PHILLIPS 66 PARTNERS LP - FORM 8-K - EX-99.2 - July 31, 2020

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EX-99.1 - EX-99.1 - PHILLIPS 66 PARTNERS LPmlp-2020630erxex9911.htm
8-K - 8-K - PHILLIPS 66 PARTNERS LPmlp-20200731.htm

Exhibit 99.2
Phillips 66 Partners LP Earnings Release Supplemental Data
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STATEMENT OF INCOME
CONSOLIDATED
Millions of Dollars, Except as Indicated
20202019
1st Qtr2nd Qtr3rd Qtr4th QtrYTD1st Qtr2nd Qtr3rd Qtr4th QtrYTD
Revenues and Other Income
Operating revenues—related parties
258  236  494  296  256  262  283  1,097  
Operating revenues—third parties
9  5  14  6  7  8  8  29  
Equity in earnings of affiliates
136  104  240  119  137  139  140  535  
Gain from equity interest transfer—  84  84  —  —  —  —  —  
Other income
1  1  2  2  1  2  1  6  
Total revenues and other income
404  430  834  423  401  411  432  1,667  
Costs and Expenses
Operating and maintenance expenses88  84  172  139  85  91  90  405  
Depreciation30  31  61  29  29  30  32  120  
General and administrative expenses17  17  34  18  17  16  16  67  
Taxes other than income taxes11  10  21  11  9  10  9  39  
Interest and debt expense29  28  57  27  27  26  28  108  
Other expenses2  5  7  —  —  —  2  2  
Total costs and expenses177  175  352  224  167  173  177  741  
Income before income taxes227  255  482  199  234  238  255  926  
Income tax expense1  —  1  1  1  1  —  3  
Net income226  255  481  198  233  237  255  923  
Less: Preferred unitholders’ interest in net income
10  9  19  10  9  9  9  37  
Less: General partner’s interest in net income
—  —  —  69  71  —  —  140  
Limited partners’ interest in net income
216  246  462  119  153  228  246  746  
Adjusted EBITDA*
321  269  590  281  319  323  345  1,268  
Distributable Cash Flow*
269  218  487  226  254  255  254  989  
Net Income Per Limited Partner Unit (dollars)
Common units—basic0.95  1.07  2.02  0.96  1.23  1.18  1.08  4.45  
Common units—diluted0.93  1.05  1.99  0.92  1.15  1.15  1.06  4.29  
Weighted-Average Limited Partner Units Outstanding (thousands)
Common units—basic228,312  228,340  228,326  124,258  124,824  192,274  227,857  167,655  
Common units—diluted242,132  242,160  242,146  138,078  138,644  206,093  241,676  181,475  
* See note on the use of non-GAAP measures.

Page 1

Exhibit 99.2

Phillips 66 Partners LP Earnings Release Supplemental Data

SELECTED OPERATING DATA
CONSOLIDATED
20202019
1st Qtr2nd Qtr3rd Qtr4th QtrYTD1st Qtr2nd Qtr3rd Qtr4th QtrYTD
Wholly Owned Operating Data
Pipelines
Pipeline revenues (millions of dollars)
111  97  208  109  117  121  126  473  
Pipeline volumes(1) (thousands of barrels daily)
Crude oil941  806  873  959  1,000  998  1,005  991  
Refined petroleum products and NGL866  825  846  768  995  990  1,033  947  
Total
1,807  1,631  1,719  1,727  1,995  1,988  2,038  1,938  
Average pipeline revenue per barrel (dollars)
0.67  0.65  0.66  0.70  0.64  0.66  0.67  0.67  
Terminals
Terminal revenues (millions of dollars)
43  33  76  40  39  41  47  167  
Terminal throughput (thousands of barrels daily)
Crude oil(2)
460  380  420  471  456  493  459  470  
Refined petroleum products748  690  719  736  809  819  852  804  
Total
1,208  1,070  1,139  1,207  1,265  1,312  1,311  1,274  
Average terminaling revenue per barrel (dollars)
0.39  0.33  0.36  0.36  0.33  0.33  0.38  0.35  
Storage, processing and other revenues (millions of dollars)
113  111  224  153  107  108  118  486  
Total operating revenues (millions of dollars)
267  241  508  302  263  270  291  1,126  
Joint Venture Operating Data(3)
Crude oil, refined petroleum products and NGL (thousands of barrels daily)
838  942  890  687  772  786  793  760  
(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 2

