EX-99.2 3 psx-2020331ersuppinfoe.htm EXHIBIT 99.2 Exhibit
 
 
 
 
 
 
 
 
 
 
 
 
 
Exhibit 99.2
Phillips 66 Earnings Release Supplemental Data
psxphillips66.jpg 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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




20,878

 
23,103

27,847

27,218

29,125

107,293

Equity in earnings of affiliates
365




365

 
516

648

499

464

2,127

Net gain on dispositions
1




1

 
1

—

18

1

20

Other income
—




—

 
38

23

36

22

119

Total Revenues and Other Income
21,244




21,244

 
23,658

28,518

27,771

29,612

109,559

 
 
 
 


 
 
 
 
 
 
 
 
 
Costs and Expenses


 
 
 
 
 
 
 
 
 
Purchased crude oil and products
18,440




18,440

 
21,055

24,554

23,806

26,114

95,529

Operating expenses
1,341




1,341

 
1,307

1,165

1,206

1,396

5,074

Selling, general and administrative expenses
319




319

 
366

408

416

491

1,681

Depreciation and amortization
342




342

 
331

334

336

340

1,341

Impairments
3,006




3,006

 
1

2

853

5

861

Taxes other than income taxes
157




157

 
128

97

105

79

409

Accretion on discounted liabilities
6




6

 
6

5

6

6

23

Interest and debt expense
111




111

 
119

115

109

115

458

Foreign currency transaction (gains) losses
—




—

 
5

9

(9
)
—

5

Total Costs and Expenses
23,722




23,722

 
23,318

26,689

26,828

28,546

105,381

Income (loss) before income taxes
(2,478
)



(2,478
)
 
340

1,829

943

1,066

4,178

Income tax expense (benefit)
(51
)



(51
)
 
70

325

150

256

801

Net Income (Loss)
(2,427
)



(2,427
)
 
270

1,504

793

810

3,377

Less: net income attributable to noncontrolling interests
69




69

 
66

80

81

74

301

Net Income (Loss) Attributable to Phillips 66
(2,496
)



(2,496
)
 
204

1,424

712

736

3,076

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Income (Loss) Attributable to Phillips 66 Per Share of Common Stock (dollars)
 
 
 
 
 
 
 
 
 
 
 
Basic
(5.66
)



(5.66
)
 
0.44

3.13

1.58

1.65

6.80

Diluted
(5.66
)



(5.66
)
 
0.44

3.12

1.58

1.64

6.77

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-Average Common Shares Outstanding (thousands)
 
 
 
 
 
 
 
 
 
 
 
Basic
441,345




441,345

 
457,599

453,681

449,005

445,332

451,364

Diluted
441,345




441,345

 
459,289

455,585

451,001

447,835

453,888

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effective tax rate (%)
2.1
%



2.1
%
 
20.6
%
17.8
%
15.9
%
24.0
%
19.2
%
Adjusted effective tax rate (%)
4.4
%



4.4
%
 
20.7
%
20.2
%
20.6
%
23.6
%
21.1
%



Page 1

 
psxphillips66.jpg 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
)



(702
)
 
316

423

(460
)
405

684

Chemicals
169




169

 
227

275

227

150

879

Refining
(2,261
)



(2,261
)
 
(198
)
983

856

345

1,986

Marketing and Specialties
513




513

 
205

353

498

377

1,433

Corporate and Other
(197
)



(197
)
 
(210
)
(205
)
(178
)
(211
)
(804
)
Income (loss) before income taxes
(2,478
)



(2,478
)
 
340

1,829

943

1,066

4,178

Less: income tax expense (benefit)
(51
)



(51
)
 
70

325

150

256

801

Net Income (Loss)
(2,427
)



(2,427
)
 
270

1,504

793

810

3,377

Less: net income attributable to noncontrolling interests
69




69

 
66

80

81

74

301

Net Income (Loss) Attributable to Phillips 66
(2,496
)



(2,496
)
 
204

1,424

712

736

3,076

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RECONCILIATION OF ADJUSTED INCOME BEFORE INCOME TAXES BY SEGMENT TO
ADJUSTED NET INCOME 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




200

 
203

245

248

250

946

NGL and Other
179




179

 
90

143

169

120

522

DCP Midstream
81




81

 
23

35

23

35

116

Total Midstream
460




460

 
316

423

440

405

1,584

Chemicals
193




193

 
227

275

269

173

944

Refining
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe
(196
)



(196
)
 
(7
)
258

279

61

591

Gulf Coast
(173
)



(173
)
 
(118
)
222

184

76

364

Central Corridor
223




223

 
56

520

408

333

1,317

West Coast
(255
)



(255
)
 
(150
)
(17
)
(32
)
(125
)
(324
)
Total Refining
(401
)



(401
)
 
(219
)
983

839

345

1,948

Marketing and Specialties
 
 
 
 
 
 
 
 
 
 
 
Marketing and Other
434




434

 
138

294

440

237

1,109

Specialties
54




54

 
67

59

58

50

234

Total Marketing and Specialties
488




488

 
205

353

498

287

1,343

Corporate and Other
(197
)



(197
)
 
(210
)
(205
)
(178
)
(211
)
(804
)
Adjusted income before income taxes
543




543

 
319

1,829

1,868

999

5,015

Less: adjusted income tax expense
24




24

 
66

370

385

236

1,057

Adjusted Net Income
519




519

 
253

1,459

1,483

763

3,958

Less: adjusted net income attributable to noncontrolling interests
69




69

 
66

80

81

74

301

Adjusted Net Income Attributable to Phillips 66
450




450

 
187

1,379

1,402

689

3,657



Page 2

 
psxphillips66.jpg

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
)



(1,161
)
 
—

—

(853
)
—

(853
)
Impairments by equity affiliates
—




—

 
—

—

(47
)
—

(47
)
Lower-of-cost-or-market inventory adjustments
(1
)



(1
)
 
—

—

—

—

—

Total Midstream
(1,162
)



(1,162
)
 
—

—

(900
)
—

(900
)
 
 
 
 
 
 
 
 
 
 
 
 
Chemicals
 
 
 
 
 
 
 
