PHILLIPS 66 PARTNERS LPd18rn0p25nwr6d.cloudfront.net/CIK-0001572910/20eab... · Phillips 66...

UNITED STATESSECURITIES 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): February 3, 2017

Phillips 66 Partners LP(Exact name of registrant as specified in its charter)

Delaware 001-36011 38-3899432(State or other jurisdiction

of incorporation) (CommissionFile Number)

(I.R.S. EmployerIdentification No.)

2331 CityWest Blvd., Houston, Texas 77042(Address of principal executive offices and zip code)

Registrant’s telephone number, including area code: (855) 283-9237

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 thefollowing 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 February 3, 2017 , Phillips 66 Partners LP issued a press release announcing the partnership’s financial and operating results for the quarter endedDecember 31, 2016 . A copy of the press release is attached as Exhibit 99.1 hereto and incorporated herein by reference. Additional financial and operatinginformation about the quarter is attached as Exhibit 99.2 hereto and incorporated herein by reference. The information in this report and the exhibits hereto shall 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 Partners LP on February 3, 2017 .

99.2 — Supplemental financial and operating information.

1

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 undersignedhereunto duly authorized.

PHILLIPS 66 PARTNERS LP By: Phillips 66 Partners GP LLC, its general partner

By: /s/ChukwuemekaA.Oyolu

Chukwuemeka A. OyoluVice President and Controller

Dated: February 3, 2017

2

EXHIBIT INDEX

Exhibit No. Description

99.1 Press release issued by Phillips 66 Partners LP on February 3, 2017. 99.2 Supplemental financial and operating information.

3

Phillips 66 Partners Reports Fourth-Quarter Earnings

Exhibit 99.1

Phillips 66 Partners ReportsFourth -Quarter Earnings

Highlights

Fourth Quarter• Deliveredearningsof$98million;adjustedEBITDAof$161million• Increasedquarterlydistribution5percentto$0.558percommonunit• Completed$1.3billionacquisitionoflogisticsassetsfromPhillips66• AcquiredsoutheastLouisianaNGLsystem• StartedupSacagaweaPipeline

Full-Year 2016• Increasedfourth-quarterdistributionspercommonunitby22percentyear-over-year• Completed$2.3billioninacquisitionsfromPhillips66• Executed$461millioninthird-partyacquisitionsandorganiccapitalspending

HOUSTON,Feb.3,2017–Phillips66PartnersLP(NYSE:PSXP)announcesfourth-quarter2016earningsof$98million,or$0.65percommonunit.Cashfromoperationswas$121million,anddistributablecashflowwas$130million.AdjustedEBITDAwas$161millioninthefourthquarter,comparedwith$111millioninthethirdquarter.Thedistributioncoverageratiowas1.48xforthefourthquarter.

“WehadastrongquarterandincreasedadjustedEBITDAby85percentovertheprioryear,”saidGregGarland,Phillips66Partners’chairmanandCEO.“In2016wesuccessfullycompleted$2.6billioninacquisitionsfromPhillips66andthirdpartieswhileexecutingourorganiccapitalprogram.ThePartnershipremainsontracktoachieve$1.1billionofrun-rateEBITDAbytheendof2018.”

“Duringthefourthquarterwecompleteda$1.3billionacquisitionofPhillips66logisticsassets,ourlargestacquisitiontodate,andfinalizedthepurchaseofasoutheastLouisianaNGLsystem.WestartedoperationoftheSacagaweaPipelineandprogresseddevelopmentoftheeasternlegoftheBayouBridgePipeline.Thisgrowthactivitysupportedourdistributionincreaseof5percentoverthepreviousquarter,withcontinuedstrongdistributioncoverage.”

OnJan.18,2017,thegeneralpartner’sboardofdirectorsdeclaredafourth-quarter2016cashdistributionof$0.558percommonunit.Thefourth-quarterdistributionrepresentsa5percentincreaseoverthethird-quarter2016distributionof$0.531percommonunit.ThePartnershiphasincreaseditsdistributioneveryquartersinceitsinceptionwithacompoundannualgrowthrate(CAGR)of35percent.

