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COMPANY PROFILE
We Are Helping to Shape the Energy Landscape.
2013
www.phillips66.com
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52 Reference
Phillips 66, Conoco, 76, Hydroclear, Kendall, JET, CPreme, COPYLENE, Pure Performance, PROclean, Breakplace, TropArtic, Hydroclear Power-D, Guardol QLT, GT-1 and their respective logos are trademarks of Phillips 66 Company or one of its subsidiaries. Other products and logos mentioned herein may be trademarks of their respective owners.
CONtACt INFORMAtION
Headquarters
3010 Briarpark Drive
Houston, TX 77042
281-293-6600
Registered Office
2711 Centerville Road
Wilmington, DE 19808
Phillips 66 Investor Relations
Telephone: 1-800-624-6440
Email: investorrelations@p66.com
Website: www.phillips66.com/investors
Phillips 66 Media Relations
Telephone: 1-855-841-2368
Email: mediarelations@p66.com
Website: www.phillips66.com/newsroom
An electronic file of this Profile Book can be
obtained by visiting www.phillips66.com and
selecting the Investors tab. The file is located
under the Financial Reports section of that tab.
Cover photo:
Phillips 66 Refinery located in Westlake, La.
Opening Message
Executive Leadership Team
Board of Directors
Corporate Overview
Refining
Chemicals
Midstream
Marketing andSpecialties
We help the global economy thrive – from the gasoline
drivers use to get to work, to the jet fuel that carries
travelers, to the natural gas that powers businesses and
the plastic products we use every day. We support economic
growth by investing in the manufacturing fiber of the U.S.
and providing high-quality jobs.
Our commitment to operating excellence guides everything
we do – it always will. We have 13,500 dedicated and
talented employees who share a vision for providing energy
and improving lives. We are Phillips 66, and we’ve never
been more excited about the future.
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PHILLIPS 66 COMPANY PROFILE 2013
WELCOME tO PHILLIPS 66
Phillips 66 is a growing energy manufacturing and logistics
company. As the only independent company that combines
leading Midstream, Chemicals, Refining, and Marketing and
Specialties businesses, Phillips 66 is uniquely positioned to
capture opportunities of the changing energy landscape.
2
PHILLIPS 66 COMPANY PROFILE 2013
BOARD OF DIRECtORS
John Lowe
Lowe served as assistant to the chief executive officer of ConocoPhillips, a position he held from 2008 until the spin-off of Phillips 66 in 2012. He previously held a series of executive positions with ConocoPhillips, including executive vice president, Exploration and Production, from 2007 to 2008; and executive vice president, Commercial, from 2006 to 2007. Lowe is a Special Executive Advisor to Tudor, Pickering, Holt & Co. and serves on the boards of Agrium, Inc. and Apache Corporation. (5)
J. Brian Ferguson
Ferguson retired as chairman of Eastman Chemical Company (Eastman) in 2010 and as chief executive officer of Eastman in 2009. He became the chairman and chief executive officer of Eastman in 2002. Ferguson serves as a director of NextEra Energy, Inc. (formerly FPL Group) and Owens Corning, and is a member of The University of Tennessee Board of Trustees. (2, 3, 4)
William Loomis Jr.
Loomis has been an independent financial advisor since 2009. He was a general partner and managing director of Lazard Freres & Co. from 1984 to 2002, the chief executive officer of Lazard LLC from 2000 to 2001, and a limited managing director of Lazard LLC from 2002 to 2004. He currently serves on the board of Limited Brands Inc., and is also a senior advisor to Lazard LLC and China International Capital Corporation. (1, 2, 5)
Greg Garland
Garland is chairman, president and chief executive officer of Phillips 66. Previously, he served as senior vice president, Exploration and Production, Americas for ConocoPhillips. Prior to joining ConocoPhillips, Garland was president and chief executive officer of Chevron Phillips Chemical Company (CPChem) from 2008 to 2010, having served as senior vice president, Planning and Specialty Products, CPChem, from 2000 to 2008. Garland currently serves as chairman and chief executive officer of Phillips 66 Partners LP. He is also on the board of directors of DCP Midstream. (2)
3
PHILLIPS 66 COMPANY PROFILE 2013
Harold McGraw III
McGraw is chairman, president and chief executive officer for The McGraw-Hill Companies, a position he has held since 2000. He was president and chief executive officer from 1998 until 2000, and president and chief operating officer from 1993 to 1998. He has been a member of The McGraw-Hill Companies’ board of directors since 1987. McGraw is also a director of United Technologies Corporation. (2, 3, 4)
Marna Whittington
Whittington was chief executive officer of Allianz Global Investors Capital from 2002 to 2012. She was chief operating officer of Allianz Global Investors, the parent company of Allianz Global Investors Capital, from 2001 to 2011. Prior to that, Whittington was managing director and chief operating officer of Morgan Stanley Asset Management. She was executive vice president and chief financial officer of The University of Pennsylvania from 1984 to 1992. Earlier, she served as budget director and then Secretary of Finance for the state of Delaware. She currently serves on the board of directors of Macy’s, Inc. and Oaktree Capital Group. (1, 5)
Victoria Tschinkel
Tschinkel currently serves on the executive committee of 1000 Friends of Florida and was previously its chairwoman. She served as state director of the Florida Nature Conservancy from 2003 to 2006, was the senior environmental consultant to the law firm Landers & Parsons from 1987 to 2002, and was the Secretary of the Florida Department of Environmental Regulation from 1981 to 1987. (1, 2, 5)
Glenn Tilton
Tilton currently serves as Chairman of the Midwest of JPMorgan Chase & Co. From 2002 to 2010, he served as chairman, president and chief executive officer of UAL Corporation, a holding company, and United Air Lines, Inc., an air transportation company and wholly owned subsidiary of UAL Corporation. He previously spent more than 30 years in increasingly senior roles with Texaco, Inc., including chairman and chief executive officer in 2001. He currently serves on the boards of United Continental Holdings Inc. (as non-executive chairman), Abbot Laboratories and AbbVie Inc. (3, 4)
(1) Member of the Audit and Finance Committee.
(2) Member of the Executive Committee.
(3) Member of the Human Resources and Compensation Committee.
(4) Member of the Nominating and Governance Committee.
(5) Member of the Public Policy Committee.
4
PHILLIPS 66 COMPANY PROFILE 2013
EXECUtIVE LEADERSHIP tEAM
Bob HermanSenior Vice President, Health, Safety and Environment
Herman has more than 30 years of experience in various technical and leadership roles within the oil and gas industry. Herman was vice president, HSE for ConocoPhillips. He also served ConocoPhillips as president, Refining, Marketing and Transportation for Europe. Herman currently serves on the board of directors for Chevron Phillips Chemical Company (CPChem).
Phillip BradySenior Vice President,Government Affairs
Brady has more than 30 years of experience serving in government and related positions in Washington, D.C., including in the Congress, the Department of Justice, the Department of Transportation and the White House. Before joining Phillips 66, Brady served as president of the National Automobile Dealers Association from 2001 to 2012.
Greg GarlandChairman, President and Chief Executive Officer
Garland has more than 30 years of industry experience in technical and executive leadership positions within the oil and gas and chemicalsindustries.
Tim TaylorExecutive Vice President, Commercial, Marketing, Transportation and Business Development
Taylor has more than 35 years of experience in the chemicals and oil and gas industries. Before being named to his current role, Taylor served as chief operating officer of CPChem. Taylor serves as director and president for Phillips 66 Partners and is also a director for CPChem.
Clayton ReasorSenior Vice President, Investor Relations, Strategy and Corporate Affairs
Reasor has more than 30 years of experience in the oil and gas industry. Before assuming his current role, he was vice president, Corporate and Investor Relations for ConocoPhillips. Reasor serves as director and vice president, Investor Relations, for Phillips 66 Partners LP. He is also on the board of Stage Stores Inc. (NYSE:SSI).
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PHILLIPS 66 COMPANY PROFILE 2013
Larry ZiembaExecutive Vice President, Refining, Projects and Procurement
Ziemba has more than 35 years of experience in the oil and gas industry. Before assuming his current role, Ziemba served ConocoPhillips as president, Global Refining, a role he took on after serving as president, U.S. Refining, since 2003.
Paula JohnsonExecutive Vice President, Legal, General Counsel and Corporate Secretary
Johnson has 25 years of legal experience. Before assuming her current role, Johnson was deputy general counsel, Corporate, and chief compliance officer for ConocoPhillips. Prior roles with ConocoPhillips included managing counsel for litigation and claims from 2006 to 2009. Johnson is also vice president, general counsel and secretary for Phillips 66 Partners.
Chantal VeevaeteSenior Vice President, Human Resources
Veevaete has more than 30 years of experience in human resources roles, spending much of her time in the chemicals and oil and gas industries. Prior to her current role, Veevaete served as vice president, Human Resources, for CPChem and as vice president, Human Resources, for the Accredo division of Medco Health Solutions.
Greg MaxwellExecutive Vice President, Finance and Chief Financial Officer
Maxwell has 35 years of experience in various financial roles within the chemicals and oil and gas industries. Prior to his current role, Maxwell served as senior vice president, chief financial officer and controller for CPChem. Maxwell serves as director, vice president and chief financial officer for Phillips 66 Partners. He is also a director for DCP Midstream.
Merl LindstromVice President, Technology
Lindstrom has more than 35 years of experience in research and development roles focusing on the downstream business. Before assuming his current role, Lindstrom was senior vice president, Technology, for ConocoPhillips. He served as a manager in a number of technological and research and development roles with ConocoPhillips.
CORPORAtE OVERVIEW
6
Built on more than 130 years of experience, Phillips 66 is a growing energy manufacturing and logistics company with high-performing Midstream, Chemicals, Refining, and Marketing and Specialties businesses. this diverse portfolio enables Phillips 66 to capture opportunities in a changing energy landscape. Headquartered in Houston, the company has 13,500 employees who are committed to operating excellence and safety.
PHILLIPS 66 COMPANY PROFILE 2013
Billion dollars in assets as of June 30, 2013
50
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PHILLIPS 66 COMPANY PROFILE 2013
Storage tanks being checked at the Los Angeles Refinery to ensure safety compliance. Safety is at the forefront of everything we do.
Rank on the Fortune 500 List
4
8
PHILLIPS 66 COMPANY PROFILE 2013
• Continued focus on safety, with the company’s lowest recordable
rate ever and additional sites awarded Voluntary Protection Program
(VPP) certification by the U.S. Occupational Safety and Health
Administration (OSHA).
• Obtained investment grade credit rating and further strengthened
balance sheet by retiring $1 billion of long-term debt.
• Began to pursue a master limited partnership, Phillips 66 Partners
LP, to facilitate growth in the Midstream and Transportation sectors.
• Acquired direct one-third interests in the Sand Hills and Southern
Hills natural gas liquids (NGL) pipeline entities, which will deliver
product from the midcontinent, Permian Basin and Eagle Ford to
market hubs in Mont Belvieu.
• DCP Midstream initiated service on the Sand Hills Pipeline from the
Eagle Ford Shale.
• CPChem advanced plans to build a world-scale ethane cracker
and polyethylene facilities.
• CPChem announced and began construction of a world-scale
1-hexene plant at its Cedar Bayou chemical complex in Baytown,
Texas, with anticipated startup in 2014.
