PHILLIPS 66 PARTNERS LP - FORM 8-K - EX-99.2 - October 30, 2020

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EX-99.1 - EX-99.1 - PHILLIPS 66 PARTNERS LPmlp-2020930erxex991.htm
8-K - 8-K - PHILLIPS 66 PARTNERS LPmlp-20201030.htm

Exhibit 99.2
Phillips 66 Partners LP Earnings Release Supplemental Data
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STATEMENT OF INCOME
CONSOLIDATED
Millions of Dollars, Except as Indicated
20202019
1st Qtr2nd Qtr3rd Qtr4th QtrYTD1st Qtr2nd Qtr3rd Qtr4th QtrYTD
Revenues and Other Income
Operating revenues—related parties
258 236 256 750 296 256 262 283 1,097 
Operating revenues—third parties
9 5 9 23 6 7 8 8 29 
Equity in earnings of affiliates
136 104 129 369 119 137 139 140 535 
Gain from equity interest transfer— 84 — 84 — — — — — 
Other income
1 1 — 2 2 1 2 1 6 
Total revenues and other income
404 430 394 1,228 423 401 411 432 1,667 
Costs and Expenses
Operating and maintenance expenses88 84 85 257 139 85 91 90 405 
Depreciation30 31 35 96 29 29 30 32 120 
General and administrative expenses17 17 16 50 18 17 16 16 67 
Taxes other than income taxes11 10 9 30 11 9 10 9 39 
Interest and debt expense29 28 32 89 27 27 26 28 108 
Other expenses2 5 — 7 — — — 2 2 
Total costs and expenses177 175 177 529 224 167 173 177 741 
Income before income taxes227 255 217 699 199 234 238 255 926 
Income tax expense1 — 1 2 1 1 1 — 3 
Net Income226 255 216 697 198 233 237 255 923 
Less: Net income attributable to noncontrolling interest— — 10 10 — — — — — 
Net Income Attributable to the Partnership
226 255 206 687 198 233 237 255 923 
Less: Preferred unitholders’ interest in net income attributable to the Partnership10 9 10 29 10 9 9 9 37 
Less: General partner’s interest in net income attributable to the Partnership— — — — 69 71 — — 140 
Limited Partners’ Interest in Net Income Attributable to the Partnership216 246 196 658 119 153 228 246 746 
Adjusted EBITDA*
321 269 313 903 281 319 323 345 1,268 
Distributable Cash Flow*
269 218 243 730 226 254 255 254 989 
Net Income attributable to the Partnership Per Limited Partner Unit (dollars)
Common units—basic0.95 1.07 0.86 2.88 0.96 1.23 1.18 1.08 4.45 
Common units—diluted0.93 1.05 0.85 2.84 0.92 1.15 1.15 1.06 4.29 
Weighted-Average Limited Partner Units Outstanding (thousands)
Common units—basic228,312 228,340 228,340 228,331 124,258 124,824 192,274 227,857 167,655 
Common units—diluted242,132 242,160 242,160 242,151 138,078 138,644 206,093 241,676 181,475 
* See note on the use of non-GAAP measures.

Page 1

Exhibit 99.2

Phillips 66 Partners LP Earnings Release Supplemental Data

SELECTED OPERATING DATA
CONSOLIDATED
20202019
1st Qtr2nd Qtr3rd Qtr4th QtrYTD1st Qtr2nd Qtr3rd Qtr4th QtrYTD
Wholly Owned Operating Data
Pipelines
Pipeline revenues (millions of dollars)
111 97 117 325 109 117 121 126 473 
Pipeline volumes(1) (thousands of barrels daily)
Crude oil941 806 867 871 959 1,000 998 1,005 991 
Refined petroleum products and NGL866 825 907 866 768 995 990 1,033 947 
Total
1,807 1,631 1,774 1,737 1,727 1,995 1,988 2,038 1,938 
Average pipeline revenue per barrel (dollars)
0.67 0.65 0.71 0.68 0.70 0.64 0.66 0.67 0.67 
Terminals
Terminal revenues (millions of dollars)
43 33 36 112 40 39 41 47 167 
Terminal throughput (thousands of barrels daily)
Crude oil(2)
460 380 296 378 471 456 493 459 470 
Refined petroleum products748 690 700 713 736 809 819 852 804 
Total
1,208 1,070 996 1,091 1,207 1,265 1,312 1,311 1,274 
Average terminaling revenue per barrel (dollars)
0.39 0.33 0.39 0.37 0.36 0.33 0.33 0.38 0.35 
Storage, processing and other revenues (millions of dollars)
113 111 112 336 153 107 108 118 486 
Total Operating Revenues (millions of dollars)
267 241 265 773 302 263 270 291 1,126 
Joint Venture Operating Data(3)
Crude oil, refined petroleum products and NGL (thousands of barrels daily)
838 942 1,142 975 687 772 786 793 760 
(1) Represents the sum of volumes transported through each separately tariffed pipeline segment.
(2) Bayway and Ferndale rail rack volumes included in crude oil terminals.
(3) Proportional share of total pipeline and terminal volumes of joint ventures consistent with recognized equity in earnings of affiliates.