Page1


Financial Results

Phillips66Partners’earningsforthefourthquarterof2016were$98million,comparedwith$83millioninthethirdquarter.TheincreasewasprimarilyduetotheOctober2016acquisitionofcrude,refinedproductsandNGLlogisticsassetsfromPhillips66,aswellastheNovember2016acquisitionoftheRiverParishNGLSystem(formerlycalledtheTENDSPipelineSystem)locatedinsoutheastLouisiana.

Liquidity, Capital Expenditures and Investments

AsofDec.31,2016,totaldebtoutstandingwas$2.4billion.Thepartnershiphad$2millionincashandcashequivalentsand$540millionavailableunderits$750millionrevolvingcreditfacility.

InOctober2016,Phillips66Partnersissued$1.1billionofseniornotes.NetproceedsfromtheissuancefundedthecashportionoftheOctoberacquisition.

ThePartnership’stotalcapitalspendingforthequarterwas$254million,whichincluded$14millionofmaintenancecapital.ExpansioncapitalincludedtheRiverParishNGLacquisition,aswellasconstructionoftheBakkenjointventureprojects,progressontheBayouBridgePipelineandtheexpansionoftheSandHillsPipeline.

Strategic Update

TheBayouBridgePipeline,inwhichthePartnershipholdsa40percentinterest,beganoperationsinApril2016fromNederland,Texas,toLakeCharles,Louisiana.DevelopmentcontinuesonthesectionfromLakeCharlestoSt.James,Louisiana,withcommercialoperationsforthissegmentexpectedtobegininthefourthquarterof2017.

TheSacagaweaPipelinejointventurebeganoperationsinthefourthquarterof2016.ThisNorthDakotapipelineconnectsBakkencrudeproductiontothePartnership’sjointlyownedPalermoRailTerminal.

InOctober2016,Phillips66Partnersacquiredcrude,refinedproductsandNGLlogisticsassetsthatsupportthePhillips66-operatedBayway,Billings,BorgerandPoncaCityrefineries.

InNovember2016,thePartnershipcompletedthethird-partyacquisitionoftheRiverParishNGLSystem,anNGLpipelineandstoragesystemlocatedinsoutheastLouisiana.Thesystemisconnectedtothird-partyfractionators,apetrochemicalplantandseveralrefineries,includingthePhillips66AllianceRefinery.

Phillips66Partnersannouncedits2017capitalbudgetof$437million,whichincludes$381milliondirectedtowardexpansionprojectsand$56millionformaintenance.

Page2


Investor Webcast

MembersofPhillips66Partnersexecutivemanagementwillhostawebcasttodayat2p.m.ESTtodiscussthePartnership’sfourth-quarterperformance.Tolistentotheconferencecallandviewrelatedpresentationmaterials,gotowww.phillips66partners.com/events . Fordetailedsupplementalinformation,gotowww.phillips66partners.com/reports .

About Phillips 66 Partners

HeadquarteredinHouston,Phillips66Partnersisagrowth-orientedmasterlimitedpartnershipformedbyPhillips66toown,operate,developandacquireprimarilyfee-basedcrudeoil,refinedpetroleumproductandnaturalgasliquidspipelinesandterminalsandothertransportationandmidstreamassets.Formoreinformation,visitwww.phillips66partners.com .

- # # # -

CONTACTS

RosyZuklic(investors)[email protected]

C.W.Mallon(investors)[email protected]

DennisNuss(media)[email protected]

Page3


CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This news release includes forward-looking statements. 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 Partners (including ourjoint venture operations) are based on management’s expectations, estimates and projections about the Partnership, its interests and the energy industry ingeneral on the date this news release was prepared. These statements are not guarantees of future performance and involve certain risks, uncertainties andassumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-lookingstatements. Factors that could cause actual results or events to differ materially from those described in the forward-looking statements include the continuedability of Phillips 66 to satisfy its obligations under our commercial and other agreements; the volume of crude oil, refined petroleum products and NGL we or ourjoint ventures transport, fractionate, terminal and store; the tariff rates with respect to volumes that we transport through our regulated assets, which rates aresubject to review and possible adjustment by federal and state regulators; fluctuations in the prices for crude oil, refined petroleum products and NGL; liabilitiesassociated with the risks and operational hazards inherent in transporting, fractionating, terminaling and storing crude oil, refined petroleum products and NGL;potential liability from litigation or for remedial actions, including removal and reclamation obligations under environmental regulations; and other economic,business, competitive and/or regulatory factors affecting Phillips 66 Partners’ businesses generally as set forth in our filings with the Securities and ExchangeCommission. Phillips 66 Partners is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements, whetheras a result of new information, future events or otherwise.

