Phillips 66 - FORM 8-K - EX-99.2

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EX-99.1 - EX-99.1 - Phillips 66	psx-2020930ex991.htm
8-K - 8-K - Phillips 66	psx-20201030.htm

Exhibit 99.2

Phillips 66 Earnings Release Supplemental Data


CONSOLIDATED STATEMENT OF OPERATIONS

	Millions of Dollars, Except as Indicated
	2020									2019
	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	20,878		10,913		15,929			47,720		23,103		27,847		27,218		29,125		107,293
Equity in earnings of affiliates	365		157		349			871		516		648		499		464		2,127
Net gain on dispositions	1		85		1			87		1		—		18		1		20
Other income	—		28		20			48		38		23		36		22		119
Total Revenues and Other Income	21,244		11,183		16,299			48,726		23,658		28,518		27,771		29,612		109,559

Costs and Expenses
Purchased crude oil and products	18,440		9,608		14,509			42,557		21,055		24,554		23,806		26,114		95,529
Operating expenses	1,341		1,026		1,016			3,383		1,307		1,165		1,206		1,396		5,074
Selling, general and administrative expenses	319		409		384			1,112		366		408		416		491		1,681
Depreciation and amortization	342		343		352			1,037		331		334		336		340		1,341
Impairments	3,006		—		1,140			4,146		1		2		853		5		861
Taxes other than income taxes	157		114		106			377		128		97		105		79		409
Accretion on discounted liabilities	6		5		6			17		6		5		6		6		23
Interest and debt expense	111		117		132			360		119		115		109		115		458
Foreign currency transaction (gains) losses	—		6		4			10		5		9		(9)		—		5
Total Costs and Expenses	23,722		11,628		17,649			52,999		23,318		26,689		26,828		28,546		105,381
Income (loss) before income taxes	(2,478)		(445)		(1,350)			(4,273)		340		1,829		943		1,066		4,178
Income tax expense (benefit)	(51)		(378)		(624)			(1,053)		70		325		150		256		801
Net Income (Loss)	(2,427)		(67)		(726)			(3,220)		270		1,504		793		810		3,377
Less: net income attributable to noncontrolling interests	69		74		73			216		66		80		81		74		301
Net Income (Loss) Attributable to Phillips 66	(2,496)		(141)		(799)			(3,436)		204		1,424		712		736		3,076


Net Income (Loss) Attributable to Phillips 66 Per Share of Common Stock (dollars)
Basic	(5.66)		(0.33)		(1.82)			(7.83)		0.44		3.13		1.58		1.65		6.80
Diluted	(5.66)		(0.33)		(1.82)			(7.83)		0.44		3.12		1.58		1.64		6.77

Weighted-Average Common Shares Outstanding (thousands)
Basic	441,345		438,756		438,916			439,670		457,599		453,681		449,005		445,332		451,364
Diluted	441,345		438,756		438,916			439,670		459,289		455,585		451,001		447,835		453,888






Effective tax rate (%)	2.1	%	84.9	%	46.2	%		24.6	%	20.6	%	17.8	%	15.9	%	24.0	%	19.2	%
Adjusted effective tax rate (%)	4.4	%	40.9	%	125.7	%		257.7	%	20.7	%	20.2	%	20.6	%	23.6	%	21.1	%

Page 1

Phillips 66 Earnings Release Supplemental Data


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

	Millions of Dollars
	2020					2019
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD

Midstream	(702)	324	146		(232)	316	423	(460)	405	684
Chemicals	169	42	231		442	227	275	227	150	879
Refining	(2,261)	(878)	(1,903)		(5,042)	(198)	983	856	345	1,986
Marketing and Specialties	513	286	415		1,214	205	353	498	377	1,433
Corporate and Other	(197)	(219)	(239)		(655)	(210)	(205)	(178)	(211)	(804)
Income (loss) before income taxes	(2,478)	(445)	(1,350)		(4,273)	340	1,829	943	1,066	4,178
Less: income tax expense (benefit)	(51)	(378)	(624)		(1,053)	70	325	150	256	801
Net Income (Loss)	(2,427)	(67)	(726)		(3,220)	270	1,504	793	810	3,377
Less: net income attributable to noncontrolling interests	69	74	73		216	66	80	81	74	301
Net Income (Loss) Attributable to Phillips 66	(2,496)	(141)	(799)		(3,436)	204	1,424	712	736	3,076


























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

	Millions of Dollars
	2020					2019
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Midstream
Transportation	200	130	202		532	203	245	248	250	946
NGL and Other	179	83	102		364	90	143	169	120	522
DCP Midstream	81	32	50		163	23	35	23	35	116
Total Midstream	460	245	354		1,059	316	423	440	405	1,584
Chemicals	193	89	132		414	227	275	269	173	944
Refining
Atlantic Basin/Europe	(196)	(220)	(197)		(613)	(7)	258	279	61	591
Gulf Coast	(173)	(356)	(389)		(918)	(118)	222	184	76	364
Central Corridor	223	(113)	(129)		(19)	56	520	408	333	1,317
West Coast	(255)	(178)	(255)		(688)	(150)	(17)	(32)	(125)	(324)
Total Refining	(401)	(867)	(970)		(2,238)	(219)	983	839	345	1,948
Marketing and Specialties
Marketing and Other	434	259	366		1,059	138	294	440	237	1,109
Specialties	54	34	51		139	67	59	58	50	234
Total Marketing and Specialties	488	293	417		1,198	205	353	498	287	1,343
Corporate and Other	(197)	(224)	(213)		(634)	(210)	(205)	(178)	(211)	(804)
Adjusted income (loss) before income taxes	543	(464)	(280)		(201)	319	1,829	1,868	999	5,015
Less: adjusted income tax expense (benefit)	24	(190)	(352)		(518)	66	370	385	236	1,057
Adjusted Net Income (Loss)	519	(274)	72		317	253	1,459	1,483	763	3,958
Less: adjusted net income attributable to noncontrolling interests	69	50	73		192	66	80	81	74	301
Adjusted Net Income (Loss) Attributable to Phillips 66	450	(324)	(1)		125	187	1,379	1,402	689	3,657

Page 2

Phillips 66 Earnings Release Supplemental Data









































































SPECIAL ITEMS INCLUDED IN INCOME (LOSS) BEFORE INCOME TAXES BY SEGMENT
AND NET INCOME (LOSS) ATTRIBUTABLE TO PHILLIPS 66

	Millions of Dollars
	2020					2019
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Midstream


Impairments	(1,161)	—	(204)		(1,365)	—	—	(853)	—	(853)
Impairments by equity affiliates	—	—	—		—	—	—	(47)	—	(47)
Pension settlement expense	—	(5)	(3)		(8)	—	—	—	—	—
Hurricane-related costs	—	—	(1)		(1)	—	—	—	—	—
Lower-of-cost-or-market inventory adjustments	(1)	—	—		(1)	—	—	—	—	—
Asset dispositions	—	84	—		84	—	—	—	—	—
Total Midstream	(1,162)	79	(208)		(1,291)	—	—	(900)	—	(900)

Chemicals
Impairments by equity affiliates	—	(15)	—		(15)	—	—	—	—	—
Hurricane-related costs	—	—	(2)		(2)	—	—	—	—	—
Lower-of-cost-or-market inventory adjustments	(24)	(32)	101		45	—	—	(42)	(23)	(65)
Total Chemicals	(24)	(47)	99		28	—	—	(42)	(23)	(65)

Refining
Impairments	(1,845)	—	(910)		(2,755)	—	—	—	—	—
Pending claims and settlements	—	—	—		—	21	—	—	—	21
Pension settlement expense	—	(26)	(12)		(38)	—	—	—	—	—

Hurricane-related costs	—	—	(11)		(11)	—	—	—	—	—

Lower-of-cost-or-market inventory adjustments	(15)	15	—		—	—	—	—	—	—
Asset dispositions	—	—	—		—	—	—	17	—	17
Total Refining	(1,860)	(11)	(933)		(2,804)	21	—	17	—	38

