Phillips 66 - FORM 8-K - EX-99.2 - EXHIBIT 99.2

Attached files

file	filename
EX-99.1 - EXHIBIT 99.1 - Phillips 66	psx-2014930_ex991.htm
8-K - 8-K - Phillips 66	psx-2014930_8k.htm

Exhibit 99.2

Phillips 66 Earnings Release Supplemental Data



CONSOLIDATED INCOME STATEMENT

	Millions of Dollars
	2013										2014
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD
Revenues and Other Income
Sales and other operating revenues*	41,211		43,190		44,146		43,049		171,596		40,283		45,549		40,417			126,249
Equity in earnings of affiliates	1,039		618		647		769		3,073		778		764		511			2,053
Net gain on dispositions	1		41		8		5		55		7		9		109			125
Other income (loss)	23		49		(7	)	20		85		31		17		11			59
Total Revenues and Other Income	42,274		43,898		44,794		43,843		174,809		41,099		46,339		41,048			128,486

Costs and Expenses
Purchased crude oil and products	35,243		37,257		38,717		37,028		148,245		34,381		39,316		33,602			107,299
Operating expenses	978		1,032		992		1,204		4,206		1,090		1,077		1,104			3,271
Selling, general and administrative expenses	327		368		349		434		1,478		402		412		401			1,215
Depreciation and amortization	242		229		233		243		947		234		239		249			722
Impairments	24		1		1		3		29		1		3		12			16
Taxes other than income taxes*	3,324		3,501		3,624		3,670		14,119		3,638		3,832		3,874			11,344
Accretion on discounted liabilities	6		6		6		6		24		6		6		6			18
Interest and debt expense	70		69		68		68		275		68		66		60			194
Foreign currency transaction (gains) losses	2		(18	)	—		(24	)	(40	)	(19	)	29		13			23
Total Costs and Expenses	40,216		42,445		43,990		42,632		169,283		39,801		44,980		39,321			124,102
Income from continuing operations before income taxes	2,058		1,453		804		1,211		5,526		1,298		1,359		1,727			4,384
Provision for income taxes	663		507		278		396		1,844		426		487		538			1,451
Income From Continuing Operations	1,395		946		526		815		3,682		872		872		1,189			2,933
Income from discontinued operations**	15		14		14		18		61		706		—		—			706
Net Income	1,410		960		540		833		3,743		1,578		872		1,189			3,639
Less: net income attributable to noncontrolling interests	3		2		5		7		17		6		9		9			24
Net Income Attributable to Phillips 66	1,407		958		535		826		3,726		1,572		863		1,180			3,615
* Includes excise taxes on petroleum products sales:	3,258		3,428		3,568		3,612		13,866		3,522		3,743		3,781			11,046
** Net of provision for income taxes on discontinued operations:	8		7		8		11		34		5		—		—			5

Amounts Attributable to Phillips 66 Common Stockholders:
Income from continuing operations	1,392		944		521		808		3,665		866		863		1,180			2,909
Income from discontinued operations	15		14		14		18		61		706		—		—			706
Net Income Attributable to Phillips 66	1,407		958		535		826		3,726		1,572		863		1,180			3,615

Net Income Attributable to Phillips 66
Per Share of Common Stock (dollars)
Basic
Continuing operations	2.23		1.53		0.86		1.35		5.97		1.48		1.52		2.11			5.10
Discontinued operations	0.02		0.02		0.02		0.03		0.10		1.21		—		—			1.24
Net Income Attributable to Phillips 66
Per Share of Common Stock	2.25		1.55		0.88		1.38		6.07		2.69		1.52		2.11			6.34
Diluted
Continuing operations	2.21		1.51		0.85		1.34		5.92		1.47		1.51		2.09			5.05
Discontinued operations	0.02		0.02		0.02		0.03		0.10		1.20		—		—			1.23
Net Income Attributable to Phillips 66
Per Share of Common Stock	2.23		1.53		0.87		1.37		6.02		2.67		1.51		2.09			6.28

Average Common Shares Outstanding (in thousands)
Basic	625,030		619,143		608,934		598,553		612,918		584,053		565,799		559,492			569,692
Diluted	631,288		624,907		614,519		604,165		618,989		589,575		571,285		564,958			575,589

SUMMARY OF INCOME (LOSS) ATTRIBUTABLE TO PHILLIPS 66 BY SEGMENT

	Millions of Dollars
	2013										2014
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD

Midstream	111		90		147		121		469		188		108		115			411
Chemicals	282		181		262		261		986		316		324		230			870
Refining	904		455		(30	)	418		1,747		306		390		558			1,254
Marketing and Specialties	190		344		255		105		894		137		162		368			667
Corporate and Other	(95	)	(126	)	(113	)	(97	)	(431	)	(81	)	(121	)	(91	)		(293	)
Discontinued Operations	15		14		14		18		61		706		—		—			706
Consolidated	1,407		958		535		826		3,726		1,572		863		1,180			3,615

SUMMARY OF INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES BY SEGMENT

	Millions of Dollars
	2013										2014
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD

Midstream	177		141		239		193		750		302		180		194			676
Chemicals	403		232		367		359		1,361		442		466		328			1,236
Refining	1,371		735		(8	)	684		2,782		508		647		859			2,014
Marketing and Specialties	282		531		362		152		1,327		205		248		495			948
Corporate and Other	(175	)	(186	)	(156	)	(177	)	(694	)	(159	)	(182	)	(149	)		(490	)
Consolidated	2,058		1,453		804		1,211		5,526		1,298		1,359		1,727			4,384

