8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported): October 30, 2015

Phillips 66

(Exact name of registrant as specified in its charter)

Delaware	001-35349	45-3779385
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

3010 Briarpark Drive, Houston, Texas 77042

(Address of principal executive offices and zip code)

Registrant’s telephone number, including area code: (281) 293-6600

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On October 30, 2015, Phillips 66 issued a press release announcing the company's financial and operating results for the quarter ended September 30, 2015. A copy of the press release is furnished as Exhibit 99.1 hereto and incorporated herein by reference. Additional financial and operating information about the quarter is furnished as Exhibit 99.2 hereto and incorporated herein by reference.

The information in this report and the exhibits hereto shall not be treated as filed for purposes of the Securities Exchange Act of 1934, as amended.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

99.1	—	Press release issued by Phillips 66 on October 30, 2015.
99.2	—	Supplemental financial and operating information.

2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	PHILLIPS 66
By:	/s/ Chukwuemeka A. Oyolu
	Chukwuemeka A. Oyolu Vice President and Controller
October 30, 2015

3

EXHIBIT INDEX

Exhibit
No.	Description

99.1 Press release issued by Phillips 66 on October 30, 2015.

99.2 Supplemental financial and operating information.

4

EX-99.1

Phillips 66 Reports Third-Quarter Earnings of $1.6 Billion (Adjusted Earnings of $1.6 Billion)

Exhibit 99.1

Phillips 66 Reports Third-Quarter Earnings of $1.6 Billion

or $2.90 Per Share

Adjusted earnings of $1.6 billion or $3.02 per share

Highlights

• Refining generated more than $1 billion of earnings; 96 percent utilization

• Delivered strong Marketing and Specialties earnings

• Agreed to recapitalize DCP Midstream

• Approved 2016 capital budgets of $3.9 billion, including Phillips 66 Partners

• Increased share repurchase program by $2 billion

HOUSTON, Oct. 30, 2015 — Phillips 66 (NYSE: PSX), an energy manufacturing and logistics company, announces third-quarter earnings of $1,578 million, compared with earnings of $1,012 million in the second quarter of 2015. Adjusted earnings were $1,647 million, an increase of $645 million from the last quarter.

“Our best quarterly earnings this year were driven by stronger results from Refining and Marketing. Higher refining capacity utilization and product margins increased financial results for these businesses,” said Greg Garland, Chairman and CEO. “In addition, we announced our 2016 capital budget and a $2 billion increase to the company’s share repurchase program, which reflects our commitment to disciplined capital allocation.”

Page 1

Phillips 66 Reports Third-Quarter Earnings of $1.6 Billion (Adjusted Earnings of $1.6 Billion)

Midstream

	Millions of Dollars
	2015
	Earnings					Adjusted Earnings
	Q3			Q2		Q3		Q2
Transportation	$	77		65		77		65
NGL	26			8		32		8
DCP Midstream	(2		)	(151	)	(18	)	(25	)
Midstream	$	101		(78	)	91		48

Phillips 66's Midstream third-quarter adjusted earnings were $91 million, an increase of $43 million from the second quarter.

Phillips 66’s Transportation business generated earnings of $77 million during the third quarter, an increase of $12 million from the second quarter. Improved earnings were due to lower operating costs and increased equity earnings primarily driven by higher volumes.

Adjusted earnings from the NGL business were $32 million for the third quarter. The $24 million increase from the prior quarter was largely related to higher realized margins, as well as inventory gains.

Phillips 66 Partners (PSXP) contributed $31 million to the Midstream segment's third-quarter earnings. Distributions per limited partner unit increased by 7 percent from the second quarter to $0.428 per unit. Distributions to Phillips 66 from PSXP were up 13 percent in the third quarter, compared with the prior quarter, reflecting the impact of incentive distribution rights.

For the third quarter of 2015, the company’s equity investment in DCP Midstream, LLC (DCP Midstream) had an adjusted loss of $18 million, compared with a $25 million adjusted loss in the prior quarter. DCP Midstream's improved results were primarily due to higher natural gas and natural gas liquids marketing margins, as well as the second-quarter loss on the sale of its interest in the Benedum gas processing plant, partially offset by lower commodity prices.

Chemicals

	Millions of Dollars
	2015
	Earnings					Adjusted Earnings
	Q3			Q2		Q3		Q2
Olefins and Polyolefins (O&P)	$	261		267		261		267
Specialties, Aromatics and Styrenics (SA&S)	(3		)	38		17		38
Other	(6		)	(10	)	(6	)	(10	)
Chemicals	$	252		295		272		295

The Chemicals segment reflects Phillips 66's equity investment in Chevron Phillips Chemical Company LLC (CPChem). Third-quarter Chemicals adjusted earnings were $272 million, compared with earnings of $295 million in the second quarter.

Page 2

Phillips 66 Reports Third-Quarter Earnings of $1.6 Billion (Adjusted Earnings of $1.6 Billion)

During the third quarter, CPChem's Olefins and Polyolefins business contributed $261 million to Phillips 66's Chemicals earnings. This was a decrease of $6 million compared with the prior quarter, as higher sales volumes and lower operating costs primarily due to lower turnaround activity were more than offset by insurance recoveries recognized in the prior quarter and lower ethylene margins. Global utilization for O&P was 94 percent, up from 91 percent in the second quarter.

CPChem's Specialties, Aromatics and Styrenics business contributed $17 million of adjusted earnings in the third quarter, a decrease of $21 million from the prior quarter. The decrease was primarily due to lower earnings at CPChem's SA&S equity affiliates, as well as lower volumes.

Refining

	Millions of Dollars
	2015
	Earnings			Adjusted Earnings
	Q3		Q2	Q3	Q2
Refining	$	1,003	604	1,052	604

Refining adjusted earnings were $1,052 million in the third quarter, compared with $604 million in the second quarter.

The increase in earnings was largely driven by improved realized gasoline and secondary product margins, as well as higher volumes. Global realized margins improved $2.26 per barrel, while market capture increased to 72 percent, compared with 62 percent in the prior quarter.

Phillips 66’s worldwide refining crude utilization increased to 96 percent, compared to 90 percent in the second quarter. The improvement was primarily due to the completion of a major turnaround at the Humber Refinery in the U.K. early in the third quarter, as well as higher utilization in the Gulf Coast. Turnaround costs for the third quarter were $69 million. Phillips 66's worldwide clean product yield was 84 percent in the third quarter.

Marketing and Specialties

	Millions of Dollars
	2015
	Earnings			Adjusted Earnings
	Q3		Q2	Q3	Q2
Marketing and Other	$	285	266	291	134
Specialties	53		48	53	48
Marketing and Specialties	$	338	314	344	182

Marketing and Specialties (M&S) third-quarter adjusted earnings were $344 million, compared with $182 million in the second quarter.

Adjusted earnings for Marketing and Other were $291 million, an increase of $157 million from the prior quarter. The increase in earnings was largely due to improved realized global margins driven by favorable market conditions, as well as continued high volumes. Refined product exports in the third quarter were 118,000 barrels per day (BPD), compared with 143,000 BPD in the prior quarter. The decrease in exports was primarily due to advantaged domestic markets.

Page 3

Phillips 66 Reports Third-Quarter Earnings of $1.6 Billion (Adjusted Earnings of $1.6 Billion)

Phillips 66’s Specialties businesses generated earnings of $53 million during the third quarter. The $5 million increase from the prior quarter was mainly due to improved lubricants margins.

Corporate and Other

	Millions of Dollars
	2015
	Earnings					Adjusted Earnings
	Q3			Q2		Q3		Q2
Corporate and Other	$	(116	)	(123	)	(112	)	(127	)

Corporate and Other adjusted costs were $112 million after-tax in the third quarter, an improvement of $15 million compared to the prior quarter.

Financial Position, Liquidity and Return of Capital

During the third quarter, Phillips 66 generated $1.4 billion of cash from operations. Operating cash flow excluding working capital changes was $1.5 billion. Capital expenditures and investments totaled $1.0 billion, primarily supporting execution of the company's Midstream growth strategy.

Phillips 66 returned $673 million to shareholders during the quarter, consisting of $300 million in dividends and the repurchase of 4.7 million shares of common stock for $373 million. Since July 2012, the company has repurchased 88 million shares for $6 billion and increased its quarterly dividend by 180 percent to $0.56 per share. Phillips 66 ended the quarter with 533 million shares outstanding. Phillips 66 recently announced a $2 billion increase to its share repurchase program, resulting in approximately $3 billion of remaining capacity under its current authorization.