Marketing and Specialties

Pending claims and settlements	37	—	—		37	—	—	—	—	—
Certain tax impacts	—	—	—		—	—	—	—	90	90
Pension settlement expense	—	(4)	(1)		(5)	—	—	—	—	—
Hurricane-related costs	—	—	(1)		(1)	—	—	—	—	—
Lower-of-cost-or-market inventory adjustments	(12)	(3)	—		(15)	—	—	—	—	—
Total Marketing and Specialties	25	(7)	(2)		16	—	—	—	90	90

Corporate and Other
Impairments	—	—	(25)		(25)	—	—	—	—	—
Certain tax impacts	—	8	—		8	—	—	—	—	—


Pension settlement expense	—	(3)	(1)		(4)	—	—	—	—	—


Total Corporate and Other	—	5	(26)		(21)	—	—	—	—	—

Total Special Items (Pre-tax)	(3,021)	19	(1,070)		(4,072)	21	—	(925)	67	(837)

Less: Income Tax Expense (Benefit)
Tax impact of pre-tax special items*	(75)	(208)	(262)		(545)	4	—	(235)	17	(214)
Other tax impacts	—	20	(10)		10	—	(45)	—	3	(42)

Total Income Tax Expense (Benefit)	(75)	(188)	(272)		(535)	4	(45)	(235)	20	(256)

Less: Income Attributable to Noncontrolling Interests
Asset dispositions	—	24	—		24	—	—	—	—	—


Total: Income Attributable to Noncontrolling Interests	—	24	—		24	—	—	—	—	—

Total Phillips 66 Special Items (After-tax)	(2,946)	183	(798)		(3,561)	17	45	(690)	47	(581)

* We generally tax effect taxable U.S.-based special items using a combined federal and state annual statutory income tax rate of approximately 25%. Taxable special items attributable to foreign locations likewise use a local statutory income tax rate. Nontaxable events reflect zero income tax. These events include, but are not limited to, most goodwill impairments, transactions legislatively exempt from income tax, transactions related to entities for which we have made an assertion that the undistributed earnings are permanently reinvested, or transactions occurring in jurisdictions with a valuation allowance.

SPECIAL ITEMS INCLUDED IN INCOME (LOSS) BEFORE INCOME TAXES BY BUSINESS LINES/REGIONS


	Millions of Dollars
	2020					2019
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD

Midstream
Transportation	—	84	(205)		(121)	—	—	—	—	—
NGL and Other	—	(5)	(3)		(8)	—	—	—	—	—
DCP Midstream	(1,162)	—	—		(1,162)	—	—	(900)	—	(900)
Total Midstream	(1,162)	79	(208)		(1,291)	—	—	(900)	—	(900)

Refining
Atlantic Basin/Europe	(441)	(7)	(2)		(450)	—	—	17	—	17
Gulf Coast	(670)	(9)	(16)		(695)	—	—	—	—	—
Central Corridor	(450)	9	(3)		(444)	21	—	—	—	21
West Coast	(299)	(4)	(912)		(1,215)	—	—	—	—	—
Total Refining	(1,860)	(11)	(933)		(2,804)	21	—	17	—	38

Marketing and Specialties
Marketing and Other	37	(4)	(1)		32	—	—	—	90	90
Specialties	(12)	(3)	(1)		(16)	—	—	—	—	—
Total Marketing and Specialties	25	(7)	(2)		16	—	—	—	90	90

Page 3

Phillips 66 Earnings Release Supplemental Data


CASH FLOW INFORMATION

	Millions of Dollars
	2020					2019
	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 (loss)	(2,427)	(67)	(726)		(3,220)	270	1,504	793	810	3,377
Depreciation and amortization	342	343	352		1,037	331	334	336	340	1,341
Impairments	3,006	—	1,140		4,146	1	2	853	5	861
Accretion on discounted liabilities	6	5	6		17	6	5	6	6	23
Deferred income taxes	(47)	26	23		2	179	74	(138)	68	183
Undistributed equity earnings	(4)	302	(44)		254	95	(139)	19	(118)	(143)
Net gain on dispositions	(1)	(85)	(1)		(87)	(1)	—	(18)	(1)	(20)

Other	(139)	146	45		52	42	(101)	(38)	113	16
Net working capital changes	(519)	94	(304)		(729)	(1,401)	251	(151)	471	(830)
Net Cash Provided by (Used in) Operating Activities	217	764	491		1,472	(478)	1,930	1,662	1,694	4,808

Cash Flows From Investing Activities
Capital expenditures and investments	(923)	(939)	(552)		(2,414)	(1,097)	(631)	(867)	(1,278)	(3,873)
Return of investments in equity affiliates	38	50	51		139	21	14	20	16	71
Proceeds from asset dispositions	1	—	2		3	82	1	1	2	86
Advances/loans—related parties	(8)	(223)	(20)		(251)	—	(95)	—	(3)	(98)
Collection of advances/loans—related parties	—	44	—		44	—	95	—	—	95

Other	15	(79)	(23)		(87)	(18)	42	—	7	31
Net Cash Used in Investing Activities	(877)	(1,147)	(542)		(2,566)	(1,012)	(574)	(846)	(1,256)	(3,688)

Cash Flows From Financing Activities
Issuance of debt	1,199	2,031	75		3,305	725	135	898	25	1,783
Repayment of debt	(7)	(534)	(5)		(546)	(592)	(5)	(407)	(303)	(1,307)
Issuance of common stock	6	—	—		6	8	1	6	17	32
Repurchase of common stock	(443)	—	—		(443)	(344)	(455)	(439)	(412)	(1,650)
Dividends paid on common stock	(396)	(393)	(393)		(1,182)	(364)	(406)	(402)	(398)	(1,570)
Distributions to noncontrolling interests	(61)	(66)	(74)		(201)	(56)	(61)	(59)	(65)	(241)
Net proceeds from issuance of Phillips 66 Partners LP common units	2	—	—		2	32	10	91	40	173
Other	(24)	9	(7)		(22)	307	(6)	(19)	(13)	269
Net Cash Provided by (Used in) Financing Activities	276	1,047	(404)		919	(284)	(787)	(331)	(1,109)	(2,511)

Effect of Exchange Rate Changes on Cash and Cash Equivalents	(9)	5	27		23	8	(3)	(36)	17	(14)

Net Change in Cash and Cash Equivalents	(393)	669	(428)		(152)	(1,766)	566	449	(654)	(1,405)
Cash and cash equivalents at beginning of period	1,614	1,221	1,890		1,614	3,019	1,253	1,819	2,268	3,019
Cash and Cash Equivalents at End of Period	1,221	1,890	1,462		1,462	1,253	1,819	2,268	1,614	1,614

CAPITAL PROGRAM

	Millions of Dollars
	2020					2019
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Consolidated Capital Expenditures and Investments
Midstream	580	597	315		1,492	419	359	524	567	1,869
Chemicals	—	—	—		—	—	—	—	—	—
Refining	245	164	168		577	194	197	254	356	1,001
Marketing and Specialties	25	86	28		139	19	23	34	298	374
Corporate and Other	50	54	38		142	43	52	55	56	206
Adjusted Capital Spending	900	901	549		2,350	675	631	867	1,277	3,450
Capital expenditures and investments funded by certain joint venture partners (Midstream)	23	38	3		64	422	—	—	1	423
Consolidated Capital Expenditures and Investments	923	939	552		2,414	1,097	631	867	1,278	3,873

Proportional Share of Selected Equity Affiliates Capital Expenditures and Investments*
DCP Midstream (Midstream)	46	44	12		102	150	128	77	117	472
CPChem (Chemicals)	126	13	65		204	103	72	77	130	382
WRB (Refining)	37	34	39		110	37	44	54	40	175
Selected Equity Affiliates	209	91	116		416	290	244	208	287	1,029









* Represents 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 (WRB).