 
 
 
 
Lower-of-cost-or-market inventory adjustments
(24
)



(24
)
 
—

—

(42
)
(23
)
(65
)
Total Chemicals
(24
)



(24
)
 
—

—

(42
)
(23
)
(65
)
 
 
 
 
 
 
 
 
 
 
 
 
Refining
 
 
 
 
 
 
 
 
 
 
 
Impairments
(1,845
)



(1,845
)
 
—

—

—

—

—

Pending claims and settlements
—




—

 
21

—

—

—

21

Lower-of-cost-or-market inventory adjustments
(15
)



(15
)
 
—

—

—

—

—

Asset dispositions
—




—

 
—

—

17

—

17

Total Refining
(1,860
)



(1,860
)
 
21

—

17

—

38

 
 
 
 
 
 
 
 
 
 
 
 
Marketing and Specialties
 
 
 
 
 
 
 
 
 
 
 
Pending claims and settlements
37




37

 
—

—

—

—

—

Certain tax impacts
—




—

 
—

—

—

90

90

Lower-of-cost-or-market inventory adjustments
(12
)



(12
)
 
—

—

—

—

—

Total Marketing and Specialties
25




25

 
—

—

—

90

90

 
 
 
 
 
 
 
 
 
 
 
 
Corporate and Other
—




—

 
—

—

—

—

—

 
 
 
 
 
 
 
 
 
 
 
 
Total Special Items (Pre-tax)
(3,021
)



(3,021
)
 
21

—

(925
)
67

(837
)
 
 
 
 
 
 
 
 
 
 
 
 
Less: Income Tax Expense (Benefit)
 
 
 
 
 
 
 
 
 
 
 
Tax impact of pre-tax special items*
(75
)



(75
)
 
4

—

(235
)
17

(214
)
Other tax impacts
—




—

 
—

(45
)
—

3

(42
)
Total Income Tax Expense (Benefit)
(75
)



(75
)
 
4

(45
)
(235
)
20

(256
)
 
 
 
 
 
 
 
 
 
 
 
 
Less: Income (Loss) Attributable to Noncontrolling Interests
—




—

 
—

—

—

—

—

 
 
 
 
 
 
 
 
 
 
 
 
Total Phillips 66 Special Items (After-tax)
(2,946
)



(2,946
)
 
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
—




—

 
—

—

—

—

—

NGL and Other
—




—

 
—

—

—

—

—

DCP Midstream
(1,162
)



(1,162
)
 
—

—

(900
)
—

(900
)
Total Midstream
(1,162
)



(1,162
)
 
—

—

(900
)
—

(900
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Refining
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe
(441
)



(441
)
 
—

—

17

—

17

Gulf Coast
(670
)



(670
)
 
—

—

—

—

—

Central Corridor
(450
)



(450
)
 
21

—

—

—

21

West Coast
(299
)



(299
)
 
—

—

—

—

—

Total Refining
(1,860
)



(1,860
)
 
21

—

17

—

38

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Marketing and Specialties
 
 
 
 
 
 
 
 
 
 
 
Marketing and Other
37




37

 
—

—

—

90

90

Specialties
(12
)



(12
)
 
—

—

—

—

—

Total Marketing and Specialties
25




25

 
—

—

—

90

90



Page 3

 
psxphillips66.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
)



(2,427
)
 
270

1,504

793

810

3,377

Depreciation and amortization
342




342

 
331

334

336

340

1,341

Impairments
3,006




3,006

 
1

2

853

5

861

Accretion on discounted liabilities
6




6

 
6

5

6

6

23

Deferred income taxes
(47
)



(47
)
 
179

74

(138
)
68

183

Undistributed equity earnings
(4
)



(4
)
 
95

(139
)
19

(118
)
(143
)
Net gain on dispositions
(1
)



(1
)
 
(1
)
—

(18
)
(1
)
(20
)
Other
(139
)



(139
)
 
42

(101
)
(38
)
113

16

Net working capital changes
(519
)



(519
)
 
(1,401
)
251

(151
)
471

(830
)
Net Cash Provided by (Used in) Operating Activities
217




217

 
(478
)
1,930

1,662

1,694

4,808

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash Flows From Investing Activities
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures and investments
(923
)



(923
)
 
(1,097
)
(631
)
(867
)
(1,278
)
(3,873
)
Return of investments in equity affiliates
38




38

 
21

14

20

16

71

Proceeds from asset dispositions
1




1

 
82

1

1

2

86

Advances/loans—related parties
(8
)



(8
)
 
—

(95
)
—

(3
)
(98
)
Collection of advances/loans—related parties
—




—

 
—

95

—

—

95

Other
15




15

 
(18
)
42

—

7

31

Net Cash Used in Investing Activities
(877
)



(877
)
 
(1,012
)
(574
)
(846
)
(1,256
)
(3,688
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash Flows From Financing Activities
 
 
 
 
 
 
 
 
 
 
 
Issuance of debt
1,199




1,199

 
725

135

898

25

1,783

Repayment of debt
(7
)



(7
)
 
(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
)



(396
)
 
(364
)
(406
)
(402
)
(398
)
(1,570
)
Distributions to noncontrolling interests
(61
)



(61
)
 
(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
)



(24
)
 
307

(6
)
(19
)
(13
)
269

Net Cash Provided by (Used in) Financing Activities
276




276

 
(284
)
(787
)
(331
)
(1,109
)
(2,511
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effect of Exchange Rate Changes on Cash and Cash Equivalents
(9
)



(9
)
 
8

(3
)
(36
)
17

(14
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Change in Cash and Cash Equivalents
(393
)



(393
)
 
(1,766
)
566

449

(654
)
(1,405
)
Cash and cash equivalents at beginning of period
1,614




1,614

 
3,019

1,253

1,819

2,268

3,019

Cash and Cash Equivalents at End of Period
1,221




1,221

 
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




580

 
419

359

524

567

1,869

Chemicals
—




—

 
—

—

—

—

—

Refining
245




245

 
194

197

254

356

1,001

Marketing and Specialties
25




25

 
19

23

34

298

374

Corporate and Other
50




50

 
43

52

55

56

206

Adjusted Capital Spending
900




900

 
675

631

867

1,277

3,450

Capital expenditures and investments funded by certain joint venture partners (Midstream)
23




