Phillips 66 - FORM 8-K - EX-99.2 - EXHIBIT 99.2

Attached files

file	filename
EX-99.1 - EXHIBIT 99.1 - Phillips 66	psx-2018930_ex991.htm
8-K - 8-K - Phillips 66	psx-2018930_erx8xk.htm

Exhibit 99.2

Phillips 66 Earnings Release Supplemental Data



CONSOLIDATED INCOME STATEMENT

	Millions of Dollars
	2018									2017
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Revenues and Other Income
Sales and other operating revenues*	23,595		28,980		29,788			82,363		22,894		24,087		25,627		29,746		102,354
Equity in earnings of affiliates	424		743		779			1,946		365		462		530		375		1,732
Net gain on dispositions	17		—		1			18		1		14		—		—		15
Other income	10		13		24			47		452		18		49		2		521
Total Revenues and Other Income	24,046		29,736		30,592			84,374		23,712		24,581		26,206		30,123		104,622

Costs and Expenses
Purchased crude oil and products	21,138		25,747		26,385			73,270		17,679		18,353		19,463		23,914		79,409
Operating expenses	1,246		1,143		1,206			3,595		1,270		1,137		1,134		1,158		4,699
Selling, general and administrative expenses	386		432		440			1,258		384		439		435		437		1,695
Depreciation and amortization	336		337		346			1,019		315		320		337		346		1,318
Impairments	—		6		1			7		2		15		1		6		24
Taxes other than income taxes*	110		109		109			328		3,156		3,356		3,456		3,494		13,462
Accretion on discounted liabilities	6		6		5			17		5		6		5		6		22
Interest and debt expense	123		135		125			383		105		107		112		114		438
Foreign currency transaction (gains) losses	(16	)	(14	)	—			(30	)	(1	)	—		7		(6	)	—
Total Costs and Expenses	23,329		27,901		28,617			79,847		22,915		23,733		24,950		29,469		101,067
Income before income taxes	717		1,835		1,975			4,527		797		848		1,256		654		3,555
Income tax expense (benefit)	132		431		407			970		234		267		407		(2,601	)	(1,693	)
Net Income	585		1,404		1,568			3,557		563		581		849		3,255		5,248
Less: net income attributable to noncontrolling interests	61		65		76			202		28		31		26		57		142
Net Income Attributable to Phillips 66	524		1,339		1,492			3,355		535		550		823		3,198		5,106
* Includes excise taxes on sales of petroleum products for periods prior to the adoption of Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2014-09 on January 1, 2018:										3,036		3,252		3,376		3,390		13,054

Net Income Attributable to Phillips 66 Per Share of Common Stock (dollars)
Basic	1.07		2.86		3.20			7.07		1.02		1.06		1.60		6.29		9.90
Diluted	1.07		2.84		3.18			7.03		1.02		1.06		1.60		6.25		9.85

Weighted-Average Common Shares Outstanding (thousands)
Basic	487,065		468,331		466,109			473,760		521,647		517,785		512,923		508,148		515,090
Diluted	489,668		471,638		469,440			477,220		524,520		520,160		515,960		511,352		518,508

RECONCILIATION OF SEGMENT NET INCOME (LOSS) TO NET INCOME ATTRIBUTABLE TO PHILLIPS 66

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

Midstream	233		202		240			675		112		96		117		139		464
Chemicals	232		262		210			704		181		196		121		27		525
Refining	91		910		936			1,937		259		224		550		371		1,404
Marketing and Specialties	184		237		318			739		141		214		208		123		686
Corporate and Other	(155	)	(207	)	(136	)		(498	)	(130	)	(149	)	(147	)	2,595		2,169
Net Income	585		1,404		1,568			3,557		563		581		849		3,255		5,248
Less: net income attributable to noncontrolling interests	61		65		76			202		28		31		26		57		142
Net Income Attributable to Phillips 66	524		1,339		1,492			3,355		535		550		823		3,198		5,106

SUMMARY OF INCOME (LOSS) BEFORE INCOME TAXES BY SEGMENT

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

Midstream	280		238		284			802		153		130		166		189		638
Chemicals	286		324		263			873		251		294		163		8		716
Refining	112		1,190		1,232			2,534		390		307		863		516		2,076
Marketing and Specialties	235		310		423			968		208		328		317		167		1,020
Corporate and Other	(196	)	(227	)	(227	)		(650	)	(205	)	(211	)	(253	)	(226	)	(895	)
Consolidated	717		1,835		1,975			4,527		797		848		1,256		654		3,555

EFFECTIVE TAX RATES

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

Midstream	16.8	%	15.1	%	15.5	%		15.8	%	26.8	%	26.2	%	29.5	%	26.5	%	27.3	%
Chemicals	18.9	%	19.1	%	20.2	%		19.4	%	27.9	%	33.3	%	25.8	%	(237.5	)%	26.7	%
Refining	18.8	%	23.5	%	24.0	%		23.6	%	33.6	%	27.0	%	36.3	%	28.1	%	32.4	%
Marketing and Specialties	21.7	%	23.5	%	24.8	%		23.7	%	32.2	%	34.8	%	34.4	%	26.3	%	32.7	%
Corporate and Other	20.9	%	8.8	%	40.1	%		23.4	%	36.6	%	29.4	%	41.9	%	1,248.2	%	342.3	%
Consolidated	18.4	%	23.5	%	20.6	%		21.4	%	29.4	%	31.5	%	32.4	%	(397.7	)%	(47.6	)%

RECONCILIATION OF ADJUSTED SEGMENT NET INCOME (LOSS) TO ADJUSTED NET INCOME ATTRIBUTABLE TO PHILLIPS 66

	Millions of Dollars
	2018									2017
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Midstream
Transportation	136		137		175			448		78		74		98		108		358
NGL and Other	73		50		64			187		17		14		—		20		51
DCP Midstream	24		15		22			61		17		13		1		14		45
Total Midstream	233		202		261			696		112		101		99		142		454
Chemicals	232		262		210			704		201		196		153		121		671
Refining
Atlantic Basin/Europe	(73	)	131		175			233		(50	)	109		172		120		351
Gulf Coast	1		275		166			442		67		56		77		72		272
Central Corridor	203		392		633			1,228		62		29		198		192		481
West Coast	(42	)	113		(15	)		56		(81	)	39		101		(26	)	33
Total Refining	89		911		959			1,959		(2	)	233		548		358		1,137
Marketing and Specialties
Marketing and Other	129		145		243			517		124		185		163		87		559
Specialties	45		50		47			142		17		33		48		37		135
Total Marketing and Specialties	174		195		290			659		141		218		211		124		694
Corporate and Other	(162	)	(183	)	(187	)		(532	)	(130	)	(148	)	(127	)	(140	)	(545	)
Adjusted Net Income	566		1,387		1,533			3,486		322		600		884		605		2,411
Less: net income attributable to noncontrolling interests	54		65		77			196		28		31		26		57		142
Adjusted Net Income Attributable to Phillips 66	512		1,322		1,456			3,290		294		569		858		548		2,269

Page 1



SPECIAL ITEMS INCLUDED IN SEGMENT NET INCOME AND NET INCOME ATTRIBUTABLE TO PHILLIPS 66
(AFTER-TAX)

	Millions of Dollars
	2018									2017
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Midstream
Pending claims and settlements	—		—		(16	)		(16	)	—		—		23		—		23
Hurricane-related costs	—		—		—			—		—		—		(3	)	(3	)	(6	)
Pension settlement expense	—		—		(5	)		(5	)	—		(5	)	(2	)	—		(7	)
Total Midstream	—		—		(21	)		(21	)	—		(5	)	18		(3	)	10

Chemicals
Impairments by equity affiliates	—		—		—			—		(20	)	—		—		(19	)	(39	)
Hurricane-related costs	—		—		—			—		—		—		(32	)	(75	)	(107	)
Total Chemicals	—		—		—			—		(20	)	—		(32	)	(94	)	(146	)

