SIGNATURESd1lge852tjjqow.cloudfront.net/CIK-0001572910/1ad6db2c-8... · 2016-01-29 · 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): January 29, 2016

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.)

3010 Briarpark Drive, 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 January 29, 2016 , Phillips 66 Partners LP issued a press release announcing the partnership’s financial and operating results for the quarter endedDecember 31, 2015 . A copy of the press release is furnished as Exhibit 99.1 hereto and incorporated herein by reference. Additional financial and operatinginformation 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 Partners LP on January 29, 2016 .

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

/s/ChukwuemekaA.Oyolu

Chukwuemeka A. OyoluVice President and Controller

January 29, 2016

2

EXHIBIT INDEX

Exhibit No. Description

99.1 Press release issued by Phillips 66 Partners LP on January 29, 2016. 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

• AdjustedEBITDAof$87million• Distributablecashflow(DCF)of$74million• Increasedquarterlydistributionby7percentto$0.458percommonunit• AcquiredPhillips66’sinterestintheBayouBridgePipelinejointventure• Netincomeof$65million

HOUSTON,Jan.29,2016–Phillips66PartnersLP(NYSE:PSXP)announcesfourth-quarter2015earningsof$65million,or$0.61percommonunit.Adjustedearningsbeforeinterest,incometaxes,depreciationandamortization(adjustedEBITDA)were$87millionanddistributablecashflowwas$74million.Thecoverageratioforthefourthquarterwas1.44x.

“Wehadastrongfourthquarter,whichsupportsourrecentlyannounced7percentquarterlydistributionincrease,”saidGregGarland,Phillips66Partners’ChairmanandCEO.“Ourfee-basedassetportfoliocontinuestoproducehigherearnings.Wedeliveredourplannedgrowthin2015bycompleting$1.1billioninacquisitionsandcontinuingtheexecutionofourorganicgrowthprogram.Theseactionsledtoyear-over-yearincreasesof89percentinadjustedEBITDAand78percentinDCF.Weremainontracktodeliverourfive-yearannualdistributiongrowth-rateobjectiveof30percentthrough2018.”

OnJan.21,2016,thegeneralpartner’sboardofdirectorsdeclaredafourth-quarter2015cashdistributionof$0.458percommonunit.Thisdistributionrepresentsa7percentincreasecomparedwiththethird-quarter2015distributionanda35percentincreasefromthefourthquarterof2014.

Financial Results

Totalrevenuesandotherincomeforthefourthquarterwere$103million,anincreaseof$11millionfromthethirdquarterof2015.Theincreaseinthefourthquarterwasprimarilyduetohighervolumesonthepartnership’sGoldLineProductsSystemanda$5millionnonrecurringmake-wholepaymentfromajointventure.VolumeswerealsohigherontheEagleFordGatheringSystem,duetotheSeptembercompletionoftheproject’ssecondphase,andontheCross-ChannelConnectorProductsSystem.

Totalcostswere$38millioninthefourthquarterof2015,inlinewiththethirdquarter.

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Liquidity, Capital Expenditures and Investments

AsofDec.31,2015,totaldebtoutstandingwas$1.1billion.Thepartnershiphad$48millionincashandcashequivalentsandanundrawn$500millionrevolvingcreditfacility,whichmaybeincreasedupto$750million.

Duringthefourthquarterof2015,capitalexpendituresandinvestmentstotaled$67million,ofwhich$65millionwasforgrowthprojectsandinvestments.

Strategic Update

OnDec.1,2015,Phillips66PartnersclosedontheacquisitionofPhillips66’s40percentinterestinBayouBridgePipeline,LLC.Totalconsiderationforthetransactionwas$70million,equallyfundedthroughtheissuanceofunitsandcashtoPhillips66.

TheBayouBridgejointventureisdevelopingapipelinethatwilldelivercrudeoilfromthePhillips66andSunocoLogisticsPartnersterminalsinNederland,Texas,toLakeCharles,Louisiana,andontoSt.James,Louisiana.Constructionisunderwayonthe30-inchNederlandtoLakeCharlessegmentofthepipeline,whichisexpectedtobegincommercialoperationbytheendoffirst-quarter2016.ThepipelinesegmenttoSt.Jamesisscheduledtocommenceserviceinthesecondhalfof2017.

