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Cautionary Statement

2

This presentation contains 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 the operations of Phillips 66 and Phillips 66 Partners LP (including joint venture operations) are based on management’s expectations,

estimates and projections, their interests and the energy industry in general on the date this presentation 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 can be found in filings by Phillips 66 and Phillips 66 Partners LP

with the Securities and Exchange Commission. Phillips 66 and Phillips 66 Partners LP are under no obligation (and expressly disclaim any such

obligation) to update or alter their forward-looking statements, whether as a result of new information, future events or otherwise.

This presentation includes non-GAAP financial measures. You can find the reconciliations to comparable GAAP financial measures at the end of

the presentation materials or in the “Investors” section of the websites of Phillips 66 and Phillips 66 Partners LP.

Market Dynamics

3

Strategy

4

Operating Excellence

Growth

Returns

Distributions

High-Performing Organization

See appendix for footnotes.

Operating Excellence

5

Value Chains

6

Midstream Organic Growth

7

Sweeny Midstream Hub Sweeny Fractionator One and Clemens Caverns in

operation 4Q 2015

Freeport LPG Export Terminal startup 2H 2016

DAPL/ETCOP Commercial operations expected to begin 4Q 2016

Beaumont Terminal projects 2.5 MMBbls new crude/products tanks planned by 2H 2016

Bakken JVs (PSXP) Sacagawea Pipeline expected startup 2H 2016

Bayou Bridge System (PSXP) Lake Charles segment operational 1Q 2016

St. James segment targeted in-service 2H 2017

DCP EBITDA excluded.

See appendix for additional footnotes.

Phillips 66 Partners

Fee-based EBITDA

Investment-grade credit rating

Financial targets:

30% distribution CAGR 2013-2018

3.5x debt/EBITDA

1.1x annual coverage ratio


8

Phillips 66 Partners 1Q 2016 Drop Down

9

Assets include a 25% controlling interest in:

Sweeny Fractionator – 100MBD NGL fractionator

Clemens NGL Caverns – 7.5MMBbl NGL storage facility

Total transaction value of $236 MM funded with:

$24 MM take-back equity of PSXP LP and GP units

$212 MM sponsor loan payable to PSX

2016E full-year EBITDA of $25 MM

Long-term, take-or-pay contracts with Phillips 66 for the

full capacity of the assets

$25 MM EBITDA is attributable to PSXP interest.

DCP Midstream

10

Strengthened balance sheet

Significant self-help initiatives

Cash flow breakeven reduction from 60 to 35 cpg NGL

Operating improvements

Contract realignment

System rationalization

Capital discipline

90% investment-grade end-use customers

Expected to be self-funding

No DCP Midstream debt maturities until 2019

Global Chemicals Demand

11

Source: Wood Mackenzie.

Petrochemical demand driven by

global economic growth

Demand outpaced capacity additions

0

150

300

450

600

750

900

1,050

1,200

0 15 30 45 60 75 90 105 120 135 150

Chemicals Production Costs

12

M.E.

Ethane

N.A. Ethane

N.A. LPG

M.E. LPG/Naphtha

W. Europe

Naphtha

N.A. Naphtha

W. Europe LPG

Asia Naphtha Asia LPG/Ethane

Cumulative Capacity MM Tons

2015 vs 2014 Average Ethylene Production Cost Curve ($/ton)

Petrochemical production costs

reduced globally

CPChem location-advantaged

feedstock position continues

Rest of World

Asia Coal

CPChem

Source: Wood Mackenzie.

2014

2015

CPChem Growth

13

USGC Petrochemicals Project

1,500 kMTA (ethylene) at Cedar Bayou, TX

1,000 kMTA (polyethylene) at Old Ocean, TX

Planned startup mid-2017

$1 B estimated EBITDA

Healthy pipeline of self-funded growth

opportunities

Expect increased distributions post USGC

project completion

EBITDA estimate is on a CPChem 100% basis and is based on January 2016 IHS forecast premises.

