PHILLIPS Fact Book

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1 PHILLIPS Fact Book

2 Table of Contents Company Overview 1 Financial Highlights 4 Midstream 6 Chemicals 20 Refining 26 Marketing and Specialties 38 Non-GAAP Reconciliations 42 Contact Information Headquarters 2331 CityWest Blvd. Houston, TX Phillips 66 Media Relations Telephone: Website: Registered Office 2711 Centerville Road Wilmington, DE Phillips 66 Investor Relations Rosy Zuklic, General Manager, 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. ON THE COVER: Phillips ,000 barrels-per-day NGL fractionator in Old Ocean, Texas.

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 LP, our master limited partnership, is an integral part of the portfolio. A deep understanding of these businesses enables the company to grow and to allocate capital to the best opportunities. Headquartered in Houston, Phillips 66 has 14,000 employees committed to safety and operating excellence. As of Dec. 31, 2015, we had $49 billion in assets. The company s stock trades on the New York Stock Exchange under the ticker symbol PSX, while Phillips 66 Partners trades under the ticker symbol PSXP. Midstream Gathers, processes, transports and markets natural gas, and transports, fractionates and markets 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 terminaling and 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 (DCP Midstream). 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 oil 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 employees 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 its employees to sustain 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 a core value. The company s safety record in 2015 tied for its best ever. Phillips 66 is determined to be the safest and most reliable company in its industry. By maintaining strong operating excellence, we protect each other, contribute to the well-being of the communities that support us, deliver quality products to customers and enhance shareholder value. 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 2016 consolidated capital budget is $3.9 billion, consisting of $2.6 billion of growth capital and $1.3 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 2016 capital budget excludes our portion of planned capital spending by joint ventures DCP Midstream, CPChem and WRB totaling $1.4 billion, all of which are expected to be self-funded. The Midstream segment is at the core of our growth plans. The segment consists of natural gas liquids (NGL) and transportation businesses, Phillips 66 Partners, and our 50 percent interest in DCP Midstream. Through our joint venture with Chevron, CPChem, we continue to invest in our high-return Chemicals segment. CPChem is one of the world s leading petrochemical companies, and its U.S. Gulf Coast petrochemicals project is approximately 80 percent complete with startup planned for the second half of ENHANCE RETURNS ON CAPITAL A disciplined capital allocation process ensures that we focus investments in projects that generate competitive returns throughout the business cycle. 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 drive efficiency and improve returns. The majority of the improvement will come from higher product yields and a focus on controllable costs. In early 2015, we sold the Bantry Bay terminal, a storage complex located in Ireland. And in August 2016, we announced the sale of our Whitegate Refinery, located near Cork, Ireland. The transaction is expected to close in the third quarter of GROW SHAREHOLDER DISTRIBUTIONS During 2015, we increased the dividend by 12 percent and returned $2.7 billion of capital to shareholders through dividends and share repurchases. Phillips 66 is committed to paying a regular dividend that is secure, has a competitive yield and increases annually. In May 2016, Phillips 66 announced a 12.5 percent increase in the quarterly dividend, the sixth increase since the company s formation. From the company s 2012 inception to June 30, 2016, we have returned $12.3 billion of capital to shareholders. BUILD ON PHILLIPS 66 s 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. Our employees are committed to building capability, pursuing excellence and doing the right thing. We strive to attract, train, develop and retain individuals with the knowledge and skills to implement our business strategy and the character to live our values. 2 PHILLIPS FACT BOOK

5 Texas-Based Midstream Assets FREEPORT TERMINAL BEAUMONT MARINE TERMINAL CLEMENS STORAGE CAVERNS 3

6 Financial Highlights (Millions of Dollars Except Per Share Amounts) Net income attributable to Phillips 66 $ 4,227 $ 4,762 $ 3,726 Midstream Chemicals 962 1, Refining 2,555 1,771 1,747 Marketing and Specialties 1,187 1, Corporate (490) (393) (431) Adjusted earnings 4,193 3,782 3,643 Midstream Chemicals 952 1, Refining 2,527 1,576 1,734 Marketing and Specialties Corporate (481) (393) (431) Adjusted EBITDA 8,513 7,792 7,408 Midstream 843 1,170 1,067 Chemicals 1,701 2,101 1,710 Refining 4,774 3,449 3,583 Marketing and Specialties 1,516 1,401 1,413 Corporate (321) (329) (365) Average Capital Employed 31,749 29,595 28,130 Capital Expenditures and Investments 5,764 3,773 1,779 Debt-to-capital ratio 27 % 28 % 21 % Net-debt-to-capital ratio 20 % 13 % 3 % Cash and cash equivalents 3,074 5,207 5,400 Total assets 48,580 48,692 49,769 Total debt 8,887 8,635 6,125 Total equity 23,938 22,037 22,392 Cash from operating activities 5,713 3,529 6,027 Cash dividends paid per share of common stock (dollars) CUMULATIVE TOTAL SHAREHOLDER RETURN ($100 invested on May 1, 2012) ADJUSTED EARNINGS ($ in millions) ADJUSTED RETURN ON CAPITAL EMPLOYED (ROCE) $300 $250 Phillips 66 Peer Group * S&P 500 S&P 100 $200 4,193 3,782 3,643 14% 14% 14% $150 $100 5/1/12 12/31/12 12/31/13 12/31/14 12/31/ * Celanese, Delek, Dow, Eastman Chemical, Energy Transfer, Enterprise Products, HollyFrontier, Huntsman, Marathon Petroleum, Oneok, PBF Energy, Targa Resources, Tesoro, Valero, Western Refining, Westlake Chemical 4 PHILLIPS FACT BOOK

7 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) REFINING UTILIZATION (Percent) Planned Maintenance & Turnarounds 3% 3% 4% 5% % 94% 93% 93% 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. By optimizing utilization rates at our refineries through reliable and safe operations we are able to capture the value available in the market. 1 Industry averages for: Phillips 66, American Fuel & Petrochemical Manufacturers (U.S. refining sector); CPChem, American Chemistry Council; DCP, Gas Processors Association. 5

