Phillips 66 - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - April 27, 2018

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EX-99.1 - EXHIBIT 99.1 - Phillips 66psx-2018331_ex991.htm
8-K - 8-K - Phillips 66psx-2018331_erx8xk.htm
 
 
 
 
 
 
 
 
 
 
 
 
 
Exhibit 99.2
Phillips 66 Earnings Release Supplemental Data
psxphillips66.jpg 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CONSOLIDATED INCOME STATEMENT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Millions of Dollars
 
 
 
 
2018
 
2017
 
 
 
 
1st Qtr

2nd Qtr
3rd Qtr
4th Qtr
YTD

 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

Revenues and Other Income
 
 
 
 
 
 
 
 
 
 
 
Sales and other operating revenues*
23,595




23,595

 
22,894

24,087

25,627

29,746

102,354

Equity in earnings of affiliates
424




424

 
365

462

530

375

1,732

Net gain on dispositions
17




17

 
1

14

—

—

15

Other income
10




10

 
452

18

49

2

521

Total Revenues and Other Income
24,046




24,046

 
23,712

24,581

26,206

30,123

104,622

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Costs and Expenses
 
 
 
 
 
 
 
 
 
 
 
Purchased crude oil and products
21,138




21,138

 
17,679

18,353

19,463

23,914

79,409

Operating expenses
1,246




1,246

 
1,270

1,137

1,134

1,158

4,699

Selling, general and administrative expenses
386




386

 
384

439

435

437

1,695

Depreciation and amortization
336




336

 
315

320

337

346

1,318

Impairments
—




—

 
2

15

1

6

24

Taxes other than income taxes*
110




110

 
3,156

3,356

3,456

3,494

13,462

Accretion on discounted liabilities
6




6

 
5

6

5

6

22

Interest and debt expense
123




123

 
105

107

112

114

438

Foreign currency transaction (gains) losses
(16
)



(16
)
 
(1
)
—

7

(6
)
—

Total Costs and Expenses
23,329




23,329

 
22,915

23,733

24,950

29,469

101,067

Income before income taxes
717




717

 
797

848

1,256

654

3,555

Income tax expense (benefit)
132




132

 
234

267

407

(2,601
)
(1,693
)
Net Income
585




585

 
563

581

849

3,255

5,248

Less: net income attributable to noncontrolling interests
61




61

 
28

31

26

57

142

Net Income Attributable to Phillips 66
524




524

 
535

550

823

3,198

5,106

* Includes excise taxes on sales of petroleum products for periods prior to the adoption of Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2014-09 on January 1, 2018:
 
 
3,036

3,252

3,376

3,390

13,054

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Income Attributable to Phillips 66 Per Share of Common Stock (dollars)
 
 
 
 
 
 
 
 
 
 
 
Basic
1.07




1.07

 
1.02

1.06

1.60

6.29

9.90

Diluted
1.07




1.07

 
1.02

1.06

1.60

6.25

9.85

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-Average Common Shares Outstanding (thousands)
 
 
 
 
 
 
 
 
 
 
 
Basic
487,065




487,065

 
521,647

517,785

512,923

508,148

515,090

Diluted
489,668




489,668

 
524,520

520,160

515,960

511,352

518,508

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RECONCILIATION OF SEGMENT NET INCOME (LOSS) TO NET INCOME ATTRIBUTABLE TO PHILLIPS 66
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Millions of Dollars
 
 
 
 
2018
 
2017
 
 
 
 
1st Qtr

2nd Qtr
3rd Qtr
4th Qtr
YTD

 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Midstream
233




233

 
112

96

117

139

464

Chemicals
232




232

 
181

196

121

27

525

Refining
91




91

 
259

224

550

371

1,404

Marketing and Specialties
184




184

 
141

214

208

123

686

Corporate and Other
(155
)



(155
)
 
(130
)
(149
)
(147
)
2,595

2,169

Net Income
585




585

 
563

581

849

3,255

5,248

Less: net income attributable to noncontrolling interests
61




61

 
28

31

26

57

142

Net Income Attributable to Phillips 66
524




524

 
535

550

823

3,198

5,106

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SUMMARY OF NET INCOME (LOSS) BEFORE INCOME TAXES BY SEGMENT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Millions of Dollars
 
 
 
 
2018
 
2017
 
 
 
 
1st Qtr

2nd Qtr
3rd Qtr
4th Qtr
YTD

 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Midstream
280




280

 
153

130

166

189

638

Chemicals
286




286

 
251

294

163

8

716

Refining
112




112

 
390

307

863

516

2,076

Marketing and Specialties
235




235

 
208

328

317

167

1,020

Corporate and Other
(196
)



(196
)
 
(205
)
(211
)
(253
)
(226
)
(895
)
Consolidated
717




717

 
797

848

1,256

654

3,555

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EFFECTIVE TAX RATES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2018
 
2017
 
 
 
 
1st Qtr

2nd Qtr
3rd Qtr
4th Qtr
YTD

 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Midstream
16.8
%



16.8
%
 
26.8
%
26.2
%
29.5
%
26.5
 %
27.3
 %
Chemicals
18.9
%



18.9
%
 
27.9
%
33.3
%
25.8
%
(237.5
)%
26.7
 %
Refining
18.8
%



18.8
%
 
33.6
%
27.0
%
36.3
%
28.1
 %
32.4
 %
Marketing and Specialties
21.7
%



21.7
%
 
32.2
%
34.8
%
34.4
%
26.3
 %
32.7
 %
Corporate and Other
20.9
%



20.9
%
 
36.6
%
29.4
%
41.9
%
1,248.2
 %
342.3
 %
Consolidated
18.4
%



18.4
%
 
29.4
%
31.5
%
32.4
%
(397.7
)%
(47.6
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RECONCILIATION OF ADJUSTED SEGMENT NET INCOME (LOSS) TO ADJUSTED SEGMENT NET INCOME ATTRIBUTABLE TO PHILLIPS 66
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Millions of Dollars
 
 
 
 
2018
 
2017
 
 
 
 
1st Qtr

2nd Qtr
3rd Qtr
4th Qtr
YTD

 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

Midstream
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Transportation
136




136

 
78

74

98

108

358

NGL and Other
73




73

 
17

14

—

20

51

DCP Midstream
24




24

 
17

13

1

14

45

Total Midstream
233




233

 
112

101

99

142

454

Chemicals
232




232

 
201

196

153

121

671

Refining
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe
(73
)



(73
)
 
(50
)
109

172

120

351

Gulf Coast
1




1

 
67

56

77

72

272

Central Corridor
203




203

 
62

29

198

192

481

West Coast
(42
)



(42
)
 
(81
)
39

101

(26
)
33

Total Refining
89




89

 
(2
)
233

548

358

1,137

Marketing and Specialties
 
 
 
 
 
 
 
 
 
 
 
Marketing and Other
129




129

 
124

185

163

87

559

Specialties
45




45

 
17

33

48

37

135

Total Marketing and Specialties
174




174

 
141

218

211

124

694

Corporate and Other
(162
)



(162
)
 
(130
)
(148
)
(127
)
(140
)
(545
)
Adjusted Net Income
566




566

 
322

600

884

605

2,411

Less: net income attributable to noncontrolling interests
54




54

 
28

31

26

57

142

Adjusted Net Income Attributable to Phillips 66
512




512

 
294

569

858

548

2,269




Page 1

 
psxphillips66.jpg

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SPECIAL ITEMS INCLUDED IN SEGMENT NET INCOME AND NET INCOME ATTRIBUTABLE TO PHILLIPS 66
(AFTER-TAX)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Millions of Dollars
 
 
 
 
2018
 
2017
 
 
 
 
1st Qtr

2nd Qtr
3rd Qtr
4th Qtr
YTD

 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

Midstream
 
 
 
 
 
 
 
 
 
 
 
Pending claims and settlements
—




—

 
—

—

23

—

23

Hurricane-related costs
—




—

 
—

—

(3
)
(3
)
(6
)
Pension settlement expense
—




—

 
—

(5
)
(2
)
—

(7
)
Total Midstream
—




—

 
—

(5
)
18

(3
)
10

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chemicals
 
 
 
 
 
 
 
 
 
 
 
Impairments by equity affiliates
—




—

 
(20
)
—

—

(19
)
(39
)
Hurricane-related costs
—




—

 
—

—

(32
)
(75
)
(107
)
Total Chemicals
—




—

 
(20
)
—

(32
)
(94
)
(146
)
 
 
 
 
 
 
 
 
 
 
 
 
Refining
 
 
 
 
 
 
 
 
 
 
 