Refining

14


Strong free cash flow

Increased demand for refined products

Expansive footprint provides opportunities

for Midstream growth

Refining

15

Investing to improve returns

Quick payout, low cost projects

Wood River projects

Dilbit capacity increase, ULSD expansion,

FCC modernization

$200 MM capex, $100 MM EBITDA

Bayway FCC modernization


Billings heavy crude project



Marketing & Specialties

16

Increased U.S. gasoline sales volumes by 7%

Upgraded 300 U.S. branded sites

Increased U.K. inland gasoline placement by 11%

Added 31 new retail sites in Germany and Austria

Third largest U.S. finished lubricants supplier


Financial Strength

17

Strong balance sheet

Investment-grade credit rating

Disciplined capital allocation

20% net debt/cap

$3.1 B cash

$5 B revolving credit facility


Capital Allocation

18

Funding reinvestment

Cash from operations

PSXP proceeds

Returning capital to shareholders

Dividend growth

Ongoing share repurchases


Capital Spending

19

Distributions

20

Double-digit dividend growth

37% dividend CAGR since spin

Ongoing share repurchase program

110 MM shares repurchased and exchanged

$2.6 B authorization remaining

Cumulative distributions include distributions since July 2012.

See appendix for additional footnotes.

Compelling Investment

21

Shareholder returns

Disciplined capital allocation

Unique portfolio

EBITDA growth

Multiple expansion

-20%

20%

60%

100%

140%

180%

220%

May-12 Feb-13 Nov-13 Aug-14 May-15 Feb-16

PSX +165%

S&P 100 +47%

Peers +37%

Appendix

Segment Strategy

23

Refining:

Enhance Returns Midstream: Growth Chemicals: Growth

Marketing &

Specialties:

Selective Growth

Execute Sweeny Hub

Grow integrated

transportation system

PSXP as a funding vehicle

Pursue organic and M&A

opportunities

Grow CPChem organically

Advance olefins and

polyolefins projects

Capitalize on domestic

feedstock advantage

Leverage proprietary

technology

Optimize crude slate

Expand export capability

Increase yields

Maintain cost discipline

Enhance portfolio

Expand European retail

marketing

Grow lubricants

Ensure domestic refinery

pull-through

Midcontinent Integrated Growth

24

Midstream

Palermo rail terminal/Sacagawea pipeline (PSXP)

DAPL/ETCOP

Refining, Marketing & Specialties

Ponca City

Yield improvement project

Tight oil processing flexibility

100% lease crude purchases

Wood River

Dilbit capacity increase

ULSD expansion

FCC modernization

Billings

Vacuum tower project


Grow branded fuels volumes

Enhance Phillips 66 brand

Marketing JVs and alliances

LPG Export Terminal

(Under Construction)

Clemens Caverns

Western Gulf Creating a World-Class Energy Complex

25

Midstream

Sweeny Fractionator One (25% PSXP)

Freeport LPG export terminal

Eagle Ford crude pipeline

Sweeny Fractionator Two


Sweeny

Strategic asset integration


Grow unbranded fuels volumes

Focus on high-quality branded assets

Increase high-margin exports

Eastern Gulf Refining Logistics and Midstream Growth

26

Midstream

Beaumont terminal expansion: +7 MMBbls

Bayou Bridge pipeline

Alliance clean products dock


Lake Charles

Increase feedstock advantage

Alliance

Increase light crude runs


Grow unbranded fuels volumes

Leverage brand value through licensing


Grow performance lubricants and export sales

West Coast Enhancing Returns

Midstream

Los Angeles waterborne crude tank

Santa Maria rail rack


San Francisco

Yield improvements

Los Angeles

FCC energy reduction


Grow branded and unbranded fuels volumes

Enhance 76 brand


Grow export lubricant sales

27

Atlantic Basin Enhancing Returns

Midstream

Bayway LPG loading facility


Bayway

FCC reactor modernization

Yield improvements


Grow JET and COOP brands in Europe

Increase unbranded volumes in the U.K. and U.S.

Expand brand licensing in the U.S.

28

Historical Performance

29

Free Cash Flow 2013 – 2015 Average

30

CFO excludes working capital. Sustaining capex excludes capital leases.

Midstream adjusted CFO excludes PSXP. PSXP contributions are calculated as consideration paid by PSXP to PSX in dropdown transactions plus quarterly cash distributions paid from PSXP to PSX. Midstream

sustaining capex excludes PSXP.