• Improved return on capital employed (ROCE) in Refining by
capturing favorable market conditions, as well as increasing the
use of cost-advantaged crude oil.
• Improved clean product yield, with continued industry-leading
distillate yield.
• Achieved strong performance in Marketing and Specialties
businesses, including record earnings from lubricants and flow
improvers.
COMBINED TOTAL RECORDABLE RATE2
Safety incidents per 200,000 hours worked
10 12 1H13110
1
2
3
4
5
6
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0
5
10
15
20
25
5.4
10 1211
0.2
10.2
7
1H13
0.2
10.2
8
10 1211
22
14
1H13
17
7
3.6
2.3
1.8
Adjusted Earnings
Total Recordable Injury Rate
Return on Capital Employed
10 12 1H13110
1
2
3
4
5
6
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0
5
10
15
20
25
5.4
10 1211
0.2
10.2
7
1H13
0.2
10.2
8
10 1211
22
14
1H13
17
7
3.6
2.3
1.8
Adjusted Earnings
Total Recordable Injury Rate
Return on Capital Employed
RETURN ON CAPITAL EMPLOYED (ROCE)1 Percent
11H 2013 ROCE is annualized.2Does not include DCP Midstream or Chevron Phillips Chemical Company (CPChem).
2012 ACCOMPLISHMENtS
CORPORAtE OVERVIEWFINANCIAL PERFORMANCE ($ MILLION) 1H 2013 2012 2011 2010
Sales and other operating revenues 84,503 179,460 196,088 146,561
total assets 49,929 48,073 43,211 44,955
Capital expenditures and investments 758 1,721 1,022 1,150
Adjusted earnings 2,316 5,387 3,591 1,759
Adjusted earnings – Midstream 173 362 535 386
Adjusted earnings – Chemicals 463 980 716 486
Adjusted earnings – Refining 1,390 3,844 1,982 622
Adjusted earnings – Marketing and Specialties 511 564 550 424
10 12 1H13110
1
2
3
4
5
6
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0
5
10
15
20
25
5.4
10 1211
0.2
10.2
7
1H13
0.2
10.2
8
10 1211
22
14
1H13
17
7
3.6
2.3
1.8
Adjusted Earnings
Total Recordable Injury Rate
Return on Capital Employed
ADJUSTED EARNINGS$ billion
9
PHILLIPS 66 COMPANY PROFILE 2013
StRAtEGIC PRIORItIES
Maintain Strong Operating Excellence
Our commitment to operating excellence guides everything we do – it
always will. Continuous improvement in safety, environmental stew-
ardship and cost efficiency is a fundamental requirement for our
company and employees. We employ rigorous training and audit pro-
grams to drive ongoing improvement in both personal and process
safety as we strive for zero incidents. We are committed to protect-
ing the environment and continually seek to reduce our environmen-
tal footprint throughout our operations.
Deliver Profitable Growth
Manufacturing and logistics capacity expansions in Chemicals and
Midstream have the potential to deliver significant growth in earnings
and free cash flow. Over the next few years, our Chemicals joint ven-
ture, CPChem, plans to reinvest the majority of its net income to
build additional processing capacity that benefits from lower-cost
NGL feedstocks. The need for additional new gathering and process-
ing, pipeline, storage and distribution infrastructure – driven by
growing domestic unconventional crude oil, NGL and natural gas
production – is creating capital investment opportunities in our
Midstream business.
Enhance Returns on Capital
We intend to increase ROCE and capital efficiency through greater
use of advantaged feedstocks, a disciplined capital allocation pro-
cess and portfolio optimization. By processing lower-cost crude oil
and NGL feedstocks, we have improved our gross margins and
returns on capital in Refining and Chemicals. We also expect to
drive higher returns by selling finished products to higher-margin
export markets. A disciplined and rigorous capital allocation pro-
cess ensures that we focus investments into projects that generate
competitive ROCE throughout the business cycle. We anticipate our
portfolio to shift to higher growth and returns businesses as we
redirect capital to our Chemicals, Midstream, and Marketing and
Specialties segments and reduce Refining exposure in regions that
generate below-average returns.
Grow Shareholder Distributions
We believe shareholder value is created through consistent and ongo-
ing growth of regular dividends, supplemented by share repurchases.
Regular dividends demonstrate the confidence our management has
in the company’s capital structure and its capability to generate free
cash flow throughout the business cycle. At the discretion of our
board of directors, we plan to increase dividends annually and fund a
share repurchase program while continuing to invest in the growth of
our business.
Build a High-performing Organization
Our success is primarily attributed to the contributions of our tal-
ented global workforce. We provide a great place to work where em-
ployees can reach their fullest potential, thrive on delivering
results and create shareholder value through individual, team and
organization success. We foster an achievement-based culture that
drives accountability and meritocracy while investing in learning and
development.
13,500Dedicated, talented employees worldwide
COMPEtItIVE StRENGtHS
Robust Portfolio
As the only independent company that combines leading
Midstream, Chemicals, Refining, and Marketing and Specialties
businesses, Phillips 66 is uniquely positioned to capture
opportunities of the changing energy landscape. Our businesses
have the efficiency of scale and technical capability to compete in
the most attractive markets globally.
Financial Strength and Flexibility
We hold an investment grade credit rating on our long-term debt
and maintain sufficient cash and liquidity to enable us to invest in
high-return projects. Our approach to capital allocation is designed
to fund sustainability investments and growth projects, while
increasing shareholder distributions and strengthening our
balance sheet. We expect this approach to enable the company to
remain financially flexible throughout the business cycle.
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PHILLIPS 66 COMPANY PROFILE 2013
To be successful, it is essential to maintain a safe workplace. We
have a good track record of improving safety, and we are among
the industry’s leaders. Our Health, Safety and Environment (HSE)
Management System focuses on a cycle of continuous improvement
in the areas of health and safety, process safety, environmental and
security systems. Our systematic approach requires every operating
business group to review its HSE performance and evaluate system
effectiveness to determine what enhancements may be required.
HSE goals and objectives are established annually by each of our
businesses, and performance against these targets is a component
in our employee compensation programs.
After 10 years of annual improvement, we continued to better our
safety performance in 2012, finishing with a combined employee
and contractor total recordable rate of
0.21 – our best year ever – bringing us
closer to our goal of zero.
Over the past decade, we have
significantly decreased criteria
pollutant emissions. In 2012,
we implemented environmental
improvement projects at the Alliance
Refinery in Louisiana, Wood River
Refinery in Illinois and Borger Refinery
in Texas, to reduce flaring and SO2
emissions.
In 2012, our total hydrocarbon spill volume
was 1,309 barrels, a significant decrease
from 2,462 barrels in 2011. During 2012,
the company experienced 14 process
safety events, down from 23 in 2011.
We focus on ensuring equipment
integrity, maximizing reliability and making
operational improvements that increase
yields of high-valued, cleaner-burning fuels.
Managing utilities and energy costs is
also critical to our profitability. We have
lowered these costs through optimized unit
operations and by implementing findings
from energy efficiency studies. Additionally, we continue to improve
refinery utilization rates, resulting in lower per-unit costs.
Operating excellence does not end at the company’s fence lines.
We believe in being involved in the communities where we operate.
All of our U.S. refineries have Citizens Advisory Panels to foster and
strengthen our relationships with neighbors. These panels include
community representatives
and refinery management
team members, who meet
on a regular basis to
discuss refinery plans and
gather feedback about our
performance.
While prevention is always
the first defense, we are
prepared and capable of
responding effectively if an
incident occurs. As part of
our preparedness, we have
developed an extensive Crisis Management/Emergency Response
Management Plan. We exercise these plans regularly with federal,
state and local agencies, along with mutual aid organizations, to
enhance our response capabilities.
Protecting our people, our environment and our communities guides
everything we do, and it always will.
OPERAtING EXCELLENCE
U.S. REFINING EMISSIONS*(in Lb/MBbl)
02 03 04 05 06 07 08 09 10 11 12
240
180
120
60
0
*Includes criteria pollutant emissions (SOx, NOx and particulate matter).
Excludes the Trainer and Wilhelmshaven re�neries.
U.S. REFINING EMISSIONS*Lb/MBbl
10 1211 1H13
12
.6
2.5
1.4
0.2
TOTAL VOLUME OF HYDROCARBON SPILLSMBbls
Protecting our people, our environment and our communities guides everything we do, and it always will.
COMBINED TOTALRECORDABLE RATE Safety incidents per 200,000 hours worked
Excludes DCP Midstream and CPChem.
0203040506070809101112
*Includes criteria pollutant emissions (SOx, NOx and
Excludes the Trainer and Wilhelmshaven re�neries.
10 1211
0.2
8
0.2
7
0.2
1
1H13
0.2
1
At Phillips 66, we believe our greatest asset is the capability of our
people. The expertise, skills and experience of our employees around
the world offer Phillips 66 a distinct competitive advantage. We strive
to provide our employees with a great place to work – an engaging
environment that encourages learning and collaboration, as well as
opportunities to develop their careers.
GREAt PLACE tO WORk
We promote a culture of candor, trust and inclusion that attracts,
develops and retains a high-caliber workforce. We believe that solving
complex issues and creating innovative solutions for our industries’
challenges requires diverse perspectives. We value diversity of
thought, inclusion, varied backgrounds and global experiences, which
collectively help Phillips 66 succeed.
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PHILLIPS 66 COMPANY PROFILE 2013
tALENt ENGAGEMENt AND LEADERSHIP COMMItMENt
Our highly experienced leaders benefit from diverse backgrounds and
numerous developmental roles in a variety of businesses. We ensure
that managers and supervisors are focused on the organizational
capability and talent development of their teams. Comprehensive
supervisory and leadership programs foster a positive work
environment and engaging workforce. We place a strong emphasis
on learning, performance management and succession planning to
accelerate targeted talent development, ensure the sustainability of
our business and enable us to execute our business strategy.
StRAtEGIC WORkFORCE PLANNING AND tALENt ACQUISItION
We attract qualified and diverse talent through our strong
partnerships with distinguished colleges and universities, leveraged
outreach programs, robust recruiting model and broad technology
solutions.
HIGH-PERFORMING ORGANIZAtION
Employees at Phillips 66’s headquarters in Houston, Texas.
Plant technicians at the Humber Refinery located in North Lincolnshire, United Kingdom.
A LEARNING CULtURE
We are building a culture that encourages employees to continually
learn and apply new skills. Learning opportunities include a broad
range of training activities, work experiences, networking events
and professional feedback. We are establishing robust career
development programs that ensure employees at all levels remain
fully engaged and successful in their current roles, while supporting
them to reach their fullest potential. Dedicated talent management
teams evaluate employees’ skills and development needs to identify
assignments that will leverage existing strengths and develop new
capabilities.
Transportation employee at an Oklahoma pipeline.
12
PHILLIPS 66 COMPANY PROFILE 2013
From the laboratory to pilot plants, Phillips 66’s in-house research
and development drives new ideas to commercialization. The
Technology organization at Phillips 66 employs more than 250
dedicated researchers and technicians who work on solving today’s
energy challenges and developing energy solutions for the future.
Science and engineering inspiration from our company researchers
generates avenues for future growth and provides cost-reducing
processes for existing businesses. The company conducts ongoing
research designed to improve the production of conventional fuels.
Recently, the organization developed a technology to prevent fouling,
or unwanted material buildup in refinery processing equipment.