Pending claims and settlements
—




—

 
—

13

18

—

31

Certain tax impacts
2




2

 
—

—

—

23

23

Hurricane-related costs
—




—

 
—

—

(8
)
(7
)
(15
)
Gain on consolidation of business
—




—

 
261

—

—

—

261

Pension settlement expense
—




—

 
—

(22
)
(8
)
(3
)
(33
)
Total Refining
2




2

 
261

(9
)
2

13

267

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Marketing and Specialties
 
 
 
 
 
 
 
 
 
 
 
Certain tax impacts
10




10

 
—

—

—

—

—

Hurricane-related costs
—




—

 
—

—

(1
)
—

(1
)
Pension settlement expense
—




—

 
—

(4
)
(2
)
(1
)
(7
)
Total Marketing and Specialties
10




10

 
—

(4
)
(3
)
(1
)
(8
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate and Other
 
 
 
 
 
 
 
 
 
 
 
Pending claims and settlements
—




—

 
—

2

(19
)
—

(17
)
U.S. tax reform
7




7

 
—

—

—

2,735

2,735

Pension settlement expense
—




—

 
—

(3
)
(1
)
—

(4
)
Total Corporate and Other
7




7

 
—

(1
)
(20
)
2,735

2,714

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noncontrolling Interests
 
 
 
 
 
 
 
 
 
 
 
U.S. tax reform
(7
)



(7
)
 
—

—

—

—

—

Total Noncontrolling Interests
(7
)



(7
)
 
—

—

—

—

—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Phillips 66
12




12

 
241

(19
)
(35
)
2,650

2,837

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SPECIAL ITEMS INCLUDED IN NET INCOME BY BUSINESS LINES/REGIONS
(AFTER-TAX)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Millions of Dollars
 
 
 
 
2018
 
2017
 
 
 
 
1st Qtr

2nd Qtr
3rd Qtr
4th Qtr
YTD

 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

Midstream
 
 
 
 
 
 
 
 
 
 
 
Transportation
—




—

 
—

—

21

(3
)
18

NGL and Other
—




—

 
—

(5
)
(3
)
—

(8
)
DCP Midstream
—




—

 
—

—

—

—

—

Total Midstream
—




—

 
—

(5
)
18

(3
)
10

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Refining
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe
—




—

 
—

(2
)
(1
)
22

19

Gulf Coast
—




—

 
261

(3
)
(10
)
(8
)
240

Central Corridor
—




—

 
—

(2
)
(1
)
(1
)
(4
)
West Coast
2




2

 
—

(2
)
14

—

12

Total Refining
2




2

 
261

(9
)
2

13

267

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Marketing and Specialties
 
 
 
 
 
 
 
 
 
 
 
Marketing and Other
10




10

 
—

(4
)
(3
)
(1
)
(8
)
Specialties
—




—

 
—

—

—

—

—

Total Marketing and Specialties
10




10

 
—

(4
)
(3
)
(1
)
(8
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SPECIAL ITEMS INCLUDED IN INCOME BEFORE INCOME TAXES
(PRE-TAX)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Millions of Dollars
 
 
 
 
2018
 
2017
 
 
 
 
1st Qtr

2nd Qtr
3rd Qtr
4th Qtr
YTD

 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

Midstream
 
 
 
 
 
 
 
 
 
 
 
Pending claims and settlements
—




—

 
—

—

37

—

37

Hurricane-related costs
—




—

 
—

—

(4
)
(6
)
(10
)
Pension settlement expense
—




—

 
—

(8
)
(3
)
(1
)
(12
)
Total Midstream
—




—

 
—

(8
)
30

(7
)
15

 
 
 
 
 
 
 
 
 
 
 
 
Chemicals
 
 
 
 
 
 
 
 
 
 
 
Impairments by equity affiliates
—




—

 
(33
)
—

—

(31
)
(64
)
Hurricane-related costs
—




—

 
—

—

(53
)
(122
)
(175
)
Total Chemicals
—




—

 
(33
)
—

(53
)
(153
)
(239
)
 
 
 
 
 
 
 
 
 
 
 
 
Refining
 
 
 
 
 
 
 
 
 
 
 
Pending claims and settlements
—




—

 
—

21

30

—

51

Certain tax impacts
2




2

 
—

—

—

23

23

Hurricane-related costs
—




—

 
—

—

(12
)
(12
)
(24
)
Gain on consolidation of business
—




—

 
423

—

—

—

423

Pension settlement expense
—




—

 
—

(35
)
(13
)
(5
)
(53
)
Total Refining
2




2

 
423

(14
)
5

6

420

 
 
 
 
 
 
 
 
 
 
 
 
Marketing and Specialties
 
 
 
 
 
 
 
 
 
 
 
Hurricane-related costs
—




—

 
—

—

(1
)
—

(1
)
Certain tax impacts
13




13

 
—

—

—

—

—

Pension settlement expense
—




—

 
—

(7
)
(3
)
(1
)
(11
)
Total Marketing and Specialties
13




13

 
—

(7
)
(4
)
(1
)
(12
)
 
 
 
 
 
 
 
 
 
 
 
 
Corporate and Other
 
 
 
 
 
 
 
 
 
 
 
Pending claims and settlements
—




—

 
—

3

(31
)
—

(28
)
Pension settlement expense
—




—

 
—

(5
)
(2
)
—

(7
)
U.S. tax reform
16




16

 
—

—

—

—

—

Total Corporate and Other
16




16

 
—

(2
)
(33
)
—

(35
)
 
 
 
 
 
 
 
 
 
 
 
 
Total Phillips 66
31




31

 
390

(31
)
(55
)
(155
)
149

 
 
 
 
 
 
 
 
 
 
 
 
By Business Lines/Regions
 
 
 
 
 
 
 
 
 
 
 
Midstream
 
 
 
 
 
 
 
 
 
 
 
Transportation
—




—

 
—

—

34

(5
)
29

NGL and Other
—




—

 
—

(8
)
(4
)
(2
)
(14
)
DCP Midstream
—




—

 
—

—

—

—

—

Total Midstream
—




—

 
—

(8
)
30

(7
)
15

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Refining
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe
—




—

 
—

(4
)
(2
)
22

16

Gulf Coast
—




—

 
423

(5
)
(14
)
(14
)
390

Central Corridor
—




—

 
—

(3
)
(1
)
(2
)
(6
)
West Coast
2




2

 
—

(2
)
22

—

20

Total Refining
2




2

 
423

(14
)
5

6

420

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Marketing and Specialties
 
 
 
 
 
 
 
 
 
 
 
Marketing and Other
13




13

 
—

(7
)
(4
)
(1
)
(12
)
Specialties
—




—

 
—

—

—

—

—

Total Marketing and Specialties
13




13

 
—

(7
)
(4
)
(1
)
(12
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Page 2

 
psxphillips66.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CASH FLOW INFORMATION
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Millions of Dollars
 
 
 
 
2018
 
2017
 
 
 
 
1st Qtr

2nd Qtr
3rd Qtr
4th Qtr
YTD

 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

Cash Flows From Operating Activities
 
 
 
 
 
 
 
 
 
 
 
Net income
585




585

 
563

581

849

3,255

5,248

Depreciation and amortization
336




336

 
315

320

337

346

1,318

Impairments
—




—

 
2

15

1

6

24

Accretion on discounted liabilities
6




6

 
5

6

5

6

22

Deferred income taxes
101




101

 
493

264

27

(2,670
)
(1,886
)
Undistributed equity earnings
119




119

 
(212
)
(40
)
(291
)
27

(516
)
Net gain on dispositions
(17
)



(17
)
 
(1
)
(14
)
—

—

(15
)
Gain on consolidation of business
—




—

 
(423
)
—

—

—

(423
)
Other
173




173

 
6

92

(332
)
48

(186
)
Net working capital changes
(815
)



(815
)
 
(1,297
)
641

(195
)
913

62

Net Cash Provided by (Used in) Operating Activities
488




488

 
(549
)
1,865

401

1,931

3,648

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash Flows From Investing Activities
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures and investments
(328
)



(328
)
 
(470
)
(458
)
(367
)
(537
)
(1,832
)
Proceeds from asset dispositions*
17




17

 
9

42

14

21

86

Collection of advances/loans—related parties
—




—

 
325

—

—

1

326

Restricted cash received from consolidation of business
—




—

 
318

—

—

—

318

Other
(46
)



(46
)
 
(24
)
(37
)
(28
)
45

(44
)
Net Cash Provided by (Used in) Investing Activities
(357
)



(357
)
 
158

(453
)
(381
)
(470
)
(1,146
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash Flows From Financing Activities
 
 
 
 
 