DCP Midstream, CPChem and WRB free cash flow calculated based on Phillips 66’s share of after tax cash flow at the enterprise level.

35%

19%

19%

5%

M&S

Chemicals Refining

Midstream

-10%

0%

10%

20%

30%

40%

Average Capital Employed ($B)

Corporate

-8%

2015 Adjusted ROCE

31

P66 Total

14%

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32

Capital Structure

32

Debt and Liquidity

33

As of 12/31/2015. Excludes PSXP.

Debt maturity profile excludes capital leases.

Undrawn Revolving Credit Facility includes $5.0 B revolving credit facility less $51 MM in letters of credit.

2016 Sensitivities

34

Sensitivities shown above are independent and are only valid within a limited price range.

Phillips 66 Capital Program

35

Sustaining Growth Total

Consolidated Capital Expenditures and Investments

Midstream(1) 227 2,119 2,346

Chemicals - - -

Refining 833 384 1,217

Marketing and Specialties 57 80 137

Corporate(2) 180 - 180

1,297 2,583 3,880

Select Equity Affiliates (3)

DCP 98 125 223

CPChem 241 775 1,016

WRB 129 55 184

467 956 1,423

Capital Program(3)

Midstream 324 2,244 2,568

Chemicals 241 775 1,016

Refining 962 439 1,401

Marketing and Specialties 57 80 137

Corporate 180 - 180

1,764 3,539 5,303

Millions of Dollars

2016 Budget

(3) Includes Phillips 66’s portion of self-funded capital spending by DCP Midstream, CPChem, and WRB.

(2) Includes non-cash capitalized lease of $3 million in Corporate

(1) Includes 100% of Phillips 66 Partners

Footnotes

36

Slide 3

2016 YTD data is through February 18, 2016 unless otherwise noted.

Global Market Crack refers to worldwide market crack spread based on Phillips 66 global crude capacity.

NGL weighted average prices are based on index prices from the Mont Belvieu and Conway market hubs

that are weighted by DCP Midstream, LLC’s (DCP’s) NGL component and location mix.

PE cash chain margins are ethylene to high-density polyethylene cash chain margins. 2016 YTD is

January average pricing. Source: IHS, Inc.

Slide 4

Corporate not included in bars on chart, but included in totals. Adjusted EBITDA adjusted for non-

controlling interest and proportional share of selected equity affiliates’ income taxes, net interest and D&A.

Footnotes

37

Slide 5

Injury statistics do not include major projects.

Industry Averages are from: Phillips 66 – American Fuel & Petrochemical Manufacturers (AFPM) refining

data, Chevron Phillips Chemical Company LLC (CPChem) – American Chemistry Council (ACC), DCP –

Gas Processors Association (GPA).

Growth component of operating costs is estimated based on growth initiatives post-2013.

Slide 7

PSX operating assets EBITDA includes Refining Logistics. Refining Logistics represents terminaling,

storage and other logistics assets currently embedded in the Refining segment. Amount represents an

estimate of the EBITDA potential of these assets if they were transferred to Midstream and market-based

fees for their use were charged to the Refining segment.

Projects under construction and planned EBITDA growth is 2018 estimated run-rate EBITDA of projects

completed 2016 or later. PSXP EBITDA includes EBITDA attributable to non-controlling interests.

Planned EBITDA includes projects that have not yet reached final investment decision.

Footnotes

38

Slide 8

3Q 2013 distribution represents the minimum quarterly distribution, actual distribution of $0.1548 equal to

MQD prorated.

Slide 14

FCF is CFO less sustaining capital, excluding working capital. WRB Refining LP (WRB) free cash flow is

calculated based on P66’s share of after tax cash flow at the enterprise level.

Global realized margin is based on total processed inputs and includes proportional share of refining

margins contributed by certain equity affiliates. Realized margin excludes special items.

Slide 15

Wood River Projects capex and EBITDA shown at 100% WRB.

Refining capex excludes capital leases but includes Phillips 66’s portion of self-funded capital spending by

WRB. Project capex and annual EBITDA are estimated.