Page 4

Phillips 66 Earnings Release Supplemental Data


MIDSTREAM

	Millions of Dollars, Except as Indicated
	2020					2019
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Income (Loss) before Income Taxes
Transportation	200	214	(3)		411	203	245	248	250	946
NGL and Other	179	78	99		356	90	143	169	120	522
DCP Midstream	(1,081)	32	50		(999)	23	35	(877)	35	(784)
Income (Loss) before Income Taxes	(702)	324	146		(232)	316	423	(460)	405	684







Adjusted EBITDA*
PSXP**	312	261	305		878	274	307	313	336	1,230
Other Midstream	193	80	119		392	133	197	223	155	708
Transportation and NGL and Other	505	341	424		1,270	407	504	536	491	1,938
DCP Midstream	139	87	108		334	67	81	79	96	323
Adjusted EBITDA	644	428	532		1,604	474	585	615	587	2,261
* See reconciliation of income (loss) before income taxes to adjusted EBITDA.
** Does not include certain PSXP adjustments made for PSXP stand-alone reporting purposes.

Equity in Earnings (Losses) of Affiliates
Transportation	98	70	103		271	103	124	128	128	483
NGL and Other	51	49	44		144	51	53	51	48	203
DCP Midstream	80	32	49		161	23	34	(23)	34	68
Total	229	151	196		576	177	211	156	210	754

Depreciation and Amortization*
Transportation	38	38	41		117	36	37	40	39	152
NGL and Other	39	39	42		120	37	38	38	39	152
DCP Midstream	—	—	—		—	—	—	—	—	—
Total	77	77	83		237	73	75	78	78	304
* Excludes D&A of all equity affiliates.

Operating and SG&A Expenses*
Transportation	188	186	185		559	172	173	183	196	724
NGL and Other	68	71	71		210	128	76	76	83	363
DCP Midstream	—	—	(1)		(1)	—	—	—	—	—
Total	256	257	255		768	300	249	259	279	1,087
* Excludes operating and SG&A expenses of all equity affiliates.

Transportation Volumes (MB/D)
Pipelines*	3,178	2,840	3,076		3,032	3,176	3,417	3,443	3,544	3,396
Terminals**	3,148	2,883	2,966		2,999	3,063	3,261	3,381	3,548	3,315
* Pipelines represent the sum of volumes transported through each separately tariffed consolidated pipeline segment.
** Terminals include Bayway and Ferndale crude oil rail rack volumes.

PSX Other Volumes
NGL Fractionated (MB/D)*	198	170	217		195	234	232	203	227	224
* Excludes DCP Midstream.

100% DCP Midstream, LLC Results
Net Income (Loss) Attributable to Owners*	50	(348)	58		(240)	45	68	(47)	12	78
* Includes impairment charges of $159 million and $650 million in the first and second quarters of 2020, respectively.

Depreciation and Amortization	99	93	93		285	103	101	100	100	404

Operating and SG&A Expenses	202	212	212		626	246	257	257	267	1,027

Net Interest Expense*	78	71	77		226	70	75	79	84	308
* Net of interest income.

Capital Expenditures and Investments	92	87	24		203	300	256	154	233	943

Selected DCP Operating Statistics
Wellhead Volume (Bcf/D)	5.0	4.5	4.5		4.7	5.0	4.9	5.0	5.0	5.0
NGL Production (MB/D)	396	374	414		395	428	423	409	409	417

Weighted-Average NGL Price*

DCP Midstream ($/gal)	0.39	0.32	0.44		0.38	0.60	0.51	0.44	0.50	0.51
* Based on index prices from the Mont Belvieu market hub, which are weighted by NGL component mix.

MLP Distributions*
GP Distribution from PSXP to Phillips 66**	—	—	—		—	69	70	—	—	139
LP Distribution from PSXP to Phillips 66	148	149	148		445	58	58	147	149	412
GP Distribution from DCP Midstream, LP to DCP Midstream***	—	—	—		—	43	43	43	—	129
LP Distribution from DCP Midstream, LP to DCP Midstream***	46	46	****		92	41	41	41	92	215

* Cash distributions declared attributable to general partner interest, common unit ownership and incentive distribution rights (IDRs). These distributions are eliminated in the respective sponsors consolidated financial statements.
** On August 1, 2019, PSXP eliminated its IDRs and 2% economic general partner interest, therefore, no distributions were made to the general partner interest after August 1, 2019.
*** Represents 100% of DCP Midstream's distributions from DCP Midstream, LP (DCP Partners). On November 6, 2019, DCP Partners completed a transaction to eliminate all general partner economic interests in DCP Partners and IDRs, therefore, no distributions were made to the general partner interest after November 6, 2019.
**** Pending DCP Midstream release.

Page 5

Phillips 66 Earnings Release Supplemental Data


MIDSTREAM (continued)

	Millions of Dollars
	2020					2019
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Reconciliation of Midstream Income (Loss) before Income Taxes to Adjusted EBITDA
Income (loss) before income taxes	(702)	324	146		(232)	316	423	(460)	405	684
Plus:


Depreciation and amortization	77	77	83		237	73	75	78	78	304
EBITDA	(625)	401	229		5	389	498	(382)	483	988

Special Item Adjustments (pre-tax):


Impairments	1,161	—	204		1,365	—	—	853	—	853
Impairments by equity affiliates	—	—	—		—	—	—	47	—	47
Pension settlement expense	—	5	3		8	—	—	—	—	—
Hurricane-related costs	—	—	1		1	—	—	—	—	—
Lower-of-cost-or-market inventory adjustments	1	—	—		1	—	—	—	—	—
Asset dispositions	—	(84)	—		(84)	—	—	—	—	—
EBITDA, Adjusted for Special Items	537	322	437		1,296	389	498	518	483	1,888

Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes	—	—	1		1	—	—	—	—	—
Proportional share of selected equity affiliates net interest	39	36	43		118	30	30	36	39	135
Proportional share of selected equity affiliates depreciation and amortization	68	70	71		209	55	57	61	65	238
Adjusted EBITDA attributable to joint venture partners' noncontrolling interests	—	—	(20)		(20)	—	—	—	—	—
Adjusted EBITDA	644	428	532		1,604	474	585	615	587	2,261


Adjusted EBITDA by Business Line
100% PSXP Results
Income before income taxes	227	255	217		699	199	234	238	255	926
Plus:

Net interest expense	28	29	31		88	27	26	25	27	105
Depreciation and amortization	30	31	35		96	29	29	30	32	120
EBITDA	285	315	283		883	255	289	293	314	1,151

Special Item Adjustments (pre-tax):

Hurricane-related costs*	—	—	1		1	—	—	—	—	—
Asset dispositions	—	(84)	—		(84)	—	—	—	—	—


EBITDA, Adjusted for Special Items**	285	231	284		800	255	289	293	314	1,151

Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes	—	—	1		1	—	—	—	—	—
Proportional share of selected equity affiliates net interest	9	9	12		30	7	6	7	7	27
Proportional share of selected equity affiliates depreciation and amortization	18	21	24		63	12	12	13	15	52
Adjusted EBITDA attributable to joint venture partner's noncontrolling interest	—	—	(16)		(16)	—	—	—	—	—
Adjusted EBITDA**	312	261	305		878	274	307	313	336	1,230
* Represents a special item adjustment made for PSX reporting purposes only.
** Does not include certain PSXP adjustments made for PSXP stand-alone reporting purposes.

Page 6

Phillips 66 Earnings Release Supplemental Data


MIDSTREAM (continued)

	Millions of Dollars
	2020					2019
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Total Transportation and NGL and Other
Income before income taxes	379	292	96		767	293	388	417	370	1,468
Plus:


Depreciation and amortization	77	77	83		237	73	75	78	78	304
EBITDA*	456	369	179		1,004	366	463	495	448	1,772

Special Item Adjustments (pre-tax):



Impairments	—	—	204		204	—	—	—	—	—
Pension settlement expense	—	5	3		8	—	—	—	—	—
Hurricane-related costs	—	—	1		1	—	—	—	—	—
Asset dispositions	—	(84)	—		(84)	—	—	—	—	—
EBITDA, Adjusted for Special Items*	456	290	387		1,133	366	463	495	448	1,772

Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes	—	—	1		1	—	—	—	—	—
Proportional share of selected equity affiliates net interest	17	16	21		54	15	14	14	15	58
Proportional share of selected equity affiliates depreciation and amortization	32	35	35		102	26	27	27	28	108
Adjusted EBITDA attributable to joint venture partners' noncontrolling interests	—	—	(20)		(20)	—	—	—	—	—
Adjusted EBITDA*	505	341	424		1,270	407	504	536	491	1,938
* Includes PSXP results. Does not include certain PSXP adjustments made for PSXP stand-alone reporting purposes.


