Phillips 66 - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - October 27, 2017

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8-K - 8-K - Phillips 66psx-2017930_erx8xk.htm
EX-99.1 - EXHIBIT 99.1 - Phillips 66psx-2017930_ex991.htm
 
 
 
 
 
 
 
 
 
 
 
 
 
Exhibit 99.2
Phillips 66 Earnings Release Supplemental Data
psxphillips66.jpg 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CONSOLIDATED INCOME STATEMENT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Millions of Dollars
 
 
 
 
2017
 
2016
 
 
 
 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr
YTD

 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

Revenues and Other Income
 
 
 
 
 
 
 
 
 
 
 
Sales and other operating revenues*
22,894

24,087

25,627

 
72,608

 
17,409

21,849

21,624

23,397

84,279

Equity in earnings of affiliates
365

462

530

 
1,357

 
333

435

391

255

1,414

Net gain on dispositions
1

14

—

 
15

 
—

6

3

1

10

Other income
452

18

49

 
519

 
18

17

24

15

74

Total Revenues and Other Income
23,712

24,581

26,206

 
74,499

 
17,760

22,307

22,042

23,668

85,777

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Costs and Expenses
 
 
 
 
 
 
 
 
 
 
 
Purchased crude oil and products
17,679

18,353

19,463

 
55,495

 
11,930

16,198

15,961

18,379

62,468

Operating expenses
1,270

1,137

1,134

 
3,541

 
1,023

994

1,061

1,197

4,275

Selling, general and administrative expenses
384

439

435

 
1,258

 
386

421

411

420

1,638

Depreciation and amortization
315

320

337

 
972

 
280

290

293

305

1,168

Impairments
2

15

1

 
18

 
—

2

2

1

5

Taxes other than income taxes*
3,156

3,356

3,456

 
9,968

 
3,461

3,594

3,424

3,209

13,688

Accretion on discounted liabilities
5

6

5

 
16

 
5

5

5

6

21

Interest and debt expense
105

107

112

 
324

 
86

83

81

88

338

Foreign currency transaction (gains) losses
(1
)
—

7

 
6

 
(7
)
—

(9
)
1

(15
)
Total Costs and Expenses
22,915

23,733

24,950

 
71,598

 
17,164

21,587

21,229

23,606

83,586

Income before income taxes
797

848

1,256

 
2,901

 
596

720

813

62

2,191

Provision for income taxes
234

267

407

 
908

 
198

204

277

(132
)
547

Net Income
563

581

849

 
1,993

 
398

516

536

194

1,644

Less: net income attributable to noncontrolling interests
28

31

26

 
85

 
13

20

25

31

89

Net Income Attributable to Phillips 66
535

550

823

 
1,908

 
385

496

511

163

1,555

* Includes excise taxes on petroleum products sales:
3,036

3,252

3,376

 
9,664

 
3,360

3,508

3,357

3,156

13,381

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Income Attributable to Phillips 66 Per Share of Common Stock (dollars)
 
 
 
 
 
 
 
 
 
 
 
Basic
1.02

1.06

1.60

 
3.68

 
0.72

0.94

0.97

0.31

2.94

Diluted
1.02

1.06

1.60

 
3.66

 
0.72

0.93

0.96

0.31

2.92

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-Average Common Shares Outstanding (thousands)
 
 
 
 
 
 
 
 
 
 
 
Basic
521,647

517,785

512,923

 
517,420

 
531,739

528,247

525,991

524,200

527,531

Diluted
524,520

520,160

515,960

 
520,516

 
534,709

531,060

528,798

526,279

530,066

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SUMMARY OF NET INCOME (LOSS) ATTRIBUTABLE TO PHILLIPS 66 BY SEGMENT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Millions of Dollars
 
 
 
 
2017
 
2016
 
 
 
 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr
YTD

 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Midstream
77

59

85

 
221

 
65

39

75

(1
)
178

Chemicals
181

196

121

 
498

 
156

190

101

136

583

Refining
259

224

550

 
1,033

 
86

149

177

(38
)
374

Marketing and Specialties
141

214

208

 
563

 
205

229

267

190

891

Corporate and Other
(123
)
(143
)
(141
)
 
(407
)
 
(127
)
(111
)
(109
)
(124
)
(471
)
Consolidated
535

550

823

 
1,908

 
385

496

511

163

1,555

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SUMMARY OF NET INCOME (LOSS) BEFORE INCOME TAXES BY SEGMENT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Millions of Dollars
 
 
 
 
2017
 
2016
 
 
 
 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr
YTD

 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Midstream
153

130

166

 
449

 
121

84

141

56

402

Chemicals
251

294

163

 
708

 
228

264

176

171

839

Refining
390

307

863

 
1,560

 
127

207

274

(172
)
436

Marketing and Specialties
208

328

317

 
853

 
315

345

400

201

1,261

Corporate and Other
(205
)
(211
)
(253
)
 
(669
)
 
(195
)
(180
)
(178
)
(194
)
(747
)
Consolidated
797

848

1,256

 
2,901

 
596

720

813

62

2,191

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EFFECTIVE TAX RATES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2017
 
2016
 
 
 
 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr
YTD

 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Midstream
26.8
%
26.2
%
29.5
%
 
27.6
%
 
33.9
%
26.2
%
27.0
%
37.5
 %
30.3
%
Chemicals
27.9
%
33.3
%
25.8
%
 
29.7
%
 
31.6
%
28.0
%
42.6
%
20.5
 %
30.5
%
Refining
33.6
%
27.0
%
36.3
%
 
33.8
%
 
32.3
%
28.0
%
35.4
%
77.9
 %
14.2
%
Marketing and Specialties
32.2
%
34.8
%
34.4
%
 
34.0
%
 
34.9
%
33.6
%
33.3
%
5.5
 %
29.3
%
Corporate and Other
36.6
%
29.4
%
41.9
%
 
36.3
%
 
33.8
%
36.7
%
37.1
%
33.5
 %
35.2
%
Consolidated
29.4
%
31.5
%
32.4
%
 
31.3
%
 
33.2
%
28.3
%
34.1
%
(212.9
)%
25.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SUMMARY OF ADJUSTED NET INCOME (LOSS) ATTRIBUTABLE TO PHILLIPS 66 BY SEGMENT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Millions of Dollars
 
 
 
 
2017
 
2016
 
 
 
 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr
YTD

 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

Midstream
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Transportation
56

51

76

 
183

 
72

65

63

44

244

NGL
4

—

(10
)
 
(6
)
 
(11
)
(17
)
3

(5
)
(30
)
DCP Midstream
17

13

1

 
31

 
(21
)
(9
)
9

(6
)
(27
)
Total Midstream
77

64

67

 
208

 
40

39

75

33

187

Chemicals
201

196

153

 
550

 
156

190

190

124

660

Refining
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe
(50
)
109

172

 
231

 
4

35

5

98

142

Gulf Coast
67

56

77

 
200

 
68

5

(13
)
(51
)
9

Central Corridor
62

29

198

 
289

 
20

55

142

19

236

West Coast
(81
)
39

101

 
59

 
(6
)
57

—

(161
)
(110
)
Total Refining
(2
)
233

548

 
779

 
86

152

134

(95
)
277

Marketing and Specialties
 
 
 
 
 
 
 
 
 
 
 
Marketing and Other
124

185

163

 
472

 
162

199

228

114

703

Specialties
17

33

48

 
98

 
43

30

39

26

138

Total Marketing and Specialties
141

218

211

 
570

 
205

229

267

140

841

Corporate and Other
(123
)
(142
)
(121
)
 
(386
)
 
(127
)
(111
)
(110
)
(119
)
(467
)
Consolidated
294

569

858

 
1,721

 
360

499

556

83

1,498




Page 1

 
psxphillips66.jpg

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SPECIAL ITEMS INCLUDED IN NET INCOME ATTRIBUTABLE TO PHILLIPS 66
(AFTER-TAX)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Millions of Dollars
 
 
 
 
2017
 
2016
 
 
 
 
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

 
29

—

—

—

29

Impairments by equity affiliates
—

—

—

 
—

 
(4
)
—

—

—

(4
)
Hurricane-related costs
—

—

(3
)
 