23

 
422

—

—

1

423

Consolidated Capital Expenditures and Investments
923




923

 
1,097

631

867

1,278

3,873

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proportional Share of Selected Equity Affiliates Capital Expenditures and Investments*
 
 
 
 
 
 
 
 
 
 
 
DCP Midstream (Midstream)
46




46

 
150

128

77

117

472

CPChem (Chemicals)
126




126

 
103

72

77

130

382

WRB (Refining)
37




37

 
37

44

54

40

175

Selected Equity Affiliates
209




209

 
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

 
psxphillips66.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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




200

 
203

245

248

250

946

NGL and Other
179




179

 
90

143

169

120

522

DCP Midstream
(1,081
)



(1,081
)
 
23

35

(877
)
35

(784
)
Income (Loss) before Income Taxes
(702
)



(702
)
 
316

423

(460
)
405

684

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted EBITDA*
 
 
 
 
 
 
 
PSXP**
312




312

 
274

307

313

336

1,230

Other Midstream
193




193

 
133

197

223

155

708

Transportation and NGL and Other
505




505

 
407

504

536

491

1,938

DCP Midstream
139




139

 
67

81

79

96

323

Adjusted EBITDA
644




644

 
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




98

 
103

124

128

128

483

NGL and Other
51




51

 
51

53

51

48

203

DCP Midstream
80




80

 
23

34

(23
)
34

68

Total
229




229

 
177

211

156

210

754

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and Amortization*
 
 
 
 
 
 
 
Transportation
38




38

 
36

37

40

39

152

NGL and Other
39




39

 
37

38

38

39

152

DCP Midstream
—




—

 
—

—

—

—

—

Total
77




77

 
73

75

78

78

304

* Excludes D&A of all equity affiliates.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating and SG&A Expenses*
 
 
 
 
 
 
 
Transportation
188




188

 
172

173

183

196

724

NGL and Other
68




68

 
128

76

76

83

363

DCP Midstream
—




—

 
—

—

—

—

—

Total
256




256

 
300

249

259

279

1,087

* Excludes operating and SG&A expenses of all equity affiliates.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Transportation Volumes (MB/D)
 
 
 
 
 
 
 
Pipelines*
3,178




3,178

 
3,176

3,417

3,443

3,544

3,396

Terminals**
3,148




3,148

 
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




198

 
234

232

203

227

224

* Excludes DCP Midstream.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100% DCP Midstream, LLC Results
 
 
 
 
 
 
 
 
 
 
 
Net Income (Loss) Attributable to Owners
50




50

 
45

68

(47
)
12

78

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and Amortization
99




99

 
103

101

100

100

404

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating and SG&A Expenses
202




202

 
246

257

257

267

1,027

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Interest Expense*
78




78

 
70

75

79

84

308

* Net of interest income.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital Expenditures and Investments
92




92

 
300

256

154

233

943

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected DCP Operating Statistics
 
 
 
 
 
 
 
Wellhead Volume (Bcf/D)
5.0




5.0

 
5.0

4.9

5.0

5.0

5.0

NGL Production (MB/D)
396




396

 
428

423

409

409

417

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-Average NGL Price*
 
 
 
 
 
 
 
DCP Midstream ($/gal)
0.39




0.39

 
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




148

 
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***
****




****

 
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. 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

 
psxphillips66.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
)



(702
)
 
316

423

(460
)
405

684

Plus:
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
77




77

 
73

75

78

78

304

EBITDA
(625
)



(625
)
 
389

498

(382
)
483

988

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
537




537

 
389

498

518

483

1,888

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




—

 
—

—

—

—

—

Proportional share of selected equity affiliates net interest
39




39

 
30

30

36

39

135

Proportional share of selected equity affiliates depreciation and amortization
68




68

 
55

57

61

65

238

Adjusted EBITDA
644




644

 
474

585

615

587

2,261

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted EBITDA by Business Line
 
 
 
 
 
 
 
100% PSXP Results
 
 
 
 
 
 
 
Income before income taxes
227




227

 
199

234

238

255

926

Plus:
 
 
 
 
 
 
 
 
 
 
 
Net interest expense
28




28

 
27

26

25

27

105

Depreciation and amortization
30




30

 
29

29

30

32

120

EBITDA
285




285

 
255

289

293

314

1,151

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




—

 
—

—

—

—

—

Proportional share of selected equity affiliates net interest
9




9

 
7

6

7

7

27

Proportional share of selected equity affiliates depreciation and amortization
18




18

 
12

12

13

15

52

Adjusted EBITDA*
312




312

 
274

307

313

336

1,230

* Does not include certain PSXP adjustments made for PSXP stand-alone reporting purposes.
 
 
 
 
 
 
 

Page 6

 
psxphillips66.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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




379

 
293

388

417

370

1,468

Plus:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
77




77

 
73

75

78

78

304

EBITDA*
456




456

 
366

463

495

448

1,772

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




—

 
—

—

—

—

—

Proportional share of selected equity affiliates net interest
17




17

 
15

14

14

15

58

Proportional share of selected equity affiliates depreciation and amortization
32




32

 
26

27

27

28

108

Adjusted EBITDA*
505




505

 
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
)



(1,081
)
 
23

35

(877
)
35

(784
)
Plus:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
None
—




—

 
—

—

—

—

—

EBITDA
(1,081
)



(1,081
)
 
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




81

 
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




22

 
15

16

22

24

77

Proportional share of selected equity affiliates depreciation and amortization
36




36

 
29

30

34

37

130

Adjusted EBITDA*
139




139

 
67

81

79

96

323

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


Page 7

 
psxphillips66.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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




169

 
227

275

227

150

879

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity in Earnings of Affiliate
166




166

 
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




354

 
434

525

417

262

1,638

Specialties, Aromatics and Styrenics
9




9

 
49

70

73

70

262

Corporate and Other
(26
)



(26
)
 
(34
)
(36
)
(34
)
(36
)
(140
)
Total
 
 
 