8 Midstream 6 PHILLIPS FACT BOOK SWEENY FRACTIONATOR ONE

9 Midstream Overview OPERATING HIGHLIGHTS NGL NGL fractionated TRANSPORTATION Approximate miles of pipeline 18,000 18,000 18,000 Approximate number of railcars managed 1 12,300 11,400 10,000 Crude-dedicated railcars 3,700 3,500 2,000 Crude oil terminals Finished products terminals LPG terminals Storage locations Combined total recordable rate (safety incidents per 200,000 hours) DCP MIDSTREAM (100%) Total natural gas throughput (TBtu/d) NGL produced Combined total recordable rate (safety incidents per 200,000 hours) Includes CPChem railcars that Phillips 66 manages. 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. This segment consists of three business lines: NGL, Transportation and DCP Midstream. BEAUMONT TERMINAL 7

10 Key Phillips 66 and Phillips 66 Partners U.S. Assets and Operations As of May 31, 2016 Key Phillips 66 and Phillips 66 Partners U.S. Assets and Operations Richmond (MT) Tacoma (MT) Portland (MT) Sacramento Rodeo Ferndale Refinery Ferndale Rail Terminal* Renton Moses Lake North Spokane Yellowstone Spokane Thompson Falls Rail Terminal Missoula North Salt Lake City Missoula Rail Terminal Yellowstone Bozeman Cutbank Great Falls Helena Glacier Casper Rock Springs Pioneer Rockies Express Beartooth Bighorn Roundup Billings Refinery Seminoe Seminoe Sheridan Powder River Palermo Rail Terminal* Sacagawea (UC)* Rockies Express Dakota Access P Denver San Francisco Refinery Santa Maria Line 200 Line 400 Line 300 Junction Terminal Line 100 Powder River La Junta Borger to Denver Southern Hills* Wichita N Torrance Wilmington Los Angeles Refinery Los Angeles Colton Carson Refinery Rail Terminal Fractionator Pipeline System Products Terminal Crude Oil Terminal LPG Terminal Coke Terminal Underground Storage MT Denotes Marine Terminal UC Denotes Under Construction GCF Denotes Gulf Coast Fractionator Albuquerque ATA West Texas Crude Gathering Sunray Amarillo WA Line Line 80 SAAL Odessa Lubbock Gold* Blue Borger Refinery Borger Skelly-Belvieu Wichita Falls North Texas Crude Medford* Line O Cheroke So Refinery Rail Terminal Fractionator Pipeline System Products Terminal Crude Oil Terminal LPG Terminal Coke Terminal Underground Storage MT Denotes Marine Terminal UC Denotes Under Construction GCF Denotes Gulf Coast Fractionator Operated Pipelines Products Pipeline Crude Oil Pipeline NGL/LPG Pipeline Idle Pipeline Operated Pipelines Products Pipeline Crude Oil Pipeline NGL/LPG Pipeline Idle Pipeline Jointly Owned or Non-Operated Pipelines Products Pipeline Crude Oil Pipeline Natural Gas Pipeline NGL/LPG Pipeline * Denotes Phillips 66 Partners Asset Shale Basins Eagle Ford Gather Pipeline System Sand Hills*

11 Powder River Des Moines Rockies Express Lincoln Chisholm e uth Denver wder River unta ipeline DAPL (UC) Lincoln Heartland ng.* Skelly-Belvieu Conway Borger to Denver Kansas City* KCPL Blue Wichita S. Cherokee North/Brown Line Standish* Mount Vernon Ponca City Refinery So. Hills* Explorer* Sunray Amarillo WA Line Paola Cushing Explorer* Line 80 Cherokee East Glenpool North Des Moines Jefferson Gold* City* Oklahoma City Terminal Oklahoma Crude Line Southern Hills* SAAL Odessa Borger Refinery Borger Lubbock Gold* Explorer* Blue Skelly-Belvieu Wichita Falls North Texas Crude Lake Charles Refinery Medford* E. St. Louis* Wichita N.* Line O Energy Transfer (UC) Chisholm Cherokee South Hartford (MT)* Wood River Refinery Heartland Conway Kansas City* Paola KCPL Wichita S. Cherokee North/Brown Line Standish* Mount Vernon Ponca City Refinery Cushing Rockies Express Pasadena* Sweeny Refinery Cherokee East Gold* Glenpool North Blue Oklahoma City Terminal Oklahoma Crude Line Lake Charles Coke Handling Westlake LCPL GCF Jefferson City* Explorer* Bayou Bridge* Beaumont (MT) Clemens Freeport (MT, UC) Clemens Caverns* Sweeny Fractionator One* Linden Lake Charles Refinery Clifton Ridge (MT)* Pecan Grove (MT)* E. St. Louis* Harbor Louisiana Crude Gathering Bayou Bridge (UC)* Hartford (MT)* Wood River Refinery Bayway Refinery Bayway Rail Term.* Tremley Pt. (MT) Alliance Refinery R ing * Sweeny Refinery Alliance Refinery

12 Midstream Natural Gas Liquids Phillips 66 holds interests in four natural gas liquids (NGL) fractionators and gathering systems at strategic NGL hubs in the United States. The 100,000 barrelsper-day (BPD) Sweeny Fractionator One is located in Old Ocean, Texas, and owned by Phillips 66 Partners. In addition, Phillips 66 owns: 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 Old Ocean, Mont Belvieu and Conway, as well as the Mont Belvieu market center. Phillips 66 has supply and trading operations that manage NGL volume requirements for its refineries and fractionators. In December 2015, Phillips 66 began operating Sweeny Fractionator One, which is within our Sweeny Refinery complex and supplies purity ethane and LPG to the petrochemical industry and heating markets. The fractionator is supported by 250 miles of new pipelines and the Clemens Caverns storage facility located near Brazoria, Texas, with connectivity to local petrochemical customers, the Mont Belvieu market hub and our marine terminal in Freeport, Texas. In 2016 Phillips 66 Partners acquired the fractionator and associated caverns. During 2015, construction progressed on the Freeport LPG Export Terminal located at the site of our existing marine terminal in Freeport, Texas. The terminal expansion will leverage our transportation and storage infrastructure to supply petrochemical, heating and transportation markets globally. In addition, a 100,000 BPD unit to upgrade domestic propane for export is being installed near Sweeny Fractionator One. Upon completion, which is expected by year-end 2016, the LPG export terminal will have an initial export capacity of 150,000 BPD of LPG with a ship-loading rate of 36,000 barrels per hour. The existing marine terminal is currently exporting 10,000 to 15,000 BPD of natural gasoline (C5+) from Sweeny Fractionator One. Sweeny Fractionator One and the Freeport LPG Export Terminal represent a combined capital investment of more than $3 billion. FREEPORT LPG EXPORT TERMINAL 8 PHILLIPS FACT BOOK

