PHILLIPS Fact Book

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1 PHILLIPS Fact Book

2 Table of Contents Company Overview 1 Financial Highlights 4 Non-GAAP Reconciliations 5 Midstream 6 Chemicals 16 Refining 22 Marketing and Specialties 34 Contact Information Headquarters 3010 Briarpark Drive Houston, TX Phillips 66 Media Relations Telephone: Website: Registered Office 2711 Centerville Road Wilmington, DE Phillips 66 Investor Relations Kevin Mitchell, Vice President, Investor Relations C.W. Mallon, Manager, Investor Relations Telephone: Website: investor.phillips66.com An electronic file of this Fact Book can be obtained by visiting selecting the Investors tab and then Financial & Operating Information. The file is located in the Annual Reports section of that page.

3 Company Overview Phillips 66 is a diversified energy manufacturing and logistics company with a portfolio of integrated businesses: Midstream, Chemicals, Refining, and Marketing and Specialties. Our company processes, transports, stores and markets fuels and products globally. Phillips 66 Partners, our master limited partnership, is an integral part of the portfolio. A deep understanding of these businesses enables the company to grow and allocate capital to the best opportunities. Headquartered in Houston, Phillips 66 has 14,000 employees committed to safety and operating excellence. As of June 30, 2015, we had $50 billion in assets. The company s stock trades on the New York Stock Exchange under the ticker symbol PSX. Midstream Gathers, processes, transports and markets natural gas and natural gas liquids in the United States. This segment also transports crude oil and other feedstocks to our refineries and other locations; delivers refined and specialty products to market; and provides storage services for crude oil and petroleum products. The Midstream segment includes our investment in Phillips 66 Partners LP and our 50 percent equity investment in DCP Midstream, LLC. Chemicals Manufactures and markets petrochemicals and plastics worldwide. The segment consists of a 50 percent equity investment in Chevron Phillips Chemical Company LLC (CPChem). CPChem has advanced, proprietary product and process technologies; global marketing reach; cost-advantaged assets concentrated in resourcerich North America and the Middle East; and expertise in executing very large projects. Refining Refines crude oil and other feedstocks at 14 refineries in the United States and Europe, and focuses on operating excellence, optimization, yield improvement and increasing margins. The business has a global refining capacity of 2.2 million barrels of crude per day. Marketing and Specialties Markets refined petroleum products (such as gasolines, distillates and aviation fuels), mainly in the United States and Europe. In the U.S., fuel is distributed under the Phillips 66, Conoco and 76 brands. In Europe, we distribute through Jet and COOP branded outlets. The segment includes the manufacturing and marketing of finished lubricants and specialty products as well as power generation operations. 1

4 Company Overview Strategic Priorities The 14,000 people of Phillips 66 are executing the strategy that has guided the company since its creation in 2012: maintain strong operating excellence, deliver profitable growth, enhance returns on capital, grow shareholder distributions and develop our people into a high-performing organization. MAINTAIN STRONG OPERATING EXCELLENCE For Phillips 66 operating excellence encompasses personal safety, process safety, reliability, cost efficiency and environmental stewardship. Safety is our first priority. In 2014 the company achieved its safest year ever. We are determined to be the safest and most reliable company in our industry. By maintaining strong operating excellence, we protect each other, contribute to the well-being of the communities that support us and deliver quality products to our customers. DELIVER PROFITABLE GROWTH We are reshaping the company s portfolio by investing capital in higher-valued businesses. We continuously test our capital allocation decisions through a range of economic and market scenarios. Our 2015 capital budget is $4.6 billion, consisting of $3.4 billion of growth capital and $1.2 billion of sustaining capital. Most of the growth capital will fund infrastructure projects in our Midstream segment. The sustaining capital will focus on maintaining high levels of safety and reliability in our Refining business. Our Midstream segment is at the core of our growth plans. The segment consists of natural gas liquids (NGLs) and transportation businesses, Phillips 66 Partners, and our 50 percent interest in DCP Midstream. ENHANCE REFINING RETURNS Phillips 66 s Refining segment is a significant competitor in the domestic fuels industry, with 11 of its 14 refineries located in the United States. Through planned operating enhancements, we expect to improve capital efficiency. The majority of the improvement will come from improved product yields and a focus on controllable costs. In late 2014 we completed the sale of our interest in the Melaka Refinery in Malaysia, and in early 2015 sold the Bantry Bay terminal, a storage complex located in Ireland. The sale of these non-core assets enabled us to focus on the company s higher returning assets in the U.S. and Europe. GROW SHAREHOLDER DISTRIBUTIONS During 2014, we increased the dividend by 28 percent and returned $4.7 billion of capital to shareholders through dividends, share repurchases and the exchange of Phillips Specialty Products Inc. (PSPI) shares for Phillips 66 shares. Phillips 66 is committed to paying a regular dividend that is secure, has a competitive yield and increases annually. Through June 2015, the company increased the quarterly dividend an additional 12 percent. From the company s 2012 inception to Dec. 31, 2014, we have returned $8.4 billion of capital to shareholders. BUILD ON OUR HIGH-PERFORMING ORGANIZATION Our purpose is to provide energy and improve lives, and we are governed by three strongly held values: safety, honor and commitment. We strive to attract, train, develop and retain individuals with the knowledge and skills to implement our business strategy while supporting our values. Growth in our Chemicals segment is an important part of our strategy to create shareholder value. CPChem, our joint venture with Chevron, is one of the world s leading petrochemical companies. 2 PHILLIPS FACT BOOK

5 Operating Excellence TOTAL RECORDABLE RATES (Incidents per 200,000 hours worked) REFINING ENVIRONMENTAL METRICS Phillips 66 CPChem DCP Industry Average 1 OPERATING COSTS AND SG&A ($ in billions) Growth 0.3 REFINING UTILIZATION (Percent) Planned Maintenance & Turnarounds 3% 3% 4% % 93% 93% Growth component of operating costs is estimated based on forecasted growth spending. Continuous improvement in safety, environmental stewardship, reliability and cost efficiency is fundamental for our company and employees. We employ rigorous training and audit programs to drive ongoing improvement in both personal and process safety as we strive for zero incidents. Controlling operating expenses and overhead costs, within the context of our commitment to safety and environmental stewardship, is a high priority. We actively monitor these costs using various methodologies. Optimizing utilization rates at our refineries through reliable and safe operations enables us to capture the value available in the market. 1 Industry averages for: Phillips 66, American Fuel & Petrochemical Manufacturers refining data; CPChem, American Chemistry Council; DCP, Gas Processors Association. 3

6 Financial Highlights (Millions of dollars except per-share amounts) Sales and other operating revenues $ 161,212 $ 171,596 Income from continuing operations 4,091 3,682 Income from continuing operations attributable to Phillips 66 4,056 3,665 Per common share Basic Diluted Net income 4,797 3,743 Net income attributable to Phillips 66 4,762 3,726 Per common share Basic Diluted Cash and cash equivalents 5,207 5,400 Total assets 48,741 49,798 Long-term debt 7,842 6,131 Total equity 22,037 22,392 Cash from operating activities 3,529 6,027 Cash dividends declared per common share CUMULATIVE TOTAL SHAREHOLDER RETURN ($100 invested May 1, 2012) ADJUSTED EARNINGS ($ in millions) ADJUSTED RETURN ON CAPITAL EMPLOYED (ROCE) $250 Phillips 66 Peer Group* S&P 500 S&P 100 $200 $150 3,782 3,643 5,339 14% 14% 22% $100 5/1/12 12/31/12 12/31/13 12/31/14 *Dow, Marathon Petroleum, Tesoro and Valero PHILLIPS FACT BOOK