Slide 16

FCF is CFO less sustaining capital, excluding working capital.

Footnotes

39

Slide 17

Net debt/cap and cash figures are consolidated.

Revolving credit facility available includes $5.0 B revolving credit facility less $51 MM in letters of credit.

Adjusted CFO excludes PSXP and excludes working capital.

PSXP contributions are calculated as consideration paid by PSXP to PSX in dropdown transactions plus

quarterly cash distributions paid from PSXP to PSX.

Sustaining capex excludes capital leases and excludes PSXP.

Slide 18

Reinvestment excludes Phillips 66’s portion of self-funded capital spending by DCP, CPChem and WRB.

Includes $1.5 B equity contribution to DCP in 2015.

Distributions include the 2014 PSPI share exchange.

Slide 19

Capital program includes Phillips 66’s portion of self-funded capital spending by DCP, CPChem and WRB.

Footnotes

40

Slide 20

2014 share repurchases and exchanges include the PSPI share exchange.

Slide 21

Chart reflects total shareholder return May 1, 2012 to February 18, 2016. Dividends assumed to be

reinvested in stock. Source: Bloomberg.

Peer average includes Delek US Holdings, Inc., HollyFrontier Corporation, Marathon Petroleum

Corporation, PBF Energy Inc., Tesoro Corporation, Valero Energy Corporation, Western Refining, Energy

Transfer Equity, L.P., Enterprise Products Partners L.P., ONEOK, Inc., Targa Resources Corp., Celanese

Corporation, The Dow Chemical Company, Eastman Chemical Company, Huntsman Corporation,

LyondellBasell Industries NV, and Westlake Chemical Corporation.

Non-GAAP Reconciliations

41

Adjusted EBITDA by Segment Reconciliation 2012 2013 2014 2015

Midstream (excluding DCP Midstream)

Midstream net income attributable to Phillips 66 (127) 259 372 337

Plus:

Net income attributable to noncontrolling interests 7 17 35 61

Provision for income taxes (71) 142 230 212

Depreciation and amortization 83 88 91 127

Midstream (excluding DCP Midstream) EBITDA (108) 506 728 737

Adjustments (pretax):

EBITDA attributable to Phillips 66 noncontrolling interests (13) (24) (45) (73)

Proportional share of selected equity affiliates income taxes - - - -

Proportional share of selected equity affiliates net interest - - - -

Proportional share of selected equity affiliates depreciation and amortization - - - -

Lower-of-cost-or-market inventory adjustments - - - -

Gain on asset dispositions - - - -

Gain on share issuance by equity affiliate - - - -

Impairments 523 - - -

Pending Claims and settlements (37) - - -

Hurricane-related costs 2 - - -

Pension settlement expense - - - 9

Midstream (excluding DCP Midstream) Adjusted EBITDA* 367 482 683 673

* Proportional share of selected equity affiliates is net of noncontrolling interests.

Millions of Dollars


Proportional Share of DCP Midstream

Proportional Share of DCP Midstream net income attributable to Phillips 66 179 210 135 (324)

Plus:

Net income attributable to noncontrolling interests

Provision for income taxes 100 122 79 (139)

Depreciation and amortization - - - -

Proportional Share of DCP Midstream EBITDA 279 332 214 (463)


EBITDA attributable to Phillips 66 noncontrolling interests

Proportional share of selected equity affiliates income taxes - 4 3 (2)

Proportional share of selected equity affiliates net interest 85 110 118 133

Proportional share of selected equity affiliates depreciation and amortization 131 139 150 166

Lower-of-cost-or-market inventory adjustments - - 2 -

Gain on asset dispositions - - - (30)

Gain on share issuance by equity affiliate - - - -

Impairments in equity affiliates - - - 366

Pending Claims and settlements - - - -

Hurricane-related costs - - - -

Proportional Share of DCP Midstream Adjusted EBITDA* 495 585 487 170

* Proportional share of selected equity affiliates is net of noncontrolling interests.