 
 
 
 
 
 
Issuance of debt
1,509




1,509

 
712

1,891

480

425

3,508

Repayment of debt
(7
)



(7
)
 
(773
)
(2,137
)
(251
)
(517
)
(3,678
)
Issuance of common stock
10




10

 
4

2

17

12

35

Repurchase of common stock
(3,513
)



(3,513
)
 
(285
)
(381
)
(461
)
(463
)
(1,590
)
Dividends paid on common stock
(327
)



(327
)
 
(326
)
(360
)
(356
)
(353
)
(1,395
)
Distributions to noncontrolling interests
(45
)



(45
)
 
(24
)
(30
)
(29
)
(37
)
(120
)
Net proceeds from issuance of Phillips 66 Partners LP common and preferred units
9




9

 
40

131

—

1,034

1,205

Other
(45
)



(45
)
 
(34
)
(20
)
(12
)
(10
)
(76
)
Net Cash Provided by (Used in) Financing Activities
(2,409
)



(2,409
)
 
(686
)
(904
)
(612
)
91

(2,111
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash
1




1

 
2

17

(22
)
20

17

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Change in Cash, Cash Equivalents and Restricted Cash
(2,277
)



(2,277
)
 
(1,075
)
525

(614
)
1,572

408

Cash, cash equivalents and restricted cash at beginning of period
3,119




3,119

 
2,711

1,636

2,161

1,547

2,711

Cash, Cash Equivalents and Restricted Cash at End of Period
842




842

 
1,636

2,161

1,547

3,119

3,119

* Includes return of investments in equity affiliates.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CAPITAL PROGRAM
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Millions of Dollars
 
 
 
 
2018
 
2017
 
 
 
 
1st Qtr

2nd Qtr
3rd Qtr
4th Qtr
YTD

 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

Consolidated Capital Expenditures and Investments
 
 
 
 
 
 
 
 
 
 
 
Midstream
136




136

 
182

199

178

212

771

Chemicals
—




—

 
—

—

—

—

—

Refining
172




172

 
259

216

148

230

853

Marketing and Specialties
13




13

 
15

23

27

43

108

Corporate and Other
7




7

 
14

20

14

52

100

Total Consolidated
328




328

 
470

458

367

537

1,832

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proportional Share of Select Equity Affiliates Capital Expenditures and Investments*
 
 
 
 
 
 
 
 
 
 
 
DCP Midstream (Midstream)
95




95

 
44

60

62

102

268

CPChem (Chemicals)
161




161

 
256

131

119

270

776

WRB Refining (Refining)
40




40

 
42

22

27

35

126

Select Equity Affiliates
296




296

 
342

213

208

407

1,170


 
 
 
 
 
 
 
 
 
 
 
Total Capital Program*
 
 
 
 
 
 
 
 
 
 
 
Midstream
231




231

 
226

259

240

314

1,039

Chemicals
161




161

 
256

131

119

270

776

Refining
212




212

 
301

238

175

265

979

Marketing and Specialties
13




13

 
15

23

27

43

108

Corporate and Other
7




7

 
14

20

14

52

100

Total Capital Program
624




624

 
812

671

575

944

3,002

* Includes Phillips 66’s portion of self-funded capital spending by DCP Midstream, LLC (DCP Midstream), Chevron Phillips Chemical Company LLC (CPChem) and WRB Refining LP.
 
 
 
 
 
 
 
 
 


Page 3

 
psxphillips66.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MIDSTREAM
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2018
 
2017
 
 
 
 
1st Qtr

2nd Qtr
3rd Qtr
4th Qtr
YTD

 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

Midstream Net Income (Loss) ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Transportation
136




136

 
78

74

119

105

376

NGL and Other
73




73

 
17

9

(3
)
20

43

DCP Midstream
24




24

 
17

13

1

14

45

Midstream Net Income (Loss)
233




233

 
112

96

117

139

464

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Midstream Income (Loss) before Income Taxes ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Transportation
163




163

 
107

102

174

147

530

NGL and Other
86




86

 
19

6

(9
)
16

32

DCP Midstream
31




31

 
27

22

1

26

76

Midstream Income (Loss) before Income Taxes
280




280

 
153

130

166

189

638

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Midstream Adjusted EBITDA ($ Millions)*
 
 
 
 
 
 
 
PSXP**
236




236

 
149

157

154

240

700

Other Midstream
127




127

 
70

54

107

55

286

Transportation and NGL and Other
363




363

 
219

211

261

295

986

DCP Midstream
76




76

 
71

65

42

70

248

Midstream Adjusted EBITDA
439




439

 
290

276

303

365

1,234

* See reconciliation of net income to Adjusted EBITDA on next page.
 
 
 
 
 
 
 
** Does not include certain PSXP adjustments made for PSXP stand-alone reporting purposes.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and Amortization ($ Millions)
 
 
 
 
 
 
 
Transportation
36




36

 
33

35

46

44

158

NGL and Other
38




38

 
35

34

35

37

141

DCP Midstream
—




—

 
—

—

—

—

—

Total
74




74

 
68

69

81

81

299

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating and SG&A Expense ($ Millions)
 
 
 
 
 
 
 
Transportation
178




178

 
161

177

187

185

710

NGL and Other
77




77

 
57

63

65

70

255

DCP Midstream
—




—

 
—

(1
)
—

—

(1
)
Total
255




255

 
218

239

252

255

964

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Transportation Volumes (MB/D)
 
 
 
 
 
 
 
Pipelines*
3,407




3,407

 
3,469

3,430

3,447

3,658

3,501

Terminals**
2,669




2,669

 
2,395

2,581

2,675

3,008

2,665

* Pipelines represent the sum of volumes transported through each separately tariffed pipeline segment, including our share of equity volumes in Yellowstone and Lake Charles pipelines.
 
 
 
 
 
 
 
** Terminals include Bayway and Ferndale crude oil rail rack volumes.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PSX Other Volumes
 
 
 
 
 
 
 
 
 
 
 
NGL Fractionated (MB/D)*
184




184

 
175

177

177

215

186

* Excludes DCP Midstream.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100% DCP Midstream Results
 
 
 
 
 
 
 
 
 
 
 
Net Income Attributable, excludes parent company income tax related to DCP's earnings ($ Millions)*
60




60

 
53

42

3

49

147

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and Amortization ($ Millions)
94




94

 
94

94

94

97

379

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating and SG&A Expense ($ Millions)
221




221

 
240

254

226

234

954

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Interest Expense ($ Millions)*
70




70

 
76

73

77

72

298

* Net of interest income.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital Expenditures and Investments ($ Millions)
189




189

 
87

121

124

204

536

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected DCP Operating Statistics
 
 
 
 
 
 
 
Wellhead Volume (Bcf/D)
4.5




4.5

 
4.6

4.5

4.5

4.6

4.6

NGL Production (MB/D)
380




380

 
341

367

378

411

374

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted Average NGL Price*
 
 
 
 
 
 
 
DCP Midstream ($/BBL)
29.41




29.41

 
25.31

22.94

26.12

30.39

26.19

DCP Midstream ($/gal)
0.70




0.70

 
0.60

0.55

0.62

0.72

0.62

* 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
51




51

 
32

36

43

47

158

LP Distribution from PSXP to Phillips 66
50




50

 
37

40

44

46

167

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




—

 
23

23

43

83

172

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




—

 
41

40

42

40

163

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

Page 4

 
psxphillips66.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MIDSTREAM (continued)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Millions of Dollars
 
 
 
 
2018
 
2017
 
 
 
 
1st Qtr

2nd Qtr
3rd Qtr
4th Qtr
YTD

 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

Reconciliation of Midstream Net Income to Adjusted EBITDA ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Midstream net income
233




233

 
112

96

117

139

464

Plus:
 
 
 
 
 
 
 
 
 
 
 
Income tax expense
47




47

 
41

34

49

50

174

Interest revenue
—




—

 
(1
)
—

—

—

(1
)
Depreciation and amortization
74




74

 
68

69

81

81

299

Midstream EBITDA
354




354

 
220

199

247

270

936

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




—

 
—

—

(37
)
—

(37
)
Hurricane-related costs
—




—

 
—

—

4

6

10

Pension settlement expense
—




—

 
—

8

3

1

12

Midstream EBITDA, Adjusted for Special Items
354




354

 
220

207

217

277

921

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




—

 
—

1

1

(1
)
1

Proportional share of selected equity affiliates net interest
34




34

 
27

26

31

37

121

Proportional share of selected equity affiliates depreciation and amortization
51




51

 
43

42

54

52

191

Midstream Adjusted EBITDA
439




439

 
290

276

303

365

1,234

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Midstream Adjusted EBITDA by Business Line
 
 
 
 
 
 
 
100% PSXP Results ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
PSXP net income
172




172

 
110

119

131

164

524

Plus:
 
 
 
 
 
 
 
 
 
 
 
Income tax expense
2




2

 
—

1

1

2

4

Net interest expense
29




29

 
23

23

24

29

99

Depreciation and amortization
28




28

 
28

28

32

28

116

PSXP EBITDA
231




231

 
161

171

188

223

743

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




—

 
(14
)
(17
)
(36
)
(2
)
(69
)
Special item - U.S. tax reform*
(10
)



(10
)
 
—

—

—

—

—

PSXP EBITDA, Adjusted for Predecessors and Special Item**
221




221

 
147

154

152

221

674

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




—

 
—

—

—

1

1

Proportional share of selected equity affiliates net interest
7




7

 
—

—

—

7

7

Proportional share of selected equity affiliates depreciation and amortization
8




8

 
2

3

2

11

18

PSXP Adjusted EBITDA**
236




236

 
149

157

154

240

700

* Represents a special item adjustment made for PSXP reporting purposes only.
 