Exhibit 99.2

Phillips 66 Partners LP Earnings Release Supplemental Data

CAPITAL EXPENDITURES AND INVESTMENTS
Millions of Dollars
20202019
1st Qtr2nd Qtr3rd Qtr4th QtrYTD1st Qtr2nd Qtr3rd Qtr4th QtrYTD
Capital Expenditures and Investments
Expansion196  311507  195  102  136  146  579  
Maintenance15  2843  15  12  25  28  80  
Adjusted capital spending*211  339550  210  114  161  174  659  
Capital expenditures and investments
funded by certain joint venture partners		23  3861  422  —  —  1  423  
Capital expenditures and investments234  377611  632  114  161  175  1,082  
* See note on the use of non-GAAP measures.




CASH DISTRIBUTIONS
20202019
1st Qtr2nd Qtr3rd Qtr4th QtrYTD1st Qtr2nd Qtr3rd Qtr4th QtrYTD
Cash Distribution Per Common Unit (Dollars)
0.875  0.875  1.750  0.845  0.855  0.865  0.875  3.440  
Cash Distributions* ($ Millions)
Common units—public51  51  102  47  49  50  51  197  
Common units—Phillips 66148  149  297  58  58  147  149  412  
General partner—Phillips 66—  —  —  69  70  —  —  139  
Total199  200  399  174  177  197  200  748  
Coverage Ratio†**
1.35  1.09  1.22  1.30  1.44  1.29  1.27  1.32  
 * Cash distributions declared attributable to the indicated periods.
** See note on the use of non-GAAP measures.
 † 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 3

Exhibit 99.2

Phillips 66 Partners LP Earnings Release Supplemental Data

NON-GAAP FINANCIAL MEASURES RECONCILIATION
CONSOLIDATED
Millions of Dollars
20202019
1st Qtr2nd Qtr3rd Qtr4th QtrYTD1st Qtr2nd Qtr3rd Qtr4th QtrYTD
Reconciliation to Net Income
Net income226  255  481  198  233  237  255  923  
Plus:
Depreciation30  31  61  29  29  30  32  120  
Net interest expense28  29  57  27  26  25  27  105  
Income tax expense1  —  1  1  1  1  —  3  
EBITDA**285  315  600  255  289  293  314  1,151  
Proportional share of equity affiliates’ net interest, taxes and depreciation and amortization
35  38  73  26  29  30  31  116  
Expenses indemnified or prefunded by
    Phillips 66
—  —  —  —  1  —  —  1  
Transaction costs associated with acquisitions1  —  1  —  —  —  —  —  
Gain from equity interest transfer—  (84) (84) —  —  —  —  —  
Adjusted EBITDA**321  269  590  281  319  323  345  1,268  
Plus:
Deferred revenue impacts*†
2  5  7  —  (4) —  (2) (6) 
Less:
Equity affiliate distributions less than (more than) proportional EBITDA
1  (10) (9) 9  13  9  25  56  
Maintenance capital expenditures†
15  28  43  9  12  25  28  74  
Net interest expense28  29  57  27  26  25  27  105  
Preferred unit distributions10  9  19  10  9  9  9  37  
Income taxes paid—  —  —  —  1  —  —  1  
Distributable cash flow **269  218  487  226  254  255  254  989  
 * Difference between cash receipts and revenue recognition.
** See note on the use of non-GAAP measures.
 † Excludes Merey Sweeny capital reimbursements and turnaround impacts.
Page 4

