EX-99.2 3 psx-20181231_erxsuppinfoxe.htm EXHIBIT 99.2 Exhibit
 
 
 
 
 
 
 
 
 
 
 
 
 
Exhibit 99.2
Phillips 66 Earnings Release Supplemental Data
psxphillips66.jpg 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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

29,098

111,461

 
22,894

24,087

25,627

29,746

102,354

Equity in earnings of affiliates
424

743

779

730

2,676

 
365

462

530

375

1,732

Net gain on dispositions
17

—

1

1

19

 
1

14

—

—

15

Other income
10

13

24

14

61

 
452

18

49

2

521

Total Revenues and Other Income
24,046

29,736

30,592

29,843

114,217

 
23,712

24,581

26,206

30,123

104,622

 
 
 
 


 
 
 
 
 
 
 
 
 
Costs and Expenses


 
 
 
 
 
 
 
 
 
Purchased crude oil and products
21,138

25,747

26,385

24,660

97,930

 
17,679

18,353

19,463

23,914

79,409

Operating expenses
1,246

1,143

1,206

1,285

4,880

 
1,270

1,137

1,134

1,158

4,699

Selling, general and administrative expenses
386

432

440

419

1,677

 
384

439

435

437

1,695

Depreciation and amortization
336

337

346

337

1,356

 
315

320

337

346

1,318

Impairments
—

6

1

1

8

 
2

15

1

6

24

Taxes other than income taxes*
110

109

109

97

425

 
3,156

3,356

3,456

3,494

13,462

Accretion on discounted liabilities
6

6

5

6

23

 
5

6

5

6

22

Interest and debt expense
123

135

125

121

504

 
105

107

112

114

438

Foreign currency transaction (gains) losses
(16
)
(14
)
—

(1
)
(31
)
 
(1
)
—

7

(6
)
—

Total Costs and Expenses
23,329

27,901

28,617

26,925

106,772

 
22,915

23,733

24,950

29,469

101,067

Income before income taxes
717

1,835

1,975

2,918

7,445

 
797

848

1,256

654

3,555

Income tax expense (benefit)
132

431

407

602

1,572

 
234

267

407

(2,601
)
(1,693
)
Net Income
585

1,404

1,568

2,316

5,873

 
563

581

849

3,255

5,248

Less: net income attributable to noncontrolling interests
61

65

76

76

278

 
28

31

26

57

142

Net Income Attributable to Phillips 66
524

1,339

1,492

2,240

5,595

 
535

550

823

3,198

5,106

* Includes excise taxes on sales of refined 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

4.85

11.87

 
1.02

1.06

1.60

6.29

9.90

Diluted
1.07

2.84

3.18

4.82

11.80

 
1.02

1.06

1.60

6.25

9.85

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-Average Common Shares Outstanding (thousands)
 
 
 
 
 
 
 
 
 
 
 
Basic
487,065

468,331

466,109

461,651

470,708

 
521,647

517,785

512,923

508,148

515,090

Diluted
489,668

471,638

469,440

464,406

474,047

 
524,520

520,160

515,960

511,352

518,508

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OTHER INFORMATION
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2018
 
2017
 
 
 
 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effective tax rate (%)
18.4
%
23.5
%
20.6
%
20.6
%
21.1
%
 
29.4
%
31.5
%
32.4
%
(397.7
)%
(47.6
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign Currency Gains (Losses) - After-Tax ($ Millions)
13

13

—

1

27

 
1

—

(5
)
4

—




Page 1

 
psxphillips66.jpg 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RECONCILIATION OF INCOME (LOSS) BEFORE INCOME TAXES BY SEGMENT 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
280

238

284

379

1,181

 
153

130

166

189

638

Chemicals
286

324

263

152

1,025

 
251

294

163

8

716

Refining
112

1,190

1,232

2,001

4,535

 
390

307

863

516

2,076

Marketing and Specialties
235

310

423

589

1,557

 
208

328

317

167

1,020

Corporate and Other
(196
)
(227
)
(227
)
(203
)
(853
)
 
(205
)
(211
)
(253
)
(226
)
(895
)
Income before income taxes
717

1,835

1,975

2,918

7,445

 
797

848

1,256

654

3,555

Less: income tax expense (benefit)
132

431

407

602

1,572

 
234

267

407

(2,601
)
(1,693
)
Net Income
585

1,404

1,568

2,316

5,873

 
563

581

849

3,255

5,248

Less: net income attributable to noncontrolling interests
61

65

76

76

278

 
28

31

26

57

142

Net Income Attributable to Phillips 66
524

1,339

1,492

2,240

5,595

 
535

550

823

3,198

5,106

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RECONCILIATION OF ADJUSTED INCOME (LOSS) BEFORE INCOME TAXES BY SEGMENT 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
163

164

209

234

770

 
107

102

140

152

501

NGL and Other
86

53

74

122

335

 
19

14

(5
)
18

46

DCP Midstream
31

21

29

53

134

 
27

22

1

26

76

Total Midstream
280

238

312

409

1,239

 
153

138

136

196

623

Chemicals
286

324

263

152

1,025

 
284

294

216

161

955

Refining
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe
(108
)
164

216

301

573

 
(98
)
124

249

157

432

Gulf Coast
—

366

221

468

1,055

 
98

91

123

107

419

Central Corridor
272

521

846

1,188

2,827

 
97

45

318

301

761

West Coast
(54
)
140

(20
)
51

117

 
(130
)
61

168

(55
)
44

Total Refining
110

1,191

1,263

2,008

4,572

 
(33
)
321

858

510

1,656

Marketing and Specialties
 
 
 
 
 
 
 
 
 
 
 
Marketing and Other
163

188

323

528

1,202

 
181

282

246

111

820

Specialties
59

66

62

64

251

 
27

53

75

57

212

Total Marketing and Specialties
222

254

385

592

1,453

 
208

335

321

168

1,032

Corporate and Other
(212
)
(227
)
(223
)
(201
)
(863
)
 
(205
)
(209
)
(220
)
(226
)
(860
)
Adjusted income before income taxes
686

1,780

2,000

2,960

7,426

 
407

879

1,311

809

3,406

Less: adjusted income tax expense (benefit)
120

393

467

624

1,604

 
85

279

427

204

995

Adjusted Net Income
566

1,387

1,533

2,336

5,822

 
322

600

884

605

2,411

Less: adjusted net income attributable to noncontrolling interests
54

65

77

76

272

 
28

31

26

57

142

Adjusted Net Income Attributable to Phillips 66
512

1,322

1,456

2,260

5,550

 
294

569

858

548

2,269



Page 2

 
psxphillips66.jpg

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SPECIAL ITEMS INCLUDED IN INCOME (LOSS) BEFORE INCOME TAXES BY SEGMENT
AND 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
 
 
 
 
 
 
 
 
 
 
 
Pending claims and settlements
—

—

(21
)
—

(21
)
 
—

—

37

—

37

Hurricane-related costs
—

—

—

—

—

 
—

—

(4
)
(6
)
(10
)
Impairments by equity affiliates
—

—

—

(28
)
(28
)
 
—

—

—

—

—

Pension settlement expense
—

—

(7
)
(2
)
(9
)
 
—

(8
)
(3
)
(1
)
(12
)
Total Midstream
—

—

(28
)
(30
)
(58
)
 
—

(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

4

6

 
—

—

—

23

23

Hurricane-related costs
—

—

—

—

—

 
—

—

(12
)
(12
)
(24
)
Gain on consolidation of business
—

—

—

—

—

 
423

—

—

—

423

Pension settlement expense
—

—

(32
)
(11
)
(43
)
 
—

(35
)
(13
)
(5
)
(53
)
Total Refining
2

(1
)
(31
)
(7
)
(37
)
 
423

(14
)
5

6

420

 
 
 
 
 
 
 
 
 
 
 
 
Marketing and Specialties
 
 
 
 
 
 
 
 
 
 
 
Certain tax impacts
13

56

44

—

113

 
—

—

—

—

—

Hurricane-related costs
—

—

—

—

—

 
—

—

(1
)
—

(1
)
Pension settlement expense
—

—

(6
)
(3
)
(9
)
 