Phillips66Partnerscontinuestomakeprogressonitsorganicgrowthprojects.ThePalermoRailTerminalbeganrailcar-loadingfromtruckdeliveriesinDecember2015.TheSacagaweaPipelineisexpectedtostartupinthird-quarter2016.TheterminalandpipelineareprojectsintheBakkenregionbeingdevelopedthrougha70percent-ownedterminaljointventureanda50percent-ownedpipelinejointventure,eachwithParadigmEnergyPartners.TheSacagaweaPipelineis88percent-ownedbythepipelinejointventure,withtheremaining12percentownedbyGreyWolfMidstream,LLC,anaffiliateofMissouriRiverResources.

TheCross-ChannelConnectorProductsSystemisnowprovidingshipperswithaconnectionfromthepartnership’sPasadenaTerminaltothird-partysystemswithwateraccessontheHoustonShipChannel.

Investor Webcast

MembersofPhillips66Partnersexecutivemanagementwillhostawebcasttodayat2p.m.ESTtodiscussPSXP’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 .

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#MLP-20151231_ERXEX991_HTM_




CONTACTS

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

DennisNuss(media)[email protected]

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; the tariff rates with respect to volumes that we transport through our regulated assets, which rates are subject to review and possibleadjustment by federal and state regulators; fluctuations in the prices for crude oil, refined petroleum products and NGL; liabilities associated with the risks andoperational hazards inherent in transporting, terminaling and storing crude oil, refined petroleum products and NGL; potential liability from litigation or forremedial actions, including removal and reclamation obligations under environmental regulations; and other economic, business, competitive and/or regulatoryfactors affecting Phillips 66 Partners’ businesses generally as set forth in our filings with the Securities and Exchange Commission. Phillips 66 Partners is underno obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements, whether as a result of new information, futureevents or otherwise.

Use of Non-GAAP Financial Information —This news release includes the terms “EBITDA,” “adjusted EBITDA,” “distributable cash flow,” and “growthcapital.” These are non-GAAP financial measures. Distributable cash flow is generally defined as adjusted EBITDA less net interest, maintenance capitalexpenditures and income taxes paid, plus adjustments for deferred revenue from minimum volume commitments and prefunded maintenance capitalexpenditures. EBITDA, adjusted EBITDA and distributable cash flow are included to help facilitate comparisons of operating performance of the partnership withother companies in our industry. EBITDA and distributable cash flow help facilitate an assessment of our assets’ ability to generate sufficient cash flow to makedistributions to our partners. We believe that the presentation of EBITDA, adjusted EBITDA and distributable cash flow provides useful information to investors inassessing our financial condition and results of operations. The GAAP performance measure most directly comparable to EBITDA, adjusted EBITDA anddistributable cash flow is net income. The GAAP liquidity measure most comparable to EBITDA and distributable cash flow is net cash provided by operatingactivities. These non-GAAP financial measures should not be considered as alternatives to GAAP net income or net cash provided by operating activities. Theyhave important limitations as analytical tools because they exclude some but not all items that affect net income and net cash provided by operating activities.They should not be considered in isolation or as substitutes for analysis of our results as reported under GAAP. Additionally, because EBITDA, adjusted EBITDAand distributable cash flow may be defined differently by other companies in our industry, our definition of EBITDA, adjusted EBITDA and distributable cash flowmay not be comparable to similarly titled measures of other companies, thereby diminishing their utility. Our capital requirements consist of maintenance capitalexpenditures and expansion capital expenditures, including contributions to our joint ventures. Examples of maintenance capital expenditures are those made toreplace partially or fully depreciated assets, to maintain the existing operating capacity of our assets and to extend their useful lives, or other capitalexpenditures that are incurred in maintaining existing system volumes and related cash flows. In contrast, expansion capital expenditures are those made toexpand and upgrade our systems and facilities and to construct or acquire new systems or facilities to grow our business, including contributions to jointventures that are using the contributed funds for such purposes. Although GAAP does not recognize this distinction, our partnership agreement requires that wemake it, due to the difference in how maintenance and growth capital expenditures are treated for purposes of calculating operating surplus.