Fouling reduces energy efficiency and throughput capacity, and often
PHILLIPS 66 tECHNOLOGY
leads to early shutdowns, particularly in coker furnaces. The
new tools enable the use of more paraffinic light crude oil that
otherwise could destabilize the crude mixture. It also results
in a significant cost savings. The development comes at an
opportune time, as the company processes more cost-
advantaged light crudes.
Additionally, Phillips 66 is involved in research to develop
clean energy technologies – fuel cells and solar cells – and is
exploring the conversion of biomass to conventional fuel
molecules in pursuit of next generation biofuels.
ROCE1H 2013 Annualized
11%Midstream
ROCE1H 2013 Annualized
25%Chemicals
Our Midstream segment transports crude oil, refined products, natural gas and NGL. It also gathers and processes natural gas and NGL to power businesses, heat homes and provide feedstock to the petrochemical industry. The segment consists of Phillips 66’s Transportation business, including operations of Phillips 66 Partners LP, our master limited partnership formed in July 2013; DCP Midstream, our 50/50 joint venture with Spectra Energy Corp.; and NGL Operations.
Through CPChem, we manufacture petrochemicals, polymers and plastics found in cars, electronics and other everyday goods. CPChem is North America’s largest producer of high-density polyethylene and the fourth-largest North American ethylene producer. CPChem has a large global presence with 36 manufacturing sites and 34 billion pounds of net annual processing capacity.
BUSINESS OVERVIEW
13
PHILLIPS 66 COMPANY PROFILE 2013
Our Commercial organization manages the company’s worldwide
commodity portfolio. It partners with our Refining business to optimize
our assets by procuring feedstocks with the highest economic value,
minimizing laid-in cost and managing system inventory. The
Commercial organization also partners with the Marketing business to
ensure dependable supply while managing terminaling, throughput,
exchange and other commercial agreements. This frees up Refining,
and Marketing and Specialties organizations to focus on operational
performance. Commercial also identifies and executes location, time
and quality arbitrage opportunities that generate attractive incremental
returns. It conducts supply and trading operations in support of our
Midstream assets and refineries in order to manage NGL volume
requirements, and it also actively trades NGL at the main U.S. hubs.
In 2012, the Commercial organization was instrumental in sourcing
lower-cost crude feedstocks for Phillips 66’s U.S. refineries. Commercial
negotiated several third-party agreements to source and deliver more
advantaged crudes to the company’s facilities. As of Dec. 31, 2012,
Commercial utilized 12 chartered, double-hulled crude oil tankers
with capacities ranging in size from 713,000 to 2,100,000 barrels.
The vessels are primarily used to transport feedstocks to certain of
Phillips 66’s U.S. refineries. Additionally in 2012, we entered into time
charters on two Jones Act tankers to deliver shale crude to our Gulf and
East Coast refineries.
PHILLIPS 66 COMMERCIAL
ROCE1H 2013 Annualized
19% 29%Refining
ROCE1H 2013 Annualized
Marketing and SpecialtiesThe Marketing and Specialties segment includes our global fuel marketing activities, as well as lubricants and flow improver businesses. Phillips 66’s U.S. Marketing business markets fuels under the brands Phillips 66®, Conoco®and 76®. In Europe, we sell primarily under the JET®brand in the UK, Austria and Germany, and the Coop® brand in Switzerland. The company also markets lubricants in more than 70 countries, and has several other Specialty businesses, including petroleum coke, waxes, solvents, polypropylene and pipeline flow improvers.
Our Refining segment transforms crude oil into products such as gasoline, diesel and jet fuel. Phillips 66 is one of the largest refiners in the U.S. and worldwide, with 15 refineries and net crude oil processing capacity of 2.2 million barrels per day.
PHILLIPS 66MIDStREAM
402
14
Phillips 66’s Midstream segment consists of Phillips 66’s
transportation business, including operations of Phillips 66
Partners LP, our master limited partnership formed in July
2013; DCP Midstream, our 50/50 joint venture with
Spectra Energy Corp.; and NGL Operations.
PHILLIPS 66 COMPANY PROFILE 2013
thousand barrels per day of natural gas liquids (NGL) production by DCP Midstream in 2012
15
PHILLIPS 66 COMPANY PROFILE 2013
Gulf Coast Fractionators in Mont Belvieu, Texas, recently expanded its total nameplate capacity to 145,000 barrels per day.
16
PHILLIPS 66 COMPANY PROFILE 2013
• Received Star status under OSHA’s Voluntary Protection Program
(VPP) at several Phillips 66 Transportation sites.
• Earned the American Petroleum Institute’s Safety Performance Award
in Phillips 66 Pipeline LLC for achieving the lowest OSHA recordable
rates among its peer group.
• Contracted for 2,000 railcars that will be used to ship Bakken crude
oil west to our Ferndale Refinery in Washington and east to our
Bayway Refinery in New Jersey.
• Acquired direct one-third interests in the Sand Hills and Southern
Hills NGL pipeline entities, which will deliver product from the
midcontinent, Permian Basin and Eagle Ford to market hubs in Mont
Belvieu. In 2012, DCP Midstream initiated service on the Sand Hills
Pipeline from the Eagle Ford Shale.
• DCP Midstream began construction on the Rawhide Plant in the
West Texas region of the Permian Basin, with a planned capacity
of 75 million cubic feet per day and an anticipated in-service date
of third quarter of 2013.
• DCP Midstream acquired a one-third interest in the Front Range
Pipeline, which will originate from the Denver-Julesburg Basin in
Colorado and extend approximately 435 miles to Skellytown,
Texas. Planned capacity is 150,000 barrels per day, expandable
to 230,000 barrels per day, and anticipated in-service date is
fourth quarter of 2013.
• Completed expansion of Gulf Coast Fractionators, increasing the
total nameplate capacity of the fractionation facility to 145,000
barrels per day.
2012 ACCOMPLISHMENtS
OPERAtING HIGHLIGHtS 2012 2011 2010
PHILLIPS 66 tRANSPORtAtION
Approximate miles of pipeline 18,000 17,000 24,000
Railcars managed1 8,500 8,500 9,000
Crude terminals 10 5 5
Product terminals 39 42 44
Combined total recordable rate (safety incidents per 200,000 hours) 0.18 0.12 0.23
DCP MIDStREAM (100%)
total natural gas throughput (tBtUD) 7.1 7.0 6.9
Number of processing plants 62 61 61
Number of NGL fractionators 12 12 10
Natural gas storage capacity (BCF) 9 9 9
Approximate miles of pipeline 63,000 62,000 61,000
Combined total recordable rate (safety incidents per 200,000 hours) 0.92 1.16 1.12
NGL OPERAtIONS
NGL fractionated (MBD) 105 112 120
MIDStREAM OVERVIEW
1Includes CPChem railcars that Phillips 66 manages. 3Represents sum of volumes transported through terminals and each separately tariffed pipeline segment.21H 2013 ROCE is annualized. 4Represents 100 percent of DCP Midstream.
MIDSTREAM ADJUSTED EARNINGS $ million
TRANSPORTATION VOLUMES3 MBD
DCP MIDSTREAM NGL PRODUCED4 MBD
10 12110
100
200
300
400
500
600
0
50
100
150
200
250
300
350
400
450
0
100
200
300
400
500
362
10 1211
4,0
67
4,2
39
4,1
54
1H13
4,2
40
10 1211
402
383
1H13
404
369
386
535
1H13
173
Midstream Adjusted Earnings
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Tansportation Vol
DCP Midstream NGL
0
5
10
15
20
10 1211
12
17
1H13
1112
10 1211
$362
10 1211
to c
ome
to c
ome to
com
e
10 1211
402
383
369
$386
$535
10 1211
12
17
12
Return on Cap Employed
10 12110
100
200
300
400
500
600
0
50
100
150
200
250
300
350
400
450
0
100
200
300
400
500
36
2
10 1211
4,0
67
4,2
39
4,1
54
1H13
4,2
40
10 1211
40
2
38
3
1H13
40
4
36
93
86
53
5
1H13
17
3
Midstream Adjusted Earnings
This row if placed on darkbackground color
This row if placed on Lightbackground color
Tansportation Vol
DCP Midstream NGL
0
5
10
15
20
10 1211
12
17
1H13
1112
10 1211
$3
62
10 1211
to c
ome
to c
ome to
com
e
10 1211
40
2
38
3
36
9$3
86
$5
35
10 1211
12
17
12
Return on Cap Employed
10 12110
100
200
300
400
500
600
0
50
100
150
200
250
300
350
400
450
0
100
200
300
400
500
36
2
10 1211
4,0
67
4,2
39
4,1
54
1H13
4,2
40
10 1211
402
383
1H13
404
369
38
6
53
5
1H13
17
3
Midstream Adjusted Earnings
This row if placed on darkbackground color
This row if placed on Lightbackground color
Tansportation Vol
DCP Midstream NGL
0
5
10
15
20
10 1211
12
17
1H13
1112
10 1211
$3
62
10 1211
to c
ome
to c
ome to
com
e
10 1211
402
383
369
$3
86
$5
35
10 1211
12
17
12
Return on Cap Employed
RETURN ON CAPITAL EMPLOYED2 Percent
10 12110
100
200
300
400
500
600
0
50
100
150
200
250
300
350
400
450
0
100
200
300
400
500
362
10 1211
4,0
67
4,2
39
4,1
54
1H13
4,2
40
10 1211
40
2
38
3
1H134
04
36
93
86
535
1H13
17
3
Midstream Adjusted Earnings
This row if placed on darkbackground color
This row if placed on Lightbackground color
Tansportation Vol
DCP Midstream NGL
0
5
10
15
20
10 1211
12
17
1H13
1112
10 1211
$3
62
10 1211
to c
ome
to c
ome to
com
e
10 1211
40
2
38
3
36
9$3
86
$535
10 121112
17
12
Return on Cap Employed
17
PHILLIPS 66 COMPANY PROFILE 2013
MIDSTREAM AS OF DEC. 31, 2012
MILES
0 300
ATLANTIC OCEAN
GULF OF MEXICO
PACIFIC OCEAN
FRACTIONATORNGL OPERATIONS ASSET
STORAGE
GAS PLANTPIPELINE
TRANSPORTATION ASSET
DCP MIDSTREAM ASSET
Phillips 66’s East St. Louis Terminal in Cahokia, Ill.
18
PHILLIPS 66 COMPANY PROFILE 2013
Phillips 66 owns or leases various assets to provide strategic, timely
and environmentally safe delivery of crude oil, refined products,
natural gas and NGL. These assets include pipeline systems;
product, crude oil, marine and liquefied petroleum gas (LPG)
terminals; a petroleum coke handling facility; and a fleet of railcars.
PIPELINES AND tERMINALS
As of Dec. 31, 2012, Phillips 66 managed approximately 18,000
miles of crude oil, raw NGL, natural gas and petroleum products
pipeline systems in the United States, including those partially
owned or operated by affiliates. In addition, the company owned or
operated 39 finished-product terminals, five LPG terminals, 10 crude
oil terminals and one petroleum coke exporting facility.
Phillips 66 also owns a 25 percent interest in the Rockies Express
(REX) natural gas pipeline. REX runs 1,679 miles from Meeker, Colo.,
to Clarington, Ohio.