337




337

 
449

559

456

296

1,760

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (Loss) before Income Taxes
 
 
 
 
 
 
 
Olefins and Polyolefins
360




360

 
446

536

430

266

1,678

Specialties, Aromatics and Styrenics
10




10

 
57

78

78

74

287

Corporate and Other
(26
)



(26
)
 
(34
)
(36
)
(33
)
(36
)
(139
)
Total
 
 
 
344




344

 
469

578

475

304

1,826


 
 
 
 
 
 
 
 
 
 
 
Depreciation and Amortization
148




148

 
146

139

140

150

575

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Interest Expense*
16




16

 
20

17

19

16

72

* Net of interest income.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investing Cash Flows—Outflows/(Inflows)
 
 
 
 
 
 
 
Capital Expenditures and Investments
252




252

 
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
%



98
%
 
98
%
95
%
97
%
97
%
97
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Market Indicators*
 
 
 
 
 
 
 
 
 
 
 
U.S. Industry Prices
 
 
 
 
 
 
 
 
 
 
 
Ethylene, Average Acquisition Contract (cents/lb)
19.65




19.65

 
22.44

19.14

23.86

25.24

22.67

HDPE Blow Molding, Domestic Spot (cents/lb)
40.00




40.00

 
52.67

51.08

45.42

41.17

47.58

 
 
 
 
 
 
 
 
 
 
 
 
U.S. Industry Costs
 
 
 
 
 
 
 
 
 
 
 
Ethylene, Cash Cost Weighted Average Feed (cents/lb)
8.99




8.99

 
16.43

11.89

9.46

11.81

12.30

HDPE Blow Molding, Total Cash Cost (cents/lb)
32.89




32.89

 
35.46

31.97

36.68

38.15

35.56

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ethylene to High-Density Polyethylene Chain Cash Margin (cents/lb)
17.77




17.77

 
23.23

26.36

23.14

16.45

22.39

* Source: IHS, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of Chemicals Income before Income Taxes to Adjusted EBITDA
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
169




169

 
227

275

227

150

879

Plus:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
None
—




—

 
—

—

—

—

—

EBITDA
169




169

 
227

275

227

150

879

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Special Item Adjustments (pre-tax):
 
 
 
 
 
 
 
 
Lower-of-cost-or-market inventory adjustments
24




24

 
—

—

42

23

65

EBITDA, Adjusted for Special Items
193




193

 
227

275

269

173

944

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Adjustments (pre-tax):
 
 
 
 
 
 
 
 
Proportional share of selected equity affiliates income taxes
13




13

 
22

24

23

10

79

Proportional share of selected equity affiliates net interest
9




9

 
13

8

10

9

40

Proportional share of selected equity affiliates depreciation and amortization
103




103

 
105

106

104

100

415

Adjusted EBITDA
318




318

 
367

413

406

292

1,478


Page 8

 
psxphillips66.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
)



(637
)
 
(7
)
258

296

61

608

Gulf Coast
(843
)



(843
)
 
(118
)
222

184

76

364

Central Corridor
(227
)



(227
)
 
77

520

408

333

1,338

West Coast
(554
)



(554
)
 
(150
)
(17
)
(32
)
(125
)
(324
)
Income (Loss) before Income Taxes
(2,261
)



(2,261
)
 
(198
)
983

856

345

1,986

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (Loss) before Income Taxes ($/BBL)
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe
(15.41
)



(15.41
)
 
(0.17
)
5.04

5.93

1.16

3.11

Gulf Coast
(13.16
)



(13.16
)
 
(1.80
)
2.88

2.46

1.00

1.24

Central Corridor
(9.72
)



(9.72
)
 
3.22

19.81

15.26

12.61

12.95

West Coast
(19.87
)



(19.87
)
 
(4.89
)
(0.52
)
(0.93
)
(3.89
)
(2.49
)
Worldwide
(14.44
)



(14.44
)
 
(1.22
)
5.25

4.60

1.84

2.75

 
 
 
 
 
 
 
 
 
 
 
 
Realized Refining Margins ($/BBL)*
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe
2.38




2.38

 
7.76

10.85

11.48

7.06

9.33

Gulf Coast
6.76




6.76

 
5.44

8.20

8.34

7.45

7.42

Central Corridor
13.50




13.50

 
10.23

17.84

15.99

14.92

14.91

West Coast
4.80




4.80

 
6.25

9.94

10.11

10.22

9.18

Worldwide
7.11




7.11

 
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
)



(2
)
 
(3
)
(3
)
(3
)
(2
)
(11
)
Gulf Coast
1




1

 
—

(2
)
1

(1
)
(2
)
Central Corridor
(51
)



(51
)
 
84

133

69

45

331

West Coast
—




—

 
—

—

—

—

—

Total
(52
)



(52
)
 
81

128

67

42

318

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and Amortization*
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe
51




51

 
50

49

49

50

198

Gulf Coast
71




71

 
67

68

66

67

268

Central Corridor
34




34

 
33

34

34

34

135

West Coast
65




65

 
62

63

66

62

253

Total
221




221

 
212

214

215

213

854

* Excludes D&A of all equity affiliates.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating and SG&A Expenses*
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe
207




207

 
240

211

218

233

902

Gulf Coast
499




499

 
382

330

352

408

1,472

Central Corridor
142




142

 
146

141

131

154

572

West Coast
293




293

 
254

257

290

373

1,174

Total
1,141




1,141

 
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




16

 
20

13

17

15

65

Gulf Coast
240




240

 
90

29

44

94

257

Central Corridor
15




15

 
25

8

9

10

52

West Coast
58




58

 
13

17

50

113

193

Total
329




329

 
148

67

120

232

567

* Excludes turnaround expense of all equity affiliates.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Taxes Other than Income Taxes, excluding Excise Taxes
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe
19




19

 
15

11

12

14

52

Gulf Coast
37




37

 
23

16

23

11

73

Central Corridor
17




17

 
13

10

10

7

40

West Coast
31




31

 
24

21

23

17

85

Total
104




104

 
75

58

68

49

250

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign Currency Gains (Losses) Pre-Tax
1