Millions of Dollars


42


Chemicals

Chemicals net income attributable to Phillips 66 823 986 1,137 962

Plus:

Provision for income taxes 366 375 495 353

Chemicals EBITDA 1,189 1,361 1,632 1,315


Proportional share of selected equity affiliates income taxes 79 93 111 91

Proportional share of selected equity affiliates net interest 13 10 9 7


Impairments by equity affiliates 43 - 88 24

Premium on early debt retirement 144 - - -

Lower-of-cost-or-market inventory adjustments - - 3 -

Chemicals Adjusted EBITDA 1,681 1,710 2,101 1,701

Millions of Dollars


Refining

Refining net income (loss) attributable to Phillips 66 3,091 1,747 1,771 2,555

Plus:

Provision for income taxes 1,998 1,035 696 1,104

Net interest expense - - - -


Refining EBITDA 5,744 3,467 3,171 4,397


Proportional share of selected equity affiliates income taxes 5 (4) 3 (3)

Proportional share of selected equity affiliates net interest (118) (95) (19) -


Net (gain) loss on asset dispositions (185) - (145) (8)

Impairments 606 - 131 -

Canceled projects - - - -

Pending claims and settlements 31 - 23 30

Severence accruals - - - -

Hurrican-related costs 54 - - -

Tax law impacts - (22) - -

Lower-of-cost-or-market inventory adjustments - - 40 53

Pension settlement expenses - - - 53

Refining Adjusted EBITDA 6,373 3,583 3,449 4,774

Millions of Dollars


43


Marketing and Specialties

Marketing and Specialties net income attributable to Phillips 66 544 894 1,034 1,187

Plus:

Provision for income taxes 319 433 441 465

Net interest expense - - - (2)


Marketing and Specialties EBITDA 1,010 1,430 1,570 1,747


Asset dispositions (4) (40) (125) (242)

Impairments - - - -

Pending claims and settlements 62 (25) (44) -

Exit of a business line - 54 - -

Tax law impacts - (6) - -

Pension settlement expenses - - - 11

Marketing and Specialties Adjusted EBITDA 1,068 1,413 1,401 1,516

Millions of Dollars


Corporate

Corporate net income (loss) attributable to Phillips 66 (434) (431) (393) (490)

Plus:

Net income attributable to noncontrolling interests - - - (8)

Provision for income taxes (239) (263) (287) (231)

Net interest expense 231 258 246 285


Corporate EBITDA (421) (365) (329) (328)


Impairments 25 - - -

Repositioning Costs 85 - - -

Pending claims and settlements - - - -

Tax impacts - - - -

Pension settlement expense - - - 7

Corporate Adjusted EBITDA (311) (365) (329) (321)

Millions of Dollars


44

2009 2010 2011 2012 2013 2014 2015

Phillips 66

Phillips 66 net income attributable to Phillips 66 476 735 4,775 4,124 3,726 4,762 4,227

Less:

Income from discontinued operations 19 30 43 48 61 706 -

Plus:

Net income attributable to noncontrolling interests 3 5 5 7 17 35 53

Provision for income taxes 357 562 1,822 2,473 1,844 1,654 1,764

Net interest expense (44) (41) (16) 231 258 246 283

Depreciation and amortization 873 874 902 906 947 995 1,078

Phillips 66 EBITDA 1,646 2,105 7,445 7,693 6,731 6,986 7,405


EBITDA attributable to Phillips 66 noncontrolling interests - (9) (10) (13) (24) (45) (73)

Proportional share of selected equity affiliates income taxes 47 63 80 84 93 117 86

Proportional share of selected equity affiliates net interest (26) (6) (27) (20) 25 108 140

Proportional share of selected equity affiliates depreciation and amortization 557 540 584 580 622 653 682

Gain on asset dispositions (37) (234) (1,636) (189) (40) (270) (280)

Gain on share issuance by equity affiliate (135) - - - - - -

Impairments 129 1,512 506 1,197 - 131 -

Impairments by equity affiliates - - - 88 390

Cancelled projects - 106 44 - - - -

Severence accruals - 28 24 - - - -

Exit of a business line - - - - 54 - -

Pending claims and settlements 39 (56) - 56 (25) (21) 30

Premium on early debt retirement - - - 144 - - -

Repositioning Costs - - - 85 - - -

Hurricane-related costs - - - 56 - - -

Tax law impacts - - - - (28) - -

Lower-of-cost-or-market inventory adjustments - - - - - 45 53

Pension settlement expense - - - - - - 80

Phillips 66 Adjusted EBITDA 2,220 4,049 7,010 9,673 7,408 7,792 8,513

Millions of Dollars


45

Forecasted EBITDA

We are unable to present reconciliations of the various forecasted EBITDA included in this presentation, because

certain elements of net income, including interest, depreciation and income taxes, are not reasonably available.

