PHILLIPS 66 PARTNERS LP - FORM 8-K - EX-99.2 - EXHIBIT 99.2

Attached files

file	filename
EX-99.1 - EXHIBIT 99.1 - PHILLIPS 66 PARTNERS LP	mlp-2018930_erxex991.htm
8-K - 8-K - PHILLIPS 66 PARTNERS LP	mlp-2018930_erx8xk.htm

Exhibit 99.2



Phillips 66 Partners LP Earnings Release Supplemental Data

Factors Affecting Comparability

The following tables present our financial results and operating data for each quarterly period of the current and prior fiscal years. During the periods covered by this report, we acquired businesses from Phillips 66 that were considered transfers of businesses between entities under common control, which requires them to be accounted for as if the transfers had occurred at the beginning of the period of transfer, with financial statements for prior periods retrospectively adjusted to furnish comparative information. Accordingly, the consolidated financial and operating information included in the following tables has been retrospectively adjusted to include the historical financial and operating results of these acquired businesses prior to the effective date of acquisition. We refer to the results of these pre-acquisition periods as those of our “Predecessors” in the tables below. Tables labeled “Phillips 66 Partners LP” exclude Predecessors, while tables labeled “Consolidated” include Predecessors. The statements of income provided on pages 1 through 3 are designed to enable users to evaluate the financial effect of these business combinations in accordance with Accounting Standard Codification 805-10-50-1.

STATEMENT OF INCOME


PHILLIPS 66 PARTNERS LP

	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
Operating revenues—related parties	249	244	256		749	184	186	193	244	807
Operating revenues—third parties	7	10	9		26	10	11	11	8	40
Equity in earnings of affiliates	98	100	118		316	33	37	41	74	185
Other income	1	—	1		2	7	—	—	1	8
Total revenues and other income	355	354	384		1,093	234	234	245	327	1,040

Costs and Expenses
Operating and maintenance expenses	97	85	84		266	62	57	69	81	269
Depreciation	28	29	30		87	26	26	30	28	110
General and administrative expenses	16	16	16		48	16	16	16	17	65
Taxes other than income taxes	10	9	8		27	9	7	7	8	31
Interest and debt expense	30	29	28		87	24	24	23	29	100
Other expenses	—	—	1		1	—	—	1	—	1
Total costs and expenses	181	168	167		516	137	130	146	163	576
Income before income taxes	174	186	217		577	97	104	99	164	464
Income tax expense	2	—	—		2	—	1	—	2	3
Net income	172	186	217		575	97	103	99	162	461
Less: Preferred unitholders’ interest in net income attributable to the Partnership	9	10	9		28	—	—	—	9	9
Less: General partner’s interest in net income attributable to the Partnership	53	55	64		172	32	37	43	48	160
Limited partners’ interest in net income attributable to the Partnership	110	121	144		375	65	66	56	105	292

Adjusted EBITDA	247	276	305		828	163	166	171	254	754

Distributable Cash Flow	194	204	218		616	124	140	136	172	572

Page 1

Exhibit 99.2

STATEMENT OF INCOME (continued)


PREDECESSORS

	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
Operating revenues—related parties	—	—	—		—	26	30	29	2	87
Equity in earnings of affiliates	—	—	—		—	—	11	25	2	38
Other income	—	—	—		—	2	2	—	—	4
Total revenues and other income	—	—	—		—	28	43	54	4	129

Costs and Expenses
Operating and maintenance expenses	—	—	—		—	12	22	17	1	52
Depreciation	—	—	—		—	2	2	2	—	6
General and administrative expenses	—	—	—		—	1	2	1	—	4
Taxes other than income taxes	—	—	—		—	—	1	—	1	2
Interest and debt expense	—	—	—		—	—	—	1	—	1
Total costs and expenses	—	—	—		—	15	27	21	2	65
Income before income taxes	—	—	—		—	13	16	33	2	64
Income tax expense	—	—	—		—	—	—	1	—	1
Net income attributable to Predecessors	—	—	—		—	13	16	32	2	63

EBITDA attributable to Predecessors*	—	—	—		—	14	17	36	2	69
* Includes rounding impacts.
† In accordance with contractual terms of the Bakken Pipeline/MSLP acquisition, Q4 2017 EBITDA attributable to Predecessors did not affect Q4 2017 Distributable Cash Flow as the effective closing date of the transaction was October 1, 2017.