—

(7
)
(3
)
(1
)
(11
)
Total Marketing and Specialties
13

56

38

(3
)
104

 
—

(7
)
(4
)
(1
)
(12
)
 
 
 
 
 
 
 
 
 
 
 
 
Corporate and Other
 
 
 
 
 
 
 
 
 
 
 
Pending claims and settlements
—

—

—

—

—

 
—

3

(31
)
—

(28
)
U.S. tax reform
16

—

—

—

16

 
—

—

—

—

—

Pension settlement expense
—

—

(4
)
(2
)
(6
)
 
—

(5
)
(2
)
—

(7
)
Total Corporate and Other
16

—

(4
)
(2
)
10

 
—

(2
)
(33
)
—

(35
)
 
 
 
 
 
 
 
 
 
 
 
 
Total Special Items (Pre-tax)
31

55

(25
)
(42
)
19

 
390

(31
)
(55
)
(155
)
149

 
 
 
 
 
 
 
 
 
 
 
 
Income Tax Expense (Benefit)
 
 
 
 
 
 
 
 
 
 
 
Tax impact of pre-tax special items*
5

14

(6
)
(12
)
1

 
149

(12
)
(20
)
(70
)
47

Other tax impacts
—

—

(5
)
(65
)
(70
)
 
—

—

—

—

—

U.S. tax reform
7

24

(49
)
55

37

 
—

—

—

(2,735
)
(2,735
)
Total Income Tax Expense (Benefit)
12

38

(60
)
(22
)
(32
)
 
149

(12
)
(20
)
(2,805
)
(2,688
)
 
 
 
 
 
 
 
 
 
 
 
 
Income (Loss) Attributable to Noncontrolling Interests
 
 
 
 
 
 
 
 
 
 
 
Pending claims and settlements
—

—

(1
)
—

(1
)
 
—

—

—

—

—

U.S. tax reform
7

—

—

—

7

 
—

—

—

—

—

Total Income (Loss) Attributable to Noncontrolling Interests
7

—

(1
)
—

6

 
—

—

—

—

—

 
 
 
 
 
 
 
 
 
 
 
 
Total Phillips 66 Special Items (After-tax)
12

17

36

(20
)
45

 
241

(19
)
(35
)
2,650

2,837

* We generally tax effect taxable U.S.-based special items using a combined federal and state statutory income tax rate of approximately 25 percent beginning in 2018, and approximately 38 percent for periods prior to 2018. 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
 
2018
 
2017
 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

Midstream
 
 
 
 
 
 
 
 
 
 
 
Transportation
—

—

—

—

—

 
—

—

34

(5
)
29

NGL and Other
—

—

(28
)
(2
)
(30
)
 
—

(8
)
(4
)
(2
)
(14
)
DCP Midstream
—

—

—

(28
)
(28
)
 
—

—

—

—

—

Total Midstream
—

—

(28
)
(30
)
(58
)
 
—

(8
)
30

(7
)
15

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Refining
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe
—

—

(7
)
1

(6
)
 
—

(4
)
(2
)
22

16

Gulf Coast
—

—

(11
)
(4
)
(15
)
 
423

(5
)
(14
)
(14
)
390

Central Corridor
—

—

(7
)
(3
)
(10
)
 
—

(3
)
(1
)
(2
)
(6
)
West Coast
2

(1
)
(6
)
(1
)
(6
)
 
—

(2
)
22

—

20

Total Refining
2

(1
)
(31
)
(7
)
(37
)
 
423

(14
)
5

6

420

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Marketing and Specialties
 
 
 
 
 
 
 
 
 
 
 
Marketing and Other
13

56

38

(3
)
104

 
—

(7
)
(4
)
(1
)
(12
)
Specialties
—

—

—

—

—

 
—

—

—

—

—

Total Marketing and Specialties
13

56

38

(3
)
104

 
—

(7
)
(4
)
(1
)
(12
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Page 3

 
psxphillips66.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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

2,316

5,873

 
563

581

849

3,255

5,248

Depreciation and amortization
336

337

346

337

1,356

 
315

320

337

346

1,318

Impairments
—

6

1

1

8

 
2

15

1

6

24

Accretion on discounted liabilities
6

6

5

6

23

 
5

6

5

6

22

Deferred income taxes
101

28

100

23

252

 
493

264

27

(2,670
)
(1,886
)
Undistributed equity earnings
119

(133
)
125

110

221

 
(212
)
(40
)
(291
)
27

(516
)
Net gain on dispositions
(17
)
—

(1
)
(1
)
(19
)
 
(1
)
(14
)
—

—

(15
)
Gain on consolidation of business
—

—

—

—

—

 
(423
)
—

—

—

(423
)
Other
173

24

(79
)
14

132

 
6

92

(332
)
48

(186
)
Net working capital changes
(815
)
692

(1,483
)
1,333

(273
)
 
(1,297
)
641

(195
)
913

62

Net Cash Provided by (Used in) Operating Activities
488

2,364

582

4,139

7,573

 
(549
)
1,865

401

1,931

3,648

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash Flows From Investing Activities
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures and investments
(328
)
(538
)
(779
)
(994
)
(2,639
)
 
(470
)
(458
)
(367
)
(537
)
(1,832
)
Proceeds from asset dispositions*
17

12

10

18

57

 
9

42

14

21

86

Advances/loans—related parties
(1
)
—

—

—

(1
)
 
—

—

(9
)
(1
)
(10
)
Collection of advances/loans—related parties
—

—

—

—

—

 
325

—

—

1

326

Restricted cash received from consolidation of business
—

—

—

—

—

 
318

—

—

—

318

Other
(45
)
62

50

45

112

 
(24
)
(37
)
(19
)
46

(34
)
Net Cash Provided by (Used in) Investing Activities
(357
)
(464
)
(719
)
(931
)
(2,471
)
 
158

(453
)
(381
)
(470
)
(1,146
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash Flows From Financing Activities
 
 
 
 
 
 
 
 
 
 
 
Issuance of debt
1,509

—

85

590

2,184

 
712

1,891

480

425

3,508

Repayment of debt
(7
)
(253
)
(114
)
(770
)
(1,144
)
 
(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
)
(497
)
(4,645
)
 
(285
)
(381
)
(461
)
(463
)
(1,590
)
Dividends paid on common stock
(327
)
(372
)
(370
)
(367
)
(1,436
)
 
(326
)
(360
)
(356
)
(353
)
(1,395
)
Distributions to noncontrolling interests
(45
)
(51
)
(50
)
(61
)
(207
)
 
(24
)
(30
)
(29
)
(37
)
(120
)
Net proceeds from issuance of Phillips 66 Partners LP common and preferred units
9

58

47

14

128

 
40

131

—

1,034

1,205

Other
(45
)
(13
)
(21
)
(7
)
(86
)
 
(34
)
(20
)
(12
)
(10
)
(76
)
Net Cash Provided by (Used in) Financing Activities
(2,409
)
(841
)
(819
)
(1,098
)
(5,167
)
 
(686
)
(904
)
(612
)
91

(2,111
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash
1

(17
)
(4
)
(15
)
(35
)
 
2

17

(22
)
20

17

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Change in Cash, Cash Equivalents and Restricted Cash
(2,277
)
1,042

(960
)
2,095

(100
)
 
(1,075
)
525

(614
)
1,572

408

Cash, cash equivalents and restricted cash at beginning of period
3,119

842

1,884

924

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

3,019

3,019

 
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

570

1,548

 
182

199

178

212

771

Chemicals
—

—

—

—

—

 
—

—

—

—

—

Refining
172

153

200

301

826

 
259

216

148

230

853

Marketing and Specialties
13

15

37

60

125

 
15

23

27

43

108

Corporate and Other
7

31

39

63

140

 
14

20

14

52

100

Total Consolidated
328

538

779

994

2,639

 
470

458

367

537

1,832

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proportional Share of Select Equity Affiliates Capital Expenditures and Investments*
 
 
 
 
 
 
 
 
 
 
 
DCP Midstream (Midstream)
95

98

149

142

484

 
44

60

62

102

268

CPChem (Chemicals)
161

63

60

55

339

 
256

131

119

270

776

WRB Refining (Refining)
40

35

41

40

156

 
42

22

27

35

126

Select Equity Affiliates
296

196

250

237

979

 
342

213

208

407

1,170


 
 