Refining
Pending claims and settlements	—		—		—			—		—		13		18		—		31
Certain tax impacts	2		(1	)	1			2		—		—		—		23		23
Hurricane-related costs	—		—		—			—		—		—		(8	)	(7	)	(15	)
Gain on consolidation of business	—		—		—			—		261		—		—		—		261
Pension settlement expense	—		—		(24	)		(24	)	—		(22	)	(8	)	(3	)	(33	)
Total Refining	2		(1	)	(23	)		(22	)	261		(9	)	2		13		267

Marketing and Specialties
Certain tax impacts	10		42		33			85		—		—		—		—		—
Hurricane-related costs	—		—		—			—		—		—		(1	)	—		(1	)
Pension settlement expense	—		—		(5	)		(5	)	—		(4	)	(2	)	(1	)	(7	)
Total Marketing and Specialties	10		42		28			80		—		(4	)	(3	)	(1	)	(8	)

Corporate and Other
Pending claims and settlements	—		—		—			—		—		2		(19	)	—		(17	)
U.S. tax reform	7		(24	)	49			32		—		—		—		2,735		2,735
Other tax impacts	—		—		5			5		—		—		—		—		—
Pension settlement expense	—		—		(3	)		(3	)	—		(3	)	(1	)	—		(4	)
Total Corporate and Other	7		(24	)	51			34		—		(1	)	(20	)	2,735		2,714

Noncontrolling Interests
Pending claims and settlements	—		—		1			1		—		—		—		—		—
U.S. tax reform	(7	)	—		—			(7	)	—		—		—		—		—
Total Noncontrolling Interests	(7	)	—		1			(6	)	—		—		—		—		—

Total Phillips 66	12		17		36			65		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	—		—		(21	)		(21	)	—		(5	)	(3	)	—		(8	)
DCP Midstream	—		—		—			—		—		—		—		—		—
Total Midstream	—		—		(21	)		(21	)	—		(5	)	18		(3	)	10

Refining
Atlantic Basin/Europe	—		—		(5	)		(5	)	—		(2	)	(1	)	22		19
Gulf Coast	—		—		(8	)		(8	)	261		(3	)	(10	)	(8	)	240
Central Corridor	—		—		(6	)		(6	)	—		(2	)	(1	)	(1	)	(4	)
West Coast	2		(1	)	(4	)		(3	)	—		(2	)	14		—		12
Total Refining	2		(1	)	(23	)		(22	)	261		(9	)	2		13		267

Marketing and Specialties
Marketing and Other	10		42		28			80		—		(4	)	(3	)	(1	)	(8	)
Specialties	—		—		—			—		—		—		—		—		—
Total Marketing and Specialties	10		42		28			80		—		(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	—		—		(21	)		(21	)	—		—		37		—		37
Hurricane-related costs	—		—		—			—		—		—		(4	)	(6	)	(10	)
Pension settlement expense	—		—		(7	)		(7	)	—		(8	)	(3	)	(1	)	(12	)
Total Midstream	—		—		(28	)		(28	)	—		(8	)	30		(7	)	15

Chemicals
Impairments by equity affiliates	—		—		—			—		(33	)	—		—		(31	)	(64	)
Hurricane-related costs	—		—		—			—		—		—		(53	)	(122	)	(175	)
Total Chemicals	—		—		—			—		(33	)	—		(53	)	(153	)	(239	)

Refining
Pending claims and settlements	—		—		—			—		—		21		30		—		51
Certain tax impacts	2		(1	)	1			2		—		—		—		23		23
Hurricane-related costs	—		—		—			—		—		—		(12	)	(12	)	(24	)
Gain on consolidation of business	—		—		—			—		423		—		—		—		423
Pension settlement expense	—		—		(32	)		(32	)	—		(35	)	(13	)	(5	)	(53	)
Total Refining	2		(1	)	(31	)		(30	)	423		(14	)	5		6		420

Marketing and Specialties
Hurricane-related costs	—		—		—			—		—		—		(1	)	—		(1	)
Certain tax impacts	13		56		44			113		—		—		—		—		—
Pension settlement expense	—		—		(6	)		(6	)	—		(7	)	(3	)	(1	)	(11	)
Total Marketing and Specialties	13		56		38			107		—		(7	)	(4	)	(1	)	(12	)

Corporate and Other
Pending claims and settlements	—		—		—			—		—		3		(31	)	—		(28	)
Pension settlement expense	—		—		(4	)		(4	)	—		(5	)	(2	)	—		(7	)
U.S. tax reform	16		—		—			16		—		—		—		—		—
Total Corporate and Other	16		—		(4	)		12		—		(2	)	(33	)	—		(35	)

Total Phillips 66	31		55		(25	)		61		390		(31	)	(55	)	(155	)	149

By Business Lines/Regions
Midstream
Transportation	—		—		—			—		—		—		34		(5	)	29
NGL and Other	—		—		(28	)		(28	)	—		(8	)	(4	)	(2	)	(14	)
DCP Midstream	—		—		—			—		—		—		—		—		—
Total Midstream	—		—		(28	)		(28	)	—		(8	)	30		(7	)	15

Refining
Atlantic Basin/Europe	—		—		(7	)		(7	)	—		(4	)	(2	)	22		16
Gulf Coast	—		—		(11	)		(11	)	423		(5	)	(14	)	(14	)	390
Central Corridor	—		—		(7	)		(7	)	—		(3	)	(1	)	(2	)	(6	)
West Coast	2		(1	)	(6	)		(5	)	—		(2	)	22		—		20
Total Refining	2		(1	)	(31	)		(30	)	423		(14	)	5		6		420

Marketing and Specialties
Marketing and Other	13		56		38			107		—		(7	)	(4	)	(1	)	(12	)
Specialties	—		—		—			—		—		—		—		—		—
Total Marketing and Specialties	13		56		38			107		—		(7	)	(4	)	(1	)	(12	)

Page 2



CASH FLOW INFORMATION

	Millions of Dollars
	2018									2017
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Cash Flows From Operating Activities
Net income	585		1,404		1,568			3,557		563		581		849		3,255		5,248
Depreciation and amortization	336		337		346			1,019		315		320		337		346		1,318
Impairments	—		6		1			7		2		15		1		6		24
Accretion on discounted liabilities	6		6		5			17		5		6		5		6		22
Deferred income taxes	101		28		100			229		493		264		27		(2,670	)	(1,886	)
Undistributed equity earnings	119		(133	)	125			111		(212	)	(40	)	(291	)	27		(516	)
Net gain on dispositions	(17	)	—		(1	)		(18	)	(1	)	(14	)	—		—		(15	)
Gain on consolidation of business	—		—		—			—		(423	)	—		—		—		(423	)
Other	173		24		(79	)		118		6		92		(332	)	48		(186	)
Net working capital changes	(815	)	692		(1,483	)		(1,606	)	(1,297	)	641		(195	)	913		62
Net Cash Provided by (Used in) Operating Activities	488		2,364		582			3,434		(549	)	1,865		401		1,931		3,648

Cash Flows From Investing Activities
Capital expenditures and investments	(328	)	(538	)	(779	)		(1,645	)	(470	)	(458	)	(367	)	(537	)	(1,832	)
Proceeds from asset dispositions*	17		12		10			39		9		42		14		21		86
Collection of advances/loans—related parties	—		—		—			—		325		—		—		1		326
Restricted cash received from consolidation of business	—		—		—			—		318		—		—		—		318
Other	(46	)	62		50			66		(24	)	(37	)	(28	)	45		(44	)
Net Cash Provided by (Used in) Investing Activities	(357	)	(464	)	(719	)		(1,540	)	158		(453	)	(381	)	(470	)	(1,146	)

Cash Flows From Financing Activities
Issuance of debt	1,509		—		85			1,594		712		1,891		480		425		3,508
Repayment of debt	(7	)	(253	)	(114	)		(374	)	(773	)	(2,137	)	(251	)	(517	)	(3,678	)
Issuance of common stock	10		20		9			39		4		2		17		12		35
Repurchase of common stock	(3,513	)	(230	)	(405	)		(4,148	)	(285	)	(381	)	(461	)	(463	)	(1,590	)
Dividends paid on common stock	(327	)	(372	)	(370	)		(1,069	)	(326	)	(360	)	(356	)	(353	)	(1,395	)
Distributions to noncontrolling interests	(45	)	(51	)	(50	)		(146	)	(24	)	(30	)	(29	)	(37	)	(120	)
Net proceeds from issuance of Phillips 66 Partners LP common and preferred units	9		58		47			114		40		131		—		1,034		1,205
Other	(45	)	(13	)	(21	)		(79	)	(34	)	(20	)	(12	)	(10	)	(76	)
Net Cash Provided by (Used in) Financing Activities	(2,409	)	(841	)	(819	)		(4,069	)	(686	)	(904	)	(612	)	91		(2,111	)

Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash	1		(17	)	(4	)		(20	)	2		17		(22	)	20		17

Net Change in Cash, Cash Equivalents and Restricted Cash	(2,277	)	1,042		(960	)		(2,195	)	(1,075	)	525		(614	)	1,572		408
Cash, cash equivalents and restricted cash at beginning of period	3,119		842		1,884			3,119		2,711		1,636		2,161		1,547		2,711
Cash, Cash Equivalents and Restricted Cash at End of Period	842		1,884		924			924		1,636		2,161		1,547		3,119		3,119
* Includes return of investments in equity affiliates.

