Phillips 66 - FORM 8-K - EX-99.2

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EX-99.1 - EX-99.1 - Phillips 66	psx-2020630ex9911.htm
8-K - 8-K - Phillips 66	psx-20200731.htm

Exhibit 99.2

Phillips 66 Earnings Release Supplemental Data


CONSOLIDATED STATEMENT OF OPERATIONS

	Millions of Dollars, Except as Indicated
	2020													2019
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr		YTD		1st Qtr	2nd Qtr		3rd Qtr	4th Qtr		YTD
Revenues and Other Income
Sales and other operating revenues				20,878		10,913			31,791			23,103		27,847		27,218		29,125		107,293
Equity in earnings of affiliates				365		157			522			516		648		499		464		2,127
Net gain on dispositions				1		85			86			1		—		18		1		20
Other income				—		28			28			38		23		36		22		119
Total Revenues and Other Income				21,244		11,183			32,427			23,658		28,518		27,771		29,612		109,559

Costs and Expenses
Purchased crude oil and products				18,440		9,608			28,048			21,055		24,554		23,806		26,114		95,529
Operating expenses				1,341		1,026			2,367			1,307		1,165		1,206		1,396		5,074
Selling, general and administrative expenses				319		409			728			366		408		416		491		1,681
Depreciation and amortization				342		343			685			331		334		336		340		1,341
Impairments				3,006		—			3,006			1		2		853		5		861
Taxes other than income taxes				157		114			271			128		97		105		79		409
Accretion on discounted liabilities				6		5			11			6		5		6		6		23
Interest and debt expense				111		117			228			119		115		109		115		458
Foreign currency transaction (gains) losses				—		6			6			5		9		(9)		—		5
Total Costs and Expenses				23,722		11,628			35,350			23,318		26,689		26,828		28,546		105,381
Income (loss) before income taxes				(2,478)		(445)			(2,923)			340		1,829		943		1,066		4,178
Income tax expense (benefit)				(51)		(378)			(429)			70		325		150		256		801
Net Income (Loss)				(2,427)		(67)			(2,494)			270		1,504		793		810		3,377
Less: net income attributable to noncontrolling interests				69		74			143			66		80		81		74		301
Net Income (Loss) Attributable to Phillips 66				(2,496)		(141)			(2,637)			204		1,424		712		736		3,076


Net Income (Loss) Attributable to Phillips 66 Per Share of Common Stock (dollars)
Basic				(5.66)		(0.33)			(6.00)			0.44		3.13		1.58		1.65		6.80
Diluted				(5.66)		(0.33)			(6.00)			0.44		3.12		1.58		1.64		6.77

Weighted-Average Common Shares Outstanding (thousands)
Basic				441,345		438,756			440,050			457,599		453,681		449,005		445,332		451,364
Diluted				441,345		438,756			440,050			459,289		455,585		451,001		447,835		453,888






Effective tax rate (%)				2.1	%	84.9	%		14.7	%		20.6	%	17.8	%	15.9	%	24.0	%	19.2	%
Adjusted effective tax rate (%)				4.4	%	40.9	%		(210.1)	%		20.7	%	20.2	%	20.6	%	23.6	%	21.1	%

Page 1

Phillips 66 Earnings Release Supplemental Data


RECONCILIATION OF INCOME (LOSS) BEFORE INCOME TAXES BY SEGMENT TO
NET INCOME (LOSS) ATTRIBUTABLE TO PHILLIPS 66

	Millions of Dollars
	2020									2019
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD

Midstream				(702)	324		(378)		316	423	(460)	405	684
Chemicals				169	42		211		227	275	227	150	879
Refining				(2,261)	(878)		(3,139)		(198)	983	856	345	1,986
Marketing and Specialties				513	286		799		205	353	498	377	1,433
Corporate and Other				(197)	(219)		(416)		(210)	(205)	(178)	(211)	(804)
Income (loss) before income taxes				(2,478)	(445)		(2,923)		340	1,829	943	1,066	4,178
Less: income tax expense (benefit)				(51)	(378)		(429)		70	325	150	256	801
Net Income (Loss)				(2,427)	(67)		(2,494)		270	1,504	793	810	3,377
Less: net income attributable to noncontrolling interests				69	74		143		66	80	81	74	301
Net Income (Loss) Attributable to Phillips 66				(2,496)	(141)		(2,637)		204	1,424	712	736	3,076


























RECONCILIATION OF ADJUSTED INCOME (LOSS) BEFORE INCOME TAXES BY SEGMENT TO
ADJUSTED NET INCOME (LOSS) ATTRIBUTABLE TO PHILLIPS 66

	Millions of Dollars
	2020									2019
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Midstream
Transportation				200	130		330		203	245	248	250	946
NGL and Other				179	83		262		90	143	169	120	522
DCP Midstream				81	32		113		23	35	23	35	116
Total Midstream				460	245		705		316	423	440	405	1,584
Chemicals				193	89		282		227	275	269	173	944
Refining
Atlantic Basin/Europe				(196)	(220)		(416)		(7)	258	279	61	591
Gulf Coast				(173)	(356)		(529)		(118)	222	184	76	364
Central Corridor				223	(113)		110		56	520	408	333	1,317
West Coast				(255)	(178)		(433)		(150)	(17)	(32)	(125)	(324)
Total Refining				(401)	(867)		(1,268)		(219)	983	839	345	1,948
Marketing and Specialties
Marketing and Other				434	259		693		138	294	440	237	1,109
Specialties				54	34		88		67	59	58	50	234
Total Marketing and Specialties				488	293		781		205	353	498	287	1,343
Corporate and Other				(197)	(224)		(421)		(210)	(205)	(178)	(211)	(804)
Adjusted income (loss) before income taxes				543	(464)		79		319	1,829	1,868	999	5,015
Less: adjusted income tax expense (benefit)				24	(190)		(166)		66	370	385	236	1,057
Adjusted Net Income (Loss)				519	(274)		245		253	1,459	1,483	763	3,958
Less: adjusted net income attributable to noncontrolling interests				69	50		119		66	80	81	74	301
Adjusted Net Income (Loss) Attributable to Phillips 66				450	(324)		126		187	1,379	1,402	689	3,657

Page 2

Phillips 66 Earnings Release Supplemental Data









































































SPECIAL ITEMS INCLUDED IN INCOME (LOSS) BEFORE INCOME TAXES BY SEGMENT
AND NET INCOME (LOSS) ATTRIBUTABLE TO PHILLIPS 66

	Millions of Dollars
	2020										2019
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD		1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Midstream


Impairments				(1,161)	—			(1,161)		—	—	(853)	—	(853)
Impairments by equity affiliates				—	—			—		—	—	(47)	—	(47)
Pension settlement expense				—	(5)			(5)		—	—	—	—	—
Lower-of-cost-or-market inventory adjustments				(1)	—			(1)		—	—	—	—	—
Asset dispositions				—	84			84		—	—	—	—	—
Total Midstream				(1,162)	79			(1,083)		—	—	(900)	—	(900)

Chemicals
Impairments by equity affiliates				—	(15)			(15)		—	—	—	—	—
Lower-of-cost-or-market inventory adjustments				(24)	(32)			(56)		—	—	(42)	(23)	(65)

Total Chemicals				(24)	(47)			(71)		—	—	(42)	(23)	(65)

Refining
Impairments				(1,845)	—			(1,845)		—	—	—	—	—
Pending claims and settlements				—	—			—		21	—	—	—	21
Pension settlement expense				—	(26)			(26)		—	—	—	—	—



Lower-of-cost-or-market inventory adjustments				(15)	15			—		—	—	—	—	—
Asset dispositions				—	—			—		—	—	17	—	17
Total Refining				(1,860)	(11)			(1,871)		21	—	17	—	38