Use of Non-GAAP Financial Information —This news release includes the terms “EBITDA,” “adjusted EBITDA,” “distributable cash flow,” and “run-rateEBITDA.” These are non-GAAP financial measures. EBITDA and adjusted EBITDA are included to help facilitate comparisons of operating performance of thePartnership with other companies in our industry. EBITDA and distributable cash flow help facilitate an assessment of our ability to generate sufficient cash flowto make distributions to our partners. We believe that the presentation of EBITDA, adjusted EBITDA and distributable cash flow provides useful information toinvestors in assessing our financial condition and results of operations. The GAAP performance measure most directly comparable to EBITDA and adjustedEBITDA is net income. The GAAP liquidity measure most comparable to EBITDA and distributable cash flow is net cash provided by operating activities. Thesenon-GAAP financial measures should not be considered as alternatives to GAAP net income or net cash provided by operating activities. They have importantlimitations as analytical tools because they exclude some but not all items that affect net income and net cash provided by operating activities. They should notbe considered in isolation or as substitutes for analysis of our results as reported under GAAP. Additionally, because EBITDA, adjusted EBITDA anddistributable cash flow may be defined differently by other companies in our industry, our definition of EBITDA, adjusted EBITDA and distributable cash flow maynot be comparable to similarly titled measures of other companies, thereby diminishing their utility.

Run-rate EBITDA is a forecast of future EBITDA, and is based on the Partnership’s projections of annual EBITDA inclusive of current assets and future potentialacquisitions by the Partnership. Run-rate EBITDA is included to demonstrate management’s intention of future growth through acquisitions and organic projects.We are unable to present a reconciliation of run-rate EBITDA to net income, which is the nearest GAAP financial measure, because certain elements of netincome, including interest, depreciation and taxes, were not used in the forecasts and are therefore not available. Together, these items generally result in run-rate EBITDA being significantly higher than net income. The disaggregation of capital spending between expansion/growth and maintenance is not a distinctionrecognized under GAAP. We provide such disaggregation because the Partnership will generally fund maintenance capital spending with cash from operatingactivities and fund expansion/growth capital spending with financing activities. We believe this is an important distinction in our liquidity profile.

References in the release to earnings and capital spending refer to net income and capital spending attributable to the Partnership, respectively. References toEBITDA refer to earnings before interest, income taxes, depreciation and amortization.

Page4


Results of Operations (Unaudited)

Summarized Financial Statement Information

Millions of Dollars

Except as Indicated Q4 2016 Q3 2016* Selected Income Statement Data

Totalrevenuesandotherincome $ 228 222

Netincome 102 112

NetincomeattributabletothePartnership 98 83

AdjustedEBITDA 161 111

Distributablecashflow 130 102

Net Income Attributable to the PartnershipPer Limited Partner Unit—Basic and Diluted (Dollars)

Commonunits $ 0.65 0.57

Selected Balance Sheet Data

Cashandcashequivalents $ 2 19

Equityinvestments 1,142 1,104

Totalassets 4,109 3,902

Totaldebt 2,411 1,142

Equityheldbypublic

Commonunits 1,795 1,790

EquityheldbyPhillips66

Commonunits 476 469

Generalpartner (704) (600)*Prior-period financial information has been retrospectively adjusted for acquisition of businesses under common control.