7 Non-GAAP Reconciliations RECONCILIATION OF ADJUSTED EARNINGS TO EARNINGS (Millions of dollars) Net income attributable to Phillips 66 (earnings) $ 4,762 $ 3,726 $ 4,124 Adjustments: Asset dispositions (494) (23) (106) Impairments Pending claims and settlements (10) (16) 34 Exit of business line 34 Tax law impacts (17) Premium on early debt retirement 89 Repositioning 232 Hurricane related 35 Lower-of-cost-or-market inventory adjustments 30 Discontinued operations (706) (61) (48) Adjusted earnings $ 3,782 $ 3,643 $ 5,339 Earnings per share of common stock (dollars) $ 8.33 $ 6.02 $ 6.48 Adjusted earnings per share of common stock (dollars) $ 6.62 $ 5.89 $ 8.38 RECONCILIATION OF ADJUSTED ROCE TO ROCE Consolidated Consolidated Consolidated (Millions of dollars) Numerator Net income $ 4,797 $ 3,743 $ 4,131 After-tax interest expense GAAP ROCE earnings 4,970 3,921 4,291 Special items (980) (83) 1,215 Adjusted ROCE earnings $ 3,990 $ 3,838 $ 5,506 Denominator GAAP average capital employed * $ 29,634 $ 28,163 $ 25,732 Discontinued operations (96) (191) (176) Adjusted average capital employed * $ 29,538 $ 27,972 $ 25,556 GAAP ROCE (percent) 17 % 14 % 17% Adjusted ROCE (percent) 14 % 14 % 22% *Total equity plus debt. 5

8 Midstream 6 PHILLIPS FACT BOOK SWEENY REFINERY

9 Gatefold - Page cuts short Key Phillips 66 U.S. Assets and Operations Midstream Overview OPERATING HIGHLIGHTS TRANSPORTATION Approximate miles of pipeline 18,000 18,000 18,000 Approximate number of railcars managed 1 11,400 10,000 8,500 Crude terminals Finished products terminals Combined total recordable rate (safety incidents per 200,000 hours) DCP MIDSTREAM (100%) Total natural gas throughput (TBtu/d) NGL produced Number of processing plants Number of NGL fractionators Natural gas storage capacity (BCF) Approximate miles of pipeline 67,900 67,000 63,000 Combined total recordable rate (safety incidents per 200,000 hours) NGL NGL fractionated Includes CPChem railcars that Phillips 66 manages. 2 In 2013, three plants began operations and one was shut down. Midstream This business gathers, processes, transports, fractionates and markets natural gas and natural gas liquids. In addition, the segment transports crude oil and other feedstocks to our refineries and other locations, delivers refined and specialty products to market and provides storage services for crude oil and petroleum products. Natural Gas Liquids (NGLs) Phillips 66 holds direct interests in three natural gas liquids (NGL) fractionators and gathering systems at strategic NGL hubs in the United States. We own: 22.5 percent of Gulf Coast Fractionators, which owns a fractionating facility in Mont Belvieu, Texas; 12.5 percent of the Enterprise Mont Belvieu fractionator; and 40 percent of the Conway fractionator, in Conway, Kansas. Along with fractionators, Phillips 66 owns interests in several NGL gathering and interstate transmission pipeline systems. These pipelines gather and deliver raw or mixed NGL, also referred to as Y-Grade, to supply the company s facilities at its joint-venture Borger Refinery in Texas and the fractionators in Mont Belvieu and Conway. Phillips 66 Partners holds one-third ownership interests in the Sand Hills and Southern Hills NGL pipelines, which connect NGL production from the Eagle Ford Shale Basin, Permian Basin and Midcontinent to Texas Gulf Coast markets. DCP Midstream operates the pipelines, which began service in Phillips 66 has supply and trading operations that manage NGL volume requirements for its refineries and fractionators. 7

10 Gatefold - Interior spread Key Phillips 66 U.S. Assets and Operations Tacoma MT Portland MT Washington Oregon Ferndale Refinery Ferndale Rail Terminal Renton Moses Lake British Columbia North Spokane Yellowstone Spokane Thompson Falls Rail Terminal Missoula Alberta Missoula Rail Terminal Yellowstone Bozeman Cut Bank Great Falls Helena Cody Glacier Niobrara Montana Heath Roundup Billings Refinery Saskatchewan Williston Basin Gammon M Palermo (UC) Bakken Sacagawea (UC) North Dak Dako Idaho Wyoming Mowry Seminoe Sheridan Niobrara- Mowry South Dakota Richmond MT San Francisco Refinery Santa Maria Santa Margarita Sacramento Rodeo Line 200 Line 400 Line 300 Torrance Wilmington Monterey- Temblor Junction McKittrick Line 100 Los Angeles Refinery California Los Angeles Colton Carson Nevada North Salt Lake City Utah Arizona Mancos Hermosa Casper Rock Springs Pioneer Mancos Rockies Express Lewis Albuquerque Niobrara Fm Niobrara New Mexico Seminoe Colorado Pierre -Niobrara ATA Powder River Powder River La Junta West Texas Crude Gathering Avalon- Bone Spring Denver Borger to Denver Sunray Amarillo WA Line Line 80 10" Southern Hills Bend Permian Basin Nebraska Rockies Express SAAL Odessa Lubbock Kansas Gold W Mississip Lime Me Blue Borger Woodfor Refinery Line Skelly-Belvieu Wichita Falls North Texas Crude Gathering Barn Texas Barnett-Woodford EZ (CPCHEM) Sand Hills Persall Eagle For Mexico

11 anitoba Ontario Quebec ota Minnesota Lake Superior ME ta Access Pipeline (UC) Cherokee 8" Oklahoma Iowa Arkansas Louisiana Wisconsin Illinois Jeff City Paola 8" 10" Gold Hartford MT Wood River Conway Blue Refinery E. St. ichita N. Louis pi Wichita S. Mulky Ark City 1&2 Missouri Standish Mount dford Ponca City Vernon Refinery d O ett d Chisholm OKC Lincoln Heartland** CPL 12" Skelly-Belvieu So. Hills Sweeny Refinery Kansas City Cushing Explorer KCPL Wood River Glenpool Woodford Lake Charles Coke Handling LCPL Beaumont GCF Pasadena Clemens Sweeny (UC) Hynesville- Bossier Fayetteville Freeport (UC) Des Moines Explorer LAGS Mississippi Westlake Lake Charles Refinery Tuscaloosa Pecan Grove MT Clifton Ridge MT Energy Transfer Crude Oil Pipeline (UC) Bayou Bridge Lake Michigan Floyd Alliance Refinery Neal Indiana New Albany Antrim Tennessee Alabama Ohio Rockies Express Kentucky Chattanooga Conasauga Chattanooga Lake Huron Lake Erie Devonian (Ohio) Georgia West Virginia Marcellus Utica North Carolina South Carolina Florida Lake Ontario Pennsylvania Virginia New York MD Linden Harbor NJ DE Phillips 66 Facilities* VT NH MA CT Refinery Rail Terminal Fractionator Products Terminal Crude Facility LPG Terminal Coke Terminal LPG Export Terminal MT Denotes Marine Terminal UC Denotes Under Construction Phillips 66 Pipelines Products Pipelines Crude Pipelines NGL/LPG Pipelines Out-of-Service Pipelines Shale Basins RI Bayway Refinery Bayway Rail Term. Tremley Pt. MT Phillips 66 Jointly Owned and Nonoperated Products Pipelines Crude Pipelines Natural Gas Pipelines NGL/LPG Pipelines *Includes facilities owned by Phillips 66 Partners LP. **The Heartland Pipeline is 419 miles. Phillips 66 has ownership interests in multiple segments totaling 49 miles. As of December 31, 2014