 
 
 
 
 
 
 
 
 
Total Capital Program*
 
 
 
 
 
 
 
 
 
 
 
Midstream
231

437

652

712

2,032

 
226

259

240

314

1,039

Chemicals
161

63

60

55

339

 
256

131

119

270

776

Refining
212

188

241

341

982

 
301

238

175

265

979

Marketing and Specialties
13

15

37

60

125

 
15

23

27

43

108

Corporate and Other
7

31

39

63

140

 
14

20

14

52

100

Total Capital Program
624

734

1,029

1,231

3,618

 
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 4

 
psxphillips66.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MIDSTREAM
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2018
 
2017
 
 
 
 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

Income (Loss) before Income Taxes ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Transportation
163

164

209

234

770

 
107

102

174

147

530

NGL and Other
86

53

46

120

305

 
19

6

(9
)
16

32

DCP Midstream
31

21

29

25

106

 
27

22

1

26

76

Income (Loss) before Income Taxes
280

238

284

379

1,181

 
153

130

166

189

638

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted EBITDA ($ Millions)*
 
 
 
 
 
 
 
PSXP**
236

263

297

300

1,096

 
149

157

154

240

700

Other Midstream
127

79

113

176

495

 
70

54

107

55

286

Transportation and NGL and Other
363

342

410

476

1,591

 
219

211

261

295

986

DCP Midstream
76

62

72

97

307

 
71

65

42

70

248

Adjusted EBITDA
439

404

482

573

1,898

 
290

276

303

365

1,234

* See reconciliation of income before income taxes to Adjusted EBITDA on next page.
 
 
 
 
 
 
 
** Does not include certain PSXP adjustments made for PSXP stand-alone reporting purposes.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity in Earnings of Affiliates ($ Millions)
 
 
 
 
 
 
 
Transportation
87

91

106

121

405

 
36

38

113

76

263

NGL and Other
35

43

48

39

165

 
26

28

28

34

116

DCP Midstream
30

21

29

26

106

 
27

21

2

25

75

Total
152

155

183

186

676

 
89

87

143

135

454

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and Amortization ($ Millions)*
 
 
 
 
 
 
 
Transportation
36

44

46

41

167

 
33

35

46

44

158

NGL and Other
38

38

40

37

153

 
35

34

35

37

141

DCP Midstream
—

—

—

—

—

 
—

—

—

—

—

Total
74

82

86

78

320

 
68

69

81

81

299

* Excludes D&A of all equity affiliates.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating and SG&A Expense ($ Millions)*
 
 
 
 
 
 
 
Transportation
178

188

178

185

729

 
161

177

187

185

710

NGL and Other
77

78

101

77

333

 
57

63

65

70

255

DCP Midstream
—

—

—

—

—

 
—

(1
)
—

—

(1
)
Total
255

266

279

262

1,062

 
218

239

252

255

964

* Excludes Operating and SG&A Expense of all equity affiliates.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Transportation Volumes (MB/D)
 
 
 
 
 
 
 
Pipelines*
3,209

3,404

3,517

3,627

3,441

 
3,257

3,311

3,274

3,437

3,320

Terminals**
2,669

3,214

3,179

3,541

3,153

 
2,395

2,581

2,675

3,008

2,665

* 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)*
184

227

227

223

216

 
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

51

210

 
53

42

3

49

147

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and Amortization ($ Millions)
94

97

98

99

388

 
94

94

94

97

379

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating and SG&A Expense ($ Millions)
221

260

275

304

1,060

 
240

254

226

234

954

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Interest Expense ($ Millions)*
70

69

71

69

279

 
76

73

77

72

298

* Net of interest income.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital Expenditures and Investments ($ Millions)
189

196

299

283

967

 
87

121

124

204

536

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected DCP Operating Statistics
 
 
 
 
 
 
 
Wellhead Volume (Bcf/D)
4.5

4.9

4.9

5.0

4.8

 
4.6

4.5

4.5

4.6

4.6

NGL Production (MB/D)
380

430

426

415

413

 
341

367

378

411

374

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-Average NGL Price*
 
 
 
 
 
 
 
DCP Midstream ($/BBL)
29.41

31.83

36.51

28.80

31.64

 
25.31

22.94

26.12

30.39

26.19

DCP Midstream ($/gal)
0.70

0.76

0.87

0.69

0.75

 
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

67

236

 
32

36

43

47

158

LP Distribution from PSXP to Phillips 66
50

51

55

58

214

 
37

40

44

46

167

GP Distribution from DCP Midstream, LP to DCP Midstream***
43

42

43

**

128

 
23

23

43

83

172

LP Distribution from DCP Midstream, LP to DCP Midstream***
40

41

41

**

122

 
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 5

 
psxphillips66.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 Income before Income Taxes to Adjusted EBITDA ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
280

238

284

379

1,181

 
153

130

166

189

638

Plus:
 
 
 
 
 
 
 
 
 
 
 
Interest revenue
—

—

—

—

—

 
(1
)
—

—

—

(1
)
Depreciation and amortization
74

82

86

78

320

 
68

69

81

81

299

EBITDA
354

320

370

457

1,501

 
220

199

247

270

936

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Special Item Adjustments (pre-tax):
 
 
 
 
 
 
 
Pending claims and settlements
—

—

21

—

21

 
—

—

(37
)
—

(37
)
Hurricane-related costs
—

—

—

—

—

 
—

—

4

6

10

Impairments by equity affiliates
—

—

—

28

28

 
—

—

—

—

—

Pension settlement expense
—

—

7

2

9

 
—

8

3

1

12

EBITDA, Adjusted for Special Items
354

320

398

487

1,559

 
220

207

217

277

921

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Adjustments (pre-tax):
 
 
 
 
 
 
 
 
 
 
 
Proportional share of selected equity affiliates income taxes
—

—

—

1

1

 
—

1

1

(1
)
1

Proportional share of selected equity affiliates net interest
34

33

32

32

131

 
27

26

31

37

121

Proportional share of selected equity affiliates depreciation and amortization
51

51

52

53

207

 
43

42

54

52

191

Adjusted EBITDA
439

404

482

573

1,898

 
290

276

303

365

1,234

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted EBITDA by Business Line
 
 
 
 
 
 
 
100% PSXP Results ($ Millions)
 
 
 
 
 
 
 
Income before income taxes
174

186

217

223

800

 
110

120

132

166

528

Plus:
 
 
 
 
 
 
 
 
 
 
 
Net interest expense
29

29

28

28

114

 
23

23

24

29

99

Depreciation and amortization
28

29

30

30

117

 
28

28

32

28

116

EBITDA
231

244

275

281

1,031

 
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
)
 
—

—

—

—

—

EBITDA, Adjusted for Predecessors and Special Items**
221

244

278

281

1,024

 
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

8

31

 
—

—

—

7

7

Proportional share of selected equity affiliates depreciation and amortization
8

11

11

11

41

 
2

3

2

11

18

Adjusted EBITDA**
236

263

297

300

1,096

 
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.
 
 
 
 
 
 
 

Page 6

 
psxphillips66.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MIDSTREAM (continued)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2018
 
2017
 
 
 
 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

Total Transportation and NGL and Other ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
249

217

255

354

1,075

 
126

108

165

163

562

Plus:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest revenue
—

—

—

—

—

 
(1
)
—

—

—

(1
)
Depreciation and amortization
74

82

86

78

320

 
68

69

81

81

299

EBITDA*
323

299

341

432

1,395

 
193

177

246

244

860

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Special Item Adjustments (pre-tax):
 
 
 
 
 
 
 
Pending claims and settlements
—

—

21

—

21

 
—

—

(37
)
—

(37
)
Hurricane-related costs
—

—

—

—

—

 
—

—

4

6

10

Pension settlement expense
—

—

7

2

9

 
—

8

3

1

12

EBITDA, Adjusted for Special Items*
323

299

369

434

1,425

 
193

185

216

251

845

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Adjustments (pre-tax):
 
 
 
 
 
 
 
 
 
 
 
Proportional share of selected equity affiliates income taxes
—

—

—

1

1

 
—

—

—

1

1

Proportional share of selected equity affiliates net interest
18

18

17

16

69

 
10

10

18

18

56

Proportional share of selected equity affiliates depreciation and amortization
22

25

24

25

96

 
16

16

27

25

84

Adjusted EBITDA*
363

342

410

476

1,591

 
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)
 
 
 
 
 
 
 
Income before income taxes
31

21

29

25

106

 
27

22

1

26

76

Plus:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
None
—

—

—

—

—

 
—

—

—

—

—

EBITDA
31

21

29

25

106

 
27

22

1

26

76

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Special Item Adjustments (pre-tax):
 
 
 
 
 
 
 
Impairments by equity affiliates
—

—

—

28

28

 
—

—

—

—

—

EBITDA, Adjusted for Special Items
31

21

29

53

134

 
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

16

62

 
17

16

13

19

65

Proportional share of selected equity affiliates depreciation and amortization
29

26

28

28

111

 
27

26

27

27

107

Adjusted EBITDA*
76

62

72

97

307

 
71

65

42

70

248

* Proportional share of selected equity affiliates is net of noncontrolling interests.
 