	Q3 2015
	Adjusted Phillips 66		Phillips 66 Partners	Phillips 66 Consolidated
Total Debt, $MM	7,851		1,100	8,951
Total Equity, $MM	23,227		805	24,032
Debt-to-capital ratio	25	%		27	%
Total Cash, $MM	4,749		73	4,822
Net-debt-to-capital ratio	12	%		15	%

As of Sept. 30, 2015, cash and cash equivalents were $4.8 billion and debt was $9.0 billion, including $1.1 billion in Phillips 66 Partners. The company's consolidated debt-to-capital ratio was 27 percent. Excluding Phillips 66 Partners, the debt-to-capital ratio was 25 percent. Additionally, Phillips 66 reported a year-to-date annualized return on capital employed (ROCE) of 16 percent and a year-to-date annualized adjusted ROCE of 15 percent.

Page 4

Phillips 66 Reports Third-Quarter Earnings of $1.6 Billion (Adjusted Earnings of $1.6 Billion)

Strategic Update

Phillips 66 continues to execute its strategy to grow its higher-valued Midstream and Chemicals businesses and enhance Refining returns, while returning capital to shareholders in the form of dividends and share repurchases.

	Millions of Dollars
	2015		2016
Phillips 66 Consolidated Capital Budget
Midstream (1)	$	2,956	2,032
Phillips 66 Partners (2)	207		314
Chemicals	—		—
Refining	1,112		1,217
Marketing and Specialties	170		137
Corporate and Other	155		180
	$	4,600	3,880
(1) Excludes Phillips 66 Partners.
(2) Includes 100% of Phillips 66 Partners.

Phillips 66's 2015 capital budget is primarily focused on major Midstream growth projects. Through the end of the third quarter, total capital expenditures for 2015 were $3.3 billion.

Approximately two-thirds of the 2016 capital budget is allocated to growth capital, mostly related to Midstream projects, as well as Refining projects to improve product yields and lower feedstock costs. The remainder is sustaining capital, primarily to be invested in Refining reliability, safety and environmental projects. The 2016 capital spending for joint ventures DCP Midstream, CPChem, and WRB Refining is expected to be self-funded.

Phillips 66 has executed an agreement with Spectra Energy Corp and DCP Midstream under which Phillips 66 will contribute $1.5 billion in cash and Spectra Energy will contribute its one-third ownership interests in the Sand Hills and Southern Hills pipelines to DCP Midstream. These equity contributions will provide DCP Midstream with a stronger balance sheet and increased financial flexibility, while positioning it to grow through future commodity cycles. The transaction is expected to close later today.

Development of the $3 billion Sweeny Hub is ongoing with the startup of the 100,000 BPD Sweeny Fractionator One expected by year end. Additionally, the 150,000 BPD Freeport LPG Export Terminal startup is expected in the second half of 2016.

The company is participating in joint ventures to develop the approximately 470,000 BPD Dakota Access Pipeline (DAPL) and Energy Transfer Crude Oil Pipeline (ETCOP) system. Phillips 66 has a 25 percent interest in these joint ventures with Energy Transfer Partners and Sunoco Logistics Partners. Commercial operations are expected to begin in the fourth quarter of 2016.

Page 5

Phillips 66 Reports Third-Quarter Earnings of $1.6 Billion (Adjusted Earnings of $1.6 Billion)

Bayou Bridge Pipeline, LLC is a joint venture developing a pipeline from the Phillips 66 and Sunoco Logistics terminals in Nederland, Texas, to St. James, Louisiana. Construction is underway on the first segment of the pipeline, which will deliver crude oil from Nederland, Texas, to Lake Charles, Louisiana. Commercial operations for this segment are expected to begin in the first quarter of 2016. The joint venture has commenced an expansion open season for service from Lake Charles to St. James to determine the pipeline diameter of this segment, which is scheduled to commence service in the second half of 2017. Phillips 66 Partners has agreed to acquire Phillips 66's 40 percent interest in Bayou Bridge in the fourth quarter of 2015.

In Chemicals, overall progress on CPChem's world-scale U.S. Gulf Coast Petrochemicals Project is approximately 60 percent complete, with startup expected in mid-2017. This $6 billion project consists of an ethane cracker and related polyethylene facilities that will increase CPChem's U.S. olefins and polyolefins capacity by approximately one-third.

Page 6

Phillips 66 Reports Third-Quarter Earnings of $1.6 Billion (Adjusted Earnings of $1.6 Billion)

Later today, members of Phillips 66 executive management will host a webcast at noon EDT to discuss the company’s third-quarter performance and provide an update on strategic initiatives. To access the webcast and view related presentation materials, go to www.phillips66.com/investors and click on "Events & Presentations." For detailed supplemental information, go to www.phillips66.com/supplemental.

Earnings
	Millions of Dollars
	2015					2014
	Q3			YTD		Q3		YTD
Midstream	$	101		90		115		411
Chemicals	252			750		230		870
Refining	1,003			2,145		558		1,254
Marketing and Specialties	338			956		368		667
Corporate and Other	(116		)	(364	)	(91	)	(293	)
Discontinued Operations	—			—		—		706
Phillips 66	$	1,578		3,577		1,180		3,615
Adjusted Earnings
	Millions of Dollars
	2015					2014
	Q3			YTD		Q3		YTD
Midstream	$	91		206		115		411
Chemicals	272			770		299		939
Refining	1,052			2,151		558		1,254
Marketing and Specialties	344			720		259		558
Corporate and Other	(112		)	(364	)	(91	)	(293	)
Phillips 66	$	1,647		3,483		1,140		2,869

Page 7

Phillips 66 Reports Third-Quarter Earnings of $1.6 Billion (Adjusted Earnings of $1.6 Billion)

About Phillips 66

Phillips 66 is a diversified energy manufacturing and logistics company. With a portfolio of Midstream, Chemicals, Refining, and Marketing and Specialties businesses, the company processes, transports, stores and markets fuels and products globally. Phillips 66 Partners, the company's master limited partnership, is an integral asset in the portfolio. Headquartered in Houston, the company has 14,000 employees committed to safety and operating excellence. Phillips 66 had $49 billion of assets as of Sept. 30, 2015. For more information, visit www.phillips66.com or follow us on Twitter @Phillips66Co.

- # # # -

CONTACTS

C.W. Mallon (investors)

832-765-2297

c.w.mallon@p66.com

Dennis Nuss (media)

832-765-1850

dennis.h.nuss@p66.com

CAUTIONARY STATEMENT FOR THE PURPOSES OF THE "SAFE HARBOR" PROVISIONS

OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This news release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Words and phrases such as “is anticipated,” “is estimated,” “is expected,” “is planned,” “is scheduled,” “is targeted,” “believes,” “intends,” “objectives,” “projects,” “strategies” and similar expressions are used to identify such forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements relating to Phillips 66’s operations (including joint venture operations) are based on management’s expectations, estimates and projections about the company, its interests and the energy industry in general on the date this news release was prepared. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Factors that could cause actual results or events to differ materially from those described in the forward-looking statements include fluctuations in NGL, crude oil, and natural gas prices, and petrochemical and refining margins; unexpected changes in costs for constructing, modifying or operating our facilities; unexpected difficulties in manufacturing, refining or transporting our products; lack of, or disruptions in, adequate and reliable transportation for our NGL, crude oil, natural gas, and refined products; potential liability from litigation or for remedial actions, including removal and reclamation obligations under environmental regulations; limited access to capital or significantly higher cost of capital related to illiquidity or uncertainty in the domestic or international financial markets; and other economic, business, competitive and/or regulatory factors affecting Phillips 66’s businesses generally as set forth in our filings with the Securities and Exchange Commission. Phillips 66 is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

Use of Non-GAAP Financial Information -- This news release includes the terms adjusted earnings, adjusted earnings per share, operating cash flow excluding working capital, adjusted debt-to-capital, and adjusted ROCE. These are non-GAAP financial measures that are included to help facilitate comparisons of company operating performance across periods.

References in the release to earnings refer to net income attributable to Phillips 66.