Marketing and Specialties

Pending claims and settlements				37	—			37		—	—	—	—	—
Certain tax impacts				—	—			—		—	—	—	90	90

Pension settlement expense				—	(4)			(4)		—	—	—	—	—
Lower-of-cost-or-market inventory adjustments				(12)	(3)			(15)		—	—	—	—	—
Total Marketing and Specialties				25	(7)			18		—	—	—	90	90

Corporate and Other
Certain tax impacts				—	8			8		—	—	—	—	—


Pension settlement expense				—	(3)			(3)		—	—	—	—	—

Total Corporate and Other				—	5			5		—	—	—	—	—

Total Special Items (Pre-tax)				(3,021)	19			(3,002)		21	—	(925)	67	(837)

Less: Income Tax Expense (Benefit)
Tax impact of pre-tax special items*				(75)	(208)			(283)		4	—	(235)	17	(214)
Other tax impacts				—	20			20		—	(45)	—	3	(42)

Total Income Tax Expense (Benefit)				(75)	(188)			(263)		4	(45)	(235)	20	(256)

Less: Income Attributable to Noncontrolling Interests
Asset dispositions				—	24			24		—	—	—	—	—


Total: Income Attributable to Noncontrolling Interests				—	24			24		—	—	—	—	—

Total Phillips 66 Special Items (After-tax)				(2,946)	183			(2,763)		17	45	(690)	47	(581)

* We generally tax effect taxable U.S.-based special items using a combined federal and state annual statutory income tax rate of approximately 25%. Taxable special items attributable to foreign locations likewise use a local statutory income tax rate. Nontaxable events reflect zero income tax. These events include, but are not limited to, most goodwill impairments, transactions legislatively exempt from income tax, transactions related to entities for which we have made an assertion that the undistributed earnings are permanently reinvested, or transactions occurring in jurisdictions with a valuation allowance.

SPECIAL ITEMS INCLUDED IN INCOME (LOSS) BEFORE INCOME TAXES BY BUSINESS LINES/REGIONS


				Millions of Dollars
				2020										2019
				1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD		1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD

Midstream
Transportation				—	84			84		—	—	—	—	—
NGL and Other				—	(5)			(5)		—	—	—	—	—
DCP Midstream				(1,162)	—			(1,162)		—	—	(900)	—	(900)
Total Midstream				(1,162)	79			(1,083)		—	—	(900)	—	(900)

Refining
Atlantic Basin/Europe				(441)	(7)			(448)		—	—	17	—	17
Gulf Coast				(670)	(9)			(679)		—	—	—	—	—
Central Corridor				(450)	9			(441)		21	—	—	—	21
West Coast				(299)	(4)			(303)		—	—	—	—	—
Total Refining				(1,860)	(11)			(1,871)		21	—	17	—	38

Marketing and Specialties
Marketing and Other				37	(4)			33		—	—	—	90	90
Specialties				(12)	(3)			(15)		—	—	—	—	—
Total Marketing and Specialties				25	(7)			18		—	—	—	90	90

Page 3

Phillips 66 Earnings Release Supplemental Data


CASH FLOW INFORMATION

	Millions of Dollars
	2020									2019
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Cash Flows From Operating Activities
Net income (loss)				(2,427)	(67)		(2,494)		270	1,504	793	810	3,377
Depreciation and amortization				342	343		685		331	334	336	340	1,341
Impairments				3,006	—		3,006		1	2	853	5	861
Accretion on discounted liabilities				6	5		11		6	5	6	6	23
Deferred income taxes				(47)	26		(21)		179	74	(138)	68	183
Undistributed equity earnings				(4)	302		298		95	(139)	19	(118)	(143)
Net gain on dispositions				(1)	(85)		(86)		(1)	—	(18)	(1)	(20)

Other				(139)	146		7		42	(101)	(38)	113	16
Net working capital changes				(519)	94		(425)		(1,401)	251	(151)	471	(830)
Net Cash Provided by (Used in) Operating Activities				217	764		981		(478)	1,930	1,662	1,694	4,808

Cash Flows From Investing Activities
Capital expenditures and investments				(923)	(939)		(1,862)		(1,097)	(631)	(867)	(1,278)	(3,873)
Return of investments in equity affiliates				38	50		88		21	14	20	16	71
Proceeds from asset dispositions				1	—		1		82	1	1	2	86
Advances/loans—related parties				(8)	(223)		(231)		—	(95)	—	(3)	(98)
Collection of advances/loans—related parties				—	44		44		—	95	—	—	95

Other				15	(79)		(64)		(18)	42	—	7	31
Net Cash Used in Investing Activities				(877)	(1,147)		(2,024)		(1,012)	(574)	(846)	(1,256)	(3,688)

Cash Flows From Financing Activities
Issuance of debt				1,199	2,031		3,230		725	135	898	25	1,783
Repayment of debt				(7)	(534)		(541)		(592)	(5)	(407)	(303)	(1,307)
Issuance of common stock				6	—		6		8	1	6	17	32
Repurchase of common stock				(443)	—		(443)		(344)	(455)	(439)	(412)	(1,650)
Dividends paid on common stock				(396)	(393)		(789)		(364)	(406)	(402)	(398)	(1,570)
Distributions to noncontrolling interests				(61)	(66)		(127)		(56)	(61)	(59)	(65)	(241)
Net proceeds from issuance of Phillips 66 Partners LP common units				2	—		2		32	10	91	40	173
Other				(24)	9		(15)		307	(6)	(19)	(13)	269
Net Cash Provided by (Used in) Financing Activities				276	1,047		1,323		(284)	(787)	(331)	(1,109)	(2,511)

Effect of Exchange Rate Changes on Cash and Cash Equivalents				(9)	5		(4)		8	(3)	(36)	17	(14)

Net Change in Cash and Cash Equivalents				(393)	669		276		(1,766)	566	449	(654)	(1,405)
Cash and cash equivalents at beginning of period				1,614	1,221		1,614		3,019	1,253	1,819	2,268	3,019
Cash and Cash Equivalents at End of Period				1,221	1,890		1,890		1,253	1,819	2,268	1,614	1,614

CAPITAL PROGRAM

	Millions of Dollars
	2020									2019
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Consolidated Capital Expenditures and Investments
Midstream				580	597		1,177		419	359	524	567	1,869
Chemicals				—	—		—		—	—	—	—	—
Refining				245	164		409		194	197	254	356	1,001
Marketing and Specialties				25	86		111		19	23	34	298	374
Corporate and Other				50	54		104		43	52	55	56	206
Adjusted Capital Spending				900	901		1,801		675	631	867	1,277	3,450
Capital expenditures and investments funded by certain joint venture partners (Midstream)				23	38		61		422	—	—	1	423
Consolidated Capital Expenditures and Investments				923	939		1,862		1,097	631	867	1,278	3,873

Proportional Share of Selected Equity Affiliates Capital Expenditures and Investments*
DCP Midstream (Midstream)				46	44		90		150	128	77	117	472
CPChem (Chemicals)				126	13		139		103	72	77	130	382
WRB (Refining)				37	34		71		37	44	54	40	175
Selected Equity Affiliates				209	91		300		290	244	208	287	1,029









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

Page 4

Phillips 66 Earnings Release Supplemental Data


MIDSTREAM

	Millions of Dollars, Except as Indicated
	2020									2019
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Income (Loss) before Income Taxes
Transportation				200	214		414		203	245	248	250	946
NGL and Other				179	78		257		90	143	169	120	522
DCP Midstream				(1,081)	32		(1,049)		23	35	(877)	35	(784)
Income (Loss) before Income Taxes				(702)	324		(378)		316	423	(460)	405	684







Adjusted EBITDA*
PSXP**				312	261		573		274	307	313	336	1,230
Other Midstream				193	80		273		133	197	223	155	708
Transportation and NGL and Other				505	341		846		407	504	536	491	1,938
DCP Midstream				139	87		226		67	81	79	96	323
Adjusted EBITDA				644	428		1,072		474	585	615	587	2,261
* See reconciliation of income (loss) before income taxes to adjusted EBITDA.
** Does not include certain PSXP adjustments made for PSXP stand-alone reporting purposes.