13 Transportation Phillips 66 owns or leases logistics assets that provide environmentally safe, strategic and timely 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 trucks. 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 MMBbl of crude oil and 2.4 MMBbl of refined products. We currently have 3.2 MMBbl of additional crude and products storage capacity under construction, 2 million of which are expected to be in service by the end of The terminal s storage capacity is expandable to 16 MMBbl. 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. Construction has progressed on our two crude oil pipeline systems that are being developed by joint ventures: Dakota Access Pipeline (DAPL) and Energy Transfer Crude Oil Pipeline (ETCOP). We own 25 percent interests in both joint ventures. DAPL is expected to deliver 470,000 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. Mechanical completion of both joint venture pipeline projects is expected in the fourth quarter of BEAUMONT TERMINAL (TODAY) 7.1 MMBbl of storage capacity BEAUMONT TERMINAL (FUTURE PLAN) Long-term plan is to expand facility to 16 MMBbl of total capacity 9

14 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 in July 2013, and its common units trade on the New York Stock Exchange under the ticker symbol PSXP. The partnership has executed more than $3 billion in acquisitions in the last three years. The partnership continues to make progress on its organic growth projects. In April 2016, Bayou Bridge Pipeline, LLC, (a joint venture between Phillips 66 Partners, Energy Transfer Partners (ETP) and Sunoco Logistics Partners (SXL)) began operations on the segment of its pipeline from Nederland, Texas to Lake Charles, Louisiana. Progress continues on the section from Lake Charles to St. James, Louisiana, with commercial operations for this segment expected to begin in the second half of This remaining section of the pipeline will be 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 limited partner (LP) common units are held by the public. The partnership s assets consist of crude oil, refined products and NGL pipeline, storage and terminaling systems, and an NGL fractionator, which provide stable, fee-based revenues. Since the IPO and through the first quarter of 2016, Phillips 66 Partners has grown its distribution per LP unit by a 39 percent compound annual growth rate. 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 PSXP now also owns Sweeny Fractionator One and the associated Clemens Storage Caverns. PALERMO RAIL TERMINAL 10 PHILLIPS FACT BOOK

15 constructed by ETP. ETP and SXL each hold a 30 percent interest in the joint venture. On Dec. 1, 2015, Phillips 66 Partners acquired Phillips 66 s 40 percent equity interest in Bayou Bridge. In December 2015 Phillips 66 Partners began operating the Palermo Rail Terminal, which provides railcar-loading from truck deliveries and is located on a 710-acre site near Palermo, North Dakota. Its current capacity of 100,000 BPD is expandable to 200,000 BPD. Phillips 66 Partners holds a 70 percent interest in the joint venture that owns the terminal. By the end of 2016, the terminal is expected to connect to the Sacagawea Pipeline, currently under construction, which will further enhance logistical options for transporting crude from the Bakken region. Phillips 66 Partners will operate the Sacagawea Pipeline and owns 44 percent of this asset. MEDFORD SPHERES 11

16 Midstream DCP Midstream DCP Midstream, LLC is owned equally by Phillips 66 and Spectra Energy. Headquartered in Denver, Colorado, with 2,900 employees and $14 billion of assets as of December 31, 2015, DCP Midstream is one of the largest natural gas gatherers and processors and one of the largest NGL producers and marketers in the United States. As of December 31, 2015, DCP Midstream has natural gas storage capacity of 13 billion cubic feet (BCF). Its operations gather and transport raw natural gas and NGL through approximately 66,200 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 recovers and sells 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. Including the Sand Hills, Southern Hills, Texas Express and Front Range pipelines, DCP Midstream has approximately 4,600 miles of NGL pipelines across its system, as of December 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. During 2015, the Sand Hills Pipeline laterals were placed into service. Pipeline capacity expansion is underway and expected to be in service in mid Construction began in March 2015 on DCP Partners gathering system in the DJ Basin, named the Grand Parkway gathering project. This 25-mile gathering expansion went into service in early 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, with DCP Midstream holding another 400 MMCFD of capacity in the DJ Basin. 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 placed into service in the first quarter of DCP Midstream s expansion of the National Helium Plant in Liberal, Kansas, was completed during the second half of The plant has a capacity of 600 MMCFD, and the project enhances liquids recovery capability. DCP Midstream completed a 200 MMCFD sour natural gas processing plant, the Zia II Plant, in the fourth quarter of 2015, with associated gathering system expansions in the Permian Basin. DCP MIDSTREAM PARTNERS GOLIAD PLANT 12 PHILLIPS FACT BOOK

17 DCP MIDSTREAM AND DCP MIDSTREAM PARTNERS ASSETS as of December 31, 2015 Wattenberg Front Range Texas Express Southern Hills Panola Black Lake Sand Hills Seabreeze/Wilbreeze G&P Plant Combined G&P/ Fractionator Facility Third-party Operated G&P Plant Third-party Operated Fractionator Expansion/Restart NGL Pipeline Natural Gas Pipeline Production Basin Keathley Canyon Connector 13