EFFECTIVE TAX RATES ON INCOME FROM CONTINUING OPERATIONS

	2013										2014
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD

Midstream	35.6	%	34.8	%	36.4	%	33.7	%	35.2	%	35.8	%	35.0	%	36.1	%		35.7	%
Chemicals	30.0	%	22.0	%	28.6	%	27.3	%	27.6	%	28.5	%	30.5	%	29.9	%		29.6	%
Refining	34.1	%	38.1	%	(275.0	)%	38.9	%	37.2	%	39.8	%	39.7	%	35.0	%		37.7	%
Marketing and Specialties	32.6	%	35.2	%	29.6	%	30.9	%	32.6	%	33.2	%	34.7	%	25.7	%		29.6	%
Corporate and Other	45.7	%	32.3	%	27.6	%	45.2	%	37.9	%	49.1	%	33.5	%	38.9	%		40.2	%
Consolidated	32.2	%	34.9	%	34.6	%	32.7	%	33.4	%	32.8	%	35.8	%	31.2	%		33.1	%

SUMMARY OF ADJUSTED NET INCOME (LOSS) ATTRIBUTABLE TO PHILLIPS 66 BY SEGMENT

	Millions of Dollars
	2013										2014
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD

Midstream	111		90		147		121		469		188		108		115			411
Chemicals	282		181		262		261		986		316		324		299			939
Refining	891		455		(30	)	418		1,734		306		390		558			1,254
Marketing and Specialties	204		321		255		105		885		137		162		259			558
Corporate and Other	(95	)	(126	)	(113	)	(97	)	(431	)	(81	)	(121	)	(91	)		(293	)
Consolidated	1,393		921		521		808		3,643		866		863		1,140			2,869

Page 1



SPECIAL ITEMS INCLUDED IN NET INCOME ATTRIBUTABLE TO PHILLIPS 66
(AFTER-TAX)

	Millions of Dollars
	2013							2014
	1st Qtr		2nd Qtr	3rd Qtr	4th Qtr	YTD		1st Qtr	2nd Qtr	3rd Qtr		4th Qtr	YTD

Midstream	—		—	—	—	—		—	—	—			—

Chemicals
Impairments	—		—	—	—	—		—	—	(69	)		(69	)
Total Chemicals	—		—	—	—	—		—	—	(69	)		(69	)

Refining
Tax law impacts	13		—	—	—	13		—	—	—			—
Total Refining	13		—	—	—	13		—	—	—			—

Marketing and Specialties
Gain on asset dispositions	—		23	—	—	23		—	—	109			109
Pending claims and settlements	16		—	—	—	16		—	—	—			—
Exit of a business line	(34	)	—	—	—	(34	)	—	—	—			—
Tax law impacts	4		—	—	—	4		—	—	—			—
Total Marketing and Specialties	(14	)	23	—	—	9		—	—	109			109

Corporate and Other	—		—	—	—	—		—	—	—			—

Discontinued Operations	15		14	14	18	61		706	—	—			706

Total Phillips 66	14		37	14	18	83		706	—	40			746

By Business Lines/Regions
Midstream
Transportation	—		—	—	—	—		—	—	—			—
DCP Midstream	—		—	—	—	—		—	—	—			—
NGL	—		—	—	—	—		—	—	—			—
Total Midstream	—		—	—	—	—		—	—	—			—

Refining
Atlantic Basin/Europe	7		—	—	—	7		—	—	—			—
Gulf Coast	—		—	—	—	—		—	—	—			—
Central Corridor	3		—	—	—	3		—	—	—			—
Western/Pacific	2		—	—	—	2		—	—	—			—
Other Refining	1		—	—	—	1		—	—	—			—
Total Refining	13		—	—	—	13		—	—	—			—

Marketing and Specialties
Marketing and Other	20		—	—	—	20		—	—	109			109
Specialties	(34	)	23	—	—	(11	)	—	—	—			—
Total Marketing and Specialties	(14	)	23	—	—	9		—	—	109			109

SPECIAL ITEMS INCLUDED IN INCOME FROM CONTINUING OPERATIONS
(PRE-TAX)

	Millions of Dollars
	2013							2014
	1st Qtr		2nd Qtr	3rd Qtr	4th Qtr	YTD		1st Qtr	2nd Qtr	3rd Qtr		4th Qtr	YTD
Midstream
Transportation	—		—	—	—	—		—	—	—			—
DCP Midstream	—		—	—	—	—		—	—	—			—
NGL	—		—	—	—	—		—	—	—			—
Total Midstream	—		—	—	—	—		—	—	—			—

Chemicals	—		—	—	—	—		—	—	(88	)		(88	)

Refining
Atlantic Basin/Europe	12		—	—	—	12		—	—	—			—
Gulf Coast	—		—	—	—	—		—	—	—			—
Central Corridor	5		—	—	—	5		—	—	—			—
Western/Pacific	3		—	—	—	3		—	—	—			—
Other Refining	2		—	—	—	2		—	—	—			—
Total Refining	22		—	—	—	22		—	—	—			—

Marketing and Specialties
Marketing and Other	31		—	—	—	31		—	—	109			109
Specialties	(54	)	40	—	—	(14	)	—	—	—			—
Total Marketing and Specialties	(23	)	40	—	—	17		—	—	109			109

Corporate and Other	—		—	—	—	—		—	—	—			—

Discontinued Operations	23		21	22	29	95		711	—	—			711

Total Phillips 66	22		61	22	29	134		711	—	21			732

Page 2



CASH FLOW INFORMATION

	Millions of Dollars
	2013										2014
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD
Cash Flows From Operating Activities
Net income	1,410		960		540		833		3,743		1,578		872		1,189			3,639
Depreciation and amortization	242		229		233		243		947		234		239		249			722
Impairments	24		1		1		3		29		1		3		12			16
Accretion on discounted liabilities	6		6		6		6		24		6		6		6			18
Deferred taxes	82		80		120		312		594		(444	)	(11	)	(72	)		(527	)
Undistributed equity earnings	77		(98	)	(55	)	(278	)	(354	)	632		(253	)	(19	)		360
Net gain on dispositions	(1	)	(41	)	(8	)	(5	)	(55	)	(7	)	(9	)	(109	)		(125	)
Income from discontinued operations	(15	)	(14	)	(14	)	(18	)	(61	)	(706	)	—		—			(706	)
Other	(34	)	35		33		161		195		(21	)	90		1			70
Net working capital changes	400		(204	)	1,076		(392	)	880		123		(107	)	(828	)		(812	)
Net cash provided by continuing operating activities	2,191		954		1,932		865		5,942		1,396		830		429			2,655
Net cash provided by discontinued operations	22		14		17		32		85		2		—		—			2
Net Cash Provided by Operating Activities	2,213		968		1,949		897		6,027		1,398		830		429			2,657