Page 2

Exhibit 99.2

STATEMENT OF INCOME (continued)


CONSOLIDATED

	Millions of Dollars, Except as Indicated
	2018					2017
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Revenues and Other Income
Operating revenues—related parties	249	244	256		749	210	216	222	246	894
Operating revenues—third parties	7	10	9		26	10	11	11	8	40
Equity in earnings of affiliates	98	100	118		316	33	48	66	76	223
Other income	1	—	1		2	9	2	—	1	12
Total revenues and other income	355	354	384		1,093	262	277	299	331	1,169

Costs and Expenses
Operating and maintenance expenses	97	85	84		266	74	79	86	82	321
Depreciation	28	29	30		87	28	28	32	28	116
General and administrative expenses	16	16	16		48	17	18	17	17	69
Taxes other than income taxes	10	9	8		27	9	8	7	9	33
Interest and debt expense	30	29	28		87	24	24	24	29	101
Other expenses	—	—	1		1	—	—	1	—	1
Total costs and expenses	181	168	167		516	152	157	167	165	641
Income before income taxes	174	186	217		577	110	120	132	166	528
Income tax expense	2	—	—		2	—	1	1	2	4
Net income	172	186	217		575	110	119	131	164	524
Less: Net income attributable to Predecessors	—	—	—		—	13	16	32	2	63
Net income attributable to the Partnership	172	186	217		575	97	103	99	162	461
Less: Preferred unitholders’ interest in net income attributable to the Partnership	9	10	9		28	—	—	—	9	9
Less: General partner’s interest in net income attributable to the Partnership	53	55	64		172	32	37	43	48	160
Limited partners’ interest in net income attributable to the Partnership	110	121	144		375	65	66	56	105	292

Net Income Attributable to the Partnership Per Limited Partner Unit (dollars)
Common units—basic	0.91	0.99	1.17		3.06	0.60	0.61	0.51	0.86	2.60
Common units—diluted	0.87	0.94	1.10		2.91	0.60	0.61	0.51	0.83	2.59

Weighted-Average Limited Partner Units Outstanding (thousands)
Common units—basic	121,610	122,189	123,270		122,362	107,400	109,189	110,506	120,953	112,045
Common units—diluted	135,429	136,008	137,090		136,182	107,400	109,189	110,506	134,021	115,339

Page 3

Exhibit 99.2

SELECTED OPERATING DATA


PHILLIPS 66 PARTNERS LP

	2018					2017
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Wholly Owned Operating Data
Pipelines
Pipeline revenues (millions of dollars)	102	111	123		336	102	103	109	110	424
Pipeline volumes⁽¹⁾(thousands of barrels daily)
Crude oil	947	1,020	1,047		1,005	874	871	952	968	916
Refined products and NGL	798	920	959		893	932	973	917	978	950
Total	1,745	1,940	2,006		1,898	1,806	1,844	1,869	1,946	1,866

Average pipeline revenue per barrel (dollars)	0.65	0.63	0.66		0.65	0.63	0.61	0.63	0.62	0.62

Terminals
Terminal revenues (millions of dollars)	39	38	37		114	37	37	38	40	152
Terminal throughput (thousands of barrels daily)
Crude oil⁽²⁾	483	471	436		463	363	374	467	478	421
Refined products	719	806	754		760	801	742	726	798	767
Total	1,202	1,277	1,190		1,223	1,164	1,116	1,193	1,276	1,188

Average terminaling revenue per barrel (dollars)	0.36	0.33	0.33		0.34	0.35	0.36	0.35	0.34	0.35