(3
)
 
—

—

—

—

—

Certain tax impacts
—

—

—

 
—

 
—

—

—

(13
)
(13
)
Equity affiliate ownership restructuring
—

—

—

 
—

 
—

—

—

(21
)
(21
)
Pension settlement expense
—

(5
)
(2
)
 
(7
)
 
—

—

—

—

—

Total Midstream
—

(5
)
18

 
13

 
25

—

—

(34
)
(9
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chemicals
 
 
 
 
 
 
 
 
 
 
 
Impairments by equity affiliates
(20
)
—

—

 
(20
)
 
—

—

(89
)
—

(89
)
Hurricane-related costs
—

—

(32
)
 
(32
)
 
—

—

—

—

—

Certain tax impacts
—

—

—

 
—

 
—

—

—

12

12

Total Chemicals
(20
)
—

(32
)
 
(52
)
 
—

—

(89
)
12

(77
)
 
 
 
 
 
 
 
 
 
 
 
 
Refining
 
 
 
 
 
 
 
 
 
 
 
Pending claims and settlements
—

13

18

 
31

 
—

—

43

—

43

Certain tax impacts
—

—

—

 
—

 
—

16

—

82

98

Hurricane-related costs
—

—

(8
)
 
(8
)
 
—

—

—

—

—

Gain on consolidation of business
261

—

—

 
261

 
—

—

—

—

—

Recognition of deferred logistics commitments
—

—

—

 
—

 
—

(19
)
—

—

(19
)
Railcar lease residual value deficiencies and related costs
—

—

—

 
—

 
—

—

—

(25
)
(25
)
Pension settlement expense
—

(22
)
(8
)
 
(30
)
 
—

—

—

—

—

Total Refining
261

(9
)
2

 
254

 
—

(3
)
43

57

97

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Marketing and Specialties
 
 
 
 
 
 
 
 
 
 
 
Certain tax impacts
—

—

—

 
—

 
—

—

—

50

50

Hurricane-related costs
—

—

(1
)
 
(1
)
 
—

—

—

—

—

Pension settlement expense
—

(4
)
(2
)
 
(6
)
 
—

—

—

—

—

Total Marketing and Specialties
—

(4
)
(3
)
 
(7
)
 
—

—

—

50

50

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate and Other
 
 
 
 
 
 
 
 
 
 
 
Pending claims and settlements
—

2

(19
)
 
(17
)
 
—

—

1

—

1

Certain tax impacts
—

—

—

 
—

 
—

—

—

(5
)
(5
)
Pension settlement expense
—

(3
)
(1
)
 
(4
)
 
—

—

—

—

—

Total Corporate and Other
—

(1
)
(20
)
 
(21
)
 
—

—

1

(5
)
(4
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Phillips 66
241

(19
)
(35
)
 
187

 
25

(3
)
(45
)
80

57

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
By Business Lines/Regions
 
 
 
 
 
 
 
 
 
 
 
Midstream
 
 
 
 
 
 
 
 
 
 
 
Transportation
—

—

21

 
21

 
—

—

—

2

2

NGL
—

(5
)
(3
)
 
(8
)
 
—

—

—

(5
)
(5
)
DCP Midstream
—

—

—

 
—

 
25

—

—

(31
)
(6
)
Total Midstream
—

(5
)
18

 
13

 
25

—

—

(34
)
(9
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Refining
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe
—

(2
)
(1
)
 
(3
)
 
—

(3
)
—

65

62

Gulf Coast
261

(3
)
(10
)
 
248

 
—

—

43

—

43

Central Corridor
—

(2
)
(1
)
 
(3
)
 
—

—

—

(2
)
(2
)
West Coast
—

(2
)
14

 
12

 
—

—

—

(6
)
(6
)
Total Refining
261

(9
)
2

 
254

 
—

(3
)
43

57

97

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Marketing and Specialties
 
 
 
 
 
 
 
 
 
 
 
Marketing and Other
—

(4
)
(3
)
 
(7
)
 
—

—

—

44

44

Specialties
—

—

—

 
—

 
—

—

—

6

6

Total Marketing and Specialties
—

(4
)
(3
)
 
(7
)
 
—

—

—

50

50

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SPECIAL ITEMS INCLUDED IN INCOME BEFORE INCOME TAXES
(PRE-TAX)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Millions of Dollars
 
 
 
 
2017
 
2016
 
 
 
 
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

 
45

—

—

—

45

Impairments by equity affiliates
—

—

—

 
—

 
(6
)
—

—

—

(6
)
Hurricane-related costs
—

—

(4
)
 
(4
)
 
—

—

—

—

—

Equity affiliate ownership restructuring
—

—

—

 
—

 
—

—

—

(33
)
(33
)
Pension settlement expense
—

(8
)
(3
)
 
(11
)
 
—

—

—

—

—

Total Midstream
—

(8
)
30

 
22

 
39

—

—

(33
)
6

 
 
 
 
 
 
 
 
 
 
 
 
Chemicals
 
 
 
 
 
 
 
 
 
 
 
Impairments by equity affiliates
(33
)
—

—

 
(33
)
 
—

—

(89
)
—

(89
)
Hurricane-related costs
—

—

(53
)
 
(53
)
 
—

—

—

—

—

Total Chemicals
(33
)
—

(53
)
 
(86
)
 
—

—

(89
)
—

(89
)
 
 
 
 
 
 
 
 
 
 
 
 
Refining
 
 
 
 
 
 
 
 
 
 
 
Pending claims and settlements
—

21

30

 
51

 
—

—

70

—

70

Certain tax impacts
—

—

—

 
—

 
—

—

—

32

32

Hurricane-related costs
—

—

(12
)
 
(12
)
 
—

—

—

—

—

Gain on consolidation of business
423

—

—

 
423

 
—

—

—

—

—

Recognition of deferred logistics commitments
—

—

—

 
—

 
—

(30
)
—

—

(30
)
Railcar lease residual value deficiencies and related costs
—

—

—

 
—

 
—

—

—

(40
)
(40
)
Pension settlement expense
—

(35
)
(13
)
 
(48
)
 
—

—

—

—

—

Total Refining
423

(14
)
5

 
414

 
—

(30
)
70

(8
)
32

 
 
 
 
 
 
 
 
 
 
 
 
Marketing and Specialties
 
 
 
 
 
 
 
 
 
 
 
Hurricane-related costs
—

—

(1
)
 
(1
)
 
—

—

—

—

—

Pension settlement expense
—

(7
)
(3
)
 
(10
)
 
—

—

—

—

—

Total Marketing and Specialties
—

(7
)
(4
)
 
(11
)
 
—

—

—

—

—

 
 
 
 
 
 
 
 
 
 
 
 
Corporate and Other
 
 
 
 
 
 
 
 
 
 
 
Pending claims and settlements
—

3

(31
)
 
(28
)
 
—

—

2

—

2

Pension settlement expense
—

(5
)
(2
)
 
(7
)
 
—

—

—

—

—

Total Corporate and Other
—

(2
)
(33
)
 
(35
)
 
—

—

2

—

2

 
 
 
 
 
 
 
 
 
 
 
 
Total Phillips 66
390

(31
)
(55
)
 
304

 
39

(30
)
(17
)
(41
)
(49
)
 
 
 
 
 
 
 
 
 
 
 
 
By Business Lines/Regions
 
 
 
 
 
 
 
 
 
 
 
Midstream
 
 
 
 
 
 
 
 
 
 
 
Transportation
—

—

34

 
34

 
—

—

—

—

—

NGL
—

(8
)
(4
)
 
(12
)
 
—

—

—

—

—

DCP Midstream
—

—

—

 
—

 
39

—

—

(33
)
6

Total Midstream
—

(8
)
30

 
22

 
39

—

—

(33
)
6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Refining
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe
—

(4
)
(2
)
 
(6
)
 
—

(30
)
—

27

(3
)
Gulf Coast
423

(5
)
(14
)
 
404

 
—

—

70

(16
)
54

Central Corridor
—

(3
)
(1
)
 