Cash Flows From Investing Activities
Capital expenditures and investments	(382	)	(366	)	(408	)	(623	)	(1,779	)	(572	)	(561	)	(1,514	)		(2,647	)
Proceeds from asset dispositions*	9		60		1,119		26		1,214		507		150		6			663
Advances/loans—related parties	—		—		(65	)	—		(65	)	—		(3	)	—			(3	)
Collection of advances/loans—related parties	55		45		—		65		165		—		—		—			—
Other	—		—		—		48		48		13		21		127			161
Net cash provided by (used in) continuing investing activities	(318	)	(261	)	646		(484	)	(417	)	(52	)	(393	)	(1,381	)		(1,826	)
Net cash provided by (used in) discontinued operations	(5	)	(5	)	(4	)	(13	)	(27	)	(34	)	32		—			(2	)
Net Cash Provided by (Used in) Investing Activities	(323	)	(266	)	642		(497	)	(444	)	(86	)	(361	)	(1,381	)		(1,828	)

Cash Flows From Financing Activities
Repayment of debt	(3	)	(502	)	(510	)	(5	)	(1,020	)	(8	)	(9	)	(13	)		(30	)
Issuance of common stock	(6	)	3		(1	)	10		6		(20	)	8		13			1
Repurchase of common stock	(382	)	(546	)	(674	)	(644	)	(2,246	)	(640	)	(616	)	(494	)		(1,750	)
Share exchange—PSPI transaction	—		—		—		—		—		(450	)	—		—			(450	)
Dividends paid on common stock	(194	)	(192	)	(189	)	(232	)	(807	)	(229	)	(281	)	(277	)		(787	)
Distributions to noncontrolling interests	—		(1	)	—		(9	)	(10	)	(4	)	(9	)	(5	)		(18	)
Net proceeds from issuance of Phillips 66 Partners LP common units	—		—		404		—		404		—		—		—			—
Other	—		(3	)	(1	)	(2	)	(6	)	(4	)	29		(2	)		23
Net cash used in continuing financing activities	(585	)	(1,241	)	(971	)	(882	)	(3,679	)	(1,355	)	(878	)	(778	)		(3,011	)
Net cash provided by (used in) discontinued operations	—		—		—		—		—		—		—		—			—
Net Cash Used in Financing Activities	(585	)	(1,241	)	(971	)	(882	)	(3,679	)	(1,355	)	(878	)	(778	)		(3,011	)

Effect of Exchange Rate Changes on Cash and Cash Equivalents	(26	)	6		102		(60	)	22		(31	)	39		(118	)		(110	)

Net Change in Cash and Cash Equivalents	1,279		(533	)	1,722		(542	)	1,926		(74	)	(370	)	(1,848	)		(2,292	)
Cash and cash equivalents at beginning of period	3,474		4,753		4,220		5,942		3,474		5,400		5,326		4,956			5,400
Cash and Cash Equivalents at End of Period	4,753		4,220		5,942		5,400		5,400		5,326		4,956		3,108			3,108
* Includes return of investments in equity affiliates.

CAPITAL PROGRAM

	Millions of Dollars
	2013										2014
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD
Consolidated Capital Expenditures and Investments
Midstream	115		131		131		220		597		288		298		946			1,532
Chemicals	—		—		—		—		—		—		—		—			—
Refining	131		151		229		309		820		186		215		278			679
Marketing and Specialties	97		42		41		46		226		84		26		248			358
Corporate and Other	39		42		7		48		136		14		22		42			78
Total Consolidated from Continuing Operations	382		366		408		623		1,779		572		561		1,514			2,647

Discontinued Operations	5		5		4		13		27		—		—		—			—

Proportional Share of Selected Equity Affiliates Capital Expenditures and Investments*
DCP Midstream (Midstream)	274		268		218		211		971		178		176		207			561
CPChem (Chemicals)	106		142		172		193		613		155		224		244			623
WRB Refining (Refining)	29		30		19		31		109		23		38		35			96
Select Equity Affiliates	409		440		409		435		1,693		356		438		486			1,280

Total Capital Program*
Midstream	389		399		349		431		1,568		466		474		1,153			2,093
Chemicals	106		142		172		193		613		155		224		244			623
Refining	160		181		248		340		929		209		253		313			775
Marketing and Specialties	97		42		41		46		226		84		26		248			358
Corporate and Other	39		42		7		48		136		14		22		42			78
Discontinued Operations	5		5		4		13		27		—		—		—			—
Total Capital Program	796		811		821		1,071		3,499		928		999		2,000			3,927

* Includes Phillips 66’s portion of self-funded capital spending by DCP Midstream, LLC (DCP Midstream), Chevron Phillips Chemical Company LLC (CPChem) and WRB Refining.