1

 
(5
)
(7
)
10

2

—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Refining—Equity Affiliate Information
 
 
 
 
 
 
 
 
 
 
 
Equity in earnings (losses) of affiliates
(52
)



(52
)
 
81

128

67

42

318

Less: Share of equity affiliate gross margin included in Realized Refining Margin and other equity affiliate-related costs*
(156
)



(156
)
 
(277
)
(309
)
(273
)
(237
)
(1,096
)
Equity affiliate-related expenses not included in Realized Refining Margins
(208
)



(208
)
 
(196
)
(181
)
(206
)
(195
)
(778
)
Regional Totals
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe
(11
)



(11
)
 
(13
)
(14
)
(7
)
—

(34
)
Gulf Coast
2




2

 
—

(2
)
1

(1
)
(2
)
Central Corridor
(199
)



(199
)
 
(183
)
(165
)
(200
)
(194
)
(742
)
Total
(208
)



(208
)
 
(196
)
(181
)
(206
)
(195
)
(778
)
* Other costs associated with equity affiliates which do not flow through equity earnings.
 
 
 
 
 
 


Page 9

 
psxphillips66.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
)



(2,261
)
 
(198
)
983

856

345

1,986

Plus:
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
221




221

 
212

214

215

213

854

EBITDA
(2,040
)



(2,040
)
 
14

1,197

1,071

558

2,840

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Special Item Adjustments (pre-tax):
 
 
 
 
 
 
 
 
 
 
 
Impairments
1,845




1,845

 
—

—

—

—

—

Pending claims and settlements
—




—

 
(21
)
—

—

—

(21
)
Lower-of-cost-or-market inventory adjustments
15




15

 
—

—

—

—

—

Asset dispositions
—




—

 
—

—

(17
)
—

(17
)
EBITDA, Adjusted for Special Items
(180
)



(180
)
 
(7
)
1,197

1,054

558

2,802

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




—

 
—

—

1

(1
)
—

Proportional share of selected equity affiliates net interest
—




—

 
(1
)
(1
)
(1
)
—

(3
)
Proportional share of selected equity affiliates depreciation and amortization
78




78

 
71

69

70

71

281

Adjusted EBITDA
(102
)



(102
)
 
63

1,265

1,124

628

3,080

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Statistics
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe*
 
 
 
 
 
 
 
 
 
 
 
Crude Oil Charge Input (MB/D)
437




437

 
427

519

509

531

497

Total Processed Inputs (MB/D)
454




454

 
463

562

542

574

536

Crude Oil Capacity Utilization (%)
81
%



81
%
 
80
%
97
%
95
%
99
%
92
%
Clean Product Yield (%)
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




645

 
654

757

729

759

725

Total Processed Inputs (MB/D)
704




704

 
727

849

815

827

805

Crude Oil Capacity Utilization (%)
84
%



84
%
 
85
%
99
%
95
%
99
%
95
%
Clean Product Yield (%)
71
%



71
%
 
80
%
81
%
78
%
80
%
80
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Central Corridor*
 
 
 
 
 
 
 
 
 
 
 
Crude Oil Charge Input (MB/D)
471




471

 
445

521

517

509

498

Total Processed Inputs (MB/D)
487




487

 
466

538

531

526

515

Crude Oil Capacity Utilization (%)
89
%



89
%
 
86
%
101
%
100
%
99
%
97
%
Clean Product Yield (%)
88
%



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




279

 
307

317

351

318

323

Total Processed Inputs (MB/D)
306




306

 
341

359

375

349

356

Crude Oil Capacity Utilization (%)
77
%



77
%
 
84
%
87
%
97
%
87
%
89
%
Clean Product Yield (%)
93
%



93
%
 
88
%
81
%
85
%
76
%
83
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Worldwide—Including Proportionate Share of Equity Affiliates
 
 
 
 
 
 
 
 
 
 
 
Crude Oil Charge Input (MB/D)
1,832




1,832

 
1,833

2,114

2,106

2,117

2,043

Total Processed Inputs (MB/D)
1,951




1,951

 
1,997

2,308

2,263

2,276

2,212

Crude Oil Capacity Utilization (%)
83
%



83
%
 
84
%
97
%
97
%
97
%
94
%
Clean Product Yield (%)
82
%



82
%
 
85
%
84
%
84
%
84
%
84
%


Page 10

 
psxphillips66.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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




191

 
202

240

230

266

234

Distillates
174




174

 
185

241

227

234

222

Other
91




91

 
80

89

88

82

85

Total
456




456

 
467

570

545

582

541

* Includes our proportionate share of a refinery complex in Karlsruhe, Germany.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gulf Coast
 
 
 
 
 
 
 
 
 
 
 
Gasoline
234




234

 
296

348

312

332

322

Distillates
248




248

 
261

310

297

301

292

Other
221




221

 
165

192

208

192

190

Total
703




703

 
722

850

817

825

804

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Central Corridor*
 
 
 
 
 
 
 
 
 
 
 
Gasoline
245




245

 
244

260

256

267

257

Distillates
183




183

 
175

214

208

210

202

Other
60




60

 
49

67

71

51

59

Total
488




488

 
468

541

535

528

518

* Includes our proportionate share of the Borger Refinery and Wood River Refinery.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
West Coast
 
 
 
 
 
 
 
 
 
 
 
Gasoline
151




151

 
165

167

170

148

163

Distillates
134




134

 
136

124

148

116

131

Other
21




21

 
41

66

53

81

60

Total
306




306

 
342

357

371

345

354

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Worldwide—Including Proportionate Share of Equity Affiliates
 
 
 
 
 
 
 
 
 
 
 
Gasoline
 
 
 
821




821

 
907

1,015

968

1,013

976

Distillates
 
 
 
739




739

 
757

889

880

861

847

Other
 
 
 
393




393

 
335

414

420

406

394

Total
 
 
 
1,953




1,953

 
1,999

2,318

2,268

2,280

2,217

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Market Indicators*
 
 
 
 
 
 
 
 
 
 
 
Crude and Crude Differentials ($/BBL)
 
 
 
 
 
 
 
 
 
 
 