Page5


Statement of Income Millions of Dollars Q4 2016 Q3 2016* Revenues and Other Income

Operatingrevenues—relatedparties $ 193 181

Operatingrevenues—thirdparties 9 7

Equityinearningsofaffiliates 26 33

Otherincome — 1

Total revenues and other income 228 222

Costs and Expenses

Operatingandmaintenanceexpenses 54 54

Depreciation 25 25

Generalandadministrativeexpenses 15 17

Taxesotherthanincometaxes 9 4

Interestanddebtexpense 21 10

Otherexpenses 1 —

Total costs and expenses 125 110

Incomebeforeincometaxes 103 112

Provisionforincometaxes 1 —

Net Income 102 112

Less:Netincomeattributabletopredecessors 4 29

Net income attributable to the Partnership 98 83

Less:Generalpartner’sinterestinnetincomeattributabletothePartnership 29 26

Limited partners’ interest in net income attributable to the Partnership $ 69 57*Prior-period financial information has been retrospectively adjusted for acquisition of businesses under common control.

Page6


Selected Operating Data Thousands of Barrels Daily Q4 2016 Q3 2016 Pipeline, Terminal and Storage Volumes

Pipelines (1)

Pipelinethroughputvolumes

Wholly-Owned Pipelines

Crudeoil* 1,007 981

Refinedproductsandnaturalgasliquids* 961 855

Total 1,968 1,836

Select Joint Venture Pipelines (2)

Naturalgasliquids 333 346

Terminals

Terminalthroughputandstoragevolumes(3)

Crudeoil*(4) 563 541

Refinedproductsandnaturalgasliquids* 907 822

Total 1,470 1,363*Prior-period financial information has been retrospectively adjusted for acquisition of businesses under common control.(1) Represents the sum of volumes transported through each separately tariffed pipeline segment.(2) Sand Hills and Southern Hills pipelines (100 percent basis).(3) Terminal throughput and storage volumes include leased capacity converted to a MBD-equivalent based on capacity divided by days in the period.(4) Crude oil terminals include Bayway and Ferndale rail rack volumes. Dollars per Barrel Q4 2016 Q3 2016 Revenue

Averagepipelinerevenue*† $ 0.60 0.59

Averageterminalandstoragerevenue* 0.40 0.41*Prior-period financial information has been retrospectively adjusted for acquisition of businesses under common control.

† Excludes average pipeline revenue per barrel from equity affiliates.

Capital Expenditures and Investments Millions of Dollars Q4 2016 Q3 2016 Capital Expenditures and Investments

Expansion $ 240 109

Maintenance 14 3

Total Partnership 254 112

Predecessors* 5 24

Total Consolidated $ 259 136*Prior-period financial information has been retrospectively adjusted for acquisition of businesses under common control.

Page7


Cash Distributions Millions of Dollars Q4 2016 Q3 2016 Cash Distributions†

Commonunits—public $ 24 22

Commonunits—Phillips66 36 34

Generalpartner—Phillips66 28 26

Total $ 88 82

Cash Distribution Per Unit (Dollars) $ 0.558 0.531

Coverage Ratio* 1.48x 1.24x† Cash distributions declared attributable to the indicated periods.

*Calculated as distributable cash flow divided by total cash distributions. Used to indicate the Partnership’s ability to pay cash distributions from current earnings.

Reconciliation of Adjusted EBITDA and Distributable Cash Flow to Net Income Millions of Dollars Q4 2016 Q3 2016* YTD 2016* YTD 2015*

Reconciliation to Net Income

Net Income $ 102 112 408 306

Plus:

Depreciation 25 25 96 61

Netinterestexpense 21 10 52 34

Provisionforincometaxes 1 — 2 —

EBITDA 149 147 558 401

Distributionsinexcessofequityearnings 10 1 17 12

ExpensesindemnifiedorprefundedbyPhillips66 2 — 6 2

Transactioncostsassociatedwithacquisitions — 2 4 2

Less:EBITDAattributabletoPredecessors — 39 142 151

Adjusted EBITDA 161 111 443 266

Plus:

Deferredrevenueimpacts** 4 4 11 4

Less:

Netinterest 21 10 52 34

Maintenancecapitalexpenditures 14 3 22 8

Distributable Cash Flow $ 130 102 380 228*Prior-period financial information has been retrospectively adjusted for acquisition of businesses under common control.

