		71.31
WTI less Maya	(3.91	)	(2.26	)	(0.20	)		(2.12	)	5.16	5.83	3.57	(4.73	)	2.46
WTI less WCS (settlement differential)	12.29		10.67		12.24			11.73		24.28	19.27	22.25	39.43		26.31
Natural Gas ($/MMBtu)
Henry Hub	2.89		2.51		2.33			2.57		3.01	2.82	2.90	3.74		3.12
Product Margins ($/BBL)
Atlantic Basin/Europe
East Coast Gasoline less Brent	1.79		12.06		11.84			8.56		9.23	13.36	12.73	1.32		9.16
East Coast Distillate less Brent	18.05		14.27		17.43			16.58		16.35	15.83	16.20	19.13		16.88
Gulf Coast
Gulf Coast Gasoline less LLS	1.58		8.18		8.24			6.00		8.65	9.44	8.63	(0.70	)	6.51
Gulf Coast Distillate less LLS	16.41		14.28		17.22			15.97		15.15	15.28	15.54	16.82		15.70
Central Corridor
Central Gasoline less WTI	9.72		18.71		15.28			14.57		13.57	16.04	16.68	8.53		13.71
Central Distillate less WTI	24.92		22.49		21.39			22.93		19.85	22.03	22.77	26.64		22.82
West Coast
West Coast Gasoline less ANS	11.83		23.50		19.48			18.27		16.40	18.76	14.13	9.69		14.74
West Coast Distillate less ANS	16.20		21.10		18.38			18.56		17.28	18.69	17.85	18.60		18.11
Worldwide Market Crack Spread ($/BBL)**	9.77		15.24		14.60			13.20		13.12	14.86	14.21	9.11		12.83
* Based on daily spot prices, unless otherwise noted.
** Weighted average based on Phillips 66 crude capacity.

Page 11

MARKETING AND SPECIALTIES
	Millions of Dollars, Except as Indicated
	2019						2018
	1st Qtr	2nd Qtr		3rd Qtr	4th Qtr	YTD	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Income before Income Taxes
Marketing and Other	138	294		440		872	176		244		361		525		1,306
Specialties	67	59		58		184	59		66		62		64		251
Income before Income Taxes	205	353		498		1,056	235		310		423		589		1,557
Income before Income Taxes ($/BBL)
U.S.	0.60	1.09		1.66		1.14	0.85		1.05		1.48		1.40		1.21
International	2.25	4.81		5.19		4.10	1.51		3.32		4.80		10.05		5.00
Realized Marketing Fuel Margins ($/BBL)*
U.S.**	1.06	1.53		2.11		1.59	1.39		1.30		1.80		1.95		1.62
International	3.80	6.03		6.37		5.42	3.32		5.25		6.58		11.99		6.87
* See note on the use of non-GAAP measures below. Also, reconciliations of income before income taxes to realized marketing fuel margin for each period and by region are included in the "Realized Margin Non-GAAP Reconciliations" section below.
** U.S. realized marketing fuel margins for Q2 and Q3 2018 have been revised to exclude the effects of special items on fuel margins.
Other Realized Margins and Revenues not included in Marketing Fuel Margins*
Marketing and Other	131	143		168		442	127		183		185		143		638
Specialties	100	93		83		276	82		86		89		90		347
Total	231	236		251		718	209		269		274		233		985
* Excludes gain on dispositions and excise taxes on sales of refined petroleum products.
Equity in Earnings of Affiliates
Marketing and Other	22	28		31		81	20		27		25		27		99
Specialties	11	7		21		39	12		22		14		17		65
Total	33	35		52		120	32		49		39		44		164
Depreciation and Amortization*
Marketing and Other	21	21		21		63	24		24		22		24		94
Specialties	5	4		4		13	5		5		5		5		20
Total	26	25		25		76	29		29		27		29		114
* Excludes D&A of all equity affiliates.
Operating and SG&A Expenses*
Marketing and Other	261	297		300		858	266		294		303		298		1,161
Specialties	36	36		39		111	36		36		34		37		143
Total	297	333		339		969	302		330		337		335		1,304
* Excludes operating and SG&A expenses of all equity affiliates.