Page 8

Phillips 66 Reports Third-Quarter Earnings of $1.6 Billion (Adjusted Earnings of $1.6 Billion)

	Millions of Dollars
	Except as Indicated
	2015							2014
	Q3			Q2		Sep YTD		Q3		Sep YTD
Reconciliation of Earnings to Adjusted Earnings
Consolidated
Earnings	$	1,578		1,012		3,577		1,180		3,615
Adjustments:
Asset dispositions	(18		)	(132	)	(265	)	(109	)	(109	)
Impairments by equity affiliates	22			126		148		69		69
Pending claims and settlements	19			(4	)	(23	)	—		—
Pension settlement expenses	46			—		46		—		—
Discontinued operations	—			—		—		—		(706	)
Adjusted earnings	$	1,647		1,002		3,483		1,140		2,869
Earnings per share of common stock (dollars)	$	2.90		1.84		6.52		2.09		6.28
Adjusted earnings per share of common stock (dollars)	$	3.02		1.83		6.34		2.02		4.98
Midstream
Earnings (loss)	$	101		(78	)	90		115		411
Adjustments:
Asset dispositions	(18		)	—		(18	)	—		—
Impairments by equity affiliates	2			126		128		—		—
Pension settlement expenses	6			—		6		—		—
Adjusted earnings	$	91		48		206		115		411
Chemicals
Earnings	$	252		295		750		230		870
Adjustments:
Impairments by equity affiliates	20			—		20		69		69
Adjusted earnings	$	272		295		770		299		939
Refining
Earnings	$	1,003		604		2,145		558		1,254
Adjustments:
Asset dispositions	—			—		(5	)	—		—
Pending claims and settlements	19			—		(19	)	—		—
Pension settlement expenses	30			—		30		—		—
Adjusted earnings	$	1,052		604		2,151		558		1,254
Marketing and Specialties
Earnings	$	338		314		956		368		667
Adjustments:
Asset dispositions	—			(132	)	(242	)	(109	)	(109	)
Pension settlement expenses	6			—		6		—		—
Adjusted earnings	$	344		182		720		259		558
Corporate and Other
Earnings (loss)	$	(116	)	(123	)	(364	)	(91	)	(293	)
Adjustments:
Pending claims and settlements	—			(4	)	(4	)	—		—
Pension settlement expenses	4			—		4		—		—
Adjusted earnings (loss)	$	(112	)	(127	)	(364	)	(91	)	(293	)

Page 9

Phillips 66 Reports Third-Quarter Earnings of $1.6 Billion (Adjusted Earnings of $1.6 Billion)

	Millions of Dollars
	Q3
	2015
Cash Flows from Operating Activities
Net Cash Provided by Operating Activities, excluding working capital	$	1,470
Changes in working capital	(33		)
Net Cash Provided by Operating Activities	$	1,437

	Millions of Dollars
	Q3 2015 YTD
Phillips 66 - ROCE
Numerator
Net income	$	3,614
After-tax interest expense	153
GAAP ROCE earnings	3,767
Special items	(94		)
Adjusted ROCE earnings	$	3,673
Denominator
GAAP average capital employed*	$	31,853
Annualized Adjusted ROCE (percent)	15		%
Annualized GAAP ROCE (percent)	16		%
*Total equity plus total debt.

	Millions of Dollars
	Sustaining Capital		Growth Capital	Capital Budget
Phillips 66 2016 Consolidated Capital Budget
Midstream (1)	$	227	2,119	2,346
Chemicals	—		—	—
Refining	833		384	1,217
Marketing and Specialties	57		80	137
Corporate and Other	180		—	180
	$	1,297	2,583	3,880
(1) Includes 100% of Phillips 66 Partners.

Page 10

EX-99.2

	Exhibit 99.2
Phillips 66 Earnings Release Supplemental Data

CONSOLIDATED INCOME STATEMENT
	Millions of Dollars
	2014										2015
	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*	40,283		45,549		40,417		34,963		161,212		22,778		28,512		25,792			77,082
Equity in earnings of affiliates	778		764		511		413		2,466		456		407		583			1,446
Net gain on dispositions	7		9		109		170		295		122		139		22			283
Other income (loss)	31		17		11		61		120		70		19		20			109
Total Revenues and Other Income	41,099		46,339		41,048		35,607		164,093		23,426		29,077		26,417			78,920
Costs and Expenses
Purchased crude oil and products	34,381		39,316		33,602		28,449		135,748		16,695		22,253		18,580			57,528
Operating expenses	1,090		1,077		1,104		1,164		4,435		1,094		1,043		1,083			3,220
Selling, general and administrative expenses	402		412		401		448		1,663		394		406		437			1,237
Depreciation and amortization	234		239		249		273		995		253		274		270			797
Impairments	1		3		12		134		150		—		2		1			3
Taxes other than income taxes*	3,638		3,832		3,874		3,696		15,040		3,462		3,549		3,610			10,621
Accretion on discounted liabilities	6		6		6		6		24		5		6		5			16
Interest and debt expense	68		66		60		73		267		86		79		71			236
Foreign currency transaction (gains) losses	(19	)	29		13		3		26		49		—		1			50
Total Costs and Expenses	39,801		44,980		39,321		34,246		158,348		22,038		27,612		24,058			73,708
Income from continuing operations before income taxes	1,298		1,359		1,727		1,361		5,745		1,388		1,465		2,359			5,212
Provision for income taxes	426		487		538		203		1,654		391		440		767			1,598
Income From Continuing Operations	872		872		1,189		1,158		4,091		997		1,025		1,592			3,614
Income from discontinued operations**	706		—		—		—		706		—		—		—			—
Net Income	1,578		872		1,189		1,158		4,797		997		1,025		1,592			3,614
Less: net income attributable to noncontrolling interests	6		9		9		11		35		10		13		14			37
Net Income Attributable to Phillips 66	1,572		863		1,180		1,147		4,762		987		1,012		1,578			3,577
* Includes excise taxes on petroleum products sales:	3,522		3,743		3,781		3,652		14,698		3,362		3,463		3,513			10,338
** Net of provision for income taxes on discontinued operations:	5		—		—		—		5		—		—		—			—
Amounts Attributable to Phillips 66 Common Stockholders:
Income from continuing operations	866		863		1,180		1,147		4,056		987		1,012		1,578			3,577
Income from discontinued operations	706		—		—		—		706		—		—		—			—
Net Income Attributable to Phillips 66	1,572		863		1,180		1,147		4,762		987		1,012		1,578			3,577
Net Income Attributable to Phillips 66
Per Share of Common Stock (dollars)
Basic
Continuing operations	1.48		1.52		2.11		2.07		7.15		1.80		1.85		2.92			6.56
Discontinued operations	1.21		—		—		—		1.25		—		—		—			—
Net Income Attributable to Phillips 66
Per Share of Common Stock	2.69		1.52		2.11		2.07		8.40		1.80		1.85		2.92			6.56
Diluted
Continuing operations	1.47		1.51		2.09		2.05		7.10		1.79		1.84		2.90			6.52
Discontinued operations	1.20		—		—		—		1.23		—		—		—			—
Net Income Attributable to Phillips 66
Per Share of Common Stock	2.67		1.51		2.09		2.05		8.33		1.79		1.84		2.90			6.52
Average Common Shares Outstanding (in thousands)
Basic	584,053		565,799		559,492		554,617		565,902		548,200		544,617		540,357			544,362
Diluted	589,575		571,285		564,958		559,023		571,504		552,337		548,926		544,696			549,034
SUMMARY OF INCOME (LOSS) ATTRIBUTABLE TO PHILLIPS 66 BY SEGMENT
	Millions of Dollars
	2014										2015
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD
Midstream	188		108		115		96		507		67		(78	)	101			90
Chemicals	316		324		230		267		1,137		203		295		252			750
Refining	306		390		558		517		1,771		538		604		1,003			2,145
Marketing and Specialties	137		162		368		367		1,034		304		314		338			956
Corporate and Other	(81	)	(121	)	(91	)	(100	)	(393	)	(125	)	(123	)	(116	)		(364	)
Discontinued Operations	706		—		—		—		706		—		—		—			—
Consolidated	1,572		863		1,180		1,147		4,762		987		1,012		1,578			3,577
SUMMARY OF INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES BY SEGMENT
	Millions of Dollars
	2014										2015
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD
Midstream	302		180		194		175		851		116		(99	)	173			190
Chemicals	442		466		328		396		1,632		291		416		360			1,067
Refining	508		647		859		453		2,467		764		932		1,488			3,184
Marketing and Specialties	205		248		495		527		1,475		406		410		514			1,330
Corporate and Other	(159	)	(182	)	(149	)	(190	)	(680	)	(189	)	(194	)	(176	)		(559	)
Consolidated	1,298		1,359		1,727		1,361		5,745		1,388		1,465		2,359			5,212
EFFECTIVE TAX RATES ON INCOME FROM CONTINUING OPERATIONS
	2014										2015
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD
Midstream	35.8	%	35.0	%	36.1	%	38.9	%	36.3	%	32.8	%	37.4	%	32.9	%		30.5	%
Chemicals	28.5	%	30.5	%	29.9	%	32.6	%	30.3	%	30.2	%	29.1	%	30.0	%		29.7	%
Refining	39.8	%	39.7	%	35.0	%	-14.1	%	28.2	%	29.6	%	35.2	%	32.6	%		32.6	%
Marketing and Specialties	33.2	%	34.7	%	25.7	%	30.4	%	29.9	%	25.1	%	23.4	%	34.2	%		28.1	%
Corporate and Other	49.1	%	33.5	%	38.9	%	47.4	%	42.2	%	33.3	%	35.1	%	33.5	%		34.0	%
Consolidated	32.8	%	35.8	%	31.2	%	14.9	%	28.8	%	28.2	%	30.0	%	32.5	%		30.7	%
SUMMARY OF ADJUSTED NET INCOME (LOSS) ATTRIBUTABLE TO PHILLIPS 66 BY SEGMENT
	Millions of Dollars
	2014										2015
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD
Midstream	188		108		115		97		508		67		48		91			206
Chemicals	316		324		299		270		1,209		203		295		272			770
Refining	306		390		558		322		1,576		495		604		1,052			2,151
Marketing and Specialties	137		162		259		324		882		194		182		344			720
Corporate and Other	(81	)	(121	)	(91	)	(100	)	(393	)	(125	)	(127	)	(112	)		(364	)
Consolidated	866		863		1,140		913		3,782		834		1,002		1,647			3,483