 
 
 
 
 
 


Page 7

 
psxphillips66.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CHEMICALS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2018
 
2017
 
 
 
 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before Income Taxes ($ Millions)
286

324

263

152

1,025

 
251

294

163

8

716

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity in Earnings of Affiliate ($ Millions)
288

325

261

151

1,025

 
250

292

163

8

713

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100% CPChem Results
 
 
 
 
 
 
 
 
 
 
 
Net Income (Loss), excludes parent company income tax related to CPChem's earnings ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Olefins and Polyolefins
535

609

443

315

1,902

 
461

537

295

27

1,320

Specialties, Aromatics and Styrenics
57

76

108

28

269

 
53

61

46

9

169

Corporate and Other
(7
)
(35
)
(20
)
(40
)
(102
)
 
(11
)
(8
)
(10
)
(14
)
(43
)
Total
 
 
 
585

650

531

303

2,069

 
503

590

331

22

1,446

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (Loss) before Income Taxes ($ Millions)
 
 
 
 
 
 
 
Olefins and Polyolefins
546

618

457

325

1,946

 
470

546

304

35

1,355

Specialties, Aromatics and Styrenics
61

83

116

33

293

 
62

65

51

13

191

Corporate and Other
(7
)
(34
)
(20
)
(41
)
(102
)
 
(11
)
(8
)
(10
)
(13
)
(42
)
Total
 
 
 
600

667

553

317

2,137

 
521

603

345

35

1,504


 
 
 
 
 
 
 
 
 
 
 
Depreciation and Amortization ($ Millions)
116

153

159

167

595

 
73

75

85

118

351

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Interest (Income) Expense ($ Millions)*
(3
)
19

18

17

51

 
(1
)
(1
)
(3
)
(3
)
(8
)
* Net of interest income.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investing Cash Flows ($ Millions)
 
 
 
 
 
 
 
Capital Expenditures and Investments
322

126

119

111

678

 
512

262

238

540

1,552

Advances to Equity Companies
—

—

—

—

—

 
6

2

3

—

11

Advance Repayments from Equity Companies
(33
)
(35
)
(12
)
(39
)
(119
)
 
(7
)
—

—

(52
)
(59
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Olefins and Polyolefins Capacity Utilization (%)
96
%
95
%
91
%
95
%
94
%
 
89
%
98
%
83
%
79
%
87
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Market Indicators*
 
 
 
 
 
 
 
 
 
 
 
U.S. Industry Prices
 
 
 
 
 
 
 
 
 
 
 
Ethylene, Average Acquisition Contract (cents/lb)
26.80

20.60

23.61

25.18

24.05

 
31.87

29.61

28.21

30.84

30.13

HDPE Blow Molding, Domestic Spot (cents/lb)
60.00

61.00

59.58

56.00

59.15

 
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

17.27

17.06

 
11.80

12.54

16.14

16.22

14.18

HDPE Blow Molding, Total Cash Cost (cents/lb)
39.81

33.47

36.57

38.30

37.04

 
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

25.60

29.10

 
31.00

32.48

29.61

31.59

31.17

* Source: IHS, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of Chemicals Income before Income Taxes to Adjusted EBITDA ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
286

324

263

152

1,025

 
251

294

163

8

716

Plus:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
None
—

—

—

—

—

 
—

—

—

—

—

EBITDA
286

324

263

152

1,025

 
251

294

163

8

716

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Special Item Adjustments (pre-tax):
 
 
 
 
 
 
 
 
Impairments by equity affiliates
—

—

—

—

—

 
33

—

—

31

64

Hurricane-related costs
—

—

—

—

—

 
—

—

53

122

175

EBITDA, Adjusted for Special Items
286

324

263

152

1,025

 
284

294

216

161

955

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Adjustments (pre-tax):
 
 
 
 
 
 
 
 
Proportional share of selected equity affiliates income taxes
23

30

30

17

100

 
20

14

18

16

68

Proportional share of selected equity affiliates net interest
3

13

11

11

38

 
1

2

1

—

4

Proportional share of selected equity affiliates depreciation and amortization
92

108

110

112

422

 
69

70

76

92

307

Adjusted EBITDA
404

475

414

292

1,585

 
374

380

311

269

1,334


Page 8

 
psxphillips66.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REFINING
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2018
 
2017
 
 
 
 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

Income (Loss) before Income Taxes ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe
(108
)
164

209

302

567

 
(98
)
120

247

179

448

Gulf Coast
—

366

210

464

1,040

 
521

86

109

93

809

Central Corridor
272

521

839

1,185

2,817

 
97

42

317

299

755

West Coast
(52
)
139

(26
)
50

111

 
(130
)
59

190

(55
)
64

Income (Loss) before Income Taxes
112

1,190

1,232

2,001

4,535

 
390

307

863

516

2,076

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (Loss) before Income Taxes ($/BBL)
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe
(2.75
)
3.42

4.62

5.63

3.05

 
(2.44
)
2.32

4.72

3.26

2.25

Gulf Coast
—

4.76

3.01

6.04

3.55

 
7.79

1.19

1.55

1.22

2.83

Central Corridor
10.37

19.88

31.33

43.77

26.50

 
3.94

1.88

13.48

13.82

8.19

West Coast
(1.57
)
3.95

(0.74
)
1.52

0.81

 
(4.74
)
1.67

5.19

(1.58
)
0.48

Worldwide
0.67

6.39

6.96

10.50

6.29

 
2.45

1.69

4.72

2.75

2.92

 
 
 
 
 
 
 
 
 
 
 
 
Realized Refining Margins ($/BBL)*
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe
7.17

10.42

11.48

11.54

10.32

 
6.29

7.90

10.02

8.32

8.25

Gulf Coast
6.75

9.93

9.09

11.84

9.48

 
8.03

6.74

7.26

6.38

7.07

Central Corridor
16.11

17.51

23.61

30.60

22.22

 
10.54

9.96

14.04

15.16

12.44

West Coast
8.32

12.77

9.53

14.18

11.20

 
9.95

10.83

12.95

7.96

10.49

Worldwide
9.29

12.28

13.36

16.53

12.99

 
8.55

8.44

10.49

8.98

9.13

* See note on the use of non-GAAP measures below. 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 below.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity in Earnings (Losses) of Affiliates ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe
(2
)
(3
)
(2
)
(3
)
(10
)
 
(4
)
(2
)
(3
)
(2
)
(11
)
Gulf Coast
(1
)
(3
)
(1
)
(1
)
(6
)
 
7

(2
)
1

(2
)
4

Central Corridor
(61
)
220

300

353

812

 
(9
)
26

146

166

329

West Coast
—

—

—

—

—

 
—

—

—

—

—

Total
(64
)
214

297

349

796

 
(6
)
22

144

162

322

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and Amortization ($ Millions)*
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe
52

50

50

49

201

 
49

47

47

49

192

Gulf Coast
66

64

69

69

268

 
65

68

68

70

271

Central Corridor
35

32

34

34

135

 
27

27

32

33

119

West Coast
58

59

60

59

236

 
58

62

58

61

239

Total
211

205

213

211

840

 
199

204

205

213

821

* Excludes D&A of all equity affiliates.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating and SG&A Expense ($ Millions)*
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe
298