 
 
 
 
 
 
** Does not include certain PSXP adjustments made for PSXP stand-alone reporting purposes.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Transportation and NGL and Other ($ Millions)
 
 
 
 
 
 
 
Total Transportation and NGL and Other net income
209




209

 
95

83

116

125

419

Plus:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income tax expense
40




40

 
31

25

49

38

143

Interest revenue
—




—

 
(1
)
—

—

—

(1
)
Depreciation and amortization
74




74

 
68

69

81

81

299

Total Transportation and NGL and Other EBITDA*
323




323

 
193

177

246

244

860

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




—

 
—

8

3

1

12

Pending claims and settlements
—




—

 
—

—

(37
)
—

(37
)
Hurricane-related costs
—




—

 
—

—

4

6

10

Total Transportation and NGL and Other EBITDA, Adjusted for Special Items*
323




323

 
193

185

216

251

845

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




—

 
—

—

—

1

1

Proportional share of selected equity affiliates net interest
18




18

 
10

10

18

18

56

Proportional share of selected equity affiliates depreciation and amortization
22




22

 
16

16

27

25

84

Total Transportation and NGL and Other Adjusted EBITDA*
363




363

 
219

211

261

295

986

* Includes PSXP results above. Does not include certain PSXP adjustments made for PSXP stand-alone reporting purposes.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DCP Midstream ($ Millions)
 
 
 
 
 
 
 
DCP Midstream net income
24




24

 
17

13

1

14

45

Plus:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income tax expense
7




7

 
10

9

—

12

31

DCP Midstream EBITDA
31




31

 
27

22

1

26

76

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Special Item Adjustments (pre-tax):
 
 
 
 
 
 
 
None
—




—

 
—

—

—

—

—

DCP Midstream EBITDA, Adjusted for Special Items
31




31

 
27

22

1

26

76

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




—

 
—

1

1

(2
)
—

Proportional share of selected equity affiliates net interest
16




16

 
17

16

13

19

65

Proportional share of selected equity affiliates depreciation and amortization
29




29

 
27

26

27

27

107

DCP Midstream Adjusted EBITDA*
76




76

 
71

65

42

70

248

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

Page 5

 
psxphillips66.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CHEMICALS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2018
 
2017
 
 
 
 
1st Qtr

2nd Qtr
3rd Qtr
4th Qtr
YTD

 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chemicals Net Income ($ Millions)
232




232

 
181

196

121

27

525

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100% CPChem Results
 
 
 
 
 
 
 
 
 
 
 
Net Income (Loss), excludes parent company income tax related to CPChem's earnings ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Olefins and Polyolefins
535




535

 
461

537

295

27

1,320

Specialties, Aromatics and Styrenics
57




57

 
53

61

46

9

169

Corporate and Other
(7
)



(7
)
 
(11
)
(8
)
(10
)
(14
)
(43
)
Total
 
 
 
585




585

 
503

590

331

22

1,446

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (Loss) before Income Taxes ($ Millions)
 
 
 
 
 
 
 
Olefins and Polyolefins
546




546

 
470

546

304

35

1,355

Specialties, Aromatics and Styrenics
61




61

 
62

65

51

13

191

Corporate and Other
(7
)



(7
)
 
(11
)
(8
)
(10
)
(13
)
(42
)
Total
 
 
 
600




600

 
521

603

345

35

1,504


 
 
 
 
 
 
 
 
 
 
 
Depreciation and Amortization ($ Millions)
116




116

 
73

75

85

118

351

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Interest Expense ($ Millions)*
(3
)



(3
)
 
(1
)
(1
)
(3
)
(3
)
(8
)
* Net of interest income.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investing Cash Flows ($ Millions)
 
 
 
 
 
 
 
Capital Expenditures and Investments
322




322

 
512

262

238

540

1,552

Advances to Equity Companies
—




—

 
6

2

3

—

11

Advance Repayments from Equity Companies
(33
)



(33
)
 
(7
)
—

—

(52
)
(59
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Externally Marketed Sales Volumes (MM Lbs)*
 
 
 
 
 
 
 
Olefins and Polyolefins
4,427




4,427

 
4,016

4,137

3,842

3,875

15,870

Specialties, Aromatics and Styrenics
1,013




1,013

 
1,206

1,175

1,095

1,142

4,618

Total
 
 
 
5,440




5,440

 
5,222

5,312

4,937

5,017

20,488

* Represents 100 percent of CPChem's outside sales of produced petrochemical products, as well as commission sales from equity affiliates.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Olefins and Polyolefins Capacity Utilization (%)
96
%



96
%
 
89
%
98
%
83
%
79
%
87
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Market Indicators*
 
 
 
 
 
 
 
 
 
 
 
U.S. Industry Prices
 
 
 
 
 
 
 
 
 
 
 
Ethylene, Average Acquisition Contract (cents/lb)
26.80




26.80

 
31.87

29.61

28.21

30.84

30.13

HDPE Blow Molding, Domestic Spot (cents/lb)
60.00




60.00

 
55.83

58.00

58.67

60.75

58.31

 
 
 
 
 
 
 
 
 
 
 
 
U.S. Industry Costs
 
 
 
 
 
 
 
 
 
 
 
Ethylene, Cash Cost Weighted Average Feed (cents/lb)
14.81




14.81

 
11.80

12.54

16.14

16.22

14.18

HDPE Blow Molding, Total Cash Cost (cents/lb)
39.81




39.81

 
44.90

42.59

41.13

43.78

43.10

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ethylene to High-Density Polyethylene Chain Cash Margin (cents/lb)
32.18




32.18

 
31.00

32.48

29.61

31.59

31.17

* Source: IHS, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of Chemicals Net Income to Adjusted EBITDA ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Chemicals net income
232




232

 
181

196

121

27

525

Plus:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income tax expense (benefit)
54




54

 
70

98

42

(19
)
191

Chemicals EBITDA
286




286

 
251

294

163

8

716

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




—

 
33

—

—

31

64

Hurricane-related costs
—




—

 
—

—

53

122

175

Chemicals EBITDA, Adjusted for Special Items
286




286

 
284

294

216

161

955

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Adjustments (pre-tax):
 
 
 
 
 
 
 
 
Proportional share of selected equity affiliates income taxes
23




23

 
20

14

18

16

68

Proportional share of selected equity affiliates net interest
3




3

 
1

2

1

—

4

Proportional share of selected equity affiliates depreciation and amortization
92




92

 
69

70

76

92

307

Chemicals Adjusted EBITDA
404




404

 
374

380

311

269

1,334


Page 6

 
psxphillips66.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REFINING
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2018
 
2017
 
 
 
 
1st Qtr

2nd Qtr
3rd Qtr
4th Qtr
YTD

 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

Refining Net Income (Loss) ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe
(73
)



(73
)
 
(50
)
107

171

142

370

Gulf Coast
1




1

 
328

53

67

64

512

Central Corridor
203




203

 
62

27

197

191

477

West Coast
(40
)



(40
)
 
(81
)
37

115

(26
)
45

Refining Net Income (Loss)
91




91

 
259

224

550

371

1,404

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Refining Income (Loss) before Income Taxes ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe
(108
)



(108
)
 
(98
)
120

247

179

448

Gulf Coast
—




—

 
521

86

109

93

809

Central Corridor
272




272

 
97

42

317

299

755

West Coast
(52
)



(52
)
 
(130
)
59

190

(55
)
64

Refining Income (Loss) before Income Taxes
112




112

 
390

307

863

516

2,076

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Refining Net Income (Loss) ($/BBL)
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe
(1.86
)