18 Midstream PHILLIPS 66 MAJOR PIPELINE SYSTEMS as of May 31, 2016* NAME ORIGINATION/TERMINUS INTEREST SIZE LENGTH GROSS (Percent) (Miles) CRUDE AND FEEDSTOCKS Cushing Cushing, OK/Ponca City, OK Glacier Cut Bank, MT/Billings, MT Line O Cushing, OK/Borger, TX Line 80 Gaines, TX/Borger, TX 100 8, 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, Louisiana Crude Gathering Rayne, LA/Westlake, LA North Texas Crude Wichita Falls, TX Oklahoma Mainline Wichita Falls, TX/Ponca City, OK Sweeny Crude Sweeny, TX/Freeport, TX , 24, WA Line Odessa, TX/Borger, TX , LPG Blue Line Borger, TX/East St. Louis, IL Brown Line Ponca City, OK/Wichita, KS 100 8, Conway to Wichita Conway, KS/Wichita, KS Medford Ponca City, OK/Medford, OK Sweeny NGL Lines Sweeny, TX/Mont Belvieu and Freeport, TX NATURAL GAS Rockies Express Meeker, CO/Clarington, OH , BCFD NGL Chisholm Kingfisher, OK/Conway, KS Powder River Sage Creek, WY/Borger, TX Skelly-Belvieu Skellytown, TX/Mont Belvieu, TX Sweeny NGL Brazoria, TX/Sweeny, TX TX Panhandle Y1/Y2 Sher-Han, TX/Borger, TX *Table updated to reflect significant asset changes. 14 PHILLIPS FACT BOOK

19 PHILLIPS 66 MAJOR PIPELINE SYSTEMS as of May 31, 2016 NAME ORIGINATION/TERMINUS INTEREST SIZE LENGTH GROSS (Percent) (Miles) PETROLEUM PRODUCTS ATA Line Amarillo, TX/Albuquerque, NM 50 6, Borger to Amarillo Borger, TX/Amarillo, TX 100 8, Borger-Denver McKee, TX/Denver, CO Cherokee East Medford, OK/Mt. Vernon, MO , Cherokee North Ponca City, OK/Arkansas City, KS Cherokee South Ponca City, OK/Oklahoma City, OK Harbor Woodbury, NJ/Linden, NJ Heartland 1 McPherson, KS/Des Moines, IA 50 8, LAX Jet Line Wilmington, CA/Los Angeles, CA Los Angeles Products Torrance, CA/Los Angeles, CA 100 6, Pioneer Sinclair, WY/Salt Lake City, UT 50 8, Richmond Rodeo, CA/Richmond, CA SAAL Abernathy, TX/Lubbock, TX SAAL Amarillo, TX/Abernathy, TX Seminoe Billings, MT/Sinclair, WY Torrance Products Wilmington, CA/Torrance, CA , Watson Products Line Wilmington, CA/Long Beach, CA Yellowstone Billings, MT/Moses Lake, WA Total pipeline system is 419 miles. Phillips 66 has ownership interest in multiple segments totaling 49 miles. BEAUMONT TERMINAL 15

20 Midstream PHILLIPS 66 FINISHED PRODUCTS TERMINALS as of May 31, 2016 GROSS GROSS 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 Glenpool North Oklahoma Great Falls Montana Helena Montana 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 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 PHILLIPS FACT BOOK

21 PHILLIPS 66 CRUDE TERMINALS as of May 31, 2016 GROSS NAME LOCATION INTEREST STORAGE (Percent) (MBbl) Beaumont Texas 100 4,704 Billings Montana Borger Texas Cushing Oklahoma Junction California McKittrick California Odessa Texas Ponca City Oklahoma 100 1,200 Santa Margarita California Santa Maria California Tepetate Louisiana Torrance California Wichita Falls Texas OTHER TERMINALS as of May 31, 2016 GROSS NAME LOCATION INTEREST LOADING 1 PETROLEUM COKE Lake Charles Louisiana 50 N/A (Percent) RAIL Beaumont Texas Missoula Montana Thompson Falls Montana MARINE Beaumont Texas Portland Oregon Richmond California Tacoma Washington Tremley Point New Jersey Rail in thousands of barrels daily ; Marine in thousands of barrels per hour. 17

22 Midstream PHILLIPS 66 PARTNERS as of May 31, 2016 PIPELINES ACTIVE THROUGHPUT NAME ORIGINATION/TERMINUS INTEREST SIZE LENGTH (Percent) (Miles) CRUDE OIL PIPELINES Bayou Bridge Pipeline Nederland, TX/Lake Charles, LA N/A N/A Clifton Ridge Crude System Clifton Ridge/Lake Charles Refinery Pecan Grove/Clifton Ridge Shell/Clifton Ridge Eagle Ford Gathering System Helena, TX Tilden, TX/Whitsett, TX 100 6, PETROLEUM PRODUCTS PIPELINES Explorer Texas Gulf Coast/Chicago, IL , 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/Galena Park, TX Standish Pipeline Marland Junction, OK/Wichita, KS NGL PIPELINES Sand Hills Permian Basin/Mont Belvieu, TX , Southern Hills Midcontinent/Mont Belvieu, TX FERNDALE RAIL RACK 18 PHILLIPS FACT BOOK

23 TERMINALS, STORAGE AND FRACTIONATION ASSETS TANK SHELL STORAGE ACTIVE TERMINALING FRACTIONATION NAME INTEREST (Percent) (MBbl) Clifton Ridge Crude System Clifton Ridge Terminal 100 3, N/A Pecan Grove Storage N/A N/A Sweeny to Pasadena Products System Pasadena Terminal 100 3, N/A Hartford Connector Products System Hartford Terminal 100 1, N/A Gold Line Products System East St. Louis Terminal 100 2, N/A Jefferson City Terminal N/A Kansas City Terminal 100 1, N/A Wichita North Terminal N/A Medford Spheres N/A N/A Palermo Rail Terminal N/A Bayway Rail Rack 100 N/A 75 N/A Ferndale Rail Rack 100 N/A 30 N/A Clemens Caverns 100 7,000-8,000 1 N/A N/A Sweeny Fractionator One 100 N/A N/A 100 MARINE ASSETS DOCK THROUGHPUT NAME INTEREST (Percent) (Thousands of barrels per hour) Clifton Ridge Crude System Clifton Ridge Ship Dock Pecan Grove Barge Dock Hartford Connector Products System Hartford Barge Dock Approximate storage capacity for Y-grade NGL, propane and butane once the caverns currently in development are completed, which is expected by the end of