Refined Petroleum Products Sales (MB/D)
U.S. Marketing
Gasoline	1,063	1,151		1,132		1,116	1,024		1,110		1,102		1,204		1,111
Distillates	759	898		914		857	706		843		780		873		801
Other	—	—		—		—	1		—		—		—		—
Total	1,822	2,049		2,046		1,973	1,731		1,953		1,882		2,077		1,912
International Marketing
Gasoline	88	89		90		89	81		86		85		87		84
Distillates	181	187		185		184	173		169		175		179		174
Other	18	19		16		18	19		17		17		20		18
Total	287	295		291		291	273		272		277		286		276
Worldwide Marketing
Gasoline	1,151	1,240		1,222		1,205	1,105		1,196		1,187		1,291		1,195
Distillates	940	1,085		1,099		1,041	879		1,012		955		1,052		975
Other	18	19		16		18	20		17		17		20		18
Total	2,109	2,344		2,337		2,264	2,004		2,225		2,159		2,363		2,188
Foreign Currency Gains (Losses) Pre-Tax	2	(1	)	—		1	4		—		1		(6	)	(1	)
Reconciliation of Marketing and Specialties Income before Income Taxes to Adjusted EBITDA
Income before income taxes	205	353		498		1,056	235		310		423		589		1,557
Plus:
Depreciation and amortization	26	25		25		76	29		29		27		29		114
EBITDA	231	378		523		1,132	264		339		450		618		1,671
Special Item Adjustments (pre-tax):
Certain tax impacts	—	—		—		—	(13	)	(56	)	(44	)	—		(113	)
Pension settlement expense	—	—		—		—	—		—		6		3		9
EBITDA, Adjusted for Special Items	231	378		523		1,132	251		283		412		621		1,567
Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes	—	—		—		—	—		—		—		—		—
Proportional share of selected equity affiliates net interest	1	2		1		4	—		2		1		1		4
Proportional share of selected equity affiliates depreciation and amortization	3	2		3		8	3		2		3		3		11
Adjusted EBITDA	235	382		527		1,144	254		287		416		625		1,582

Page 12

CORPORATE AND OTHER
	Millions of Dollars, Except as Indicated
	2019									2018
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Loss before Income Taxes	(210	)	(205	)	(178	)		(593	)	(196	)	(227	)	(227	)	(203	)	(853	)
Detail of Loss before Income Taxes
Net interest expense	(108	)	(105	)	(98	)		(311	)	(112	)	(128	)	(114	)	(105	)	(459	)
Corporate overhead and other*	(102	)	(100	)	(80	)		(282	)	(84	)	(99	)	(113	)	(98	)	(394	)
Total	(210	)	(205	)	(178	)		(593	)	(196	)	(227	)	(227	)	(203	)	(853	)
* First-quarter 2018 equity earnings reflect a tax benefit from an equity affiliate as a result of U.S. tax reform.