(1.86
)
 
(1.25
)
2.07

3.27

2.59

1.86

Gulf Coast
0.01




0.01

 
4.91

0.73

0.95

0.84

1.79

Central Corridor
7.74




7.74

 
2.52

1.21

8.37

8.83

5.18

West Coast
(1.21
)



(1.21
)
 
(2.95
)
1.05

3.14

(0.75
)
0.34

Worldwide
0.54




0.54

 
1.63

1.23

3.01

1.98

1.97

 
 
 
 
 
 
 
 
 
 
 
 
Realized Refining Margins ($/BBL)*
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe
7.17




7.17

 
6.29

7.90

10.02

8.32

8.25

Gulf Coast
6.75




6.75

 
8.03

6.74

7.26

6.38

7.07

Central Corridor
16.11




16.11

 
10.54

9.96

14.04

15.16

12.44

West Coast
8.32




8.32

 
9.95

10.83

12.95

7.96

10.49

Worldwide
9.29




9.29

 
8.55

8.44

10.49

8.98

9.13

* See note on the use of non-GAAP measures below. Also, reconciliations of net income to realized refining margin for each period and by region are included in the "Realized Margin Non-GAAP Reconciliations" section below.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and Amortization ($ Millions)*
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe
52




52

 
49

47

47

49

192

Gulf Coast
66




66

 
65

68

68

70

271

Central Corridor
35




35

 
27

27

32

33

119

West Coast
58




58

 
58

62

58

61

239

Total
211




211

 
199

204

205

213

821

* Excludes D&A of all equity affiliates.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating and SG&A Expense ($ Millions)*
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe
298




298

 
271

213

201

223

908

Gulf Coast
376




376

 
350

308

312

297

1,267

Central Corridor
115




115

 
144

191

131

161

627

West Coast
241




241

 
324

234

224

248

1,030

Total
1,030




1,030

 
1,089

946

868

929

3,832

* Excludes Operating and SG&A Expense of all equity affiliates.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Turnaround Expense ($ Millions), included in Operating and SG&A Expense*
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe
98




98

 
83

19

7

16

125

Gulf Coast
105




105

 
72

23

11

19

125

Central Corridor
2




2

 
27

79

14

47

167

West Coast
40




40

 
117

33

11

17

178

Total
245




245

 
299

154

43

99

595

* Excludes Turnaround Expense of all equity affiliates.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Taxes Other than Income Taxes, excluding Excise Taxes ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe
15




15

 
16

13

14

13

56

Gulf Coast
25




25

 
27

23

23

23

96

Central Corridor
12




12

 
14

13

9

10

46

West Coast
27




27

 
20

21

—

23

64

Total
79




79

 
77

70

46

69

262

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign Currency Gains (Losses) After-Tax ($ Millions)
9




9

 
—

1

(5
)
5

1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Refining—Equity Affiliate Information ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Equity in earnings (losses) of affiliates
(64
)



(64
)
 
(6
)
22

144

162

322

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



(239
)
 
239

(191
)
(262
)
(306
)
(520
)
Equity-affiliate-related expenses not included in Realized Refining Margins
(303
)



(303
)
 
233

(169
)
(118
)
(144
)
(198
)
Regional Totals
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe
(43
)



(43
)
 
(17
)
(18
)
25

17

7

Gulf Coast
(1
)



(1
)
 
428

(2
)
1

(1
)
426

Central Corridor
(259
)



(259
)
 
(178
)
(149
)
(144
)
(160
)
(631
)
Total
(303
)



(303
)
 
233

(169
)
(118
)
(144
)
(198
)
* Other costs associated with equity affiliates which do not flow through equity earnings.
 


Page 7

 
psxphillips66.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REFINING (continued)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2018
 
2017
 
 
 
 
1st Qtr

2nd Qtr
3rd Qtr
4th Qtr
YTD

 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

Reconciliation of Refining Net Income to Adjusted EBITDA ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Refining net income
91




91

 
259

224

550

371

1,404

Plus:
 
 
 
 
 
 
 
 
 
 
 
Income tax expense
21




21

 
131

83

313

145

672

Depreciation and amortization
211




211

 
199

204

205

213

821

Refining EBITDA
323




323

 
589

511

1,068

729

2,897

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




—

 
—

(21
)
(30
)
—

(51
)
Certain tax impacts
(2
)



(2
)
 
—

—

—

(23
)
(23
)
Hurricane-related costs
—




—

 
—

—

12

12

24

Gain on consolidation of business
—




—

 
(423
)
—

—

—

(423
)
Pension settlement expense
—




—

 
—

35

13

5

53

Refining EBITDA, Adjusted for Special Items
321




321

 
166

525

1,063

723

2,477

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




—

 
—

—

—

1

1

Proportional share of selected equity affiliates net interest
(2
)



(2
)
 
—

(1
)
(1
)
(1
)
(3
)
Proportional share of selected equity affiliates depreciation and amortization
68




68

 
65

65

68

70

268

Refining Adjusted EBITDA
387




387

 
231

589

1,130

793

2,743

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Statistics
 
 
 
 
 
 
 
Atlantic Basin/Europe*
 
 
 
 
 
 
 
 
 
 
 
Crude Oil Charge Input (MB/D)
419




419

 
366

533

536

543

494

Total Processed Inputs (MB/D)
436




436

 
446

569

569

597

546

Crude Oil Capacity Utilization (%)
78
%



78
%
 
70
%
103
%
103
%
104
%
95
%
Clean Product Yield (%)
84
%



84
%
 
88
%
87
%
88
%
89
%
88
%
* Includes our proportionate share of a refinery complex in Karlsruhe, Germany.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gulf Coast
 
 
 
 
 
 
 
 
 
 
 
Crude Oil Charge Input (MB/D)
696




696

 
668

715

694

758

709

Total Processed Inputs (MB/D)
769




769

 
743

795

767

828

784

Crude Oil Capacity Utilization (%)
93
%



93
%
 
90
%
96
%
93
%
102
%
95
%
Clean Product Yield (%)
76
%



76
%
 
80
%
81
%
80
%
81
%
81
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Central Corridor*
 
 
 
 
 
 
 
 
 
 
 
Crude Oil Charge Input (MB/D)
458




458

 
470

465

480

452

467

Total Processed Inputs (MB/D)
475




475

 
488

480

497

472

484

Crude Oil Capacity Utilization (%)
93
%



93
%
 
95
%
94
%
97
%
92
%
95
%
Clean Product Yield (%)
90
%



90
%
 
90
%
88
%
88
%
91
%
89
%
* Includes our proportionate share of the Borger Refinery and Wood River Refinery.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
West Coast
 
 
 
 
 
 
 
 
 
 
 
Crude Oil Charge Input (MB/D)
340




340

 
279

366

368

353

342

Total Processed Inputs (MB/D)
367




367

 
304

388

398

378

367

Crude Oil Capacity Utilization (%)
93
%



93
%
 
78
%
102
%
102
%
98
%
95
%
Clean Product Yield (%)
86
%



86
%
 
87
%
87
%
86
%
89
%
87
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Worldwide—Including Proportionate Share of Equity Affiliates
 
 
 
 
 
 
 
 
 
 
Crude Oil Charge Input (MB/D)
1,913




1,913

 
1,783

2,079

2,078

2,106

2,012

Total Processed Inputs (MB/D)
2,047




2,047

 
1,981

2,232

2,231

2,275

2,181

Crude Oil Capacity Utilization (%)
89
%



89
%
 
84
%
98
%
98
%
100
%
95
%
Clean Product Yield (%)
83
%



83
%
 
85
%
85
%
85
%
87
%
86
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Refined Products Production (MB/D)
 
 
 
 
 
 
 
Atlantic Basin/Europe*
 
 
 
 
 
 
 
 
 
 
 
Gasoline
172




172

 
213

252

252

260

244

Distillates
185




185

 
163

228

230

254

219

Other
81




81

 
81

95

92

90

90

Total
438




438

 
457

575

574

604

553

* Includes our proportionate share of a refinery complex in Karlsruhe, Germany.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gulf Coast
 
 
 
 
 
 
 
 
 
 
 
Gasoline
303




303

 
296

324

310

333

316

Distillates
260




260

 
275

292

286

311

291

Other
212




212

 
178

185

175

191

182

Total
775




775

 
749

801

771

835

789

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Central Corridor*
 
 
 
 
 
 
 
 
 
 
 