DCP Midstream
Income (loss) before income taxes	(1,081)	32	50		(999)	23	35	(877)	35	(784)
Plus:
None	—	—	—		—	—	—	—	—	—
EBITDA	(1,081)	32	50		(999)	23	35	(877)	35	(784)

Special Item Adjustments (pre-tax):
Impairments	1,161	—	—		1,161	—	—	853	—	853
Impairments by equity affiliates	—	—	—		—	—	—	47	—	47
Lower-of-cost-or-market inventory adjustments	1	—	—		1	—	—	—	—	—
EBITDA, Adjusted for Special Items	81	32	50		163	23	35	23	35	116

Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes	—	—	—		—	—	—	—	—	—
Proportional share of selected equity affiliates net interest	22	20	22		64	15	16	22	24	77
Proportional share of selected equity affiliates depreciation and amortization	36	35	36		107	29	30	34	37	130
Adjusted EBITDA*	139	87	108		334	67	81	79	96	323
* Proportional share of selected equity affiliates is net of noncontrolling interests.

Page 7

Phillips 66 Earnings Release Supplemental Data


CHEMICALS

	Millions of Dollars, Except as Indicated
	2020									2019
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD

Income before Income Taxes	169		42		231			442		227		275		227		150		879

Equity in Earnings of Affiliate	166		39		229			434		225		274		224		147		870

100% CPChem Results
Net Income (Loss), excludes parent company income tax related to CPChem's earnings
Olefins and Polyolefins	354		142		488			984		434		525		417		262		1,638
Specialties, Aromatics and Styrenics	9		—		23			32		49		70		73		70		262
Corporate and Other	(26)		(59)		(54)			(139)		(34)		(36)		(34)		(36)		(140)
Total	337		83		457			877		449		559		456		296		1,760

Income (Loss) before Income Taxes
Olefins and Polyolefins	360		142		498			1,000		446		536		430		266		1,678
Specialties, Aromatics and Styrenics	10		3		24			37		57		78		78		74		287
Corporate and Other	(26)		(59)		(54)			(139)		(34)		(36)		(33)		(36)		(139)
Total	344		86		468			898		469		578		475		304		1,826

Depreciation and Amortization	148		144		146			438		146		139		140		150		575

Net Interest Expense*	16		24		23			63		20		17		19		16		72
* Net of interest income.

Investing Cash Flows—Outflows/(Inflows)
Capital Expenditures and Investments	252		25		130			407		206		144		153		260		763

Advance Repayments from Equity Companies	(21)		—		—			(21)		(26)		(28)		(9)		—		(63)
Return of Investments from Equity Companies	(25)		—		—			(25)		—		—		—		—		—







Olefins and Polyolefins Capacity Utilization (%)	98	%	103	%	94	%		98	%	98	%	95	%	97	%	97	%	97	%

Market Indicators*
U.S. Industry Prices
Ethylene, Average Acquisition Contract (cents/lb)	19.7		17.1		23.8			20.2		22.4		19.1		23.9		25.2		22.7
HDPE Blow Molding, Domestic Spot (cents/lb)	40.0		35.5		45.6			40.4		52.7		51.1		45.4		41.2		47.6

U.S. Industry Costs
Ethylene, Cash Cost Weighted Average Feed (cents/lb)	9.0		12.0		13.2			11.4		16.4		11.9		9.5		11.8		12.3
HDPE Blow Molding, Total Cash Cost (cents/lb)	32.9		30.3		37.1			33.4		35.5		32.0		36.7		38.2		35.6

Ethylene to High-Density Polyethylene Chain Cash Margin (cents/lb)	17.8		10.3		19.0			15.7		23.2		26.4		23.1		16.5		22.4
* Source: IHS, Inc.

Reconciliation of Chemicals Income before Income Taxes to Adjusted EBITDA
Income before income taxes	169		42		231			442		227		275		227		150		879
Plus:
None	—		—		—			—		—		—		—		—		—
EBITDA	169		42		231			442		227		275		227		150		879

Special Item Adjustments (pre-tax):
Impairments by equity affiliates	—		15		—			15		—		—		—		—		—
Hurricane-related costs	—		—		2			2		—		—		—		—		—
Lower-of-cost-or-market inventory adjustments	24		32		(101)			(45)		—		—		42		23		65
EBITDA, Adjusted for Special Items	193		89		132			414		227		275		269		173		944

Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes	13		5		14			32		22		24		23		10		79
Proportional share of selected equity affiliates net interest	9		11		12			32		13		8		10		9		40
Proportional share of selected equity affiliates depreciation and amortization	103		103		104			310		105		106		104		100		415
Adjusted EBITDA	318		208		262			788		367		413		406		292		1,478

Page 8

Phillips 66 Earnings Release Supplemental Data


REFINING

	Millions of Dollars, Except as Indicated
	2020					2019
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Income (Loss) before Income Taxes
Atlantic Basin/Europe	(637)	(227)	(199)		(1,063)	(7)	258	296	61	608
Gulf Coast	(843)	(365)	(405)		(1,613)	(118)	222	184	76	364
Central Corridor	(227)	(104)	(132)		(463)	77	520	408	333	1,338
West Coast	(554)	(182)	(1,167)		(1,903)	(150)	(17)	(32)	(125)	(324)
Income (Loss) before Income Taxes	(2,261)	(878)	(1,903)		(5,042)	(198)	983	856	345	1,986








Income (Loss) before Income Taxes ($/BBL)
Atlantic Basin/Europe	(15.41)	(5.80)	(4.61)		(8.60)	(0.17)	5.04	5.93	1.16	3.11
Gulf Coast	(13.16)	(5.98)	(7.86)		(9.13)	(1.80)	2.88	2.46	1.00	1.24
Central Corridor	(9.72)	(5.01)	(5.35)		(6.73)	3.22	19.81	15.26	12.61	12.95
West Coast	(19.87)	(7.07)	(38.12)		(22.59)	(4.89)	(0.52)	(0.93)	(3.89)	(2.49)
Worldwide	(14.44)	(5.99)	(12.69)		(11.12)	(1.22)	5.25	4.60	1.84	2.75

Realized Refining Margins ($/BBL)*
Atlantic Basin/Europe	2.38	1.53	1.65		1.86	7.76	10.85	11.48	7.06	9.33
Gulf Coast	6.76	0.36	(0.61)		2.40	5.44	8.20	8.34	7.45	7.42
Central Corridor	13.50	5.78	4.46		8.09	10.23	17.84	15.99	14.92	14.91
West Coast	4.80	5.05	2.23		3.94	6.25	9.94	10.11	10.22	9.18
Worldwide	7.11	2.60	1.78		3.91	7.23	11.37	11.18	9.50	9.91
* See note on the use of non-GAAP measures. Also, reconciliations of income (loss) before income taxes to realized refining margin for each period and by region are included in the "Realized Margin Non-GAAP Reconciliations" section.

Equity in Earnings (Losses) of Affiliates
Atlantic Basin/Europe	(2)	(3)	(2)		(7)	(3)	(3)	(3)	(2)	(11)
Gulf Coast	1	1	(1)		1	—	(2)	1	(1)	(2)
Central Corridor	(51)	(79)	(118)		(248)	84	133	69	45	331
West Coast	—	—	—		—	—	—	—	—	—
Total	(52)	(81)	(121)		(254)	81	128	67	42	318

Depreciation and Amortization*
Atlantic Basin/Europe	51	49	50		150	50	49	49	50	198
Gulf Coast	71	75	75		221	67	68	66	67	268
Central Corridor	34	33	33		100	33	34	34	34	135
West Coast	65	63	64		192	62	63	66	62	253
Total	221	220	222		663	212	214	215	213	854
* Excludes D&A of all equity affiliates.