WTI
45.97




45.97

 
54.87

59.80

56.44

56.98

57.02

Brent
50.26




50.26

 
63.20

68.82

61.94

63.25

64.30

LLS
48.30




48.30

 
62.40

66.92

60.64

60.79

62.69

ANS
51.40




51.40

 
64.50

68.18

63.07

64.41

65.04

WTI less Maya
4.81




4.81

 
(3.91
)
(2.26
)
(0.20
)
4.06

(0.58
)
WTI less WCS (settlement differential)
20.53




20.53

 
12.29

10.67

12.24

15.83

12.76

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Natural Gas ($/MMBtu)
 
 
 
 
 
 
 
 
 
 
 
Henry Hub
1.88




1.88

 
2.89

2.51

2.33

2.35

2.52

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Product Margins ($/BBL)
 
 
 
 
 
 
 
 
 
 
 
Atlantic Basin/Europe
 
 
 
 
 
 
 
 
 
 
 
East Coast Gasoline less Brent
4.84




4.84

 
1.79

12.06

11.84

6.44

8.03

East Coast Distillate less Brent
14.93




14.93

 
18.05

14.27

17.43

18.66

17.10

Gulf Coast
 
 
 
 
 
 
 
 
 
 
 
Gulf Coast Gasoline less LLS
4.97




4.97

 
1.58

8.18

8.24

5.48

5.87

Gulf Coast Distillate less LLS
13.86




13.86

 
16.41

14.28

17.22

17.62

16.38

Central Corridor
 
 
 
 
 
 
 
 
 
 
 
Central Gasoline less WTI
7.70




7.70

 
9.72

18.71

15.28

10.75

13.61

Central Distillate less WTI
17.34




17.34

 
24.92

22.49

21.39

22.29

22.77

West Coast
 
 
 
 
 
 
 
 
 
 
 
West Coast Gasoline less ANS
13.32




13.32

 
11.83

23.50

19.48

16.85

17.92

West Coast Distillate less ANS
17.22




17.22

 
16.20

21.10

18.38

21.49

19.29

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Worldwide Market Crack Spread ($/BBL)**
9.82




9.82

 
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

 
psxphillips66.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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




471

 
138

294

440

327

1,199

Specialties
42




42

 
67

59

58

50

234

Income before Income Taxes
513




513

 
205

353

498

377

1,433

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before Income Taxes ($/BBL)
 
 
 
 
 
 
 
 
 
 
 
U.S.
1.79




1.79

 
0.60

1.09

1.66

1.42

1.22

International
6.58




6.58

 
2.25

4.81

5.19

2.01

3.58

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Realized Marketing Fuel Margins ($/BBL)*
 
 
 
 
 
 
 
 
 
 
 
U.S.
2.08




2.08

 
1.06

1.53

2.11

1.51

1.57

International
8.53




8.53

 
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




117

 
131

143

168

233

675

Specialties
81




81

 
100

93

83

74

350

Total
198




198

 
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




22

 
22

28

31

45

126

Specialties
—




—

 
11

7

21

20

59

Total
22




22

 
33

35

52

65

185

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and Amortization*
 
 
 
 
 
 
 
 
 
 
 
Marketing and Other
20




20

 
21

21

21

22

85

Specialties
5




5

 
5

4

4

5

18

Total
25




25

 
26

25

25

27

103

* Excludes D&A of all equity affiliates.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating and SG&A Expenses*
 
 
 
 
 
 
 
 
 
 
 
Marketing and Other
211




211

 
261

297

300

340

1,198

Specialties
31




31

 
36

36

39

38

149

Total
242




242

 
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




984

 
1,063

1,151

1,132

1,213

1,141

Distillates
 
 
 
854




854

 
759

898

914

1,106

920

Other
 
 
 
—




—

 
—

—

—

—

—

Total
 
 
 
1,838




1,838

 
1,822

2,049

2,046

2,319

2,061

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
International Marketing
 
 
 
 
 
 
 
 
 
 
 
Gasoline
 
 
 
82




82

 
88

89

90

89

89

Distillates
 
 
 
183




183

 
181

187

185

183

184

Other
 
 
 
20




20

 
18

19

16

20

18

Total
 
 
 
285




285

 
287

295

291

292

291

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Worldwide Marketing
 
 
 
 
 
 
 
 
 
 
 
Gasoline
 
 
 
1,066




1,066

 
1,151

1,240

1,222

1,302

1,230

Distillates
 
 
 
1,037




1,037

 
940

1,085

1,099

1,289

1,104

Other
 
 
 
20




20

 
18

19

16

20

18

Total
 
 
 
2,123




2,123

 
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




513

 
205

353

498

377

1,433

Plus:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
25




25

 
26

25

25

27

103

EBITDA
538




538

 
231

378

523

404

1,536

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Special Item Adjustments (pre-tax):
 
 
 
 
 
 
 
 
 
 
 
Pending claims and settlements
(37
)



(37
)
 
—

—

—

—

—

Certain tax impacts
—




—

 
—

—

—

(90
)
(90
)
Lower-of-cost-or-market inventory adjustments
12




12

 
—

—

—

—

—

EBITDA, Adjusted for Special Items
513




513

 
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




6

 
1

2

1

2

6

Proportional share of selected equity affiliates depreciation and amortization
7




7

 
3

2

3

3

11

Adjusted EBITDA
526




526

 
235

382

527

319

1,463



Page 12

 
psxphillips66.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
)



(197
)
 
(210
)
(205
)
(178
)
(211
)
(804
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Detail of Loss before Income Taxes
 
 
 
 
 
 
 
 
 
 
 
Net interest expense
(103
)



(103
)
 
(108
)
(105
)
(98
)
(104
)
(415
)
Corporate overhead and other
(94
)



(94
)
 
(102
)
(100
)
(80
)
(107
)
(389
)
Total
(197
)



(197
)
 
(210
)
(205
)
(178
)
(211
)
(804
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Interest Expense
 
 
 
 
 
 
 
 
 
 
 
Interest expense
(137
)



(137
)
 
(132
)
(133
)
(131
)
(139
)
(535
)
Capitalized interest
26




26

 
13

18

22

24

77

Interest income
8




8

 
11

10

11

11

43

Total
(103
)