Equity in Earnings (Losses) of Affiliates
Transportation				98	70		168		103	124	128	128	483
NGL and Other				51	49		100		51	53	51	48	203
DCP Midstream				80	32		112		23	34	(23)	34	68
Total				229	151		380		177	211	156	210	754

Depreciation and Amortization*
Transportation				38	38		76		36	37	40	39	152
NGL and Other				39	39		78		37	38	38	39	152
DCP Midstream				—	—		—		—	—	—	—	—
Total				77	77		154		73	75	78	78	304
* Excludes D&A of all equity affiliates.

Operating and SG&A Expenses*
Transportation				188	186		374		172	173	183	196	724
NGL and Other				68	71		139		128	76	76	83	363
DCP Midstream				—	—		—		—	—	—	—	—
Total				256	257		513		300	249	259	279	1,087
* Excludes operating and SG&A expenses of all equity affiliates.

Transportation Volumes (MB/D)
Pipelines*				3,178	2,840		3,009		3,176	3,417	3,443	3,544	3,396
Terminals**				3,148	2,883		3,016		3,063	3,261	3,381	3,548	3,315
* Pipelines represent the sum of volumes transported through each separately tariffed consolidated pipeline segment.
** Terminals include Bayway and Ferndale crude oil rail rack volumes.

PSX Other Volumes
NGL Fractionated (MB/D)*				198	170		184		234	232	203	227	224
* Excludes DCP Midstream.

100% DCP Midstream, LLC Results
Net Income (Loss) Attributable to Owners*				50	(348)		(298)		45	68	(47)	12	78
* Includes impairment charges of $159 million and $650 million in the first and second quarters of 2020, respectively.

Depreciation and Amortization				99	93		192		103	101	100	100	404

Operating and SG&A Expenses				202	212		414		246	257	257	267	1,027

Net Interest Expense*				78	71		149		70	75	79	84	308
* Net of interest income.

Capital Expenditures and Investments				92	87		179		300	256	154	233	943

Selected DCP Operating Statistics
Wellhead Volume (Bcf/D)				5.0	4.5		4.8		5.0	4.9	5.0	5.0	5.0
NGL Production (MB/D)				396	374		385		428	423	409	409	417

Weighted-Average NGL Price*

DCP Midstream ($/gal)				0.39	0.32		0.36		0.60	0.51	0.44	0.50	0.51
* Based on index prices from the Mont Belvieu market hub, which are weighted by NGL component mix.

MLP Distributions*
GP Distribution from PSXP to Phillips 66**				—	—		—		69	70	—	—	139
LP Distribution from PSXP to Phillips 66				148	149		297		58	58	147	149	412
GP Distribution from DCP Midstream, LP to DCP Midstream***				—	—		—		43	43	43	—	129
LP Distribution from DCP Midstream, LP to DCP Midstream***				46	46		92		41	41	41	92	215

* Cash distributions declared attributable to general partner interest, common unit ownership and incentive distribution rights (IDRs). These distributions are eliminated in the respective sponsors consolidated financial statements.
** On August 1, 2019, PSXP eliminated its IDRs and 2% economic general partner interest, therefore, no distributions were made to the general partner interest after August 1, 2019.
*** Represents 100% of DCP Midstream's distributions from DCP Midstream, LP (DCP Partners). On November 6, 2019, DCP Partners completed a transaction to eliminate all general partner economic interests in DCP Partners and IDRs, therefore, no distributions were made to the general partner interest after November 6, 2019.

Page 5

Phillips 66 Earnings Release Supplemental Data


MIDSTREAM (continued)

	Millions of Dollars
	2020									2019
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Reconciliation of Midstream Income (Loss) before Income Taxes to Adjusted EBITDA
Income (loss) before income taxes				(702)	324		(378)		316	423	(460)	405	684
Plus:


Depreciation and amortization				77	77		154		73	75	78	78	304
EBITDA				(625)	401		(224)		389	498	(382)	483	988

Special Item Adjustments (pre-tax):


Impairments				1,161	—		1,161		—	—	853	—	853
Impairments by equity affiliates				—	—		—		—	—	47	—	47
Pension settlement expense				—	5		5		—	—	—	—	—
Lower-of-cost-or-market inventory adjustments				1	—		1		—	—	—	—	—
Asset dispositions				—	(84)		(84)		—	—	—	—	—
EBITDA, Adjusted for Special Items				537	322		859		389	498	518	483	1,888

Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes				—	—		—		—	—	—	—	—
Proportional share of selected equity affiliates net interest				39	36		75		30	30	36	39	135
Proportional share of selected equity affiliates depreciation and amortization				68	70		138		55	57	61	65	238
Adjusted EBITDA				644	428		1,072		474	585	615	587	2,261

Adjusted EBITDA by Business Line
100% PSXP Results
Income before income taxes				227	255		482		199	234	238	255	926
Plus:

Net interest expense				28	29		57		27	26	25	27	105
Depreciation and amortization				30	31		61		29	29	30	32	120
EBITDA				285	315		600		255	289	293	314	1,151

Special Item Adjustments (pre-tax):

Asset dispositions				—	(84)		(84)		—	—	—	—	—


EBITDA, Adjusted for Special Items*				285	231		516		255	289	293	314	1,151

Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes				—	—		—		—	—	—	—	—
Proportional share of selected equity affiliates net interest				9	9		18		7	6	7	7	27
Proportional share of selected equity affiliates depreciation and amortization				18	21		39		12	12	13	15	52
Adjusted EBITDA*				312	261		573		274	307	313	336	1,230
* Does not include certain PSXP adjustments made for PSXP stand-alone reporting purposes.

Page 6

Phillips 66 Earnings Release Supplemental Data


MIDSTREAM (continued)

	Millions of Dollars
	2020									2019
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Total Transportation and NGL and Other
Income before income taxes				379	292		671		293	388	417	370	1,468
Plus:


Depreciation and amortization				77	77		154		73	75	78	78	304
EBITDA*				456	369		825		366	463	495	448	1,772

Special Item Adjustments (pre-tax):



Pension settlement expense				—	5		5		—	—	—	—	—
Asset dispositions				—	(84)		(84)		—	—	—	—	—
EBITDA, Adjusted for Special Items*				456	290		746		366	463	495	448	1,772

Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes				—	—		—		—	—	—	—	—
Proportional share of selected equity affiliates net interest				17	16		33		15	14	14	15	58
Proportional share of selected equity affiliates depreciation and amortization				32	35		67		26	27	27	28	108
Adjusted EBITDA*				505	341		846		407	504	536	491	1,938
* Includes PSXP results. Does not include certain PSXP adjustments made for PSXP stand-alone reporting purposes.