In June 2012, we sold terminal and pipeline assets associated
with the Trainer Refinery, and in November 2012, we sold the
Riverhead Terminal.
tRUCk AND RAIL
Phillips 66 manages truck and rail operations on behalf of its U.S.
refinery and specialty operations. Rail movements are provided
via a diverse fleet of more than 8,500 owned and leased railcars.
In October 2012,
we entered into an
operating lease covering
2,000 new railcars
under construction. As
of June 2013, we have
taken delivery of 650
of these cars, and the
remaining railcars are
expected to be delivered
in batches throughout
2013 and 2014. This
is an expansion of our
existing rail business
and will allow delivery of
more advantaged crude
to our refineries on the
East and West Coasts.
Truck movements are provided through approximately 150 third-party
trucking companies. A joint venture, Sentinel Transportation, LLC,
provides dedicated and specialized trucking services for Phillips 66.
PHILLIPS 66tRANSPORtAtION
Phillips 66 truck rack at its terminal in Portland, Ore.
Phillips 66 Pipeline Control Center in Bartlesville, Okla.
The first car of Phillips 66’s recent 2,000 railcar order.
19
PHILLIPS 66 COMPANY PROFILE 2013
MAJOR PIPELINE SYStEMS
CRUDE AND FEEDStOCkS
Coast and Valley System Central CA/Bay Area, CA 100 8”-12” 702 307
Clifton Ridge Westlake, Equillon, Pecan Grove, LA 100 20” 10 270
Cushing Cushing, OK/Ponca City, OK 100 18” 62 130
WA Line Odessa, TX/Borger, TX 100 12”, 14” 300 118
Oklahoma Mainline/CPL Wichita Falls, TX/Ponca City, OK 100 12” 217 100
Line O Cushing, OK/Borger, TX 100 10” 276 37
Line 80 Gaines, TX/Borger, TX 100 8”, 12” 237 33
Glacier Cut Bank, MT/Billings, MT 79 8”-12” 865 100
PEtROLEUM PRODUCtS
Sweeny to Pasadena Sweeny, TX/Pasadena, TX 100 12”, 18” 120 264
Gold Line Borger, TX/St. Louis, IL 100 8”-16” 681 120
Standish Marland Junction, OK/Wichita, KS 100 18” 100 80
Borger to Amarillo Borger, TX/Amarillo, TX 100 8”, 10” 93 76
Wood River Ponca City, OK/Mt. Vernon, MO 100 10”, 12” 250 45
Cherokee 8” Ponca City, OK/Wichita Falls, TX 100 8” 215 46
Wichita/Ark City 1&2 Ponca City, OK/Wichita, KS 100 8”, 10” 105 55
Seminoe Billings, MT/Sinclair, WY 100 6”-10” 342 33
Borger-Denver McKee, TX/Denver, CO 70 6”-12” 405 38
Pioneer Sinclair, WY/Salt Lake City, UT 50 8”, 12” 562 63
ATA Line Amarillo, TX/Albuquerque, NM 50 6”, 10” 293 20
Heartland McPherson, KS/Des Moines, IA 50 8”, 6” 49 30
Yellowstone Billings, MT/Spokane, WA 46 6”-10” 710 66
Harbor Woodbury, NJ/Linden, NJ 33 16” 80 104
SAAL Amarillo, TX/Amarillo and Lubbock, TX 33 6” 121 18
Explorer Texas Gulf Coast/Chicago, IL 14 24”, 28” 1,835 500
NGL
Line EZ Rankin, TX/Sweeny, TX 1001 10” 434 101
Blue Line Borger, TX/St. Louis, IL 100 8”-12” 666 29
Chisholm Kingfisher, OK/Conway, KS 50 8”-10” 202 42
Powder River Douglas, WY/Borger, TX 100 6”-8” 695 19
Skelly-Belvieu Skellytown, TX/Mont Belvieu, TX 50 8” 571 29
Sand Hills2 Permian Basin/Mont Belvieu, TX 33 20” 720 200
Southern Hills2 U.S. Midcontinent/Mont Belvieu, TX 33 20” 800 175
LPG
Medford PBC Ponca City, OK/Medford, OK 100 4”-12” 42 60
Conway to Wichita Conway, KS/Wichita, KS 100 12” 55 38
NAtURAL GAS
Rockies Express Meeker, CO/Clarington, OH 25 36”-42” 1,679 1.8 BCFD
1 100 percent interest held by CPChem. Operated by Phillips 66.2 Phillips 66 has a direct one-third ownership in the pipeline entities; operated by DCP Midstream; reflects expected capacity; reported within NGL operations.
NAME ORIGINAtION/tERMINUS INtERESt (PERCENt) SIZE MILES CAPACItY (MBD)
as of Dec. 31, 2012
20
PHILLIPS 66 COMPANY PROFILE 2013
FINISHEDPRODUCt tERMINALS
Albuquerque
Amarillo
Billings
Bozeman
Colton
Denver
Des Moines
East St. Louis
Glenpool
Great Falls
Hartford
Helena
Jefferson City
Kansas City
La Junta
Lincoln
Linden
Los Angeles
Lubbock
Missoula
Moses Lake
Mount Vernon
North Salt Lake
Oklahoma City
Pasadena
Ponca City
Portland
Renton
Richmond
Rock Springs
Sacramento
Sheridan
Spokane
Tacoma
Tremley Point
Westlake
Wichita Falls
Wichita North
Wichita South
New Mexico
Texas
Montana
Montana
California
Colorado
Iowa
Illinois
Oklahoma
Montana
Illinois
Montana
Missouri
Kansas
Colorado
Nebraska
New Jersey
California
Texas
Montana
Washington
Missouri
Utah
Oklahoma
Texas
Oklahoma
Oregon
Washington
California
Wyoming
California
Wyoming
Washington
Washington
New Jersey
Louisiana
Texas
Kansas
Kansas
244
277
88
113
211
310
206
2,245
366
157
1,075
178
110
1,294
101
219
429
113
179
348
186
363
657
341
3,210
51
671
228
332
125
141
86
351
307
1,688
128
303
679
216
18
26
16
13
21
36
15
78
17
12
17
10
16
66
10
21
121
75
17
29
10
46
41
48
65
23
33
20
28
19
13
15
24
17
39
16
15
12
21
FACILItY NAME LOCAtION StORAGE CAPACItY RACk CAPACItY (MBBLS) (MBD)
as of Dec. 31, 2012
21
PHILLIPS 66 COMPANY PROFILE 2013
Consistent with Phillips 66’s strategy to grow its Midstream busi-
ness, in December 2012 we announced plans to form a master
limited partnership (MLP) with a portion of our Transportation assets.
We believe a Phillips 66 MLP will provide value to Phillips 66 share-
holders, highlight the value of our logistics and infrastructure assets,
and be an integral vehicle to support growth in transportation and
midstream infrastructure.
Phillips 66 formed Phillips 66 Partners LP to own, operate, develop
and acquire primarily fee-based crude oil, refined petroleum product,
and natural gas liquids pipelines and terminals, and other transporta-
tion and midstream assets. Headquartered in Houston, Phillips 66
Partners’ assets include the Clifton Ridge crude oil pipeline, terminal
and storage system in Louisiana; the Sweeny to Pasadena refined
petroleum product pipeline, terminal and storage system in Texas;
and the Hartford Connector refined petroleum product pipeline, termi-
nal and storage system in Illinois.
Phillips 66 has majority ownership of Phillips 66 Partners and acts
as the general partner with full management and operating responsi-
bility for the business. The remaining minority or non-controlling inter-
est, consisting of limited partner units, was sold in an initial public
offering in July 2013. Common units of Phillips 66 Partners trade on
the New York Stock Exchange under the ticker symbol PSXP.
PHILLIPS 66PARtNERS
TX
LA
IL
WOODRIVER
LAKECHARLES
HOUSTON
SWEENY
SWEENY
PASADENA
SWEENY TO PASADENA PIPELINES12" AND 18" PIPELINES
TX
SWEENY TO PASADENAPRODUCTS SYSTEM
IL
LAKECHARLES
PECAN GROVECLIFTON RIDGE
CLIFTON RIDGETO LAKE CHARLESPIPELINE
SHELL TOCLIFTON RIDGEPIPELINE
TX
LAPECAN GROVETO CLIFTON RIDGEPIPELINE
CALC
ASIE
U RI
VER
CLIFTON RIDGECRUDE SYSTEM
MO
IL
MISSISSIPPI RIVER
HARTFORD
WOODRIVER
WOOD RIVERTO HARTFORD
PIPELINE
HARTFORD TOEXPLORERPIPELINE
HARTFORD CONNECTORPRODUCTS SYSTEM
HOUSTON
GULF OF MEXICO
HEADQUARTERS
PRODUCT TERMINAL
CRUDE TERMINAL
PRODUCT PIPELINE
CRUDE PIPELINE
BARGE DOCK
SHIP DOCK
PHILLIPS 66OPERATED REFINERY
PHILLIPS 66 PARTNERS ASSETS
22
PHILLIPS 66 COMPANY PROFILE 2013
Plant 10LaSalle
SOUTHERN HILLS
SAND HILLS
FRONT RANGE
WATTENBERG
TEXASEXPRESS
BLACKLAKE
SEABREEZE/WILBREEZE
Lucerne 2Mewbourn
Conway
Mont Belvieu
Wolfberry
Avalon/Bone Springs
RawhideMidway
GoliadEagle
National Helium
WATTENBERG
BLACKLAKE
SEABREEZE/WILBREEZE
Conway
Mont Belvieu
Wolfberry
National Helium
Avalon/Bone Springs
2015Executingon $6B of growth
capital expenditureopportunities
between2013-2015
~$11B Assets $15B+
62 # of plants 70+
6.2 Processing volume ~7.0 (TBTUD)
~400 NGL production 500+ (MBD)
~1,300 NGL pipelines (mi) ~3,000
2012 data as of Dec. 31, 2012
2012
Top tier gathererand processor
Emerging leader in midstreamlogistics services
GAS PLANTNEW GAS PLANTGAS PLANT EXPANSION/RESTARTFRACTIONATOR
NGL PIPELINESGAS PIPELINES
DCP MIDStREAMDCP Midstream, LLC is equally owned by Phillips 66 and Spectra
Energy. Headquartered in Denver, Colo., DCP Midstream leads
the midstream industry as one of the nation’s largest natural gas
gatherers and processors, and one of the largest producers and
marketers of NGL in the United States. Operations include gathering
and transporting raw natural gas through approximately 63,000 miles
of pipeline. The collected gas is processed at 62 owned or operated
plants and treaters. Additionally, DCP Midstream owns or operates
12 fractionators.
In 2005, DCP Midstream created a master limited partnership, DCP
Midstream Partners, LP, of which a wholly owned subsidiary of DCP
Midstream acts as general partner. DCP Midstream Partners, LP
gathers, compresses, treats, processes, transports, stores and sells
natural gas. It also produces, fractionates, transports, stores and
sells NGL and condensate. DCP Midstream Partners, LP is also a
leading distributor of propane. The partnership’s units trade on the
New York Stock Exchange under the ticker symbol DPM.
kEY PROJECtS
DCP Midstream is a large integrated service provider with
strategically located assets in liquids-rich developments. Growing
industry demand continues to drive infrastructure needs and
attractive expansion opportunities. DCP Midstream expects to
execute on approximately $6 billion in growth projects from
2013 to 2015.