240

233

242

1,013

 
271

213

201

223

908

Gulf Coast
376

305

330

358

1,369

 
350

308

312

297

1,267

Central Corridor
115

131

131

145

522

 
144

191

131

161

627

West Coast
241

240

275

334

1,090

 
324

234

224

248

1,030

Total
1,030

916

969

1,079

3,994

 
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

10

133

 
83

19

7

16

125

Gulf Coast
105

10

24

44

183

 
72

23

11

19

125

Central Corridor
2

4

7

7

20

 
27

79

14

47

167

West Coast
40

25

20

69

154

 
117

33

11

17

178

Total
245

60

55

130

490

 
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

13

56

 
16

13

14

13

56

Gulf Coast
25

23

23

17

88

 
27

23

23

23

96

Central Corridor
12

9

10

12

43

 
14

13

9

10

46

West Coast
27

25

26

24

102

 
20

21

—

23

64

Total
79

72

72

66

289

 
77

70

46

69

262

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign Currency Gains (Losses) Pre-Tax ($ Millions)
11

7

(1
)
7

24

 
—

1

(6
)
7

2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Refining—Equity Affiliate Information ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Equity in earnings (losses) of affiliates
(64
)
214

297

349

796

 
(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
)
(507
)
(1,612
)
 
239

(191
)
(262
)
(306
)
(520
)
Equity-affiliate-related expenses not included in Realized Refining Margins
(303
)
(183
)
(172
)
(158
)
(816
)
 
233

(169
)
(118
)
(144
)
(198
)
Regional Totals
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe
(43
)
(18
)
—

5

(56
)
 
(17
)
(18
)
25

17

7

Gulf Coast
(1
)
(3
)
(1
)
(1
)
(6
)
 
428

(2
)
1

(1
)
426

Central Corridor
(259
)
(162
)
(171
)
(162
)
(754
)
 
(178
)
(149
)
(144
)
(160
)
(631
)
Total
(303
)
(183
)
(172
)
(158
)
(816
)
 
233

(169
)
(118
)
(144
)
(198
)
* Other costs associated with equity affiliates which do not flow through equity earnings.
 
 
 
 
 
 


Page 9

 
psxphillips66.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 Income before Income Taxes to Adjusted EBITDA ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
112

1,190

1,232

2,001

4,535

 
390

307

863

516

2,076

Plus:
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
211

205

213

211

840

 
199

204

205

213

821

EBITDA
323

1,395

1,445

2,212

5,375

 
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
)
(4
)
(6
)
 
—

—

—

(23
)
(23
)
Hurricane-related costs
—

—

—

—

—

 
—

—

12

12

24

Gain on consolidation of business
—

—

—

—

—

 
(423
)
—

—

—

(423
)
Pension settlement expense
—

—

32

11

43

 
—

35

13

5

53

EBITDA, Adjusted for Special Items
321

1,396

1,476

2,219

5,412

 
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
)
(1
)
(6
)
 
—

(1
)
(1
)
(1
)
(3
)
Proportional share of selected equity affiliates depreciation and amortization
68

68

68

68

272

 
65

65

68

70

268

Adjusted EBITDA
387

1,463

1,543

2,286

5,679

 
231

589

1,130

793

2,743

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Statistics
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe*
 
 
 
 
 
 
 
 
 
 
 
Crude Oil Charge Input (MB/D)
419

495

465

526

477

 
366

533

536

543

494

Total Processed Inputs (MB/D)
436

527

492

583

510

 
446

569

569

597

546

Crude Oil Capacity Utilization (%)
78
%
92
%
87
%
98
%
89
%
 
70
%
103
%
103
%
104
%
95
%
Clean Product Yield (%)
84
%
86
%
85
%
90
%
86
%
 
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

751

717

 
668

715

694

758

709

Total Processed Inputs (MB/D)
769

845

759

835

802

 
743

795

767

828

784

Crude Oil Capacity Utilization (%)
93
%
102
%
87
%
100
%
95
%
 
90
%
96
%
93
%
102
%
95
%
Clean Product Yield (%)
76
%
80
%
79
%
81
%
79
%
 
80
%
81
%
80
%
81
%
81
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Central Corridor*
 
 
 
 
 
 
 
 
 
 
 
Crude Oil Charge Input (MB/D)
458

513

531

524

507

 
470

465

480

452

467

Total Processed Inputs (MB/D)
475

531

548

544

525

 
488

480

497

472

484

Crude Oil Capacity Utilization (%)
93
%
104
%
108
%
106
%
103
%
 
95
%
94
%
97
%
92
%
95
%
Clean Product Yield (%)
90
%
88
%
88
%
91
%
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

316

343

 
279

366

368

353

342

Total Processed Inputs (MB/D)
367

387

382

358

373

 
304

388

398

378

367

Crude Oil Capacity Utilization (%)
93
%
100
%
97
%
87
%
94
%
 
78
%
102
%
102
%
98
%
95
%
Clean Product Yield (%)
86
%
86
%
87
%
88
%
87
%
 
87
%
87
%
86
%
89
%
87
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Worldwide—Including Proportionate Share of Equity Affiliates
 
 
 
 
 
 
 
 
 
 
Crude Oil Charge Input (MB/D)
1,913

2,137

2,006

2,117

2,044

 
1,783

2,079

2,078

2,106

2,012

Total Processed Inputs (MB/D)
2,047

2,290

2,181

2,320

2,210

 
1,981

2,232

2,231

2,275

2,181

Crude Oil Capacity Utilization (%)
89
%
100
%
93
%
99
%
95
%
 
84
%
98
%
98
%
100
%
95
%
Clean Product Yield (%)
83
%
84
%
84
%
86
%
84
%
 
85
%
85
%
85
%
87
%
86
%


Page 10

 
psxphillips66.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REFINING (continued)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2018
 
2017
 
 
 
 
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
172

222

203

258

213

 
213

252

252

260

244

Distillates
185

218

202

248

214

 
163

228

230

254

219

Other
81

92

89

85

87

 
81

95

92

90

90

Total
438

532

494

591

514

 
457

575

574

604

553

* Includes our proportionate share of a refinery complex in Karlsruhe, Germany.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gulf Coast
 
 
 
 
 
 
 
 
 
 
 
Gasoline
303

337

307

344

323

 
296

324

310

333

316

Distillates
260

315

266

300

285

 
275

292

286

311

291

Other
212

198

192

195

200

 
178

185

175

191

182

Total
775

850

765

839

808

 
749

801

771

835

789

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Central Corridor*
 
 
 
 
 
 
 
 
 
 
 
Gasoline
242

263

269

280

264

 
253

241

253

251

249

Distillates
181

201

210

212

201

 
181

180

182

178

180

Other
56

73

74

57

65

 
59

64

68

48

60

Total
479

537

553

549

530

 
493

485

503

477

489

* Includes our proportionate share of the Borger Refinery and Wood River Refinery.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
West Coast
 
 
 
 
 
 
 
 
 
 
 
Gasoline
180

190

180

168

179

 
154

197

198

189

185

Distillates
136

143

150

147

144

 
110

141

142

144

135

Other
53

54

51

44

50

 
41

50

58

44

48

Total
369

387

381

359

373

 
305

388

398

377

368

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Worldwide—Including Proportionate Share of Equity Affiliates
 
 
 
 
 
 
 
 
 
 
Gasoline
 
 
 
897

1,012

959

1,050

979

 
916

1,014

1,013

1,033

994

Distillates
 
 
 
762

877

828

907

844

 
729

841

840

887

825

Other
 
 
 
402

417

406

381

402

 
359

394

393

373

380

Total
 
 
 
2,061

2,306

2,193

2,338

2,225

 
2,004

2,249

2,246

2,293

2,199

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Market Indicators
 
 
 
 
 
 
 
 
 
 
 
Crude and Crude Differentials ($/BBL)
 
 
 
 
 
 
 
 
 
 
 