Storage, processing and other revenues (millions of dollars)	115	105	105		325	55	57	57	102	271
Total operating revenues (millions of dollars)	256	254	265		775	194	197	204	252	847

Joint Venture Operating Data⁽³⁾
Crude oil, refined products and NGL (thousands of barrels daily)	603	638	668		636	350	443	533	559	472
(1) Represents the sum of volumes transported through each separately tariffed pipeline segment.
(2) Bayway and Ferndale rail rack volumes included in crude oil terminals.
(3) Proportional share of total pipeline and terminal volumes of joint ventures consistent with recognized equity in earnings of affiliates.

Page 4

Exhibit 99.2



SELECTED OPERATING DATA (continued)

CONSOLIDATED

	2018					2017
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Wholly Owned Operating Data
Pipelines
Pipeline revenues (millions of dollars)	102	111	123		336	102	103	109	110	424
Pipeline volumes⁽¹⁾ (thousands of barrels daily)
Crude oil	947	1,020	1,047		1,005	874	871	952	968	916
Refined products and NGL	798	920	959		893	932	973	917	978	950
Total	1,745	1,940	2,006		1,898	1,806	1,844	1,869	1,946	1,866

Average pipeline revenue per barrel (dollars)	0.65	0.63	0.66		0.65	0.63	0.61	0.63	0.62	0.62

Terminals
Terminal revenues (millions of dollars)	39	38	37		114	37	37	38	40	152
Terminal throughput (thousands of barrels daily)
Crude oil⁽²⁾	483	471	436		463	363	374	467	478	421
Refined products	719	806	754		760	801	742	726	798	767
Total	1,202	1,277	1,190		1,223	1,164	1,116	1,193	1,276	1,188

Average terminaling revenue per barrel (dollars)	0.36	0.33	0.33		0.34	0.35	0.36	0.35	0.34	0.35

Storage, processing and other revenues (millions of dollars)	115	105	105		325	81	87	86	104	358
Total operating revenues (millions of dollars)	256	254	265		775	220	227	233	254	934

Joint-Venture Operating Data⁽³⁾
Crude oil, refined products and NGL (thousands of barrels daily)	603	638	668		636	350	443	533	559	472
(1) Represents the sum of volumes transported through each separately tariffed pipeline segment.
(2) Bayway and Ferndale rail rack volumes included in crude oil terminals.
(3) Proportional share of total pipeline and terminal volumes of joint ventures consistent with recognized equity in earnings of affiliates.

Page 5

Exhibit 99.2



CAPITAL EXPENDITURES AND INVESTMENTS

	Millions of Dollars
	2018					2017
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Capital Expenditures and Investments
Expansion	57	169	173		399	42	65	87	106	300
Maintenance	12	10	24		46	11	10	10	21	52
Total Partnership	69	179	197		445	53	75	97	127	352
Predecessors	—	—	—		—	5	55	21	1	82
Total Consolidated	69	179	197		445	58	130	118	128	434



CASH DISTRIBUTIONS

	2018					2017
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD

Cash Distribution Per Common Unit (Dollars)	0.714	0.752	0.792		2.258	0.586	0.615	0.646	0.678	2.525

Cash Distributions^† ($ Millions)
Common units—public	38	40	44		122	26	28	34	36	124
Common units—Phillips 66	50	51	55		156	37	40	44	46	167
General partner—Phillips 66	51	57	61		169	32	36	43	47	158
Total	139	148	160		447	95	104	121	129	449

Coverage Ratio*	1.40	1.38	1.36		1.38	1.31	1.35	1.12	1.33	1.27
† Cash distributions declared attributable to the indicated periods.
* Calculated as distributable cash flow divided by total cash distributions. Used to indicate the Partnership’s ability to pay cash distributions from current earnings.