12 Midstream KEY PROJECTS During 2014, Phillips 66 began constructing Sweeny Fractionator One and the Freeport LPG Export Terminal. We ll invest approximately $3 billion in these two projects. The 100,000 barrel-per-day (BPD) Sweeny Fractionator One will be located close to our Sweeny Refinery in Old Ocean, Texas. Once completed, several nearby pipelines, including the Sand Hills Pipeline, will supply NGL feedstock to this fractionator. The fractionator products will be sold to petrochemical customers in the region and exported to international markets. Fractionator One is scheduled to be operating in the fall of The LPG Export Terminal, located at our marine terminal in Freeport, Texas, will help us meet the growing global market demand for LPG products and will leverage our transportation and storage infrastructure. Our terminal will have an initial export capacity of 4.4 million barrels per month. We expect startup in the second half of Both the fractionator and export terminal will include NGL storage and pipelines that connect to market hubs in Mont Belvieu, as well as a 100,000 barrel-per-day de-ethanizer unit to upgrade domestic propane for export. Commercially, we ve secured long-term, fee-based commitments for the use of Sweeny Fractionator One and the export terminal. Transportation Phillips 66 owns or leases logistics assets that provide strategic, timely and safe delivery of crude oil, refined products, natural gas and NGL. These assets consist of pipeline systems; refined product, crude oil and LPG storage terminals; a petroleum coke-handling facility; marine vessels; railcars; and a trucking joint venture, Sentinel Transportation LLC. At year-end 2014, Phillips 66 had 3,300 CPC-1232 specification railcars dedicated to transporting crude oil from North Dakota and heavier Canadian crudes for delivery to Phillips 66 s Ferndale and Bayway refineries. In June 2015, we began taking delivery of 350 new railcars that meet DOT 117 standards for increased shell thickness, jacketing and full-height heat shields. In 2014, we completed construction and startup of new rail offloading facilities at the Bayway and Ferndale refineries, with offloading capacities of 75,000 BPD and 30,000 BPD, respectively. KEY PROJECTS We re investing in our Transportation assets to support third party as well as Phillips 66 s operations. The Beaumont Terminal in Nederland, Texas, is the largest terminal in our portfolio and is strategically located on the U.S. Gulf Coast, providing deep-water access and multiple interconnections with major crude oil and refined products pipelines. Our terminal has the capacity to store 4.7 million barrels (MMBbl) of crude oil and 2.4 MMBbl of refined products, and its storage capacity is expandable to 16 million barrels. In addition, it has a barge dock and two marine docks capable of handling Aframax tankers as well as rail and truck loading and offloading facilities. In 2014, Phillips 66 became a partner in two joint ventures to develop the Dakota Access Pipeline (DAPL) and Energy Transfer Crude Oil Pipeline (ETCOP). We own 25 percent interests in both projects. DAPL is expected to deliver more than 450,000 BPD of crude oil from the Bakken/Three Forks production area in North Dakota to market centers in the Midwest. ETCOP will provide crude oil transportation service from the Midwest to the Gulf Coast, including our Beaumont Terminal. Both joint venture projects are expected to begin commercial operations in the fourth quarter of In January 2015, Phillips 66 Partners and Paradigm Energy Partners reached an agreement to create two joint ventures to develop midstream logistics infrastructure in North Dakota. Consisting of the Sacagawea Pipeline and the Palermo Rail Terminal, these projects will enhance logistical options for transporting crude oil in the Bakken region. Phillips 66 Partners Cross-Channel Connector Pipeline, planned for full operation in 2015, will have an initial capacity to transport up to 180,000 BPD of refined petroleum products from refineries and terminals on the south side of the Houston Ship Channel to third-party systems on the north side of the channel at Galena Park and East Houston. Within our Midstream business, as of Dec. 31, 2014, Phillips 66 managed more than 18,000 miles of crude oil, raw NGL, natural gas and refined products pipeline systems in the United States, including those partially owned or operated by affiliates. In addition, the company owned or operated 39 refined products terminals, 37 storage locations, five LPG terminals, 15 crude oil terminals and one petroleum coke exporting facility. 8 PHILLIPS FACT BOOK

13 MAJOR PIPELINE SYSTEMS as of March 31, 2015 NAME ORIGINATION/TERMINUS INTEREST SIZE MILES (Percent) CRUDE AND FEEDSTOCKS Glacier Cut Bank, MT/Billings, MT Line 80 Gaines, TX/Borger, TX 100 8, Line O Cushing, OK/Borger, TX WA Line Odessa, TX/Borger, TX , Cushing Cushing, OK/Ponca City, OK North Texas Crude Wichita Falls, TX Oklahoma Mainline Wichita Falls, TX/Ponca City, OK Clifton Ridge 1 /Lake Charles Refinery (PSXP) Clifton Ridge, LA/Westlake, LA Louisiana Crude Gathering Rayne, LA/Westlake, LA Sweeny Crude Sweeny, TX/Freeport, TX , 24, Line 100 Taft, CA/Lost Hills, CA 100 8, 10, Line 200 Lost Hills, CA/Rodeo, CA , Line 300 Nipomo, CA/Arroyo Grande, CA 100 8, 10, Line 400 Arroyo Grande, CA/Lost Hills, CA 100 8, 10, PETROLEUM PRODUCTS Harbor Woodbury, NJ/Linden, NJ Pioneer 1 Sinclair, WY/Salt Lake City, UT 50 8, Seminoe Billings, MT/Sinclair, WY Yellowstone Billings, MT/Moses Lake, WA Borger to Amarillo Borger, TX/Amarillo, TX 100 8, ATA Line Amarillo, TX/Albuquerque, NM 50 6, Borger-Denver McKee, TX/Denver, CO Gold Line 1 (PSXP) Borger, TX/East St. Louis, IL SAAL Amarillo, TX/Amarillo and Lubbock, TX SAAL Abernathy, TX/Lubbock, TX Cherokee South Ponca City, OK/Oklahoma City, OK Heartland 2 McPherson, KS/Des Moines, IA 50 8, Paola Products 1 (PSXP) Paola, KS/Kansas City, KS 71 8, Standish Marland Junction, OK/Wichita, KS Cherokee North Ponca City, OK/Wichita, KS 100 8, Cherokee East Medford, OK/Mt. Vernon, MO , Explorer 1 (PSXP) Texas Gulf Coast/Chicago, IL 14 24, 28 1, Sweeny to Pasadena 1 (PSXP) Sweeny, TX/Pasadena, TX 71 12, LAX Jet Line Wilmington, CA/Los Angeles, CA Torrance Products Wilmington, CA/Torrance, CA , Los Angeles Products Torrance, CA/Los Angeles, CA 100 6, Watson Products Line Wilmington, CA/Long Beach, CA Richmond Rodeo, CA/Richmond, CA NGL Powder River Douglas, WY/Borger, TX Skelly-Belvieu Skellytown, TX/Mont Belvieu, TX TX Panhandle Y1/Y2 Sherhan, TX/Borger, TX Chisholm Kingfisher, OK/Conway, KS Sand Hills 1,3 (PSXP) Permian Basin/Mont Belvieu, TX , Southern Hills 1,3 (PSXP) U.S. Midcontinent/Mont Belvieu, TX LPG Blue Line Borger, TX/East St. Louis, IL Conway to Wichita Conway, KS/Wichita, KS Medford Ponca City, OK/Medford, OK NATURAL GAS Rockies Express Meeker, CO/Clarington, OH , BCFD 1 Ownership interest excludes noncontrolling interests. 2 Total pipeline system is 419 miles. Phillips 66 has ownership interest in multiple segments totaling 49 miles. 3 Phillips 66 Partners has a direct one-third ownership in the pipeline entities operated by DCP Midstream. 9