24 Chemicals 20 PHILLIPS FACT BOOK CPCHEM S U.S. GULF COAST PETROCHEMICALS PROJECT

25 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) Olefins and polyolefins capacity utilization CPChem Headquartered in The Woodlands, Texas, CPChem had approximately 5,000 employees worldwide and $13.6 billion in assets as of Dec. 31, Its business has two primary 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 and normal alpha olefins. The SA&S segment manufactures and markets aromatics products and styrenics, such as benzene, styrene, paraxylene and cyclohexane, as well as polystyrene and styrene-butadiene copolymers. SA&S also manufactures and/or markets a variety of specialty chemical products, including organosulfur chemicals, solvents, catalysts, drilling chemicals and mining chemicals. CPCHEM IS THE: World s largest producer of high-density polyethylene. World s largest alpha olefins producer. Fourth-largest ethylene producer in North America. World s largest cyclohexane producer. CPCHEM S PRIMARY BRANDS INCLUDE: Marlex polyethylene, a premium extrusion and rigid 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. CPChem s primary assets are on the Texas Gulf Coast and in the Middle East. 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 house 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 extrusion of polymer and copolymer resins. 21

26 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. In 2015, CPChem continued construction of its world-scale U.S. Gulf Coast Petrochemicals Project. The project includes a 3.3 billion-pound-per-year (BLb/Y) ethylene unit, located at CPChem s Cedar Bayou Facility in Baytown, Texas, and two 1.1 BLb/Y polyethylene facilities, located in Old Ocean, Texas, adjacent to the Sweeny facility. The project is scheduled to start up in the second half of 2017 and is expected to increase CPChem s global ethylene and polyethylene capacity by about 30 percent. An expansion project to increase CPChem s normal alpha olefins (NAO) capacity by 220 million pounds per year was completed at its Cedar Bayou Facility in June Current full-range NAO capacity at the Cedar Bayou site is 1.6 BLb/Y. NAO and its derivatives are used extensively as polyethylene comonomers, synthetic motor oils, lubricants, and automotive additives and in a wide range of specialty applications. CPCHEM CEDAR BAYOU FACILITY 22 PHILLIPS FACT BOOK

27 CPCHEM NET PETROCHEMICAL AND PLASTICS PRODUCTION CAPACITIES as of Dec. 31, 2015 O&P U.S. MIDDLE EAST WORLDWIDE (MMLb/Y) (MMLb/Y) (MMLb/Y) 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, ,850 Polyalphaolefins Polyethylene pipe Total O&P 19,050 5,530 25,280 SA&S Benzene 1, ,530 Cyclohexane 1, ,455 Paraxylene 1,000 1,000 Styrene 1, ,875 Polystyrene ,070 K-Resin SBC 70 Specialty chemicals Nylon 6, Nylon Compounding Polymer conversion Total SA&S 5,975 2,510 8,755 Total O&P and SA&S 25,025 8,040 34,035 Capacities include CPChem s share in equity affiliates and exclude CPChem s NGL fractionation capacity. 23

28 CPChem U.S., Middle East and Asia Operations CPChem U.S., Middle East and Asia Operations U.S. Operations Headquarters The Woodlands, Texas CALIFORNIA Torrance* Polystyrene CONNECTICUT Allyn s Point* Polystyrene ILLINOIS Joliet* Polystyrene LOUISIANA St. James* Styrene MISSISSIPPI Pascagoula Benzene Paraxylene OHIO Hanging Rock* Polystyrene Marietta* Polystyrene TEXAS Borger Specialty Chemicals Cedar Bayou Ethylene Normal Alpha Olefins Propylene Polyalphaolefins Polyethylene Conroe Drilling Specialties Orange Polyethylene Pasadena Polyethylene Port Arthur Ethylene Propylene Cyclohexane Sweeny Ethylene Propylene Manufacturing Facilities Research and Development Facilities Headquarters * Denotes Joint Venture

29 Saudi Arabia * Benzene Cyclohexane Ethylene Styrene Propylene Polyethylene Polypropylene Polystyrene 1-Hexene Motor Gasoline Qatar * Ethylene Polyethylene 1-Hexene Normal Alpha Olefins South Korea * K-Resin SBC China * Polyethylene Singapore * Polyethylene South Korea ARABIAN GULF Jubail Industrial City China Ras Laffan Saudi Arabia Qatar MESA Mesaieed Singapore * Denotes Joint Venture

30 Chemicals WHOLLY OWNED CPCHEM FACILITIES as of Dec. 31, 2015 FACILITY/LOCATION PRODUCTS (MMLb/Y) Cedar Bayou Facility, Baytown, TX Ethylene 1,840 Propylene 1,030 Normal alpha olefins full-range 1,785 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

31 JOINT-VENTURE CPCHEM FACILITIES as of Dec. 31, 2015 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.(Q-Chem II), Mesaieed, Qatar 49 High-density polyethylene 770 Normal alpha olefins 760 Ras Laffan Olefins Company (RLOC), Ras Laffan, Qatar 1 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 260 Nylon 6,6 100 Nylon compounding 40 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 Q-Chem II owns percent of the capacity rights of the RLOC ethylene cracker. 25

32 Refining 26 PHILLIPS FACT BOOK BILLINGS REFINERY

33 Refining Overview OPERATING HIGHLIGHTS Total clean product yield (percent) Gasoline Distillate Other clean product Crude oil processed 1,988 2,108 2,079 Crude oil capacity utilization (percent) Worldwide crude processing capacity 2, , ,246 3 U.S. 1, , ,816 3 International Combined total recordable rate (safety incidents per 200,000 hours) As of Jan. 1, As of Jan. 1, As of Jan. 1, Refining 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). Phillips 66 s Refining strategy centers on operating excellence, maintaining cost and capital discipline, and increasing margins through selective investment. We have opportunities across our system for low-cost, high-return projects that are planned to either increase the value of the products we make or lower the cost of feedstocks. Examples of these projects: At the Wood River Refinery, we have debottlenecking and yieldimprovement projects underway that are scheduled for completion in the third quarter of At the Bayway Refinery, we are upgrading our fluid catalytic cracking unit to state-of-theart technology, which will result in increased yields of gasoline and diesel. We expect this modernization to be finished in In addition, the Billings Refinery is increasing its heavy Canadian crude run ability to 100 percent, with an expected completion in the first half of BAYWAY REFINERY 27