Page 3



MIDSTREAM

	2013					2014
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Midstream Net Income Attributable to Phillips 66 ($ Millions)
Transportation	45	50	54	50	199	62	60	58		180
DCP Midstream	56	30	87	37	210	83	33	31		147
NGL	10	10	6	34	60	43	15	26		84
Midstream Net Income Attributable
to Phillips 66	111	90	147	121	469	188	108	115		411

Midstream Income before Income Taxes ($ Millions)
Transportation	75	80	87	83	325	101	105	102		308
DCP Midstream	87	46	136	63	332	130	52	50		232
NGL	15	15	16	47	93	71	23	42		136
Midstream Income before Income Taxes	177	141	239	193	750	302	180	194		676

Midstream Adjusted EBITDA	244	213	322	288	1,067	384	256	273		913

Depreciation and Amortization ($ Millions)
Transportation	18	19	19	30	86	19	20	23		62
DCP Midstream	—	—	—	—	—	—	—	—		—
NGL	1	—	—	1	2	—	1	1		2
Total	19	19	19	31	88	19	21	24		64

Operating and SG&A Expense ($ Millions)
Transportation	93	102	110	103	408	96	109	122		327
DCP Midstream	—	—	—	2	2	—	—	—		—
NGL	17	25	15	21	78	17	20	20		57
Total	110	127	125	126	488	113	129	142		384

Transportation Volumes (MB/D)
Pipelines*	3,032	3,170	3,222	3,150	3,144	3,101	3,243	3,142		3,162
Terminals	1,041	1,194	1,419	1,435	1,274	1,477	1,609	1,763		1,617
Refining Logistics Assets	—	—	—	—	—	—	—	17		6
* Pipelines represent the sum of volumes transported through each separately tariffed pipeline segment, including our share of equity volumes in Yellowstone and Lake Charles pipelines.

PSX Other Volumes
NGL Fractionated (MB/D)*	117	113	123	109	115	112	117	110		113
* Excludes DCP Midstream.

100% DCP Midstream Results
Net Income Attributable, excludes parent company income tax related to DCP's earnings ($ Millions)	91	78	191	131	491	165	89	81		335

Depreciation and Amortization ($ Millions)	69	76	82	87	314	85	86	87		258

Operating and SG&A Expense ($ Millions)	228	236	223	262	949	243	283	264		790

Net Interest Expense ($ Millions)*	50	52	75	72	249	72	74	71		217
* Net of interest income.

Capital Expenditures and Investments ($ Millions)	547	537	435	422	1,941	355	353	414		1,122

Selected DCP Volumes and Gross Margin
by Major Contract Type (excludes current quarter)
Percentage of Proceeds (long NGL / long Gas)*
Volume (TBtu/d)	4.8	5.0	5.3	5.2	5.1	5.3	5.6	**		5.5
Gross Margin ($ Millions)	185	220	230	240	875	265	265	**		530

Keep-whole (long NGL / short Gas)*
Volume (TBtu/d)	0.6	0.6	0.6	0.6	0.6	0.5	0.4	**		0.5
Gross Margin ($ Millions)	45	35	45	45	170	35	20	**		55

Fee-based Gas (primarily gathering and transport)*
Volume (TBtu/d)	4.5	4.7	4.7	4.6	4.6	4.6	4.5	**		4.6
Gross Margin ($ Millions)	65	75	75	90	305	80	85	**		165

Fee-based NGL Transport and Fractionation
Volume (MB/d)	202	201	209	220	208	242	281	**		262
Gross Margin ($ Millions)	19	19	25	23	86	26	27	**		53

Other Gross Margin***
Gross Margin ($ Millions)	153	160	186	172	671	205	139	**		344

Total Throughput (TBtu/d)	6.9	7.1	7.4	7.2	7.1	7.2	7.3	7.5		7.3
NGL Production (MB/d)	396	412	442	452	426	445	452	471		456
* Certain volumes earn duplicate revenue streams (i.e. both fee plus processing economics).
** Pending DCP Midstream release.
*** Includes NGL/Propane Marketing, MTM, Condensate Sales, Gas Marketing activity and other items.

Weighted Average NGL Price*
DCP Midstream ($/BBL)	37.45	34.58	37.84	41.48	37.84	44.52	39.06	37.66		40.42
DCP Midstream ($/gal)	0.89	0.82	0.90	0.99	0.90	1.06	0.93	0.90		0.96

* Based on index prices from the Mont Belvieu and Conway market hubs that are weighted by NGL component and location mix.

Page 4



CHEMICALS

	2013										2014
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD
Chemicals Net Income Attributable to Phillips 66 ($ Millions)	282		181		262		261		986		316		324		230			870

Chemicals Adjusted EBITDA	482		320		454		454		1,710		534		557		517			1,608

100% CPChem Results
Net Income (Loss), excludes parent company income tax related to CPChem's earnings ($ Millions)
Olefins and Polyolefins	726		411		677		746		2,560		801		903		720			2,424
Specialties, Aromatics and Styrenics	56		73		72		—		201		97		52		(45	)		104
Corporate and Other	29		(14	)	(11	)	(22	)	(18	)	(8	)	(15	)	(13	)		(36	)
Total	811		470		738		724		2,743		890		940		662			2,492

Income (Loss) before Income Taxes ($ Millions)*
Olefins and Polyolefins	736		421		688		756		2,601		815		918		735			2,468
Specialties, Aromatics and Styrenics	60		83		81		10		234		105		60		(36	)		129
Corporate and Other	30		(14	)	(11	)	(22	)	(17	)	(8	)	(14	)	(12	)		(34	)
Total	826		490		758		744		2,818		912		964		687			2,563
* Excludes CPChem discontinued operations.

Depreciation and Amortization ($ Millions)	64		66		66		82		278		69		69		74			212

Net Interest Expense ($ Millions)*	(1	)	—		(1	)	(1	)	(3	)	—		(1	)	(1	)		(2	)
* Net of interest income.

Investing Cash Flows ($ Millions)
Capital Expenditures and Investments	211		284		345		385		1,225		310		447		488			1,245
Advances to Equity Companies	45		19		5		98		167		5		21		18			44
Advance Repayments from Equity Companies	(43	)	(12	)	—		—		(55	)	—		—		—			—

Externally Marketed Sales Volumes (MM Lbs)
Olefins and Polyolefins	4,036		3,862		3,927		4,246		16,071		4,302		4,395		4,067			12,764
Specialties, Aromatics and Styrenics	1,496		1,485		1,577		1,672		6,230		1,569		1,530		1,571			4,670
Total	5,532		5,347		5,504		5,918		22,301		5,871		5,925		5,638			17,434
* Represents 100 percent of CPChem's outside sales of produced petrochemical products, as well as commission sales from equity affiliates.