Net Interest Expense
Interest expense	(132	)	(133	)	(131	)		(396	)	(123	)	(136	)	(131	)	(131	)	(521	)
Capitalized interest	13		18		22			53		—		1		6		10		17
Interest income	11		10		11			32		11		7		11		16		45
Total	(108	)	(105	)	(98	)		(311	)	(112	)	(128	)	(114	)	(105	)	(459	)
Reconciliation of Corporate and Other Loss before Income Taxes to Adjusted EBITDA
Loss before income taxes	(210	)	(205	)	(178	)		(593	)	(196	)	(227	)	(227	)	(203	)	(853	)
Plus:
Net interest expense	108		105		98			311		112		128		114		105		459
Depreciation and amortization	20		20		18			58		22		21		20		19		82
EBITDA	(82	)	(80	)	(62	)		(224	)	(62	)	(78	)	(93	)	(79	)	(312	)
Special Item Adjustments (pre-tax):
U.S. tax reform	—		—		—			—		(16	)	—		—		—		(16	)
Pension settlement expense	—		—		—			—		—		—		4		2		6
EBITDA, Adjusted for Special Items	(82	)	(80	)	(62	)		(224	)	(78	)	(78	)	(89	)	(77	)	(322	)
Other Adjustments (pre-tax):
None	—		—		—			—		—		—		—		—		—
Adjusted EBITDA	(82	)	(80	)	(62	)		(224	)	(78	)	(78	)	(89	)	(77	)	(322	)
Foreign Currency Gains (Losses) Pre-Tax	(1	)	(2	)	(1	)		(4	)	—		8		—		—		8
Phillips 66 Total Company Debt
Total Debt	11,298		11,439		11,925			11,925		11,621		11,364		11,337		11,160		11,160
Debt-to-Capital Ratio (%)	30	%	30	%	31	%		31	%	32	%	31	%	31	%	29	%	29	%
Total Equity	26,745		27,306		27,092			27,092		24,300		24,960		25,795		27,153		27,153
RECONCILIATION OF CONSOLIDATED NET INCOME TO ADJUSTED EBITDA ATTRIBUTABLE TO PHILLIPS 66
	Millions of Dollars
	2019									2018
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Net income	270		1,504		793			2,567		585		1,404		1,568		2,316		5,873
Plus:
Income tax expense	70		325		150			545		132		431		407		602		1,572
Net interest expense	108		105		98			311		112		128		114		105		459
Depreciation and amortization	331		334		336			1,001		336		337		346		337		1,356
Phillips 66 EBITDA	779		2,268		1,377			4,424		1,165		2,300		2,435		3,360		9,260
Special Item Adjustments (pre-tax):
Impairments	—		—		853			853		—		—		—		—		—
Impairments by equity affiliates	—		—		47			47		—		—		—		28		28
Pending claims and settlements	(21	)	—		—			(21	)	—		—		21		—		21
Certain tax impacts	—		—		—			—		(15	)	(55	)	(45	)	(4	)	(119	)
Pension settlement expense	—		—		—			—		—		—		49		18		67
Lower-of-cost-or-market inventory adjustments	—		—		42			42		—		—		—		—		—
Asset dispositions	—		—		(17	)		(17	)	—		—		—		—		—
U.S. tax reform	—		—		—			—		(16	)	—		—		—		(16	)
Phillips 66 EBITDA, Adjusted for Special Items	758		2,268		2,302			5,328		1,134		2,245		2,460		3,402		9,241
Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes	22		24		24			70		23		30		31		18		102
Proportional share of selected equity affiliates net interest	43		39		46			128		35		47		42		43		167
Proportional share of selected equity affiliates depreciation and amortization	233		232		236			701		214		229		233		236		912
EBITDA attributable to Phillips 66 noncontrolling interests	(89	)	(101	)	(104	)		(294	)	(80	)	(87	)	(97	)	(97	)	(361	)
Phillips 66 Adjusted EBITDA	967		2,462		2,504			5,933		1,326		2,464		2,669		3,602		10,061
Use of Non-GAAP Financial Information—This earnings release supplemental data includes the terms "EBITDA," "adjusted EBITDA," "realized refining margin per barrel," "realized marketing fuel margin per barrel," and "adjusted capital spending." 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 measures most directly comparable to EBITDA and adjusted EBITDA are net income for consolidated company information and income before income taxes for segment information. Reconciliations of net income and income before income taxes to EBITDA and adjusted EBITDA are included in this earnings release supplemental data. 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 GAAP measure most directly comparable to both realized margin per barrel measures is income before income taxes per barrel. Reconciliations of income before income taxes per barrel to realized refining margin and realized marketing fuel margin are included in this earnings release supplemental data. Adjusted capital spending is a non-GAAP financial measure that demonstrates the portion of total consolidated capital expenditures and investments funded by Phillips 66. The GAAP financial measure most comparable to adjusted capital spending is capital expenditures and investments. A reconciliation of capital expenditures and investments to adjusted capital spending is included in this earnings release supplemental data. Adjusted effective tax rate demonstrates the effective tax rate with the consideration of the tax effect on special items. The GAAP financial measure most comparable to adjusted effective tax rate is effective tax rate. A reconciliation of effective tax rate to adjusted effective tax rate is included in this earnings release supplemental data.