14 Midstream FINISHED PRODUCTS TERMINALS as of March 31, 2015 FACILITY NAME LOCATION INTEREST STORAGE RACK (Percent) (MBbl) Albuquerque New Mexico Amarillo Texas Beaumont Texas 100 2,400 8 Billings Montana Bozeman Montana Colton California Denver Colorado Des Moines Iowa East St. Louis (PSXP) Illinois 71 2, Glenpool North Oklahoma Great Falls Montana Hartford (PSXP) Illinois 71 1, Helena Montana Jefferson City (PSXP) Missouri Kansas City (PSXP) Kansas 71 1, La Junta Colorado Lincoln Nebraska Linden New Jersey Los Angeles California Lubbock Texas Missoula Montana Moses Lake Washington Mount Vernon Missouri North Salt Lake Utah Oklahoma City Oklahoma Pasadena (PSXP) Texas 71 3, Ponca City Oklahoma Portland Oregon Renton Washington Richmond California Rock Springs Wyoming Sacramento California Sheridan Wyoming Spokane Washington Tacoma Washington Tremley Point New Jersey 100 1, Westlake Louisiana Wichita Falls Texas Wichita North (PSXP) Kansas PHILLIPS FACT BOOK

15 CRUDE AND OTHER TERMINALS as of March 31, 2015 FACILITY NAME LOCATION INTEREST STORAGE (Percent) (MBbl) Beaumont Texas 100 4,704 Billings Montana Borger Texas Clifton Ridge Marine Terminal (PSXP) Louisiana 71 3,410 Cushing Oklahoma Junction California Lake Charles, Coke Handling Louisiana 50 N/A McKittrick California Odessa Texas Pecan Grove (PSXP) Louisiana Ponca City Oklahoma 100 1,200 Santa Margarita California Santa Maria California Tepetate Louisiana Torrance California Wichita Falls Texas

16 Midstream Phillips 66 Partners Phillips 66 Partners is a growth-oriented, master limited partnership formed by Phillips 66. The partnership was created to own, operate, develop and acquire primarily fee-based crude oil, refined product and NGL pipelines, terminals, and other transportation and midstream assets. Headquartered in Houston, Phillips 66 Partners completed its initial public offering (IPO) in July 2013, and its common units trade on the New York Stock Exchange under the ticker symbol PSXP. The partnership executed more than $1 billion in acquisitions during its first full year of operations. Phillips 66 has majority ownership of Phillips 66 Partners and acts as the general partner with management and operating responsibility for the business. The remaining noncontrolling interest consists of limited partner (LP) common units. The partnership s assets consist of crude oil, refined products and NGL pipeline, storage and terminaling systems, which provide stable, fee-based revenues. Since the IPO and through the first quarter of 2015, Phillips 66 Partners has grown its distribution per LP unit by a 45 percent compound annual growth rate. PHILLIPS 66 PARTNERS as of March 31, 2015 FERNDALE Palermo Rail Terminal Paradigm Mountrail Enbridge (ND) Palermo Rail Terminal (UC) Paradigm CDP Third-Party Delivery Point Proposed DAPL Connection Paradigm CDP SACAGAWEA PIPELINE Dakota Access (DAPL) (PSX) (UC) SACAGAWEA PIPELINE Sacagawea (UC) BORGER Wichita North Gold Medford Spheres Kansas City PONCA CITY Jefferson City Explorer WOOD RIVER Hartford East St. Louis BAYWAY Sand Hills Southern Hills Eagle Ford Gathering Houston Cross-Channel Connector (UC) Explorer SWEENY Pasadena LAKE CHARLES Clifton Ridge Pecan Grove SWEENY TO PASADENA Sweeny to Pasadena UC NGL Pipeline Rail Crude Rack Products Terminal Medford Spheres Products Pipeline Crude Pipeline Crude Terminal Pipeline System Phillips 66 Refinery Denotes Under Construction Headquarters 12 PHILLIPS FACT BOOK

17 PHILLIPS 66 PARTNERS 1 as of March 31, 2015 PIPELINES NAME ORIGINATION/TERMINUS SIZE MILES CRUDE OIL PIPELINES Clifton Ridge Crude System Clifton Ridge/Lake Charles Refinery Pecan Grove/Clifton Ridge Shell/Clifton Ridge Eagle Ford Gathering System 2 Helena, TX PETROLEUM PRODUCTS PIPELINES Explorer 3 Texas Gulf Coast/Chicago, IL 24, 28 1, Sweeny to Pasadena Products System Sweeny Refinery/Pasadena, TX Sweeny Refinery/Pasadena, TX Hartford Connector Products System Wood River Refinery/Hartford, IL Hartford, IL/Explorer Pipeline Gold Line Products System Borger Refinery/Wichita, KS Wichita, KS/Paola, KS Paola, KS/East St. Louis, IL Paola, KS/Kansas City, KS Paola, KS/Kansas City, KS Cross-Channel Connector Pipeline Pasadena, TX/Pasadena, TX NGL PIPELINES Sand Hills 3 Permian Basin/Mont Belvieu, TX 20 1, Southern Hills 3 Midcontinent/Mont Belvieu, TX TERMINALS AND STORAGE ASSETS NAME TANK SHELL STORAGE RACK (MBbl) Clifton Ridge Crude System Clifton Ridge Terminal 3, Pecan Grove Storage 142 N/A Sweeny to Pasadena Products System Pasadena Terminal 3, Hartford Connector Products System Hartford Terminal 1, Gold Line Products System East St. Louis Terminal 2, Jefferson City Terminal Kansas City Terminal 1, Wichita North Terminal Medford Spheres 70 N/A Bayway Rail Rack N/A 75 Ferndale Rail Rack N/A 30 MARINE ASSETS NAME Clifton Ridge Crude System LOADING (Thousands of barrels per hour) Clifton Ridge Ship Dock 48 Pecan Grove Barge Dock 6 Hartford Connector Products System Hartford Barge Dock 3 1 Phillips 66 Partners ownership percentage for assets listed above is 100 percent, unless otherwise noted. 2 Eagle Ford Gathering System is a newly constructed asset. Phase I began operations in January Phillips 66 Partners has a direct one-third ownership interest in the Sand Hills and Southern Hills pipelines as well as a 19.5 percent interest in the Explorer Pipeline. 13