**Difference between cash receipts and revenue recognition.

Page8


Reconciliation of Distributable Cash Flow to Net Cash Provided by Operating Activities Millions of Dollars Q4 2016 Q3 2016* YTD 2016* YTD 2015*

Reconciliation to Net Cash Provided by Operating Activities

Net cash provided by operating activities $ 121 128 492 392

Plus:

Netinterestexpense 21 10 52 34

Provisionforincometaxes 1 — 2 —

Changesinworkingcapital 12 8 28 (12)

Undistributedequityearnings (5) 3 (1) —

Accruedenvironmentalcosts (1) — (1) (1)

Other — (2) (14) (12)

EBITDA 149 147 558 401

Distributionsinexcessofequityearnings 10 1 17 12

ExpensesindemnifiedorprefundedbyPhillips66 2 — 6 2

Transactioncostsassociatedwithacquisitions — 2 4 2

Less:EBITDAattributabletoPredecessors — 39 142 151

Adjusted EBITDA 161 111 443 266

Plus:

Deferredrevenueimpacts** 4 4 11 4

Less:

Netinterest 21 10 52 34

Maintenancecapitalexpenditures 14 3 22 8

Distributable Cash Flow $ 130 102 380 228*Prior-period financial information has been retrospectively adjusted for acquisition of businesses under common control.

**Difference between cash receipts and revenue recognition.

Page9

Exhibit 99.2

Phillips 66 Partners LP Earnings Release Supplemental Data

Factors Affecting ComparabilityThefollowingtablespresentourfinancialresultsandoperatingdataforeachquarterlyperiodofthecurrentandpriorfiscalyears.Duringtheperiodscoveredbythisreport,weacquiredbusinessesfromPhillips66thatwereconsideredtransfersofbusinessesbetweenentitiesundercommoncontrol,whichrequiresthemtobeaccountedforasifthetransfershadoccurredatthebeginningoftheperiodoftransfer,withfinancialstatementsforpriorperiodsretrospectivelyadjustedtofurnishcomparativeinformation.Accordingly,theconsolidatedfinancialandoperatinginformationincludedinthefollowingtableshasbeenretrospectivelyadjustedtoincludethehistoricalfinancialandoperatingresultsoftheseacquiredbusinessespriortotheeffectivedateofacquisition.Werefertotheresultsofthesepre-acquisitionperiodsasthoseofour“Predecessors”inthetablesbelow.Tableslabeled“Phillips66PartnersLP”excludePredecessors,whiletableslabeled“Consolidated”includePredecessors.Thestatementsofincomeprovidedonpages1through3aredesignedtoenableuserstoevaluatethefinancialeffectofthesebusinesscombinationsinaccordancewithAccountingStandardCodification805-10-50-1.

STATEMENT OF INCOME

PHILLIPS 66 PARTNERS LP

MillionsofDollars2015 2016

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTDRevenues and Other Income

Operatingrevenues—relatedparties 63 62 65 70 260 76 107 108 183 474

Operatingrevenues—thirdparties 1 1 1 2 5 2 2 2 8 14

Equityinearningsofaffiliates 6 21 25 25 77 25 30 33 26 114

Otherincome — — — 6 6 — — 1 — 1

Total revenues and other income 70 84 91 103 348 103 139 144 217 603

Costs and Expenses

Operatingandmaintenanceexpenses 15 17 15 15 62 18 27 26 49 120

Depreciation 5 6 5 6 22 8 15 15 24 62

Generalandadministrativeexpenses 8 6 6 7 27 8 8 9 15 40

Taxesotherthanincometaxes 1 4 2 2 9 4 5 1 9 19

Interestanddebtexpense 6 9 10 9 34 10 11 10 21 52

Total costs and expenses 35 42 38 39 154 48 66 61 118 293

Incomebeforeincometaxes 35 42 53 64 194 55 73 83 99 310

Provisionforincometaxes — — — — — — 1 — 1 2

Net Income 35 42 53 64 194 55 72 83 98 308Less:Netincomeattributabletononcontrollinginterests — — — — — 3 4 — — 7

Net income attributable to the Partnership 35 42 53 64 194 52 68 83 98 301Less:Generalpartner’sinterestinnetincomeattributabletothePartnership 6 9 12 14 41 16 21 26 29 92