Page 13

REALIZED MARGIN NON-GAAP RECONCILIATIONS
RECONCILIATION OF INCOME (LOSS) BEFORE INCOME TAXES TO REALIZED REFINING MARGINS
	Millions of Dollars, Except as Indicated
	2019									2018
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
ATLANTIC BASIN/EUROPE
Income (loss) before income taxes	(7	)	258		296			547		(108	)	164		209		302		567
Plus:
Taxes other than income taxes	15		11		12			38		15		15		13		13		56
Depreciation, amortization and impairments	50		49		49			148		52		50		50		49		201
Selling, general and administrative expenses	7		10		10			27		13		15		16		19		63
Operating expenses	233		201		208			642		285		225		217		223		950
Equity in losses of affiliates	3		3		3			9		2		3		2		3		10
Other segment (income) expense, net	6		4		(24	)		(14	)	(7	)	—		(3	)	(1	)	(11	)
Proportional share of refining gross margins contributed by equity affiliates	17		19		19			55		29		28		16		14		87
Special items:
Certain tax impacts	—		—		—			—		—		—		(1	)	(4	)	(5	)
Realized refining margins	324		555		573			1,452		281		500		519		618		1,918
Total processed inputs (MB)	41,682		51,172		49,895			142,749		39,218		47,978		45,233		53,613		186,042
Adjusted total processed inputs (MB)	41,682		51,172		49,895			142,749		39,218		47,978		45,233		53,613		186,042
Income (loss) before income taxes ($/BBL)**	(0.17	)	5.04		5.93			3.83		(2.75	)	3.42		4.62		5.63		3.05
Realized refining margins ($/BBL)***	7.76		10.85		11.48			10.17		7.17		10.42		11.48		11.54		10.32
GULF COAST
Income (loss) before income taxes	(118	)	222		184			288		—		366		210		464		1,040
Plus:
Taxes other than income taxes	23		16		23			62		25		23		23		17		88
Depreciation, amortization and impairments	67		68		66			201		66		64		69		69		268
Selling, general and administrative expenses	(2	)	8		7			13		10		13		13		21		57
Operating expenses	384		322		345			1,051		366		292		317		337		1,312
Equity in (earnings) losses of affiliates	—		2		(1	)		1		1		3		1		1		6
Other segment (income) expense, net	1		(5	)	1			(3	)	(1	)	3		1		—		3
Proportional share of refining gross margins contributed by equity affiliates	—		—		—			—		—		—		—		—		—
Realized refining margins	355		633		625			1,613		467		764		634		909		2,774
Total processed inputs (MB)	65,434		77,186		74,936			217,556		69,207		76,875		69,745		76,838		292,665
Adjusted total processed inputs (MB)	65,434		77,186		74,936			217,556		69,207		76,875		69,745		76,838		292,665
Income (loss) before income taxes ($/BBL)**	(1.80	)	2.88		2.46			1.32		—		4.76		3.01		6.04		3.55
Realized refining margins ($/BBL)***	5.44		8.20		8.34			7.42		6.75		9.93		9.09		11.84		9.48
CENTRAL CORRIDOR
Income before income taxes	77		520		408			1,005		272		521		839		1,185		2,817
Plus:
Taxes other than income taxes	13		10		10			33		12		9		10		12		43
Depreciation, amortization and impairments	33		34		34			101		35		32		34		34		135
Selling, general and administrative expenses	1		7		6			14		7		7		7		13		34
Operating expenses	145		134		125			404		108		124		124		132		488
Equity in (earnings) losses of affiliates	(84	)	(133	)	(69	)		(286	)	61		(220	)	(300	)	(353	)	(812	)
Other segment (income) expense, net	(2	)	4		(3	)		(1	)	(4	)	(8	)	4		(5	)	(13	)
Proportional share of refining gross margins contributed by equity affiliates	267		298		269			834		198		381		472		514		1,565