Together, these items generally result in EBITDA being significantly greater than net income.


46

2013 2014 2015

Refining FCF

Numerator

Cash From Operations GAAP $ 3,700 1,374 2,770

Less: Change in Non-Cash Working Cap. 818 (1,599) (441)

Cash From Operations (excluding WC) 2,882$ 2,973 3,211

Less: P66 Equity affiliate cash from ops 1,020 838 90

Add: Equity look through cash from ops 848 351 303

Adjusted FCF (excl WC) 2,710$ 2,486 3,424

Total Capex GAAP 820 1,038 1,069

Less: Growth Capex 166 265 189

Sustaining Capex 654$ 773 880

Less: P66 Equity affiliate sustaining capex - - -

Add: Equity look through sustaining capex 94 118 151

Adjusted Sustaining Capex $ 748 891 1,031

Refining Free Cash Flow 1,962$ 1,595 2,393

Millions of Dollars


47

2013 2014 2015

Refining ROCE

Numerator

Net Income 1,747 1,771 2,554

After-tax interest expense - - -

GAAP ROCE earnings 1,747 1,771 2,554

Special Items (13) (195) (28)

Adjusted ROCE earnings 1,734 1,576 2,526

Denominator

GAAP average capital employed* 13,940 13,377 13,582

Discontinued Operations - - -

Adjusted average capital employed* 13,940 13,377 13,582

*Total equity plus debt.

Adjusted ROCE (percent) 12% 12% 19%

GAAP ROCE (percent) 13% 13% 19%


Millions of Dollars


48

2013 2014 2015

M&S FCF

Numerator

Cash From Operations GAAP $ 757 1,663 1,736

Less: Change in Non-Cash Working Cap. (217) 651 676

Cash From Operations (excluding WC) 974$ 1,012 1,060

Less: P66 Equity affiliate cash from ops - - -

Add: Equity look through cash from ops - - -

Adjusted FCF (excl WC) 974$ 1,012 1,060

Total Capex GAAP 226 439 122

Less: Growth Capex 176 379 53

Sustaining Capex 50$ 60 69

Less: P66 Equity affiliate sustaining capex - - -

Add: Equity look through sustaining capex - - -

Adjusted Sustaining Capex $ 50 60 69

M&S Free Cash Flow 924$ 952 991

Millions of Dollars


49

2013 2014 2015

M&S ROCE

Numerator

Net Income 894 1,034 1,187

After-tax interest expense - - -

GAAP ROCE earnings 894 1,034 1,187

Special Items (9) (152) (239)

Adjusted ROCE earnings 885 882 948

Denominator

GAAP average capital employed* 3,160 2,743 2,735

Discontinued Operations - - -

Adjusted average capital employed* 3,160 2,743 2,735


Adjusted ROCE (percent) 28% 32% 35%

GAAP ROCE (percent) 28% 38% 43%


Millions of Dollars


50

2013 2014 2015

Phillips 66 Available Cash

Cash From Continuing Operations GAAP 5,942$ 3,527 5,713

Less: Change in Non-Cash Working Cap. 880 (1,020) (221)

Cash From Operations (excluding WC) 5,062$ 4,547 5,934

Less: PSXP cash from operations 24 100 176

Adjusted CFO 5,038$ 4,447 5,758

Add: PSXP contributions 20 536 1,478

Total Available Cash 5,058$ 4,983 7,236

Total Phillips 66 Sustaining Capex 1,028$ 1,095 1,186

Less: PSXP Sustaining Capex 3 12 8

Sustaining Capex excluding PSXP 1,025$ 1,083 1,178

Remaining capital expenditures 754 2,690 4,586

GAAP capital expenditures 1,779$ 3,773 5,764

Millions of Dollars


51

2009 2010 2011 2012 2013 2014 2015

Phillips 66 Cash from Operations

Cash From Continuing Operations GAAP 917$ 2,054 4,953 4,259 5,942 3,527 5,713

Less: Change in Non-Cash Working Cap. 393 (195) 314 (1,140) 880 (1,020) (221)