CAPITAL PROGRAM

	Millions of Dollars
	2018									2017
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Consolidated Capital Expenditures and Investments
Midstream	136		339		503			978		182		199		178		212		771
Chemicals	—		—		—			—		—		—		—		—		—
Refining	172		153		200			525		259		216		148		230		853
Marketing and Specialties	13		15		37			65		15		23		27		43		108
Corporate and Other	7		31		39			77		14		20		14		52		100
Total Consolidated	328		538		779			1,645		470		458		367		537		1,832

Proportional Share of Select Equity Affiliates Capital Expenditures and Investments*
DCP Midstream (Midstream)	95		98		149			342		44		60		62		102		268
CPChem (Chemicals)	161		63		60			284		256		131		119		270		776
WRB Refining (Refining)	40		35		41			116		42		22		27		35		126
Select Equity Affiliates	296		196		250			742		342		213		208		407		1,170

Total Capital Program*
Midstream	231		437		652			1,320		226		259		240		314		1,039
Chemicals	161		63		60			284		256		131		119		270		776
Refining	212		188		241			641		301		238		175		265		979
Marketing and Specialties	13		15		37			65		15		23		27		43		108
Corporate and Other	7		31		39			77		14		20		14		52		100
Total Capital Program	624		734		1,029			2,387		812		671		575		944		3,002
* Includes Phillips 66’s portion of self-funded capital spending by DCP Midstream, LLC (DCP Midstream), Chevron Phillips Chemical Company LLC (CPChem) and WRB Refining LP.

Page 3



MIDSTREAM

	2018					2017
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr		3rd Qtr		4th Qtr	YTD
Midstream Net Income (Loss) ($ Millions)
Transportation	136	137	175		448	78	74		119		105	376
NGL and Other	73	50	43		166	17	9		(3	)	20	43
DCP Midstream	24	15	22		61	17	13		1		14	45
Midstream Net Income (Loss)	233	202	240		675	112	96		117		139	464

Midstream Income (Loss) before Income Taxes ($ Millions)
Transportation	163	164	209		536	107	102		174		147	530
NGL and Other	86	53	46		185	19	6		(9	)	16	32
DCP Midstream	31	21	29		81	27	22		1		26	76
Midstream Income (Loss) before Income Taxes	280	238	284		802	153	130		166		189	638

Midstream Adjusted EBITDA ($ Millions)*
PSXP**	236	263	297		796	149	157		154		240	700
Other Midstream	127	79	113		319	70	54		107		55	286
Transportation and NGL and Other	363	342	410		1,115	219	211		261		295	986
DCP Midstream	76	62	72		210	71	65		42		70	248
Midstream Adjusted EBITDA	439	404	482		1,325	290	276		303		365	1,234
* See reconciliation of net income to Adjusted EBITDA on next page.
** Does not include certain PSXP adjustments made for PSXP stand-alone reporting purposes.

Depreciation and Amortization ($ Millions)*
Transportation	36	44	46		126	33	35		46		44	158
NGL and Other	38	38	40		116	35	34		35		37	141
DCP Midstream	—	—	—		—	—	—		—		—	—
Total	74	82	86		242	68	69		81		81	299
* Excludes D&A of all equity affiliates.

Operating and SG&A Expense ($ Millions)*
Transportation	178	188	178		544	161	177		187		185	710
NGL and Other	77	78	101		256	57	63		65		70	255
DCP Midstream	—	—	—		—	—	(1	)	—		—	(1	)
Total	255	266	279		800	218	239		252		255	964
* Excludes Operating and SG&A Expense of all equity affiliates.

Transportation Volumes (MB/D)
Pipelines*	3,407	3,594	3,706		3,569	3,469	3,430		3,447		3,658	3,501
Terminals**	2,669	3,214	3,179		3,021	2,395	2,581		2,675		3,008	2,665
* Pipelines represent the sum of volumes transported through each separately tariffed pipeline segment, including our share of equity volumes in Yellowstone and Lake Charles pipelines.
** Terminals include Bayway and Ferndale crude oil rail rack volumes.

PSX Other Volumes
NGL Fractionated (MB/D)*	184	227	227		213	175	177		177		215	186
* Excludes DCP Midstream.

100% DCP Midstream Results
Net Income Attributable, excludes parent company income tax related to DCP's earnings ($ Millions)	60	42	57		159	53	42		3		49	147

Depreciation and Amortization ($ Millions)	94	97	98		289	94	94		94		97	379

Operating and SG&A Expense ($ Millions)	221	260	275		756	240	254		226		234	954

Net Interest Expense ($ Millions)*	70	69	71		210	76	73		77		72	298
* Net of interest income.

Capital Expenditures and Investments ($ Millions)	189	196	299		684	87	121		124		204	536

Selected DCP Operating Statistics
Wellhead Volume (Bcf/D)	4.5	4.9	4.9		4.8	4.6	4.5		4.5		4.6	4.6
NGL Production (MB/D)	380	430	426		412	341	367		378		411	374

Weighted-Average NGL Price*
DCP Midstream ($/BBL)	29.41	31.83	36.51		32.58	25.31	22.94		26.12		30.39	26.19
DCP Midstream ($/gal)	0.70	0.76	0.87		0.78	0.60	0.55		0.62		0.72	0.62
* Based on index prices from the Mont Belvieu market hub, which are weighted by NGL component mix.

MLP Distributions ($ Millions)*
GP Distribution from PSXP to Phillips 66	51	57	61		169	32	36		43		47	158
LP Distribution from PSXP to Phillips 66	50	51	55		156	37	40		44		46	167
GP Distribution from DCP Midstream, LP to DCP Midstream***	43	42	**		85	23	23		43		83	172
LP Distribution from DCP Midstream, LP to DCP Midstream***	40	41	**		81	41	40		42		40	163
* Cash distributions declared attributable to general partner interest, common unit ownership and incentive distribution rights. These distributions are eliminated in the respective sponsors consolidated financial statements.
** Pending DCP Midstream release.
*** Represents 100 percent of DCP Midstream's distributions from DCP Midstream, LP.