Special items:
Pending claims and settlements	(21	)	—		—			(21	)	—		—		—		—		—
Realized refining margins	429		874		780			2,083		689		846		1,190		1,532		4,257
Total processed inputs (MB)	23,893		26,244		26,740			76,877		26,236		26,209		26,778		27,076		106,299
Adjusted total processed inputs (MB)*	41,896		48,932		48,853			139,681		42,765		48,347		50,410		50,039		191,561
Income before income taxes ($/BBL)**	3.22		19.81		15.26			13.07		10.37		19.88		31.33		43.77		26.50
Realized refining margins ($/BBL)***	10.23		17.84		15.99			14.91		16.11		17.51		23.61		30.60		22.22

Page 14

RECONCILIATION OF INCOME (LOSS) BEFORE INCOME TAXES TO REALIZED REFINING MARGINS (continued)
	Millions of Dollars, Except as Indicated
	2019									2018
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
WEST COAST
Income (loss) before income taxes	(150	)	(17	)	(32	)		(199	)	(52	)	139		(26	)	50		111
Plus:
Taxes other than income taxes	24		21		23			68		25		25		26		24		100
Depreciation, amortization and impairments	62		63		66			191		58		60		60		59		237
Selling, general and administrative expenses	5		8		8			21		11		12		11		16		50
Operating expenses	249		249		282			780		230		228		264		318		1,040
Other segment (income) expense, net	2		1		1			4		3		(14	)	—		2		(9	)
Realized refining margins	192		325		348			865		275		450		335		469		1,529
Total processed inputs (MB)	30,703		32,697		34,498			97,898		33,051		35,195		35,132		32,954		136,332
Adjusted total processed inputs (MB)	30,703		32,697		34,498			97,898		33,051		35,195		35,132		32,954		136,332
Income (loss) before income taxes ($/BBL)**	(4.89	)	(0.52	)	(0.93	)		(2.03	)	(1.57	)	3.95		(0.74	)	1.52		0.81
Realized refining margins ($/BBL)***	6.25		9.94		10.11			8.84		8.32		12.77		9.53		14.18		11.20
WORLDWIDE
Income (loss) before income taxes	(198	)	983		856			1,641		112		1,190		1,232		2,001		4,535
Plus:
Taxes other than income taxes	75		58		68			201		77		72		72		66		287
Depreciation, amortization and impairments	212		214		215			641		211		206		213		211		841
Selling, general and administrative expenses	11		33		31			75		41		47		47		69		204
Operating expenses	1,011		906		960			2,877		989		869		922		1,010		3,790
Equity in (earnings) losses of affiliates	(81	)	(128	)	(67	)		(276	)	64		(214	)	(297	)	(349	)	(796	)
Other segment (income) expense, net	7		4		(25	)		(14	)	(9	)	(19	)	2		(4	)	(30	)
Proportional share of refining gross margins contributed by equity affiliates	284		317		288			889		227		409		488		528		1,652
Special items:
Certain tax impacts	—		—		—			—		—		—		(1	)	(4	)	(5	)
Pending claims and settlements	(21	)	—		—			(21	)	—		—		—		—		—
Realized refining margins	1,300		2,387		2,326			6,013		1,712		2,560		2,678		3,528		10,478
Total processed inputs (MB)	161,712		187,299		186,069			535,080		167,712		186,257		176,888		190,481		721,338
Adjusted total processed inputs (MB)*	179,715		209,987		208,182			597,884		184,241		208,395		200,520		213,444		806,600
Income (loss) before income taxes ($/BBL)**	(1.22	)	5.25		4.60			3.07		0.67		6.39		6.96		10.50		6.29
Realized refining margins ($/BBL)***	7.23		11.37		11.18			10.06		9.29		12.28		13.36		16.53		12.99
* Adjusted total processed inputs include our proportional share of processed inputs of an equity affiliate.