18 Midstream DCP Midstream DCP Midstream, LLC is owned equally by Phillips 66 and Spectra Energy. Headquartered in Denver, Colorado, with 3,300 employees and $14 billion of assets as of Dec. 31, 2014, the company is one of the largest natural gas gatherers and processors and one of the largest NGL producers and marketers in the United States. Its operations gather and transport raw natural gas and NGL through approximately 68,000 miles of pipeline. The collected gas is processed at 63 plants and treaters owned or operated by DCP Midstream. It also owns or operates 12 NGL fractionators. DCP Midstream sponsors a master limited partnership, DCP Midstream Partners LP (DCP Partners). The partnership gathers, compresses, treats, processes, transports, stores and sells natural gas. It also produces, fractionates, transports, stores and sells NGL and condensate. DCP Partners is also a leading distributor of propane. The partnership s units trade on the New York Stock Exchange under the ticker symbol DPM. With the addition of the Sand Hills, Southern Hills, Texas Express and Front Range pipelines, DCP Midstream has approximately 4,300 miles of NGL pipelines across its system, as of March 31, These pipelines connect plants in the Denver-Julesburg (DJ), Midcontinent and Permian basins and Eagle Ford shale to premium markets on the Texas Gulf Coast. KEY PROJECTS The 940-mile Southern Hills Pipeline, in service since 2013, improves market access for growing Midcontinent NGL production. Pipeline extensions lead to the Mont Belvieu market hub and to various receipt points in the Midcontinent. It has a capacity of 175,000 BPD. Phillips 66 Partners has a one-third direct interest in the entities that own these NGL pipelines. During the first quarter of 2014, DCP Partners began operating the newly built, 200-million-cubic-feet-per-day (MMCFD) Goliad Gas Plant in Goliad, Texas, and completed an expansion of its O Connor Plant in the DJ Basin, increasing the plant s capacity to 160 MMCFD. Another of DCP Partners joint-venture projects, the approximately 435-mile Front Range Pipeline, was placed into service in the first quarter of 2014 and is connected to the Texas Express Pipeline. These pipelines transport NGL from the DJ Basin to Mont Belvieu, Texas. DCP Partners Lucerne 2 Plant went into service in June The natural gas processing plant increases the partnership s processing capacity in the DJ Basin to approximately 400 MMCFD. DCP Partners also holds an ownership interest in a joint venture that constructed the Keathley Canyon Connector, a 215-mile subsea natural gas gathering pipeline for production from the Keathley Canyon, Walker Ridge and Green Canyon areas in the central deep-water Gulf of Mexico. The pipeline was completed in the first quarter of DCP Midstream s expansion of the National Helium Plant in Liberal, Kansas, is expected to be completed during the second half of The plant has a capacity of 600 MMCFD, and the project will enhance liquids recovery capability. DCP Midstream is also constructing a 200 MMCFD sour natural gas processing plant, the Zia II Plant, with associated gathering system expansions in the Permian Basin. The 1,045-mile Sand Hills Pipeline, placed in service in 2013, was developed to meet growing NGL demand in the Permian Basin and Eagle Ford shale. Its capacity increased to 240,000 BPD through asset optimization efforts. Further capacity increases to 350,000 BPD are possible with the installation of additional pump stations. 14 PHILLIPS FACT BOOK

19 DCP MIDSTREAM AND DCP MIDSTREAM PARTNERS ASSETS as of Dec. 31, 2014 Lucerne 2 O Connor WATTENBERG FRONT RANGE TEXAS EXPRESS Zia II SOUTHERN HILLS Rawhide BLACK LAKE G&P Plant Combined G&P/ Fractionator Facility Third-party Operated G&P Plant Third-party Operated Fractionator Expansion/Restart Under Construction Storage/Terminal Production Basin NGL Pipeline Natural Gas Pipeline SAND HILLS Goliad SEABREEZE/ WILBREEZE Keathley Canyon Connector DCP OPERATING DATA as of March 31, NAME GAS AND NGL GATHERING COMPANY-OWNED- PLANTS NET PLANT PLANT NGL AND TRANSMISSION AND-OPERATED OPERATED BY 2 THROUGHPUT 2 PRODUCTION SYSTEMS (Miles) PLANTS THIRD PARTY (MMcf/d) (BBtu/d) (MBbls/d) REGION North 5, ,057 1, Midcontinent 30, ,835 1, Permian 18, ,518 1, South 9, ,302 2, Logistics 4,040 Total 68, ,712 6, Includes the operations of DCP Partners. 2 While capacity is measured volumetrically (in cubic feet), plant throughput volumes are measured using heating value (in Btu). 15

20 Chemicals 16 PHILLIPS FACT BOOK CEDAR BAYOU FACILITY

21 Chemicals Overview OPERATING HIGHLIGHTS CPCHEM (100%) Number of manufacturing sites Plant gross capacity (BLb/Y) Net capacity (BLb/Y) Combined total recordable rate (safety incidents per 200,000 hours) Employees at year-end (thousands) Olefins and polyolefins capacity utilization CPChem Profile Headquartered in The Woodlands, Texas, CPChem had approximately 5,000 employees worldwide and $12 billion in assets as of Dec. 31, Its business has two primary operating segments: Olefins and Polyolefins (O&P) and Specialties, Aromatics and Styrenics (SA&S). The O&P segment produces and markets ethylene, propylene and other olefins products. Most of the ethylene is consumed within the O&P segment for the production of polyethylene, normal alpha olefins and polyethylene pipe. The SA&S segment manufactures and markets aromatics products, such as benzene, styrene, paraxylene and cyclohexane, as well as polystyrene and styrenebutadiene copolymers. SA&S also manufactures or markets a variety of specialty chemical products, including organosulfur chemicals, solvents, drilling chemicals and mining chemicals. CPCHEM IS THE: World s largest producer of high-density polyethylene. World s second-largest alpha olefins producer. Fourth-largest ethylene producer in North America. World s second-largest cyclohexane producer and largest cyclohexane marketer. CPCHEM S PRIMARY BRANDS INCLUDE: Marlex polyethylene, a premium extrusion and rigid packaging resin. MarFlex polyethylene, a superior flexible packaging resin. Soltex drilling mud additive, a high-temperature/ high-pressure fluid loss control additive for water-based muds. Scentinel Gas Odorants, which are added to natural gas to give it a distinctive smell, a vital safety measure. Through its subsidiaries and equity affiliates, CPChem has 34 manufacturing sites located in Belgium, China, Colombia, Qatar, Saudi Arabia, Singapore, South Korea and the United States as well as two research and development centers. These research centers provide petrochemical and polymer research and an advanced analytical sciences group to support new catalyst development, product and process development, and commercial process support for all of its major product lines. CPChem s plastics technical center is equipped with processing and testing technology for the molding and extruding of polymer and copolymer resins. 17

22 Chemicals CPChem s MarTECH loop slurry process for high-density polyethylene production is one of the most versatile and widely licensed processes in the world, with more than 80 commercial reactor facilities using this technology. Another technological achievement is CPChem s proprietary Aromax technology, the lowest-cost process for on-purpose production of benzene. Other proprietary technologies include: on-purpose 1-hexene technology; normal alpha olefins and polyalphaolefins production technology; proprietary acetylene reduction catalyst technology; K-Resin SBC technology; methyl mercaptan process technology; and first- and second-generation functional drilling fluid technology. KEY PROJECTS In 2014, CPChem began construction of its world-scale U.S. Gulf Coast Petrochemicals Project. The project includes a 3.3 BLb/Y ethane cracker, located at CPChem s Cedar Bayou facility in Baytown, Texas, and two 1.1 BLb/Y polyethylene facilities, located in Old Ocean, Texas, at the Sweeny facility. The approximately $6 billion project is scheduled to start up in mid-2017 and to increase CPChem s domestic olefins and polyolefins capacity by about one-third. In the second quarter of 2014, CPChem began operating the world s largest on-purpose 1-hexene plant, which has a capacity of 550 MMLb/Y, at its Cedar Bayou facility. Its primary product, 1-hexene, is a key component in the manufacturing of polyethylene, a plastic resin commonly converted into film, pipe, detergent bottles, and food and beverage containers. CPChem expanded its sulfur-based products capacity and constructed an on-purpose hydrogen sulfide plant at its Tessenderlo, Belgium, facility. The expansion increased organosulfur chemical capacity to 120 MMLb/Y at the site. The project started up in the second quarter of In the fourth quarter of 2014, CPChem completed an expansion of ethylene production at its Sweeny facility by adding a 10th furnace, which is expected to increase its annual production by 200 million pounds. An expansion project to increase CPChem s normal alpha olefins (NAO) capacity by 220 million pounds per year at its Cedar Bayou facility was completed in June Current full-range NAO capacity at the Cedar Bayou site is 1.6 BLb/Y. 18 PHILLIPS FACT BOOK