(4
)
 
—

—

—

(11
)
(11
)
West Coast
—

(2
)
22

 
20

 
—

—

—

(8
)
(8
)
Total Refining
423

(14
)
5

 
414

 
—

(30
)
70

(8
)
32

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Marketing and Specialties
 
 
 
 
 
 
 
 
 
 
 
Marketing and Other
—

(7
)
(4
)
 
(11
)
 
—

—

—

—

—

Specialties
—

—

—

 
—

 
—

—

—

—

—

Total Marketing and Specialties
—

(7
)
(4
)
 
(11
)
 
—

—

—

—

—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Page 2

 
psxphillips66.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CASH FLOW INFORMATION
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Millions of Dollars
 
 
 
 
2017
 
2016
 
 
 
 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr
YTD

 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

Cash Flows From Operating Activities
 
 
 
 
 
 
 
 
 
 
 
Net income
563

581

849

 
1,993

 
398

516

536

194

1,644

Depreciation and amortization
315

320

337

 
972

 
280

290

293

305

1,168

Impairments
2

15

1

 
18

 
—

2

2

1

5

Accretion on discounted liabilities
5

6

5

 
16

 
5

5

5

6

21

Deferred taxes
493

264

27

 
784

 
154

37

276

145

612

Undistributed equity earnings
(212
)
(40
)
(291
)
 
(543
)
 
(166
)
(349
)
(257
)
(43
)
(815
)
Net gain on dispositions
(1
)
(14
)
—

 
(15
)
 
—

(6
)
(3
)
(1
)
(10
)
Gain on consolidation of business
(423
)
—

—

 
(423
)
 
—

—

—

—

—

Other
6

92

(332
)
 
(234
)
 
51

65

(308
)
29

(163
)
Net working capital changes
(1,297
)
641

(195
)
 
(851
)
 
(464
)
595

339

31

501

Net Cash Provided by (Used in) Operating Activities
(549
)
1,865

401

 
1,717

 
258

1,155

883

667

2,963

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash Flows From Investing Activities
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures and investments
(470
)
(458
)
(367
)
 
(1,295
)
 
(750
)
(620
)
(661
)
(813
)
(2,844
)
Proceeds from asset dispositions*
9

42

14

 
65

 
5

10

144

(3
)
156

Advances/loans—related parties
—

—

(9
)
 
(9
)
 
(75
)
(107
)
(84
)
(166
)
(432
)
Collection of advances/loans—related parties
325

—

—

 
325

 
—

—

107

1

108

Restricted cash received from consolidation of business
318

—

—

 
318

 
—

—

—

—

—

Other
(24
)
(37
)
(19
)
 
(80
)
 
(42
)
(33
)
(57
)
(14
)
(146
)
Net Cash Provided by (Used in) Investing Activities
158

(453
)
(381
)
 
(676
)
 
(862
)
(750
)
(551
)
(995
)
(3,158
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash Flows From Financing Activities
 
 
 
 
 
 
 
 
 
 
 
Issuance of debt
712

1,891

480

 
3,083

 
50

100

250

1,690

2,090

Repayment of debt
(773
)
(2,137
)
(251
)
 
(3,161
)
 
(100
)
(66
)
(252
)
(415
)
(833
)
Issuance of common stock**
4

2

17

 
23

 
4

5

5

20

34

Repurchase of common stock
(285
)
(381
)
(461
)
 
(1,127
)
 
(391
)
(242
)
(179
)
(230
)
(1,042
)
Dividends paid on common stock
(326
)
(360
)
(356
)
 
(1,042
)
 
(296
)
(329
)
(329
)
(328
)
(1,282
)
Distributions to noncontrolling interests
(24
)
(30
)
(29
)
 
(83
)
 
(11
)
(17
)
(17
)
(30
)
(75
)
Net proceeds from issuance of Phillips 66 Partners LP common units
40

131

—

 
171

 
—

669

303

—

972

Other**
(34
)
(20
)
(12
)
 
(66
)
 
(39
)
12

(11
)
(4
)
(42
)
Net Cash Provided by (Used in) Financing Activities
(686
)
(904
)
(612
)
 
(2,202
)
 
(783
)
132

(230
)
703

(178
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash
2

17

(22
)
 
(3
)
 
36

(28
)
3

(1
)
10

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Change in Cash, Cash Equivalents and Restricted Cash
(1,075
)
525

(614
)
 
(1,164
)
 
(1,351
)
509

105

374

(363
)
Cash, cash equivalents and restricted cash at beginning of period
2,711

1,636

2,161

 
2,711

 
3,074

1,723

2,232

2,337

3,074

Cash, Cash Equivalents and Restricted Cash at End of Period
1,636

2,161

1,547

 
1,547

 
1,723

2,232

2,337

2,711

2,711

* Includes return of investments in equity affiliates and working capital true-ups on dispositions.
 
 
 
** Prior periods recasted to conform to the current year presentation.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CAPITAL PROGRAM
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Millions of Dollars
 
 
 
 
2017
 
2016
 
 
 
 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr
YTD

 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

Consolidated Capital Expenditures and Investments
 
 
 
 
 
 
 
 
 
 
 
Midstream
182

199

178

 
559

 
446

284

315

408

1,453

Chemicals
—

—

—

 
—

 
—

—

—

—

—

Refining
259

216

148

 
623

 
261

277

289

322

1,149

Marketing and Specialties
15

23

27

 
65

 
15

22

26

35

98

Corporate and Other
14

20

14

 
48

 
28

37

31

48

144

Total Consolidated
470

458

367

 
1,295

 
750

620

661

813

2,844

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proportional Share of Select Equity Affiliates Capital Expenditures and Investments*
 
 
 
 
 
 
 
 
 
 
 
DCP Midstream (Midstream)
44

60

62

 
166

 
35

20

21

23

99

CPChem (Chemicals)
256

131

119

 
506

 
247

294

205

241

987

WRB Refining (Refining)
42

22

27

 
91

 
37

43

36

48

164

Select Equity Affiliates
342

213

208

 
763

 
319

357

262

312

1,250


 
 
 
 
 
 
 
 
 
 
 
Total Capital Program*
 
 
 
 
 
 
 
 
 
 
 
Midstream
226

259

240

 
725

 
481

304

336

431

1,552

Chemicals
256

131

119

 
506

 
247

294

205

241

987

Refining
301

238

175

 
714

 
298

320

325

370

1,313

Marketing and Specialties
15

23

27

 
65

 
15

22

26

35

98

Corporate and Other
14

20

14

 
48

 
28

37

31

48

144

Total Capital Program
812

671

575

 
2,058

 
1,069

977

923

1,125

4,094

* 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

 
psxphillips66.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MIDSTREAM
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2017
 
2016
 
 
 
 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr
YTD

 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

Midstream Net Income (Loss) Attributable to Phillips 66 ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Transportation
56

51

97

 
204

 
72

65

63

46

246

NGL
4

(5
)
(13
)
 
(14
)
 
(11
)
(17
)
3

(10
)
(35
)
DCP Midstream
17

13

1

 
31

 
4

(9
)
9

(37
)
(33
)
Midstream Net Income (Loss) Attributable to Phillips 66
77

59

85

 
221

 
65

39

75

(1
)
178

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Midstream Income (Loss) before Income Taxes ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Transportation
107

102

174

 
383

 
123

116

112

90

441

NGL
19

6

(9
)
 
16

 
(9
)
(18
)
15

7

(5
)
DCP Midstream
27

22

1

 
50

 
7

(14
)
14

(41
)
(34
)
Midstream Income (Loss) before Income Taxes
153

130

166

 
449

 
121

84

141

56

402

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Midstream Adjusted EBITDA ($ Millions)*
 
 
 
 
 
 
 
 
PSXP**
149

157

154

 
460

 
71

92

111

147

421

Other Midstream
70

54

107

 
231

 
116

81

98

37

332

EBITDA attributable to Phillips 66 noncontrolling interests
(46
)
(47
)
(49
)
 
(142
)
 
(20
)
(30
)
(37
)
(45
)
(132
)
Transportation and NGL
173

164

212

 
549

 
167

143

172

139

621

DCP Midstream
71

65

42

 
178

 
44

64

97

69

274

Midstream Adjusted EBITDA
244

229

254

 
727

 
211

207

268

208

894

* See reconciliation of net income to Adjusted EBITDA on next page.
 