** Income (loss) before income taxes 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 15

RECONCILIATION OF INCOME BEFORE INCOME TAXES TO REALIZED MARKETING FUEL MARGINS
	Millions of Dollars, Except as Indicated
	2019									2018
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
UNITED STATES
Income before income taxes	98		203		312			613		132		187		256		268		843
Plus:
Taxes other than income taxes*	2		3		3			8		(10	)	3		3		2		(2	)
Depreciation and amortization	2		3		2			7		4		3		3		3		13
Selling, general and administrative expenses	155		183		184			522		176		193		201		193		763
Equity in earnings of affiliates	(1	)	(3	)	(3	)		(7	)	(2	)	(2	)	(3	)	(1	)	(8	)
Other operating revenues*	(82	)	(103	)	(101	)		(286	)	(84	)	(98	)	(104	)	(93	)	(379	)
Other segment income	—		—		—			—		—		—		—		—		—
Special items:
Certain tax impacts	—		—		—			—		—		(56	)	(44	)	—		(100	)
Realized marketing fuel margins	174		286		397			857		216		230		312		372		1,130
Total fuel sales volumes (MB)	164,058		186,488		188,172			538,718		155,780		177,725		173,072		191,119		697,696
Income before income taxes ($/BBL)	0.60		1.09		1.66			1.14		0.85		1.05		1.48		1.40		1.21
Realized marketing fuel margins ($/BBL)**	1.06		1.53		2.11			1.59		1.39		1.30		1.80		1.95		1.62
INTERNATIONAL
Income before income taxes	58		129		139			326		37		82		122		264		505
Plus:
Taxes other than income taxes*	2		1		2			5		(2	)	2		1		1		2
Depreciation and amortization	16		16		16			48		18		18		17		18		71
Selling, general and administrative expenses	62		61		61			184		70		71		66		73		280
Equity in earnings of affiliates	(22	)	(25	)	(27	)		(74	)	(18	)	(25	)	(22	)	(26	)	(91	)
Other operating revenues*	(6	)	(9	)	(10	)		(25	)	(7	)	(6	)	(7	)	(12	)	(32	)
Other segment (income) expense, net	(2	)	1		1			—		(5	)	2		—		5		2
Marketing margins	108		174		182			464		93		144		177		323		737
Less: Margin for non-fuel related sales	10		12		11			33		12		14		10		8		44
Realized marketing fuel margins	98		162		171			431		81		130		167		315		693
Total fuel sales volumes (MB)	25,796		26,837		26,796			79,429		24,534		24,717		25,441		26,257		100,949
Income before income taxes ($/BBL)	2.25		4.81		5.19			4.10		1.51		3.32		4.80		10.05		5.00
Realized marketing fuel margins ($/BBL)**	3.80		6.03		6.37			5.42		3.32		5.25		6.58		11.99		6.87
* 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.
ADJUSTED EFFECTIVE TAX RATE NON-GAAP RECONCILIATION
RECONCILIATION OF EFFECTIVE TAX RATE TO ADJUSTED EFFECTIVE TAX RATE
	Millions of Dollars, Except as Indicated
	2019									2018
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
EFFECTIVE TAX RATES
Income before income taxes	340		1,829		943			3,112		717		1,835		1,975		2,918		7,445
Special items	(21	)	—		925			904		(31	)	(55	)	25		42		(19	)
Adjusted income before income taxes	319		1,829		1,868			4,016		686		1,780		2,000		2,960		7,426
Income tax expense	70		325		150			545		132		431		407		602		1,572
Special items	(4	)	45		235			276		(12	)	(38	)	60		22		32
Adjusted income tax expense	66		370		385			821		120		393		467		624		1,604
Effective tax rate (%)	20.6	%	17.8	%	15.9	%		17.5	%	18.4	%	23.5	%	20.6	%	20.6	%	21.1	%
Adjusted effective tax rate (%)	20.7	%	20.2	%	20.6	%		20.4	%	17.5	%	22.1	%	23.4	%	21.1	%	21.6	%

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Document and Entity Information Document and Entity Information	Oct. 25, 2019
Document and Entity Information [Abstract]
Document Type	8-K
Document Period End Date	Oct. 25, 2019
Entity Registrant Name	Phillips 66
Entity Incorporation, State or Country Code	DE
Entity File Number	001-35349
Entity Tax Identification Number	45-3779385
Entity Address, Address Line One	2331 CityWest Boulevard
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77042
City Area Code	281
Local Phone Number	293-6600
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common stock, $0.01 par value
Trading Symbol	PSX
Security Exchange Name	NYSE
Entity Emerging Growth Company	false
Entity Central Index Key	0001534701
Amendment Flag	false