Gasoline
242




242

 
253

241

253

251

249

Distillates
181




181

 
181

180

182

178

180

Other
56




56

 
59

64

68

48

60

Total
479




479

 
493

485

503

477

489

* Includes our proportionate share of the Borger Refinery and Wood River Refinery.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
West Coast
 
 
 
 
 
 
 
 
 
 
 
Gasoline
180




180

 
154

197

198

189

185

Distillates
136




136

 
110

141

142

144

135

Other
53




53

 
41

50

58

44

48

Total
369




369

 
305

388

398

377

368

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Worldwide—Including Proportionate Share of Equity Affiliates
 
 
 
 
 
 
 
 
 
 
Gasoline
 
 
 
897




897

 
916

1,014

1,013

1,033

994

Distillates
 
 
 
762




762

 
729

841

840

887

825

Other
 
 
 
402




402

 
359

394

393

373

380

Total
 
 
 
2,061




2,061

 
2,004

2,249

2,246

2,293

2,199

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Page 8

 
psxphillips66.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REFINING (continued)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2018
 
2017
 
 
 
 
1st Qtr

2nd Qtr
3rd Qtr
4th Qtr
YTD

 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

Market Indicators
 
 
 
 
 
 
 
 
 
 
 
Crude and Crude Differentials ($/BBL)
 
 
 
 
 
 
 
 
 
 
 
WTI
62.88




62.88

 
51.83

48.24

48.16

55.35

50.90

Brent
66.76




66.76

 
53.78

49.83

52.08

61.39

54.27

LLS
65.79




65.79

 
53.51

50.31

51.65

61.05

54.13

ANS
66.96




66.96

 
53.83

50.68

52.20

61.52

54.56

WTI less Maya
5.16




5.16

 
7.10

4.29

1.62

2.21

3.80

WTI less WCS
25.78




25.78

 
13.79

9.99

10.49

16.82

12.77

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Natural Gas ($/MMBtu)
 
 
 
 
 
 
 
 
 
 
 
 
 
Henry Hub
3.01




3.01

 
3.00

3.05

2.93

2.86

2.96

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Product Margins ($/BBL)
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe
 
 
 
 
 
 
 
 
 
 
 
East Coast Gasoline less Brent
9.23




9.23

 
9.46

15.53

19.17

11.26

13.85

East Coast Distillate less Brent
16.35




16.35

 
12.93

13.29

17.18

17.77

15.29

Gulf Coast
 
 
 
 
 
 
 
 
 
 
 
Gulf Coast Gasoline less LLS
8.65




8.65

 
9.92

10.86

14.90

8.95

11.16

Gulf Coast Distillate less LLS
15.15




15.15

 
12.26

11.59

16.44

15.48

13.94

Central Corridor
 
 
 
 
 
 
 
 
 
 
 
Central Gasoline less WTI
13.57




13.57

 
12.77

14.11

19.32

16.43

15.66

Central Distillate less WTI
19.85




19.85

 
14.00

14.59

21.98

23.43

18.50

West Coast
 
 
 
 
 
 
 
 
 
 
 
West Coast Gasoline less ANS
16.40




16.40

 
17.28

21.08

20.83

11.76

17.74

West Coast Distillate less ANS
17.28




17.28

 
14.84

14.32

20.45

18.81

17.10

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Worldwide Market Crack Spread ($/BBL)*
13.12




13.12

 
12.24

14.06

18.19

13.98

14.62

* Weighted average based on Phillips 66 crude capacity.




Page 9

 
psxphillips66.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MARKETING AND SPECIALTIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2018
 
2017
 
 
 
 
1st Qtr

2nd Qtr
3rd Qtr
4th Qtr
YTD

 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

Marketing and Specialties Net Income ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Marketing and Other
139




139

 
124

181

160

86

551

Specialties
45




45

 
17

33

48

37

135

Marketing and Specialties Net Income
184




184

 
141

214

208

123

686

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Marketing and Specialties Income before Income Taxes ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Marketing and Other
176




176

 
181

275

242

110

808

Specialties
59




59

 
27

53

75

57

212

Marketing and Specialties Income before Income Taxes
235




235

 
208

328

317

167

1,020

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Marketing Net Income ($/BBL)
 
 
 
 
 
 
 
 
 
 
 
U.S.
0.64




0.64

 
0.52

0.75

0.65

0.34

0.56

International
1.30




1.30

 
1.59

2.31

1.79

1.54

1.81

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Realized Marketing Fuel Margins ($/BBL)*
 
 
 
 
 
 
 
 
 
 
 
U.S.
1.39




1.39

 
1.47

1.74

1.63

1.09

1.48

International
3.32




3.32

 
3.70

4.95

4.45

3.72

4.21

* See note on the use of non-GAAP measures below. Also, reconciliations of net income to realized marketing fuel margin for each period and by region are included in the "Realized Margin Non-GAAP Reconciliations" section below.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Realized Margins not included in Marketing Fuel Margin ($ Millions)*
 
 
 
 
 
 
 
 
 
 
 
Marketing and Other
147




147

 
133

142

160

130

565

Specialties
94




94

 
72

97

120

103

392

Total
241




241

 
205

239

280

233

957

* Excludes Gain on Dispositions and Excise Tax Income.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and Amortization ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Marketing and Other
24




24

 
22

21

24

25

92

Specialties
5




5

 
5

5

5

5

20

Total
29




29

 
27

26

29

30

112

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating and SG&A Expense ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Marketing and Other
266




266

 
245

283

292

284

1,104

Specialties
36




36

 
38

37

39

39

153

Total
302




302

 
283

320

331

323

1,257

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Marketing Petroleum Products Sales (MB/D)
 
 
 
 
 
 
 
 
 
 
 
U.S. Marketing
 
 
 
 
 
 
 
 
 
 
 
Gasoline
1,024




1,024

 
1,073

1,188

1,188

1,197

1,162

Distillates
 
 
 
706




706

 
667

751

780

866

766

Other
 
 
 
1




1

 
—

—

1

1

1

Total
 
 
 
1,731




1,731

 
1,740

1,939

1,969

2,064

1,929

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
International Marketing
 
 
 
 
 
 
 
 
 
 
 
Gasoline
 
 
 
81




81

 
82

87

84

83

84

Distillates
 
 
 
173




173

 
168

161

166

165

165

Other
 
 
 
19




19

 
15

18

17

20

17

Total
 
 
 
273




273

 
265

266

267

268

266

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Worldwide Marketing
 
 
 
 
 
 
 
 
 
 
 
Gasoline
 
 
 
1,105




1,105

 
1,155

1,275

1,272

1,280

1,246

Distillates
 
 
 
879




879

 
835

912

946

1,031

931

Other
 
 
 
20




20

 
15

18

18

21

18

Total
 
 
 
2,004




2,004

 
2,005

2,205

2,236

2,332

2,195

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign Currency Gains (Losses) After-Tax ($ Millions)
4




4

 
1

—

1

(3
)
(1
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of Marketing and Specialties Net Income to Adjusted EBITDA ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Marketing and Specialties net income
184




184

 
141

214

208

123

686

Plus:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income tax expense
51




51

 
67

114

109

44

334

Depreciation and amortization
29




29

 
27

26

29

30

112

Marketing and Specialties EBITDA
264




264

 
235

354

346

197

1,132

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




—

 
—

—

1

—

1

Pension settlement expense
—




—

 
—

7

3

1

11

Certain tax impacts
(13
)



(13
)
 
—

—

—

—

—

Marketing and Specialties EBITDA, Adjusted for Special Items
251




251

 
235

361

350

198

1,144

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




—

 
—

—

—

—

—

Proportional share of selected equity affiliates net interest
—




—

 
—

—

1

—

1

Proportional share of selected equity affiliates depreciation and amortization
3




3

 
3

3

2

3

11

Marketing and Specialties Adjusted EBITDA
254




254

 
238

364

353

201

1,156



Page 10

 
psxphillips66.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CORPORATE AND OTHER
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2018
 
2017
 
 
 
 
1st Qtr

2nd Qtr
3rd Qtr
4th Qtr
YTD

 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate and Other Net Income (Loss) ($ Millions)
(155
)



(155
)
 
(130
)
(149
)
(147
)
2,595

2,169

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Detail of Net Income (Loss) ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Net interest expense
(89
)



(89
)
 
(65
)
(65
)
(68
)
(68
)
(266
)
Corporate overhead
(47
)



(47
)
 
(39
)
(47
)
(45
)
(44
)
(175
)
Technology
(18
)



(18
)
 
(15
)
(14
)
(16
)
(17
)
(62
)
U.S. tax reform
7




7

 
—

—

—

2,735

2,735

Other
(8
)



(8
)
 