WTI
62.88

67.99

69.71

59.09

64.92

 
51.83

48.24

48.16

55.35

50.90

Brent
66.76

74.35

75.27

67.76

71.04

 
53.78

49.83

52.08

61.39

54.27

LLS
65.79

73.11

74.31

66.55

69.94

 
53.51

50.31

51.65

61.05

54.13

ANS
66.96

74.10

75.55

68.65

71.31

 
53.83

50.68

52.20

61.52

54.56

WTI less Maya
5.16

5.83

3.57

(4.73
)
2.46

 
7.10

4.29

1.62

2.21

3.80

WTI less WCS
25.78

18.04

27.88

33.25

26.23

 
13.79

9.99

10.49

16.82

12.77

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Natural Gas ($/MMBtu)
 
 
 
 
 
 
 
 
 
 
 
 
 
Henry Hub
3.01

2.82

2.90

3.74

3.12

 
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

1.32

9.16

 
9.46

15.53

19.17

11.26

13.85

East Coast Distillate less Brent
16.35

15.83

16.20

19.13

16.88

 
12.93

13.29

17.18

17.77

15.29

Gulf Coast
 
 
 
 
 
 
 
 
 
 
 
Gulf Coast Gasoline less LLS
8.65

9.44

8.63

(0.70
)
6.51

 
9.92

10.86

14.90

8.95

11.16

Gulf Coast Distillate less LLS
15.15

15.28

15.54

16.82

15.70

 
12.26

11.59

16.44

15.48

13.94

Central Corridor
 
 
 
 
 
 
 
 
 
 
 
Central Gasoline less WTI
13.57

16.04

16.68

8.53

13.71

 
12.77

14.11

19.32

16.43

15.66

Central Distillate less WTI
19.85

22.03

22.77

26.64

22.82

 
14.00

14.59

21.98

23.43

18.50

West Coast
 
 
 
 
 
 
 
 
 
 
 
West Coast Gasoline less ANS
16.40

18.76

14.13

9.69

14.74

 
17.28

21.08

20.83

11.76

17.74

West Coast Distillate less ANS
17.28

18.69

17.85

18.60

18.11

 
14.84

14.32

20.45

18.81

17.10

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Worldwide Market Crack Spread ($/BBL)*
13.12

14.86

14.21

9.11

12.83

 
12.24

14.06

18.19

13.98

14.62

* Weighted average based on Phillips 66 crude capacity.
 
 
 
 
 
 




Page 11

 
psxphillips66.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MARKETING AND SPECIALTIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2018
 
2017
 
 
 
 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

Income before Income Taxes ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Marketing and Other
176

244

361

525

1,306

 
181

275

242

110

808

Specialties
59

66

62

64

251

 
27

53

75

57

212

Income before Income Taxes
235

310

423

589

1,557

 
208

328

317

167

1,020

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before Income Taxes ($/BBL)
 
 
 
 
 
 
 
 
 
 
 
U.S.
0.85

1.05

1.48

1.40

1.21

 
0.82

1.20

1.05

0.51

0.89

International
1.51

3.32

4.80

10.05

5.00

 
2.01

3.10

2.36

1.46

2.23

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Realized Marketing Fuel Margins ($/BBL)*
 
 
 
 
 
 
 
 
 
 
 
U.S.**
1.39

1.30

1.80

1.95

1.62

 
1.47

1.74

1.63

1.09

1.48

International
3.32

5.25

6.58

11.99

6.87

 
3.70

4.95

4.45

3.72

4.21

* See note on the use of non-GAAP measures below. 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 below.
 
 
 
 
 
 
 
** U.S. realized marketing fuel margins for Q2 and Q3 2018 have been revised to exclude the effects of special items on fuel margins.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Realized Margins and Revenues not included in Marketing Fuel Margins ($ Millions)*
 
 
 
 
 
 
 
 
 
 
 
Marketing and Other
127

183

185

143

638

 
115

117

136

109

477

Specialties
82

86

89

90

347

 
58

61

64

54

237

Total
209

269

274

233

985

 
173

178

200

163

714

* Excludes gain on dispositions and excise taxes on sales of refined petroleum products.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity in Earnings of Affiliates ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Marketing and Other
20

27

25

27

99

 
18

25

24

21

88

Specialties
12

22

14

17

65

 
14

36

56

49

155

Total
32

49

39

44

164

 
32

61

80

70

243

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and Amortization ($ Millions)*
 
 
 
 
 
 
 
 
 
 
 
Marketing and Other
24

24

22

24

94

 
22

21

24

25

92

Specialties
5

5

5

5

20

 
5

5

5

5

20

Total
29

29

27

29

114

 
27

26

29

30

112

* Excludes D&A of all equity affiliates.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating and SG&A Expense ($ Millions)*
 
 
 
 
 
 
 
 
 
 
 
Marketing and Other
266

294

303

298

1,161

 
245

283

292

284

1,104

Specialties
36

36

34

37

143

 
38

37

39

39

153

Total
302

330

337

335

1,304

 
283

320

331

323

1,257

* Excludes Operating and SG&A Expense of all equity affiliates.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Refined Petroleum Products Sales (MB/D)
 
 
 
 
 
 
 
 
 
 
 
U.S. Marketing
 
 
 
 
 
 
 
 
 
 
 
Gasoline
1,024

1,110

1,102

1,204

1,111

 
1,073

1,188

1,188

1,197

1,162

Distillates
 
 
 
706

843

780

873

801

 
667

751

780

866

766

Other
 
 
 
1

—

—

—

—

 
—

—

1

1

1

Total
 
 
 
1,731

1,953

1,882

2,077

1,912

 
1,740

1,939

1,969

2,064

1,929

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
International Marketing
 
 
 
 
 
 
 
 
 
 
 
Gasoline
 
 
 
81

86

85

87

84

 
82

87

84

83

84

Distillates
 
 
 
173

169

175

179

174

 
168

161

166

165

165

Other
 
 
 
19

17

17

20

18

 
15

18

17

20

17

Total
 
 
 
273

272

277

286

276

 
265

266

267

268

266

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Worldwide Marketing
 
 
 
 
 
 
 
 
 
 
 
Gasoline
 
 
 
1,105

1,196

1,187

1,291

1,195

 
1,155

1,275

1,272

1,280

1,246

Distillates
 
 
 
879

1,012

955

1,052

975

 
835

912

946

1,031

931

Other
 
 
 
20

17

17

20

18

 
15

18

18

21

18

Total
 
 
 
2,004

2,225

2,159

2,363

2,188

 
2,005

2,205

2,236

2,332

2,195

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign Currency Gains (Losses) Pre-Tax ($ Millions)
4

—

1

(6
)
(1
)
 
1

—

1

(3
)
(1
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of Marketing and Specialties Income before Income Taxes to Adjusted EBITDA ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
235

310

423

589

1,557

 
208

328

317

167

1,020

Plus:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
29

29

27

29

114

 
27

26

29

30

112

EBITDA
264

339

450

618

1,671

 
235

354

346

197

1,132

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Special Item Adjustments (pre-tax):
 
 
 
 
 
 
 
 
 
 
 
Certain tax impacts
(13
)
(56
)
(44
)
—

(113
)
 
—

—

—

—

—

Hurricane-related costs
—

—

—

—

—

 
—

—

1

—

1

Pension settlement expense
—

—

6

3

9

 
—

7

3

1

11

EBITDA, Adjusted for Special Items
251

283

412

621

1,567

 
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

1

4

 
—

—

1

—

1

Proportional share of selected equity affiliates depreciation and amortization
3

2

3

3

11

 
3

3

2

3

11

Adjusted EBITDA
254

287

416

625

1,582

 
238

364

353

201

1,156



Page 12

 
psxphillips66.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CORPORATE AND OTHER
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2018
 
2017
 
 
 
 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

 
1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss before Income Taxes ($ Millions)
(196
)
(227
)
(227
)
(203
)
(853
)
 
(205
)
(211
)
(253
)
(226
)
(895
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Detail of Loss before Income Taxes ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Net interest expense
(112
)
(128
)
(114
)
(105
)
(459
)
 
(100
)
(100
)
(104
)
(104
)
(408
)
Corporate overhead
(59
)
(74
)
(83
)
(41
)
(257
)
 
(60
)
(73
)
(68
)
(67
)
(268
)
Technology
(22
)
(22
)
(21
)
(23
)
(88
)
 
(23
)
(21
)
(24
)
(26
)
(94
)
Other*
(3
)
(3
)
(9
)
(34
)
(49
)
 