SOUtHERN HILLS PIPELINE
The 800-mile Southern Hills Pipeline provides improved market
access for growing midcontinent NGL production. Extensions lead
to Mont Belvieu, Texas, facilities and various receipt points in the
midcontinent. The
pipeline started up
in the first quarter
of 2013. Phillips 66
and Spectra Energy
each acquired a one-
third interest in the
entity that owns the
pipeline in November
2012. The regulated,
common-carrier
pipeline will ramp up
to a capacity of 175,000 barrels per day after completion of planned
pump stations.
SAND HILLS PIPELINE
The 720-mile Sand Hills Pipeline will meet growing demand in the
Permian Basin and Eagle Ford Shale. Service from the Eagle Ford
began in December 2012. Deliveries from the Permian started in
the second quarter of 2013. Phillips 66 and Spectra Energy each
acquired a one-third interest in the entity that owns the pipeline
in November 2012. The common-carrier pipeline will ramp up to a
capacity of more than 200,000 barrels per day after completion of
initial pump stations. Further capacity increases to 350,000 barrels
per day are possible with the installation of additional pump stations.
Growing industry demand continues to drive infrastructure needs and attractive expansion opportunities.
23
PHILLIPS 66 COMPANY PROFILE 2013
Phillips 66 holds interests in three NGL fractionators and gathering
systems at important NGL hubs in the United States. Phillips 66
owns 22.5 percent of Gulf Coast Fractionators in Mont Belvieu,
Texas. Phillips 66 also owns 12.5 percent of the Enterprise Mont
Belvieu Fractionator and 40 percent of the Conway Fractionator,
located at the Conway hub in Kansas. Phillips 66 has announced it is
exploring development of a 100,000 barrel-per-day fractionator to be
located in Old Ocean, Texas, close to the company’s Sweeny Refinery.
If approved, construction is expected to begin in the first half of
2014, with startup expected during the second half of 2015.
In addition to the fractionators, Phillips 66 also owns approximately
240 miles of Y-grade gathering systems in the Texas Panhandle.
These systems gather both Y-1 and Y-2 NGL streams for supply to
the company’s facilities at its joint venture Borger Refinery and the
fractionation facilities in Mont Belvieu and Conway.
Phillips 66 Commercial has supply and trading operations that
manage NGL volume requirements from Phillips 66 refineries and
fractionators. It also conducts trading at the Conway and Mont
Belvieu hubs.
In 2012, Phillips 66 acquired direct one-third ownership interests in
the Sand Hills and Southern Hills pipeline entities, connecting Eagle
Ford, Permian and midcontinent production to the Mont Belvieu,
Texas, market.
NGL OPERAtIONS
Gulf Coast Fractionators in Mont Belvieu, Texas.
Employee working on Phillips 66’s Commercial trading floor in Houston, Texas.
24
Phillips 66’s Chemicals segment comprises a 50 percent equity investment in Chevron Phillips Chemical Company LLC (CPChem), a joint venture with Chevron U.S.A. Inc., a wholly owned subsidiary of Chevron Corporation.
PHILLIPS 66 COMPANY PROFILE 2013
PHILLIPS 66CHEMICALS
34Billion pounds per year of net CPChem chemicals processing capacity as of 2012
25
PHILLIPS 66 COMPANY PROFILE 2013
CPChem’s Cedar Bayou Complex in Baytown,Texas, the site for its proposed world-scale ethane cracker and 1-hexene plant.
26
PHILLIPS 66 COMPANY PROFILE 2013
OLEFINS AND POLYOLEFINSCAPACITY UTILIZATIONPercent
RETURN ON CAPITAL EMPLOYED1 Percent
11H 2013 ROCE is annualized.
CHEMICALS OVERVIEWOPERAtING HIGHLIGHtS — CPCHEM (100%) 2012 2011 2010
Number of manufacturing sites 36 35 34
Plant gross capacity (BLB/Y) 48 41 41
Net capacity (BLB/Y) 34 31 31
Combined total recordable rate (safety incidents per 200,000 hours) 0.30 0.41 0.44
Employees at year-end (thousands) 4.7 4.7 4.6
10 12 1H1311
0
5
10
15
20
25
30
35
980
463
10 1211
93
1H13
849
1 94
10 1211
33.3
30.8
31.0
10 1211
31
1H13
252
8
21
10 1211
31
28
21
486
716
10 1211
$823
$486
$716
Chemicals Earnings
This row if placed on darkbackground color
This row if placed on Lightbackground color
Net Capacity
Return on Capital Employed
0
200
400
600
800
1000
0
10
50
60
70
20
30
40
80
90
100
10 12 1H1311
0
5
10
15
20
25
30
35
98
0
46
3
10 1211
93
1H13
849
1 94
10 1211
33.3
30.8
31.0
10 1211
31
1H13
252
8
21
10 1211
31
28
21
48
6
71
6
10 1211
$8
23
$4
86
$7
16
Chemicals Earnings
This row if placed on darkbackground color
This row if placed on Lightbackground color
Net Capacity
Return on Capital Employed
0
200
400
600
800
1000
0
10
50
60
70
20
30
40
80
90
100
10 12 1H1311
0
5
10
15
20
25
30
35
98
0
46
3
10 1211
93
1H13
849
1 94
10 1211
33
.3
30
.8
31
.0
10 1211
31
1H13
252
8
21
10 1211
31
28
21
48
6
71
6
10 1211
$8
23
$4
86
$7
16
Chemicals Earnings
This row if placed on darkbackground color
This row if placed on Lightbackground color
Net Capacity
Return on Capital Employed
0
200
400
600
800
1000
0
10
50
60
70
20
30
40
80
90
100
ADJUSTED EARNINGS$ million
2012 ACCOMPLISHMENtS
• Maintained top-tier safety performance by participating in OSHA’s
Voluntary Protection Program (VPP). Currently 17 of 20 eligible sites
are VPP certified.
• Strengthened balance sheet by retiring $1 billion of debt.
• Began commercial production at the Saudi Polymers Company
(SPCo) petrochemical complex in Jubail Industrial City, Saudi Arabia,
which is a 35-percent-owned joint venture project.
• Announced plans and began work to expand the NGL fractionator
complex at its Sweeny facility in Old Ocean, Texas. The project was
completed in the second quarter of 2013.
• Advanced plans to build a world-scale ethane cracker and
polyethylene facilities. The proposed ethane cracker will be built
at the company’s Cedar Bayou facility in Baytown, Texas. The
polyethylene facility will be built near the company’s Sweeny
facility in Old Ocean, Texas. Both projects are anticipated to start
up in 2017.
• Announced and began construction of a world-scale 1-hexene
plant at the company’s Cedar Bayou chemical complex in
Baytown, Texas, with anticipated startup in 2014.
27
PHILLIPS 66 COMPANY PROFILE 2013
QATAR
SAUDI ARABIA
COLOMBIA
SOUTH KOREA
SINGAPORE
CHINA
UNITED STATES
BELGIUM
INDIAN OCEAN
JOINT VENTURE FACILITIES
WHOLLY OWNED FACILITIES
RESEARCH AND DEVELOPMENT CENTERS
ATLANTIC OCEAN
PACIFIC OCEAN
CPCHEM WORLDWIDE OPERATIONS AS OF DEC. 31, 2012
ATLANTIC OCEAN
PACIFICOCEAN
GULF OFMEXICO
MANUFACTURING FACILITIES
RESEARCH AND TECHNOLOGY FACILITIES
HEADQUARTERS
MILES
0 200
CPCHEM U.S. OPERATIONS AS OF DEC. 31, 2012
28
PHILLIPS 66 COMPANY PROFILE 2013
Now in its 13th year of operations, CPChem had approximately 4,700
employees worldwide and approximately $9.4 billion in assets, as of
Dec. 31, 2012.
Headquartered in The Woodlands, Texas, CPChem’s business is
structured around two primary operating segments: Olefins and
Polyolefins (O&P) and Specialties, Aromatics and Styrenics (SA&S).
The O&P segment produces and markets ethylene, propylene and
other olefins products. The majority of the ethylene is consumed within
the O&P segment for the production of polyethylene, normal alpha
olefins and polyethylene pipe. The SA&S segment manufactures and
markets aromatics
products, such as
benzene, styrene,
paraxylene and
cyclohexane, as well
as polystyrene and
styrene-butadiene
copolymers. SA&S
also manufactures
and markets
a variety of
specialty chemical
products, including
organosulfur
chemicals,
solvents, drilling
chemicals, mining
chemicals, and
high-performance
engineering plastics
and compounds.
CPCHEM IS tHE:
•Largest producer of high-density polyethylene (HDPE) in the world.
• Fourth-largest ethylene producer in North America.
•Second-largest cyclohexane producer and largest cyclohexane
marketer in the world.
• Second-largest alpha olefins producer in the world.
CPCHEM’S PRIMARY BRANDS INCLUDE:
• Marlex® polyethylene, a premium extrusion and rigid packaging resin.
• MarFlex® polyethylene, a superior flexible packaging resin.
• K-Resin® styrene-butadiene copolymer (SBC), the number one brand
of SBC in the world.
• Ryton® polyphenylene sulfide (PPS), a high-performance engineering
polymer known for dimensional stability and resistance to corrosive
and high-temperature environments.
• Soltex® drilling mud additive, a high-temperature/high-pressure fluid
loss control additive for water-based muds.
• Scentinel® Gas Odorants, which are added to natural gas to give it a
distinctive smell, a vital safety measure.
CPChem, through its subsidiaries and equity affiliates, has 36
manufacturing facilities located in Belgium, China, Colombia, Qatar,
Saudi Arabia, Singapore, South Korea and the United States. In
addition, CPChem has two research and development centers.
These facilities provide full-scale petrochemical and polymer research,
including new catalyst development, product and process development,
and commercial process support. CPChem employs more than 250
scientists, researchers and engineers in its research facilities.
CPChem’s state-of-the-art plastics technical centers are equipped
with the latest processing and testing technology for the molding and
extruding of polymer and copolymer resins.
CPChem’s loop slurry process for HDPE production is one of the most
widely licensed processes in the world, with more than 80 commercial
reactor facilities utilizing this technology. Another technological
achievement is Aromax® technology, the lowest-cost process for on-
purpose production of benzene.
Other technological achievements and proprietary technology include:
On-purpose 1-hexene technology, normal alpha olefin production
technology, Ryton® PPS generation V process, tapering technology for
K-Resin® SBC, methyl mercaptan process and technology, first and
second generation functional drilling fluids, and polyalphaolefin stability
and low temperature performance enhancements.
CPCHEM PROFILE
CPChem’s loop slurry process for HDPE production is one of the most widely licensed processes in the world, with more than 80 commercial reactor facilities utilizing this technology.
Worker handling Marlex polyethylene at the Qatar Chemical Company plant in Masaieed, Qatar.
29
PHILLIPS 66 COMPANY PROFILE 2013
U.S. GULF COASt
CPChem continues plans to pursue a project to construct a world-
scale ethane cracker and polyethylene facilities in the U.S. Gulf
Coast region (USGC). The project will leverage the development of
the significant shale gas resources in the United States. CPChem’s
Cedar Bayou facility in Baytown, Texas, will be the location of the 3.3
billion-pounds-per-year ethylene unit. The polyethylene facility will
have two polyethylene reactors, each with an annual capacity of 1.1
billion pounds, and will be located near CPChem’s Sweeny facility
in Old Ocean, Texas. The estimated completion date for the USGC
petrochemicals project is 2017.