Page 1

SPECIAL ITEMS INCLUDED IN NET INCOME ATTRIBUTABLE TO PHILLIPS 66
(AFTER-TAX)
	Millions of Dollars
	2014								2015
	1st Qtr	2nd Qtr	3rd Qtr		4th Qtr		YTD		1st Qtr	2nd Qtr		3rd Qtr		4th Qtr	YTD
Midstream
Asset dispositions	—	—	—		—		—		—	—		18			18
Impairments by equity affiliates	—	—	—		—		—		—	(126	)	(2	)		(128	)
Pension settlement expenses	—	—	—		—		—		—	—		(6	)		(6	)
Lower-of-cost-or-market inventory adjustments	—	—	—		(1	)	(1	)	—	—		—			—
Total Midstream	—	—	—		(1	)	(1	)	—	(126	)	10			(116	)
Chemicals
Impairments by equity affiliates	—	—	(69	)	—		(69	)	—	—		(20	)		(20	)
Lower-of-cost-or-market inventory adjustments	—	—	—		(3	)	(3	)	—	—		—			—
Total Chemicals	—	—	(69	)	(3	)	(72	)	—	—		(20	)		(20	)
Refining
Asset dispositions	—	—	—		369		369		5	—		—			5
Impairments	—	—	—		(131	)	(131	)	—	—		—			—
Pending claims and settlements	—	—	—		(17	)	(17	)	38	—		(19	)		19
Lower-of-cost-or-market inventory adjustments	—	—	—		(26	)	(26	)	—	—		—			—
Pension settlement expenses	—	—	—		—		—		—	—		(30	)		(30	)
Total Refining	—	—	—		195		195		43	—		(49	)		(6	)
Marketing and Specialties
Asset dispositions	—	—	109		16		125		110	132		—			242
Pending claims and settlements	—	—	—		27		27		—	—		—			—
Pension settlement expenses	—	—	—		—		—		—	—		(6	)		(6	)
Total Marketing and Specialties	—	—	109		43		152		110	132		(6	)		236
Corporate and Other
Pending claims and settlements	—	—	—		—		—		—	4		—			4
Pension settlement expenses	—	—	—		—		—		—	—		(4	)		(4	)
Total Corporate and Other	—	—	—		—		—		—	4		(4	)		—
Discontinued Operations	706	—	—		—		706		—	—		—			—
Total Phillips 66	706	—	40		234		980		153	10		(69	)		94
By Business Lines/Regions
Midstream
Transportation	—	—	—		—		—		—	—		—			—
DCP Midstream	—	—	—		(1	)	(1	)	—	(126	)	16			(110	)
NGL	—	—	—		—		—		—	—		(6	)		(6	)
Total Midstream	—	—	—		(1	)	(1	)	—	(126	)	10			(116	)
Refining
Atlantic Basin/Europe	—	—	—		(132	)	(132	)	38	—		(13	)		25
Gulf Coast	—	—	—		(3	)	(3	)	—	—		(16	)		(16	)
Central Corridor	—	—	—		(17	)	(17	)	—	—		(12	)		(12	)
Western/Pacific	—	—	—		347		347		5	—		(8	)		(3	)
Total Refining	—	—	—		195		195		43	—		(49	)		(6	)
Marketing and Specialties
Marketing and Other	—	—	109		43		152		110	132		(6	)		236
Specialties	—	—	—		—		—		—	—		—			—
Total Marketing and Specialties	—	—	109		43		152		110	132		(6	)		236
SPECIAL ITEMS INCLUDED IN INCOME FROM CONTINUING OPERATIONS
(PRETAX)
	Millions of Dollars
	2014								2015
	1st Qtr	2nd Qtr	3rd Qtr		4th Qtr		YTD		1st Qtr	2nd Qtr		3rd Qtr		4th Qtr	YTD
Midstream
Transportation	—	—	—		—		—		—	—		—			—
DCP Midstream	—	—	—		(2	)	(2	)	—	(194	)	26			(168	)
NGL	—	—	—		—		—		—	—		(9	)		(9	)
Total Midstream	—	—	—		(2	)	(2	)	—	(194	)	17			(177	)
Chemicals	—	—	(88	)	(3	)	(91	)	—	—		(20	)		(20	)
Refining
Atlantic Basin/Europe	—	—	—		(133	)	(133	)	—	—		(21	)		(21	)
Gulf Coast	—	—	—		(5	)	(5	)	—	—		(26	)		(26	)
Central Corridor	—	—	—		(29	)	(29	)	—	—		(18	)		(18	)
Western/Pacific	—	—	—		118		118		8	—		(14	)		(6	)
Total Refining	—	—	—		(49	)	(49	)	8	—		(79	)		(71	)
Marketing and Specialties
Marketing and Other	—	—	109		60		169		110	132		(10	)		232
Specialties	—	—	—		—		—		—	—		—			—
Total Marketing and Specialties	—	—	109		60		169		110	132		(10	)		232
Corporate and Other	—	—	—		—		—		—	5		(7	)		(2	)
Discontinued Operations	711	—	—		—		711		—	—		—			—
Total Phillips 66	711	—	21		6		738		118	(57	)	(99	)		(38	)