References in the release to earnings refer to net income. References to EBITDA refer to earnings before interest, income taxes, depreciation and amortization.

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Results of Operations (Unaudited)

Summarized Financial Statement Information

Millions of Dollars

Except as Indicated Q4 2015 Q3 2015 Selected Income Statement Data

Totalrevenuesandotherincome $ 102.8 91.4

Netincome 64.5 52.3

AdjustedEBITDA 87.1 73.4

Distributablecashflow 74.0 64.5

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

Commonunits $ 0.61 0.50

Selected Balance Sheet Data

Cashandcashequivalents $ 48.0 72.9

Equityinvestments 944.9 858.4

Totalassets* 1,523.5 1,461.7

Totaldebt* 1,090.7 1,090.4

Total Equity

Equity held by public

Commonunits $ 808.9 804.5

Equity held by Phillips 66

Commonunits 233.0 182.9

Generalpartner (650.3) (649.8)

Accumulatedothercomprehensiveloss (1.5) (1.5)

Total Equity $ 390.1 336.1*Q32015amountsretrospectivelyadjustedforadoptionofAccountingStandardsUpdateNo.2015-03.

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Statement of Income Millions of Dollars Q4 2015 Q3 2015 Revenues

Transportationandterminalingservices—relatedparties $ 70.1 65.4

Transportationandterminalingservices—thirdparties 2.3 0.7

Equityinearningsofaffiliates 25.2 25.2

Otherincome 5.2 0.1

Total revenues and other income 102.8 91.4

Costs and Expenses

Operatingandmaintenanceexpenses 14.4 15.5

Depreciation 5.7 5.7

Generalandadministrativeexpenses 6.6 6.2

Taxesotherthanincometaxes 2.2 2.4

Interestanddebtexpense 9.3 9.2

Otherexpenses — —

Total costs and expenses 38.2 39.0

Incomebeforeincometaxes 64.6 52.4

Provisionforincometaxes 0.1 0.1

Net Income $ 64.5 52.3

Selected Operating Data Thousands of Barrels Daily Q4 2015 Q3 2015 Pipeline, Terminal and Storage Volumes

Pipelines (1)

Pipelinethroughputvolumes

Wholly-Owned Pipelines

Crudeoil 283 306

Refinedproducts 522 438

Total 805 744

Select Joint Venture Pipelines (2)

Naturalgasliquids 280 280

Terminals

Terminalingthroughputandstoragevolumes

Crudeoil(3) 464 536

Refinedproducts 443 441

Total 907 977(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 Hills pipelines (100 percent basis) per day for each period presented.(3) Crude oil terminals include Bayway and Ferndale rail rack volumes. Dollars per Barrel Q4 2015 Q3 2015 Revenue

Averagepipelinerevenue* $ 0.51 0.45

Averageterminalingandstoragerevenue 0.42 0.39

* Excludes average pipeline revenue per barrel from equity affiliates.


Capital Expenditures and Investments Millions of Dollars Q4 2015 Q3 2015 Capital Expenditures and Investments

Expansion $ 65.0 38.1

Maintenance 2.3 2.2

Total $ 67.3 40.3

Cash Distributions Millions of Dollars Q4 2015 Q3 2015 Cash Distributions*

Commonunits—public $ 11.1 10.3

Commonunits—Phillips66 26.7 24.8

Generalpartner—Phillips66 13.6 11.1

Total $ 51.4 46.2

* Cash distributions declared attributable to the indicated periods.