34 Refining U.S. REFINING as of March 31, 2016 Ferndale Billings San Francisco Bayway Wood River Los Angeles Borger Ponca City Wholly Owned Refinery Joint-Venture Refinery West Coast Central Corridor Gulf Coast Atlantic Basin/Europe Sweeny Lake Charles Alliance EUROPE REFINING As of March 31, 2016 Humber Whitegate MiRO Wholly Owned Refinery Joint-Venture Refinery 28 PHILLIPS FACT BOOK

35 WORLDWIDE REFINING as of Dec. 31, 2015 REGION CRUDE MIX (Percent) AVERAGE AVERAGE NELSON CLEAN PRODUCT CRUDE 1 TOTAL GASOLINE 3 DISTILLATE 3 LIGHT/MEDIUM HEAVY COMPLEXITY YIELD (Throughput) (Throughput) (Production) (Production) FACTOR (Percent) Atlantic Basin/Europe Gulf Coast Central Corridor West Coast Worldwide 2,184 2,486 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. PONCA CITY REFINERY LOS ANGELES REFINERY 29

36 Refining REFINING WEST COAST Ferndale Refinery CRUDE DISTILLATE TOTAL NELSON COMPLEXITY FACTOR 55 81% GASOLINE CLEAN PRODUCT YIELD CAPABILITY Los Angeles Refinery CRUDE DISTILLATE TOTAL NELSON COMPLEXITY FACTOR 80 90% GASOLINE CLEAN PRODUCT YIELD CAPABILITY San Francisco Refinery CRUDE DISTILLATE TOTAL NELSON COMPLEXITY FACTOR 55 84% GASOLINE CLEAN PRODUCT YIELD CAPABILITY 30 PHILLIPS FACT BOOK

37 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, hydrotreating 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 northwestern 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 and barge to customers in California. 31

38 REFINING CENTRAL CORRIDOR Billings Refinery 60 CRUDE 67 TOTAL 35 GASOLINE 25 DISTILLATE 13.8 NELSON COMPLEXITY FACTOR 90% 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 32 PHILLIPS FACT BOOK 1 Reflects Phillips 66 equity share.

39 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 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 net 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, hydrotreating and sulfur recovery. Finished products leave Wood River through pipelines and by rail, barge and truck. 33

40 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 34 PHILLIPS FACT BOOK

41 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. A large portion of its refined products are distributed to customers in the eastern United States through major common-carrier pipeline systems and by barge. Refined products can be sold into export markets through the refinery s marine facilities. 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, diesel and aviation 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. 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 facilities. 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. 35

42 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 36 PHILLIPS FACT BOOK 1 In August 2016, Phillips 66 announced the sale of its Whitegate Refinery, located near Cork, Ireland. The transaction is expected to close in the third quarter of Reflects Phillips 66 equity share.

43 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. crude is supplied through a combination of rail and marine transport. Within the refinery is a railcar crude oil receiving facility with a capacity of 75,000 BPD. This offloading facility, owned by Phillips 66 Partners, makes the receipt of additional 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. 37

44 Marketing and Specialties 38 PHILLIPS FACT BOOK

45 Marketing and Specialties Overview OPERATING HIGHLIGHTS U.S. Marketing sales Gasoline 1,113 1,102 1,081 Distillate International Marketing sales Gasoline Distillate Realized Marketing Fuel margin ($/Bbl) U.S International 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 39

46 Marketing and Specialties Marketing UNITED STATES In the United States, Phillips 66 markets gasoline, diesel and aviation fuel. Most marketing outlets are owned and operated by independent dealers and wholesale marketers. The majority of these outlets are branded Phillips 66, Conoco or 76 and offer gasolines that have been recognized as TOP TIER by leading automakers. These operations are generally served by the company s refineries and transportation systems. Phillips 66 uses a network of branded marketers and dealers operating approximately 7,500 outlets, which include about 800 sites where we hold brand license agreements. Refined products are sold on both a branded and unbranded basis, emphasizing the wholesale channel of trade. In addition to automotive gasoline and diesel fuel, the company produces aviation fuels and markets them through independent marketers and dealers at approximately 850 Phillips 66 aviation-branded, fixed-base operations the largest branded network in the U.S. general aviation industry. EUROPE In Europe, Phillips 66 markets motor fuels under the JET brand through company-owned outlets in Germany and Austria and dealer-owned outlets in the United Kingdom. The company also has an equity interest in a joint venture that markets motor fuels in Switzerland under the COOP brand. EUROPE MARKETING as of Dec. 31, 2015 Phillips 66 markets aviation fuels, LPG, heating oils, transportation fuels, marine bunker fuels, fuel coke and bitumen to commercial customers and into the bulk or spot market. In addition, substantially all Whitegate Refinery production is sold to local and international oil companies and independent resellers in the inland Ireland market. As of Dec. 31, 2015, Marketing and Specialties had approximately 1,280 marketing outlets in its European operations, of which approximately 950 were company owned and 330 were dealer owned. Additionally, through joint-venture operations in Switzerland, Phillips 66 has interests in 295 other sites. Specialties FINISHED LUBRICANTS Phillips 66 is one of the largest finished lubricants suppliers in the United States. It manufactures and markets three major lubricant brands: Phillips 66, Kendall and Red Line. We also have supply relationships with major original equipment manufacturers. The distribution network consists of marketers, mass merchandise stores, fast lube stores, tire stores and automotive dealers. In 2015, Phillips 66 completed the integration of its 2014 acquisition of Spectrum Corporation, an independent blender, packager and marketer of specialty lubricants that include two-cycle engine oil, small engine oil and hydraulic oil. It offers a broad array of private-label and brand-name specialty lubricants and related products. The acquisition has increased Phillips 66 s access to specialized global lubricants markets. BASE OIL The base oil marketing activities of Phillips 66 include the sale of Group II Pure Performance hydrocracked base oils to an extensive list of customers throughout the world and the purchase of a wide range of base oils from several North American refiners that fulfill the manufacturing needs of the finished lubricants product lines. We also market Group III Ultra-S base oils in North America through an agreement with South Korea s S-Oil Corporation. Base oils are manufactured at our joint-venture Excel Paralubes plant in Westlake, Louisiana. Number of Outlets per Country U.K. 330 Fuels Market Share >20% 10-20% <10% Germany 800 Switzerland 295 Austria PHILLIPS FACT BOOK