Page 4



MIDSTREAM (continued)

	2018							2017
	1st Qtr		2nd Qtr	3rd Qtr	4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Reconciliation of Midstream Net Income to Adjusted EBITDA ($ Millions)
Midstream net income	233		202	240		675		112		96		117		139		464
Plus:
Income tax expense	47		36	44		127		41		34		49		50		174
Interest revenue	—		—	—		—		(1	)	—		—		—		(1	)
Depreciation and amortization	74		82	86		242		68		69		81		81		299
Midstream EBITDA	354		320	370		1,044		220		199		247		270		936

Special Item Adjustments (pre-tax):
Pending claims and settlements	—		—	21		21		—		—		(37	)	—		(37	)
Hurricane-related costs	—		—	—		—		—		—		4		6		10
Pension settlement expense	—		—	7		7		—		8		3		1		12
Midstream EBITDA, Adjusted for Special Items	354		320	398		1,072		220		207		217		277		921

Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes	—		—	—		—		—		1		1		(1	)	1
Proportional share of selected equity affiliates net interest	34		33	32		99		27		26		31		37		121
Proportional share of selected equity affiliates depreciation and amortization	51		51	52		154		43		42		54		52		191
Midstream Adjusted EBITDA	439		404	482		1,325		290		276		303		365		1,234

Midstream Adjusted EBITDA by Business Line
100% PSXP Results ($ Millions)
PSXP net income	172		186	217		575		110		119		131		164		524
Plus:
Income tax expense	2		—	—		2		—		1		1		2		4
Net interest expense	29		29	28		86		23		23		24		29		99
Depreciation and amortization	28		29	30		87		28		28		32		28		116
PSXP EBITDA	231		244	275		750		161		171		188		223		743

Adjustments (pre-tax):
EBITDA attributable to predecessors	—		—	—		—		(14	)	(17	)	(36	)	(2	)	(69	)
Special item - pending claims and settlements*	—		—	3		3		—		—		—		—		—
Special item - U.S. tax reform*	(10	)	—	—		(10	)	—		—		—		—		—
PSXP EBITDA, Adjusted for Predecessors and Special Items**	221		244	278		743		147		154		152		221		674

Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes	—		—	—		—		—		—		—		1		1
Proportional share of selected equity affiliates net interest	7		8	8		23		—		—		—		7		7
Proportional share of selected equity affiliates depreciation and amortization	8		11	11		30		2		3		2		11		18
PSXP Adjusted EBITDA**	236		263	297		796		149		157		154		240		700
* Represents a special item adjustment made for PSX reporting purposes only.
** Does not include certain PSXP adjustments made for PSXP stand-alone reporting purposes.

Total Transportation and NGL and Other ($ Millions)
Total Transportation and NGL and Other net income	209		187	218		614		95		83		116		125		419
Plus:
Income tax expense	40		30	37		107		31		25		49		38		143
Interest revenue	—		—	—		—		(1	)	—		—		—		(1	)
Depreciation and amortization	74		82	86		242		68		69		81		81		299
Total Transportation and NGL and Other EBITDA*	323		299	341		963		193		177		246		244		860

Special Item Adjustments (pre-tax):
Pension settlement expense	—		—	7		7		—		8		3		1		12
Pending claims and settlements	—		—	21		21		—		—		(37	)	—		(37	)
Hurricane-related costs	—		—	—		—		—		—		4		6		10
Total Transportation and NGL and Other EBITDA, Adjusted for Special Items*	323		299	369		991		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	17		53		10		10		18		18		56
Proportional share of selected equity affiliates depreciation and amortization	22		25	24		71		16		16		27		25		84
Total Transportation and NGL and Other Adjusted EBITDA*	363		342	410		1,115		219		211		261		295		986
* Includes PSXP results above. Does not include certain PSXP adjustments made for PSXP stand-alone reporting purposes.

DCP Midstream ($ Millions)
DCP Midstream net income	24		15	22		61		17		13		1		14		45
Plus:
Income tax expense	7		6	7		20		10		9		—		12		31
DCP Midstream EBITDA	31		21	29		81		27		22		1		26		76

Special Item Adjustments (pre-tax):
None	—		—	—		—		—		—		—		—		—
DCP Midstream EBITDA, Adjusted for Special Items	31		21	29		81		27		22		1		26		76

Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes	—		—	—		—		—		1		1		(2	)	—
Proportional share of selected equity affiliates net interest	16		15	15		46		17		16		13		19		65
Proportional share of selected equity affiliates depreciation and amortization	29		26	28		83		27		26		27		27		107
DCP Midstream Adjusted EBITDA*	76		62	72		210		71		65		42		70		248
* Proportional share of selected equity affiliates is net of noncontrolling interests.

Page 5



CHEMICALS

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

Chemicals Net Income ($ Millions)	232		262		210			704		181		196		121		27		525

100% CPChem Results
Net Income (Loss), excludes parent company income tax related to CPChem's earnings ($ Millions)
Olefins and Polyolefins	535		609		443			1,587		461		537		295		27		1,320
Specialties, Aromatics and Styrenics	57		76		108			241		53		61		46		9		169
Corporate and Other	(7	)	(35	)	(20	)		(62	)	(11	)	(8	)	(10	)	(14	)	(43	)
Total	585		650		531			1,766		503		590		331		22		1,446

Income (Loss) before Income Taxes ($ Millions)
Olefins and Polyolefins	546		618		457			1,621		470		546		304		35		1,355
Specialties, Aromatics and Styrenics	61		83		116			260		62		65		51		13		191
Corporate and Other	(7	)	(34	)	(20	)		(61	)	(11	)	(8	)	(10	)	(13	)	(42	)
Total	600		667		553			1,820		521		603		345		35		1,504

Depreciation and Amortization ($ Millions)	116		153		159			428		73		75		85		118		351

Net Interest (Income) Expense ($ Millions)*	(3	)	19		18			34		(1	)	(1	)	(3	)	(3	)	(8	)
* Net of interest income.

Investing Cash Flows ($ Millions)
Capital Expenditures and Investments	322		126		119			567		512		262		238		540		1,552
Advances to Equity Companies	—		—		—			—		6		2		3		—		11
Advance Repayments from Equity Companies	(33	)	(35	)	(12	)		(80	)	(7	)	—		—		(52	)	(59	)

Externally Marketed Sales Volumes (MM Lbs)*
Olefins and Polyolefins	4,427		4,738		4,883			14,048		4,016		4,137		3,842		3,875		15,870
Specialties, Aromatics and Styrenics	983		1,378		1,385			3,746		1,206		1,175		1,095		1,142		4,618
Total	5,410		6,116		6,268			17,794		5,222		5,312		4,937		5,017		20,488
* Represents 100 percent of CPChem's outside sales of produced petrochemical products, as well as commission sales from equity affiliates.

Olefins and Polyolefins Capacity Utilization (%)	96	%	95	%	91	%		94	%	89	%	98	%	83	%	79	%	87	%

Market Indicators*
U.S. Industry Prices
Ethylene, Average Acquisition Contract (cents/lb)	26.80		20.60		23.61			23.67		31.87		29.61		28.21		30.84		30.13
HDPE Blow Molding, Domestic Spot (cents/lb)	60.00		61.00		59.58			60.19		55.83		58.00		58.67		60.75		58.31

U.S. Industry Costs
Ethylene, Cash Cost Weighted Average Feed (cents/lb)	14.81		15.47		20.68			16.99		11.80		12.54		16.14		16.22		14.18
HDPE Blow Molding, Total Cash Cost (cents/lb)	39.81		33.47		36.57			36.62		44.90		42.59		41.13		43.78		43.10

Ethylene to High-Density Polyethylene Chain Cash Margin (cents/lb)	32.18		32.66		25.94			30.26		31.00		32.48		29.61		31.59		31.17
* Source: IHS, Inc.