In April 2012, CPChem announced it will build the world’s largest
on-purpose 1-hexene plant, capable of producing up to 550 million
pounds per year at its Cedar Bayou chemical complex in Baytown,
Texas. Construction has begun, and the project is anticipated to start
up during the
first half of 2014.
Upon completion,
the new plant
will be the third
such plant to
utilize CPChem’s
proprietary
selective
1-hexene
technology,
which produces
co-monomer-
grade 1-hexene
from ethylene
with exceptional
product purity.
1-hexene
is a critical
component
used in the manufacture of polyethylene, a plastic resin commonly
converted into film, plastic pipe, milk jugs, detergent bottles, and food
and beverage containers. The proven technology is successfully used
at the Q-Chem facility in Mesaieed, Qatar, and at the SPCo Plant in
Saudi Arabia.
CPChem is also working on an expansion of the NGL Fractionator
Complex at its Sweeny Plant in Old Ocean, Texas. With the expansion,
the NGL fractionation unit will increase capacity by approximately
22,000 barrels per day or a 19 percent increase over current capacity.
The project was completed in the second quarter of 2013.
kEY PROJECtS
Saudi Polymers Company plant in Jubail Industrial City, Saudi Arabia.
CPChem announced it will build the world’s largest on-purpose 1-hexene plant, capable of producing up to 550 million pounds per year at its Cedar Bayou chemical complex in Baytown, Texas.
SAUDI CHEVRON PHILLIPS COMPANY AND JUBAIL CHEVRON
PHILLIPS COMPANY
Saudi Chevron Phillips Company (SCP) is a 50-percent-owned joint
venture of CPChem that owns and operates an aromatics complex at
Jubail Industrial City, Saudi Arabia. Jubail Chevron Phillips Company
(JCP), another 50-percent-owned joint venture of CPChem, owns and
operates an integrated styrene facility adjacent to the SCP aromatics
complex. SCP and JCP are collectively known as S-Chem.
SAUDI POLYMERS COMPANY
SPCo is a 35-percent owned joint venture company of CPChem.
Construction of the integrated petrochemicals complex at Jubail
Industrial City, Saudi Arabia, was completed in December 2011 and
commercial production began in 2012.
The integrated SPCo petrochemicals complex includes world-class
operating units that are capable of producing ethylene (2,690
MMLB/Y), propylene (970 MMLB/Y), polyethylene (2,425 MMLB/Y),
polypropylene (880 MMLB/Y), polystyrene (440 MMLB/Y) and
1-hexene (220 MMLB/Y). In addition to direct sales in the local Saudi
market, SPCo serves world markets outside the Kingdom of Saudi
Arabia through its exclusive distributor, Gulf Polymers Distribution
Company, utilizing CPChem’s global marketing network.
30
PHILLIPS 66 COMPANY PROFILE 2013
NYLON 6,6 MANUFACtURING PLANt AND POLYMER CONVERSION
FACILItIES
CPChem owns a 50 percent interest in Petrochemical Conversion
Company, a joint venture, which is continuing construction of its
Nylon 6,6 Manufacturing Plant and Polymer Conversion Facilities,
located in Jubail Industrial City II in the Kingdom of Saudi Arabia.
The plant is expected to start up in late 2013 and is being built
using state-of-the-art technology licensed from a major producer
of nylon 6,6. The project, which includes a nylon 6,6 plant, a nylon
compounding plant, and various polymer conversion plants, will have
the capacity to produce 110 million pounds per year of nylon 6,6,
44 million pounds per year of nylon compound, and 260 million
pounds per year of converted products. The plants will make a wide
range of end-use products expected to include high-performance
polyethylene pipe, drip irrigation products, medical disposables,
complex caps and closures, pharmaceutical packaging productions,
electrical fittings and automotive parts.
QAtAR CHEMICAL COMPANY LtD., QAtAR CHEMICAL COMPANY II
LtD. AND RAS LAFFAN OLEFINS COMPANY
CPChem owns a 49 percent interest in Qatar Chemical Company Ltd.
(Q-Chem), a joint venture that owns a major olefins and polyolefins
complex in Mesaieed, Qatar. CPChem also owns a 49 percent
interest in Qatar Chemical Company II Ltd. (Q-Chem II), a second
joint venture complex in Mesaieed. The Q-Chem II facility produces
polyethylene and normal alpha olefins (NAO) on a site adjacent to
the Q-Chem complex. In connection with this project, an ethane
cracker that provides ethylene feedstock via pipeline to the Q-Chem II
plants was developed in Ras Laffan Industrial City, Qatar. The ethane
cracker and pipeline are owned by Ras Laffan Olefins Company, a
joint venture of Q-Chem II and Qatofin Company Limited. Collectively,
Q-Chem II consists of its interest in the ethane cracker and pipeline
and the polyethylene and NAO plants.
kEYPROJECtS
Employees at CPChem’s Sweeny Facility in Old Ocean, Texas.
continued
Ras Laffan Olefins Company plant in Ras Laffan, Qatar.
CPChem’s Borger Facility in Borger, Texas.
O&P
Ethylene 7,830 2,475 10,305
Propylene 2,975 505 3,480
High-density polyethylene 4,205 1,725 6,500
Low-density polyethylene 620 0 620
Linear low-density polyethylene 420 0 420
Polypropylene 0 310 310
Normal alpha olefins 1,490 515 2,005
Polyalphaolefins 105 0 235
Polyethylene pipe 590 0 590
Total O&P 18,235 5,530 24,465
SA&S
Benzene 1,600 930 2,530
Cyclohexane 1,060 395 1,455
Paraxylene 1,000 0 1,000
Styrene 1,050 825 1,875
Polystyrene 835 155 1,335
K-Resin® SBC 100 0 170
Specialty chemicals 605 0 705
Ryton® PPS 55 0 75
Total SA&S 6,305 2,305 9,145
Capacities include CPChem’s share in equity affiliates.
U.S. Middle East WorldwideMMLB/Y
PEtROCHEMICAL AND PLAStICS PRODUCtION CAPACItIES as of Dec. 31, 2012
31
PHILLIPS 66 COMPANY PROFILE 2013
32
PHILLIPS 66 COMPANY PROFILE 2013
Americas Styrenics Styrene 2,100
St. James, La.
Americas Styrenics Polystyrene 270
Joliet, Ill.
Americas Styrenics Polystyrene 250
Allyn’s Point, Conn.
Americas Styrenics Polystyrene 400
Hanging Rock, Ohio
Americas Styrenics Polystyrene 330
Torrance, Calif.
Americas Styrenics Polystyrene 420
Marietta, Ohio
Americas Styrenics Polystyrene 160
Cartagena, Colombia
Qatar Chemical Company Ltd. Ethylene 1,150
Mesaieed, Qatar High-density polyethylene 1,010
1-hexene 130
Qatar Chemical Company II Ltd. High-density polyethylene 770
Mesaieed, Qatar Normal alpha olefins (NAO) 760
Ras Laffan Olefins Company (RLOC) Ethylene 2,870
Ras Laffan, Qatar
Chevron Phillips Singapore High-density polyethylene 880
Chemicals (Private) Limited, Singapore
Shanghai Golden Phillips Petrochemical Co. High-density polyethylene 320
Jinshanwei, China
Saudi Polymers Company Ethylene 2,690
Jubail Industrial City, Saudi Arabia Propylene 970
High-density polyethylene 2,425
Polypropylene 880
Polystyrene 440
1-hexene 220
Saudi Chevron Phillips Company Benzene 1,865
Jubail Industrial City, Saudi Arabia Cyclohexane 790
Jubail Chevron Phillips Company Styrene 1,650
Jubail Industrial City, Saudi Arabia Ethylene 450
Propylene 330
K R Copolymer Co., Ltd. K-Resin® SBC 115
Yeosu, South Korea
Facility/Location Products Gross Capacity (MMLB/Y)
JOINt VENtURE CHEMICAL FACILItIES as of Dec. 31, 2012
33
PHILLIPS 66 COMPANY PROFILE 2013
Pasadena Plastics Complex K-Resin® SBC 100
Pasadena, Texas High-density polyethylene 2,180
Sweeny Facility Ethylene 4,110
Old Ocean, Texas Propylene 1,170
Borger Facility Organosulfur chemicals 230
Borger, Texas Ryton® PPS polymer 40
Performance and reference fuels 120
High-purity hydrocarbons and solvents 140
Mining chemicals 70
Cedar Bayou Facility Ethylene 1,840
Baytown, Texas Propylene 1,030
Normal alpha olefins 1,490
Polyalphaolefins 105
Linear low-, low- and high-density polyethylene 2,555
Orange Chemical Facility High-density polyethylene 970
Orange, Texas
Port Arthur Facility Ethylene 1,880
Port Arthur, Texas Propylene 775
Cyclohexane 1,060
Drilling Specialties Drilling specialty chemicals 45
Conroe, Texas
Houston Compounding Facility Ryton® PPS compounds 15
La Porte, Texas
Pascagoula Facility Paraxylene 1,000
Pascagoula, Miss. Benzene 1,600
Performance Pipe Division Polyethylene pipe and pipe fittings 590
Nine locations in the United States
Zhangjiagang, China Facility Polystyrene 265
Zhangjiagang, China
Tessenderlo Chemicals Facility Organosulfur chemicals 100
Tessenderlo, Belgium
Kallo Compounding Facility Ryton® PPS compounds 20
Kallo-Beveren, Belgium
Beringen, Belgium Facility Polyalphaolefins 130
Beringen, Belgium
Facility/Location Products Gross Capacity (MMLB/Y)
WHOLLY OWNED CHEMICAL FACILItIES as of Dec. 31, 2012
34
PHILLIPS 66 COMPANY PROFILE 2013
PHILLIPS 66REFINING
62
Phillips 66 has refining operations in all five U.S.
Petroleum Administration for Defense Districts (PADDs),
where the company benefits from access to cost-
advantaged crude and lower natural gas prices. Each
region contains assets integrated with transportation,
marketing and commercial activities. Phillips 66 also
owns or has an interest in three refineries in Europe and
one refinery in Asia.
Percent of U.S. refining crude slate was advantaged crude in 2012
35
PHILLIPS 66 COMPANY PROFILE 2013
The Wood River Refinery is located on the Mississippi River and processes a mix of light, low-sulfur and heavy crudes. Products include transportation fuels, petrochemical feedstocks, asphalt and coke.
36
PHILLIPS 66 COMPANY PROFILE 2013
• Ongoing focus on safety, with multiple facilities earning external
recognition for superior safety performance during the year.
• Continuing advances in environmental performance and commitment
to the communities in which we operate.
• Increased domestic advantaged crude processing to 62 percent of
total crude runs in 2012, compared to 52 percent in 2011.
• Captured strong midcontinent refining margins.
• Continuing improvements in optimization and increasing clean
product yield.
• Achieved industry-leading distillate yield.
• Completed first full year of operation for the coker and refinery
expansion (CORE) project at the Wood River Refinery, doubling
heavy crude oil gross processing capacity and delivering a 5
percent increase in clean product yield.
• Enhanced global refinery utilization rates reaching 93 percent in
2012, well above industry average.
• Expanded refined product export capability from domestic
refineries to 285,000 barrels per day by the end of 2012.