Page 2

CASH FLOW INFORMATION
	Millions of Dollars
	2014										2015
	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	1,578		872		1,189		1,158		4,797		997		1,025		1,592			3,614
Depreciation and amortization	234		239		249		273		995		253		274		270			797
Impairments	1		3		12		134		150		—		2		1			3
Accretion on discounted liabilities	6		6		6		6		24		5		6		5			16
Deferred taxes	(444	)	(11	)	(72	)	39		(488	)	(6	)	(75	)	(44	)		(125	)
Undistributed equity earnings	632		(253	)	(19	)	(163	)	197		(337	)	662		(308	)		17
Net gain on dispositions	(7	)	(9	)	(109	)	(170	)	(295	)	(122	)	(139	)	(22	)		(283	)
Income from discontinued operations	(706	)	—		—		—		(706	)	—		—		—			—
Other	(21	)	90		1		(197	)	(127	)	90		4		(24	)		70
Net working capital changes	123		(107	)	(828	)	(208	)	(1,020	)	472		(332	)	(33	)		107
Net cash provided by continuing operating activities	1,396		830		429		872		3,527		1,352		1,427		1,437			4,216
Net cash provided by discontinued operations	2		—		—		—		2		—		—		—			—
Net Cash Provided by Operating Activities	1,398		830		429		872		3,529		1,352		1,427		1,437			4,216
Cash Flows From Investing Activities
Capital expenditures and investments	(572	)	(561	)	(1,514	)	(1,126	)	(3,773	)	(1,081	)	(1,213	)	(992	)		(3,286	)
Proceeds from asset dispositions*	507		150		6		581		1,244		(9	)	4		73			68
Advances/loans—related parties	—		(3	)	—		—		(3	)	(50	)	—		—			(50	)
Collection of advances/loans—related parties	—		—		—		—		—		—		50		—			50
Other	13		21		127		77		238		102		(55	)	(45	)		2
Net cash used in continuing investing activities	(52	)	(393	)	(1,381	)	(468	)	(2,294	)	(1,038	)	(1,214	)	(964	)		(3,216	)
Net cash provided by (used in) discontinued operations	(34	)	32		—		—		(2	)	—		—		—			—
Net Cash Used in Investing Activities	(86	)	(361	)	(1,381	)	(468	)	(2,296	)	(1,038	)	(1,214	)	(964	)		(3,216	)
Cash Flows From Financing Activities
Issuance of debt	—		—		—		2,487		2,487		1,169		—		—			1,169
Repayment of debt	(8	)	(9	)	(13	)	(19	)	(49	)	(895	)	(9	)	(14	)		(918	)
Issuance of common stock	(20	)	8		13		—		1		(25	)	—		(2	)		(27	)
Repurchase of common stock	(640	)	(616	)	(494	)	(532	)	(2,282	)	(399	)	(334	)	(373	)		(1,106	)
Share exchange—PSPI transaction	(450	)	—		—		—		(450	)	—		—		—			—
Dividends paid on common stock	(229	)	(281	)	(277	)	(275	)	(1,062	)	(272	)	(302	)	(300	)		(874	)
Distributions to noncontrolling interests	(4	)	(9	)	(5	)	(12	)	(30	)	(6	)	(14	)	(10	)		(30	)
Net proceeds from issuance of Phillips 66 Partners LP common units	—		—		—		—		—		384		—		—			384
Other	(4	)	29		(2	)	—		23		(14	)	16		—			2
Net cash provided by (used in) continuing financing activities	(1,355	)	(878	)	(778	)	1,649		(1,362	)	(58	)	(643	)	(699	)		(1,400	)
Net cash provided by (used in) discontinued operations	—		—		—		—		—		—		—		—			—
Net Cash Provided by (Used in) Financing Activities	(1,355	)	(878	)	(778	)	1,649		(1,362	)	(58	)	(643	)	(699	)		(1,400	)
Effect of Exchange Rate Changes on Cash and Cash Equivalents	(31	)	39		(118	)	46		(64	)	(73	)	129		(41	)		15
Net Change in Cash and Cash Equivalents	(74	)	(370	)	(1,848	)	2,099		(193	)	183		(301	)	(267	)		(385	)
Cash and cash equivalents at beginning of period	5,400		5,326		4,956		3,108		5,400		5,207		5,390		5,089			5,207
Cash and Cash Equivalents at End of Period	5,326		4,956		3,108		5,207		5,207		5,390		5,089		4,822			4,822
* Includes return of investments in equity affiliates.
CAPITAL PROGRAM
	Millions of Dollars
	2014										2015
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD
Consolidated Capital Expenditures and Investments
Midstream	288		298		946		641		2,173		769		899		700			2,368
Chemicals	—		—		—		—		—		—		—		—			—
Refining	186		215		278		359		1,038		274		268		233			775
Marketing and Specialties	84		26		248		81		439		24		30		32			86
Corporate and Other	14		22		42		45		123		14		16		27			57
Total Consolidated from Continuing Operations	572		561		1,514		1,126		3,773		1,081		1,213		992			3,286
Proportional Share of Select Equity Affiliates   Capital Expenditures and Investments*
DCP Midstream (Midstream)	178		176		207		215		776		157		149		71			377
CPChem (Chemicals)**	154		220		242		270		886		249		259		331			839
WRB Refining (Refining)	23		38		35		44		140		35		36		47			118
Select Equity Affiliates	355		434		484		529		1,802		441		444		449			1,334
**Prior period amounts have been restated.
Total Capital Program*
Midstream	466		474		1,153		856		2,949		926		1,048		771			2,745
Chemicals	154		220		242		270		886		249		259		331			839
Refining	209		253		313		403		1,178		309		304		280			893
Marketing and Specialties	84		26		248		81		439		24		30		32			86
Corporate and Other	14		22		42		45		123		14		16		27			57
Total Capital Program	927		995		1,998		1,655		5,575		1,522		1,657		1,441			4,620
* 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
	2014						2015
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr		YTD	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD
Midstream Net Income (Loss) Attributable    to Phillips 66 ($ Millions)
Transportation	62	60	58	53		233	65		65		77			207
DCP Midstream	83	33	31	(12	)	135	(12	)	(151	)	(2	)		(165	)
NGL	43	15	26	55		139	14		8		26			48
Midstream Net Income (Loss) Attributable to Phillips 66	188	108	115	96		507	67		(78	)	101			90
Midstream Income (Loss) before Income Taxes ($ Millions)
Transportation	101	105	102	108		416	113		115		129			357
DCP Midstream	130	52	50	(18	)	214	(17	)	(233	)	(3	)		(253	)
NGL	71	23	42	85		221	20		19		47			86
Midstream Income (Loss) before Income Taxes	302	180	194	175		851	116		(99	)	173			190
Midstream Adjusted EBITDA	384	256	273	257		1,170	199		177		245			621
Depreciation and Amortization ($ Millions)
Transportation	19	20	23	27		89	25		27		31			83
DCP Midstream	—	—	—	—		—	—		—		—			—
NGL	—	1	1	—		2	1		—		2			3
Total	19	21	24	27		91	26		27		33			86
Operating and SG&A Expense ($ Millions)
Transportation	96	109	122	134		461	124		117		113			354
DCP Midstream	—	—	—	—		—	—		—		1			1
NGL	17	20	20	37		94	32		25		34			91
Total	113	129	142	171		555	156		142		148			446
Transportation Volumes (MB/D)
Pipelines*	3,101	3,243	3,142	3,336		3,206	3,145		3,290		3,239			3,225
Terminals**	1,477	1,609	1,780	1,860		1,683	1,983		1,969		2,021			1,991
* 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.
** Terminals include Bayway and Ferndale crude oil rail rack volumes.
PSX Other Volumes
NGL Fractionated (MB/D)*	112	117	110	99		109	108		108		110			109
* Excludes DCP Midstream.
100% DCP Midstream Results
Net Income Attributable, excludes parent company income tax related to DCP's earnings ($ Millions)	165	89	81	(47	)	288	(37	)	(466	)	(6	)		(509	)
Depreciation and Amortization ($ Millions)	85	86	87	90		348	91		94		93			278
Operating and SG&A Expense ($ Millions)	243	283	264	271		1,061	236		240		275			751
Net Interest Expense ($ Millions)*	72	74	71	70		287	76		79		85			240
* Net of interest income.
Capital Expenditures and Investments ($ Millions)	355	353	414	429		1,551	314		297		143			754
Selected DCP Volumes and Gross Margin
by Major Contract Type (excludes current quarter)
Percentage of Proceeds (long NGL / long Gas)*
Volume (TBtu/d)	5.3	5.6	5.8	5.9		5.7	5.6		5.6		**			5.6
Gross Margin ($ Millions)	265	265	275	215		1,020	130		125		**			255
Keep-whole (long NGL / short Gas)*
Volume (TBtu/d)	0.5	0.4	0.4	0.3		0.4	0.3		0.3		**			0.3
Gross Margin ($ Millions)	35	20	25	20		100	10		10		**			20
Fee-based Gas (primarily gathering and transport)*
Volume (TBtu/d)	4.6	4.5	4.6	4.7		4.6	4.7		4.7		**			4.7
Gross Margin ($ Millions)	80	85	90	105		360	95		105		**			200
Fee-based NGL Transport and Fractionation
Volume (MB/d)	242	281	325	340		297	320		339		**			330
Gross Margin ($ Millions)	26	27	39	39		131	36		44		**			80
Other Gross Margin***
Gross Margin ($ Millions)	205	139	175	139		658	118		94		**			212
Total Throughput (TBtu/d)	7.2	7.3	7.5	7.4		7.3	7.1		7.0		7.3			7.1
NGL Production (MB/d)	445	452	471	447		454	399		408		421			409
* 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 ($/BBL)	44.52	39.06	37.66	28.45		37.43	20.57		19.99		17.57			19.38
DCP Midstream ($/gal)	1.06	0.93	0.90	0.68		0.89	0.49		0.48		0.42			0.46
* Based on index prices from the Mont Belvieu and Conway market hubs that are weighted by NGL component and location mix.
MLP Distributions ($ Millions)*
GP Distribution from PSXP to Phillips 66	1	1	2	4		8	6		9		11			26
LP Distribution from PSXP to Phillips 66	15	17	17	19		68	21		23		25			69
GP Distribution from DPM to DCP Midstream***	26	28	29	31		114	31		31		**			62
LP Distribution from DPM to DCP Midstream***	18	18	19	19		74	19		19		**			38
* Cash distributions declared attributable to general partner interest, common unit ownership and incentive distribution rights. These distributions are eliminated in the respective sponsors consolidated financial statements.
** Pending DCP Midstream release.
*** Represents 100 percent of DCP Midstream's distributions from DPM.