Olefins and Polyolefins Capacity Utilization (%)	91	%	78	%	87	%	95	%	88	%	93	%	95	%	83	%		90	%

Market Indicators
U.S. Industry Prices*
Ethylene, Net Transaction Price (cents/lb)	48.00		46.33		45.83		46.50		46.67		48.25		47.17		51.83			49.08
HDPE Blow Molding (cents/lb)	91.67		93.67		96.67		100.00		95.50		102.67		104.00		105.00			103.89

U.S. Industry Costs*
Ethylene, Cash Cost Weighted Average Feed (cents/lb)	13.80		15.66		16.47		18.60		16.13		19.84		17.05		14.47			17.12
HDPE, Total Cash Cost (cents/lb)	69.26		65.55		63.71		64.52		65.76		67.04		66.56		73.51			69.04
* Released by IHS. Reflect the IHS analysis of historical market indicators.

Page 5



REFINING

	2013										2014
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD
Refining Net Income (Loss) Attributable to Phillips 66 ($ Millions)
Atlantic Basin/Europe	95		24		47		(139	)	27		16		(10	)	125			131
Gulf Coast	35		(82	)	(79	)	185		59		77		118		43			238
Central Corridor	588		395		119		379		1,481		222		229		300			751
Western/Pacific	63		33		(94	)	42		44		(47	)	65		(3	)		15
Other Refining	123		85		(23	)	(49	)	136		38		(12	)	93			119
Refining Net Income (Loss) Attributable
to Phillips 66	904		455		(30	)	418		1,747		306		390		558			1,254

Refining Income (Loss) before Income Taxes ($ Millions)
Atlantic Basin/Europe	136		41		59		(191	)	45		34		5		184			223
Gulf Coast	43		(109	)	(118	)	282		98		122		183		65			370
Central Corridor	923		626		193		589		2,331		359		367		463			1,189
Western/Pacific	95		59		(123	)	74		105		(63	)	101		16			54
Other Refining	174		118		(19	)	(70	)	203		56		(9	)	131			178
Refining Income (Loss) before Income Taxes	1,371		735		(8	)	684		2,782		508		647		859			2,014

Refining Adjusted EBITDA	1,560		937		199		887		3,583		722		883		1,098			2,703

Realized Refining Margins ($/BBL)*
Atlantic Basin/Europe	8.61		6.83		6.59		5.12		6.87		7.46		6.06		9.99			7.82
Gulf Coast	8.08		3.89		3.35		9.12		6.04		8.64		8.12		6.80			7.81
Central Corridor	27.29		19.45		9.80		18.50		18.62		15.21		14.91		16.87			15.66
Western/Pacific	9.64		8.80		4.77		9.51		8.20		7.02		10.53		8.71			8.79
Worldwide	13.78		9.70		5.94		10.50		9.90		9.88		9.66		10.89			10.15
* Based on total processed inputs and includes proportional share of refining margins contributed by certain equity affiliates.

Depreciation and Amortization ($ Millions)*
Atlantic Basin/Europe	42		43		43		42		170		46		47		48			141
Gulf Coast	52		54		50		50		206		49		50		52			151
Central Corridor	27		22		21		23		93		23		22		24			69
Western/Pacific	53		50		51		52		206		51		52		52			155
Other Refining	3		(1	)	5		3		10		3		3		2			8
Total	177		168		170		170		685		172		174		178			524
* Excludes D&A of all equity affiliates.

Operating and SG&A Expense ($ Millions)*
Atlantic Basin/Europe	262		279		238		354		1,133		274		248		242			764
Gulf Coast	330		297		309		326		1,262		363		329		363			1,055
Central Corridor	98		98		114		116		426		113		123		114			350
Western/Pacific	185		200		199		222		806		227		223		227			677
Other Refining	26		40		35		85		186		27		33		29			89
Total	901		914		895		1,103		3,813		1,004		956		975			2,935
* Excludes Operating and SG&A Expense of all equity affiliates.

Turnaround Expense ($ Millions), included in
Operating and SG&A Expense*
Atlantic Basin/Europe	12		35		15		108		170		23		9		16			48
Gulf Coast	64		12		18		28		122		75		35		67			177
Central Corridor	6		4		16		11		37		5		4		3			12
Western/Pacific	4		11		7		12		34		22		13		15			50
Total	86		62		56		159		363		125		61		101			287
* Excludes Turnaround Expense of all equity affiliates.

Taxes Other than Income Taxes, excluding Excise Taxes ($ Millions)
Atlantic Basin/Europe	18		15		14		15		62		17		15		15			47
Gulf Coast	22		19		14		14		69		23		21		19			63
Central Corridor	9		9		8		8		34		10		7		9			26
Western/Pacific	27		26		26		26		105		29		26		25			80
Other Refining	(3	)	(4	)	(3	)	1		(9	)	3		—		2			5
Total	73		65		59		64		261		82		69		70			221

Foreign Currency Gains (Losses) After-Tax ($ Millions)	16		9		(2	)	18		41		14		(18	)	(6	)		(10	)

Refining—Equity Affiliate Information ($ Millions)
Equity in earnings of affiliates	503		274		69		261		1,107		150		173		55			378
Less: Share of equity affiliate gross margin included in Realized Refining Margin and other equity affiliate-related costs*	(691	)	(428	)	(221	)	(387	)	(1,727	)	(352	)	(364	)	(248	)		(964	)
Equity-affiliate-related expenses not included in Realized Refining Margins	(188	)	(154	)	(152	)	(126	)	(620	)	(202	)	(191	)	(193	)		(586	)
Regional Totals
Gulf Coast	(21	)	1		19		34		33		11		13		3			27
Central Corridor	(121	)	(112	)	(110	)	(115	)	(458	)	(167	)	(156	)	(159	)		(482	)
Other Regions**	(46	)	(43	)	(61	)	(45	)	(195	)	(46	)	(48	)	(37	)		(131	)
Total	(188	)	(154	)	(152	)	(126	)	(620	)	(202	)	(191	)	(193	)		(586	)
* Other costs associated with equity affiliates which do not flow through equity earnings.
** Combined equity affiliates reported in Atlantic Basin/Europe and Western/Pacific.