DCP Midstream
Income (loss) before income taxes				(1,081)	32		(1,049)		23	35	(877)	35	(784)
Plus:
None				—	—		—		—	—	—	—	—
EBITDA				(1,081)	32		(1,049)		23	35	(877)	35	(784)

Special Item Adjustments (pre-tax):
Impairments				1,161	—		1,161		—	—	853	—	853
Impairments by equity affiliates				—	—		—		—	—	47	—	47
Lower-of-cost-or-market inventory adjustments				1	—		1		—	—	—	—	—
EBITDA, Adjusted for Special Items				81	32		113		23	35	23	35	116

Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes				—	—		—		—	—	—	—	—
Proportional share of selected equity affiliates net interest				22	20		42		15	16	22	24	77
Proportional share of selected equity affiliates depreciation and amortization				36	35		71		29	30	34	37	130
Adjusted EBITDA*				139	87		226		67	81	79	96	323
* Proportional share of selected equity affiliates is net of noncontrolling interests.

Page 7

Phillips 66 Earnings Release Supplemental Data


CHEMICALS

	Millions of Dollars, Except as Indicated
	2020													2019
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr		YTD		1st Qtr	2nd Qtr		3rd Qtr	4th Qtr		YTD

Income before Income Taxes				169		42			211			227		275		227		150		879

Equity in Earnings of Affiliate				166		39			205			225		274		224		147		870

100% CPChem Results
Net Income (Loss), excludes parent company income tax related to CPChem's earnings
Olefins and Polyolefins				354		142			496			434		525		417		262		1,638
Specialties, Aromatics and Styrenics				9		—			9			49		70		73		70		262
Corporate and Other				(26)		(59)			(85)			(34)		(36)		(34)		(36)		(140)
Total	337	83				420		449	559		456	296		1,760

Income (Loss) before Income Taxes
Olefins and Polyolefins				360		142			502			446		536		430		266		1,678
Specialties, Aromatics and Styrenics				10		3			13			57		78		78		74		287
Corporate and Other				(26)		(59)			(85)			(34)		(36)		(33)		(36)		(139)
Total	344	86				430		469	578		475	304		1,826

Depreciation and Amortization				148		144			292			146		139		140		150		575

Net Interest Expense*				16		24			40			20		17		19		16		72
* Net of interest income.

Investing Cash Flows—Outflows/(Inflows)
Capital Expenditures and Investments				252		25			277			206		144		153		260		763

Advance Repayments from Equity Companies				(21)		—			(21)			(26)		(28)		(9)		—		(63)
Return of Investments from Equity Companies				(25)		—			(25)			—		—		—		—		—







Olefins and Polyolefins Capacity Utilization (%)				98	%	103	%		100	%		98	%	95	%	97	%	97	%	97	%

Market Indicators*
U.S. Industry Prices
Ethylene, Average Acquisition Contract (cents/lb)				19.65		17.12			18.39			22.44		19.14		23.86		25.24		22.67
HDPE Blow Molding, Domestic Spot (cents/lb)				40.00		35.50			37.75			52.67		51.08		45.42		41.17		47.58

U.S. Industry Costs
Ethylene, Cash Cost Weighted Average Feed (cents/lb)				8.99		12.03			10.51			16.43		11.89		9.46		11.81		12.30
HDPE Blow Molding, Total Cash Cost (cents/lb)				32.89		30.28			31.59			35.46		31.97		36.68		38.15		35.56

Ethylene to High-Density Polyethylene Chain Cash Margin (cents/lb)				17.77		10.31			14.04			23.23		26.36		23.14		16.45		22.39
* Source: IHS, Inc.

Reconciliation of Chemicals Income before Income Taxes to Adjusted EBITDA
Income before income taxes				169		42			211			227		275		227		150		879
Plus:
None				—		—			—			—		—		—		—		—
EBITDA				169		42			211			227		275		227		150		879

Special Item Adjustments (pre-tax):
Impairments by equity affiliates				—		15			15			—		—		—		—		—
Lower-of-cost-or-market inventory adjustments				24		32			56			—		—		42		23		65

EBITDA, Adjusted for Special Items				193		89			282			227		275		269		173		944

Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes				13		5			18			22		24		23		10		79
Proportional share of selected equity affiliates net interest				9		11			20			13		8		10		9		40
Proportional share of selected equity affiliates depreciation and amortization				103		103			206			105		106		104		100		415
Adjusted EBITDA				318		208			526			367		413		406		292		1,478

Page 8

Phillips 66 Earnings Release Supplemental Data


REFINING

	Millions of Dollars, Except as Indicated
	2020									2019
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Income (Loss) before Income Taxes
Atlantic Basin/Europe				(637)	(227)		(864)		(7)	258	296	61	608
Gulf Coast				(843)	(365)		(1,208)		(118)	222	184	76	364
Central Corridor				(227)	(104)		(331)		77	520	408	333	1,338
West Coast				(554)	(182)		(736)		(150)	(17)	(32)	(125)	(324)
Income (Loss) before Income Taxes				(2,261)	(878)		(3,139)		(198)	983	856	345	1,986








Income (Loss) before Income Taxes ($/BBL)
Atlantic Basin/Europe				(15.41)	(5.80)		(10.74)		(0.17)	5.04	5.93	1.16	3.11
Gulf Coast				(13.16)	(5.98)		(9.66)		(1.80)	2.88	2.46	1.00	1.24
Central Corridor				(9.72)	(5.01)		(7.50)		3.22	19.81	15.26	12.61	12.95
West Coast				(19.87)	(7.07)		(13.73)		(4.89)	(0.52)	(0.93)	(3.89)	(2.49)
Worldwide				(14.44)	(5.99)		(10.35)		(1.22)	5.25	4.60	1.84	2.75

Realized Refining Margins ($/BBL)*
Atlantic Basin/Europe				2.38	1.53		1.97		7.76	10.85	11.48	7.06	9.33
Gulf Coast				6.76	0.36		3.64		5.44	8.20	8.34	7.45	7.42
Central Corridor				13.50	5.78		10.03		10.23	17.84	15.99	14.92	14.91
West Coast				4.80	5.05		4.92		6.25	9.94	10.11	10.22	9.18
Worldwide				7.11	2.60		4.96		7.23	11.37	11.18	9.50	9.91
* See note on the use of non-GAAP measures. Also, reconciliations of income (loss) before income taxes to realized refining margin for each period and by region are included in the "Realized Margin Non-GAAP Reconciliations" section.

Equity in Earnings (Losses) of Affiliates
Atlantic Basin/Europe				(2)	(3)		(5)		(3)	(3)	(3)	(2)	(11)
Gulf Coast				1	1		2		—	(2)	1	(1)	(2)
Central Corridor				(51)	(79)		(130)		84	133	69	45	331
West Coast				—	—		—		—	—	—	—	—
Total				(52)	(81)		(133)		81	128	67	42	318

Depreciation and Amortization*
Atlantic Basin/Europe				51	49		100		50	49	49	50	198
Gulf Coast				71	75		146		67	68	66	67	268
Central Corridor				34	33		67		33	34	34	34	135
West Coast				65	63		128		62	63	66	62	253
Total				221	220		441		212	214	215	213	854
* Excludes D&A of all equity affiliates.

Operating and SG&A Expenses*
Atlantic Basin/Europe				207	202		409		240	211	218	233	902
Gulf Coast				499	287		786		382	330	352	408	1,472
Central Corridor				142	127		269		146	141	131	154	572
West Coast				293	225		518		254	257	290	373	1,174
Total				1,141	841		1,982		1,022	939	991	1,168	4,120
* Excludes operating and SG&A expenses of all equity affiliates.

Turnaround Expense, included in Operating and SG&A Expenses*
Atlantic Basin/Europe				16	9		25		20	13	17	15	65
Gulf Coast				240	13		253		90	29	44	94	257
Central Corridor				15	3		18		25	8	9	10	52
West Coast				58	13		71		13	17	50	113	193
Total				329	38		367		148	67	120	232	567
* Excludes turnaround expense of all equity affiliates.