 
 
 
 
 
 
** PSXP at 100%. Does not include certain PSXP adjustments made for PSXP stand-alone reporting purposes.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and Amortization ($ Millions)
 
 
 
 
 
 
 
 
Transportation
33

35

46

 
114

 
30

32

36

33

131

NGL
35

34

35

 
104

 
18

18

20

28

84

DCP Midstream
—

—

—

 
—

 
—

—

—

—

—

Total
68

69

81

 
218

 
48

50

56

61

215

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating and SG&A Expense ($ Millions)
 
 
 
 
 
 
 
 
Transportation
161

177

187

 
525

 
122

136

145

153

556

NGL
57

63

65

 
185

 
45

45

38

49

177

DCP Midstream
—

(1
)
—

 
(1
)
 
(1
)
—

(1
)
(1
)
(3
)
Total
218

239

252

 
709

 
166

181

182

201

730

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Transportation Volumes (MB/D)
 
 
 
 
 
 
 
 
Pipelines*
3,469

3,430

3,447

 
3,449

 
3,488

3,638

3,495

3,424

3,511

Terminals**
2,395

2,581

2,675

 
2,552

 
2,209

2,442

2,417

2,619

2,422

* 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)*
175

177

177

 
176

 
161

174

173

172

170

* Excludes DCP Midstream.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100% DCP Midstream Results
 
 
 
 
 
 
 
 
 
 
 
Net Income Attributable, excludes parent company income tax related to DCP's earnings ($ Millions)*
53

42

3

 
98

 
24

(29
)
25

(83
)
(63
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and Amortization ($ Millions)
94

94

94

 
282

 
95

95

94

94

378

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating and SG&A Expense ($ Millions)
240

254

226

 
720

 
245

241

204

281

971

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Interest Expense ($ Millions)*
76

73

77

 
226

 
79

79

78

86

322

* Net of interest income.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital Expenditures and Investments ($ Millions)
87

121

124

 
332

 
69

41

41

46

197

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected DCP Operating Statistics
 
 
 
 
 
 
 
 
Total Throughput (TBtu/D)
5.7

5.7

5.7

 
5.7

 
6.9

6.7

6.4

6.1

7.1

NGL Production (MB/D)
341

367

378

 
362

 
382

416

403

371

393

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted Average NGL Price*
 
 
 
 
 
 
 
 
DCP Midstream ($/BBL)
25.31

22.94

26.12

 
24.79

 
15.34

19.26

18.98

23.19

19.19

DCP Midstream ($/gal)
0.60

0.55

0.62

 
0.59

 
0.37

0.46

0.45

0.55

0.46

* Based on index prices from the Mont Belvieu and Conway market hubs that are weighted by NGL component and location mix.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MLP Distributions ($ Millions)*
 
 
 
 
 
 
 
 
GP Distribution from PSXP to Phillips 66
32

36

43

 
111

 
16

21

26

28

91

LP Distribution from PSXP to Phillips 66
37

40

44

 
121

 
28

30

34

36

128

GP Distribution from DCP Midstream, LP to DCP Midstream***
23

23

**

 
46

 
31

31

31

31

124

LP Distribution from DCP Midstream, LP to DCP Midstream***
41

40

**

 
81

 
19

19

19

19

76

* Cash distributions declared attributable to general partner interest, common unit ownership and incentive distribution rights. These distributions are eliminated in the respective sponsors consolidated financial statements.
 
 
 
 
 
 
 
** Pending DCP Midstream release.
 
 
 
 
 
 
 
 
*** Represents 100 percent of DCP Midstream's distributions from DCP Midstream, LP (formerly DCP Midstream Partners, LP).
 
 
 
 
 
 
 
 

Page 4

 
psxphillips66.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MIDSTREAM (continued)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Millions of Dollars
 
 
 
 
2017
 
2016
 
 
 
 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr
YTD

 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

Reconciliation of Midstream Net Income to Adjusted EBITDA
 
 
 
 
 
 
 
 
Midstream net income
112

96

117

 
325

 
80

62

103

35

280

Plus:
 
 
 
 
 
 
 
 
 
 
 
Provision for income taxes
41

34

49

 
124

 
41

22

38

21

122

Interest revenue
(1
)
—

—

 
(1
)
 
—

—

—

—

—

Depreciation and amortization
68

69

81

 
218

 
48

50

56

61

215

Midstream EBITDA
220

199

247

 
666

 
169

134

197

117

617

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Special Item Adjustments (pre-tax):
 
 
 
 
 
 
 
 
Pending claims and settlements
—

—

(37
)
 
(37
)
 
(45
)
—

—

—

(45
)
Impairments by equity affiliates
—

—

—

 
—

 
6

—

—

—

6

Hurricane-related costs
—

—

4

 
4

 
—

—

—

—

—

Equity affiliate ownership restructuring
—

—

—

 
—

 
—

—

—

33

33

Pension settlement expense
—

8

3

 
11

 
—

—

—

—

—

Midstream EBITDA, Adjusted for Special Items
220

207

217

 
644

 
130

134

197

150

611

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Adjustments (pre-tax):
 
 
 
 
 
 
 
 
 
 
 
EBITDA attributable to Phillips 66 noncontrolling interests
(46
)
(47
)
(49
)
 
(142
)
 
(20
)
(30
)
(37
)
(45
)
(132
)
Proportional share of selected equity affiliates income taxes
—

1

1

 
2

 
1

1

—

—

2

Proportional share of selected equity affiliates net interest
27

26

31

 
84

 
42

43

42

42

169

Proportional share of selected equity affiliates depreciation and amortization
43

42

54

 
139

 
58

59

66

61

244

Midstream Adjusted EBITDA*
244

229

254

 
727

 
211

207

268

208

894

* Proportional share of selected equity affiliates is net of noncontrolling interests.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Midstream Adjusted EBITDA by Business Line
 
 
 
 
 
 
 
 
100% PSXP Results
 
 
 
 
 
 
 
 
 
 
 
PSXP net income
97

103

99

 
299

 
94

100

112

102

408

Plus:
 
 
 
 
 
 
 
 
 
 
 
Provision for income taxes
—

1

—

 
1

 
—

1

—

1

2

Net interest expense
24

24

23

 
71

 
10

11

10

21

52

Depreciation and amortization
26

26

30

 
82

 
23

23

25

25

96

PSXP EBITDA
147

154

152

 
453

 
127

135

147

149

558

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjustments (pre-tax):
 
 
 
 
 
 
 
 
 
 
 
EBITDA attributable to predecessors
—

—

—

 
—

 
(58
)
(45
)
(39
)
(5
)
(147
)
PSXP EBITDA, Adjusted for Predecessors*
147

154

152

 
453

 
69

90

108

144

411

* Does not include certain PSXP adjustments made for PSXP stand-alone reporting purposes.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Adjustments (pre-tax):
 
 
 
 
 
 
 
 
 
 
 
Proportional share of selected equity affiliates income taxes
—

—

—

 
—

 
—

—

—

—

—

Proportional share of selected equity affiliates net interest
—

—

—

 
—

 
—

—

—

—

—

Proportional share of selected equity affiliates depreciation and amortization
2

3

2

 
7

 
2

2

3

3

10

PSXP Adjusted EBITDA
149

157

154

 
460

 
71

92

111

147

421

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Transportation and NGL
 
 
 
 
 
 
 
 
Total Transportation and NGL net income
95

83

116

 
294

 
76

71

94

72

313

Plus:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for income taxes
31

25

49

 
105

 
38

27

33

25

123

Interest revenue
(1
)
—

—

 
(1
)
 
—

—

—

—

—

Depreciation and amortization
68

69

81

 
218

 
48

50

56

61

215

Total Transportation and NGL EBITDA*
193

177

246

 
616

 
162

148

183

158

651

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Special Item Adjustments (pre-tax):
 