Page 6



REFINING (continued)

	2013										2014
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD
Atlantic Basin/Europe*
Crude Oil Charge Input (MB/D)	571		555		574		483		546		551		562		538			550
Total Charge Input (MB/D)	614		597		606		489		576		585		612		588			595
Crude Oil Capacity Utilization (%)	97	%	94	%	98	%	82	%	93	%	94	%	96	%	92	%		94	%
Clean Product Yield (%)	85	%	84	%	84	%	79	%	83	%	84	%	83	%	86	%		84	%
* Includes our proportionate share of a refinery complex in Karlsruhe, Germany.

Gulf Coast
Crude Oil Charge Input (MB/D)	584		664		671		682		651		613		673		710			666
Total Charge Input (MB/D)	643		741		767		762		729		705		771		794			757
Crude Oil Capacity Utilization (%)	80	%	91	%	92	%	93	%	89	%	84	%	92	%	97	%		91	%
Clean Product Yield (%)	81	%	83	%	82	%	82	%	82	%	81	%	79	%	79	%		80	%

Central Corridor*
Crude Oil Charge Input (MB/D)	457		474		480		479		472		466		493		476			478
Total Charge Input (MB/D)	473		488		495		494		488		481		511		492			495
Crude Oil Capacity Utilization (%)	96	%	100	%	101	%	100	%	99	%	96	%	102	%	98	%		99	%
Clean Product Yield (%)	87	%	86	%	88	%	88	%	87	%	88	%	88	%	90	%		89	%
* Includes our proportionate share of the Borger Refinery and Wood River Refinery.

Western/Pacific*
Crude Oil Charge Input (MB/D)	401		417		403		419		410		395		424		390			403
Total Charge Input (MB/D)	441		448		430		450		442		427		450		423			433
Crude Oil Capacity Utilization (%)	91	%	95	%	91	%	95	%	93	%	90	%	96	%	89	%		92	%
Clean Product Yield (%)	83	%	86	%	84	%	85	%	85	%	84	%	85	%	83	%		84	%
* Includes our proportionate share of a refinery in Melaka, Malaysia.

Worldwide—Including Proportionate Share of Equity Affiliates
Crude Oil Charge Input (MB/D)	2,013		2,110		2,128		2,063		2,079		2,025		2,152		2,114			2,097
Total Charge Input (MB/D)	2,171		2,274		2,298		2,195		2,235		2,198		2,344		2,297			2,280
Crude Oil Capacity Utilization (%)	90	%	94	%	95	%	92	%	93	%	90	%	96	%	94	%		93	%
Clean Product Yield (%)	84	%	85	%	84	%	84	%	84	%	84	%	83	%	84	%		84	%

Refined Products Production (MB/D)
Atlantic Basin/Europe*
Gasoline	240		239		241		175		224		231		244		247			241
Distillates	264		249		252		204		242		245		248		240			244
Other	114		110		116		107		112		112		123		106			114
Total	618		598		609		486		578		588		615		593			599
* Includes our proportionate share of a refinery complex in Karlsruhe, Germany.

Gulf Coast
Gasoline	252		292		304		293		285		276		300		296			291
Distillates	247		292		295		297		283		270		286		299			285
Other	147		164		175		184		168		171		197		203			190
Total	646		748		774		774		736		717		783		798			766

Central Corridor*
Gasoline	242		242		257		254		249		247		262		256			255
Distillates	168		175		174		179		174		173		187		181			181
Other	65		71		66		63		66		63		64		57			61
Total	475		488		497		496		489		483		513		494			497
* Includes our proportionate share of the Borger Refinery and Wood River Refinery.

Western/Pacific*
Gasoline	188		198		188		191		191		181		198		182			187
Distillates	177		189		173		193		183		179		186		167			177
Other	80		65		71		69		71		69		70		76			72
Total	445		452		432		453		445		429		454		425			436
* Includes our proportionate share of a refinery in Melaka, Malaysia.

Worldwide—Including Proportionate Share of Equity Affiliates
Gasoline	922		971		990		913		949		935		1,004		981			974
Distillates	856		905		894		873		882		867		907		887			887
Other	406		410		428		423		417		415		454		442			437
Total	2,184		2,286		2,312		2,209		2,248		2,217		2,365		2,310			2,298

Market Indicators
Crude and Crude Differentials ($/BBL)
WTI	94.29		94.12		105.80		97.38		97.90		98.75		103.05		97.48			99.76
Brent	112.55		102.44		110.36		109.27		108.66		108.22		109.63		101.85			106.57
LLS	113.92		104.63		109.89		100.94		107.34		104.43		105.55		100.95			103.64
ANS	111.02		104.52		110.52		104.67		107.68		105.74		109.23		101.51			105.49
WTI less Maya	(8.54	)	(3.55	)	6.47		8.12		0.63		9.41		7.27		6.64			7.77
WTI less WCS	27.02		16.71		23.07		31.23		24.51		20.83		19.15		18.22			19.40

Natural Gas ($/MCF)
Henry Hub	3.48		4.01		3.55		3.84		3.72		5.08		4.58		3.94			4.53