Page 4

CHEMICALS
	2014										2015
	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)	316		324		230		267		1,137		203		295		252			750
Chemicals Adjusted EBITDA	534		557		517		493		2,101		380		507		473			1,360
100% CPChem Results
Net Income (Loss), excludes parent company income tax related to CPChem's earnings ($ Millions)
Olefins and Polyolefins	801		903		720		731		3,155		530		769		737			2,036
Specialties, Aromatics and Styrenics	97		52		(45	)	74		178		69		93		4			166
Corporate and Other	(8	)	(15	)	(13	)	(9	)	(45	)	(12	)	(28	)	(11	)		(51	)
Total	890		940		662		796		3,288		587		834		730			2,151
Income (Loss) before Income Taxes ($ Millions)*
Olefins and Polyolefins	815		918		735		741		3,209		542		780		750			2,072
Specialties, Aromatics and Styrenics	105		60		(36	)	79		208		77		100		10			187
Corporate and Other	(8	)	(14	)	(12	)	(9	)	(43	)	(12	)	(28	)	(9	)		(49	)
Total	912		964		687		811		3,374		607		852		751			2,210
* Excludes CPChem discontinued operations.
Depreciation and Amortization ($ Millions)	69		69		74		84		296		76		74		75			225
Net Interest Expense ($ Millions)*	—		(1	)	(1	)	—		(2	)	—		(1	)	(1	)		(2	)
* Net of interest income.
Investing Cash Flows ($ Millions)
Capital Expenditures and Investments*	307		440		484		541		1,772		498		518		661			1,677
Advances to Equity Companies	5		21		18		34		78		10		23		22			55
Advance Repayments from Equity Companies	—		—		—		—		—		—		—		—			—
*Prior period amounts have been restated.
Externally Marketed Sales Volumes (MM Lbs)*
Olefins and Polyolefins	4,302		4,395		4,067		4,051		16,815		4,019		4,258		4,446			12,723
Specialties, Aromatics and Styrenics	1,569		1,530		1,571		1,624		6,294		1,482		1,356		1,259			4,097
Total	5,871		5,925		5,638		5,675		23,109		5,501		5,614		5,705			16,820
* 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 (%)	93	%	95	%	83	%	83	%	88	%	87	%	91	%	94	%		91	%
Market Indicators*
U.S. Industry Prices
Ethylene, Average Acquisition Contract (cents/lb)	53.49		53.03		59.95		50.26		54.18		38.04		37.88		29.18			35.03
HDPE Blow Molding, Domestic Spot (cents/lb)	70.50		71.25		74.33		68.83		71.23		52.75		58.83		58.42			56.67
U.S. Industry Costs
Ethylene, Cash Cost Weighted Average Feed (cents/lb)	20.10		16.77		14.39		10.48		15.44		10.25		9.67		9.64			9.85
HDPE Blow Molding, Total Cash Cost (cents/lb)	67.09		66.56		73.51		63.60		67.69		50.97		50.73		41.91			47.87
Ethylene to High-Density Polyethylene Chain Cash Margin (cents/lb)	36.80		40.95		46.38		45.01		42.28		29.57		36.31		36.05			33.98
* Source: IHS, Inc.