 
 
 
 
 
 
 
Pension settlement expense
—

8

3

 
11

 
—

—

—

—

—

Pending claims and settlements
—

—

(37
)
 
(37
)
 
—

—

—

—

—

Hurricane-related costs
—

—

4

 
4

 
—

—

—

—

—

Total Transportation and NGL EBITDA, Adjusted for Special Items*
193

185

216

 
594

 
162

148

183

158

651

* Includes PSXP at 100%.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Adjustments (pre-tax):
 
 
 
 
 
 
 
 
 
 
 
EBITDA attributable to Phillips 66 noncontrolling interests
(46
)
(47
)
(49
)
 
(142
)
 
(20
)
(30
)
(37
)
(45
)
(132
)
Proportional share of selected equity affiliates income taxes
—

—

—

 
—

 
—

—

—

—

—

Proportional share of selected equity affiliates net interest
10

10

18

 
38

 
10

10

11

10

41

Proportional share of selected equity affiliates depreciation and amortization
16

16

27

 
59

 
15

15

15

16

61

Total Transportation and NGL Adjusted EBITDA
173

164

212

 
549

 
167

143

172

139

621

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DCP Midstream
 
 
 
 
 
 
 
 
DCP Midstream net income
17

13

1

 
31

 
4

(9
)
9

(37
)
(33
)
Plus:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for income taxes
10

9

—

 
19

 
3

(5
)
5

(4
)
(1
)
DCP Midstream EBITDA
27

22

1

 
50

 
7

(14
)
14

(41
)
(34
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Special Item Adjustments (pre-tax):
 
 
 
 
 
 
 
 
Pending claims and settlements
—

—

—

 
—

 
(45
)
—

—

—

(45
)
Impairments by equity affiliates
—

—

—

 
—

 
6

—

—

—

6

Equity affiliate ownership restructuring
—

—

—

 
—

 
—

—

—

33

33

DCP Midstream EBITDA, Adjusted for Special Items
27

22

1

 
50

 
(32
)
(14
)
14

(8
)
(40
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Adjustments (pre-tax):
 
 
 
 
 
 
 
 
Proportional share of selected equity affiliates income taxes
—

1

1

 
2

 
1

1

—

—

2

Proportional share of selected equity affiliates net interest
17

16

13

 
46

 
32

33

32

32

129

Proportional share of selected equity affiliates depreciation and amortization
27

26

27

 
80

 
43

44

51

45

183

DCP Midstream Adjusted EBITDA*
71

65

42

 
178

 
44

64

97

69

274

* Proportional share of selected equity affiliates is net of noncontrolling interests.
 
 
 
 
 
 
 
 
 

Page 5

 
psxphillips66.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CHEMICALS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2017
 
2016
 
 
 
 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr
YTD

 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chemicals Net Income Attributable to Phillips 66 ($ Millions)
181

196

121

 
498

 
156

190

101

136

583

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100% CPChem Results
 
 
 
 
 
 
 
 
 
 
 
Net Income (Loss), excludes parent company income tax related to CPChem's earnings ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Olefins and Polyolefins
461

537

295

 
1,293

 
422

478

460

290

1,650

Specialties, Aromatics and Styrenics
53

61

46

 
160

 
49

64

(90
)
63

86

Corporate and Other
(11
)
(8
)
(10
)
 
(29
)
 
(12
)
(13
)
(15
)
(9
)
(49
)
Total
 
 
 
503

590

331

 
1,424

 
459

529

355

344

1,687

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (Loss) before Income Taxes ($ Millions)
 
 
 
 
 
 
 
 
Olefins and Polyolefins
470

546

304

 
1,320

 
432

493

471

291

1,687

Specialties, Aromatics and Styrenics
62

65

51

 
178

 
56

72

(86
)
71

113

Corporate and Other
(11
)
(8
)
(10
)
 
(29
)
 
(12
)
(13
)
(13
)
(9
)
(47
)
Total
 
 
 
521

603

345

 
1,469

 
476

552

372

353

1,753


 
 
 
 
 
 
 
 
 
 
 
Depreciation and Amortization ($ Millions)
73

75

85

 
233

 
77

77

79

83

316

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Interest Expense ($ Millions)*
(1
)
(1
)
(3
)
 
(5
)
 
—

—

(1
)
—

(1
)
* Net of interest income.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investing Cash Flows ($ Millions)
 
 
 
 
 
 
 
 
Capital Expenditures and Investments
512

262

238

 
1,012

 
493

588

411

482

1,974

Advances to Equity Companies
6

2

3

 
11

 
14

23

10

6

53

Advance Repayments from Equity Companies
(7
)
—

—

 
(7
)
 
—

(6
)
(26
)
(31
)
(63
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Externally Marketed Sales Volumes (MM Lbs)*
 
 
 
 
 
 
 
 
Olefins and Polyolefins
4,016

4,137

3,842

 
11,995

 
4,002

4,139

4,155

3,715

16,011

Specialties, Aromatics and Styrenics
1,206

1,175

1,095

 
3,476

 
1,254

1,212

1,284

1,161

4,911

Total
 
 
 
5,222

5,312

4,937

 
15,471

 
5,256

5,351

5,439

4,876

20,922

* 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 (%)*
89
%
98
%
83
%
 
90
%
 
94
%
92
%
93
%
86
%
91
%
* Revised to exclude polyethylene pipe operations.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Market Indicators*
 
 
 
 
 
 
 
 
 
 
 
U.S. Industry Prices
 
 
 
 
 
 
 
 
 
 
 
Ethylene, Average Acquisition Contract (cents/lb)
31.87

29.61

28.21

 
29.90

 
23.95

27.99

33.11

30.11

28.79

HDPE Blow Molding, Domestic Spot (cents/lb)
55.83

58.00

58.67

 
57.50

 
47.42

52.58

54.17

54.67

52.21

 
 
 
 
 
 
 
 
 
 
 
 
U.S. Industry Costs
 
 
 
 
 
 
 
 
 
 
 
Ethylene, Cash Cost Weighted Average Feed (cents/lb)
11.80

12.54

16.14

 
13.49

 
9.80

12.04

10.59

14.31

11.69

HDPE Blow Molding, Total Cash Cost (cents/lb)
44.90

42.59

41.13

 
42.87

 
36.50

40.60

45.95

42.96

41.50

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ethylene to High-Density Polyethylene Chain Cash Margin (cents/lb)
31.00

32.48

29.61

 
31.03

 
25.07

27.93

30.74

27.51

27.81

* Source: IHS, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of Chemicals Net Income to Adjusted EBITDA ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Chemicals net income
181

196

121

 
498

 
156

190

101

136

583

Plus:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for income taxes
70

98

42

 
210

 
72

74

75

35

256

Chemicals EBITDA
251

294

163

 
708

 
228

264

176

171

839

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Special Item Adjustments (pre-tax):
 
 
 
 
 
 
 
 
Impairments by equity affiliates
33

—

—

 
33

 
—

—

89

—

89

Hurricane-related costs
—

—

53

 
53

 
—

—

—

—

—

Chemicals EBITDA, Adjusted for Special Items
284

294

216

 
794

 
228

264

265

171

928

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Adjustments (pre-tax):
 
 
 
 
 
 
 
 
Proportional share of selected equity affiliates income taxes
20

14

18

 
52

 
18

26

20

13

77

Proportional share of selected equity affiliates net interest
1

2

1

 
4

 
2

3

1

2

8

Proportional share of selected equity affiliates depreciation and amortization
69

70

76

 
215

 
71

70

70

74

285

Chemicals Adjusted EBITDA
374

380

311

 
1,065

 
319

363

356

260

1,298


Page 6

 
psxphillips66.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REFINING
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2017
 
2016
 
 
 
 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr
YTD

 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

Refining Net Income (Loss) Attributable to Phillips 66 ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe
(50
)
107

