PHILLIPS 66 PARTNERS LP - FORM 8-K - EX-99.2 - August 3, 2021

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EX-99.1 - EX-99.1 - PHILLIPS 66 PARTNERS LPmlp-2021630_erxex991.htm
8-K - 8-K - PHILLIPS 66 PARTNERS LPmlp-20210803.htm

Exhibit 99.2
Phillips 66 Partners LP Earnings Release Supplemental Data
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STATEMENT OF INCOME (LOSS)
CONSOLIDATED
Millions of Dollars, Except as Indicated
20212020
1st Qtr2nd Qtr3rd Qtr4th QtrYTD1st Qtr2nd Qtr3rd Qtr4th QtrYTD
Revenues and Other Income
Operating revenues—related parties
245 274 519 258 236 256 258 1,008 
Operating revenues—third parties
7 6 13 9 5 9 7 30 
Equity in earnings of affiliates
124 142 266 136 104 129 124 493 
Gain from equity interest transfer— — — — 84 — — 84 
Other income
— 1 1 1 1 — 1 3 
Total revenues and other income
376 423 799 404 430 394 390 1,618 
Costs and Expenses
Operating and maintenance expenses95 93 188 88 84 85 85 342 
Depreciation34 34 68 30 31 35 39 135 
Impairments198 — 198 — — — 96 96 
General and administrative expenses17 18 35 17 17 16 16 66 
Taxes other than income taxes10 11 21 11 10 9 10 40 
Interest and debt expense33 32 65 29 28 32 32 121 
Other expenses— — — 2 5 — — 7 
Total costs and expenses387 188 575 177 175 177 278 807 
Income (loss) before income taxes(11)235 224 227 255 217 112 811 
Income tax expense— 1 1 1 — 1 1 3 
Net Income (Loss)(11)234 223 226 255 216 111 808 
Less: Net income attributable to noncontrolling interest7 9 16 — — 10 7 17 
Net Income (Loss) Attributable to the Partnership
(18)225 207 226 255 206 104 791 
Less: Preferred unitholders’ interest in net income (loss) attributable to the Partnership12 12 24 10 9 10 12 41 
Limited Partners’ Interest in Net Income (Loss) Attributable to the Partnership(30)213 183 216 246 196 92 750 
Adjusted EBITDA*
289 337 626 321 269 313 318 1,221 
Distributable Cash Flow*
233 267 500 269 218 243 240 970 
Net Income (Loss) Attributable to the Partnership Per Limited Partner Unit (dollars)
Common units—basic(0.13)0.91 0.78 0.95 1.07 0.86 0.40 3.29 
Common units—diluted(0.13)0.91 0.78 0.93 1.05 0.85 0.40 3.27 
Weighted-Average Limited Partner Units Outstanding (thousands)
Common units—basic228,340 228,340 228,340 228,312 228,340 228,340 228,340 228,333 
Common units—diluted228,340 228,340 228,340 242,132 242,160 242,160 228,340 242,153 
* 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
20212020
1st Qtr2nd Qtr3rd Qtr4th QtrYTD1st Qtr2nd Qtr3rd Qtr4th QtrYTD
Wholly Owned Operating Data
Pipelines
Pipeline revenues (millions of dollars)
104 121 225 111 97 117 111 436 
Pipeline volumes(1) (thousands of barrels daily)
Crude oil796 957 877 941 806 867 843 864 
Refined petroleum products and NGL809 1,029 920 866 825 907 877 869 
Total
1,605 1,986 1,797 1,807 1,631 1,774 1,720 1,733 
Average pipeline revenue per barrel (dollars)
0.71 0.66 0.68 0.67 0.65 0.71 0.70 0.68 
Terminals
Terminal revenues (millions of dollars)
39 43 82 43 33 36 41 153 
Terminal throughput (thousands of barrels daily)
Crude oil(2)
374 397 386 460 380 296 283 354 
Refined petroleum products657 827 743 748 690 700 711 713 
Total
1,031 1,224 1,129 1,208 1,070 996 994 1,067 
Average terminaling revenue per barrel (dollars)
0.41 0.38 0.39 0.39 0.33 0.39 0.44 0.39 
Storage, processing and other revenues (millions of dollars)
109 116 225 113 111 112 113 449 
Total Operating Revenues (millions of dollars)
252 280 532 267 241 265 265 1,038 
Joint Venture Operating Data(3)
Crude oil, refined petroleum products and NGL (thousands of barrels daily)
1,052 1,327 1,190 838 942 1,142 1,102 1,007 
(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
20212020
1st Qtr2nd Qtr3rd Qtr4th QtrYTD1st Qtr2nd Qtr3rd Qtr4th QtrYTD
Capital Expenditures and Investments
Expansion52 44 96 196 311 160 90 757 
Maintenance6 17 23 15 28 21 33 97 
Adjusted Capital Spending*58 61 119 211 339 181 123 854 
Capital expenditures and investments funded by certain joint venture partners**— — — 23 38 3 (3)61 
Capital Expenditures and Investments58 61 119 234 377 184 120 915 
 * See note on the use of non-GAAP measures.
** Includes previously funded capital returned to our joint venture partner in the fourth quarter of 2020.