Operating and SG&A Expenses*
Atlantic Basin/Europe	207	202	186		595	240	211	218	233	902
Gulf Coast	499	287	269		1,055	382	330	352	408	1,472
Central Corridor	142	127	118		387	146	141	131	154	572
West Coast	293	225	244		762	254	257	290	373	1,174
Total	1,141	841	817		2,799	1,022	939	991	1,168	4,120
* Excludes operating and SG&A expenses of all equity affiliates.

Turnaround Expense, included in Operating and SG&A Expenses*
Atlantic Basin/Europe	16	9	11		36	20	13	17	15	65
Gulf Coast	240	13	8		261	90	29	44	94	257
Central Corridor	15	3	6		24	25	8	9	10	52
West Coast	58	13	16		87	13	17	50	113	193
Total	329	38	41		408	148	67	120	232	567
* Excludes turnaround expense of all equity affiliates.

Taxes Other than Income Taxes
Atlantic Basin/Europe	19	15	14		48	15	11	12	14	52
Gulf Coast	37	25	30		92	23	16	23	11	73
Central Corridor	17	14	11		42	13	10	10	7	40
West Coast	31	22	16		69	24	21	23	17	85
Total	104	76	71		251	75	58	68	49	250

Foreign Currency Gains (Losses) Pre-Tax	1	(5)	1		(3)	(5)	(7)	10	2	—

Refining—Equity Affiliate Information
Equity in earnings (losses) of affiliates	(52)	(81)	(121)		(254)	81	128	67	42	318
Less: Share of equity affiliate gross margin included in Realized Refining Margin and other equity affiliate-related costs*	(156)	(72)	(70)		(298)	(277)	(309)	(273)	(237)	(1,096)
Equity affiliate-related expenses not included in Realized Refining Margins	(208)	(153)	(191)		(552)	(196)	(181)	(206)	(195)	(778)
Regional Totals
Atlantic Basin/Europe	(11)	(16)	(28)		(55)	(13)	(14)	(7)	—	(34)
Gulf Coast	2	—	(1)		1	—	(2)	1	(1)	(2)
Central Corridor	(199)	(137)	(162)		(498)	(183)	(165)	(200)	(194)	(742)
Total	(208)	(153)	(191)		(552)	(196)	(181)	(206)	(195)	(778)
* Other costs associated with equity affiliates which do not flow through equity earnings.

Page 9

Phillips 66 Earnings Release Supplemental Data


REFINING (continued)

	2020									2019
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Reconciliation of Refining Income (Loss) before Income Taxes to Adjusted EBITDA ($ Millions)
Income (loss) before income taxes	(2,261)		(878)		(1,903)			(5,042)		(198)		983		856		345		1,986
Plus:

Depreciation and amortization	221		220		222			663		212		214		215		213		854
EBITDA	(2,040)		(658)		(1,681)			(4,379)		14		1,197		1,071		558		2,840

Special Item Adjustments (pre-tax):
Impairments	1,845		—		910			2,755		—		—		—		—		—
Pending claims and settlements	—		—		—			—		(21)		—		—		—		(21)
Pension settlement expense	—		26		12			38		—		—		—		—		—

Hurricane-related costs	—		—		11			11		—		—		—		—		—

Lower-of-cost-or-market inventory adjustments	15		(15)		—			—		—		—		—		—		—
Asset dispositions	—		—		—			—		—		—		(17)		—		(17)
EBITDA, Adjusted for Special Items	(180)		(647)		(748)			(1,575)		(7)		1,197		1,054		558		2,802

Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes	—		(1)		—			(1)		—		—		1		(1)		—
Proportional share of selected equity affiliates net interest	—		1		1			2		(1)		(1)		(1)		—		(3)
Proportional share of selected equity affiliates depreciation and amortization	78		72		69			219		71		69		70		71		281
Adjusted EBITDA	(102)		(575)		(678)			(1,355)		63		1,265		1,124		628		3,080

Operating Statistics
Atlantic Basin/Europe*
Crude Oil Charge Input (MB/D)	437		402		432			424		427		519		509		531		497
Total Processed Inputs (MB/D)	454		430		469			451		463		562		542		574		536
Crude Oil Capacity Utilization (%)	81	%	75	%	81	%		79	%	80	%	97	%	95	%	99	%	92	%
Clean Product Yield (%)	83	%	82	%	83	%		83	%	86	%	88	%	87	%	90	%	88	%
* Includes our proportionate share of a refinery complex in Karlsruhe, Germany.

Gulf Coast
Crude Oil Charge Input (MB/D)	645		609		506			586		654		757		729		759		725
Total Processed Inputs (MB/D)	704		671		560			645		727		849		815		827		805
Crude Oil Capacity Utilization (%)	84	%	79	%	66	%		76	%	85	%	99	%	95	%	99	%	95	%
Clean Product Yield (%)	71	%	79	%	82	%		77	%	80	%	81	%	78	%	80	%	80	%

Central Corridor*
Crude Oil Charge Input (MB/D)	471		386		455			437		445		521		517		509		498
Total Processed Inputs (MB/D)	487		396		467			450		466		538		531		526		515
Crude Oil Capacity Utilization (%)	89	%	73	%	86	%		82	%	86	%	101	%	100	%	99	%	97	%
Clean Product Yield (%)	88	%	87	%	89	%		88	%	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)	279		263		311			285		307		317		351		318		323
Total Processed Inputs (MB/D)	306		283		333			307		341		359		375		349		356
Crude Oil Capacity Utilization (%)	77	%	72	%	85	%		78	%	84	%	87	%	97	%	87	%	89	%
Clean Product Yield (%)	93	%	87	%	89	%		90	%	88	%	81	%	85	%	76	%	83	%

Worldwide—Including Proportionate Share of Equity Affiliates
Crude Oil Charge Input (MB/D)	1,832		1,660		1,704			1,732		1,833		2,114		2,106		2,117		2,043
Total Processed Inputs (MB/D)	1,951		1,780		1,829			1,853		1,997		2,308		2,263		2,276		2,212
Crude Oil Capacity Utilization (%)	83	%	75	%	77	%		79	%	84	%	97	%	97	%	97	%	94	%
Clean Product Yield (%)	82	%	83	%	85	%		83	%	85	%	84	%	84	%	84	%	84	%

Page 10

Phillips 66 Earnings Release Supplemental Data


REFINING (continued)

	2020					2019
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Refined Petroleum Products Production (MB/D)
Atlantic Basin/Europe*
Gasoline	191	178	207		192	202	240	230	266	234
Distillates	174	160	168		167	185	241	227	234	222
Other	91	95	98		95	80	89	88	82	85
Total	456	433	473		454	467	570	545	582	541
* Includes our proportionate share of a refinery complex in Karlsruhe, Germany.

Gulf Coast
Gasoline	234	277	247		252	296	348	312	332	322
Distillates	248	231	187		223	261	310	297	301	292
Other	221	167	129		172	165	192	208	192	190
Total	703	675	563		647	722	850	817	825	804

Central Corridor*
Gasoline	245	183	241		223	244	260	256	267	257
Distillates	183	161	173		172	175	214	208	210	202
Other	60	52	55		56	49	67	71	51	59
Total	488	396	469		451	468	541	535	528	518
* Includes our proportionate share of the Borger Refinery and Wood River Refinery.