Cash Distribution Per Unit (Dollars) $ 0.4580 0.4280

Coverage Ratio 1.44 1.40

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Reconciliation of Adjusted EBITDA and Distributable Cash Flow to Net Income Millions of Dollars Q4 2015 Q3 2015 YTD 2015 YTD 2014

Reconciliation to Net Income

Net Income $ 64.5 52.3 194.2 124.4

Plus:

Depreciation 5.7 5.7 21.8 16.2

Netinterestexpense 9.2 9.1 33.6 5.2

Amortizationofdeferredrentals 0.1 0.1 0.4 0.4

Provisionforincometaxes 0.1 0.1 0.3 0.8

EBITDA 79.6 67.3 250.3 147.0

Distributionsinexcessofequityearnings 6.6 4.6 12.1 —

ExpensesindemnifiedorprefundedbyPhillips66 0.5 1.1 1.9 1.6

Transactioncostsassociatedwithacquisitions 0.4 0.4 2.2 2.7

EBITDAattributabletoPredecessors — — — (10.3)

Adjusted EBITDA 87.1 73.4 266.5 141.0

Plus:

Adjustmentsrelatedtominimumvolumecommitments (1.7) 2.4 4.0 0.6

Phillips66prefundedmaintenancecapitalexpenditures — — — 1.9

Less:

Netinterest 9.2 9.1 34.3 3.2

Incometaxespaid(refunded) (0.1) — 0.3 0.2

Maintenancecapitalexpenditures 2.3 2.2 7.7 11.9

Distributable Cash Flow $ 74.0 64.5 228.2 128.2

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Reconciliation of Distributable Cash Flow to Net Cash Provided by Operating Activities Millions of Dollars Q4 2015 Q3 2015 YTD 2015 YTD 2014

Reconciliation to Net Cash Provided by Operating Activities

Net Cash Provided by Operating Activities $ 86.9 46.1 229.8 142.4

Plus:

Netinterestexpense 9.2 9.1 33.6 5.2

Provisionforincometaxes 0.1 0.1 0.3 0.8

Changesinworkingcapital (13.1) 14.6 (10.3) (0.3)

Undistributedequityearnings (2.6) (0.9) 0.1 —

Accruedenvironmentalcosts (0.2) (0.5) (0.8) —

Other (0.7) (1.2) (2.4) (1.1)

EBITDA 79.6 67.3 250.3 147.0

Distributionsinexcessofequityearnings 6.6 4.6 12.1 —

ExpensesindemnifiedorprefundedbyPhillips66 0.5 1.1 1.9 1.6

Transactioncostsassociatedwithacquisitions 0.4 0.4 2.2 2.7

EBITDAattributabletoPredecessors — — — (10.3)

Adjusted EBITDA 87.1 73.4 266.5 141.0

Plus:

Adjustmentsrelatedtominimumvolumecommitments (1.7) 2.4 4.0 0.6

Phillips66prefundedmaintenancecapitalexpenditures — — — 1.9

Less:

Netinterest 9.2 9.1 34.3 3.2

Incometaxespaid(refunded) (0.1) — 0.3 0.2

Maintenancecapitalexpenditures 2.3 2.2 7.7 11.9

Distributable Cash Flow $ 74.0 64.5 228.2 128.2

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Exhibit 99.2

Phillips 66 Partners LP Earnings Release Supplemental Data

Factors Affecting ComparabilityThefollowingtablespresentourfinancialresults,operatingdata,EBITDA,adjustedEBITDAanddistributablecashflowforeachquarterlyperiodthroughDecember31,2015.In2014,weacquiredtheGoldLineProductsSystem,MedfordSpheres,BaywayandFerndalerailracks,andtheCross-ChannelConnectorProductsSystemandEagleFordGatheringSystemprojectsfromPhillips66.TheacquisitionsoftheGoldLine,Medford,BaywayandFerndaleassetsweretransfersofbusinessesbetweenentitiesundercommoncontrol,whichrequiresretrospectiveadjustmentstofurnishcomparativeconsolidatedinformation.Accordingly,theconsolidatedfinancialandoperatinginformationincludedinthefollowingtableshasbeenretrospectivelyadjustedtoincludethehistoricalfinancialandoperatingresultsoftheseacquiredbusinessespriortotheeffectivedateofeachacquisition.ThecombinedresultsoftheGoldLine,Medford,BaywayandFerndalebusinessesarereflectedinthe“Predecessors”sectionsinthetablesbelow.