Limited partners’ interest in net incomeattributable to the Partnership 29 33 41 50 153 36 47 57 69 209

Adjusted EBITDA 49 57 73 87 266 74 97 111 161 443

Distributable Cash Flow 42 48 64 74 228 64 84 102 130 380

Page1

Exhibit 99.2

STATEMENT OF INCOME (continued)

PREDECESSORS

MillionsofDollars2015* 2016

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr* 2nd Qtr* 3rd Qtr* 4th Qtr † YTDRevenues and Other Income



Total revenues 80 84 83 100 347 101 80 78 11 270

Costs and Expenses


Depreciation 8 8 10 13 39 15 8 10 1 34

Generalandadministrativeexpenses 8 10 9 9 36 9 8 8 — 25

Taxesotherthanincometaxes 5 4 4 5 18 6 5 3 — 14

Otherexpenses — — 1 — 1 — — — 1 1



Provisionforincometaxes — — — — — — — — — —

Net Income 26 30 25 31 112 39 28 29 4 100

Netincomeattributabletononcontrollinginterests — — — — — 3 4 — — 7

Net income attributable to the Predecessor 26 30 25 31 112 42 32 29 4 107

EBITDA attributable to Predecessors** 34 38 35 44 151 58 45 39 5 147* Prior-period financial information has been retrospectively adjusted for acquisitions of businesses under common control.** Includes rounding impacts.† In accordance with contractual terms of the Eagle Acquisition, Q4 2016 EBITDA attributable to Predecessors did not affect Q4 2016 DistributableCash Flow as the transaction’s effective closing date was October 1, 2016.

Page2

Exhibit 99.2

STATEMENT OF INCOME (continued)

CONSOLIDATED

MillionsofDollars,ExceptasIndicated2015* 2016

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr* 2nd Qtr* 3rd Qtr* 4th Qtr YTDRevenues and Other Income



Equityinearningsofaffiliates 6 21 25 25 77 25 30 33 26 114

Otherincome — — — 6 6 — — 1 — 1

Total revenues and other income 150 168 174 203 695 204 219 222 228 873

Costs and Expenses


Depreciation 13 14 15 19 61 23 23 25 25 96

Generalandadministrativeexpenses 16 16 15 16 63 17 16 17 15 65

Taxesotherthanincometaxes 6 8 6 7 27 10 10 4 9 33

Interestanddebtexpense 6 9 10 9 34 10 11 10 21 52

Otherexpenses — — 1 — 1 — — — 1 1




Net Income 61 72 78 95 306 94 100 112 102 408

Less:NetincomeattributabletoPredecessors 26 30 25 31 112 42 32 29 4 107

NetincomeattributabletothePartnership 35 42 53 64 194 52 68 83 98 301Less:Generalpartner’sinterestinnetincomeattributabletothePartnership 6 9 12 14 41 16 21 26 29 92

Limited partners’ interest in net incomeattributable to the Partnership 29 33 41 50 153 36 47 57 69 209

Net Income Attributable to the Partnership PerLimited Partner Unit—Basic and Diluted (dollars)

Commonunits 0.39 0.50 0.50 0.61 2.02 0.44 0.51 0.57 0.65 2.20

Subordinatedunits—Phillips66 0.35 — — — 1.24 — — — — —

Average Limited Partner Units Outstanding—

Basic and Diluted ( thousands)

Commonunits—public 21,047 24,139 24,139 24,139 23,376 24,139 31,397 40,392 43,135 34,804

Commonunits—Phillips66 21,468 41,489 57,743 57,947 44,797 58,490 59,562 60,163 63,498 60,436

Subordinatedunits—Phillips66 35,217 16,254 — — 12,736 — — — — —* Prior-period financial information has been retrospectively adjusted for acquisitions of businesses under common control.