Taxes Other than Income Taxes, excluding Excise Taxes
Atlantic Basin/Europe				19	15		34		15	11	12	14	52
Gulf Coast				37	25		62		23	16	23	11	73
Central Corridor				17	14		31		13	10	10	7	40
West Coast				31	22		53		24	21	23	17	85
Total				104	76		180		75	58	68	49	250

Foreign Currency Gains (Losses) Pre-Tax				1	(5)		(4)		(5)	(7)	10	2	—

Refining—Equity Affiliate Information
Equity in earnings (losses) of affiliates				(52)	(81)		(133)		81	128	67	42	318
Less: Share of equity affiliate gross margin included in Realized Refining Margin and other equity affiliate-related costs*				(156)	(72)		(228)		(277)	(309)	(273)	(237)	(1,096)
Equity affiliate-related expenses not included in Realized Refining Margins				(208)	(153)		(361)		(196)	(181)	(206)	(195)	(778)
Regional Totals
Atlantic Basin/Europe				(11)	(16)		(27)		(13)	(14)	(7)	—	(34)
Gulf Coast				2	—		2		—	(2)	1	(1)	(2)
Central Corridor				(199)	(137)		(336)		(183)	(165)	(200)	(194)	(742)
Total				(208)	(153)		(361)		(196)	(181)	(206)	(195)	(778)
* Other costs associated with equity affiliates which do not flow through equity earnings.

Page 9

Phillips 66 Earnings Release Supplemental Data


REFINING (continued)

	2020													2019
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr		YTD		1st Qtr	2nd Qtr		3rd Qtr	4th Qtr		YTD
Reconciliation of Refining Income (Loss) before Income Taxes to Adjusted EBITDA ($ Millions)
Income (loss) before income taxes				(2,261)		(878)			(3,139)			(198)		983		856		345		1,986
Plus:

Depreciation and amortization				221		220			441			212		214		215		213		854
EBITDA				(2,040)		(658)			(2,698)			14		1,197		1,071		558		2,840

Special Item Adjustments (pre-tax):
Impairments				1,845		—			1,845			—		—		—		—		—
Pending claims and settlements				—		—			—			(21)		—		—		—		(21)
Pension settlement expense				—		26			26			—		—		—		—		—



Lower-of-cost-or-market inventory adjustments				15		(15)			—			—		—		—		—		—
Asset dispositions				—		—			—			—		—		(17)		—		(17)
EBITDA, Adjusted for Special Items				(180)		(647)			(827)			(7)		1,197		1,054		558		2,802

Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes				—		(1)			(1)			—		—		1		(1)		—
Proportional share of selected equity affiliates net interest				—		1			1			(1)		(1)		(1)		—		(3)
Proportional share of selected equity affiliates depreciation and amortization				78		72			150			71		69		70		71		281
Adjusted EBITDA				(102)		(575)			(677)			63		1,265		1,124		628		3,080

Operating Statistics
Atlantic Basin/Europe*
Crude Oil Charge Input (MB/D)				437		402			420			427		519		509		531		497
Total Processed Inputs (MB/D)				454		430			442			463		562		542		574		536
Crude Oil Capacity Utilization (%)				81	%	75	%		78	%		80	%	97	%	95	%	99	%	92	%
Clean Product Yield (%)				83	%	82	%		83	%		86	%	88	%	87	%	90	%	88	%
* Includes our proportionate share of a refinery complex in Karlsruhe, Germany.

Gulf Coast
Crude Oil Charge Input (MB/D)				645		609			627			654		757		729		759		725
Total Processed Inputs (MB/D)				704		671			687			727		849		815		827		805
Crude Oil Capacity Utilization (%)				84	%	79	%		81	%		85	%	99	%	95	%	99	%	95	%
Clean Product Yield (%)				71	%	79	%		75	%		80	%	81	%	78	%	80	%	80	%

Central Corridor*
Crude Oil Charge Input (MB/D)				471		386			428			445		521		517		509		498
Total Processed Inputs (MB/D)				487		396			442			466		538		531		526		515
Crude Oil Capacity Utilization (%)				89	%	73	%		81	%		86	%	101	%	100	%	99	%	97	%
Clean Product Yield (%)				88	%	87	%		88	%		90	%	88	%	88	%	91	%	89	%
* Includes our proportionate share of the Borger Refinery and Wood River Refinery.

West Coast
Crude Oil Charge Input (MB/D)				279		263			271			307		317		351		318		323
Total Processed Inputs (MB/D)				306		283			295			341		359		375		349		356
Crude Oil Capacity Utilization (%)				77	%	72	%		75	%		84	%	87	%	97	%	87	%	89	%
Clean Product Yield (%)				93	%	87	%		90	%		88	%	81	%	85	%	76	%	83	%

Worldwide—Including Proportionate Share of Equity Affiliates
Crude Oil Charge Input (MB/D)				1,832		1,660			1,746			1,833		2,114		2,106		2,117		2,043
Total Processed Inputs (MB/D)				1,951		1,780			1,866			1,997		2,308		2,263		2,276		2,212
Crude Oil Capacity Utilization (%)				83	%	75	%		79	%		84	%	97	%	97	%	97	%	94	%
Clean Product Yield (%)				82	%	83	%		82	%		85	%	84	%	84	%	84	%	84	%

Page 10

Phillips 66 Earnings Release Supplemental Data


REFINING (continued)

	2020									2019
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Refined Petroleum Products Production (MB/D)
Atlantic Basin/Europe*
Gasoline				191	178		185		202	240	230	266	234
Distillates				174	160		167		185	241	227	234	222
Other				91	95		93		80	89	88	82	85
Total				456	433		445		467	570	545	582	541
* Includes our proportionate share of a refinery complex in Karlsruhe, Germany.

Gulf Coast
Gasoline				234	277		255		296	348	312	332	322
Distillates				248	231		240		261	310	297	301	292
Other				221	167		194		165	192	208	192	190
Total				703	675		689		722	850	817	825	804

Central Corridor*
Gasoline				245	183		214		244	260	256	267	257
Distillates				183	161		172		175	214	208	210	202
Other				60	52		56		49	67	71	51	59
Total				488	396		442		468	541	535	528	518
* Includes our proportionate share of the Borger Refinery and Wood River Refinery.

West Coast
Gasoline				151	126		139		165	167	170	148	163
Distillates				134	121		127		136	124	148	116	131
Other				21	33		27		41	66	53	81	60
Total				306	280		293		342	357	371	345	354

Worldwide—Including Proportionate Share of Equity Affiliates
Gasoline	821	764			793	907	1,015	968	1,013	976
Distillates	739	673			706	757	889	880	861	847
Other	393	347			370	335	414	420	406	394
Total	1,953	1,784			1,869	1,999	2,318	2,268	2,280	2,217

Market Indicators*
Crude and Crude Differentials ($/BBL)
WTI				45.97	27.80		36.89		54.87	59.80	56.44	56.98	57.02
Brent				50.26	29.20		39.73		63.20	68.82	61.94	63.25	64.30
LLS				48.30	30.07		39.18		62.40	66.92	60.64	60.79	62.69
ANS				51.40	30.37		40.88		64.50	68.18	63.07	64.41	65.04
WTI less Maya				4.81	3.40		4.11		(3.91)	(2.26)	(0.20)	4.06	(0.58)
WTI less WCS (settlement differential)				20.53	11.47		16.00		12.29	10.67	12.24	15.83	12.76