171

 
228

 
4

32

5

163

204

Gulf Coast
328

53

67

 
448

 
68

5

30

(51
)
52

Central Corridor
62

27

197

 
286

 
20

55

142

17

234

West Coast
(81
)
37

115

 
71

 
(6
)
57

—

(167
)
(116
)
Refining Net Income (Loss) Attributable to Phillips 66
259

224

550

 
1,033

 
86

149

177

(38
)
374

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Refining Income (Loss) before Income Taxes ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe
(98
)
120

247

 
269

 
3

14

4

166

187

Gulf Coast
521

86

109

 
716

 
107

7

51

(95
)
70

Central Corridor
97

42

317

 
456

 
32

96

220

19

367

West Coast
(130
)
59

190

 
119

 
(15
)
90

(1
)
(262
)
(188
)
Refining Income (Loss) before Income Taxes
390

307

863

 
1,560

 
127

207

274

(172
)
436

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Realized Refining Margins ($/BBL)*
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe
6.29

7.90

10.02

 
8.22

 
5.79

6.15

5.04

8.19

6.26

Gulf Coast
8.03

6.74

7.26

 
7.33

 
6.76

5.18

5.47

4.61

5.49

Central Corridor
10.54

9.96

14.04

 
11.55

 
7.41

8.65

11.18

7.50

8.70

West Coast
9.95

10.83

12.95

 
11.37

 
9.70

10.94

9.07

6.30

9.15

Worldwide
8.55

8.44

10.49

 
9.19

 
7.11

7.13

7.23

6.47

6.99

* Based on total processed inputs and includes proportional share of refining margins contributed by certain equity affiliates. Realized margin excludes special items.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and Amortization ($ Millions)*
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe
49

47

47

 
143

 
47

54

46

52

199

Gulf Coast
65

68

68

 
201

 
57

58

58

61

234

Central Corridor
27

27

32

 
86

 
26

26

26

28

106

West Coast
58

62

58

 
178

 
56

58

58

58

230

Total
199

204

205

 
608

 
186

196

188

199

769

* Excludes D&A of all equity affiliates.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating and SG&A Expense ($ Millions)*
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe
271

213

201

 
685

 
236

223

215

207

881

Gulf Coast
350

308

312

 
970

 
286

311

344

344

1,285

Central Corridor
144

191

131

 
466

 
114

119

126

137

496

West Coast
324

234

224

 
782

 
250

202

233

343

1,028

Total
1,089

946

868

 
2,903

 
886

855

918

1,031

3,690

* Excludes Operating and SG&A Expense of all equity affiliates.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Turnaround Expense ($ Millions), included in Operating and SG&A Expense*
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe
83

19

7

 
109

 
26

10

17

20

73

Gulf Coast
72

23

11

 
106

 
23

26

55

51

155

Central Corridor
27

79

14

 
120

 
10

17

18

15

60

West Coast
117

33

11

 
161

 
56

16

27

119

218

Total
299

154

43

 
496

 
115

69

117

205

506

* Excludes Turnaround Expense of all equity affiliates.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Taxes Other than Income Taxes, excluding Excise Taxes ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe
16

13

14

 
43

 
17

15

13

13

58

Gulf Coast
27

23

23

 
73

 
23

21

12

17

73

Central Corridor
14

13

9

 
36

 
13

12

7

10

42

West Coast
20

21

—

 
41

 
22

20

21

19

82

Total
77

70

46

 
193

 
75

68

53

59

255

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign Currency Gains (Losses) After-Tax ($ Millions)
—

1

(5
)
 
(4
)
 
5

—

5

—

10

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Refining—Equity Affiliate Information ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Equity in earnings of affiliates
(6
)
22

144

 
160

 
(9
)
80

68

24

163

Less: Share of equity affiliate gross margin included in Realized Refining Margin and other equity-affiliate-related costs*
239

(191
)
(262
)
 
(214
)
 
(146
)
(229
)
(145
)
(165
)
(685
)
Equity-affiliate-related expenses not included in Realized Refining Margins
233

(169
)
(118
)
 
(54
)
 
(155
)
(149
)
(77
)
(141
)
(522
)
Regional Totals
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe
(17
)
(18
)
25

 
(10
)
 
(18
)
(17
)
(16
)
(12
)
(63
)
Gulf Coast
428

(2
)
1

 
427

 
14

17

77

15

123

Central Corridor
(178
)
(149
)
(144
)
 
(471
)
 
(151
)
(149
)
(138
)
(144
)
(582
)
Total
233

(169
)
(118
)
 
(54
)
 
(155
)
(149
)
(77
)
(141
)
(522
)
* Other costs associated with equity affiliates which do not flow through equity earnings.
 


Page 7

 
psxphillips66.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REFINING (continued)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2017
 
2016
 
 
 
 
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
259

224

550

 
1,033

 
86

149

177

(38
)
374

Plus:
 
 
 
 
 
 
 
 
 
 
 
Provision for income taxes
131

83

313

 
527

 
41

58

97

(134
)
62

Depreciation and amortization
199

204

205

 
608

 
186

196

188

199

769

Refining EBITDA
589

511

1,068

 
2,168

 
313

403

462

27

1,205

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Special Item Adjustments (pre-tax):
 
 
 
 
 
 
 
 
 
 
 
Pending claims and settlements
—

(21
)
(30
)
 
(51
)
 
—

—

(70
)
—

(70
)
Certain tax impacts
—

—

—

 
—

 
—

—

—

(32
)
(32
)
Hurricane-related costs
—

—

12

 
12

 
—

—

—

—

—

Gain on consolidation of business
(423
)
—

—

 
(423
)
 
—

—

—

—

—

Recognition of deferred logistics commitments
—

—

—

 
—

 
—

30

—

—

30

Railcar lease residual value deficiencies and related costs
—

—

—

 
—

 
—

—

—

40

40

Pension settlement expense
—

35

13

 
48

 
—

—

—

—

—

Refining EBITDA, Adjusted for Special Items
166

525

1,063

 
1,754

 
313

433

392

35

1,173

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Adjustments (pre-tax):
 
 
 
 
 
 
 
 
Proportional share of selected equity affiliates income taxes
—

—

—

 
—

 
—

—

—

—

—

Proportional share of selected equity affiliates net interest
—

(1
)
(1
)
 
(2
)
 
—

—

—

—

—

Proportional share of selected equity affiliates depreciation and amortization
65

65

68

 
198

 
63

64

65

65

257

Refining Adjusted EBITDA
231

589

1,130

 
1,950

 
376

497

457

100

1,430

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Statistics
 
 
 
 
 
 
 
 
Atlantic Basin/Europe*
 
 
 
 
 
 
 
 
 
 
 
Crude Oil Charge Input (MB/D)
366

533

536

 
479

 
577

594

573

529

568

Total Processed Inputs (MB/D)
446

569

569

 
528

 
607

626

607

570

602

Crude Oil Capacity Utilization (%)
70
%
103
%
103
%
 
92
%
 
98
%
101
%
100
%
102
%
100
%
Clean Product Yield (%)
88
%
87
%
88
%
 
88
%
 
83
%
84
%
85
%
89
%
85
%
* Includes our proportionate share of a refinery complex in Karlsruhe, Germany.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gulf Coast
 
 
 
 
 
 
 
 
 
 
 
Crude Oil Charge Input (MB/D)
668

715

694

 
692

 
679

738

701

701

704

Total Processed Inputs (MB/D)
743

795

767

 
768

 
748

807

770

775

775

Crude Oil Capacity Utilization (%)
90
%
96
%
93
%
 
93
%
 
91
%
99
%
94
%
94
%
95
%
Clean Product Yield (%)
80
%
81
%
80
%
 
81
%
 
79
%
80
%
81
%
82
%
80
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Central Corridor*
 
 
 
 
 
 
 
 
 
 
 
Crude Oil Charge Input (MB/D)
470

465

480

 
472

 
472

500

487

479

485

Total Processed Inputs (MB/D)
488

480

497

 
489

 
491

514

505

498

502

Crude Oil Capacity Utilization (%)
95
%
94
%
97
%
 
96
%
 
96
%
101
%
99
%
97
%
98
%
Clean Product Yield (%)
90
%
88
%
88
%
 
89
%
 
88
%
89
%
86
%
89
%
88
%
* Includes our proportionate share of the Borger Refinery and Wood River Refinery.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
West Coast
 