23 Gatefold - Page cuts short CPChem Worldwide Operations CPCHEM NET PETROCHEMICAL AND PLASTICS PRODUCTION CAPACITIES as of Dec. 31, 2014 U.S. MIDDLE EAST WORLDWIDE (MMLb/Y) (MMLb/Y) (MMLb/Y) O&P Ethylene 8,030 2,475 10,505 Propylene 2, ,180 High-density polyethylene 4,205 1,725 6,500 Low-density polyethylene Linear low-density polyethylene Polypropylene Normal alpha olefins 2, ,630 Polyalphaolefins Polyethylene pipe Total O&P 18,830 5,530 25,060 SA&S Benzene 1, ,530 Cyclohexane 1, ,455 Paraxylene 1,000 1,000 Styrene 1, ,875 Polystyrene ,070 K-Resin SBC 70 Specialty chemicals Polymer conversion Total SA&S 5,970 2,369 8,609 Capacities include CPChem s share in equity affiliates and exclude CPChem s NGL fractionation capacity. 19

24 Gatefold - Interior spread CPChem Worldwide Operations U.S. Operations Headquarters The Woodlands, Texas Allyn s Point, Connecticut* Polystyrene Borger, Texas Specialty Chemicals Cedar Bayou, Texas Ethylene Normal Alpha Olefins Propylene Polyalphaolefins Conroe, Texas Drilling Specialties Hanging Rock, Ohio* Polystyrene Joliet, Illinois* Polystyrene LaPorte, Texas PPS Compounding Marietta, Ohio* Polystyrene Orange, Texas Polyethylene Pasadena, Texas Polyethylene Pascagoula, Mississippi Benzene Paraxylene Port Arthur, Texas Ethylene Propylene Cyclohexane Sweeny, Texas Ethylene Propylene St. James, Louisiana* Styrene Torrance, California* Polystyrene Columbia * Polystyrene Manufacturing Facilities Research and Development Facilities Headquarters * Denotes Joint Venture

25 Belgium Specialty Chemicals Polyalphaolefins Saudi Arabia * Benzene Cyclohexane Ethylene Styrene Propylene Polyethylene Polypropylene Polystyrene 1-Hexene Motor Gasoline Qatar * Polyethylene 1-Hexene Normal Alpha Olefins South Korea * K-Resin SBC China * Polyethylene Singapore * Polyethylene

26 Chemicals WHOLLY OWNED CPCHEM FACILITIES as of Dec. 31, 2014 FACILITY/LOCATION PRODUCTS (MMLb/Y) Cedar Bayou Facility, Baytown, TX Ethylene 1,840 Propylene 1,030 Normal alpha olefins 1,565 1-hexene 550 Polyalphaolefins 105 Linear low-, low- and high-density polyethylene 2,625 Sweeny Facility, Old Ocean, TX Ethylene 4,310 Propylene 870 Port Arthur Facility, Port Arthur, TX Ethylene 1,880 Propylene 775 Cyclohexane 1,060 Pascagoula Facility, Pascagoula, MS Paraxylene 1,000 Benzene 1,600 Pasadena Plastics Complex, Pasadena, TX High-density polyethylene 2,180 Orange Chemical Facility, Orange, TX High-density polyethylene 970 Performance Pipe Division, nine locations in the United States Polyethylene pipe and pipe fittings 590 Borger Facility, Borger, TX Organosulfur chemicals 215 Specialty fuels and solvents 165 Beringen, Belgium Facility, Beringen, Belgium Polyalphaolefins 130 Tessenderlo Chemicals Facility, Tessenderlo, Belgium Organosulfur chemicals 120 Drilling Specialties, Conroe, TX Drilling specialty chemicals PHILLIPS FACT BOOK

27 JOINT-VENTURE CPCHEM FACILITIES as of Dec. 31, 2014 FACILITY/LOCATION CPCHEM OWNERSHIP PRODUCTS GROSS (Percent) (MMLb/Y) Qatar Chemical Company Ltd., Mesaieed, Qatar 49 Ethylene 1,150 High-density polyethylene 1,010 1-hexene 130 Qatar Chemical Company II Ltd., Mesaieed, Qatar 49 High-density polyethylene 770 Normal alpha olefins 760 Ras Laffan Olefins Company (RLOC), Ras Laffan, Qatar 26 Ethylene 2,870 Saudi Polymers Company, Jubail Industrial City, Saudi Arabia 35 Ethylene 2,690 Propylene 970 High-density polyethylene 2,425 Polypropylene 880 Polystyrene hexene 220 Saudi Chevron Phillips Company, Jubail Industrial City, Saudi Arabia 50 Benzene 1,865 Cyclohexane 790 Jubail Chevron Phillips Company, Jubail Industrial City, Saudi Arabia 50 Styrene 1,650 Ethylene 450 Propylene 330 Petrochemical Conversion Company, Jubail Industrial City 2, Saudi Arabia 50 Polymer conversion 128 Americas Styrenics, St. James, LA 50 Styrene 2,100 Americas Styrenics, Joliet, IL 50 Polystyrene 270 Americas Styrenics, Allyn s Point, CT 50 Polystyrene 250 Americas Styrenics, Hanging Rock, OH 50 Polystyrene 400 Americas Styrenics, Torrance, CA 50 Polystyrene 330 Americas Styrenics, Marietta, OH 50 Polystyrene 420 Americas Styrenics, Cartagena, Colombia 50 Polystyrene 160 Chevron Phillips Singapore, Chemicals (Private) Limited, Singapore 50 High-density polyethylene 880 Shanghai Golden Phillips Petrochemical Co., Jinshanwei, China 40 High-density polyethylene 320 K R Copolymer Co., Ltd., Yeosu, South Korea 60 K-Resin SBC

28 Refining 22 PHILLIPS FACT BOOK BILLINGS REFINERY

29 Refining Overview OPERATING HIGHLIGHTS Crude oil processed 2,108 2,079 2,064 Crude oil capacity utilization (percent) Clean product yield (percent) Distillate yield (percent) U.S. crude processing capacity 1, , ,806 3 International crude processing capacity Worldwide crude processing capacity 2, , ,236 3 Combined total recordable rate (safety incidents per 200,000 hours) As of Jan. 1, As of Jan. 1, As of Jan. 1, Refining Profile Our Refining segment processes crude oil and other feedstocks into petroleum products such as gasoline, diesel and aviation fuel. Phillips 66 has 14 refineries and a net crude oil processing capacity of 2.2 million barrels per day (MMBD). KEY STRATEGIES In 2014, Phillips 66 continued to pursue increased access to advantaged crude oil by expanding its own system capabilities and partnering with third-party transportation providers. Our 2014 U.S. refinery crude slate was 94 percent advantaged, compared with 74 percent in The increase was largely the result of processing 320,000 BPD of shale and similar tight oils and domestic crudes that were consistently trading at a discount to Brent crude. We continue to manage our Refining portfolio, selling our 47 percent interest in the Malaysian Refining Company in December 2014 and the Bantry Bay Terminal, in Ireland, in early The sale of these non-core assets enables the company to focus on its more profitable refining operation and further optimize returns. 23

30 Refining U.S. REFINING as of March 31, 2015 Ferndale Billings San Francisco Wood River Bayway Los Angeles Ponca City Borger Wholly Owned Refinery Joint-Venture Refinery Western/Pacific Central Corridor Gulf Coast Atlantic Basin/Europe Sweeny Alliance Lake Charles MILES EUROPE REFINING As of March 31, 2015 IRELAND Whitegate U.K. Humber GERMANY MILES MiRO Wholly Owned Refinery Joint-Venture Refinery Western/Pacific 24 PHILLIPS FACT BOOK