Product Margins ($/BBL)
Atlantic Basin/Europe
East Coast Gasoline less Brent	9.70		14.83		13.05		2.95		10.13		5.12		15.23		15.44			11.93
East Coast Distillate less Brent	18.78		19.09		17.43		16.35		17.91		22.28		14.30		16.63			17.74
Gulf Coast
Gulf Coast Gasoline less LLS	3.41		9.14		5.86		2.89		5.33		5.25		11.53		8.54			8.44
Gulf Coast Distillate less LLS	15.67		15.52		16.66		21.48		17.33		18.63		17.00		16.26			17.30
Central Corridor
Central Gasoline less WTI	24.04		26.18		14.55		3.23		17.00		13.15		16.09		14.05			14.43
Central Distillate less WTI	35.72		29.35		22.95		25.52		28.39		25.94		21.07		21.85			22.95
Western/Pacific
West Coast Gasoline less ANS	18.34		20.59		12.39		8.71		15.01		11.75		20.88		16.59			16.41
West Coast Distillate less ANS	20.67		16.84		18.42		19.60		18.89		17.55		17.16		20.19			18.30

Worldwide Market Crack Spread ($/BBL)*	15.50		17.56		13.44		9.62		14.03		12.44		15.94		14.85			14.41
* Weighted average based on Phillips 66 crude capacity.

Page 7



MARKETING AND SPECIALTIES

	2013					2014
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr		3rd Qtr		4th Qtr	YTD
Marketing and Specialties Net Income Attributable to Phillips 66 ($ Millions)
Marketing and Other	177	258	199	54	688	93	119		325			537
Specialties	13	86	56	51	206	44	43		43			130
Marketing and Specialties Net Income Attributable
to Phillips 66	190	344	255	105	894	137	162		368			667

Marketing and Specialties Income before Income Taxes ($ Millions)
Marketing and Other	259	391	273	71	994	135	179		425			739
Specialties	23	140	89	81	333	70	69		70			209
Marketing and Specialties Income before
Income Taxes	282	531	362	152	1,327	205	248		495			948

Marketing and Specialties Adjusted EBITDA	338	516	384	175	1,413	226	271		410			907

Realized Marketing Fuel Margin ($/BBL)*
U.S.	1.02	1.77	1.25	0.74	1.21	1.19	1.17		1.78			1.38
International	3.16	4.93	5.55	3.76	4.36	3.72	4.52		6.10			4.79
* On third-party petroleum products sales.

Realized Margins not included in Marketing Fuel Margin
($ Millions)*
Marketing and Other	210	184	141	121	656	139	160		169			468
Specialties	83	135	112	113	443	106	102		108			316
Total	293	319	253	234	1,099	245	262		277			784
* Excludes Gain on Dispositions and Excise Tax Income.

Depreciation and Amortization ($ Millions)
Marketing and Other	30	23	21	21	95	20	21		21			62
Specialties	3	2	1	2	8	1	2		3			6
Total	33	25	22	23	103	21	23		24			68

Operating and SG&A Expense ($ Millions)
Marketing and Other	189	231	220	271	911	274	284		295			853
Specialties	35	32	29	31	127	32	30		35			97
Total	224	263	249	302	1,038	306	314		330			950

Marketing Petroleum Products Sales (MB/D)
U.S. Marketing
Gasoline	1,016	1,138	1,111	1,059	1,081	1,030	1,142		1,093			1,088
Distillates	763	817	761	759	775	748	784		750			761
Other	—	—	—	—	—	—	—		—			—
Total	1,779	1,955	1,872	1,818	1,856	1,778	1,926		1,843			1,849

International Marketing
Gasoline	89	95	95	92	93	89	95		95			93
Distillates	193	190	190	192	192	196	186		190			191
Other	16	18	18	17	17	16	19		17			17
Total	298	303	303	301	302	301	300		302			301

Worldwide Marketing
Gasoline	1,105	1,233	1,206	1,151	1,174	1,119	1,237		1,188			1,181
Distillates	956	1,007	951	951	967	944	970		940			952
Other	16	18	18	17	17	16	19		17			17
Total	2,077	2,258	2,175	2,119	2,158	2,079	2,226		2,145			2,150

Foreign Currency Gains (Losses) After-Tax ($ Millions)	3	1	1	—	5	—	(3	)	(3	)		(6	)

Page 8



CORPORATE AND OTHER

	2013										2014
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD
Corporate and Other Net Income (Loss) Attributable
to Phillips 66 ($ Millions)	(95	)	(126	)	(113	)	(97	)	(431	)	(81	)	(121	)	(91	)		(293	)

Detail of Net Income (Loss) Attributable
to Phillips 66 ($ Millions)
Net interest expense	(43	)	(42	)	(41	)	(40	)	(166	)	(41	)	(39	)	(36	)		(116	)
Corporate overhead	(34	)	(36	)	(32	)	(43	)	(145	)	(40	)	(44	)	(32	)		(116	)
Technology	(12	)	(12	)	(12	)	(14	)	(50	)	(13	)	(14	)	(14	)		(41	)
Other	(6	)	(36	)	(28	)	—		(70	)	13		(24	)	(9	)		(20	)
Total	(95	)	(126	)	(113	)	(97	)	(431	)	(81	)	(121	)	(91	)		(293	)

Before-Tax Net Interest Expense ($ Millions)
Interest expense	(70	)	(69	)	(68	)	(68	)	(275	)	(69	)	(69	)	(66	)		(204	)
Capitalized interest	—		—		—		—		—		1		3		6			10
Interest revenue	5		4		5		6		20		5		6		5			16
Premium on early debt retirement	—		(1	)	(2	)	—		(3	)	—		—		—			—
Total	(65	)	(66	)	(65	)	(62	)	(258	)	(63	)	(60	)	(55	)		(178	)

Foreign Currency Gains (Losses) After-Tax ($ Millions)	(1	)	—		(1	)	—		(2	)	—		—		—			—

Phillips 66 Total Company Debt
Total Debt ($ Millions)	6,971		6,469		6,156		6,155		6,155		6,217		6,212		6,213			6,213
Debt-to-Capital Ratio (%)	25	%	23	%	22	%	22	%	22	%	22	%	22	%	22	%		22	%