(22
)
(17
)
(57
)
(29
)
(125
)
Total
(196
)
(227
)
(227
)
(203
)
(853
)
 
(205
)
(211
)
(253
)
(226
)
(895
)
* First-quarter 2018 equity earnings reflect a tax benefit from an equity affiliate as a result of U.S. tax reform.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Interest Expense ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Interest expense
(123
)
(136
)
(131
)
(131
)
(521
)
 
(114
)
(113
)
(112
)
(114
)
(453
)
Capitalized interest
—

1

6

10

17

 
9

6

—

—

15

Interest income
11

7

11

16

45

 
5

7

8

10

30

Total
(112
)
(128
)
(114
)
(105
)
(459
)
 
(100
)
(100
)
(104
)
(104
)
(408
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of Corporate and Other Loss before Income Taxes to Adjusted EBITDA ($ Millions)
 
 
 
 
 
 
 
 
 
 
 
Loss before income taxes
(196
)
(227
)
(227
)
(203
)
(853
)
 
(205
)
(211
)
(253
)
(226
)
(895
)
Plus:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest expense
112

128

114

105

459

 
100

100

104

104

408

Depreciation and amortization
22

21

20

19

82

 
21

21

22

22

86

EBITDA
(62
)
(78
)
(93
)
(79
)
(312
)
 
(84
)
(90
)
(127
)
(100
)
(401
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Special Item Adjustments (pre-tax):
 
 
 
 
 
 
 
 
 
 
 
Pending claims and settlements
—

—

—

—

—

 
—

—

31

—

31

U.S. tax reform
(16
)
—

—

—

(16
)
 
—

—

—

—

—

Pension settlement expense
—

—

4

2

6

 
—

5

2

—

7

EBITDA, Adjusted for Special Items
(78
)
(78
)
(89
)
(77
)
(322
)
 
(84
)
(85
)
(94
)
(100
)
(363
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Adjustments (pre-tax):
 
 
 
 
 
 
 
 
 
 
 
None
—

—

—

—

—

 
—

—

—

—

—

Adjusted EBITDA
(78
)
(78
)
(89
)
(77
)
(322
)
 
(84
)
(85
)
(94
)
(100
)
(363
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign Currency Gains (Losses) Pre-Tax ($ Millions)
—

8

—

—

8

 
—

(1
)
(2
)
2

(1
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Phillips 66 Total Company Debt
 
 
 
 
 
 
 
 
 
 
 
Total Debt ($ Millions)
11,621

11,364

11,337

11,160

11,160

 
10,210

9,965

10,201

10,110

10,110

Debt-to-Capital Ratio (%)
32
%
31
%
31
%
29
%
29
%
 
30
%
30
%
30
%
27
%
27
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Equity ($ Millions)
24,300

24,960

25,795

27,153

27,153

 
23,725

23,806

23,959

27,428

27,428

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RECONCILIATION OF CONSOLIDATED INCOME BEFORE INCOME TAXES TO ADJUSTED EBITDA 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

 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
717

1,835

1,975

2,918

7,445

 
797

848

1,256

654

3,555

Plus:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest expense
112

128

114

105

459

 
99

100

104

104

407

Depreciation and amortization
336

337

346

337

1,356

 
315

320

337

346

1,318

Phillips 66 EBITDA
1,165

2,300

2,435

3,360

9,260

 
1,211

1,268

1,697

1,104

5,280

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Special Item Adjustments (pre-tax):
 
 
 
 
 
 
 
 
 
 
 
Impairments by equity affiliates
—

—

—

28

28

 
33

—

—

31

64

Pending claims and settlements
—

—

21

—

21

 
—

(21
)
(36
)
—

(57
)
Certain tax impacts
(15
)
(55
)
(45
)
(4
)
(119
)
 
—

—

—

(23
)
(23
)
Gain on consolidation of business
—

—

—

—

—

 
(423
)
—

—

—

(423
)
Pension settlement expense
—

—

49

18

67

 
—

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

3,402

9,241

 
821

1,302

1,752

1,259

5,134

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Adjustments (pre-tax):
 
 
 
 
 
 
 
Proportional share of selected equity affiliates income taxes
23

30

31

18

102

 
20

15

19

16

70

Proportional share of selected equity affiliates net interest
35

47

42

43

167

 
28

27

32

36

123

Proportional share of selected equity affiliates depreciation and amortization
214

229

233

236

912

 
180

180

200

217

777

EBITDA attributable to Phillips 66 noncontrolling interests
(80
)
(87
)
(97
)
(97
)
(361
)
 
(46
)
(47
)
(49
)
(87
)
(229
)
Phillips 66 Adjusted EBITDA
1,326

2,464

2,669

3,602

10,061

 
1,003

1,477

1,954

1,441

5,875

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Recast of Financial Information—Effective in Q4 2018, we changed our segment performance measure to income before income taxes from net income. The supplemental data by segment and other information included herein has been recast for all periods presented to conform with this change. In addition, other information included herein has been recast (e.g., pipeline volumes) and certain information presented historically has been removed (e.g., CPChem externally marketed sales volumes) to conform to current period presentation.


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 income before income taxes. 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 income before income taxes per barrel. Reconciliations of income before income taxes 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 13


psxphillips66.jpg















REALIZED MARGIN NON-GAAP RECONCILIATIONS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RECONCILIATION OF INCOME (LOSS) BEFORE INCOME TAXES 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
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
(108
)
164

209

302

567

 
(98
)
120

247

179

448

Plus:
 
 
 
 
 
 
 
 
 
 
 
Taxes other than income taxes
15

15

13

13

56

 
16

13

14

13

56

Depreciation, amortization and impairments
52

50

50

49

201

 
49

47

47

49

192

Selling, general and administrative expenses
13

15

16

19

63

 
14

15

16

16

61

Operating expenses
285

225

217

223

950

 
257

198

185

207

847

Equity in losses of affiliates
2

3

2

3

10

 
4

2

3

2

11

Other segment income
(7
)
—

(3
)
(1
)
(11
)
 
(3
)
(3
)
(2
)
(2
)
(10
)
Proportional share of refining gross margins contributed by equity affiliates
29

28

16

14

87

 
14

16

15

14

59

Special items:
 
 
 
 
 
 
 
 
 
 
 
 Certain tax impacts
—

—

(1
)
(4
)
(5
)
 
—

—

—

(23
)
(23
)
Realized refining margins
281

500

519

618

1,918

 
253

408

525

455

1,641

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total processed inputs (thousands of barrels)
39,218

47,978

45,233

53,613

186,042

 
40,116

51,749

52,306

54,897

199,068

Adjusted total processed inputs (thousands of barrels)
39,218

47,978

45,233

53,613

186,042

 
40,116

51,749

52,306

54,897

199,068

 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes (dollars per barrel)**
(2.75
)
3.42

4.62

5.63

3.05

 
(2.44
)
2.32

4.72

3.26

2.25

Realized refining margins (dollars per barrel)***
7.17

10.42

11.48

11.54

10.32

 
6.29

7.90

10.02

8.32

8.25

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GULF COAST
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
—

366

210

464

1,040

 
521

86

109

93

809

Plus:
 
 
 
 
 
 
 
 
 
 
 
Taxes other than income taxes
25

23

23

17

88

 
27

23

24

23

97

Depreciation, amortization and impairments
66

64

69

69

268

 
67

68

68

70

273

Selling, general and administrative expenses
10

13

13

21

57

 
12

14

14

15

55

Operating expenses
366

292

317

337

1,312

 
338

294

298

282

1,212

Equity in (earnings) losses of affiliates
1

3

1

1

6

 
(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

909

2,774

 
537

488

512

485

2,022

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total processed inputs (thousands of barrels)
69,207

76,875

69,745

76,838

292,665

 
66,848

72,346

70,544

76,213

285,951

Adjusted total processed inputs (thousands of barrels)
69,207

76,875

69,745

76,838

292,665

 
66,848

72,346

70,544

76,213

285,951

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes (dollars per barrel)**
—

4.76

3.01

6.04

3.55

 
7.79

1.19

1.55

1.22

2.83

Realized refining margins (dollars per barrel)***
6.75

9.93

9.09

11.84

9.48

 
8.03

6.74

7.26

6.38

7.07

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CENTRAL CORRIDOR
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
272