47 U.S. MARKETING AND SPECIALTIES as of Dec. 31, MILES ALASKA Portland Waukesha Benicia HAWAII Rodeo Hartford Wood River Los Angeles MILES PACIFIC OCEAN Borger Selmer Lubricants Plant Power Generation Facility Solvents Manufacturing Fuels Market Share >20% 10-20% 5-10% <5% Excel Paralubes Gulf Coast Sweeny Lake Charles Savannah SPECIALTY PRODUCTS Phillips 66 manufactures and markets specialty products, including petroleum coke products, waxes, solvents and polypropylene, which are sold to commercial, industrial and wholesale buyers worldwide. PETROLEUM COKE Phillips 66 is a leading producer of needle coke for manufacturing electric arc furnace electrodes. The company s experience in carbon upgrading also supports the supply of green and calcined specialty cokes to the steel, aluminum and titanium dioxide and battery industries in multiple countries from our refineries located in the U.S. and the United Kingdom. SOLVENTS The Borger, Sweeny and Wood River refineries manufacture and market high-purity specialty solvents, including pentanes, hexanes, heptanes and isoparaffins, for use in a variety of industrial and chemical manufacturing applications. These products are marketed globally and used in the production of products such as vegetable oil, automotive products, tires and rubber, paint, foam insulation and adhesives. POLYPROPYLENE Phillips 66 produces polypropylene resins at its polypropylene plant adjacent to its Bayway Refinery in Linden, New Jersey. The product is sold under the COPYLENE brand. The plant has a nameplate capacity of 775 MMLb/Y. POWER GENERATION Phillips 66 owns the 440-megawatt Sweeny Cogeneration Power Plant. Phillips 66 s Sweeny Refinery and CPChem s Sweeny facility both use steam and power generated by the plant. Excess power is sold in the power market. Our Rodeo Carbon plant has a steam power plant that generates steam and power for on-site use with excess power sold in the California market. Phillips 66 owns a 37 percent ownership interest in the Nelson Industrial Steam Company, which consumes petroleum coke produced by the Lake Charles Refinery. Generated steam is sold to a third party, and power is sold to the local utility. 41

48 Non-GAAP Reconciliations RECONCILIATION OF ADJUSTED EARNINGS TO EARNINGS (Millions of Dollars) PHILLIPS 66 Net income attributable to Phillips 66 (earnings) $ 4,227 4,762 3,726 Adjustments: Asset dispositions (265) (494) (23) Impairments 131 Impairments by equity affiliates Pending Claims and settlements (23) (10) (16) Exit of business line 34 Lower-of-cost-or-market inventory adjustments Pension settlement expenses 49 Certain tax impacts (84) (17) Discontinued operations (706) (61) Consolidated Adjusted Earnings $ 4,193 3,782 3,643 MIDSTREAM Net income attributable to Phillips 66 (earnings) $ Adjustments: Asset dispositions (18) Impairments by equity affiliates 232 Lower-of-cost-or-market inventory adjustments 1 Pension settlement expenses 6 Certain tax impacts 15 Adjusted Earnings $ CHEMICALS Net income attributable to Phillips 66 (earnings) $ 962 1, Adjustments: Impairments by equity affiliates Lower-of-cost-or-market inventory adjustments 3 Certain tax impacts (34) Chemicals Adjusted Earnings $ 952 1, REFINING Net income attributable to Phillips 66 (earnings) $ 2,555 1,771 1,747 Adjustments: Asset dispositions (5) (369) Impairments 131 Pending Claims and settlements (19) 17 Lower-of-cost-or-market inventory adjustments Pension settlement expenses 32 Certain tax impacts (69) (13) Refining Adjusted Earnings $ 2,527 1,576 1,734 MARKETING AND SPECIALTIES Net income attributable to Phillips 66 (earnings) $ 1,187 1, Adjustments: Asset dispositions (242) (125) (23) Pending Claims and settlements (27) (16) Exit of business line 34 Pension settlement expenses 7 Certain tax impacts (5) (4) Marketing and Specialties Adjusted Earnings $ PHILLIPS FACT BOOK

49 RECONCILIATION OF ADJUSTED EARNINGS TO EARNINGS (CONTINUED) (Millions of Dollars) CORPORATE Net income attributable to Phillips 66 (earnings) $ (490) (393) (431) Adjustments: Pending Claims and settlements (4) Pension settlement expenses 4 Certain tax impacts 9 Corporate Adjusted Earnings $ (481) (393) (431) RECONCILIATION OF ADJUSTED ROCE TO ROCE (Millions of Dollars) PHILLIPS 66 Numerator Net Income $ 4,280 4,797 3,743 After-tax interest expense GAAP ROCE earnings 4,481 4,970 3,921 Special Items (34) (980) (83) Adjusted ROCE earnings $ 4,447 3,990 3,838 Denominator GAAP average capital employed $ 31,749 29,595 28,130 Discontinued operations (96) (192) Adjusted average capital employed $ 31,749 29,499 27,938 GAAP ROCE (percent) 14 % 17 % 14 % Adjusted ROCE (percent) 14 % 14 % 14 % ADJUSTED EBITDA RECONCILIATION (Millions of Dollars) PHILLIPS 66 Net income attributable to Phillips 66 4,227 4,762 3,726 Less: Income from discontinued operations Plus: Net income attributable to noncontrolling interests Provision for income taxes 1,764 1,654 1,844 Net interest expense Depreciation and amortization 1, Phillips 66 EBITDA 7,405 6,986 6,731 Adjustments (pretax): EBITDA attributable to Phillips 66 noncontrolling interests (73) (45) (24) Proportional share of selected equity affiliates income taxes Proportional share of selected equity affiliates net interest Proportional share of selected equity affiliates depreciation and amortization Asset dispositions (280) (270) (40) Impairments 131 Impairments by equity affiliates Exit of a business line 54 Pending claims and settlements 30 (21) (25) Certain tax impacts (28) Lower-of-cost-or-market inventory adjustments Pension settlement expense 80 Phillips 66 Adjusted EBITDA 8,513 7,792 7,408 43