In2015,thePartnershipcompletedtheformationoftheBakkenjointventuresandacquiredPhillips66’sequityinterestsintheSandHills,SouthernHills,ExplorerandBayouBridgepipelinecompanies.Theseacquisitions,aswellastheprojectsacquiredin2014representedtransfersofassets.Accordingly,theresultsoftheseequityinvestmentsandprojectsareincludedprospectivelyfromtheeffectivedateofeachacquisition.

STATEMENT OF INCOME

PHILLIPS 66 PARTNERS LP

MillionsofDollars2014 2015

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTDRevenuesTransportationandterminalingservices—relatedparties 35.3 54.5 52.7 61.0 203.5 62.8 62.3 65.4 70.1 260.6

Transportationandterminalingservices—thirdparties 0.6 2.4 0.7 1.7 5.4 1.1 0.9 0.7 2.3 5.0

Equityinearningsofaffiliates — — — — — 6.1 20.6 25.2 25.2 77.1Otherincome 0.1 — — — 0.1 0.1 — 0.1 5.2 5.4

Total revenues and other income 36.0 56.9 53.4 62.7 209.0 70.1 83.8 91.4 102.8 348.1

Costs and ExpensesOperatingandmaintenanceexpenses 8.3 13.0 12.5 13.2 47.0 14.8 17.5 15.5 14.4 62.2Depreciation 2.4 3.9 4.0 4.0 14.3 5.1 5.3 5.7 5.7 21.8Generalandadministrativeexpenses 5.6 5.4 4.9 6.0 21.9 7.4 6.4 6.2 6.6 26.6Taxesotherthanincometaxes 0.6 1.0 1.1 0.9 3.6 1.3 3.1 2.4 2.2 9.0Interestanddebtexpense 0.5 1.3 1.4 2.1 5.3 5.9 9.5 9.2 9.3 33.9Otherexpenses — — — 0.1 0.1 — 0.1 — — 0.1

Total costs and expenses 17.4 24.6 23.9 26.3 92.2 34.5 41.9 39.0 38.2 153.6Incomebeforeincometaxes 18.6 32.3 29.5 36.4 116.8 35.6 41.9 52.4 64.6 194.5Provisionfor(benefitfrom)incometaxes 0.3 0.2 0.1 0.2 0.8 0.2 (0.1) 0.1 0.1 0.3Net Income 18.3 32.1 29.4 36.2 116.0 35.4 42.0 52.3 64.5 194.2Less:Generalpartner’sinterestinnetincomeattributabletothePartnership 0.8 1.7 2.0 3.8 8.3 6.4 9.0 11.5 14.1 41.0

Limited partners’ interest in net incomeattributable to the Partnership 17.5 30.4 27.4 32.4 107.7 29.0 33.0 40.8 50.4 153.2

Adjusted EBITDA 23.8 37.6 35.9 43.7 141.0 49.0 57.0 73.4 87.1 266.5

Distributable Cash Flow 23.3 34.3 33.4 37.2 128.2 41.9 47.8 64.5 74.0 228.2

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Exhibit 99.2

STATEMENT OF INCOME (continued)

PREDECESSORS


1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTDRevenuesTransportationandterminalingservices—relatedparties 15.2 — 2.1 2.1 19.4 — — — — —

Transportationandterminalingservices—thirdparties 0.7 — — — 0.7 — — — — —

Total revenues 15.9 — 2.1 2.1 20.1 — — — — —

Costs and ExpensesOperatingandmaintenanceexpenses 3.4 0.4 0.7 1.0 5.5 — — — — —Depreciation 1.2 — 0.2 0.5 1.9 — — — — —Generalandadministrativeexpenses 1.8 0.8 0.6 0.5 3.7 — — — — —Taxesotherthanincometaxes 0.6 — — — 0.6 — — — — —

Total costs and expenses 7.0 1.2 1.5 2.0 11.7 — — — — —Incomebeforeincometaxes 8.9 (1.2) 0.6 0.1 8.4 — — — — —Provisionforincometaxes — — — — — — — — — —Net Income (Loss) 8.9 (1.2) 0.6 0.1 8.4 — — — — —