Reconciliation of Chemicals Net Income to Adjusted EBITDA ($ Millions)
Chemicals net income	232		262		210			704		181		196		121		27		525
Plus:
Income tax expense (benefit)	54		62		53			169		70		98		42		(19	)	191
Chemicals EBITDA	286		324		263			873		251		294		163		8		716

Special Item Adjustments (pre-tax):
Impairments by equity affiliates	—		—		—			—		33		—		—		31		64
Hurricane-related costs	—		—		—			—		—		—		53		122		175
Chemicals EBITDA, Adjusted for Special Items	286		324		263			873		284		294		216		161		955

Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes	23		30		30			83		20		14		18		16		68
Proportional share of selected equity affiliates net interest	3		13		11			27		1		2		1		—		4
Proportional share of selected equity affiliates depreciation and amortization	92		108		110			310		69		70		76		92		307
Chemicals Adjusted EBITDA	404		475		414			1,293		374		380		311		269		1,334

Page 6



REFINING

	2018									2017
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Refining Net Income (Loss) ($ Millions)
Atlantic Basin/Europe	(73	)	131		170			228		(50	)	107		171		142		370
Gulf Coast	1		275		158			434		328		53		67		64		512
Central Corridor	203		392		627			1,222		62		27		197		191		477
West Coast	(40	)	112		(19	)		53		(81	)	37		115		(26	)	45
Refining Net Income (Loss)	91		910		936			1,937		259		224		550		371		1,404

Refining Income (Loss) before Income Taxes ($ Millions)
Atlantic Basin/Europe	(108	)	164		209			265		(98	)	120		247		179		448
Gulf Coast	—		366		210			576		521		86		109		93		809
Central Corridor	272		521		839			1,632		97		42		317		299		755
West Coast	(52	)	139		(26	)		61		(130	)	59		190		(55	)	64
Refining Income (Loss) before Income Taxes	112		1,190		1,232			2,534		390		307		863		516		2,076

Refining Net Income (Loss) ($/BBL)
Atlantic Basin/Europe	(1.86	)	2.73		3.76			1.72		(1.25	)	2.07		3.27		2.59		1.86
Gulf Coast	0.01		3.58		2.27			2.01		4.91		0.73		0.95		0.84		1.79
Central Corridor	7.74		14.96		23.41			15.42		2.52		1.21		8.37		8.83		5.18
West Coast	(1.21	)	3.18		(0.54	)		0.51		(2.95	)	1.05		3.14		(0.75	)	0.34
Worldwide	0.54		4.89		5.29			3.65		1.63		1.23		3.01		1.98		1.97

Realized Refining Margins ($/BBL)*
Atlantic Basin/Europe	7.17		10.42		11.48			9.82		6.29		7.90		10.02		8.32		8.25
Gulf Coast	6.75		9.93		9.09			8.64		8.03		6.74		7.26		6.38		7.07
Central Corridor	16.11		17.51		23.61			19.26		10.54		9.96		14.04		15.16		12.44
West Coast	8.32		12.77		9.53			10.25		9.95		10.83		12.95		7.96		10.49
Worldwide	9.29		12.28		13.36			11.72		8.55		8.44		10.49		8.98		9.13
* See note on the use of non-GAAP measures below. Also, reconciliations of net income to realized refining margin for each period and by region are included in the "Realized Margin Non-GAAP Reconciliations" section below.

Depreciation and Amortization ($ Millions)*
Atlantic Basin/Europe	52		50		50			152		49		47		47		49		192
Gulf Coast	66		64		69			199		65		68		68		70		271
Central Corridor	35		32		34			101		27		27		32		33		119
West Coast	58		59		60			177		58		62		58		61		239
Total	211		205		213			629		199		204		205		213		821
* Excludes D&A of all equity affiliates.

Operating and SG&A Expense ($ Millions)*
Atlantic Basin/Europe	298		240		233			771		271		213		201		223		908
Gulf Coast	376		305		330			1,011		350		308		312		297		1,267
Central Corridor	115		131		131			377		144		191		131		161		627
West Coast	241		240		275			756		324		234		224		248		1,030
Total	1,030		916		969			2,915		1,089		946		868		929		3,832
* Excludes Operating and SG&A Expense of all equity affiliates.

Turnaround Expense ($ Millions), included in Operating and SG&A Expense*
Atlantic Basin/Europe	98		21		4			123		83		19		7		16		125
Gulf Coast	105		10		24			139		72		23		11		19		125
Central Corridor	2		4		7			13		27		79		14		47		167
West Coast	40		25		20			85		117		33		11		17		178
Total	245		60		55			360		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		13			43		16		13		14		13		56
Gulf Coast	25		23		23			71		27		23		23		23		96
Central Corridor	12		9		10			31		14		13		9		10		46
West Coast	27		25		26			78		20		21		—		23		64
Total	79		72		72			223		77		70		46		69		262

Foreign Currency Gains (Losses) After-Tax ($ Millions)	9		5		(1	)		13		—		1		(5	)	5		1

Refining—Equity Affiliate Information ($ Millions)
Equity in earnings (losses) of affiliates	(64	)	214		297			447		(6	)	22		144		162		322
Less: Share of equity affiliate gross margin included in Realized Refining Margin and other equity-affiliate-related costs*	(239	)	(397	)	(469	)		(1,105	)	239		(191	)	(262	)	(306	)	(520	)
Equity-affiliate-related expenses not included in Realized Refining Margins	(303	)	(183	)	(172	)		(658	)	233		(169	)	(118	)	(144	)	(198	)
Regional Totals
Atlantic Basin/Europe	(43	)	(18	)	—			(61	)	(17	)	(18	)	25		17		7
Gulf Coast	(1	)	(3	)	(1	)		(5	)	428		(2	)	1		(1	)	426
Central Corridor	(259	)	(162	)	(171	)		(592	)	(178	)	(149	)	(144	)	(160	)	(631	)
Total	(303	)	(183	)	(172	)		(658	)	233		(169	)	(118	)	(144	)	(198	)
* Other costs associated with equity affiliates which do not flow through equity earnings.

Page 7



REFINING (continued)

	2018									2017
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Reconciliation of Refining Net Income to Adjusted EBITDA ($ Millions)
Refining net income	91		910		936			1,937		259		224		550		371		1,404
Plus:
Income tax expense	21		280		296			597		131		83		313		145		672
Depreciation and amortization	211		205		213			629		199		204		205		213		821
Refining EBITDA	323		1,395		1,445			3,163		589		511		1,068		729		2,897

Special Item Adjustments (pre-tax):
Pending claims and settlements	—		—		—			—		—		(21	)	(30	)	—		(51	)
Certain tax impacts	(2	)	1		(1	)		(2	)	—		—		—		(23	)	(23	)
Hurricane-related costs	—		—		—			—		—		—		12		12		24
Gain on consolidation of business	—		—		—			—		(423	)	—		—		—		(423	)
Pension settlement expense	—		—		32			32		—		35		13		5		53
Refining EBITDA, Adjusted for Special Items	321		1,396		1,476			3,193		166		525		1,063		723		2,477

Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes	—		—		1			1		—		—		—		1		1
Proportional share of selected equity affiliates net interest	(2	)	(1	)	(2	)		(5	)	—		(1	)	(1	)	(1	)	(3	)
Proportional share of selected equity affiliates depreciation and amortization	68		68		68			204		65		65		68		70		268
Refining Adjusted EBITDA	387		1,463		1,543			3,393		231		589		1,130		793		2,743

Operating Statistics
Atlantic Basin/Europe*
Crude Oil Charge Input (MB/D)	419		495		465			460		366		533		536		543		494
Total Processed Inputs (MB/D)	436		527		492			485		446		569		569		597		546
Crude Oil Capacity Utilization (%)	78	%	92	%	87	%		86	%	70	%	103	%	103	%	104	%	95	%
Clean Product Yield (%)	84	%	86	%	85	%		85	%	88	%	87	%	88	%	89	%	88	%
* Includes our proportionate share of a refinery complex in Karlsruhe, Germany.

Gulf Coast
Crude Oil Charge Input (MB/D)	696		767		656			706		668		715		694		758		709
Total Processed Inputs (MB/D)	769		845		759			791		743		795		767		828		784
Crude Oil Capacity Utilization (%)	93	%	102	%	87	%		94	%	90	%	96	%	93	%	102	%	95	%
Clean Product Yield (%)	76	%	80	%	79	%		79	%	80	%	81	%	80	%	81	%	81	%

Central Corridor*
Crude Oil Charge Input (MB/D)	458		513		531			501		470		465		480		452		467
Total Processed Inputs (MB/D)	475		531		548			518		488		480		497		472		484
Crude Oil Capacity Utilization (%)	93	%	104	%	108	%		102	%	95	%	94	%	97	%	92	%	95	%
Clean Product Yield (%)	90	%	88	%	88	%		89	%	90	%	88	%	88	%	91	%	89	%
* Includes our proportionate share of the Borger Refinery and Wood River Refinery.