Page3

Exhibit 99.2

SELECTED OPERATING DATA PHILLIPS 66 PARTNERS LP 2015 2016 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTDPipeline, Terminal and Storage Volumes

(MB/D)

Pipelines (1)



Crudeoil 283 282 306 283 289 281 287 257 899 432

Refinedproductsandnaturalgasliquids 462 446 438 522 467 520 606 619 929 669

Total 745 728 744 805 756 801 893 876 1,828 1,101


Naturalgasliquids 97 285 280 280 236 306 346 346 333 333

Terminals


Crudeoil(4) 558 518 536 464 519 502 559 541 561 541

Refinedproductsandnaturalgasliquids 431 424 441 443 435 427 450 442 847 542

Total 989 942 977 907 954 929 1,009 983 1,408 1,083(1) Represents the sum of volumes transported through each separately tariffed pipeline segment. (2) Total post-acquisition pipeline system throughput volumes for the Sand Hills and Southern Hillspipelines (100 percent basis) per day for each period presented.

(3) Terminal throughput and storage volumes include leased capacity converted to a MBD-equivalent based on capacity divided by days in the period.

(4) Crude oil terminals include Bayway and Ferndale rail rack volumes.

Revenue Per Barrel ($/BBL)

Averagepipelinerevenue* 0.44 0.44 0.45 0.51 0.46 0.46 0.48 0.46 0.59 0.50

Averageterminalandstoragerevenue 0.38 0.39 0.39 0.42 0.40 0.40 0.38 0.39 0.40 0.39

* Excludes average pipeline revenue per barrel from equity affiliates.

Page4

Exhibit 99.2

SELECTED OPERATING DATA (continued) CONSOLIDATED 2015 2016 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTDPipeline, Terminal and Storage Volumes

(MB/D)

Pipelines (1)



Crudeoil* 921 988 999 1,007 979 1,025 1,024 981 1,007 1,009

Refinedproductsandnaturalgasliquids* 743 740 706 806 749 801 852 855 961 867

Total 1,664 1,728 1,705 1,813 1,728 1,826 1,876 1,836 1,968 1,876


Naturalgasliquids 97 285 280 280 236 306 346 346 333 333

Terminals


Crudeoil*(4) 558 518 536 464 519 502 559 541 563 541

Refinedproductsandnaturalgasliquids* 803 811 814 823 813 784 820 822 907 833

Total 1,361 1,329 1,350 1,287 1,332 1,286 1,379 1,363 1,470 1,374

* Prior-period financial information has been retrospectively adjusted for acquisitions of businessesunder common control.

(1) Represents the sum of volumes transported through each separately tariffed pipeline segment. (2) Total post-acquisition pipeline system throughput volumes for the Sand Hills and Southern Hillspipelines (100 percent basis) per day for each period presented.

(3) Terminal throughput and storage volumes include leased capacity converted to a MBD-equivalent based on capacity divided by days in the period.

(4) Crude oil terminals include Bayway and Ferndale rail rack volumes.

Revenue Per Barrel ($/BBL)

Averagepipelinerevenue* † 0.64 0.63 0.63 0.65 0.64 0.61 0.61 0.59 0.60 0.60

Averageterminalandstoragerevenue* 0.40 0.40 0.40 0.43 0.41 0.42 0.40 0.41 0.40 0.41* Prior-period financial information has been retrospectively adjusted for acquisitions of businesses undercommon control.

† Excludes average pipeline revenue per barrel from equity affiliates.

Page5

Exhibit 99.2

CAPITAL EXPENDITURES AND INVESTMENTS MillionsofDollars

2015 2016 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTDPartnership Capital Expenditures and

Investments

Expansion 31 63 39 64 197 32 58 109 240 439

Maintenance 2 2 2 2 8 1 4 3 14 22

Total Partnership 33 65 41 66 205 33 62 112 254 461

Predecessors* 191 247 143 109 690 31 36 24 5 96

Total Consolidated 224 312 184 175 895 64 98 136 259 557* Prior-period financial information has been retrospectively adjusted for acquisitions of businesses under common control.