50 Non-GAAP Reconciliations ADJUSTED EBITDA RECONCILIATION (CONTINUED) (Millions of Dollars) MIDSTREAM Net income attributable to Phillips Plus: Net income attributable to noncontrolling interests Provision for income taxes Depreciation and amortization Midstream EBITDA Adjustments (pretax): EBITDA attributable to Phillips 66 noncontrolling interests (73) (45) (24) Proportional share of selected equity affiliates income taxes (2) 3 4 Proportional share of selected equity affiliates net interest Proportional share of selected equity affiliates depreciation and amortization Lower-of-cost-or-market inventory adjustments 2 Asset dispositions (30) Impairments by equity affiliates 366 Pension settlement expenses 9 Midstream Adjusted EBITDA* 843 1,170 1,067 *Proportional share of selected equity affiliates is net of noncontrolling interests. CHEMICALS Net income attributable to Phillips , Plus: Provision for income taxes Chemicals EBITDA 1,315 1,632 1,361 Adjustments (pretax): Proportional share of selected equity affiliates income taxes Proportional share of selected equity affiliates net interest Proportional share of selected equity affiliates depreciation and amortization Impairments by equity affiliates Lower-of-cost-or-market inventory adjustments 3 Chemicals Adjusted EBITDA 1,701 2,101 1,710 REFINING Net income attributable to Phillips 66 2,555 1,771 1,747 Plus: Provision for income taxes 1, ,035 Depreciation and amortization Refining EBITDA 4,397 3,171 3,467 Adjustments (pretax): Proportional share of selected equity affiliates income taxes (3) 3 (4) Proportional share of selected equity affiliates net interest (19) (95) Proportional share of selected equity affiliates depreciation and amortization Asset dispositions (8) (145) Impairments 131 Pending claims and settlements Certain tax impacts (22) Lower-of-cost-or-market inventory adjustments Pension settlement expenses 53 Refining Adjusted EBITDA 4,774 3,449 3, PHILLIPS FACT BOOK

51 ADJUSTED EBITDA RECONCILIATION (CONTINUED) (Millions of Dollars) MARKETING AND SPECIALTIES Net income attributable to Phillips 66 1,187 1, Plus: Provision for income taxes Net interest expense (2) Depreciation and amortization Marketing and Specialties EBITDA 1,747 1,570 1,430 Adjustments (pretax): Asset dispositions (242) (125) (40) Pending claims and settlements (44) (25) Exit of a business line 54 Certain tax impacts (6) Pension settlement expenses 11 Marketing and Specialties Adjusted EBITDA 1,516 1,401 1,413 CORPORATE Net income (loss) attributable to Phillips 66 (490) (393) (431) Plus: Net income attributable to noncontrolling interests (8) Provision for income taxes (231) (287) (263) Net interest expense Depreciation and amortization Corporate EBITDA (328) (329) (365) Adjustments (pretax): Pension settlement expenses 7 Corporate Adjusted EBITDA (321) (329) (365) RECONCILIATION OF NET-DEBT-TO-CAPITAL RATIO PHILLIPS Total Debt ($MM) 8,887 8,635 6,125 Total Equity ($MM) 23,938 22,037 22,392 Debt-to-capital ratio 27 % 28 % 21 % Cash and cash equivalents ($MM) 3,074 5,207 5,400 Net-debt-to-capital ratio 20 % 13 % 3 % 45

52 UNITS OF MEASURE BBtu/d Billion British thermal units per day BCF Billion cubic feet BCFD Billions of cubic feet per day BLb/Y Billions of pounds per year BPD Barrels per day Btu British thermal units BTUD British thermal units per day Lb/MBbl Pounds per thousand barrels MBbl Thousands of barrels MBD Thousands of barrels per day MCFD Thousands of cubic feet per day MMBbl Millions of barrels MMBD Millions of barrels per day MMCFD Millions of cubic feet per day MMLb/Y Millions of pounds per year TBTU Trillion British thermal units TBtu/d Trillion British thermal units per day COMMONLY USED ABBREVIATIONS NGL Natural gas liquids ROCE Return on capital employed LPG Liquefied petroleum gas PADD Petroleum Administration for Defense Districts DATA Distillate capacity includes aviation fuels. The Nelson Complexity Factor calculation considers the variety and capacity of the different processing units within a refinery. The higher a refinery s factor, the greater its secondary conversion capacity and capability to produce higher-value products. SAFE HARBOR STATEMENT This Fact Book contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Words and phrases such as is anticipated, is estimated, is expected, is planned, is scheduled, is targeted, believes, intends, objectives, projects, strategies and similar expressions are used to identify such forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements relating to Phillips 66 s operations (including joint venture operations) are based on management s expectations, estimates and projections about the company, its interests and the energy industry in general on the date this Fact Book was prepared. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Factors that could cause actual results or events to differ materially from those described in the forward-looking statements include fluctuations in crude oil, NGL, and natural gas prices, and refining and petrochemical margins; unexpected changes in costs for constructing, modifying or operating our facilities; unexpected difficulties in manufacturing, refining or transporting our products; lack of, or disruptions in, adequate and reliable transportation for our crude oil, natural gas, NGL, and refined products; potential liability from litigation or for remedial actions, including removal and reclamation obligations under environmental regulations; limited access to capital or significantly higher cost of capital related to illiquidity or uncertainty in the domestic or international financial markets; and other economic, business, competitive and/or regulatory factors affecting Phillips 66 s businesses generally as set forth in our filings with the Securities and Exchange Commission. Phillips 66 is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise. 46 PHILLIPS FACT BOOK

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