West Coast
Crude Oil Charge Input (MB/D)	340		362		354			352		279		366		368		353		342
Total Processed Inputs (MB/D)	367		387		382			379		304		388		398		378		367
Crude Oil Capacity Utilization (%)	93	%	100	%	97	%		97	%	78	%	102	%	102	%	98	%	95	%
Clean Product Yield (%)	86	%	86	%	87	%		86	%	87	%	87	%	86	%	89	%	87	%

Worldwide—Including Proportionate Share of Equity Affiliates
Crude Oil Charge Input (MB/D)	1,913		2,137		2,006			2,019		1,783		2,079		2,078		2,106		2,012
Total Processed Inputs (MB/D)	2,047		2,290		2,181			2,173		1,981		2,232		2,231		2,275		2,181
Crude Oil Capacity Utilization (%)	89	%	100	%	93	%		94	%	84	%	98	%	98	%	100	%	95	%
Clean Product Yield (%)	83	%	84	%	84	%		84	%	85	%	85	%	85	%	87	%	86	%

Refined Products Production (MB/D)
Atlantic Basin/Europe*
Gasoline	172		222		203			199		213		252		252		260		244
Distillates	185		218		202			202		163		228		230		254		219
Other	81		92		89			87		81		95		92		90		90
Total	438		532		494			488		457		575		574		604		553
* Includes our proportionate share of a refinery complex in Karlsruhe, Germany.

Gulf Coast
Gasoline	303		337		307			316		296		324		310		333		316
Distillates	260		315		266			280		275		292		286		311		291
Other	212		198		192			201		178		185		175		191		182
Total	775		850		765			797		749		801		771		835		789

Central Corridor*
Gasoline	242		263		269			258		253		241		253		251		249
Distillates	181		201		210			197		181		180		182		178		180
Other	56		73		74			68		59		64		68		48		60
Total	479		537		553			523		493		485		503		477		489
* Includes our proportionate share of the Borger Refinery and Wood River Refinery.

West Coast
Gasoline	180		190		180			183		154		197		198		189		185
Distillates	136		143		150			143		110		141		142		144		135
Other	53		54		51			53		41		50		58		44		48
Total	369		387		381			379		305		388		398		377		368

Worldwide—Including Proportionate Share of Equity Affiliates
Gasoline	897		1,012		959			956		916		1,014		1,013		1,033		994
Distillates	762		877		828			822		729		841		840		887		825
Other	402		417		406			409		359		394		393		373		380
Total	2,061		2,306		2,193			2,187		2,004		2,249		2,246		2,293		2,199

Page 8



REFINING (continued)

	2018					2017
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Market Indicators
Crude and Crude Differentials ($/BBL)
WTI	62.88	67.99	69.71		66.86	51.83	48.24	48.16	55.35	50.90
Brent	66.76	74.35	75.27		72.13	53.78	49.83	52.08	61.39	54.27
LLS	65.79	73.11	74.31		71.07	53.51	50.31	51.65	61.05	54.13
ANS	66.96	74.10	75.55		72.20	53.83	50.68	52.20	61.52	54.56
WTI less Maya	5.16	5.83	3.57		4.85	7.10	4.29	1.62	2.21	3.80
WTI less WCS	25.78	18.04	27.88		23.90	13.79	9.99	10.49	16.82	12.77

Natural Gas ($/MMBtu)
Henry Hub	3.01	2.82	2.90		2.91	3.00	3.05	2.93	2.86	2.96

Product Margins ($/BBL)
Atlantic Basin/Europe
East Coast Gasoline less Brent	9.23	13.36	12.73		11.77	9.46	15.53	19.17	11.26	13.85
East Coast Distillate less Brent	16.35	15.83	16.20		16.13	12.93	13.29	17.18	17.77	15.29
Gulf Coast
Gulf Coast Gasoline less LLS	8.65	9.44	8.63		8.91	9.92	10.86	14.90	8.95	11.16
Gulf Coast Distillate less LLS	15.15	15.28	15.54		15.32	12.26	11.59	16.44	15.48	13.94
Central Corridor
Central Gasoline less WTI	13.57	16.04	16.68		15.43	12.77	14.11	19.32	16.43	15.66
Central Distillate less WTI	19.85	22.03	22.77		21.55	14.00	14.59	21.98	23.43	18.50
West Coast
West Coast Gasoline less ANS	16.40	18.76	14.13		16.43	17.28	21.08	20.83	11.76	17.74
West Coast Distillate less ANS	17.28	18.69	17.85		17.94	14.84	14.32	20.45	18.81	17.10

Worldwide Market Crack Spread ($/BBL)*	13.12	14.86	14.21		14.07	12.24	14.06	18.19	13.98	14.62
* Weighted average based on Phillips 66 crude capacity.

Page 9



MARKETING AND SPECIALTIES

	2018									2017
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD		1st Qtr	2nd Qtr	3rd Qtr	4th Qtr		YTD
Marketing and Specialties Net Income ($ Millions)
Marketing and Other	139		187		271			597		124	181	160	86		551
Specialties	45		50		47			142		17	33	48	37		135
Marketing and Specialties Net Income	184		237		318			739		141	214	208	123		686

Marketing and Specialties Income before Income Taxes ($ Millions)
Marketing and Other	176		244		361			781		181	275	242	110		808
Specialties	59		66		62			187		27	53	75	57		212
Marketing and Specialties Income before Income Taxes	235		310		423			968		208	328	317	167		1,020

Marketing Net Income ($/BBL)
U.S.	0.64		0.79		1.10			0.85		0.52	0.75	0.65	0.34		0.56
International	1.30		2.67		3.69			2.57		1.59	2.31	1.79	1.54		1.81

Realized Marketing Fuel Margins ($/BBL)*
U.S.	1.39		1.61		2.05			1.69		1.47	1.74	1.63	1.09		1.48
International	3.32		5.25		6.58			5.07		3.70	4.95	4.45	3.72		4.21
* See note on the use of non-GAAP measures below. Also, reconciliations of net income to realized marketing fuel margin for each period and by region are included in the "Realized Margin Non-GAAP Reconciliations" section below.

Realized Margins not included in Marketing Fuel Margin ($ Millions)*
Marketing and Other	147		154		166			467		133	142	160	130		565
Specialties	94		108		103			305		72	97	120	103		392
Total	241		262		269			772		205	239	280	233		957
* Includes equity earnings and other revenues and excludes gain on dispositions and excise tax income.

Depreciation and Amortization ($ Millions)*
Marketing and Other	24		24		22			70		22	21	24	25		92
Specialties	5		5		5			15		5	5	5	5		20
Total	29		29		27			85		27	26	29	30		112
* Excludes D&A of all equity affiliates.

Operating and SG&A Expense ($ Millions)*
Marketing and Other	266		294		303			863		245	283	292	284		1,104
Specialties	36		36		34			106		38	37	39	39		153
Total	302		330		337			969		283	320	331	323		1,257
* Excludes Operating and SG&A Expense of all equity affiliates.

Marketing Petroleum Products Sales (MB/D)
U.S. Marketing
Gasoline	1,024		1,110		1,102			1,079		1,073	1,188	1,188	1,197		1,162
Distillates	706		843		780			777		667	751	780	866		766
Other	1		—		—			—		—	—	1	1		1
Total	1,731		1,953		1,882			1,856		1,740	1,939	1,969	2,064		1,929

International Marketing
Gasoline	81		86		85			84		82	87	84	83		84
Distillates	173		169		175			172		168	161	166	165		165
Other	19		17		17			18		15	18	17	20		17
Total	273		272		277			274		265	266	267	268		266

Worldwide Marketing
Gasoline	1,105		1,196		1,187			1,163		1,155	1,275	1,272	1,280		1,246
Distillates	879		1,012		955			949		835	912	946	1,031		931
Other	20		17		17			18		15	18	18	21		18
Total	2,004		2,225		2,159			2,130		2,005	2,205	2,236	2,332		2,195

Foreign Currency Gains (Losses) After-Tax ($ Millions)	4		—		—			4		1	—	1	(3	)	(1	)

Reconciliation of Marketing and Specialties Net Income to Adjusted EBITDA ($ Millions)
Marketing and Specialties net income	184		237		318			739		141	214	208	123		686
Plus:
Income tax expense	51		73		105			229		67	114	109	44		334
Depreciation and amortization	29		29		27			85		27	26	29	30		112
Marketing and Specialties EBITDA	264		339		450			1,053		235	354	346	197		1,132