 
 
 
 
 
 
 
 
 
 
Crude Oil Charge Input (MB/D)
279

366

368

 
338

 
323

348

344

257

318

Total Processed Inputs (MB/D)
304

388

398

 
364

 
351

370

372

287

345

Crude Oil Capacity Utilization (%)
78
%
102
%
102
%
 
94
%
 
90
%
97
%
96
%
71
%
88
%
Clean Product Yield (%)
87
%
87
%
86
%
 
87
%
 
81
%
87
%
88
%
86
%
85
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Worldwide—Including Proportionate Share of Equity Affiliates
 
 
 
 
 
 
 
 
 
 
Crude Oil Charge Input (MB/D)
1,783

2,079

2,078

 
1,981

 
2,051

2,180

2,105

1,966

2,075

Total Processed Inputs (MB/D)
1,981

2,232

2,231

 
2,149

 
2,197

2,317

2,254

2,130

2,224

Crude Oil Capacity Utilization (%)
84
%
98
%
98
%
 
94
%
 
94
%
100
%
97
%
93
%
96
%
Clean Product Yield (%)
85
%
85
%
85
%
 
85
%
 
82
%
84
%
84
%
86
%
84
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Refined Products Production (MB/D)
 
 
 
 
 
 
 
 
Atlantic Basin/Europe*
 
 
 
 
 
 
 
 
 
 
 
Gasoline
213

252

252

 
239

 
249

256

252

250

252

Distillates
163

228

230

 
207

 
241

250

246

239

244

Other
81

95

92

 
90

 
121

123

113

89

111

Total
457

575

574

 
536

 
611

629

611

578

607

* Includes our proportionate share of a refinery complex in Karlsruhe, Germany.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gulf Coast
 
 
 
 
 
 
 
 
 
 
 
Gasoline
296

324

310

 
310

 
286

321

309

321

309

Distillates
275

292

286

 
284

 
277

306

291

293

292

Other
178

185

175

 
180

 
192

190

176

169

182

Total
749

801

771

 
774

 
755

817

776

783

783

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Central Corridor*
 
 
 
 
 
 
 
 
 
 
 
Gasoline
253

241

253

 
249

 
254

270

250

260

258

Distillates
181

180

182

 
180

 
175

185

183

183

181

Other
59

64

68

 
64

 
65

65

77

59

67

Total
493

485

503

 
493

 
494

520

510

502

506

* Includes our proportionate share of the Borger Refinery and Wood River Refinery.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
West Coast
 
 
 
 
 
 
 
 
 
 
 
Gasoline
154

197

198

 
183

 
161

185

189

142

169

Distillates
110

141

142

 
132

 
123

137

137

105

126

Other
41

50

58

 
49

 
66

49

48

38

50

Total
305

388

398

 
364

 
350

371

374

285

345

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Worldwide—Including Proportionate Share of Equity Affiliates
 
 
 
 
 
 
 
 
 
 
Gasoline
 
 
 
916

1,014

1,013

 
981

 
950

1,032

1,000

973

988

Distillates
 
 
 
729

841

840

 
803

 
816

878

857

820

843

Other
 
 
 
359

394

393

 
383

 
444

427

414

355

410

Total
 
 
 
2,004

2,249

2,246

 
2,167

 
2,210

2,337

2,271

2,148

2,241

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Page 8

 
psxphillips66.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REFINING (continued)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2017
 
2016
 
 
 
 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr
YTD

 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

Market Indicators
 
 
 
 
 
 
 
 
 
 
 
Crude and Crude Differentials ($/BBL)
 
 
 
 
 
 
 
 
 
 
 
WTI
51.83

48.24

48.16

 
49.41

 
33.27

45.48

44.88

49.18

43.20

Brent
53.78

49.83

52.08

 
51.90

 
33.89

45.57

45.85

49.46

43.69

LLS
53.51

50.31

51.65

 
51.83

 
35.14

47.34

46.53

50.54

44.88

ANS
53.83

50.68

52.20

 
52.24

 
34.46

45.72

44.78

50.14

43.77

WTI less Maya
7.10

4.29

1.62

 
4.34

 
7.21

7.70

5.86

6.38

6.79

WTI less WCS
13.79

9.99

10.49

 
11.42

 
13.63

12.92

14.22

15.02

13.95

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Natural Gas ($/MMBtu)
 
 
 
 
 
 
 
 
 
 
 
 
 
Henry Hub
3.00

3.05

2.93

 
2.99

 
1.98

2.10

2.85

2.99

2.48

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Product Margins ($/BBL)
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe
 
 
 
 
 
 
 
 
 
 
 
East Coast Gasoline less Brent
9.46

15.53

19.17

 
14.72

 
11.54

17.92

13.37

13.44

14.07

East Coast Distillate less Brent
12.93

13.29

17.18

 
14.47

 
10.79

12.54

12.59

15.67

12.89

Gulf Coast
 
 
 
 
 
 
 
 
 
 
 
Gulf Coast Gasoline less LLS
9.92

10.86

14.90

 
11.89

 
7.81

11.05

10.17

8.58

9.40

Gulf Coast Distillate less LLS
12.26

11.59

16.44

 
13.43

 
7.92

9.07

11.01

13.39

10.35

Central Corridor
 
 
 
 
 
 
 
 
 
 
 
Central Gasoline less WTI
12.77

14.11

19.32

 
15.40

 
10.24

13.67

14.16

9.40

11.87

Central Distillate less WTI
14.00

14.59

21.98

 
16.86

 
11.08

11.75

15.38

14.03

13.06

West Coast
 
 
 
 
 
 
 
 
 
 
 
West Coast Gasoline less ANS
17.28

21.08

20.83

 
19.73

 
17.66

20.15

16.08

13.26

16.79

West Coast Distillate less ANS
14.84

14.32

20.45

 
16.54

 
11.19

14.70

14.82

17.34

14.51

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Worldwide Market Crack Spread ($/BBL)*
12.24

14.06

18.19

 
14.83

 
10.64

13.84

12.96

12.10

12.39

* Weighted average based on Phillips 66 crude capacity.




Page 9

 
psxphillips66.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MARKETING AND SPECIALTIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2017
 
2016
 
 
 
 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr
YTD

 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

Marketing and Specialties Net Income Attributable to Phillips 66 ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Marketing and Other
124

181

160

 
465

 
162

199

228

158

747

Specialties
17

33

48

 
98

 
43

30

39

32

144

Marketing and Specialties Net Income Attributable to Phillips 66
141

214

208

 
563

 
205

229

267

190

891

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Marketing and Specialties Income before Income Taxes ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Marketing and Other
181

275

242

 
698

 
246

298

339

161

1,044

Specialties
27

53

75

 
155

 
69

47

61

40

217

Marketing and Specialties Income before Income Taxes
208

328

317

 
853

 
315

345

400

201

1,261

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Realized Marketing Fuel Margin ($/BBL)*
 
 
 
 
 
 
 
 
 
 
 
U.S.
1.47

1.74

1.63

 
1.62

 
1.83

1.79

1.88

1.10

1.64

International
3.70

4.95

4.45

 
4.37

 
3.16

4.16

5.19

3.68

4.05

* On third-party petroleum products sales.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Realized Margins not included in Marketing Fuel Margin ($ Millions)*
 
 
 
 
 
 
 
 
 
 
 
Marketing and Other
133

142

160

 
435

 
123

147

143

129

542

Specialties
72

97

120

 
289

 
112

92

104

88

396

Total
205

239

280

 
724

 
235

239

247

217

938

* Excludes Gain on Dispositions and Excise Tax Income.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and Amortization ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Marketing and Other
22

21

24

 
67

 
20

22

24

21

87

Specialties
5

5

5

 
15

 
5

5

5

5

20

Total
27

26

29

 
82

 
25

27

29

26

107

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating and SG&A Expense ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Marketing and Other
245

283

292

 
820

 
244

271

261

262

1,038

Specialties
38

37

39

 
114

 
35

38

38

41

152

Total
283

320

331

 
934

 
279

309

299

303

1,190

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Marketing Petroleum Products Sales (MB/D)
 