Page 5

REFINING
	2014										2015
	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	38		(37	)	140		57		198		113		90		180			383
Gulf Coast	79		118		66		(11	)	252		71		83		269			423
Central Corridor	225		232		328		182		967		195		216		360			771
Western/Pacific	(36	)	77		24		289		354		159		215		194			568
Refining Net Income (Loss) Attributable to Phillips 66	306		390		558		517		1,771		538		604		1,003			2,145
Refining Income (Loss) before Income Taxes ($ Millions)
Atlantic Basin/Europe	64		(24	)	205		137		382		108		130		228			466
Gulf Coast	128		184		100		(19	)	393		109		127		416			652
Central Corridor	365		373		502		265		1,505		301		347		546			1,194
Western/Pacific	(49	)	114		52		70		187		246		328		298			872
Refining Income (Loss) before Income Taxes	508		647		859		453		2,467		764		932		1,488			3,184
Refining Adjusted EBITDA	722		883		1,098		746		3,449		996		1,176		1,816			3,988
Realized Refining Margins ($/BBL)*
Atlantic Basin/Europe	8.34		5.75		10.60		11.04		8.94		9.94		10.45		10.27			10.22
Gulf Coast	8.80		8.22		7.35		6.33		7.64		10.59		7.38		10.72			9.54
Central Corridor	15.38		15.26		17.84		14.02		15.63		13.86		13.49		20.97			16.02
Western/Pacific	7.58		11.11		9.87		6.92		8.89		16.54		19.87		18.29			18.24
Worldwide	9.88		9.66		10.89		9.30		9.93		12.26		11.70		13.96			12.68
* Based on total processed inputs and includes proportional share of refining margins contributed by certain equity affiliates. Realized margin excludes special items.
Depreciation and Amortization ($ Millions)*
Atlantic Basin/Europe	47		48		49		48		192		45		48		51			144
Gulf Coast	50		50		53		54		207		54		56		57			167
Central Corridor	23		24		23		25		95		25		25		25			75
Western/Pacific	52		52		53		53		210		53		54		54			161
Total	172		174		178		180		704		177		183		187			547
* Excludes D&A of all equity affiliates.
Operating and SG&A Expense ($ Millions)*
Atlantic Basin/Europe	289		259		254		266		1,068		261		287		265			813
Gulf Coast	365		335		366		401		1,467		386		299		320			1,005
Central Corridor	117		129		120		134		500		113		108		138			359
Western/Pacific	233		233		235		251		952		217		244		256			717
Total	1,004		956		975		1,052		3,987		977		938		979			2,894
* Excludes Operating and SG&A Expense of all equity affiliates.
Turnaround Expense ($ Millions), included in
Operating and SG&A Expense*
Atlantic Basin/Europe	23		9		16		14		62		36		89		21			146
Gulf Coast	75		35		67		94		271		114		8		7			129
Central Corridor	5		4		3		6		18		6		1		10			17
Western/Pacific	22		13		15		23		73		17		46		31			94
Total	125		61		101		137		424		173		144		69			386
* Excludes Turnaround Expense of all equity affiliates.
Taxes Other than Income Taxes, excluding Excise Taxes    ($ Millions)
Atlantic Basin/Europe	18		15		15		15		63		16		14		14			44
Gulf Coast	24		21		20		18		83		23		18		18			59
Central Corridor	11		7		9		8		35		11		10		11			32
Western/Pacific	29		26		26		23		104		23		21		22			66
Total	82		69		70		64		285		73		63		65			201
Foreign Currency Gains (Losses) After-Tax ($ Millions)	14		(18	)	(6	)	4		(6	)	(37	)	3		(1	)		(35	)
Refining—Equity Affiliate Information ($ Millions)
Equity in earnings of affiliates	150		173		55		(67	)	311		97		140		112			349
Less: Share of equity affiliate gross margin included in Realized Refining Margin and other equity affiliate-related costs*	(352	)	(364	)	(248	)	(172	)	(1,136	)	(266	)	(303	)	(298	)		(867	)
Equity-affiliate-related expenses not included in Realized Refining Margins	(202	)	(191	)	(193	)	(239	)	(825	)	(169	)	(163	)	(186	)		(518	)
Regional Totals
Gulf Coast	11		13		3		1		28		11		3		7			21
Central Corridor	(167	)	(156	)	(159	)	(195	)	(677	)	(152	)	(136	)	(174	)		(462	)
Other Regions**	(46	)	(48	)	(37	)	(45	)	(176	)	(28	)	(30	)	(19	)		(77	)
Total	(202	)	(191	)	(193	)	(239	)	(825	)	(169	)	(163	)	(186	)		(518	)
* 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)
	2014										2015
	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)	551		562		538		563		554		514		475		570			520
Total Charge Input (MB/D)	585		612		588		616		600		567		524		611			567
Crude Oil Capacity Utilization (%)	94	%	96	%	92	%	96	%	94	%	87	%	81	%	97	%		88	%
Clean Product Yield (%)	84	%	83	%	86	%	85	%	85	%	86	%	84	%	84	%		85	%
* Includes our proportionate share of a refinery complex in Karlsruhe, Germany.
Gulf Coast
Crude Oil Charge Input (MB/D)	613		673		710		708		676		528		662		735			642
Total Charge Input (MB/D)	705		771		794		779		763		590		738		816			715
Crude Oil Capacity Utilization (%)	84	%	92	%	97	%	97	%	92	%	72	%	90	%	100	%		87	%
Clean Product Yield (%)	81	%	79	%	79	%	77	%	79	%	77	%	80	%	81	%		80	%
Central Corridor*
Crude Oil Charge Input (MB/D)	466		493		476		466		475		460		495		448			468
Total Charge Input (MB/D)	481		511		492		481		491		483		512		465			487
Crude Oil Capacity Utilization (%)	96	%	102	%	98	%	96	%	98	%	94	%	101	%	91	%		95	%
Clean Product Yield (%)	88	%	88	%	90	%	90	%	89	%	87	%	90	%	88	%		88	%
* Includes our proportionate share of the Borger Refinery and Wood River Refinery.
Western/Pacific*
Crude Oil Charge Input (MB/D)	395		424		390		403		403		327		337		346			337
Total Charge Input (MB/D)	427		450		423		435		434		357		358		375			364
Crude Oil Capacity Utilization (%)	90	%	96	%	89	%	92	%	92	%	91	%	94	%	96	%		94	%
Clean Product Yield (%)	84	%	85	%	83	%	87	%	85	%	87	%	84	%	86	%		86	%
* Includes our proportionate share of a refinery in Melaka, Malaysia.
Worldwide—Including Proportionate Share of Equity Affiliates
Crude Oil Charge Input (MB/D)	2,025		2,152		2,114		2,140		2,108		1,829		1,969		2,099			1,967
Total Charge Input (MB/D)	2,198		2,344		2,297		2,311		2,288		1,997		2,132		2,267			2,133
Crude Oil Capacity Utilization (%)	90	%	96	%	94	%	95	%	94	%	84	%	90	%	96	%		90	%
Clean Product Yield (%)	84	%	83	%	84	%	84	%	84	%	84	%	84	%	84	%		84	%
Refined Products Production (MB/D)
Atlantic Basin/Europe*
Gasoline	231		244		247		247		242		235		224		248			235
Distillates	245		248		240		262		249		238		200		251			230
Other	112		123		106		113		114		100		102		115			106
Total	588		615		593		622		605		573		526		614			571
* Includes our proportionate share of a refinery complex in Karlsruhe, Germany.
Gulf Coast
Gasoline	276		300		296		275		287		217		299		328			282
Distillates	270		286		299		293		287		216		271		302			263
Other	171		197		203		218		197		168		172		196			179
Total	717		783		798		786		771		601		742		826			724
Central Corridor*
Gasoline	247		262		256		251		254		241		269		238			249
Distillates	173		187		181		181		181		178		189		169			179
Other	63		64		57		53		59		68		55		58			60
Total	483		513		494		485		494		487		513		465			488
* Includes our proportionate share of the Borger Refinery and Wood River Refinery.
Western/Pacific*
Gasoline	181		198		182		194		188		169		173		184			176
Distillates	179		186		167		186		179		140		129		137			135
Other	69		70		76		56		68		52		54		54			53
Total	429		454		425		436		435		361		356		375			364
* Includes our proportionate share of a refinery in Melaka, Malaysia.
Worldwide—Including Proportionate Share of Equity Affiliates
Gasoline	935		1,004		981		967		971		862		965		998			942
Distillates	867		907		887		922		896		772		789		859			807
Other	415		454		442		440		438		388		383		423			398
Total	2,217		2,365		2,310		2,329		2,305		2,022		2,137		2,280			2,147
Market Indicators
Crude and Crude Differentials ($/BBL)
WTI	98.75		103.05		97.48		73.41		93.17		48.55		57.84		46.37			50.92
Brent	108.22		109.63		101.85		76.27		98.99		53.97		61.92		50.26			55.39
LLS	104.43		105.55		100.95		76.38		96.83		52.83		62.95		50.13			55.31
ANS	105.74		109.23		101.51		74.76		97.81		53.68		62.91		51.44			56.01
WTI less Maya	9.41		7.27		6.64		6.21		7.38		4.43		2.52		3.81			3.59
WTI less WCS	20.83		19.15		18.22		15.63		18.46		13.66		9.74		15.06			12.82
Natural Gas ($/MCF)
Henry Hub	5.08		4.58		3.94		3.75		4.34		2.87		2.72		2.74			2.78
Product Margins ($/BBL)
Atlantic Basin/Europe
East Coast Gasoline less Brent	5.12		15.23		15.44		8.69		11.12		9.19		20.92		19.77			16.63
East Coast Distillate less Brent	22.28		14.30		16.63		22.06		18.82		23.22		17.74		15.41			18.79
Gulf Coast
Gulf Coast Gasoline less LLS	5.25		11.53		8.54		(0.03	)	6.32		9.99		13.31		13.44			12.24
Gulf Coast Distillate less LLS	18.63		17.00		16.26		16.17		17.02		18.03		13.96		13.13			15.04
Central Corridor
Central Gasoline less WTI	13.15		16.09		14.05		6.12		12.35		14.88		19.90		22.85			19.21
Central Distillate less WTI	25.94		21.07		21.85		27.60		24.12		22.63		18.21		20.40			20.41
Western/Pacific
West Coast Gasoline less ANS	11.75		20.88		16.59		7.46		14.17		20.21		32.95		38.61			30.59
West Coast Distillate less ANS	17.55		17.16		20.19		21.69		19.15		19.17		18.16		14.84			17.39
Worldwide Market Crack Spread ($/BBL)*	12.44		15.94		14.85		10.45		13.42		15.26		18.94		19.51			17.91
* Weighted average based on Phillips 66 crude capacity.

Page 7

MARKETING AND SPECIALTIES
	2014									2015
	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	93	119		325		299		836		254		266		285		805
Specialties	44	43		43		68		198		50		48		53		151
Marketing and Specialties Net Income Attributableto Phillips 66	137	162		368		367		1,034		304		314		338		956
Marketing and Specialties Income before Income Taxes ($ Millions)
Marketing and Other	135	179		425		423		1,162		325		335		430		1,090
Specialties	70	69		70		104		313		81		75		84		240
Marketing and Specialties Income before Income Taxes	205	248		495		527		1,475		406		410		514		1,330
Marketing and Specialties Adjusted EBITDA	226	271		410		494		1,401		320		301		549		1,170
Realized Marketing Fuel Margin ($/BBL)*
U.S.	1.19	1.17		1.78		1.87		1.51		1.46		1.46		2.26		1.74
International	3.72	4.52		6.10		6.48		5.22		3.85		2.98		5.94		4.28
* On third-party petroleum products sales.
Realized Margins not included in Marketing Fuel Margin ($ Millions)*
Marketing and Other	139	160		169		135		603		165		158		159		482
Specialties	106	102		108		146		462		122		117		122		361
Total	245	262		277		281		1,065		287		275		281		843
* Excludes Gain on Dispositions and Excise Tax Income.
Depreciation and Amortization ($ Millions)
Marketing and Other	20	21		21		21		83		19		19		20		58
Specialties	1	2		3		6		12		5		4		5		14
Total	21	23		24		27		95		24		23		25		72
Operating and SG&A Expense ($ Millions)
Marketing and Other	274	284		295		281		1,134		254		270		292		816
Specialties	32	30		35		34		131		34		35		34		103
Total	306	314		330		315		1,265		288		305		326		919
Marketing Petroleum Products Sales (MB/D)
U.S. Marketing
Gasoline	1,030	1,142		1,093		1,142		1,102		974		1,174		1,158		1,103
Distillates	748	784		750		864		787		689		775		792		752
Other	—	—		—		—		—		—		—		—		—
Total	1,778	1,926		1,843		2,006		1,889		1,663		1,949		1,950		1,855
International Marketing
Gasoline	89	95		95		95		93		88		94		95		92
Distillates	196	186		190		196		192		193		185		193		191
Other	16	19		17		17		17		16		14		15		15
Total	301	300		302		308		302		297		293		303		298
Worldwide Marketing
Gasoline	1,119	1,237		1,188		1,237		1,195		1,062		1,268		1,253		1,195
Distillates	944	970		940		1,060		979		882		960		985		943
Other	16	19		17		17		17		16		14		15		15
Total	2,079	2,226		2,145		2,314		2,191		1,960		2,242		2,253		2,153
Foreign Currency Gains (Losses) After-Tax ($ Millions)	—	(3	)	(3	)	(2	)	(8	)	(1	)	(3	)	—		(4	)