Special Item Adjustments (pre-tax):
Hurricane-related costs	—		—		—			—		—	—	1	—		1
Pension settlement expense	—		—		6			6		—	7	3	1		11
Certain tax impacts	(13	)	(56	)	(44	)		(113	)	—	—	—	—		—
Marketing and Specialties EBITDA, Adjusted for Special Items	251		283		412			946		235	361	350	198		1,144

Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes	—		—		—			—		—	—	—	—		—
Proportional share of selected equity affiliates net interest	—		2		1			3		—	—	1	—		1
Proportional share of selected equity affiliates depreciation and amortization	3		2		3			8		3	3	2	3		11
Marketing and Specialties Adjusted EBITDA	254		287		416			957		238	364	353	201		1,156

Page 10



CORPORATE AND OTHER

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

Corporate and Other Net Income (Loss) ($ Millions)	(155	)	(207	)	(136	)		(498	)	(130	)	(149	)	(147	)	2,595		2,169

Detail of Net Income (Loss) ($ Millions)
Net interest expense	(89	)	(101	)	(90	)		(280	)	(65	)	(65	)	(68	)	(68	)	(266	)
Corporate overhead	(47	)	(58	)	(66	)		(171	)	(39	)	(47	)	(45	)	(44	)	(175	)
Technology	(18	)	(17	)	(17	)		(52	)	(15	)	(14	)	(16	)	(17	)	(62	)
U.S. tax reform	7		(24	)	49			32		—		—		—		2,735		2,735
Other	(8	)	(7	)	(12	)		(27	)	(11	)	(23	)	(18	)	(11	)	(63	)
Total	(155	)	(207	)	(136	)		(498	)	(130	)	(149	)	(147	)	2,595		2,169

Pre-Tax Net Interest Expense ($ Millions)
Interest expense	(123	)	(136	)	(131	)		(390	)	(114	)	(113	)	(112	)	(114	)	(453	)
Capitalized interest	—		1		6			7		9		6		—		—		15
Interest revenue	11		7		11			29		5		7		8		10		30
Total	(112	)	(128	)	(114	)		(354	)	(100	)	(100	)	(104	)	(104	)	(408	)

Reconciliation of Corporate and Other Net Income (Loss) to Adjusted EBITDA ($ Millions)
Corporate and Other net income (loss)	(155	)	(207	)	(136	)		(498	)	(130	)	(149	)	(147	)	2,595		2,169
Plus:
Income tax benefit	(41	)	(20	)	(91	)		(152	)	(75	)	(62	)	(106	)	(2,821	)	(3,064	)
Net interest expense	112		128		114			354		100		100		104		104		408
Depreciation and amortization	22		21		20			63		21		21		22		22		86
Corporate and Other EBITDA	(62	)	(78	)	(93	)		(233	)	(84	)	(90	)	(127	)	(100	)	(401	)

Special Item Adjustments (pre-tax):
Pension settlement expense	—		—		4			4		—		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	)	(89	)		(245	)	(84	)	(85	)	(94	)	(100	)	(363	)

Other Adjustments (pre-tax):
None	—		—		—			—		—		—		—		—		—
Corporate and Other Adjusted EBITDA	(78	)	(78	)	(89	)		(245	)	(84	)	(85	)	(94	)	(100	)	(363	)

Foreign Currency Gains (Losses) After-Tax ($ Millions)	—		8		1			9		—		(1	)	(1	)	2		—

Phillips 66 Total Company Debt
Total Debt ($ Millions)	11,621		11,364		11,337			11,337		10,210		9,965		10,201		10,110		10,110
Debt-to-Capital Ratio (%)	32	%	31	%	31	%		31	%	30	%	30	%	30	%	27	%	27	%

Total Equity ($ Millions)	24,300		24,960		25,795			25,795		23,725		23,806		23,959		27,428		27,428

RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA

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

Net income	585		1,404		1,568			3,557		563		581		849		3,255		5,248
Plus:
Income tax expense (benefit)	132		431		407			970		234		267		407		(2,601	)	(1,693	)
Net interest expense	112		128		114			354		99		100		104		104		407
Depreciation and amortization	336		337		346			1,019		315		320		337		346		1,318
Phillips 66 EBITDA	1,165		2,300		2,435			5,900		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			21		—		(21	)	(36	)	—		(57	)
Certain tax impacts	(15	)	(55	)	(45	)		(115	)	—		—		—		(23	)	(23	)
Gain on consolidation of business	—		—		—			—		(423	)	—		—		—		(423	)
Pension settlement expense	—		—		49			49		—		55		21		7		83
Hurricane-related costs	—		—		—			—		—		—		70		140		210
U.S. tax reform	(16	)	—		—			(16	)	—		—		—		—		—
Phillips 66 EBITDA, Adjusted for Special Items	1,134		2,245		2,460			5,839		821		1,302		1,752		1,259		5,134

Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes	23		30		31			84		20		15		19		16		70
Proportional share of selected equity affiliates net interest	35		47		42			124		28		27		32		36		123
Proportional share of selected equity affiliates depreciation and amortization	214		229		233			676		180		180		200		217		777
EBITDA attributable to Phillips 66 noncontrolling interests	(80	)	(87	)	(97	)		(264	)	(46	)	(47	)	(49	)	(87	)	(229	)
Phillips 66 Adjusted EBITDA	1,326		2,464		2,669			6,459		1,003		1,477		1,954		1,441		5,875

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

Page 11



REALIZED MARGIN NON-GAAP RECONCILIATIONS

RECONCILIATION OF NET INCOME (LOSS) TO REALIZED REFINING MARGINS

	Millions of Dollars, Except as Indicated
	2018									2017
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD

ATLANTIC BASIN/EUROPE
Net income (loss)	(73	)	131		170			228		(50	)	107		171		142		370
Plus:
Income tax expense (benefit)	(35	)	33		39			37		(48	)	13		76		37		78
Taxes other than income taxes	15		15		13			43		16		13		14		13		56
Depreciation, amortization and impairments	52		50		50			152		49		47		47		49		192
Selling, general and administrative expenses	13		15		16			44		14		15		16		16		61
Operating expenses	285		225		217			727		257		198		185		207		847
Equity in losses of affiliates	2		3		2			7		4		2		3		2		11
Other segment income	(7	)	—		(3	)		(10	)	(3	)	(3	)	(2	)	(2	)	(10	)
Proportional share of refining gross margins contributed by equity affiliates	29		28		16			73		14		16		15		14		59
Special items:
Certain tax impacts	—		—		(1	)		(1	)	—		—		—		(23	)	(23	)
Realized refining margins	281		500		519			1,300		253		408		525		455		1,641

Total processed inputs (thousands of barrels)	39,218		47,978		45,233			132,429		40,116		51,749		52,306		54,897		199,068
Adjusted total processed inputs (thousands of barrels)	39,218		47,978		45,233			132,429		40,116		51,749		52,306		54,897		199,068

Net income (loss) (dollars per barrel)**	(1.86	)	2.73		3.76			1.72		(1.25	)	2.07		3.27		2.59		1.86
Realized refining margins (dollars per barrel)***	7.17		10.42		11.48			9.82		6.29		7.90		10.02		8.32		8.25

GULF COAST
Net income	1		275		158			434		328		53		67		64		512
Plus:
Income tax expense (benefit)	(1	)	91		52			142		193		33		42		29		297
Taxes other than income taxes	25		23		23			71		27		23		24		23		97
Depreciation, amortization and impairments	66		64		69			199		67		68		68		70		273
Selling, general and administrative expenses	10		13		13			36		12		14		14		15		55
Operating expenses	366		292		317			975		338		294		298		282		1,212
Equity in (earnings) losses of affiliates	1		3		1			5		(7	)	2		(1	)	2		(4	)
Other segment (income) expense, net	(1	)	3		1			3		(422	)	1		—		—		(421	)
Proportional share of refining gross margins contributed by equity affiliates	—		—		—			—		1		—		—		—		1
Realized refining margins	467		764		634			1,865		537		488		512		485		2,022