EBITDA attributable to Predecessors 10.1 (1.2) 0.8 0.6 10.3 — — — — —

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Exhibit 99.2

STATEMENT OF INCOME (continued)

CONSOLIDATED

MillionsofDollars,ExceptasIndicated2014 2015

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTDRevenuesTransportationandterminalingservices—relatedparties 50.5 54.5 54.8 63.1 222.9 62.8 62.3 65.4 70.1 260.6

Transportationandterminalingservices—thirdparties 1.3 2.4 0.7 1.7 6.1 1.1 0.9 0.7 2.3 5.0

Equityinearningsofaffiliates — — — — — 6.1 20.6 25.2 25.2 77.1Otherincome 0.1 — — — 0.1 0.1 — 0.1 5.2 5.4

Total revenues and other income 51.9 56.9 55.5 64.8 229.1 70.1 83.8 91.4 102.8 348.1

Costs and ExpensesOperatingandmaintenanceexpenses 11.7 13.4 13.2 14.2 52.5 14.8 17.5 15.5 14.4 62.2Depreciation 3.6 3.9 4.2 4.5 16.2 5.1 5.3 5.7 5.7 21.8Generalandadministrativeexpenses 7.4 6.2 5.5 6.5 25.6 7.4 6.4 6.2 6.6 26.6Taxesotherthanincometaxes 1.2 1.0 1.1 0.9 4.2 1.3 3.1 2.4 2.2 9.0Interestanddebtexpense 0.5 1.3 1.4 2.1 5.3 5.9 9.5 9.2 9.3 33.9Otherexpenses — — — 0.1 0.1 — 0.1 — — 0.1

Total costs and expenses 24.4 25.8 25.4 28.3 103.9 34.5 41.9 39.0 38.2 153.6Incomebeforeincometaxes 27.5 31.1 30.1 36.5 125.2 35.6 41.9 52.4 64.6 194.5Provisionfor(benefitfrom)incometaxes 0.3 0.2 0.1 0.2 0.8 0.2 (0.1) 0.1 0.1 0.3Net Income 27.2 30.9 30.0 36.3 124.4 35.4 42.0 52.3 64.5 194.2Less:Netincome(loss)attributabletoPredecessors 8.9 (1.2) 0.6 0.1 8.4 — — — — —

NetincomeattributabletothePartnership 18.3 32.1 29.4 36.2 116.0 35.4 42.0 52.3 64.5 194.2Less:Generalpartner’sinterestinnetincomeattributabletothePartnership 0.8 1.7 2.0 3.8 8.3 6.4 9.0 11.5 14.1 41.0

Limited partners’ interest in net incomeattributable to the Partnership 17.5 30.4 27.4 32.4 107.7 29.0 33.0 40.8 50.4 153.2

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

Commonunits 0.25 0.41 0.37 0.44 1.48 0.39 0.50 0.50 0.61 2.02Subordinatedunits—Phillips66 0.24 0.41 0.37 0.43 1.45 0.35 — — — 1.24

Average Limited Partner Units Outstanding (Thousands)

Commonunits—public 18,889 18,889 18,889 18,889 18,889 21,047 24,139 24,139 24,139 23,376Commonunits—Phillips66 17,544 19,859 19,859 20,221 19,380 21,468 41,489 57,743 57,947 44,797Subordinatedunits—Phillips66 35,217 35,217 35,217 35,217 35,217 35,217 16,254 — — 12,736

Adjusted EBITDA 23.8 37.6 35.9 43.7 141.0 49.0 57.0 73.4 87.1 266.5


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Exhibit 99.2

SELECTED OPERATING DATA PHILLIPS 66 PARTNERS LP 2014 2015 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 259 295 302 288 286 283 282 306 283 289

Refinedproducts 314 438 384 439 394 462 446 438 522 467

Total 573 733 686 727 680 745 728 744 805 756

Select Joint Venture Pipelines (2)

Naturalgasliquids — — — — — 97 285 280 280 236

Terminals


Crudeoil(3) 410 453 464 482 453 558 518 536 464 519


Total 737 910 877 901 857 989 942 977 907 954(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) Crude oil terminals include Bayway and Ferndale rail rack volumes.