Total Equity ($ Millions)	21,378		21,690		21,994		22,392		22,392		21,829		21,955		22,194			22,194

Page 9



NON-GAAP FINANCIAL MEASURES RECONCILIATION

	Millions of Dollars
	2013										2014
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD
Reconciliation of Midstream Net Income to Adjusted EBITDA
Midstream net income	114		92		152		128		486		194		117		124			435
Plus:
Provision for income taxes	63		49		87		65		264		108		63		70			241
Depreciation and amortization	19		19		19		31		88		19		21		24			64
Midstream EBITDA	196		160		258		224		838		321		201		218			740

Adjustments (pretax):
EBITDA attributable to Phillips 66 noncontrolling interests	(5	)	(4	)	(7	)	(8	)	(24	)	(8	)	(12	)	(13	)		(33	)
Proportional share of selected equity affiliates income taxes	—		2		1		1		4		2		—		2			4
Proportional share of selected equity affiliates net interest	22		22		33		33		110		30		31		29			90
Proportional share of selected equity affiliates depreciation and amortization	31		33		37		38		139		39		36		37			112
Midstream Adjusted EBITDA*	244		213		322		288		1,067		384		256		273			913
* Proportional share of selected equity affiliates is net of noncontrolling interests.

Reconciliation of Chemicals Net Income to Adjusted EBITDA
Chemicals net income	282		181		262		261		986		316		324		230			870
Plus:
Provision for income taxes	121		51		105		98		375		126		142		98			366
Chemicals EBITDA	403		232		367		359		1,361		442		466		328			1,236

Adjustments (pretax):
Proportional share of selected equity affiliates income taxes	19		25		25		24		93		27		28		35			90
Proportional share of selected equity affiliates net interest	2		3		2		3		10		3		1		2			6
Proportional share of selected equity affiliates depreciation and amortization	58		60		60		68		246		62		62		64			188
Impairments	—		—		—		—		—		—		—		88			88
Chemicals Adjusted EBITDA	482		320		454		454		1,710		534		557		517			1,608

Reconciliation of Refining Net Income to Adjusted EBITDA
Refining net income (loss)	904		455		(30	)	418		1,747		306		390		558			1,254
Plus:
Provision for income taxes	467		280		22		266		1,035		202		257		301			760
Depreciation and amortization	177		168		170		170		685		172		174		178			524
Refining EBITDA	1,548		903		162		854		3,467		680		821		1,037			2,538

Adjustments (pretax):
Proportional share of selected equity affiliates income taxes	2		1		—		(7	)	(4	)	—		1		—			1
Proportional share of selected equity affiliates net interest	(26	)	(24	)	(23	)	(22	)	(95	)	(19	)	—		—			(19	)
Proportional share of selected equity affiliates depreciation and amortization	58		57		60		62		237		61		61		61			183
Tax law impacts	(22	)	—		—		—		(22	)	—		—		—			—
Refining Adjusted EBITDA	1,560		937		199		887		3,583		722		883		1,098			2,703

Reconciliation of Marketing and Specialties Net Income to Adjusted EBITDA
Marketing and Specialties net income	190		344		255		105		894		137		162		368			667
Plus:
Provision for income taxes	92		187		107		47		433		68		86		127			281
Depreciation and amortization	33		25		22		23		103		21		23		24			68
Marketing and Specialties EBITDA	315		556		384		175		1,430		226		271		519			1,016

Adjustments (pretax):
Gain on asset dispositions	—		(40	)	—		—		(40	)	—		—		(109	)		(109	)
Pending claims and settlements	(25	)	—		—		—		(25	)	—		—		—			—
Exit of a business line	54		—		—		—		54		—		—		—			—
Tax law impacts	(6	)	—		—		—		(6	)	—		—		—			—
Marketing and Specialties Adjusted EBITDA	338		516		384		175		1,413		226		271		410			907

Reconciliation of Phillips 66 Net Income to Adjusted EBITDA
Net income	1,410		960		540		833		3,743		1,578		872		1,189			3,639
Less:
Income from discontinued operations	15		14		14		18		61		706		—		—			706
Plus:
Provision for income taxes	663		507		278		396		1,844		426		487		538			1,451
Net interest expense	65		66		65		62		258		63		60		55			178
Depreciation and amortization	242		229		233		243		947		234		239		249			722
Phillips 66 EBITDA	2,365		1,748		1,102		1,516		6,731		1,595		1,658		2,031			5,284

Adjustments (pretax):
EBITDA attributable to Phillips 66 noncontrolling interests	(5	)	(4	)	(7	)	(8	)	(24	)	(8	)	(12	)	(13	)		(33	)
Proportional share of selected equity affiliates income taxes	21		28		26		18		93		29		29		37			95
Proportional share of selected equity affiliates net interest	(2	)	1		12		14		25		14		32		31			77
Proportional share of selected equity affiliates depreciation and amortization	147		150		157		168		622		162		159		162			483
Gain on asset dispositions	—		(40	)	—		—		(40	)	—		—		(109	)		(109	)
Impairments	—		—		—		—		—		—		—		88			88
Exit of a business line	54		—		—		—		54		—		—		—			—
Tax law impacts	(28	)	—		—		—		(28	)	—		—		—			—
Pending claims and settlements	(25	)	—		—		—		(25	)	—		—		—			—
Phillips 66 Adjusted EBITDA	2,527		1,883		1,290		1,708		7,408		1,792		1,866		2,227			5,885

Use of Non-GAAP Financial Information—This earnings release supplemental data includes the terms EBITDA and adjusted EBITDA. These are non-GAAP financial measures. EBITDA and adjusted EBITDA are included to help facilitate comparisons of operating performance across periods, to help facilitate comparisons with other companies in our industry and to help facilitate determination of enterprise value. The GAAP measure most directly comparable to EBITDA and adjusted EBITDA is net income.

Page 10

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Phillips 66 - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - October 29, 2014

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