Total processed inputs (thousands of barrels)	69,207		76,875		69,745			215,827		66,848		72,346		70,544		76,213		285,951
Adjusted total processed inputs (thousands of barrels)	69,207		76,875		69,745			215,827		66,848		72,346		70,544		76,213		285,951

Net income (dollars per barrel)**	0.01		3.58		2.27			2.01		4.91		0.73		0.95		0.84		1.79
Realized refining margins (dollars per barrel)***	6.75		9.93		9.09			8.64		8.03		6.74		7.26		6.38		7.07

CENTRAL CORRIDOR
Net income	203		392		627			1,222		62		27		197		191		477
Plus:
Income tax expense	69		129		212			410		35		15		120		108		278
Taxes other than income taxes	12		9		10			31		14		13		9		10		46
Depreciation, amortization and impairments	35		32		34			101		27		37		32		33		129
Selling, general and administrative expenses	7		7		7			21		8		8		8		10		34
Operating expenses	108		124		124			356		136		183		123		151		593
Equity in (earnings) losses of affiliates	61		(220	)	(300	)		(459	)	9		(26	)	(146	)	(166	)	(329	)
Other segment (income) expense, net	(4	)	(8	)	4			(8	)	2		4		8		(1	)	13
Proportional share of refining gross margins contributed by equity affiliates	198		381		472			1,051		169		175		290		325		959
Realized refining margins	689		846		1,190			2,725		462		436		641		661		2,200

Total processed inputs (thousands of barrels)	26,236		26,209		26,778			79,223		24,647		22,331		23,525		21,643		92,146
Adjusted total processed inputs (thousands of barrels)*	42,765		48,347		50,410			141,522		43,921		43,718		45,733		43,451		176,823

Net income (dollars per barrel)**	7.74		14.96		23.41			15.42		2.52		1.21		8.37		8.83		5.18
Realized refining margins (dollars per barrel)***	16.11		17.51		23.61			19.26		10.54		9.96		14.04		15.16		12.44

Page 12



RECONCILIATION OF NET INCOME (LOSS) TO REALIZED REFINING MARGINS (continued)

	Millions of Dollars, Except as Indicated
	2018									2017
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD

WEST COAST
Net income (loss)	(40	)	112		(19	)		53		(81	)	37		115		(26	)	45
Plus:
Income tax expense (benefit)	(12	)	27		(7	)		8		(49	)	22		75		(29	)	19
Taxes other than income taxes	25		25		26			76		20		21		—		23		64
Depreciation, amortization and impairments	58		60		60			178		58		67		58		61		244
Selling, general and administrative expenses	11		12		11			34		11		12		12		13		48
Operating expenses	230		228		264			722		313		222		212		235		982
Other segment (income) expense	3		(14	)	—			(11	)	1		1		2		1		5
Realized refining margins	275		450		335			1,060		273		382		474		278		1,407

Total processed inputs (thousands of barrels)	33,051		35,195		35,132			103,378		27,414		35,304		36,635		34,736		134,089
Adjusted total processed inputs (thousands of barrels)	33,051		35,195		35,132			103,378		27,414		35,304		36,635		34,736		134,089

Net income (loss) (dollars per barrel)**	(1.21	)	3.18		(0.54	)		0.51		(2.95	)	1.05		3.14		(0.75	)	0.34
Realized refining margins (dollars per barrel)***	8.32		12.77		9.53			10.25		9.95		10.83		12.95		7.96		10.49

WORLDWIDE
Net income	91		910		936			1,937		259		224		550		371		1,404
Plus:
Income tax expense	21		280		296			597		131		83		313		145		672
Taxes other than income taxes	77		72		72			221		77		70		47		69		263
Depreciation, amortization and impairments	211		206		213			630		201		219		205		213		838
Selling, general and administrative expenses	41		47		47			135		45		49		50		54		198
Operating expenses	989		869		922			2,780		1,044		897		818		875		3,634
Equity in (earnings) losses of affiliates	64		(214	)	(297	)		(447	)	6		(22	)	(144	)	(162	)	(322	)
Other segment (income) expense, net	(9	)	(19	)	2			(26	)	(422	)	3		8		(2	)	(413	)
Proportional share of refining gross margins contributed by equity affiliates	227		409		488			1,124		184		191		305		339		1,019
Special items:
Certain tax impacts	—		—		(1	)		(1	)	—		—		—		(23	)	(23	)
Realized refining margins	1,712		2,560		2,678			6,950		1,525		1,714		2,152		1,879		7,270

Total processed inputs (thousands of barrels)	167,712		186,257		176,888			530,857		159,025		181,730		183,010		187,489		711,254
Adjusted total processed inputs (thousands of barrels)*	184,241		208,395		200,520			593,156		178,299		203,117		205,218		209,297		795,931

Net income (dollars per barrel)**	0.54		4.89		5.29			3.65		1.63		1.23		3.01		1.98		1.97
Realized refining margins (dollars per barrel)***	9.29		12.28		13.36			11.72		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 (loss) divided by total processed inputs.
*** Realized refining margins per barrel, as presented, are calculated using the underlying realized refining margin amounts, in dollars, divided by adjusted total processed inputs, in barrels. As such, recalculated per barrel amounts using the rounded margins and barrels presented may differ from the presented per barrel amounts due to rounding.

Page 13



RECONCILIATION OF NET INCOME TO REALIZED MARKETING FUEL MARGINS

	Millions of Dollars, Except as Indicated
	2018									2017
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD

UNITED STATES
Net income	99		140		191			430		81		132		118		64		395
Plus:
Income tax expense	33		47		65			145		48		79		73		33		233
Taxes other than income taxes*	(10	)	3		3			(4	)	1,278		1,375		1,409		1,419		5,481
Depreciation and amortization	4		3		3			10		4		3		3		4		14
Selling, general and administrative expenses	176		193		201			570		174		193		193		191		751
Equity in earnings of affiliates	(2	)	(2	)	(3	)		(7	)	—		(2	)	(2	)	(1	)	(5	)
Other operating revenues*	(84	)	(98	)	(104	)		(286	)	(1,354	)	(1,459	)	(1,499	)	(1,503	)	(5,815	)
Other segment income	—		—		—			—		(1	)	(14	)	—		—		(15	)
Realized marketing fuel margins	216		286		356			858		230		307		295		207		1,039

Total fuel sales volumes (thousands of barrels)	155,780		177,725		173,072			506,577		156,548		176,419		181,110		189,851		703,928

Net income (dollars per barrel)	0.64		0.79		1.10			0.85		0.52		0.75		0.65		0.34		0.56
Realized marketing fuel margins (dollars per barrel)**	1.39		1.61		2.05			1.69		1.47		1.74		1.63		1.09		1.48

INTERNATIONAL
Net income	32		66		94			192		38		56		44		38		176
Plus:
Income tax expense (benefit)	5		16		28			49		10		19		14		(2	)	41
Taxes other than income taxes*	(2	)	2		1			1		1,756		1,881		1,970		1,972		7,579
Depreciation and amortization	18		18		17			53		15		16		17		19		67
Selling, general and administrative expenses	70		71		66			207		60		63		70		71		264
Equity in earnings of affiliates	(18	)	(25	)	(22	)		(65	)	(19	)	(22	)	(22	)	(20	)	(83	)
Other operating revenues*	(7	)	(6	)	(7	)		(20	)	(1,760	)	(1,883	)	(1,973	)	(1,978	)	(7,594	)
Other segment (income) expense, net	(5	)	2		—			(3	)	(1	)	1		(1	)	3		2
Marketing Margins	93		144		177			414		99		131		119		103		452
Less: Margin for non-fuel related sales	12		14		10			36		11		11		10		10		42
Realized marketing fuel margins	81		130		167			378		88		120		109		93		410

Total fuel sales volumes (thousands of barrels)	24,534		24,717		25,441			74,692		23,885		24,229		24,596		24,636		97,346

Net income (dollars per barrel)	1.30		2.67		3.69			2.57		1.59		2.31		1.79		1.54		1.81
Realized marketing fuel margins (dollars per barrel)**	3.32		5.25		6.58			5.07		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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Phillips 66 - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - October 26, 2018

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