(11
)
(23
)
(18
)
(11
)
(63
)
Total
(155
)



(155
)
 
(130
)
(149
)
(147
)
2,595

2,169

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pre-Tax Net Interest Expense ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Interest expense
(123
)



(123
)
 
(114
)
(113
)
(112
)
(114
)
(453
)
Capitalized interest
—




—

 
9

6

—

—

15

Interest revenue
11




11

 
5

7

8

10

30

Total
(112
)



(112
)
 
(100
)
(100
)
(104
)
(104
)
(408
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of Corporate and Other Net Income (Loss) to Adjusted EBITDA ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Corporate and Other net income (loss)
(155
)



(155
)
 
(130
)
(149
)
(147
)
2,595

2,169

Plus:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income tax benefit
(41
)



(41
)
 
(75
)
(62
)
(106
)
(2,821
)
(3,064
)
Net interest expense
112




112

 
100

100

104

104

408

Depreciation and amortization
22




22

 
21

21

22

22

86

Corporate and Other EBITDA
(62
)



(62
)
 
(84
)
(90
)
(127
)
(100
)
(401
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Special Item Adjustments (pre-tax):
 
 
 
 
 
 
 
 
 
 
 
Pension settlement expense
—




—

 
—

5

2

—

7

Pending claims and settlements
—




—

 
—

—

31

—

31

U.S. tax reform
(16
)



(16
)
 
—

—

—

—

—

Corporate and Other EBITDA, Adjusted for Special Items
(78
)



(78
)
 
(84
)
(85
)
(94
)
(100
)
(363
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Adjustments (pre-tax):
 
 
 
 
 
 
 
 
 
 
 
None
—




—

 
—

—

—

—

—

Corporate and Other Adjusted EBITDA
(78
)



(78
)
 
(84
)
(85
)
(94
)
(100
)
(363
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign Currency Gains (Losses) After-Tax ($ Millions)
—




—

 
—

(1
)
(1
)
2

—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Phillips 66 Total Company Debt
 
 
 
 
 
 
 
 
 
 
 
Total Debt ($ Millions)
11,621




11,621

 
10,210

9,965

10,201

10,110

10,110

Debt-to-Capital Ratio (%)
32
%



32
%
 
30
%
30
%
30
%
27
%
27
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Equity ($ Millions)
24,300




24,300

 
23,725

23,806

23,959

27,428

27,428

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA
 
 
 
 
 
 
 
 
 
 
 
 
 
Millions of Dollars
 
2018
 
2017
 
1st Qtr

2nd Qtr
3rd Qtr
4th Qtr
YTD

 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

 
 
 
 
 
 
 
 
 
 
 
 
Net income
585




585

 
563

581

849

3,255

5,248

Plus:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income tax expense (benefit)
132




132

 
234

267

407

(2,601
)
(1,693
)
Net interest expense
112




112

 
99

100

104

104

407

Depreciation and amortization
336




336

 
315

320

337

346

1,318

Phillips 66 EBITDA
1,165




1,165

 
1,211

1,268

1,697

1,104

5,280

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




—

 
33

—

—

31

64

Pending claims and settlements
—




—

 
—

(21
)
(36
)
—

(57
)
Certain tax impacts
(15
)



(15
)
 
—

—

—

(23
)
(23
)
Gain on consolidation of business
—




—

 
(423
)
—

—

—

(423
)
Pension settlement expense
—




—

 
—

55

21

7

83

Hurricane-related costs
—




—

 
—

—

70

140

210

U.S. tax reform
(16
)



(16
)
 
—

—

—

—

—

Phillips 66 EBITDA, Adjusted for Special Items
1,134




1,134

 
821

1,302

1,752

1,259

5,134

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Adjustments (pre-tax):
 
 
 
 
 
 
 
Proportional share of selected equity affiliates income taxes
23




23

 
20

15

19

16

70

Proportional share of selected equity affiliates net interest
35




35

 
28

27

32

36

123

Proportional share of selected equity affiliates depreciation and amortization
214




214

 
180

180

200

217

777

EBITDA attributable to Phillips 66 noncontrolling interests
(80
)



(80
)
 
(46
)
(47
)
(49
)
(87
)
(229
)
Phillips 66 Adjusted EBITDA
1,326




1,326

 
1,003

1,477

1,954

1,441

5,875

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Use of Non-GAAP Financial Information—This earnings release supplemental data includes the terms EBITDA and Adjusted EBITDA and Realized refining margins per barrel and Realized marketing fuel margins per barrel. These are non-GAAP financial measures. EBITDA and Adjusted EBITDA are included to help facilitate comparisons of operating performance across periods, to help facilitate comparisons with other companies in our industry and to help facilitate determination of enterprise value. The GAAP measure most directly comparable to EBITDA and Adjusted EBITDA is net income. Realized refining margin per barrel is calculated on a similar basis as industry crack spreads and we believe it provides a useful measure of how well we performed relative to benchmark industry margins. Realized marketing fuel margin per barrel demonstrates the value uplift our marketing operations provide by optimizing the placement and ultimate sale of our refineries' fuel production. The most directly comparable GAAP measure to both realized margin per barrel measures is net income per barrel. Reconciliations of net income to realized refining margin and realized marketing fuel margin for each period and by region are included in the "Realized Margin Non-GAAP Reconciliations" section below.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Page 11


psxphillips66.jpg















REALIZED MARGIN NON-GAAP RECONCILIATIONS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RECONCILIATION OF NET INCOME (LOSS) TO REALIZED REFINING MARGINS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ Millions, Except as Indicated
 
 
 
 
2018
 
2017
 
 
 
 
1st Qtr

2nd Qtr
3rd Qtr
4th Qtr
YTD

 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ATLANTIC BASIN/EUROPE
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
(73
)



(73
)
 
(50
)
107

171

142

370

Plus:
 
 
 
 
 
 
 
 
 
 
 
Income tax expense (benefit)
(35
)



(35
)
 
(48
)
13

76

37

78

Taxes other than income taxes
15




15

 
16

13

14

13

56

Depreciation, amortization and impairments
52




52

 
49

47

47

49

192

Selling, general and administrative expenses
13




13

 
14

15

16

16

61

Operating expenses
285




285

 
257

198

185

207

847

Equity in losses of affiliates
2




2

 
4

2

3

2

11

Other segment income
(7
)



(7
)
 
(3
)
(3
)
(2
)
(2
)
(10
)
Proportional share of refining gross margins contributed by equity affiliates
29




29

 
14

16

15

14

59

Special items:
 
 
 
 
 
 
 
 
 
 
 
 Certain tax impacts
—




—

 
—

—

—

(23
)
(23
)
Realized refining margins
281




281

 
253

408

525

455

1,641

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total processed inputs (thousands of barrels)
39,218




39,218

 
40,116

51,749

52,306

54,897

199,068

Adjusted total processed inputs (thousands of barrels)*
39,218




39,218

 
40,116

51,749

52,306

54,897

199,068

 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) (dollars per barrel)**
(1.86
)



(1.86
)
 
(1.25
)
2.07

3.27

2.59

1.86

Realized refining margins (dollars per barrel)***
7.17




7.17

 
6.29

7.90

10.02

8.32

8.25

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GULF COAST
 
 
 
 
 
 
 
 
 
 
 
Net income
1




1

 
328

53

67

64

512

Plus:
 
 
 
 
 
 
 
 
 
 
 
Income tax expense (benefit)
(1
)



(1
)
 
193

33

42

29

297

Taxes other than income taxes
25




25

 
27

23

24

23

97

Depreciation, amortization and impairments
66




66

 
67

68

68

70

273

Selling, general and administrative expenses
10




10

 
12

14

14

15

55

Operating expenses
366




366

 
338

294

298

282

1,212

Equity in (earnings) losses of affiliates
1




1

 
(7
)
2

(1
)
2

(4
)
Other segment (income) expense, net
(1
)



(1
)
 
(422
)
1

—

—

(421
)
Proportional share of refining gross margins contributed by equity affiliates
—




—

 
1

—

—

—

1

Realized refining margins
467




467

 
537

488

512

485

2,022

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total processed inputs (thousands of barrels)
69,207




69,207

 
66,848

72,346

70,544

76,213

285,951

Adjusted total processed inputs (thousands of barrels)*
69,207




69,207

 
66,848

72,346

70,544

76,213

285,951

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (dollars per barrel)**
0.01




0.01

 
4.91

0.73

0.95

0.84

1.79

Realized refining margins (dollars per barrel)***
6.75




6.75

 
8.03

6.74

7.26

6.38

7.07

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CENTRAL CORRIDOR
 
 
 
 
 
 
 
 
 