Natural Gas ($/MMBtu)
Henry Hub				1.88	1.65		1.76		2.89	2.51	2.33	2.35	2.52

Product Margins ($/BBL)
Atlantic Basin/Europe
East Coast Gasoline less Brent				4.84	7.87		6.36		1.79	12.06	11.84	6.44	8.03
East Coast Distillate less Brent				14.93	10.95		12.94		18.05	14.27	17.43	18.66	17.10
Gulf Coast
Gulf Coast Gasoline less LLS				4.97	3.66		4.31		1.58	8.18	8.24	5.48	5.87
Gulf Coast Distillate less LLS				13.86	8.04		10.95		16.41	14.28	17.22	17.62	16.38
Central Corridor
Central Gasoline less WTI				7.70	6.18		6.94		9.72	18.71	15.28	10.75	13.61
Central Distillate less WTI				17.34	11.41		14.37		24.92	22.49	21.39	22.29	22.77
West Coast
West Coast Gasoline less ANS				13.32	9.36		11.34		11.83	23.50	19.48	16.85	17.92
West Coast Distillate less ANS				17.22	10.36		13.79		16.20	21.10	18.38	21.49	19.29

Worldwide Market Crack Spread ($/BBL)**				9.82	7.47		8.65		9.77	15.24	14.60	12.45	13.01
* Based on daily spot prices, unless otherwise noted.
** Weighted average based on Phillips 66 crude capacity.

Page 11

Phillips 66 Earnings Release Supplemental Data


MARKETING AND SPECIALTIES

	Millions of Dollars, Except as Indicated
	2020									2019
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Income before Income Taxes
Marketing and Other				471	255		726		138	294	440	327	1,199
Specialties				42	31		73		67	59	58	50	234
Income before Income Taxes				513	286		799		205	353	498	377	1,433






Income before Income Taxes ($/BBL)
U.S.				1.79	1.24		1.53		0.60	1.09	1.66	1.42	1.22
International				6.58	3.48		5.25		2.25	4.81	5.19	2.01	3.58

Realized Marketing Fuel Margins ($/BBL)*
U.S.				2.08	1.75		1.92		1.06	1.53	2.11	1.51	1.57
International				8.53	5.07		7.04		3.80	6.03	6.37	3.35	4.90
* See note on the use of non-GAAP measures. Also, reconciliations of income before income taxes to realized marketing fuel margin for each period and by region are included in the "Realized Margin Non-GAAP Reconciliations" section.


Other Realized Margins and Revenues not included in Marketing Fuel Margins*
Marketing and Other				117	123		240		131	143	168	233	675
Specialties				81	56		137		100	93	83	74	350
Total				198	179		377		231	236	251	307	1,025
* Excludes gain on dispositions and excise taxes on sales of refined petroleum products.

Equity in Earnings of Affiliates
Marketing and Other				22	38		60		22	28	31	45	126
Specialties				—	10		10		11	7	21	20	59
Total				22	48		70		33	35	52	65	185

Depreciation and Amortization*
Marketing and Other				20	21		41		21	21	21	22	85
Specialties				5	4		9		5	4	4	5	18
Total				25	25		50		26	25	25	27	103
* Excludes D&A of all equity affiliates.

Operating and SG&A Expenses*
Marketing and Other				211	232		443		261	297	300	340	1,198
Specialties				31	30		61		36	36	39	38	149
Total				242	262		504		297	333	339	378	1,347
* Excludes operating and SG&A expenses of all equity affiliates.

Refined Petroleum Products Sales (MB/D)
U.S. Marketing
Gasoline				984	881		933		1,063	1,151	1,132	1,213	1,141
Distillates	854	707			780	759	898	914	1,106	920
Other	—	—			—	—	—	—	—	—
Total	1,838	1,588			1,713	1,822	2,049	2,046	2,319	2,061

International Marketing
Gasoline	82	60			70	88	89	90	89	89
Distillates	183	140			162	181	187	185	183	184
Other	20	15			18	18	19	16	20	18
Total	285	215			250	287	295	291	292	291

Worldwide Marketing
Gasoline	1,066	941			1,003	1,151	1,240	1,222	1,302	1,230
Distillates	1,037	847			942	940	1,085	1,099	1,289	1,104
Other	20	15			18	18	19	16	20	18
Total	2,123	1,803			1,963	2,109	2,344	2,337	2,611	2,352

Foreign Currency Gains (Losses) Pre-Tax				1	—		1		2	(1)	—	(1)	—

Reconciliation of Marketing and Specialties Income before Income Taxes to Adjusted EBITDA
Income before income taxes				513	286		799		205	353	498	377	1,433
Plus:

Depreciation and amortization				25	25		50		26	25	25	27	103
EBITDA				538	311		849		231	378	523	404	1,536

Special Item Adjustments (pre-tax):
Pending claims and settlements				(37)	—		(37)		—	—	—	—	—
Certain tax impacts				—	—		—		—	—	—	(90)	(90)
Pension settlement expense				—	4		4		—	—	—	—	—
Lower-of-cost-or-market inventory adjustments				12	3		15		—	—	—	—	—


EBITDA, Adjusted for Special Items				513	318		831		231	378	523	314	1,446

Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes				—	—		—		—	—	—	—	—
Proportional share of selected equity affiliates net interest				6	4		10		1	2	1	2	6
Proportional share of selected equity affiliates depreciation and amortization				7	9		16		3	2	3	3	11
Adjusted EBITDA				526	331		857		235	382	527	319	1,463

Page 12

Phillips 66 Earnings Release Supplemental Data


CORPORATE AND OTHER

	Millions of Dollars, Except as Indicated
	2020														2019
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr		YTD			1st Qtr	2nd Qtr		3rd Qtr	4th Qtr		YTD

Loss before Income Taxes				(197)		(219)				(416)			(210)		(205)		(178)		(211)		(804)

Detail of Loss before Income Taxes
Net interest expense				(103)		(114)				(217)			(108)		(105)		(98)		(104)		(415)
Corporate overhead and other				(94)		(105)				(199)			(102)		(100)		(80)		(107)		(389)



Total				(197)		(219)				(416)			(210)		(205)		(178)		(211)		(804)

Net Interest Expense
Interest expense				(137)		(139)				(276)			(132)		(133)		(131)		(139)		(535)
Capitalized interest				26		22				48			13		18		22		24		77
Interest income				8		3				11			11		10		11		11		43
Total				(103)		(114)				(217)			(108)		(105)		(98)		(104)		(415)




Reconciliation of Corporate and Other Loss before Income Taxes to Adjusted EBITDA
Loss before income taxes				(197)		(219)				(416)			(210)		(205)		(178)		(211)		(804)
Plus:

Net interest expense				103		114				217			108		105		98		104		415
Depreciation and amortization				19		21				40			20		20		18		22		80
EBITDA				(75)		(84)				(159)			(82)		(80)		(62)		(85)		(309)

Special Item Adjustments (pre-tax):



Pension settlement expense				—		3				3			—		—		—		—		—
EBITDA, Adjusted for Special Items				(75)		(81)				(156)			(82)		(80)		(62)		(85)		(309)

Other Adjustments (pre-tax):
None				—		—				—			—		—		—		—		—
Adjusted EBITDA				(75)		(81)				(156)			(82)		(80)		(62)		(85)		(309)

Foreign Currency Losses Pre-Tax				(2)		(1)				(3)			(1)		(2)		(1)		(1)		(5)

Phillips 66 Total Company Debt
Total Debt				12,963		14,446				14,446			11,298		11,439		11,925		11,763		11,763
Debt-to-Capital Ratio (%)				35	%	38	%			38	%		30	%	30	%	31	%	30	%	30	%

Total Equity				23,639		23,295				23,295			26,745		27,306		27,092		27,169		27,169