(103
)
 
(108
)
(105
)
(98
)
(104
)
(415
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of Corporate and Other Loss before Income Taxes to Adjusted EBITDA
 
 
 
 
 
 
 
 
 
 
 
Loss before income taxes
(197
)



(197
)
 
(210
)
(205
)
(178
)
(211
)
(804
)
Plus:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest expense
103




103

 
108

105

98

104

415

Depreciation and amortization
19




19

 
20

20

18

22

80

EBITDA
(75
)



(75
)
 
(82
)
(80
)
(62
)
(85
)
(309
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjustments (pre-tax):
 
 
 
 
 
 
 
 
 
 
 
None
—




—

 
—

—

—

—

—

Adjusted EBITDA
(75
)



(75
)
 
(82
)
(80
)
(62
)
(85
)
(309
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign Currency Losses Pre-Tax
(2
)



(2
)
 
(1
)
(2
)
(1
)
(1
)
(5
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Phillips 66 Total Company Debt
 
 
 
 
 
 
 
 
 
 
 
Total Debt
12,963




12,963

 
11,298

11,439

11,925

11,763

11,763

Debt-to-Capital Ratio (%)
35
%



35
%
 
30
%
30
%
31
%
30
%
30
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Equity
23,639




23,639

 
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
)



(2,427
)
 
270

1,504

793

810

3,377

Plus:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income tax expense (benefit)
(51
)



(51
)
 
70

325

150

256

801

Net interest expense
103




103

 
108

105

98

104

415

Depreciation and amortization
342




342

 
331

334

336

340

1,341

Phillips 66 EBITDA
(2,033
)



(2,033
)
 
779

2,268

1,377

1,510

5,934

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Special Item Adjustments (pre-tax):
 
 
 
 
 
 
 
 
 
 
 
Impairments
3,006




3,006

 
—

—

853

—

853

Impairments by equity affiliates
—




—

 
—

—

47

—

47

Pending claims and settlements
(37
)



(37
)
 
(21
)
—

—

—

(21
)
Certain tax impacts
—




—

 
—

—

—

(90
)
(90
)
Lower-of-cost-or-market inventory adjustments
52




52

 
—

—

42

23

65

Asset dispositions
—




—

 
—

—

(17
)
—

(17
)
Phillips 66 EBITDA, Adjusted for Special Items
988




988

 
758

2,268

2,302

1,443

6,771

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Adjustments (pre-tax):
 
 
 
 
 
 
 
Proportional share of selected equity affiliates income taxes
13




13

 
22

24

24

9

79

Proportional share of selected equity affiliates net interest
54




54

 
43

39

46

50

178

Proportional share of selected equity affiliates depreciation and amortization
256




256

 
234

234

238

239

945

EBITDA attributable to Phillips 66 noncontrolling interests
(94
)



(94
)
 
(89
)
(102
)
(105
)
(95
)
(391
)
Phillips 66 Adjusted EBITDA
1,217




1,217

 
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


psxphillips66.jpg















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
)



(637
)
 
(7
)
258

296

61

608

Plus:
 
 
 
 
 
 
 
 
 
 
 
Taxes other than income taxes
19




19

 
15

11

12

14

52

Depreciation, amortization and impairments
492




492

 
50

49

49

50

198

Selling, general and administrative expenses
13




13

 
7

10

10

12

39

Operating expenses
194




194

 
233

201

208

221

863

Equity in losses of affiliates
2




2

 
3

3

3

2

11

Other segment (income) expense, net
(2
)



(2
)
 
6

4

(24
)
(2
)
(16
)
Proportional share of refining gross margins contributed by equity affiliates
16




16

 
17

19

19

14

69

Realized refining margins
97




97

 
324

555

573

372

1,824

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total processed inputs (MB)
41,335




41,335

 
41,682

51,172

49,895

52,757

195,506

Adjusted total processed inputs (MB)
41,335




41,335

 
41,682

51,172

49,895

52,757

195,506

 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes ($/BBL)**
(15.41
)



(15.41
)
 
(0.17
)
5.04

5.93

1.16

3.11

Realized refining margins ($/BBL)***
2.38




2.38

 
7.76

10.85

11.48

7.06

9.33

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GULF COAST
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
(843
)



(843
)
 
(118
)
222

184

76

364

Plus:
 
 
 
 
 
 
 
 
 
 
 
Taxes other than income taxes
37




37

 
23

16

23

11

73

Depreciation, amortization and impairments
741




741

 
67

68

66

70

271

Selling, general and administrative expenses
7




7

 
(2
)
8

7

10

23

Operating expenses
492




492

 
384

322

345

398

1,449

Equity in (earnings) losses of affiliates
(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




434

 
355

633

625

566

2,179

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total processed inputs (MB)
64,066




64,066

 
65,434

77,186

74,936

76,110

293,666

Adjusted total processed inputs (MB)
64,066




64,066

 
65,434

77,186

74,936

76,110

293,666

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes ($/BBL)**
(13.16
)



(13.16
)
 
(1.80
)
2.88

2.46

1.00

1.24

Realized refining margins ($/BBL)***
6.76




6.76

 
5.44

8.20

8.34

7.45

7.42

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CENTRAL CORRIDOR
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
(227
)



(227
)
 
77

520

408

333

1,338

Plus:
 
 
 
 
 
 
 
 
 
 
 
Taxes other than income taxes
17




17

 
13

10

10

7

40

Depreciation, amortization and impairments
469




469

 
33

34

34

34

135

Selling, general and administrative expenses
6




6

 
1

7

6

8

22

Operating expenses
136




136

 
145

134

125

146

550

Equity in (earnings) losses of affiliates
51




51

 
(84
)
(133
)
(69
)
(45
)
(331
)
Other segment (income) expense, net
(3
)



(3
)
 
(2
)
4

(3
)
1

—

Proportional share of refining gross margins contributed by equity affiliates
113




113

 
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




597

 
429

874

780

723

2,806

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total processed inputs (MB)
23,345