West Coast
Gasoline	151	126	159		146	165	167	170	148	163
Distillates	134	121	137		130	136	124	148	116	131
Other	21	33	38		31	41	66	53	81	60
Total	306	280	334		307	342	357	371	345	354

Worldwide—Including Proportionate Share of Equity Affiliates
Gasoline	821	764	854		813	907	1,015	968	1,013	976
Distillates	739	673	665		692	757	889	880	861	847
Other	393	347	320		354	335	414	420	406	394
Total	1,953	1,784	1,839		1,859	1,999	2,318	2,268	2,280	2,217

Market Indicators*
Crude and Crude Differentials ($/BBL)
WTI	45.97	27.80	40.91		38.23	54.87	59.80	56.44	56.98	57.02
Brent	50.26	29.20	43.00		40.82	63.20	68.82	61.94	63.25	64.30
LLS	48.30	30.07	42.46		40.28	62.40	66.92	60.64	60.79	62.69
ANS	51.40	30.37	42.74		41.50	64.50	68.18	63.07	64.41	65.04
WTI less Maya	4.81	3.40	1.72		3.31	(3.91)	(2.26)	(0.20)	4.06	(0.58)
WTI less WCS (settlement differential)	20.53	11.47	9.09		13.69	12.29	10.67	12.24	15.83	12.76

Natural Gas ($/MMBtu)
Henry Hub	1.88	1.65	1.95		1.83	2.89	2.51	2.33	2.35	2.52

Product Margins ($/BBL)
Atlantic Basin/Europe
East Coast Gasoline less Brent	4.84	7.87	9.52		7.41	1.79	12.06	11.84	6.44	8.03
East Coast Distillate less Brent	14.93	10.95	7.17		11.02	18.05	14.27	17.43	18.66	17.10
Gulf Coast
Gulf Coast Gasoline less LLS	4.97	3.66	5.88		4.84	1.58	8.18	8.24	5.48	5.87
Gulf Coast Distillate less LLS	13.86	8.04	6.10		9.33	16.41	14.28	17.22	17.62	16.38
Central Corridor
Central Gasoline less WTI	7.70	6.18	8.15		7.34	9.72	18.71	15.28	10.75	13.61
Central Distillate less WTI	17.34	11.41	8.55		12.43	24.92	22.49	21.39	22.29	22.77
West Coast
West Coast Gasoline less ANS	13.32	9.36	13.12		11.93	11.83	23.50	19.48	16.85	17.92
West Coast Distillate less ANS	17.22	10.36	9.34		12.31	16.20	21.10	18.38	21.49	19.29

Worldwide Market Crack Spread ($/BBL)**	9.82	7.47	8.17		8.49	9.77	15.24	14.60	12.45	13.01
* Based on daily spot prices, unless otherwise noted.
** Weighted average based on Phillips 66 crude capacity.

Page 11

Phillips 66 Earnings Release Supplemental Data


MARKETING AND SPECIALTIES

	Millions of Dollars, Except as Indicated
	2020					2019
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Income before Income Taxes
Marketing and Other	471	255	365		1,091	138	294	440	327	1,199
Specialties	42	31	50		123	67	59	58	50	234
Income before Income Taxes	513	286	415		1,214	205	353	498	377	1,433






Income before Income Taxes ($/BBL)
U.S.	1.79	1.24	1.74		1.60	0.60	1.09	1.66	1.42	1.22
International	6.58	3.48	5.01		5.16	2.25	4.81	5.19	2.01	3.58

Realized Marketing Fuel Margins ($/BBL)*
U.S.	2.08	1.75	2.23		2.03	1.06	1.53	2.11	1.51	1.57
International	8.53	5.07	6.28		6.78	3.80	6.03	6.37	3.35	4.90
* See note on the use of non-GAAP measures. Also, reconciliations of income before income taxes to realized marketing fuel margin for each period and by region are included in the "Realized Margin Non-GAAP Reconciliations" section.


Other Realized Margins and Revenues not included in Marketing Fuel Margins*
Marketing and Other	117	123	107		347	131	143	168	233	675
Specialties	81	56	83		220	100	93	83	74	350
Total	198	179	190		567	231	236	251	307	1,025
* Excludes gain on dispositions and excise taxes on sales of refined petroleum products.

Equity in Earnings of Affiliates
Marketing and Other	22	38	42		102	22	28	31	45	126
Specialties	—	10	3		13	11	7	21	20	59
Total	22	48	45		115	33	35	52	65	185

Depreciation and Amortization*
Marketing and Other	20	21	21		62	21	21	21	22	85
Specialties	5	4	5		14	5	4	4	5	18
Total	25	25	26		76	26	25	25	27	103
* Excludes D&A of all equity affiliates.

Operating and SG&A Expenses*
Marketing and Other	211	232	259		702	261	297	300	340	1,198
Specialties	31	30	30		91	36	36	39	38	149
Total	242	262	289		793	297	333	339	378	1,347
* Excludes operating and SG&A expenses of all equity affiliates.

Refined Petroleum Products Sales (MB/D)
U.S. Marketing
Gasoline	984	881	997		955	1,063	1,151	1,132	1,213	1,141
Distillates	854	707	698		752	759	898	914	1,106	920
Other	—	—	—		—	—	—	—	—	—
Total	1,838	1,588	1,695		1,707	1,822	2,049	2,046	2,319	2,061

International Marketing
Gasoline	82	60	83		74	88	89	90	89	89
Distillates	183	140	165		163	181	187	185	183	184
Other	20	15	15		17	18	19	16	20	18
Total	285	215	263		254	287	295	291	292	291

Worldwide Marketing
Gasoline	1,066	941	1,080		1,029	1,151	1,240	1,222	1,302	1,230
Distillates	1,037	847	863		915	940	1,085	1,099	1,289	1,104
Other	20	15	15		17	18	19	16	20	18
Total	2,123	1,803	1,958		1,961	2,109	2,344	2,337	2,611	2,352

Foreign Currency Gains (Losses) Pre-Tax	1	—	(1)		—	2	(1)	—	(1)	—

Reconciliation of Marketing and Specialties Income before Income Taxes to Adjusted EBITDA
Income before income taxes	513	286	415		1,214	205	353	498	377	1,433
Plus:

Depreciation and amortization	25	25	26		76	26	25	25	27	103
EBITDA	538	311	441		1,290	231	378	523	404	1,536

Special Item Adjustments (pre-tax):
Pending claims and settlements	(37)	—	—		(37)	—	—	—	—	—
Certain tax impacts	—	—	—		—	—	—	—	(90)	(90)
Pension settlement expense	—	4	1		5	—	—	—	—	—
Hurricane-related costs	—	—	1		1	—	—	—	—	—
Lower-of-cost-or-market inventory adjustments	12	3	—		15	—	—	—	—	—

EBITDA, Adjusted for Special Items	513	318	443		1,274	231	378	523	314	1,446

Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes	—	—	—		—	—	—	—	—	—
Proportional share of selected equity affiliates net interest	6	4	4		14	1	2	1	2	6
Proportional share of selected equity affiliates depreciation and amortization	7	6	7		20	3	2	3	3	11
Adjusted EBITDA	526	328	454		1,308	235	382	527	319	1,463

Page 12

Phillips 66 Earnings Release Supplemental Data


CORPORATE AND OTHER

	Millions of Dollars, Except as Indicated
	2020									2019
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD

Loss before Income Taxes	(197)		(219)		(239)			(655)		(210)		(205)		(178)		(211)		(804)

Detail of Loss before Income Taxes
Net interest expense	(103)		(114)		(131)			(348)		(108)		(105)		(98)		(104)		(415)
Corporate overhead and other	(94)		(105)		(108)			(307)		(102)		(100)		(80)		(107)		(389)



Total	(197)		(219)		(239)			(655)		(210)		(205)		(178)		(211)		(804)

Net Interest Expense
Interest expense	(137)		(139)		(150)			(426)		(132)		(133)		(131)		(139)		(535)
Capitalized interest	26		22		18			66		13		18		22		24		77
Interest income	8		3		1			12		11		10		11		11		43
Total	(103)		(114)		(131)			(348)		(108)		(105)		(98)		(104)		(415)




Reconciliation of Corporate and Other Loss before Income Taxes to Adjusted EBITDA
Loss before income taxes	(197)		(219)		(239)			(655)		(210)		(205)		(178)		(211)		(804)
Plus:

Net interest expense	103		114		131			348		108		105		98		104		415
Depreciation and amortization	19		21		21			61		20		20		18		22		80
EBITDA	(75)		(84)		(87)			(246)		(82)		(80)		(62)		(85)		(309)

Special Item Adjustments (pre-tax):
Impairments	—		—		25			25		—		—		—		—		—



Pension settlement expense	—		3		1			4		—		—		—		—		—

EBITDA, Adjusted for Special Items	(75)		(81)		(61)			(217)		(82)		(80)		(62)		(85)		(309)

Other Adjustments (pre-tax):
None	—		—		—			—		—		—		—		—		—
Adjusted EBITDA	(75)		(81)		(61)			(217)		(82)		(80)		(62)		(85)		(309)

Foreign Currency Losses Pre-Tax	(2)		(1)		(4)			(7)		(1)		(2)		(1)		(1)		(5)

Phillips 66 Total Company Debt
Total Debt	12,963		14,446		14,526			14,526		11,298		11,439		11,925		11,763		11,763
Debt-to-Capital Ratio (%)	35	%	38	%	39	%		39	%	30	%	30	%	31	%	30	%	30	%

Total Equity	23,639		23,295		22,305			22,305		26,745		27,306		27,092		27,169		27,169

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

	Millions of Dollars
	2020									2019
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD

Net income (loss)	(2,427)		(67)		(726)			(3,220)		270		1,504		793		810		3,377
Plus:
Income tax expense (benefit)	(51)		(378)		(624)			(1,053)		70		325		150		256		801
Net interest expense	103		114		131			348		108		105		98		104		415
Depreciation and amortization	342		343		352			1,037		331		334		336		340		1,341
Phillips 66 EBITDA	(2,033)		12		(867)			(2,888)		779		2,268		1,377		1,510		5,934

Special Item Adjustments (pre-tax):
Impairments	3,006		—		1,139			4,145		—		—		853		—		853
Impairments by equity affiliates	—		15		—			15		—		—		47		—		47
Pending claims and settlements	(37)		—		—			(37)		(21)		—		—		—		(21)
Certain tax impacts	—		—		—			—		—		—		—		(90)		(90)

Pension settlement expense	—		38		17			55		—		—		—		—		—
Hurricane-related costs	—		—		15			15		—		—		—		—		—
Lower-of-cost-or-market inventory adjustments	52		20		(101)			(29)		—		—		42		23		65
Asset dispositions	—		(84)		—			(84)		—		—		(17)		—		(17)

Phillips 66 EBITDA, Adjusted for Special Items	988		1		203			1,192		758		2,268		2,302		1,443		6,771

Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes	13		4		15			32		22		24		24		9		79
Proportional share of selected equity affiliates net interest	54		52		60			166		43		39		46		50		178
Proportional share of selected equity affiliates depreciation and amortization	256		251		251			758		234		234		238		239		945
Adjusted EBITDA attributable to joint venture partners' noncontrolling interests	—		—		(20)			(20)		—		—		—		—		—
Adjusted EBITDA attributable to public ownership interest in PSXP	(94)		(78)		(88)			(260)		(89)		(102)		(105)		(95)		(391)
Phillips 66 Adjusted EBITDA	1,217		230		421			1,868		968		2,463		2,505		1,646		7,582




Use of Non-GAAP Financial Information—This earnings release supplemental data includes the terms "EBITDA," "adjusted EBITDA," "realized refining margin per barrel," "realized marketing fuel margin per barrel," and "adjusted capital spending." 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 measures most directly comparable to EBITDA and adjusted EBITDA are net income for consolidated company information and income before income taxes for segment information. Reconciliations of net income (loss) and income (loss) before income taxes to EBITDA and adjusted EBITDA are included in this earnings release supplemental data. 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 GAAP measure most directly comparable to both realized margin per barrel measures is income before income taxes per barrel. Reconciliations of income (loss) before income taxes per barrel to realized refining margin and realized marketing fuel margin are included in this earnings release supplemental data. Adjusted capital spending is a non-GAAP financial measure that demonstrates the portion of total consolidated capital expenditures and investments funded by Phillips 66. The GAAP financial measure most comparable to adjusted capital spending is capital expenditures and investments. A reconciliation of capital expenditures and investments to adjusted capital spending is included in this earnings release supplemental data. Adjusted effective tax rate demonstrates the effective tax rate with the consideration of the tax effect on special items. The GAAP financial measure most comparable to adjusted effective tax rate is effective tax rate. A reconciliation of effective tax rate to adjusted effective tax rate is included in this earnings release supplemental data.

Page 13

Phillips 66 Earnings Release Supplemental Data


REALIZED MARGIN NON-GAAP RECONCILIATIONS

RECONCILIATION OF INCOME (LOSS) BEFORE INCOME TAXES TO REALIZED REFINING MARGINS

	Millions of Dollars, Except as Indicated
	2020					2019
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD

ATLANTIC BASIN/EUROPE
Income (loss) before income taxes	(637)	(227)	(199)		(1,063)	(7)	258	296	61	608
Plus:

Taxes other than income taxes	19	15	14		48	15	11	12	14	52
Depreciation, amortization and impairments	492	49	50		591	50	49	49	50	198
Selling, general and administrative expenses	13	12	6		31	7	10	10	12	39
Operating expenses	194	190	180		564	233	201	208	221	863
Equity in losses of affiliates	2	3	2		7	3	3	3	2	11
Other segment (income) expense, net	(2)	3	—		1	6	4	(24)	(2)	(16)
Proportional share of refining gross margins contributed by equity affiliates	16	16	18		50	17	19	19	14	69


Realized refining margins	97	61	71		229	324	555	573	372	1,824

Total processed inputs (MB)	41,335	39,121	43,176		123,632	41,682	51,172	49,895	52,757	195,506
Adjusted total processed inputs (MB)	41,335	39,121	43,176		123,632	41,682	51,172	49,895	52,757	195,506

Income (loss) before income taxes ($/BBL)**	(15.41)	(5.80)	(4.61)		(8.60)	(0.17)	5.04	5.93	1.16	3.11
Realized refining margins ($/BBL)***	2.38	1.53	1.65		1.86	7.76	10.85	11.48	7.06	9.33

GULF COAST
Income (loss) before income taxes	(843)	(365)	(405)		(1,613)	(118)	222	184	76	364
Plus:

Taxes other than income taxes	37	25	30		92	23	16	23	11	73
Depreciation, amortization and impairments	741	75	75		891	67	68	66	70	271
Selling, general and administrative expenses	7	10	11		28	(2)	8	7	10	23
Operating expenses	492	277	258		1,027	384	322	345	398	1,449
Equity in (earnings) losses of affiliates	(1)	(1)	1		(1)	—	2	(1)	1	2
Other segment (income) expense, net	1	—	(1)		—	1	(5)	1	—	(3)
Proportional share of refining gross margins contributed by equity affiliates	—	—	—		—	—	—	—	—	—


Realized refining margins	434	21	(31)		424	355	633	625	566	2,179

Total processed inputs (MB)	64,066	61,032	51,543		176,641	65,434	77,186	74,936	76,110	293,666
Adjusted total processed inputs (MB)	64,066	61,032	51,543		176,641	65,434	77,186	74,936	76,110	293,666

Income (loss) before income taxes ($/BBL)**	(13.16)	(5.98)	(7.86)		(9.13)	(1.80)	2.88	2.46	1.00	1.24
Realized refining margins ($/BBL)***	6.76	0.36	(0.61)		2.40	5.44	8.20	8.34	7.45	7.42

CENTRAL CORRIDOR
Income (loss) before income taxes	(227)	(104)	(132)		(463)	77	520	408	333	1,338
Plus:

Taxes other than income taxes	17	14	11		42	13	10	10	7	40
Depreciation, amortization and impairments	469	33	33		535	33	34	34	34	135
Selling, general and administrative expenses	6	7	7		20	1	7	6	8	22
Operating expenses	136	120	111		367	145	134	125	146	550
Equity in (earnings) losses of affiliates	51	79	118		248	(84)	(133)	(69)	(45)	(331)
Other segment (income) expense, net	(3)	3	(1)		(1)	(2)	4	(3)	1	—
Proportional share of refining gross margins contributed by equity affiliates	113	92	45		250	267	298	269	239	1,073
Special items:
Pending claims and settlements	—	—	—		—	(21)	—	—	—	(21)
Lower-of-cost-or-market inventory adjustments	35	(35)	—		—	—	—	—	—	—
Realized refining margins	597	209	192		998	429	874	780	723	2,806