WORLWIDE CRUDE PROCESSING CAPACITYMMBD
RETURN ON CAPITAL EMPLOYED2 Percent
1Crude processing capacity as of Jan. 1, 2013.21H 2013 ROCE is annualized.
2012 ACCOMPLISHMENtS
REFINING OVERVIEWOPERAtING HIGHLIGHtS 2012 2011 2010
Crude oil processed (MBD) 2,064 2,166 2,156
Crude oil capacity utilization (percent) 93 92 81
Clean product yield (percent) 84 84 83
Distillate yield (percent) 40 40 39
U.S. crude processing capacity (MBD) 1,8061 1,801 1,986
International crude processing capacity (MBD) 430 426 671
Combined total recordable rate (safety incidents per 200,000 hours) 0.23 0.35 0.33
10 1211
0
5
10
15
20
25
30
3.8
1H13
1.4
10 1211
2.2
1H13
2.2
2.7
2.2
10 1211
2.2
2.7
2.2
10 1211
27
1H13
19
13
4
10 1211
27
13
4
0.6
2.0
10 1211
3.8
0.6
2.0
Adjusted Earnings
This row if placed on darkbackground color
This row if placed on Lightbackground color
Worldwide Crude Processing Capacity
Return on Capital Employed
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
0.0
0.5
1.0
1.5
2.0
2.5
3.0
10 1211
0
5
10
15
20
25
30
3.8
1H13
1.4
10 1211
2.2
1H13
2.2
2.7
2.2
10 1211
2.2
2.7
2.2
10 1211
27
1H13
19
13
4
10 1211
27
13
4
0.6
2.0
10 1211
3.8
0.6
2.0
Adjusted Earnings
This row if placed on darkbackground color
This row if placed on Lightbackground color
Worldwide Crude Processing Capacity
Return on Capital Employed
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
0.0
0.5
1.0
1.5
2.0
2.5
3.0
10 1211
0
5
10
15
20
25
30
3.8
1H13
1.4
10 1211
2.2
1H13
2.2
2.7
2.2
10 1211
2.2
2.7
2.2
10 1211
27
1H13
19
13
4
10 1211
27
13
4
0.6
2.0
10 1211
3.8
0.6
2.0
Adjusted Earnings
This row if placed on darkbackground color
This row if placed on Lightbackground color
Worldwide Crude Processing Capacity
Return on Capital Employed
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
0.0
0.5
1.0
1.5
2.0
2.5
3.0
ADJUSTED EARNINGS$ billion
PHILLIPS 66 COMPANY PROFILE 2013
WORLDWIDE REFINING AS OF DEC. 31, 2012
Region Crude1 total Gasoline3 Distillate3 Complexity Factor Yield Capability
Western/Pacific2 440 478 210 205 11.5 83%
Central Corridor2 475 526 265 185 11.3 88%
Gulf Coast 733 855 340 355 12.1 81%
Atlantic Basin/Europe2 588 656 270 285 9.0 84%
Worldwide 2,236 2,515 1,085 1,030 11.0 84%
Capacity (MBD) Average Nelson Average Clean Product
1As of Jan. 1, 2013.2Includes Phillips 66’s share of joint venture refineries.3Clean product capacities are maximum rates for each clean product category, independent of each other. The capacities are not additive when calculating the average clean product yield capability.
NORTHSEA
GERMANY
IRELAND
U.K. BALTIC S
EAMILES
0 200
MiRO
WHITEGATE
HUMBER
EUROPE REFINING AS OF DEC. 31, 2012
2000
MILES
MALAYSIA
MELAKA
SOUTH CHINASEA
ASIA REFINING AS OF DEC. 31, 2012
MILES
0 300
ATLANTIC OCEAN
PACIFIC OCEAN
FERNDALE
BILLINGS
PONCA CITY
WOOD RIVERSAN FRANCISCO
LOS ANGELES
ALLIANCE
LAKE CHARLES
BAYWAY
BORGER
SWEENY
GULF OF MEXICO
WHOLLY OWNED REFINERY
JOINT VENTURE REFINERY
CENTRAL CORRIDOR
ATLANTIC BASIN/EUROPE
WESTERN/PACIFIC
GULF COAST
U.S. REFINING AS OF DEC. 31, 2012
37
38
PHILLIPS 66 COMPANY PROFILE 2013
The Ferndale Refinery is located
on Puget Sound in Ferndale,
Wash., about 20 miles south
of the U.S.-Canada border. The
refinery processes Alaskan
North Slope, sour Canadian and
U.S. shale crude oils.
Ferndale operates a deepwater
dock capable of accommo-
dating tankers transporting
Alaskan North Slope crude oil
from Valdez, Alaska. It also
receives Canadian crude oil via
pipeline and U.S.-advantaged
crude via a combination of rail
and barge transport. Ferndale
Refinery facilities include a fluid
catalytic cracker, an alkylation
unit, hydrotreating units and a
naphtha reformer.
The refinery primarily produces
transportation fuels, such as
gasoline and diesel fuels. Other
products include fuel oil supply-
ing the northwest marine trans-
portation market. Most refined
products are distributed by pipe-
line and barge to major markets
in the northwest United States.
Recent improvements have
enhanced the refinery’s ability
to export refined products.
The Los Angeles Refinery is
composed of two linked facilities
located roughly five miles apart
in Carson and Wilmington, Calif.,
about 15 miles southeast of Los
Angeles International Airport. Car-
son serves as the front portion of
the refinery by processing crude
oil, and Wilmington serves as the
back portion by upgrading
the intermediate products to
finished products.
The refinery processes mainly
heavy, high-sulfur crude oil. It
receives domestic crude oil via
pipeline from California and
both foreign and domestic crude
oils by tanker through a third-
party terminal in the Port of Long
Beach. The refinery produces a
high percentage of transportation
fuels, such as gasoline, diesel
and jet fuels. Other products in-
clude fuel-grade petroleum coke.
The facilities include fluid
catalytic cracking, alkylation, hy-
drocracking, coking and naphtha
reforming units. The refinery pro-
duces California Air Resources
Board (CARB)-grade gasoline and
diesel fuels. Refined products
are distributed to customers in
California, Nevada and Arizona
by pipeline and truck. Recent im-
provements have enhanced the
refinery’s ability to export refined
products.
Ferndale Refinery
Los Angeles Refinery
REFINING WEStERN/PACIFIC as of Dec. 31, 2012
101CRUDE CAPACITY (MBD)
108TOTAL CAPACITY (MBD)
55GASOLINE CAPACITY (MBD)
30DISTILLATE CAPACITY (MBD)
7.3NELSON COMPLEXITY FACTOR
75CLEAN PRODUCT YIELD CAPABILITY
%
139CRUDE CAPACITY (MBD)
155TOTAL CAPACITY (MBD)
80GASOLINE CAPACITY (MBD)
65DISTILLATE CAPACITY (MBD)
14.3NELSON COMPLEXITY FACTOR
88CLEAN PRODUCT YIELD CAPABILITY
%
39
PHILLIPS 66 COMPANY PROFILE 2013
The San Francisco Refinery
is comprised of two facilities
linked by a 200-mile pipeline.
The Santa Maria facility is
located in Arroyo Grande, Calif.,
while the Rodeo facility is in the
San Francisco Bay Area.
The refinery processes a
mixture of heavy, high-sulfur
and light sweet crude oils. It
receives California crude oil
via pipeline and both domestic
and foreign crude oils by tanker.
Semi-refined products from the
Santa Maria facility are sent by
pipeline to the Rodeo facility for
upgrading into finished petro-
leum products. A high propor-
tion of the refinery’s production
is transportation fuel, such as
gasoline and diesel fuels.
Process facilities include cok-
ing, hydrocracking, hydrotreat-
ing and naphtha reforming
units. The refinery produces
CARB-grade gasoline and diesel
fuels. The majority of refined
products are distributed by
pipeline, railcar and barge to
customers in California. Recent
improvements have enhanced
the refinery’s ability to export
refined products.
The PSR-2 refinery in Melaka,
Malaysia, is a joint venture with
Petronas, the Malaysian state
oil company. Phillips 66 owns
a 47 percent interest in the
joint venture. The medium, high-
sulfur crude oil processed by
the refinery is sourced mostly
from the Middle East.
The refinery produces a full
range of refined petroleum
products and capitalizes on
hydrocracking and coking
technology to upgrade low-cost
feedstocks to higher-margin
products. Phillips 66’s share of
refined products is transported
by tanker and marketed in Ma-
laysia and other Asian markets.
San Francisco Refinery
Melaka Refinery1 120
CRUDE CAPACITY (MBD)
130TOTAL CAPACITY (MBD)
55GASOLINE CAPACITY (MBD)
60DISTILLATE CAPACITY (MBD)
13.7NELSON COMPLEXITY FACTOR
83CLEAN PRODUCT YIELD CAPABILITY
%
80CRUDE CAPACITY (MBD)
85TOTAL CAPACITY (MBD)
20GASOLINE CAPACITY (MBD)
50DISTILLATE CAPACITY (MBD)
8.9NELSON COMPLEXITY FACTOR
80CLEAN PRODUCT YIELD CAPABILITY
%
All crude capacities as of Jan. 1, 2013.1Reflects Phillips 66’s equity share.
40
PHILLIPS 66 COMPANY PROFILE 2013
The Billings Refinery, located
in Billings, Mont., processes a
mixture of Canadian heavy, high-
sulfur crude oil plus domestic
high-sulfur and low-sulfur crude
oils, all delivered via pipeline
and truck.
The facilities include fluid
catalytic cracking, naphtha
reforming and hydrodesulfur-
ization units. A delayed coker
converts heavy, high-sulfur resi-
due into higher-value light oils.
The refinery produces a high
percentage of transportation
fuels, such as gasoline, diesel
and aviation fuels, as well as
fuel-grade petroleum coke.
Finished petroleum products
from the refinery are delivered
via pipeline, railcar and truck.
Pipelines transport most of the
refined products to markets in
Montana, Wyoming, Idaho, Utah,
Colorado and Washington.
The Ponca City Refinery, located
in Ponca City, Okla., processes
a mixture of light, medium and
heavy crude oils. Most of the
crude oil processed is received
by pipeline from Oklahoma, Texas
and Canada. Recent and ongoing
transportation infrastructure
improvements have enabled the
delivery of increased volumes
of locally produced advantaged
crude oil via pipeline and truck.
The Ponca City Refinery is a high-
conversion facility that produces
a full range of products, including
gasoline, diesel and jet fuels;
liquefied petroleum gas (LPG);
and anode-grade petroleum coke.
Its facilities include two fluid
catalytic cracking units, alkyla-
tion, delayed coking, naphtha
reforming and hydrodesulfuriza-
tion units. Finished petroleum
products are shipped by truck,
railcar, and company-owned and
common-carrier pipelines to mar-
kets throughout the midcontinent
region.