RECONCILIATION OF CONSOLIDATED NET INCOME (LOSS) TO ADJUSTED EBITDA ATTRIBUTABLE TO PHILLIPS 66

				Millions of Dollars
				2020																	2019
				1st Qtr		2nd Qtr		3rd Qtr	4th Qtr	YTD			1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD

Net income (loss)				(2,427)		(67)				(2,494)			270		1,504		793		810		3,377
Plus:
Income tax expense (benefit)				(51)		(378)				(429)			70		325		150		256		801
Net interest expense				103		114				217			108		105		98		104		415
Depreciation and amortization				342		343				685			331		334		336		340		1,341
Phillips 66 EBITDA				(2,033)		12				(2,021)			779		2,268		1,377		1,510		5,934

Special Item Adjustments (pre-tax):
Impairments				3,006		—				3,006			—		—		853		—		853
Impairments by equity affiliates				—		15				15			—		—		47		—		47
Pending claims and settlements				(37)		—				(37)			(21)		—		—		—		(21)
Certain tax impacts				—		—				—			—		—		—		(90)		(90)

Pension settlement expense				—		38				38			—		—		—		—		—

Lower-of-cost-or-market inventory adjustments				52		20				72			—		—		42		23		65
Asset dispositions				—		(84)				(84)			—		—		(17)		—		(17)

Phillips 66 EBITDA, Adjusted for Special Items				988		1				989			758		2,268		2,302		1,443		6,771

Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes				13		4				17			22		24		24		9		79
Proportional share of selected equity affiliates net interest				54		52				106			43		39		46		50		178
Proportional share of selected equity affiliates depreciation and amortization				256		254				510			234		234		238		239		945
EBITDA attributable to Phillips 66 noncontrolling interests				(94)		(101)				(195)			(89)		(102)		(105)		(95)		(391)
Phillips 66 Adjusted EBITDA				1,217		210				1,427			968		2,463		2,505		1,646		7,582


Use of Non-GAAP Financial Information—This earnings release supplemental data includes the terms "EBITDA," "adjusted EBITDA," "realized refining margin per barrel," "realized marketing fuel margin per barrel," and "adjusted capital spending." These are non-GAAP financial measures. EBITDA and adjusted EBITDA are included to help facilitate comparisons of operating performance across periods, to help facilitate comparisons with other companies in our industry and to help facilitate determination of enterprise value. The GAAP measures most directly comparable to EBITDA and adjusted EBITDA are net income for consolidated company information and income before income taxes for segment information. Reconciliations of net income (loss) and income (loss) before income taxes to EBITDA and adjusted EBITDA are included in this earnings release supplemental data. Realized refining margin per barrel is calculated on a similar basis as industry crack spreads and we believe it provides a useful measure of how well we performed relative to benchmark industry margins. Realized marketing fuel margin per barrel demonstrates the value uplift our marketing operations provide by optimizing the placement and ultimate sale of our refineries' fuel production. The GAAP measure most directly comparable to both realized margin per barrel measures is income before income taxes per barrel. Reconciliations of income (loss) before income taxes per barrel to realized refining margin and realized marketing fuel margin are included in this earnings release supplemental data. Adjusted capital spending is a non-GAAP financial measure that demonstrates the portion of total consolidated capital expenditures and investments funded by Phillips 66. The GAAP financial measure most comparable to adjusted capital spending is capital expenditures and investments. A reconciliation of capital expenditures and investments to adjusted capital spending is included in this earnings release supplemental data. Adjusted effective tax rate demonstrates the effective tax rate with the consideration of the tax effect on special items. The GAAP financial measure most comparable to adjusted effective tax rate is effective tax rate. A reconciliation of effective tax rate to adjusted effective tax rate is included in this earnings release supplemental data.

Page 13

Phillips 66 Earnings Release Supplemental Data


REALIZED MARGIN NON-GAAP RECONCILIATIONS

RECONCILIATION OF INCOME (LOSS) BEFORE INCOME TAXES TO REALIZED REFINING MARGINS

	Millions of Dollars, Except as Indicated
	2020									2019
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD

ATLANTIC BASIN/EUROPE
Income (loss) before income taxes				(637)	(227)		(864)		(7)	258	296	61	608
Plus:

Taxes other than income taxes				19	15		34		15	11	12	14	52
Depreciation, amortization and impairments				492	49		541		50	49	49	50	198
Selling, general and administrative expenses				13	12		25		7	10	10	12	39
Operating expenses				194	190		384		233	201	208	221	863
Equity in losses of affiliates				2	3		5		3	3	3	2	11
Other segment (income) expense, net				(2)	3		1		6	4	(24)	(2)	(16)
Proportional share of refining gross margins contributed by equity affiliates				16	16		32		17	19	19	14	69


Realized refining margins				97	61		158		324	555	573	372	1,824

Total processed inputs (MB)				41,335	39,121		80,456		41,682	51,172	49,895	52,757	195,506
Adjusted total processed inputs (MB)				41,335	39,121		80,456		41,682	51,172	49,895	52,757	195,506

Income (loss) before income taxes ($/BBL)**				(15.41)	(5.80)		(10.74)		(0.17)	5.04	5.93	1.16	3.11
Realized refining margins ($/BBL)***				2.38	1.53		1.97		7.76	10.85	11.48	7.06	9.33

GULF COAST
Income (loss) before income taxes				(843)	(365)		(1,208)		(118)	222	184	76	364
Plus:

Taxes other than income taxes				37	25		62		23	16	23	11	73
Depreciation, amortization and impairments				741	75		816		67	68	66	70	271
Selling, general and administrative expenses				7	10		17		(2)	8	7	10	23
Operating expenses				492	277		769		384	322	345	398	1,449
Equity in (earnings) losses of affiliates				(1)	(1)		(2)		—	2	(1)	1	2
Other segment (income) expense, net				1	—		1		1	(5)	1	—	(3)
Proportional share of refining gross margins contributed by equity affiliates				—	—		—		—	—	—	—	—


Realized refining margins				434	21		455		355	633	625	566	2,179

Total processed inputs (MB)				64,066	61,032		125,098		65,434	77,186	74,936	76,110	293,666
Adjusted total processed inputs (MB)				64,066	61,032		125,098		65,434	77,186	74,936	76,110	293,666

Income (loss) before income taxes ($/BBL)**				(13.16)	(5.98)		(9.66)		(1.80)	2.88	2.46	1.00	1.24
Realized refining margins ($/BBL)***				6.76	0.36		3.64		5.44	8.20	8.34	7.45	7.42

CENTRAL CORRIDOR
Income (loss) before income taxes				(227)	(104)		(331)		77	520	408	333	1,338
Plus:

Taxes other than income taxes				17	14		31		13	10	10	7	40
Depreciation, amortization and impairments				469	33		502		33	34	34	34	135
Selling, general and administrative expenses				6	7		13		1	7	6	8	22
Operating expenses				136	120		256		145	134	125	146	550
Equity in (earnings) losses of affiliates				51	79		130		(84)	(133)	(69)	(45)	(331)
Other segment (income) expense, net				(3)	3		—		(2)	4	(3)	1	—
Proportional share of refining gross margins contributed by equity affiliates				113	92		205		267	298	269	239	1,073
Special items:
Pending claims and settlements				—	—		—		(21)	—	—	—	(21)
Lower-of-cost-or-market inventory adjustments				35	(35)		—		—	—	—	—	—
Realized refining margins				597	209		806		429	874	780	723	2,806

Total processed inputs (MB)				23,345	20,778		44,123		23,893	26,244	26,740	26,417	103,294
Adjusted total processed inputs (MB)*				44,291	36,067		80,358		41,896	48,932	48,853	48,364	188,045