Cash From Continuing Operations (excluding WC) 524$ 2,249 4,639 5,399 5,062 4,547 5,934

Millions of Dollars


52

2009 2010 2011 2012 2013 2014 2015

Reconciliation of Earnings to Adjusted Earnings

Consolidated

Earnings 476 735 4,775 4,124 3,726 4,762 4,227

Adjustments:

Gain on share issuance by equity affiliate (88) - - - - - -

Asset dispositions (32) (116) (1,545) (106) (23) (494) (265)

Impairments 116 1,118 318 979 - 131 -

Impairments by equity affiliates - - - - - 69 256

Canceled projects - 29 28 - - - -

Severance accruals - 28 15 - - - -

Pending claims and settlements 25 (35) - 34 (16) (10) (23)

Premium on early debt retirement - - - 89 - - -

Repositioning costs - - - 55 - - -

Exit of business line - - - - 34 - -

Repositioning tax impacts - - - 177 - - -

Certain tax impacts - - - - (17) - (84)

Hurricane-related costs - - - 35 - - -

Lower-of-cost-or-market inventoyr adjustments - - - - - 30 33

Pension settlement expenses - - - - - - 49

Discontinued operations (19) (30) (43) (48) (61) (706) -

Adjusted earnings 478 1,729 3,548 5,339 3,643 3,782 4,193

Millions of Dollars

Except as Indicated


53

Midstream Chemicals Refining

Marketing &

Specialties

FCF

Numerator

Cash From Operations GAAP 859$ 571 2,615 1,385

Less: Change in Non-Cash Working Cap. (46) 0 (407) 370

Cash From Operations (excluding WC) 905$ 571 3,022 1,015

Less: P66 Equity affiliate cash from ops 228 571 649 0

Add: Equity look through cash from ops 378 1,147 501 0

Adjusted FCF (excl WC) 1,055$ 1,147 2,874 1,015

Total Capex GAAP 2,409 0 976 262

Less: Growth Capex 1,750 0 207 203

Sustaining Capex 659$ 0 769 59

Less: P66 Equity affiliate sustaining capex 500 0 0 0

Add: Equity look through sustaining capex 125 209 121 0

Adjusted Sustaining Capex 284$ 209 890 59

PSXP Contributions 678$ - - -

Free Cash Flow 1,449$ 938 1,984 956

Average 2013-2015


54

Phillips 66 Midstream Chemicals Refining

Marketing &

Specialties Corporate

ROCE

Numerator

Net Income 4,280$ 74 962 2,554 1,187 (497)

After-tax interest expense 201 - - - - 201

GAAP ROCE earnings 4,481 74 962 2,554 1,187 (296)

Special Items (34) 235 (10) (28) (240) 9

Adjusted ROCE earnings 4,447$ 309 952 2,526 947 (287)

Denominator

GAAP average capital employed* 31,749$ 6,793 4,921 13,582 2,735 3,718

Discontinued Operations - - - - - -

Adjusted average capital employed* 31,749$ 6,793 4,921 13,582 2,735 3,718


Adjusted ROCE (percent) 14% 5% 19% 19% 35% -8%

GAAP ROCE (percent) 14% 1% 20% 19% 43% -8%


Millions of Dollars

2015


55

Adjusted

Phillips 66

Phillips 66

Partners

Phillips 66

Consolidated

2013

Cash and cash equivalents 4,975 425 5,400

Total Debt 6,126 - 6,126

Total Equity 21,983 409 22,392

Debt-to-capital ratio 22% 21%

2014


Total Debt 8,617 18 8,635

Total Equity 21,622 415 22,037


2015


Total Debt 7,796 1,091 8,887

Total Equity 23,129 809 23,938


Millions of Dollars

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