Page 2

Exhibit 99.2

Phillips 66 Partners LP Earnings Release Supplemental Data

CAPITAL EXPENDITURES AND INVESTMENTS
Millions of Dollars
20202019
1st Qtr2nd Qtr3rd Qtr4th QtrYTD1st Qtr2nd Qtr3rd Qtr4th QtrYTD
Capital Expenditures and Investments
Expansion196 311160 667 195 102 136 146 579 
Maintenance15 2821 64 15 12 25 28 80 
Adjusted Capital Spending*211 339181 731 210 114 161 174 659 
Capital expenditures and investments funded by certain joint venture partners23 383 64 422 — — 1 423 
Capital Expenditures and Investments234 377184 795 632 114 161 175 1,082 
* See note on the use of non-GAAP measures.




CASH DISTRIBUTIONS
20202019
1st Qtr2nd Qtr3rd Qtr4th QtrYTD1st Qtr2nd Qtr3rd Qtr4th QtrYTD
Cash Distribution Per Common Unit (Dollars)
0.875 0.875 0.875 2.625 0.845 0.855 0.865 0.875 3.440 
Cash Distributions* ($ Millions)
Common units—public51 51 52 154 47 49 50 51 197 
Common units—Phillips 66148 149 148 445 58 58 147 149 412 
General partner—Phillips 66— — — — 69 70 — — 139 
Total199 200 200 599 174 177 197 200 748 
Coverage Ratio†**
1.35 1.09 1.22 1.22 1.30 1.44 1.29 1.27 1.32 
 * Cash distributions declared attributable to the indicated periods.
** See note on the use of non-GAAP measures.
 † Calculated as distributable cash flow divided by total cash distributions. Used to indicate the Partnership’s ability to pay cash distributions from
    current earnings.

Page 3

Exhibit 99.2

Phillips 66 Partners LP Earnings Release Supplemental Data

NON-GAAP FINANCIAL MEASURES RECONCILIATION
CONSOLIDATED
Millions of Dollars
20202019
1st Qtr2nd Qtr3rd Qtr4th QtrYTD1st Qtr2nd Qtr3rd Qtr4th QtrYTD
Reconciliation to Net Income Attributable to the Partnership
Net Income Attributable to the Partnership226 255 206 687 198 233 237 255 923 
Plus:
Net Income attributable to noncontrolling interest— — 10 10 — — — — — 
Net Income226 255 216 697 198 233 237 255 923 
Plus:
Depreciation30 31 35 96 29 29 30 32 120 
Net interest expense28 29 31 88 27 26 25 27 105 
Income tax expense1 — 1 2 1 1 1 — 3 
EBITDA**285 315 283 883 255 289 293 314 1,151 
Plus:
Proportional share of equity affiliates’ net interest, taxes and depreciation and amortization35 38 45 118 26 29 30 31 116 
Expenses indemnified or prefunded by Phillips 66— — 1 1 — 1 — — 1 
Transaction costs associated with acquisitions1 — — 1 — — — — — 
Less:
Gain from equity interest transfer— 84 — 84 — — — — — 
Adjusted EBITDA attributable to noncontrolling interest— — 16 16 — — — — — 
Adjusted EBITDA**321 269 313 903 281 319 323 345 1,268 
Plus:
Deferred revenue impacts*†
2 5 (3)4 — (4)— (2)(6)
Less:
Equity affiliate distributions less than (more than) proportional EBITDA
1 (10)4 (5)9 13 9 25 56 
Maintenance capital expenditures†
15 28 21 64 9 12 25 28 74 
Net interest expense28 29 31 88 27 26 25 27 105 
Preferred unit distributions10 9 10 29 10 9 9 9 37 
Income taxes paid— — 1 1 — 1 — — 1 
Distributable Cash Flow **269 218 243 730 226 254 255 254 989 
 * Difference between cash receipts and revenue recognition.
** See note on the use of non-GAAP measures.
 † Excludes Merey Sweeny capital reimbursements and turnaround impacts.
Page 4