Income (loss) before income taxes ($/BBL)**				(9.72)	(5.01)		(7.50)		3.22	19.81	15.26	12.61	12.95
Realized refining margins ($/BBL)***				13.50	5.78		10.03		10.23	17.84	15.99	14.92	14.91

Page 14

Phillips 66 Earnings Release Supplemental Data


RECONCILIATION OF INCOME (LOSS) BEFORE INCOME TAXES TO REALIZED REFINING MARGINS (continued)

	Millions of Dollars, Except as Indicated
	2020									2019
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD

WEST COAST
Loss before income taxes				(554)	(182)		(736)		(150)	(17)	(32)	(125)	(324)
Plus:

Taxes other than income taxes				31	22		53		24	21	23	17	85
Depreciation, amortization and impairments				364	63		427		62	63	66	62	253
Selling, general and administrative expenses				10	9		19		5	8	8	10	31
Operating expenses				283	216		499		249	249	282	363	1,143

Other segment expense, net				1	1		2		2	1	1	1	5



Realized refining margins				135	129		264		192	325	348	328	1,193

Total processed inputs (MB)				27,877	25,737		53,614		30,703	32,697	34,498	32,116	130,014
Adjusted total processed inputs (MB)				27,877	25,737		53,614		30,703	32,697	34,498	32,116	130,014

Loss before income taxes ($/BBL)**				(19.87)	(7.07)		(13.73)		(4.89)	(0.52)	(0.93)	(3.89)	(2.49)
Realized refining margins ($/BBL)***				4.80	5.05		4.92		6.25	9.94	10.11	10.22	9.18

WORLDWIDE
Income (loss) before income taxes				(2,261)	(878)		(3,139)		(198)	983	856	345	1,986
Plus:

Taxes other than income taxes				104	76		180		75	58	68	49	250
Depreciation, amortization and impairments				2,066	220		2,286		212	214	215	216	857
Selling, general and administrative expenses				36	38		74		11	33	31	40	115
Operating expenses				1,105	803		1,908		1,011	906	960	1,128	4,005
Equity in (earnings) losses of affiliates				52	81		133		(81)	(128)	(67)	(42)	(318)
Other segment (income) expense, net				(3)	7		4		7	4	(25)	—	(14)
Proportional share of refining gross margins contributed by equity affiliates				129	108		237		284	317	288	253	1,142
Special items:

Pending claims and settlements				—	—		—		(21)	—	—	—	(21)
Lower-of-cost-or-market inventory adjustments				35	(35)		—		—	—	—	—	—

Realized refining margins				1,263	420		1,683		1,300	2,387	2,326	1,989	8,002

Total processed inputs (MB)				156,623	146,668		303,291		161,712	187,299	186,069	187,400	722,480
Adjusted total processed inputs (MB)*				177,569	161,957		339,526		179,715	209,987	208,182	209,347	807,231

Income (loss) before income taxes ($/BBL)**				(14.44)	(5.99)		(10.35)		(1.22)	5.25	4.60	1.84	2.75
Realized refining margins ($/BBL)***				7.11	2.60		4.96		7.23	11.37	11.18	9.50	9.91
* Adjusted total processed inputs include our proportional share of processed inputs of an equity affiliate.
** Income (loss) before income taxes divided by total processed inputs.
*** Realized refining margins per barrel, as presented, are calculated using the underlying realized refining margin amounts, in dollars, divided by adjusted total processed inputs, in barrels. As such, recalculated per barrel amounts using the rounded margins and barrels presented may differ from the presented per barrel amounts.

Page 15

Phillips 66 Earnings Release Supplemental Data


RECONCILIATION OF INCOME BEFORE INCOME TAXES TO REALIZED MARKETING FUEL MARGINS

	Millions of Dollars, Except as Indicated
	2020													2019
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr		YTD		1st Qtr	2nd Qtr		3rd Qtr	4th Qtr		YTD

UNITED STATES
Income before income taxes				299		179			478			98		203		312		303		916
Plus:

Taxes other than income taxes				2		2			4			2		3		3		(3)		5
Depreciation and amortization				3		3			6			2		3		2		3		10
Selling, general and administrative expenses				127		151			278			155		183		184		221		743
Equity in earnings of affiliates				—		(11)			(11)			(1)		(3)		(3)		(20)		(27)
Other operating revenues*				(84)		(71)			(155)			(82)		(103)		(101)		(93)		(379)
Other segment income				—		—			—			—		—		—		—		—
Special items:
Certain tax impacts				—		—			—			—		—		—		(90)		(90)


Realized marketing fuel margins				347		253			600			174		286		397		321		1,178

Total fuel sales volumes (MB)				167,178		144,517			311,695			164,058		186,488		188,172		213,346		752,064

Income before income taxes ($/BBL)				1.79		1.24			1.53			0.60		1.09		1.66		1.42		1.22
Realized marketing fuel margins ($/BBL)**				2.08		1.75			1.92			1.06		1.53		2.11		1.51		1.57

INTERNATIONAL
Income before income taxes				171		68			239			58		129		139		54		380
Plus:

Taxes other than income taxes				1		2			3			2		1		2		1		6
Depreciation and amortization				17		16			33			16		16		16		17		65
Selling, general and administrative expenses				63		57			120			62		61		61		65		249
Equity in earnings of affiliates				(22)		(28)			(50)			(22)		(25)		(27)		(25)		(99)
Other operating revenues*				2		(4)			(2)			(6)		(9)		(10)		(12)		(37)
Other segment (income) expense, net				—		1			1			(2)		1		1		1		1
Marketing margins				232		112			344			108		174		182		101		565
Less: margin for nonfuel related sales				10		13			23			10		12		11		11		44
Realized marketing fuel margins				222		99			321			98		162		171		90		521

Total fuel sales volumes (MB)				25,979		19,583			45,562			25,796		26,837		26,796		26,834		106,263

Income before income taxes ($/BBL)				6.58		3.48			5.25			2.25		4.81		5.19		2.01		3.58
Realized marketing fuel margins ($/BBL)**				8.53		5.07			7.04			3.80		6.03		6.37		3.35		4.90

* Includes other nonfuel revenues.
** Realized marketing fuel margins per barrel, as presented, are calculated using the underlying realized marketing fuel margin amounts, in dollars, divided by sales volumes, in barrels. As such, recalculated per barrel amounts using the rounded margins and barrels presented may differ from the presented per barrel amounts.

ADJUSTED EFFECTIVE TAX RATE NON-GAAP RECONCILIATION

RECONCILIATION OF EFFECTIVE TAX RATE TO ADJUSTED EFFECTIVE TAX RATE

	Millions of Dollars, Except as Indicated
	2020													2019
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr		YTD		1st Qtr	2nd Qtr		3rd Qtr	4th Qtr		YTD

EFFECTIVE TAX RATES
Income (loss) before income taxes				(2,478)		(445)			(2,923)			340		1,829		943		1,066		4,178
Special items				3,021		(19)			3,002			(21)		—		925		(67)		837
Adjusted income (loss) before income taxes				543		(464)			79			319		1,829		1,868		999		5,015

Income tax expense (benefit)				(51)		(378)			(429)			70		325		150		256		801
Special items				75		188			263			(4)		45		235		(20)		256
Adjusted income tax expense (benefit)				24		(190)			(166)			66		370		385		236		1,057

Effective tax rate (%)				2.1	%	84.9	%		14.7	%		20.6	%	17.8	%	15.9	%	24.0	%	19.2	%
Adjusted effective tax rate (%)				4.4	%	40.9	%		(210.1)	%		20.7	%	20.2	%	20.6	%	23.6	%	21.1	%

Page 16

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