CASH DISTRIBUTIONS
20212020
1st Qtr2nd Qtr3rd Qtr4th QtrYTD1st Qtr2nd Qtr3rd Qtr4th QtrYTD
Cash Distribution Per Common Unit (Dollars)
0.875 0.875 1.750 0.875 0.875 0.875 0.875 3.500 
Cash Distributions* ($ Millions)
Common units—public52 51 103 51 51 52 51 205 
Common units—Phillips 66148 148 296 148 149 148 149 594 
Total200 199 399 199 200 200 200 799 
Coverage Ratio†**
1.17 1.34 1.25 1.35 1.09 1.22 1.20 1.21 
  * 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
20212020
1st Qtr2nd Qtr3rd Qtr4th QtrYTD1st Qtr2nd Qtr3rd Qtr4th QtrYTD
Reconciliation to Net Income (Loss) Attributable to the Partnership
Net Income (Loss) Attributable to the Partnership(18)225 207 226 255 206 104 791 
Plus:
Net income attributable to noncontrolling interest7 9 16 — — 10 7 17 
Net Income (Loss)(11)234 223 226 255 216 111 808 
Plus:
Depreciation34 34 68 30 31 35 39 135 
Net interest expense33 32 65 28 29 31 32 120 
Income tax expense— 1 1 1 — 1 1 3 
EBITDA**56 301 357 285 315 283 183 1,066 
Plus:
Proportional share of equity affiliates’ net interest, taxes, depreciation and amortization, and impairments49 51 100 35 38 45 54 172 
Expenses indemnified or prefunded by Phillips 66— 1 1 — — 1 1 2 
Transaction costs associated with acquisitions— — — 1 — — — 1 
Impairments198 — 198 — — — 96 96 
Less:
Gain from equity interest transfer— — — — 84 — — 84 
Adjusted EBITDA attributable to noncontrolling interest14 16 30 — — 16 16 32 
Adjusted EBITDA**289 337 626 321 269 313 318 1,221 
Plus:
Deferred revenue impacts*†
9 (4)5 2 5 (3)4 8 
Less:
Equity affiliate distributions less than (more than) proportional adjusted EBITDA14 3 17 1 (10)4 5 — 
Maintenance capital expenditures†
6 17 23 15 28 21 33 97 
Net interest expense33 32 65 28 29 31 32 120 
Preferred unit distributions12 12 24 10 9 10 12 41 
Income taxes paid— 2 2 — — 1 — 1 
Distributable Cash Flow**233 267 500 269 218 243 240 970 
  * 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
20212020
1st Qtr2nd Qtr3rd Qtr4th QtrYTD1st Qtr2nd Qtr3rd Qtr4th QtrYTD
Reconciliation to Net Cash Provided by Operating Activities
Net Cash Provided by Operating Activities227 286 513 274 215 296 170 955 
Plus:
Net interest expense33 32 65 28 29 31 32 120 
Income tax expense— 1 1 1 — 1 1 3 
Changes in working capital(11)(11)(22)(12)(3)(45)75 15 
Undistributed equity earnings5 (7)(2)(4)(5)— 2 (7)
Impairments(198)— (198)— — — (96)(96)
Gain from equity interest transfer— — — — 84 — — 84 
Deferred revenues and other liabilities— 2 2 — 2 1 1 4 
Other— (2)(2)(2)(7)(1)(2)(12)
EBITDA**56 301 357 285 315 283 183 1,066 
Plus:
Proportional share of equity affiliates’ net interest, taxes, depreciation and amortization, and impairments49 51 100 35 38 45 54 172 
Expenses indemnified or prefunded by Phillips 66— 1 1 — — 1 1 2 
Transaction costs associated with acquisitions— — — 1 — — — 1 
Impairments198 — 198 — — — 96 96 
Less:
Gain from equity interest transfer— — — — 84 — — 84 
Adjusted EBITDA attributable to noncontrolling interest14 16 30 — — 16 16 32 
Adjusted EBITDA**289 337 626 321 269 313 318 1,221 
Plus:
Deferred revenue impacts*†
9 (4)5 2 5 (3)4 8 
Less:
Equity affiliate distributions less than (more than) proportional adjusted EBITDA14 3 17 1 (10)4 5 — 
Maintenance capital expenditures†
6 17 23 15 28 21 33 97 
Net interest expense33 32 65 28 29 31 32 120 
Preferred unit distributions12 12 24 10 9 10 12 41 
Income taxes paid— 2 2 — — 1 — 1 
Distributable Cash Flow**233 267 500 269 218 243 240 970 
 * 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 5

Exhibit 99.2
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 (loss). 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 6

PHILLIPS 66 PARTNERS LP Reports