 
 
Net income
203




203

 
62

27

197

191

477

Plus:
 
 
 
 
 
 
 
 
 
 
 
Income tax expense
69




69

 
35

15

120

108

278

Taxes other than income taxes
12




12

 
14

13

9

10

46

Depreciation, amortization and impairments
35




35

 
27

37

32

33

129

Selling, general and administrative expenses
7




7

 
8

8

8

10

34

Operating expenses
108




108

 
136

183

123

151

593

Equity in (earnings) losses of affiliates
61




61

 
9

(26
)
(146
)
(166
)
(329
)
Other segment (income) expense, net
(4
)



(4
)
 
2

4

8

(1
)
13

Proportional share of refining gross margins
contributed by equity affiliates
198




198

 
169

175

290

325

959

Realized refining margins
689




689

 
462

436

641

661

2,200

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total processed inputs (thousands of barrels)
26,236




26,236

 
24,647

22,331

23,525

21,643

92,146

Adjusted total processed inputs (thousands of barrels)*
42,765




42,765

 
43,921

43,718

45,733

43,451

176,823

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (dollars per barrel)**
7.74




7.74

 
2.52

1.21

8.37

8.83

5.18

Realized refining margins (dollars per barrel)***
16.11




16.11

 
10.54

9.96

14.04

15.16

12.44

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Page 12

 
psxphillips66.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RECONCILIATION OF NET INCOME (LOSS) TO REALIZED REFINING MARGINS (continued)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ Millions, Except as Indicated
 
 
 
 
2018
 
2017
 
 
 
 
1st Qtr

2nd Qtr
3rd Qtr
4th Qtr
YTD

 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
WEST COAST
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
(40
)



(40
)
 
(81
)
37

115

(26
)
45

Plus:
 
 
 
 
 
 
 
 
 
 
 
Income tax expense (benefit)
(12
)



(12
)
 
(49
)
22

75

(29
)
19

Taxes other than income taxes
25




25

 
20

21

—

23

64

Depreciation, amortization and impairments
58




58

 
58

67

58

61

244

Selling, general and administrative expenses
11




11

 
11

12

12

13

48

Operating expenses
230




230

 
313

222

212

235

982

Other segment expense
3




3

 
1

1

2

1

5

Realized refining margins
275




275

 
273

382

474

278

1,407

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total processed inputs (thousands of barrels)
33,051




33,051

 
27,414

35,304

36,635

34,736

134,089

Adjusted total processed inputs (thousands of barrels)*
33,051




33,051

 
27,414

35,304

36,635

34,736

134,089

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) (dollars per barrel)**
(1.21
)



(1.21
)
 
(2.95
)
1.05

3.14

(0.75
)
0.34

Realized refining margins (dollars per barrel)***
8.32




8.32

 
9.95

10.83

12.95

7.96

10.49

 
 
 
 
 
 
 
 
 
 
 
 
WORLDWIDE
 
 
 
 
 
 
 
 
 
 
 
Net income
91




91

 
259

224

550

371

1,404

Plus:
 
 
 
 
 
 
 
 
 
 
 
Income tax expense
21




21

 
131

83

313

145

672

Taxes other than income taxes
77




77

 
77

70

47

69

263

Depreciation, amortization and impairments
211




211

 
201

219

205

213

838

Selling, general and administrative expenses
41




41

 
45

49

50

54

198

Operating expenses
989




989

 
1,044

897

818

875

3,634

Equity in (earnings) losses of affiliates
64




64

 
6

(22
)
(144
)
(162
)
(322
)
Other segment (income) expense, net
(9
)



(9
)
 
(422
)
3

8

(2
)
(413
)
Proportional share of refining gross margins contributed by equity affiliates
227




227

 
184

191

305

339

1,019

Special items:
 
 
 
 
 
 
 
 
 
 
 
  Certain tax impacts
—




—

 
—

—

—

(23
)
(23
)
Realized refining margins
1,712




1,712

 
1,525

1,714

2,152

1,879

7,270

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total processed inputs (thousands of barrels)
167,712




167,712

 
159,025

181,730

183,010

187,489

711,254

Adjusted total processed inputs (thousands of barrels)*
184,241




184,241

 
178,299

203,117

205,218

209,297

795,931

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (dollars per barrel)**
0.54




0.54

 
1.63

1.23

3.01

1.98

1.97

Realized refining margins (dollars per barrel)***
9.29




9.29

 
8.55

8.44

10.49

8.98

9.13

* Adjusted total processed inputs include our proportional share of processed inputs of an equity affiliate.
** Net income divided by total processed inputs.
*** Realized refining margins per barrel, as presented, are calculated using the underlying realized refining margin amounts, in dollars, divided by adjusted total processed inputs, in barrels. As such, recalculated per barrel amounts using the rounded margins and barrels presented may differ from the presented per barrel amounts due to rounding.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Page 13

 
psxphillips66.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RECONCILIATION OF NET INCOME TO REALIZED MARKETING FUEL MARGINS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ Millions, Except as Indicated
 
 
 
 
2018
 
2017
 
 
 
 
1st Qtr

2nd Qtr
3rd Qtr
4th Qtr
YTD

 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UNITED STATES
 
 
 
 
 
 
 
 
 
 
 
Net income
99




99

 
81

132

118

64

395

Plus:
 
 
 
 
 
 
 
 
 
 
 
Income tax expense
33




33

 
48

79

73

33

233

Taxes other than income taxes*
(10
)



(10
)
 
1,278

1,375

1,409

1,419

5,481

Depreciation and amortization
4




4

 
4

3

3

4

14

Selling, general and administrative expenses
176




176

 
174

193

193

191

751

Equity in earnings of affiliates
(2
)



(2
)
 
—

(2
)
(2
)
(1
)
(5
)
Other operating revenues*
(84
)



(84
)
 
(1,354
)
(1,459
)
(1,499
)
(1,503
)
(5,815
)
Other segment income
—




—

 
(1
)
(14
)
—

—

(15
)
Realized marketing fuel margins
216




216

 
230

307

295

207

1,039

 
 
 
 
 
 
 
 
 
 
 
 
Total fuel sales volumes (thousands of barrels)
155,780




155,780

 
156,548

176,419

181,110

189,851

703,928

 
 
 
 
 
 
 
 
 
 
 
 
Net income (dollars per barrel)
0.64




0.64

 
0.52

0.75

0.65

0.34

0.56

Realized marketing fuel margins (dollars per barrel)**
1.39




1.39

 
1.47

1.74

1.63

1.09

1.48

 
 
 
 
 
 
 
 
 
 
 
 
INTERNATIONAL
 
 
 
 
 
 
 
 
 
 
 
Net income
32




32

 
38

56

44

38

176

Plus:
 
 
 
 
 
 
 
 
 
 
 
Income tax expense (benefit)
5




5

 
10

19

14

(2
)
41

Taxes other than income taxes*
(2
)



(2
)
 
1,756

1,881

1,970

1,972

7,579

Depreciation and amortization
18




18

 
15

16

17

19

67

Selling, general and administrative expenses
70




70

 
60

63

70

71

264

Equity in earnings of affiliates
(18
)



(18
)
 
(19
)
(22
)
(22
)
(20
)
(83
)
Other operating revenues*
(7
)



(7
)
 
(1,760
)
(1,883
)
(1,973
)
(1,978
)
(7,594
)
Other segment (income) expense, net
(5
)



(5
)
 
(1
)
1

(1
)
3

2

Marketing Margins
93




93

 
99

131

119

103

452

Less: Margin for non-fuel related sales
12




12

 
11

11

10

10

42

Realized marketing fuel margins
81




81

 
88

120

109

93

410

 
 
 
 
 
 
 
 
 
 
 
 
Total fuel sales volumes (thousands of barrels)
24,534




24,534

 
23,885

24,229

24,596

24,636

97,346

 
 
 
 
 
 
 
 
 
 
 
 
Net income (dollars per barrel)
1.30




1.30

 
1.59

2.31

1.79

1.54

1.81

Realized marketing fuel margins (dollars per barrel)**
3.32




3.32

 
3.70

4.95

4.45

3.72

4.21

* Includes excise taxes on sales of petroleum products for periods prior to the adoption of FASB ASU No. 2014-09 on January 1, 2018. Other operating revenues also includes other non-fuel revenues.
 
 
 
 
 
 
 
** Realized marketing fuel margins per barrel, as presented, are calculated using the underlying realized marketing fuel margin amounts, in dollars, divided by sales volumes, in barrels. As such, recalculated per barrel amounts using the rounded margins and barrels presented may differ from the presented per barrel amounts due to rounding.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Page 14

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