Exhibit 99.2

Phillips 66 Partners LP Earnings Release Supplemental Data

NON-GAAP FINANCIAL MEASURES RECONCILIATION (continued)
CONSOLIDATED
Millions of Dollars
20202019
1st Qtr2nd Qtr3rd Qtr4th QtrYTD1st Qtr2nd Qtr3rd Qtr4th QtrYTD
 Reconciliation to Net Cash Provided by Operating Activities
Net Cash Provided by Operating Activities274 215 296 785 205 276 276 259 1,016 
Plus:
Net interest expense28 29 31 88 27 26 25 27 105 
Income tax expense1 — 1 2 1 1 1 — 3 
Changes in working capital(12)(3)(45)(60)34 (11)(9)20 34 
Undistributed equity earnings(4)(5)— (9)(2)(1)(4)10 3 
Gain from equity interest transfer— 84 — 84 — — — — — 
Deferred revenues and other liabilities— 2 1 3 (9)1 2 1 (5)
Other(2)(7)(1)(10)(1)(3)2 (3)(5)
EBITDA**285 315 283 883 255 289 293 314 1,151 
Plus:
Proportional share of equity affiliates’ net interest, taxes and depreciation and amortization
35 38 45 118 26 29 30 31 116 
Expenses indemnified or prefunded by Phillips 66— — 1 1 — 1 — — 1 
Transaction costs associated with acquisitions1 — — 1 — — — — — 
Less:
Gain from equity interest transfer— 84 — 84 — — — — — 
Adjusted EBITDA attributable to noncontrolling interest— — 16 16 — — — — — 
Adjusted EBITDA**321 269 313 903 281 319 323 345 1,268 
Plus:
Deferred revenue impacts*†
2 5 (3)4 — (4)— (2)(6)
Less:
Equity affiliate distributions less than (more than) proportional EBITDA
1 (10)4 (5)9 13 9 25 56 
Maintenance capital expenditures†
15 28 21 64 9 12 25 28 74 
Net interest expense28 29 31 88 27 26 25 27 105 
Preferred unit distributions10 9 10 29 10 9 9 9 37 
Income taxes paid— — 1 1 — 1 — — 1 
Distributable Cash Flow**269 218 243 730 226 254 255 254 989 
 * Difference between cash receipts and revenue recognition.
** See note on the use of non-GAAP measures.
 † Excludes Merey Sweeny capital reimbursements and turnaround impacts.

Page 5

Exhibit 99.2
Use of Non-GAAP Financial Information—This earnings release supplemental data includes the terms “EBITDA,” “adjusted EBITDA,” “distributable cash flow,” “coverage ratio,” and “adjusted capital spending.” These are non-GAAP financial measures. EBITDA and adjusted EBITDA are included to help facilitate comparisons of operating performance of the Partnership with other companies in our industry. EBITDA and distributable cash flow help facilitate an assessment of our ability to generate sufficient cash flow to make distributions to our partners. We believe that the presentation of EBITDA, adjusted EBITDA and distributable cash flow provides useful information to investors in assessing our financial condition and results of operations. Our coverage ratio is calculated as distributable cash flow divided by total cash distributions and is included to help indicate the Partnership’s ability to pay cash distributions from current earnings. Additionally, adjusted capital spending is a non-GAAP financial measure that demonstrates Phillips 66 Partners' net share of capital spending. The GAAP performance measure most directly comparable to EBITDA and adjusted EBITDA is net income. The GAAP liquidity measure most comparable to EBITDA and distributable cash flow is net cash provided by operating activities. The GAAP financial measure most comparable to our coverage ratio is calculated as net cash provided by operating activities divided by total cash distributions. The GAAP financial measure most comparable to adjusted capital spending is capital expenditures and investments. These non-GAAP financial measures should not be considered as alternatives to their comparable GAAP measures. They have important limitations as analytical tools because they exclude some but not all items that affect their corresponding GAAP measures. They should not be considered in isolation or as substitutes for analysis of our results as reported under GAAP. Additionally, because EBITDA, adjusted EBITDA, distributable cash flow, coverage ratio and adjusted capital spending may be defined differently by other companies in our industry, our definition of those measures may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.
Reconciliations of these non-GAAP measures to their comparable GAAP measures are included in this earnings release supplemental data. Additionally, the disaggregation of adjusted capital spending between expansion and maintenance is not a distinction recognized under GAAP. We provide such disaggregation because our partnership agreement requires that we treat expansion and maintenance capital differently for certain surplus determinations. Further, we generally fund expansion capital spending with both operating and financing cash flows and fund maintenance capital spending with operating cash flows. We believe this is an important distinction in our liquidity profile.
Page 6

PHILLIPS 66 PARTNERS LP Reports