Revenue Per Barrel ($/BBL)

Averagepipelinerevenue* 0.39 0.50 0.48 0.52 0.47 0.44 0.44 0.45 0.51 0.46

Averageterminalingandstoragerevenue 0.24 0.28 0.29 0.34 0.29 0.38 0.39 0.39 0.42 0.40

*Excludes average pipeline revenue per barrel from equity affiliates.

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Exhibit 99.2

SELECTED OPERATING DATA (continued) CONSOLIDATED 2014 2015 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 259 295 302 288 286 283 282 306 283 289


Total 677 733 686 727 706 745 728 744 805 756

Select Joint Venture Pipelines (2) Naturalgasliquids — — — — — 97 285 280 280 236

Terminals


Crudeoil(3) 410 453 514 532 477 558 518 536 464 519


Total 839 910 927 951 907 989 942 977 907 954(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) Crude oil terminals include Bayway and Ferndale rail rack volumes.

Revenue Per Barrel ($/BBL)

Averagepipelinerevenue* 0.51 0.50 0.48 0.52 0.50 0.44 0.44 0.45 0.51 0.46

Averageterminalingandstoragerevenue 0.27 0.28 0.29 0.34 0.30 0.38 0.39 0.39 0.42 0.40

*Excludes average pipeline revenue per barrel from equity affiliates.

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Exhibit 99.2

CAPITAL EXPENDITURES AND INVESTMENTS MillionsofDollars

2014 2015 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr* YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTDPartnership Capital Expenditures and

Investments

Expansion 1.1 0.5 0.6 52.0 54.2 31.2 63.0 38.1 65.0 197.3

Maintenance 3.5 3.4 2.2 2.8 11.9 1.7 1.5 2.2 2.3 7.7

Total Partnership 4.6 3.9 2.8 54.8 66.1 32.9 64.5 40.3 67.3 205.0

Predecessors 34.9 35.6 14.6 5.7 90.8 — — — — —

Total Consolidated 39.5 39.5 17.4 60.5 156.9 32.9 64.5 40.3 67.3 205.0* Fourth-quarter 2014 expansion capital expenditures include the acquisition costs for the Palermo Rail Terminal, Eagle Ford Gathering System and Cross-Channel Connectorprojects.

CASH DISTRIBUTIONS 2014 2015 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD

Cash Distribution Per Unit (Dollars) 0.2743 0.3017 0.3168 0.3400 1.2328 0.3700 0.4000 0.4280 0.4580 1.6560

Cash Distributions † ($ Millions)

Commonunits—public 5.2 5.7 6.0 6.4 23.3 8.9 9.7 10.3 11.1 40.0

Commonunits—Phillips66 5.4 6.0 6.3 7.1 24.8 8.4 23.0 24.8 26.7 82.9

Subordinatedunits—Phillips66 9.7 10.6 11.1 12.0 43.4 13.0 — — — 13.0

Generalpartner—Phillips66 0.8 1.6 1.9 3.6 7.9 6.4 8.8 11.1 13.6 39.9

Total 21.1 23.9 25.3 29.1 99.4 36.7 41.5 46.2 51.4 175.8

Coverage Ratio 1.10 1.44 1.32 1.28 1.29 1.14 1.15 1.40 1.44 1.30† Cash distributions declared attributable to the indicated periods.

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Exhibit 99.2

NON-GAAP FINANCIAL MEASURES RECONCILIATION CONSOLIDATED MillionsofDollars

2014 2015 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD

Reconciliation to Net Income

NetIncome 27.2 30.9 30.0 36.3 124.4 35.4 42.0 52.3 64.5 194.2

Plus:

Depreciation 3.6 3.9 4.2 4.5 16.2 5.1 5.3 5.7 5.7 21.8

Netinterestexpense 0.4 1.3 1.4 2.1 5.2 5.8 9.5 9.1 9.2 33.6

Amortizationofdeferredrentals 0.1 0.1 0.1 0.1 0.4 0.1 0.1 0.1 0.1 0.4

Provisionfor(benefitfrom)incometaxes 0.3 0.2 0.1 0.2 0.8 0.2 (0.1) 0.1 0.1 0.3

EBITDA 31.6 36.4 35.8 43.2 147.0 46.6 56.8 67.3 79.6 250.3

Distributionsinexcessofequityearnings — — — — — 0.7 0.2 4.6 6.6 12.1

ExpensesindemnifiedorprefundedbyPhillips66 0.8 — 0.7 0.1 1.6 0.3 — 1.1 0.5 1.9

Transactioncostsassociatedwithacquisitions 1.5 — 0.2 1.0 2.7 1.4 — 0.4 0.4 2.2

EBITDAattributabletoPredecessors (10.1) 1.2 (0.8) (0.6) (10.3) — — — — —

Adjusted EBITDA 23.8 37.6 35.9 43.7 141.0 49.0 57.0 73.4 87.1 266.5

Plus: Adjustmentsrelatedtominimumvolumecommitments 2.3 (0.7) 1.4 (2.4) 0.6 1.1 2.2 2.4 (1.7) 4.0

Phillips66prefundedmaintenancecapitalexpenditures 0.7 1.1 — 0.1 1.9 — — — — —

Less:

Netinterest — 0.1 1.7 1.4 3.2 6.5 9.5 9.1 9.2 34.3

Incometaxespaid(refunded) — 0.2 — — 0.2 — 0.4 — (0.1) 0.3

Maintenancecapitalexpenditures 3.5 3.4 2.2 2.8 11.9 1.7 1.5 2.2 2.3 7.7


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Exhibit 99.2

NON-GAAP FINANCIAL MEASURES RECONCILIATION (continued)

CONSOLIDATED


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

Operating ActivitiesNetcashprovidedbyoperatingactivities 24.6 34.6 35.5 47.7 142.4 31.4 65.4 46.1 86.9 229.8

Plus: Netinterestexpense 0.4 1.3 1.4 2.1 5.2 5.8 9.5 9.1 9.2 33.6Provisionfor(benefitfrom)incometaxes 0.3 0.2 0.1 0.2 0.8 0.2 (0.1) 0.1 0.1 0.3Changesinworkingcapital 6.4 0.3 (0.5) (6.5) (0.3) 4.1 (15.9) 14.6 (13.1) (10.3)Undistributedequityearnings — — — — — 5.8 (2.2) (0.9) (2.6) 0.1Accruedenvironmentalcosts — — — — — — (0.1) (0.5) (0.2) (0.8)Other (0.1) — (0.7) (0.3) (1.1) (0.7) 0.2 (1.2) (0.7) (2.4)

EBITDA 31.6 36.4 35.8 43.2 147.0 46.6 56.8 67.3 79.6 250.3Distributionsinexcessofequityearnings — — — — — 0.7 0.2 4.6 6.6 12.1

ExpensesindemnifiedorprefundedbyPhillips66 0.8 — 0.7 0.1 1.6 0.3 — 1.1 0.5 1.9

Transactioncostsassociatedwithacquisitions 1.5 — 0.2 1.0 2.7 1.4 — 0.4 0.4 2.2EBITDAattributabletoPredecessors (10.1) 1.2 (0.8) (0.6) (10.3) — — — — —Adjusted EBITDA 23.8 37.6 35.9 43.7 141.0 49.0 57.0 73.4 87.1 266.5

Plus: Adjustmentsrelatedtominimumvolumecommitments 2.3 (0.7) 1.4 (2.4) 0.6 1.1 2.2 2.4 (1.7) 4.0

Phillips66prefundedmaintenancecapitalexpenditures 0.7 1.1 — 0.1 1.9 — — — — —

Less: Netinterest — 0.1 1.7 1.4 3.2 6.5 9.5 9.1 9.2 34.3Incometaxespaid(refunded) — 0.2 — — 0.2 — 0.4 — (0.1) 0.3Maintenancecapitalexpenditures 3.5 3.4 2.2 2.8 11.9 1.7 1.5 2.2 2.3 7.7


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