Total processed inputs (MB)	23,345	20,778	24,682		68,805	23,893	26,244	26,740	26,417	103,294
Adjusted total processed inputs (MB)*	44,291	36,067	42,979		123,337	41,896	48,932	48,853	48,364	188,045

Income (loss) before income taxes ($/BBL)**	(9.72)	(5.01)	(5.35)		(6.73)	3.22	19.81	15.26	12.61	12.95
Realized refining margins ($/BBL)***	13.50	5.78	4.46		8.09	10.23	17.84	15.99	14.92	14.91

Page 14

Phillips 66 Earnings Release Supplemental Data


RECONCILIATION OF INCOME (LOSS) BEFORE INCOME TAXES TO REALIZED REFINING MARGINS (continued)

	Millions of Dollars, Except as Indicated
	2020					2019
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD

WEST COAST
Loss before income taxes	(554)	(182)	(1,167)		(1,903)	(150)	(17)	(32)	(125)	(324)
Plus:

Taxes other than income taxes	31	22	16		69	24	21	23	17	85
Depreciation, amortization and impairments	364	63	974		1,401	62	63	66	62	253
Selling, general and administrative expenses	10	9	9		28	5	8	8	10	31
Operating expenses	283	216	235		734	249	249	282	363	1,143

Other segment expense, net	1	1	1		3	2	1	1	1	5



Realized refining margins	135	129	68		332	192	325	348	328	1,193

Total processed inputs (MB)	27,877	25,737	30,615		84,229	30,703	32,697	34,498	32,116	130,014
Adjusted total processed inputs (MB)	27,877	25,737	30,615		84,229	30,703	32,697	34,498	32,116	130,014

Loss before income taxes ($/BBL)**	(19.87)	(7.07)	(38.12)		(22.59)	(4.89)	(0.52)	(0.93)	(3.89)	(2.49)
Realized refining margins ($/BBL)***	4.80	5.05	2.23		3.94	6.25	9.94	10.11	10.22	9.18

WORLDWIDE
Income (loss) before income taxes	(2,261)	(878)	(1,903)		(5,042)	(198)	983	856	345	1,986
Plus:

Taxes other than income taxes	104	76	71		251	75	58	68	49	250
Depreciation, amortization and impairments	2,066	220	1,132		3,418	212	214	215	216	857
Selling, general and administrative expenses	36	38	33		107	11	33	31	40	115
Operating expenses	1,105	803	784		2,692	1,011	906	960	1,128	4,005
Equity in (earnings) losses of affiliates	52	81	121		254	(81)	(128)	(67)	(42)	(318)
Other segment (income) expense, net	(3)	7	(1)		3	7	4	(25)	—	(14)
Proportional share of refining gross margins contributed by equity affiliates	129	108	63		300	284	317	288	253	1,142
Special items:

Pending claims and settlements	—	—	—		—	(21)	—	—	—	(21)
Lower-of-cost-or-market inventory adjustments	35	(35)	—		—	—	—	—	—	—

Realized refining margins	1,263	420	300		1,983	1,300	2,387	2,326	1,989	8,002

Total processed inputs (MB)	156,623	146,668	150,016		453,307	161,712	187,299	186,069	187,400	722,480
Adjusted total processed inputs (MB)*	177,569	161,957	168,313		507,839	179,715	209,987	208,182	209,347	807,231

Income (loss) before income taxes ($/BBL)**	(14.44)	(5.99)	(12.69)		(11.12)	(1.22)	5.25	4.60	1.84	2.75
Realized refining margins ($/BBL)***	7.11	2.60	1.78		3.91	7.23	11.37	11.18	9.50	9.91
* Adjusted total processed inputs include our proportional share of processed inputs of an equity affiliate.
** Income (loss) before income taxes 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.

Page 15

Phillips 66 Earnings Release Supplemental Data


RECONCILIATION OF INCOME BEFORE INCOME TAXES TO REALIZED MARKETING FUEL MARGINS

	Millions of Dollars, Except as Indicated
	2020									2019
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD

UNITED STATES
Income before income taxes	299		179		271			749		98		203		312		303		916
Plus:

Taxes other than income taxes	2		2		—			4		2		3		3		(3)		5
Depreciation and amortization	3		3		3			9		2		3		2		3		10
Selling, general and administrative expenses	127		151		174			452		155		183		184		221		743
Equity in earnings of affiliates	—		(11)		(10)			(21)		(1)		(3)		(3)		(20)		(27)
Other operating revenues*	(84)		(71)		(90)			(245)		(82)		(103)		(101)		(93)		(379)

Special items:
Certain tax impacts	—		—		—			—		—		—		—		(90)		(90)


Realized marketing fuel margins	347		253		348			948		174		286		397		321		1,178

Total fuel sales volumes (MB)	167,178		144,517		155,948			467,643		164,058		186,488		188,172		213,346		752,064

Income before income taxes ($/BBL)	1.79		1.24		1.74			1.60		0.60		1.09		1.66		1.42		1.22
Realized marketing fuel margins ($/BBL)**	2.08		1.75		2.23			2.03		1.06		1.53		2.11		1.51		1.57

INTERNATIONAL
Income before income taxes	171		68		121			360		58		129		139		54		380
Plus:

Taxes other than income taxes	1		2		1			4		2		1		2		1		6
Depreciation and amortization	17		16		18			51		16		16		16		17		65
Selling, general and administrative expenses	63		57		62			182		62		61		61		65		249
Equity in earnings of affiliates	(22)		(28)		(31)			(81)		(22)		(25)		(27)		(25)		(99)
Other operating revenues*	2		(4)		(7)			(9)		(6)		(9)		(10)		(12)		(37)
Other segment (income) expense, net	—		1		(1)			—		(2)		1		1		1		1
Marketing margins	232		112		163			507		108		174		182		101		565
Less: margin for nonfuel related sales	10		13		11			34		10		12		11		11		44
Realized marketing fuel margins	222		99		152			473		98		162		171		90		521

Total fuel sales volumes (MB)	25,979		19,583		24,164			69,726		25,796		26,837		26,796		26,834		106,263

Income before income taxes ($/BBL)	6.58		3.48		5.01			5.16		2.25		4.81		5.19		2.01		3.58
Realized marketing fuel margins ($/BBL)**	8.53		5.07		6.28			6.78		3.80		6.03		6.37		3.35		4.90

* Includes other nonfuel 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.

ADJUSTED EFFECTIVE TAX RATE NON-GAAP RECONCILIATION

RECONCILIATION OF EFFECTIVE TAX RATE TO ADJUSTED EFFECTIVE TAX RATE

	Millions of Dollars, Except as Indicated
	2020									2019
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD

EFFECTIVE TAX RATES
Income (loss) before income taxes	(2,478)		(445)		(1,350)			(4,273)		340		1,829		943		1,066		4,178
Special items	3,021		(19)		1,070			4,072		(21)		—		925		(67)		837
Adjusted income (loss) before income taxes	543		(464)		(280)			(201)		319		1,829		1,868		999		5,015

Income tax expense (benefit)	(51)		(378)		(624)			(1,053)		70		325		150		256		801
Special items	75		188		272			535		(4)		45		235		(20)		256
Adjusted income tax expense (benefit)	24		(190)		(352)			(518)		66		370		385		236		1,057

Effective tax rate (%)	2.1	%	84.9	%	46.2	%		24.6	%	20.6	%	17.8	%	15.9	%	24.0	%	19.2	%
Adjusted effective tax rate (%)	4.4	%	40.9	%	125.7	%		257.7	%	20.7	%	20.2	%	20.6	%	23.6	%	21.1	%

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