31 WORLDWIDE REFINING as of Dec. 31, 2014 REGION CRUDE MIX (Percent) AVERAGE AVERAGE NELSON CLEAN PRODUCT CRUDE 1 TOTAL GASOLINE 3 DISTILLATE 3 LIGHT/MEDIUM HEAVY COMPLEXITY YIELD FACTOR (Percent) Atlantic Basin/Europe Gulf Coast Central Corridor Western/Pacific Worldwide 2,178 2,468 1, As of Jan. 1, Includes Phillips 66 s share of joint-venture refineries. 3 Clean product capacities are maximum rates for each clean product category, independent of each other. The capacities are not additive when calculating the average clean product yield. 25

32 Refining REFINING WESTERN/PACIFIC Ferndale Refinery CRUDE DISTILLATE TOTAL NELSON COMPLEXITY FACTOR 55 80% GASOLINE CLEAN PRODUCT YIELD CAPABILITY Los Angeles Refinery CRUDE DISTILLATE TOTAL NELSON COMPLEXITY FACTOR 80 89% GASOLINE CLEAN PRODUCT YIELD CAPABILITY San Francisco Refinery CRUDE DISTILLATE TOTAL NELSON COMPLEXITY FACTOR 55 84% GASOLINE CLEAN PRODUCT YIELD CAPABILITY 26 PHILLIPS FACT BOOK

33 Our Ferndale Refinery is located on Puget Sound in Ferndale, Washington, about 20 miles south of the U.S.- Canada border. It processes a variety of domestic and foreign crude oils, including Alaskan North Slope, Canadian and U.S. shale crudes. With a deep-water dock, a 30,000 BPD rail unloading facility and access to existing crude oil pipelines, Ferndale has the flexibility to process a broad slate of crudes. Its facilities consist of a fluid catalytic cracker, an alkylation unit, hydro-treating units and a naphtha reformer. The refinery produces gasoline and diesel. Other products include residual fuel oil, which supplies the northwest marine transportation market. Most of Ferndale s refined products are distributed by pipeline and barge to major markets in the northwest United States. The Los Angeles Refinery comprises two linked facilities, five miles apart, in Carson and Wilmington, California, about 15 miles southeast of Los Angeles International Airport. Carson processes crude oil, and Wilmington upgrades the intermediate products to finished products. The refinery processes mainly heavy, high-sulfur crude oil. It receives domestic crude oil by pipeline from California and both foreign and domestic crude oils by tanker through a third-party terminal in the Port of Long Beach. The refinery produces a high percentage of gasoline, diesel and aviation fuels. Other products include fuel-grade petroleum coke. The facilities have fluid catalytic cracking, alkylation, hydrocracking, coking and naphtha reforming units. The refinery produces California Air Resources Board (CARB)-grade gasoline and diesel fuels. Refined products are distributed by pipeline and truck to customers in California, Nevada and Arizona. Our San Francisco Refinery has two facilities linked by a 200-mile pipeline: Santa Maria, in Arroyo Grande, California, and Rodeo, in the Bay Area. The refinery processes a mixture of heavy, high-sulfur and light sweet crude oils. It receives California crude oil by pipeline and both domestic and foreign crude oils by tanker. Semi-refined products from Santa Maria are sent by pipeline to Rodeo for upgrading into finished petroleum products. A large portion of the refinery s production is transportation fuel such as gasoline and diesel. Process facilities include coking, hydrocracking, hydrotreating and naphtha reforming units. The refinery produces CARB-grade gasoline and diesel fuels. The majority of refined products are distributed by pipeline, railcar and barge to customers in California. 27

34 REFINING CENTRAL CORRIDOR Billings Refinery 59 CRUDE 66 TOTAL 35 GASOLINE 25 DISTILLATE 14.0 NELSON COMPLEXITY FACTOR 89% CLEAN PRODUCT YIELD CAPABILITY Ponca City Refinery CRUDE DISTILLATE TOTAL NELSON COMPLEXITY FACTOR % GASOLINE CLEAN PRODUCT YIELD CAPABILITY Borger Refinery CRUDE DISTILLATE TOTAL NELSON COMPLEXITY FACTOR 50 90% GASOLINE CLEAN PRODUCT YIELD CAPABILITY Wood River Refinery CRUDE DISTILLATE TOTAL NELSON COMPLEXITY FACTOR 75 81% GASOLINE CLEAN PRODUCT YIELD CAPABILITY 28 PHILLIPS FACT BOOK 1 Crude capacity as of Jan. 1, Reflects Phillips 66 equity share.

35 Located in Billings, Montana, our Billings Refinery processes a mixture of Canadian heavy, high-sulfur crude oil plus domestic high-sulfur and low-sulfur crude oils, all delivered by pipeline and truck. The facilities have fluid catalytic cracking, naphtha reforming and hydrodesulfurization units. A delayed coker converts heavy, high-sulfur residue into higher-value light oils. The refinery produces a high percentage of gasoline, diesel and aviation fuels as well as fuel-grade petroleum coke. Finished petroleum products from the refinery are delivered by pipeline, railcar and truck. Pipelines transport most of the refined products to markets in Montana, Wyoming, Idaho, Utah, Colorado and Washington. The Ponca City Refinery, in Ponca City, Oklahoma, processes a mixture of light, medium and heavy crude oils. Most of the crude oil processed is received by pipeline from Oklahoma, Texas and Canada. Infrastructure improvements have enabled the delivery of increased volumes of locally produced advantaged crude oil by pipeline and truck. coke. Its facilities include two fluid catalytic cracking units, alkylation, delayed coking, naphtha reforming and hydrodesulfurization units. Finished petroleum products are shipped by truck, railcar and pipelines to markets throughout the Midcontinent region. The refinery is a high-conversion facility that produces a full range of products, including gasoline, diesel and aviation fuels; liquefied petroleum gas (LPG); and anode-grade petroleum Our Borger Refinery is in Borger, Texas, about 50 miles northeast of Amarillo. It s owned by WRB Refining LP, a 50/50 partnership between Phillips 66 and Cenovus Energy, and operated by Phillips 66. The refinery processes primarily medium sour crude oil and NGL delivered through pipelines from West Texas, the Texas Panhandle and Canada. Borger has a gross NGL fractionation capacity of 22,500 BPD 1. Borger has two fluid catalytic cracking units, alkylation, delayed coking, hydrodesulfurization and naphtha reforming. This enables it to produce a high percentage of transportation fuels such as gasoline, diesel and aviation fuels, as well as petroleum coke, NGL and solvents. Pipelines move refined products to West Texas, New Mexico, Colorado and the Midcontinent region. Located in Roxana, Illinois, and jointly owned by Phillips 66 and Cenovus Energy through the WRB Refining partnership, the Wood River Refinery is operated by Phillips 66. The refinery processes a mix of light, low-sulfur; heavy, high-sulfur; and high-acid crude oils. Wood River receives Canadian and domestic crude oils, including from U.S.- advantaged sources, and other foreign crude oil. The refinery produces a high percentage of transportation fuels, such as gasoline, diesel and aviation fuels. Other products include petrochemical feedstocks, asphalt and coke. Its operations consist of two fluid catalytic cracking units, alkylation, hydrocracking, two delayed coking units, naphtha reforming, hydro-treating and sulfur recovery. Finished products leave Wood River through pipelines and by rail, barge and truck. 1 Reflects Phillips 66 equity share. 29

36 Refining REFINING GULF COAST Alliance Refinery CRUDE DISTILLATE TOTAL NELSON COMPLEXITY FACTOR % GASOLINE CLEAN PRODUCT YIELD CAPABILITY Lake Charles Refinery CRUDE DISTILLATE TOTAL NELSON COMPLEXITY FACTOR 90 70% GASOLINE CLEAN PRODUCT YIELD CAPABILITY Sweeny Refinery CRUDE DISTILLATE TOTAL NELSON COMPLEXITY FACTOR % GASOLINE CLEAN PRODUCT YIELD CAPABILITY 30 PHILLIPS FACT BOOK 1 Crude capacity as of Jan. 1, 2015.