23,345

 
23,893

26,244

26,740

26,417

103,294

Adjusted total processed inputs (MB)*
44,291




44,291

 
41,896

48,932

48,853

48,364

188,045

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes ($/BBL)**
(9.72
)



(9.72
)
 
3.22

19.81

15.26

12.61

12.95

Realized refining margins ($/BBL)***
13.50




13.50

 
10.23

17.84

15.99

14.92

14.91

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Page 14

 
psxphillips66.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
)



(554
)
 
(150
)
(17
)
(32
)
(125
)
(324
)
Plus:
 
 
 
 
 
 
 
 
 
 
 
Taxes other than income taxes
31




31

 
24

21

23

17

85

Depreciation, amortization and impairments
364




364

 
62

63

66

62

253

Selling, general and administrative expenses
10




10

 
5

8

8

10

31

Operating expenses
283




283

 
249

249

282

363

1,143

Other segment expense, net
1




1

 
2

1

1

1

5

Realized refining margins
135




135

 
192

325

348

328

1,193

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total processed inputs (MB)
27,877




27,877

 
30,703

32,697

34,498

32,116

130,014

Adjusted total processed inputs (MB)
27,877




27,877

 
30,703

32,697

34,498

32,116

130,014

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss before income taxes ($/BBL)**
(19.87
)



(19.87
)
 
(4.89
)
(0.52
)
(0.93
)
(3.89
)
(2.49
)
Realized refining margins ($/BBL)***
4.80




4.80

 
6.25

9.94

10.11

10.22

9.18

 
 
 
 
 
 
 
 
 
 
 
 
WORLDWIDE
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
(2,261
)



(2,261
)
 
(198
)
983

856

345

1,986

Plus:
 
 
 
 
 
 
 
 
 
 
 
Taxes other than income taxes
104




104

 
75

58

68

49

250

Depreciation, amortization and impairments
2,066




2,066

 
212

214

215

216

857

Selling, general and administrative expenses
36




36

 
11

33

31

40

115

Operating expenses
1,105




1,105

 
1,011

906

960

1,128

4,005

Equity in (earnings) losses of affiliates
52




52

 
(81
)
(128
)
(67
)
(42
)
(318
)
Other segment (income) expense, net
(3
)



(3
)
 
7

4

(25
)
—

(14
)
Proportional share of refining gross margins contributed by equity affiliates
129




129

 
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




1,263

 
1,300

2,387

2,326

1,989

8,002

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total processed inputs (MB)
156,623




156,623

 
161,712

187,299

186,069

187,400

722,480

Adjusted total processed inputs (MB)*
177,569




177,569

 
179,715

209,987

208,182

209,347

807,231

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes ($/BBL)**
(14.44
)



(14.44
)
 
(1.22
)
5.25

4.60

1.84

2.75

Realized refining margins ($/BBL)***
7.11




7.11

 
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

 
psxphillips66.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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




299

 
98

203

312

303

916

Plus:
 
 
 
 
 
 
 
 
 
 
 
Taxes other than income taxes
2




2

 
2

3

3

(3
)
5

Depreciation and amortization
3




3

 
2

3

2

3

10

Selling, general and administrative expenses
127




127

 
155

183

184

221

743

Equity in earnings of affiliates
—




—

 
(1
)
(3
)
(3
)
(20
)
(27
)
Other operating revenues*
(84
)



(84
)
 
(82
)
(103
)
(101
)
(93
)
(379
)
Other segment income
—




—

 
—

—

—

—

—

Special items:
 
 
 
 
 
 
 
 
 
 
 
Certain tax impacts
—




—

 
—

—

—

(90
)
(90
)
Realized marketing fuel margins
347




347

 
174

286

397

321

1,178

 
 
 
 
 
 
 
 
 
 
 
 
Total fuel sales volumes (MB)
167,178




167,178

 
164,058

186,488

188,172

213,346

752,064

 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes ($/BBL)
1.79




1.79

 
0.60

1.09

1.66

1.42

1.22

Realized marketing fuel margins ($/BBL)**
2.08




2.08

 
1.06

1.53

2.11

1.51

1.57

 
 
 
 
 
 
 
 
 
 
 
 
INTERNATIONAL
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes
171




171

 
58

129

139

54

380

Plus:
 
 
 
 
 
 
 
 
 
 
 
Taxes other than income taxes
1




1

 
2

1

2

1

6

Depreciation and amortization
17




17

 
16

16

16

17

65

Selling, general and administrative expenses
63




63

 
62

61

61

65

249

Equity in earnings of affiliates
(22
)



(22
)
 
(22
)
(25
)
(27
)
(25
)
(99
)
Other operating revenues*
2




2

 
(6
)
(9
)
(10
)
(12
)
(37
)
Other segment (income) expense, net
—




—

 
(2
)
1

1

1

1

Marketing margins
232




232

 
108

174

182

101

565

Less: margin for nonfuel related sales
10




10

 
10

12

11

11

44

Realized marketing fuel margins
222




222

 
98

162

171

90

521

 
 
 
 
 
 
 
 
 
 
 
 
Total fuel sales volumes (MB)
25,979




25,979

 
25,796

26,837

26,796

26,834

106,263

 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes ($/BBL)
6.58




6.58

 
2.25

4.81

5.19

2.01

3.58

Realized marketing fuel margins ($/BBL)**
8.53




8.53

 
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
)



(2,478
)
 
340

1,829

943

1,066

4,178

Special items
3,021




3,021

 
(21
)
—

925

(67
)
837

Adjusted income before income taxes
543




543

 
319

1,829

1,868

999

5,015

 
 
 
 
 
 
 
 
 
 
 
 
Income tax expense (benefit)
(51
)



(51
)
 
70

325

150

256

801

Special items
75




75

 
(4
)
45

235

(20
)
256

Adjusted income tax expense
24




24

 
66

370

385

236

1,057

 
 
 
 
 
 
 
 
 
 
 
 
Effective tax rate (%)
2.1
%



2.1
%
 
20.6
%
17.8
%
15.9
%
24.0
%
19.2
%
Adjusted effective tax rate (%)
4.4
%



4.4
%
 
20.7
%
20.2
%
20.6
%
23.6
%
21.1
%


Page 16