521

839

1,185

2,817

 
97

42

317

299

755

Plus:
 
 
 
 
 
 
 
 
 
 
 
Taxes other than income taxes
12

9

10

12

43

 
14

13

9

10

46

Depreciation, amortization and impairments
35

32

34

34

135

 
27

37

32

33

129

Selling, general and administrative expenses
7

7

7

13

34

 
8

8

8

10

34

Operating expenses
108

124

124

132

488

 
136

183

123

151

593

Equity in (earnings) losses of affiliates
61

(220
)
(300
)
(353
)
(812
)
 
9

(26
)
(146
)
(166
)
(329
)
Other segment (income) expense, net
(4
)
(8
)
4

(5
)
(13
)
 
2

4

8

(1
)
13

Proportional share of refining gross margins contributed by equity affiliates
198

381

472

514

1,565

 
169

175

290

325

959

Realized refining margins
689

846

1,190

1,532

4,257

 
462

436

641

661

2,200

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total processed inputs (thousands of barrels)
26,236

26,209

26,778

27,076

106,299

 
24,647

22,331

23,525

21,643

92,146

Adjusted total processed inputs (thousands of barrels)*
42,765

48,347

50,410

50,039

191,561

 
43,921

43,718

45,733

43,451

176,823

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes (dollars per barrel)**
10.37

19.88

31.33

43.77

26.50

 
3.94

1.88

13.48

13.82

8.19

Realized refining margins (dollars per barrel)***
16.11

17.51

23.61

30.60

22.22

 
10.54

9.96

14.04

15.16

12.44

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Page 14

 
psxphillips66.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RECONCILIATION OF INCOME (LOSS) BEFORE INCOME TAXES 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
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
(52
)
139

(26
)
50

111

 
(130
)
59

190

(55
)
64

Plus:
 
 
 
 
 
 
 
 
 
 
 
Taxes other than income taxes
25

25

26

24

100

 
20

21

—

23

64

Depreciation, amortization and impairments
58

60

60

59

237

 
58

67

58

61

244

Selling, general and administrative expenses
11

12

11

16

50

 
11

12

12

13

48

Operating expenses
230

228

264

318

1,040

 
313

222

212

235

982

Other segment (income) expense
3

(14
)
—

2

(9
)
 
1

1

2

1

5

Realized refining margins
275

450

335

469

1,529

 
273

382

474

278

1,407

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total processed inputs (thousands of barrels)
33,051

35,195

35,132

32,954

136,332

 
27,414

35,304

36,635

34,736

134,089

Adjusted total processed inputs (thousands of barrels)
33,051

35,195

35,132

32,954

136,332

 
27,414

35,304

36,635

34,736

134,089

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes (dollars per barrel)**
(1.57
)
3.95

(0.74
)
1.52

0.81

 
(4.74
)
1.67

5.19

(1.58
)
0.48

Realized refining margins (dollars per barrel)***
8.32

12.77

9.53

14.18

11.20

 
9.95

10.83

12.95

7.96

10.49

 
 
 
 
 
 
 
 
 
 
 
 
WORLDWIDE
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
112

1,190

1,232

2,001

4,535

 
390

307

863

516

2,076

Plus:
 
 
 
 
 
 
 
 
 
 
 
Taxes other than income taxes
77

72

72

66

287

 
77

70

47

69

263

Depreciation, amortization and impairments
211

206

213

211

841

 
201

219

205

213

838

Selling, general and administrative expenses
41

47

47

69

204

 
45

49

50

54

198

Operating expenses
989

869

922

1,010

3,790

 
1,044

897

818

875

3,634

Equity in (earnings) losses of affiliates
64

(214
)
(297
)
(349
)
(796
)
 
6

(22
)
(144
)
(162
)
(322
)
Other segment (income) expense, net
(9
)
(19
)
2

(4
)
(30
)
 
(422
)
3

8

(2
)
(413
)
Proportional share of refining gross margins contributed by equity affiliates
227

409

488

528

1,652

 
184

191

305

339

1,019

Special items:
 
 
 
 
 
 
 
 
 
 
 
  Certain tax impacts
—

—

(1
)
(4
)
(5
)
 
—

—

—

(23
)
(23
)
Realized refining margins
1,712

2,560

2,678

3,528

10,478

 
1,525

1,714

2,152

1,879

7,270

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total processed inputs (thousands of barrels)
167,712

186,257

176,888

190,481

721,338

 
159,025

181,730

183,010

187,489

711,254

Adjusted total processed inputs (thousands of barrels)*
184,241

208,395

200,520

213,444

806,600

 
178,299

203,117

205,218

209,297

795,931

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes (dollars per barrel)**
0.67

6.39

6.96

10.50

6.29

 
2.45

1.69

4.72

2.75

2.92

Realized refining margins (dollars per barrel)***
9.29

12.28

13.36

16.53

12.99

 
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.
 
 
 
 
 
 
** 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 due to rounding.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Page 15

 
psxphillips66.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RECONCILIATION OF INCOME BEFORE INCOME TAXES 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
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
132

187

256

268

843

 
129

211

191

97

628

Plus:
 
 
 
 
 
 
 
 
 
 
 
Taxes other than income taxes*
(10
)
3

3

2

(2
)
 
1,278

1,375

1,409

1,419

5,481

Depreciation and amortization
4

3

3

3

13

 
4

3

3

4

14

Selling, general and administrative expenses
176

193

201

193

763

 
174

193

193

191

751

Equity in earnings of affiliates
(2
)
(2
)
(3
)
(1
)
(8
)
 
—

(2
)
(2
)
(1
)
(5
)
Other operating revenues*
(84
)
(98
)
(104
)
(93
)
(379
)
 
(1,354
)
(1,459
)
(1,499
)
(1,503
)
(5,815
)
Other segment income
—

—

—

—

—

 
(1
)
(14
)
—

—

(15
)
Special items:
 
 
 
 
 
 
 
 
 
 
 
Certain tax impacts
—

(56
)
(44
)
—

(100
)
 
—

—

—

—

—

Realized marketing fuel margins
216

230

312

372

1,130

 
230

307

295

207

1,039

 
 
 
 
 
 
 
 
 
 
 
 
Total fuel sales volumes (thousands of barrels)
155,780

177,725

173,072

191,119

697,696

 
156,548

176,419

181,110

189,851

703,928

 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes (dollars per barrel)
0.85

1.05

1.48

1.40

1.21

 
0.82

1.20

1.05

0.51

0.89

Realized marketing fuel margins (dollars per barrel)**
1.39

1.30

1.80

1.95

1.62

 
1.47

1.74

1.63

1.09

1.48

 
 
 
 
 
 
 
 
 
 
 
 
INTERNATIONAL
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
37

82

122

264

505

 
48

75

58

36

217

Plus:
 
 
 
 
 
 
 
 
 
 
 
Taxes other than income taxes*
(2
)
2

1

1

2

 
1,756

1,881

1,970

1,972

7,579

Depreciation and amortization
18

18

17

18

71

 
15

16

17

19

67

Selling, general and administrative expenses
70

71

66

73

280

 
60

63

70

71

264

Equity in earnings of affiliates
(18
)
(25
)
(22
)
(26
)
(91
)
 
(19
)
(22
)
(22
)
(20
)
(83
)
Other operating revenues*
(7
)
(6
)
(7
)
(12
)
(32
)
 
(1,760
)
(1,883
)
(1,973
)
(1,978
)
(7,594
)
Other segment (income) expense, net
(5
)
2

—

5

2

 
(1
)
1

(1
)
3

2

Marketing margins
93

144

177

323

737

 
99

131

119

103

452

Less: Margin for non-fuel related sales
12

14

10

8

44

 
11

11

10

10

42

Realized marketing fuel margins
81

130

167

315

693

 
88

120

109

93

410

 
 
 
 
 
 
 
 
 
 
 
 
Total fuel sales volumes (thousands of barrels)
24,534

24,717

25,441

26,257

100,949

 
23,885

24,229

24,596

24,636

97,346

 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes (dollars per barrel)
1.51

3.32

4.80

10.05

5.00

 
2.01

3.10

2.36

1.46

2.23

Realized marketing fuel margins (dollars per barrel)**
3.32

5.25

6.58

11.99

6.87

 
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 16