37 Our Alliance Refinery, located on the Mississippi River in Belle Chasse, Louisiana, 25 miles south of New Orleans, processes mainly light, low-sulfur crude oil. Alliance receives domestic crude oil from the Gulf of Mexico by pipeline and U.S. tight oil by marine transport. The refinery can also receive foreign crude oil by pipeline connected to the Louisiana Offshore Oil Port. The single-train refinery s facilities include fluid catalytic cracking, alkylation, coking, and hydrodesulfurization units, a naphtha reformer and aromatics units that enable it to produce a high percentage of gasoline, diesel and aviation fuels. Other products include petrochemical feedstocks, home heating oil and anode-grade petroleum coke. The majority of its refined products are distributed to customers in the eastern United States through major common-carrier pipeline systems and by barge. Located in Westlake, Louisiana, the Lake Charles Refinery processes primarily heavy, high-sulfur and high-acid crude oils, along with some light, sweet crude oil. It receives domestic Gulf Coast, U.S.- advantaged and foreign crude oils. Within the facilities are crude distillation, a fluid catalytic cracker, alkylation, a delayed coker and hydrodesulfurization units that enable the refinery to produce gasoline and diesel fuels, home heating oil and fuel-grade petroleum coke. The facilities also include a specialty coker and calciner, which produce graphite petroleum coke for the steel industry. Lake Charles produces a high percentage of gasoline and aviation fuels, along with home heating oil. The majority of its refined products are distributed by truck, railcar, barge or major common-carrier pipelines in the southeastern and eastern United States. In addition, refined products can be sold into export markets through the refinery s marine terminal. Our Sweeny Refinery, in Old Ocean, Texas, 65 miles southwest of Houston, processes mainly heavy, high-sulfur crude oil as well as some light, low-sulfur crude oil. Sweeny receives U.S.- advantaged and foreign crude oil primarily through wholly and jointly owned terminals on the Gulf Coast, including a deepwater terminal at Freeport, Texas. The refinery facilities include two fluid catalytic cracking units, delayed coking, alkylation, a naphtha reformer and hydrodesulfurization units. It operates nearby terminals and storage facilities in Freeport, Jones Creek and on the San Bernard River, along with pipelines that connect these facilities to the refinery. The refinery produces a high percentage of gasoline, diesel and aviation fuels. Other products include petrochemical feedstocks, home heating oil and fuel-grade petroleum coke. Refined products are distributed throughout the Midwest and southeastern United States by pipeline, barge and railcar. 31

38 REFINING ATLANTIC BASIN/EUROPE Bayway Refinery CRUDE DISTILLATE TOTAL NELSON COMPLEXITY FACTOR % GASOLINE CLEAN PRODUCT YIELD CAPABILITY Whitegate Refinery CRUDE DISTILLATE TOTAL NELSON COMPLEXITY FACTOR 15 GASOLINE 65% CLEAN PRODUCT YIELD CAPABILITY Humber Refinery CRUDE DISTILLATE TOTAL NELSON COMPLEXITY FACTOR 85 81% GASOLINE CLEAN PRODUCT YIELD CAPABILITY MiRO Refinery CRUDE DISTILLATE TOTAL NELSON COMPLEXITY FACTOR 25 86% GASOLINE CLEAN PRODUCT YIELD CAPABILITY 32 PHILLIPS FACT BOOK 1 Reflects Phillips 66 equity share.

39 The Bayway Refinery, located on the New York Harbor in Linden, New Jersey, processes mainly light, low-sulfur crude oil. Crude oil is supplied to the refinery by tanker from Canada and West Africa, and U.S.-advantaged crude is supplied through a combination of rail and marine transport. A new rail offloading facility began operations in August With a capacity of 75,000 BPD, this offloading facility, owned by Phillips 66 Partners, makes the receipt of additional advantaged crude by railcar possible. The refinery produces a high percentage of transportation fuels and petrochemical feedstocks, residual fuel oil and home heating oil. The facility distributes refined products to East Coast customers by barge, truck, pipeline and railcar. Bayway s refining units include fluid catalytic cracking, hydrodesulfurization units, a naphtha reformer, an alkylation unit and other processing equipment. Bayway also has a 775 MMLb/Y polypropylene plant. Our Whitegate Refinery, located in Cork, Ireland, is the country s only refinery and processes light, low-sulfur crude oil, sourced mostly from the North Sea and West Africa. Whitegate produces primarily transportation and heating fuels such as gasoline, diesel and kerosene that are distributed mostly inland, with some exported to the U.K. and Europe. The facility also produces feedstock for system refineries and international markets. The Humber Refinery is located in Northern Lincolnshire, United Kingdom. The crude oil it processes is supplied primarily from the North Sea and includes light-, low- and medium-sulfur and acidic crude oils. Humber generates a large proportion of gasoline, diesel and aviation fuels. Its fluid catalytic cracking unit/thermal cracking/coking configuration enables substantial volumes of other feedstocks, such as low-sulfur fuel oil and vacuum gas oil, to be processed alongside crude oil to fully use Humber s conversion capability. Humber has two coking units with associated calcining plants that upgrade the heavy bottoms and imported feedstocks into light oil products and specialty graphite and anode grade petroleum coke. Approximately 70 percent of the light oils produced in the refinery are marketed in the United Kingdom, with the other products exported worldwide. The Mineraloelraffinerie Oberrhein GmbH (MiRO) Refinery, located on the Rhine River in Karlsruhe, in southwest Germany, is a joint venture with Phillips 66 holding an percent interest. Phillips 66 processes mainly medium sweet and medium sour crude oils in its share of the refinery. Crude is delivered to the refinery by a cross-country pipeline from the port in Trieste, Italy. The facilities consist of three crude unit trains, fluid catalytic cracking, petroleum coking and calcining, hydrodesulfurization, naphtha reformers, isomerization, ethyl tert-butyl ether, and alkylation units that enable it to produce a high percentage of transportation fuels. Other products include petrochemical feedstocks, home heating oil, bitumen and anode and fuelgrade petroleum coke. Phillips 66 distributes the majority of its share of the refined products to customers in southwest Germany, northern Switzerland and western Austria by truck, railcar and barge. 33

40 Marketing and Specialties 34 PHILLIPS FACT BOOK

41 Marketing and Specialties Overview OPERATING HIGHLIGHTS Marketing gasoline sales 1,195 1,174 1,101 Marketing distillate sales Marketing petroleum product sales 2,191 2,158 2,103 Combined total recordable rate (safety incidents per 200,000 hours) Marketing and Specialties This business markets refined petroleum products (such as gasoline, distillates and aviation fuels) mainly in the United States under the Phillips 66, Conoco, and 76 brands and in Europe through Jet and COOP branded outlets. In addition, this segment includes the manufacturing and marketing of specialty products as well as power generation operations. PHILLIPS 66 MARKETS FUELS AND LUBRICANTS UNDER THESE BRANDS 35