Page 8

CORPORATE AND OTHER
	2014										2015
	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)	(81	)	(121	)	(91	)	(100	)	(393	)	(125	)	(123	)	(116	)		(364	)
Detail of Net Income (Loss) Attributable to Phillips 66 ($ Millions)
Net interest expense	(41	)	(39	)	(36	)	(44	)	(160	)	(53	)	(46	)	(43	)		(142	)
Corporate overhead	(40	)	(44	)	(32	)	(40	)	(156	)	(45	)	(36	)	(37	)		(118	)
Technology	(13	)	(14	)	(14	)	(17	)	(58	)	(14	)	(15	)	(15	)		(44	)
Other	13		(24	)	(9	)	1		(19	)	(13	)	(26	)	(21	)		(60	)
Total	(81	)	(121	)	(91	)	(100	)	(393	)	(125	)	(123	)	(116	)		(364	)
Before-Tax Net Interest Expense ($ Millions)
Interest expense	(69	)	(69	)	(66	)	(83	)	(287	)	(102	)	(105	)	(105	)		(312	)
Capitalized interest	1		3		6		10		20		16		26		34			76
Interest revenue	5		6		5		5		21		5		9		5			19
Total	(63	)	(60	)	(55	)	(68	)	(246	)	(81	)	(70	)	(66	)		(217	)
Foreign Currency Gains (Losses) After-Tax ($ Millions)	—		—		—		—		—		—		—		—			—
Phillips 66 Total Company Debt
Total Debt ($ Millions)	6,217		6,212		6,213		8,684		8,684		8,949		8,965		8,951			8,951
Debt-to-Capital Ratio (%)	22	%	22	%	22	%	28	%	28	%	28	%	28	%	27	%		27	%
Total Equity ($ Millions)	21,829		21,955		22,194		22,037		22,037		22,595		23,223		24,032			24,032

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NON-GAAP FINANCIAL MEASURES RECONCILIATION
	Millions of Dollars
	2014										2015
	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	194		117		124		107		542		78		(62	)	116			132
Plus:
Provision for income taxes	108		63		70		68		309		38		(37	)	57			58
Depreciation and amortization	19		21		24		27		91		26		27		33			86
Midstream EBITDA	321		201		218		202		942		142		(72	)	206			276
Adjustments (pretax):
EBITDA attributable to Phillips 66 noncontrolling interests	(8	)	(12	)	(13	)	(12	)	(45	)	(16	)	(17	)	(20	)		(53	)
Proportional share of selected equity affiliates income taxes	2		—		2		(1	)	3		1		(2	)	—			(1	)
Proportional share of selected equity affiliates net interest	30		31		29		28		118		32		33		34			99
Proportional share of selected equity affiliates depreciation and amortization	39		36		37		38		150		40		41		42			123
Lower-of-cost-or-market inventory adjustments	—		—		—		2		2		—		—		—			—
Impairments by equity affiliates	—		—		—		—		—		—		194		4			198
Asset disposition	—		—		—		—		—		—		—		(30	)		(30	)
Pension settlement expenses	—		—		—		—		—		—		—		9			9
Midstream Adjusted EBITDA*	384		256		273		257		1,170		199		177		245			621
* Proportional share of selected equity affiliates is net of noncontrolling interests.
Reconciliation of Chemicals Net Income to Adjusted EBITDA
Chemicals net income	316		324		230		267		1,137		203		295		252			750
Plus:
Provision for income taxes	126		142		98		129		495		88		121		108			317
Chemicals EBITDA	442		466		328		396		1,632		291		416		360			1,067
Adjustments (pretax):
Proportional share of selected equity affiliates income taxes	27		28		35		21		111		22		25		26			73
Proportional share of selected equity affiliates net interest	3		1		2		3		9		2		1		2			5
Proportional share of selected equity affiliates depreciation and amortization	62		62		64		70		258		65		65		65			195
Impairments by equity affiliates	—		—		88		—		88		—		—		20			20
Lower-of-cost-or-market inventory adjustments	—		—		—		3		3		—		—		—			—
Chemicals Adjusted EBITDA	534		557		517		493		2,101		380		507		473			1,360
Reconciliation of Refining Net Income to Adjusted EBITDA
Refining net income	306		390		558		517		1,771		538		604		1,003			2,145
Plus:
Provision for income taxes	202		257		301		(64	)	696		226		328		485			1,039
Depreciation and amortization	172		174		178		180		704		177		183		187			547
Refining EBITDA	680		821		1,037		633		3,171		941		1,115		1,675			3,731
Adjustments (pretax):
Proportional share of selected equity affiliates income taxes	—		1		—		2		3		—		(2	)	—			(2	)
Proportional share of selected equity affiliates net interest	(19	)	—		—		—		(19	)	—		—		—			—
Proportional share of selected equity affiliates depreciation and amortization	61		61		61		62		245		63		63		62			188
Asset dispositions	—		—		—		(145	)	(145	)	(8	)	—		—			(8	)
Impairments	—		—		—		131		131		—		—		—			—
Pending claims and settlements	—		—		—		23		23		—		—		30			30
Lower-of-cost-or-market inventory adjustments	—		—		—		40		40		—		—		—			—
Pension settlement expenses	—		—		—		—		—		—		—		49			49
Refining Adjusted EBITDA	722		883		1,098		746		3,449		996		1,176		1,816			3,988
Reconciliation of Marketing and Specialties Net Income to Adjusted EBITDA
Marketing and Specialties net income	137		162		368		367		1,034		304		314		338			956
Plus:
Provision for income taxes	68		86		127		160		441		102		96		176			374
Depreciation and amortization	21		23		24		27		95		24		23		25			72
Marketing and Specialties EBITDA	226		271		519		554		1,570		430		433		539			1,402
Adjustments (pretax):
Asset dispositions	—		—		(109	)	(16	)	(125	)	(110	)	(132	)	—			(242	)
Pending claims and settlements	—		—		—		(44	)	(44	)	—		—		—			—
Pension settlement expenses	—		—		—		—		—		—		—		10			10
Marketing and Specialties Adjusted EBITDA	226		271		410		494		1,401		320		301		549			1,170
Reconciliation of Phillips 66 Net Income to Adjusted EBITDA
Net income	1,578		872		1,189		1,158		4,797		997		1,025		1,592			3,614
Less:
Income from discontinued operations	706		—		—		—		706		—		—		—			—
Plus:
Provision for income taxes	426		487		538		203		1,654		391		440		767			1,598
Net interest expense	63		60		55		68		246		81		67		66			214
Depreciation and amortization	234		239		249		273		995		253		274		270			797
Phillips 66 EBITDA	1,595		1,658		2,031		1,702		6,986		1,722		1,806		2,695			6,223
Adjustments (pretax):
EBITDA attributable to Phillips 66 noncontrolling interests	(8	)	(12	)	(13	)	(12	)	(45	)	(16	)	(17	)	(20	)		(53	)
Proportional share of selected equity affiliates income taxes	29		29		37		22		117		23		21		26			70
Proportional share of selected equity affiliates net interest	14		32		31		31		108		34		34		36			104
Proportional share of selected equity affiliates depreciation and amortization	162		159		162		170		653		168		169		169			506
Asset dispositions	—		—		(109	)	(161	)	(270	)	(118	)	(132	)	(30	)		(280	)
Impairments	—		—		—		131		131		—		—		—			—
Impairments by equity affiliates	—		—		88		—		88		—		194		24			218
Pending claims and settlements	—		—		—		(21	)	(21	)	—		(5	)	30			25
Lower-of-cost-or-market inventory adjustments	—		—		—		45		45		—		—		—			—
Pension settlement expenses	—		—		—		—		—		—		—		75			75
Phillips 66 Adjusted EBITDA	1,792		1,866		2,227		1,907		7,792		1,813		2,070		3,005			6,888
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.

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