Exhibit 99.2

Phillips 66 Partners LP Earnings Release Supplemental Data

NON-GAAP FINANCIAL MEASURES RECONCILIATION (continued)
CONSOLIDATED
Millions of Dollars
20202019
1st Qtr2nd Qtr3rd Qtr4th QtrYTD1st Qtr2nd Qtr3rd Qtr4th QtrYTD
 Reconciliation to Net Cash Provided by Operating Activities
Net cash provided by operating activities274  215  489  205  276  276  259  1,016  
Plus:
Net interest expense28  29  57  27  26  25  27  105  
Income tax expense1  —  1  1  1  1  —  3  
Changes in working capital(12) (3) (15) 34  (11) (9) 20  34  
Undistributed equity earnings(4) (5) (9) (2) (1) (4) 10  3  
Gain from equity interest transfer—  84  84  —  —  —  —  —  
Deferred revenues and other liabilities—  2  2  (9) 1  2  1  (5) 
Other(2) (7) (9) (1) (3) 2  (3) (5) 
EBITDA**285  315  600  255  289  293  314  1,151  
Proportional share of equity affiliates’ net interest, taxes and depreciation and amortization
35  38  73  26  29  30  31  116  
Expenses indemnified or prefunded by
    Phillips 66
—  —  —  —  1  —  —  1  
Transaction costs associated with acquisitions1  —  1  —  —  —  —  —  
Gain from equity interest transfer—  (84) (84) —  —  —  —  —  
Adjusted EBITDA**321  269  590  281  319  323  345  1,268  
Plus:
Deferred revenue impacts*†
2  5  7  —  (4) —  (2) (6) 
Less:
Equity affiliate distributions less than (more than) proportional EBITDA
1  (10) (9) 9  13  9  25  56  
Maintenance capital expenditures†
15  28  43  9  12  25  28  74  
Net interest expense28  29  57  27  26  25  27  105  
Preferred unit distributions10  9  19  10  9  9  9  37  
Income taxes paid—  —  —  —  1  —  —  1  
Distributable cash flow**269  218  487  226  254  255  254  989  
 * Difference between cash receipts and revenue recognition.
** See note on the use of non-GAAP measures.
 † Excludes Merey Sweeny capital reimbursements and turnaround impacts.
Use of Non-GAAP Financial Information—This earnings release supplemental data includes the terms “EBITDA,” “adjusted EBITDA,” “distributable cash flow,” “coverage ratio,” and “adjusted capital spending.” These are non-GAAP financial measures. EBITDA and adjusted EBITDA are included to help facilitate comparisons of operating performance of the Partnership with other companies in our industry. EBITDA and distributable cash flow help facilitate an assessment of our ability to generate sufficient cash flow to make distributions to our partners. We believe that the presentation of EBITDA, adjusted EBITDA and distributable cash flow provides useful information to investors in assessing our financial condition and results of operations. Our coverage ratio is calculated as distributable cash flow divided by total cash distributions and is included to help indicate the Partnership’s ability to pay cash distributions from current earnings. Additionally, adjusted capital spending is a non-GAAP financial measure that demonstrates Phillips 66 Partners' net share of capital spending. The GAAP performance measure most directly comparable to EBITDA and adjusted EBITDA is net income. The GAAP liquidity measure most comparable to EBITDA and distributable cash flow is net cash provided by operating activities. The GAAP financial measure most comparable to our coverage ratio is calculated as net cash provided by operating activities divided by total cash distributions. The GAAP financial measure most comparable to adjusted capital spending is capital expenditures and investments. These non-GAAP financial measures should not be considered as alternatives to their comparable GAAP measures. They have important limitations as analytical tools because they exclude some but not all items that affect their corresponding GAAP measures. They should not be considered in isolation or as substitutes for analysis of our results as reported under GAAP. Additionally, because EBITDA, adjusted EBITDA, distributable cash flow, coverage ratio and adjusted capital spending may be defined differently by other companies in our industry, our definition of those measures may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.
Reconciliations of these non-GAAP measures to their comparable GAAP measures are included in this earnings release supplemental data. Additionally, the disaggregation of adjusted capital spending between expansion and maintenance is not a distinction recognized under GAAP. We provide such disaggregation because our partnership agreement requires that we treat expansion and maintenance capital differently for certain surplus determinations. Further, we generally fund expansion capital spending with both operating and financing cash flows and fund maintenance capital spending with operating cash flows. We believe this is an important distinction in our liquidity profile.
Page 5

PHILLIPS 66 PARTNERS LP Reports