CASH DISTRIBUTIONS 2015 2016 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD

Cash Distribution Per Unit (Dollars) 0.370 0.400 0.428 0.458 1.656 0.481 0.505 0.531 0.558 2.075

Cash Distributions † ($ Millions)

Commonunits—public 9 9 11 11 40 12 19 22 24 77Commonunits—Phillips66 9 23 24 27 83 28 30 34 36 128Subordinatedunits—Phillips66 13 — — — 13 — — — — —Generalpartner—Phillips66 6 9 11 13 39 16 21 26 28 91

Total 37 41 46 51 175 56 70 82 88 296

Coverage Ratio* 1.14 1.17 1.39 1.45 1.30 1.14 1.20 1.24 1.48 1.28† Cash distributions declared attributable to the indicated periods.* Calculated as distributable cash flow divided by total cash distributions. Used to indicate the Partnership's ability to pay cash distributions fromcurrent earnings.

Page6

Exhibit 99.2

NON-GAAP FINANCIAL MEASURES RECONCILIATION CONSOLIDATED MillionsofDollars

2015* 2016 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr* 2nd Qtr* 3rd Qtr* 4th Qtr YTD

Reconciliation to Net Income

NetIncome 61 72 78 95 306 94 100 112 102 408

Plus:

Depreciation 13 14 15 19 61 23 23 25 25 96

Netinterestexpense 6 9 10 9 34 10 11 10 21 52


EBITDA 80 95 103 123 401 127 135 147 149 558

Distributionsinexcessofequityearnings 1 — 4 7 12 4 2 1 10 17

ExpensesindemnifiedorprefundedbyPhillips66 — — 1 1 2 — 4 — 2 6

Transactioncostsassociatedwithacquisitions 2 — — — 2 1 1 2 — 4

EBITDAattributabletoPredecessors (34) (38) (35) (44) (151) (58) (45) (39) — (142)

Adjusted EBITDA 49 57 73 87 266 74 97 111 161 443

Plus: Deferredrevenueimpacts** 1 2 3 (2) 4 1 2 4 4 11

Less:

Netinterest 6 9 10 9 34 10 11 10 21 52

Maintenancecapitalexpenditures 2 2 2 2 8 1 4 3 14 22


* Prior-period financial information has been retrospectively adjusted for acquisitions of businesses under common control.** Difference between cash receipts and revenue recognition.

Page7

Exhibit 99.2

NON-GAAP FINANCIAL MEASURES RECONCILIATION (continued) CONSOLIDATED MillionsofDollars

2015* 2016 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr* 2nd Qtr* 3rd Qtr* 4th Qtr YTDReconciliation to Net Cash Provided by

Operating Activities

Netcashprovidedbyoperatingactivities 65 104 89 134 392 111 132 128 121 492

Plus:

Netinterestexpense 6 9 10 9 34 10 11 10 21 52


Changesinworkingcapital 4 (15) 9 (10) (12) 13 (5) 8 12 28

Undistributedequityearnings 6 (2) (1) (3) — (1) 2 3 (5) (1)

Accruedenvironmentalcosts — — (1) — (1) — — — (1) (1)

Other (1) (1) (3) (7) (12) (6) (6) (2) — (14)

EBITDA 80 95 103 123 401 127 135 147 149 558

Distributionsinexcessofequityearnings 1 — 4 7 12 4 2 1 10 17

ExpensesindemnifiedorprefundedbyPhillips66 — — 1 1 2 — 4 — 2 6

Transactioncostsassociatedwithacquisitions 2 — — — 2 1 1 2 — 4

EBITDAattributabletoPredecessors (34) (38) (35) (44) (151) (58) (45) (39) — (142)

Adjusted EBITDA 49 57 73 87 266 74 97 111 161 443

Plus: Deferredrevenueimpacts** 1 2 3 (2) 4 1 2 4 4 11

Less:

Netinterest 6 9 10 9 34 10 11 10 21 52

Maintenancecapitalexpenditures 2 2 2 2 8 1 4 3 14 22


* Prior-period financial information has been retrospectively adjusted for acquisitions of businesses under common control.** Difference between cash receipts and revenue recognition.

Page8

PHILLIPS 66 PARTNERS LPd18rn0p25nwr6d.cloudfront.net/CIK-0001572910/20eab... · Phillips 66...

Documents

Transcript of PHILLIPS 66 PARTNERS LPd18rn0p25nwr6d.cloudfront.net/CIK-0001572910/20eab... · Phillips 66...