 
 
 
 
 
 
 
 
 
 
U.S. Marketing
 
 
 
 
 
 
 
 
 
 
 
Gasoline
1,073

1,188

1,188

 
1,150

 
1,086

1,171

1,158

1,183

1,150

Distillates
 
 
 
667

751

780

 
733

 
706

782

780

773

760

Other
 
 
 
—

—

1

 
—

 
—

1

—

—

—

Total
 
 
 
1,740

1,939

1,969

 
1,883

 
1,792

1,954

1,938

1,956

1,910

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
International Marketing
 
 
 
 
 
 
 
 
 
 
 
Gasoline
 
 
 
82

87

84

 
85

 
90

90

89

82

88

Distillates
 
 
 
168

161

166

 
165

 
197

193

189

168

187

Other
 
 
 
15

18

17

 
17

 
15

18

17

17

16

Total
 
 
 
265

266

267

 
267

 
302

301

295

267

291

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Worldwide Marketing
 
 
 
 
 
 
 
 
 
 
 
Gasoline
 
 
 
1,155

1,275

1,272

 
1,235

 
1,176

1,261

1,247

1,265

1,238

Distillates
 
 
 
835

912

946

 
898

 
903

975

969

941

947

Other
 
 
 
15

18

18

 
17

 
15

19

17

17

16

Total
 
 
 
2,005

2,205

2,236

 
2,150

 
2,094

2,255

2,233

2,223

2,201

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign Currency Gains (Losses) After-Tax ($ Millions)
1

—

1

 
2

 
(1
)
1

—

(1
)
(1
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of Marketing and Specialties Net Income to Adjusted EBITDA ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Marketing and Specialties net income
141

214

208

 
563

 
205

229

267

190

891

Plus:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for income taxes
67

114

109

 
290

 
110

116

133

11

370

Depreciation and amortization
27

26

29

 
82

 
25

27

29

26

107

Marketing and Specialties EBITDA
235

354

346

 
935

 
340

372

429

227

1,368

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Special Item Adjustments (pre-tax):
 
 
 
 
 
 
 
 
 
 
 
Hurricane-related costs
—

—

1

 
1

 
—

—

—

—

—

Pension settlement expense
—

7

3

 
10

 
—

—

—

—

—

Marketing and Specialties EBITDA, Adjusted for Special Items
235

361

350

 
946

 
340

372

429

227

1,368

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Adjustments (pre-tax):
 
 
 
 
 
 
 
 
 
 
 
Proportional share of selected equity affiliates income taxes
—

—

—

 
—

 
—

—

—

—

—

Proportional share of selected equity affiliates net interest
—

—

1

 
1

 
—

—

—

—

—

Proportional share of selected equity affiliates depreciation and amortization
3

3

2

 
8

 
3

3

3

3

12

Marketing and Specialties Adjusted EBITDA
238

364

353

 
955

 
343

375

432

230

1,380



Page 10

 
psxphillips66.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CORPORATE AND OTHER
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2017
 
2016
 
 
 
 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr
YTD

 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate and Other Net Income (Loss) Attributable to Phillips 66 ($ Millions)
(123
)
(143
)
(141
)
 
(407
)
 
(127
)
(111
)
(109
)
(124
)
(471
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Detail of Net Income (Loss) Attributable to Phillips 66 ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Net interest expense
(65
)
(65
)
(68
)
 
(198
)
 
(54
)
(52
)
(49
)
(55
)
(210
)
Corporate overhead
(39
)
(47
)
(45
)
 
(131
)
 
(42
)
(40
)
(39
)
(40
)
(161
)
Technology
(15
)
(14
)
(16
)
 
(45
)
 
(14
)
(14
)
(15
)
(15
)
(58
)
Other
(4
)
(17
)
(12
)
 
(33
)
 
(17
)
(5
)
(6
)
(14
)
(42
)
Total
(123
)
(143
)
(141
)
 
(407
)
 
(127
)
(111
)
(109
)
(124
)
(471
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pre-Tax Net Interest Expense ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Interest expense
(114
)
(113
)
(112
)
 
(339
)
 
(105
)
(104
)
(103
)
(107
)
(419
)
Capitalized interest
9

6

—

 
15

 
19

21

22

19

81

Interest revenue
5

7

8

 
20

 
4

3

7

4

18

Premium on early debt retirement
—

—

—

 
—

 
(1
)
—

—

—

(1
)
Total
(100
)
(100
)
(104
)
 
(304
)
 
(83
)
(80
)
(74
)
(84
)
(321
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign Currency Gains (Losses) After-Tax ($ Millions)
—

(1
)
(1
)
 
(2
)
 
1

—

—

1

2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Phillips 66 Total Company Debt
 
 
 
 
 
 
 
 
 
 
 
Total Debt ($ Millions)
10,210

9,965

10,201

 
10,201

 
8,835

8,862

8,858

10,138

10,138

Debt-to-Capital Ratio (%)
30
%
30
%
30
%
 
30
%
 
27
%
27
%
27
%
30
%
30
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Equity ($ Millions)
23,725

23,806

23,959

 
23,959

 
23,643

24,066

24,311

23,725

23,725

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of Phillips 66 Net Income to Adjusted EBITDA ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Net income
563

581

849

 
1,993

 
398

516

536

194

1,644

Plus:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for income taxes
234

267

407

 
908

 
198

204

277

(132
)
547

Net interest expense
99

100

104

 
303

 
83

80

74

84

321

Depreciation and amortization
315

320

337

 
972

 
280

290

293

305

1,168

Phillips 66 EBITDA
1,211

1,268

1,697

 
4,176

 
959

1,090

1,180

451

3,680

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Special Item Adjustments (pre-tax):
 
 
 
 
 
 
 
 
 
 
 
Impairments by equity affiliates
33

—

—

 
33

 
6

—

89

—

95

Pending claims and settlements
—

(21
)
(36
)
 
(57
)
 
(45
)
—

(70
)
—

(115
)
Certain tax impacts
—

—

—

 
—

 
—

—

—

(32
)
(32
)
Gain on consolidation of business
(423
)
—

—

 
(423
)
 
—

—

—

—

—

Equity affiliate ownership restructuring
—

—

—

 
—

 
—

—

—

33

33

Recognition of deferred logistics commitments
—

—

—

 
—

 
—

30

—

—

30

Railcar lease residual value deficiencies and related costs
—

—

—

 
—

 
—

—

—

40

40

Pension settlement expense
—

55

21

 
76

 
—

—

—

—

—

Hurricane-related costs
—

—

70

 
70

 
—

—

—

—

—

Phillips 66 EBITDA, Adjusted for Special Items
821

1,302

1,752

 
3,875

 
920

1,120

1,199

492

3,731

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Adjustments (pre-tax):
 
 
 
 
 
 
 
 
EBITDA attributable to Phillips 66 noncontrolling interests
(46
)
(47
)
(49
)
 
(142
)
 
(20
)
(30
)
(37
)
(45
)
(132
)
Proportional share of selected equity affiliates income taxes
20

15

19

 
54

 
19

27

20

13

79

Proportional share of selected equity affiliates net interest
28

27

32

 
87

 
44

46

43

44

177

Proportional share of selected equity affiliates depreciation and amortization
180

180

200

 
560

 
195

196

204

203

798

Phillips 66 Adjusted EBITDA
1,003

1,477

1,954

 
4,434

 
1,158

1,359

1,429

707

4,653

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Use of Non-GAAP Financial Information—This earnings release supplemental data includes the terms EBITDA and Adjusted EBITDA. These are non-GAAP financial measures. EBITDA and Adjusted EBITDA are included to help facilitate comparisons of operating performance across periods, to help facilitate comparisons with other companies in our industry and to help facilitate determination of enterprise value. The GAAP measure most directly comparable to EBITDA and Adjusted EBITDA is net income. The prior period Adjusted EBITDA amounts for the Midstream and Marketing and Specialties segments, as well as for consolidated Phillips 66 have been recast to conform with current period presentation.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Page 11

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