Page 6

Exhibit 99.2



NON-GAAP FINANCIAL MEASURES RECONCILIATION

CONSOLIDATED

	Millions of Dollars
	2018								2017
	1st Qtr	2nd Qtr		3rd Qtr		4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Reconciliation to Net Income Attributable to the Partnership
Net income attributable to the Partnership	172	186		217			575		97		103		99		162		461
Plus:
Net income attributable to Predecessors	—	—		—			—		13		16		32		2		63
Net income	172	186		217			575		110		119		131		164		524
Plus:
Depreciation	28	29		30			87		28		28		32		28		116
Net interest expense	29	29		28			86		23		23		24		29		99
Income tax expense	2	—		—			2		—		1		1		2		4
EBITDA	231	244		275			750		161		171		188		223		743
Proportional share of equity affiliates’ net interest, taxes and depreciation	15	28		30			73		12		12		13		29		66
Expenses indemnified or prefunded by Phillips 66	—	1		—			1		3		—		4		1		8
Transaction costs associated with acquisitions	1	3		—			4		1		—		2		1		4
EBITDA attributable to Predecessors	—	—		—			—		(14	)	(17	)	(36	)	—		(67	)
Adjusted EBITDA	247	276		305			828		163		166		171		254		754
Plus:
Deferred revenue impacts*^†	5	(5	)	(5	)		(5	)	4		4		1		(3	)	6
Less:
Equity affiliate distributions less than (more than) proportional EBITDA	10	18		22			50		8		(4	)	3		22		29
Maintenance capital expenditures^†	10	10		23			43		11		10		10		19		50
Net interest expense	29	29		28			86		24		24		23		29		100
Preferred unit distributions	9	10		9			28		—		—		—		9		9
Distributable cash flow	194	204		218			616		124		140		136		172		572
* Difference between cash receipts and revenue recognition.
† Excludes MSLP capital reimbursements and turnaround impacts.

Page 7

Exhibit 99.2



NON-GAAP FINANCIAL MEASURES RECONCILIATION (continued)

CONSOLIDATED

	Millions of Dollars
	2018									2017
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Reconciliation to Net Cash Provided by Operating Activities
Net cash provided by operating activities	171		226		255			652		155		136		195		238		724
Plus:
Net interest expense	29		29		28			86		23		23		24		29		99
Income tax expense	2		—		—			2		—		1		1		2		4
Changes in working capital	(17	)	(10	)	(7	)		(34	)	(19	)	8		(19	)	—		(30	)
Undistributed equity earnings	8		(1	)	(2	)		5		4		5		(9	)	1		1
Deferred revenues and other liabilities	38		5		1			44		—		—		2		(45	)	(43	)
Other	—		(5	)	—			(5	)	(2	)	(2	)	(6	)	(2	)	(12	)
EBITDA	231		244		275			750		161		171		188		223		743
Proportional share of equity affiliates’ net interest, taxes and depreciation	15		28		30			73		12		12		13		29		66
Expenses indemnified or prefunded by Phillips 66	—		1		—			1		3		—		4		1		8
Transaction costs associated with acquisitions	1		3		—			4		1		—		2		1		4
EBITDA attributable to Predecessors	—		—		—			—		(14	)	(17	)	(36	)	—		(67	)
Adjusted EBITDA	247		276		305			828		163		166		171		254		754
Plus:
Deferred revenue impacts*^†	5		(5	)	(5	)		(5	)	4		4		1		(3	)	6
Less:
Equity affiliate distributions less than (more than) proportional EBITDA	10		18		22			50		8		(4	)	3		22		29
Maintenance capital expenditures^†	10		10		23			43		11		10		10		19		50
Net interest expense	29		29		28			86		24		24		23		29		100
Preferred unit distributions	9		10		9			28		—		—		—		9		9
Distributable cash flow	194		204		218			616		124		140		136		172		572
* Difference between cash receipts and revenue recognition.
† Excludes MSLP capital reimbursements and turnaround impacts.

Page 8

PHILLIPS 66 PARTNERS LP - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - October 26, 2018

Attached files

PHILLIPS 66 PARTNERS LP Reports