Billings Refinery
Ponca City Refinery
REFINING CENtRAL CORRIDOR as of Dec. 31, 2012
59CRUDE CAPACITY (MBD)
65TOTAL CAPACITY (MBD)
35GASOLINE CAPACITY (MBD)
25DISTILLATE CAPACITY (MBD)
14.1NELSON COMPLEXITY FACTOR
89CLEAN PRODUCT YIELD CAPABILITY
%
190CRUDE CAPACITY (MBD)
205TOTAL CAPACITY (MBD)
105GASOLINE CAPACITY (MBD)
80DISTILLATE CAPACITY (MBD)
9.6NELSON COMPLEXITY FACTOR
91CLEAN PRODUCT YIELD CAPABILITY
%
41
PHILLIPS 66 COMPANY PROFILE 2013
The Borger Refinery is located
in Borger, Texas, in the Texas
Panhandle about 50 miles north
of Amarillo. Jointly owned by
Phillips 66 and Cenovus Energy,
the Borger Refinery is operated
by Phillips 66. It includes an
NGL fractionation facility with
gross capacity of 35 MBD. The
refinery processes primarily
medium sour crude oil and NGL
delivered through pipelines
from West Texas, the Texas Pan-
handle, Wyoming and Canada.
The Borger Refinery also can
receive foreign crude oil via
company-owned and common-
carrier pipeline systems.
The refinery facilities include
two fluid catalytic cracking
units, alkylation, delayed cok-
ing, hydrodesulfurization and
naphtha reforming that enable
it to produce a high percentage
of transportation fuels, such as
gasoline, diesel and aviation fu-
els, as well as petroleum coke,
NGL and solvents. Pipelines
move refined products to West
Texas, New Mexico, Colorado
and the midcontinent region.
The Wood River Refinery is located about
15 miles northeast of St. Louis, Mo., in
Roxana, Ill. Jointly owned by Phillips 66
and Cenovus Energy, the Wood River
Refinery is operated by Phillips 66. The
complex includes a docking area on the
Mississippi River. The refinery processes
a mix of light, low-sulfur and heavy, high-
sulfur and high-acid crude oils. Wood
River receives Canadian and domestic
crude oils, including from U.S.-advantaged
sources and other foreign sources, by
various pipelines. The refinery produces
a high percentage of transportation fuels,
such as gasoline, diesel and jet fuels.
Other products include petrochemical
feedstocks, asphalt and coke.
Operations include two fluid catalytic
cracking units, alkylation, hydrocracking,
two delayed coking units, naphtha reform-
ing, hydrotreating and sulfur recovery.
Wood River is a major supplier to Lambert
International Airport in St. Louis and
Chicago O’Hare Airport. Finished product
leaves Wood River through pipelines and
by rail, barge and truck.
In its first full year of operation following
the CORE project, Wood River’s clean
product yield improved by 5 percent,
heavy crude oil gross processing capacity
doubled and overall production rates
increased. The majority of the existing as-
phalt production at Wood River has been
replaced with production of upgraded
products.
Borger Refinery1
Wood River Refinery 1
72CRUDE CAPACITY (MBD)
90TOTAL CAPACITY (MBD)
50GASOLINE CAPACITY (MBD)
25DISTILLATE CAPACITY (MBD)
12.3NELSON COMPLEXITY FACTOR
89CLEAN PRODUCT YIELD CAPABILITY
%
154CRUDE CAPACITY (MBD)
166TOTAL CAPACITY (MBD)
75GASOLINE CAPACITY (MBD)
55DISTILLATE CAPACITY (MBD)
11.8NELSON COMPLEXITY FACTOR
83CLEAN PRODUCT YIELD CAPABILITY
%
All crude capacities as of Jan. 1, 2013.1Reflects Phillips 66’s equity share.
42
PHILLIPS 66 COMPANY PROFILE 2013
The Alliance Refinery, located
on the Mississippi River in Belle
Chasse, La., 25 miles south of
New Orleans, processes mainly
light, low-sulfur crude oil. Alli-
ance receives domestic crude
oil from the Gulf of Mexico via
pipeline and foreign crude oil
from West Africa via pipeline
connected to the Louisiana Off-
shore oil port. The refinery also
receives U.S.-advantaged crude
oil via marine transport.
The single-train refinery’s facili-
ties include fluid catalytic crack-
ing, alkylation, coking, hydrode-
sulfurization units, a naphtha
reformer and aromatics units
that enable it to produce a high
percentage of transportation
fuels, such as gasoline, diesel
and jet fuels. Other products
include petrochemical feed-
stocks, home heating oil and
anode-grade petroleum coke.
The majority of the refined
products are distributed to cus-
tomers in the southeastern and
eastern United States through
major common-carrier pipeline
systems and by barge. Recent
improvements have enhanced
the refinery’s ability to export
refined products.
The Lake Charles Refinery, located
in Westlake, La., processes some
light, sweet crude oil; however, it
primarily processes heavy, high-
sulfur and high-acidic crude oils.
The refinery receives domestic
Gulf Coast, U.S.-advantaged and
foreign crude oils.
The facilities include crude distil-
lation, a fluid catalytic cracker,
alkylation, a hydrocracker, a
delayed coker and hydrodesul-
furization units that enable it to
produce low-sulfur gasoline and
diesel fuels, home heating oil and
fuel-grade petroleum. The refinery
facilities also include a specialty
coker and calciner, which produce
graphite petroleum coke for the
steel industry. Through the Excel
Paralubes joint venture, the
refinery produces base oils for
lubricants.
The Lake Charles Refinery pro-
duces a high percentage of
transportation fuels, such as
gasoline and jet fuels, along with
home heating oil. The major-
ity of its refined products are
distributed by truck, railcar, barge
or major common-carrier pipelines
in the southeastern and eastern
United States. In addition, refined
products can be sold into export
markets through the refinery’s
marine terminal.
Alliance Refinery
Lake Charles Refinery
REFINING GULF COASt as of Dec. 31, 2012
247CRUDE CAPACITY (MBD)
275TOTAL CAPACITY (MBD)
125GASOLINE CAPACITY (MBD)
120DISTILLATE CAPACITY (MBD)
12.0NELSON COMPLEXITY FACTOR
86CLEAN PRODUCT YIELD CAPABILITY
%
ATLANTIC BASIN/EUROPE
239CRUDE CAPACITY (MBD)
280TOTAL CAPACITY (MBD)
90GASOLINE CAPACITY (MBD)
115DISTILLATE CAPACITY (MBD)
11.2NELSON COMPLEXITY FACTOR
70CLEAN PRODUCT YIELD CAPABILITY
%
ATLANTIC BASIN/EUROPE
247
43
PHILLIPS 66 COMPANY PROFILE 2013
The Sweeny Refinery, located
in Old Ocean, Texas, 65 miles
southwest of Houston, processes
mainly heavy, high-sulfur crude
oil, but also processes light,
low-sulfur crude oil. The refinery
receives domestic, including
U.S.-advantaged and foreign
crude oil, primarily through wholly
and jointly owned terminals on
the Gulf Coast, including a deep-
water terminal at Freeport, Texas.
The refinery facilities include
two fluid catalytic cracking units,
delayed coking, alkylation, a
naphtha reformer and hydrode-
sulfurization units. It operates
nearby terminals and storage
facilities in Freeport, Jones Creek
and on the San Bernard River,
along with pipelines that connect
these facilities to the refinery.
The refinery produces a high per-
centage of transportation fuels,
such as gasoline, diesel and jet
fuels. Other products include
petrochemical feedstocks, home
heating oil, fuel-grade petroleum
coke. Refined products are dis-
tributed throughout the midwest
and southeastern United States
by pipeline, barge and railcar.
Recent improvements have
enhanced the refinery’s ability to
export refined products.
Sweeny Refinery247
CRUDE CAPACITY (MBD)
300TOTAL CAPACITY (MBD)
125GASOLINE CAPACITY (MBD)
120DISTILLATE CAPACITY (MBD)
13.2NELSON COMPLEXITY FACTOR
87CLEAN PRODUCT YIELD CAPABILITY
%
ATLANTIC BASIN/EUROPE
All crude capacities as of Jan. 1, 2013.
44
PHILLIPS 66 COMPANY PROFILE 2013
The Bayway Refinery, located
on New York Harbor in Linden,
N.J., processes mainly light,
low-sulfur crude oil. Crude oil
is supplied to the refinery by
tanker, primarily from the North
Sea, Canada and West Africa.
U.S.-advantaged crude oil is
supplied to the refinery using a
combination of rail and marine
transport.
Bayway refining units include
one of the world’s largest
fluid catalytic cracking units,
hydrodesulfurization units, a
naphtha reformer, an alkylation
unit and other processing equip-
ment.
The refinery produces a high
percentage of transportation
fuels, such as gasoline, diesel
and jet fuels, as well as petro-
chemical feedstocks, residual
fuel oil and home heating oil.
The facility distributes refined
products to East Coast custom-
ers via barges, trucks, pipelines
and railcars. Bayway also has
a 775 million pound per year
polypropylene plant.
The Whitegate Refinery is lo-
cated in Cork, Ireland. Whitegate
is Ireland’s only refinery. Crude
oil processed by the refinery is
light, low-sulfur crude oil sourced
mostly from the North Sea, North
Africa and West Africa.
Whitegate primarily produces
transportation fuels, such as
gasoline, diesel and fuel oil
which are distributed mostly
inland, with some exported to
international markets. Phillips 66
also operates a crude oil and
products terminal with 7.5 mil-
lion barrels of storage facilitated
by an offshore mooring buoy in
Bantry Bay, Cork, Ireland, which
is about 80 miles southwest of
the refinery.
Bayway Refinery
Whitegate Refinery
REFINING AtLANtIC BASIN/EUROPE as of Dec. 31, 2012
238CRUDE CAPACITY (MBD)
285TOTAL CAPACITY (MBD)
145GASOLINE CAPACITY (MBD)
115DISTILLATE CAPACITY (MBD)
8.4NELSON COMPLEXITY FACTOR
90CLEAN PRODUCT YIELD CAPABILITY
%
ATLANTIC BASIN/EUROPE
71CRUDE CAPACITY (MBD)
71TOTAL CAPACITY (MBD)
15GASOLINE CAPACITY (MBD)
30DISTILLATE CAPACITY (MBD)
4.1NELSON COMPLEXITY FACTOR
65CLEAN PRODUCT YIELD CAPABILITY
%
ATLANTIC BASIN/EUROPE
45
PHILLIPS 66 COMPANY PROFILE 2013
The Humber Refinery is located in
North Lincolnshire, United King-
dom. Crude oil processed at the
refinery is supplied primarily from
the North Sea and includes light-,
low- and medium-sulfur and acidic
crude oils.
Humber is one of the most
sophisticated refineries in Europe.
It is a fully integrated facility that
produces a high proportion of
transportation fuels, such as gaso-
line, diesel and jet fuels. Humber’s
fluid catalytic cracking unit/thermal
cracking/coking configuration
means that substantial volumes
of other feedstocks, such as low-
sulfur fuel oil and vacuum gas oil,
are processed alongside crude oil
to fully utilize Humber’s cracking
capability.
The refinery also has two coking
units with associated calcining
plants that upgrade the heavy bot-
toms and imported feedstocks into
light oil products and high-value
graphite and anode-grade petro-
leum coke. Humber, the only coking
refinery in the United Kingdom,
is the world’s largest producer
of specialty graphite cokes and
Europe’s largest anode-grade coke
producer. Approximately 60 percent
of the light oils produced in the
refinery are marketed in the United
Kingdom, while the other products
are exported to the rest of Europe,
West Africa and the United States.
The Mineraloelraffinerie Oberrhein
GmbH (MiRO) Refinery, located on the
Rhine River in Karlsruhe in southwest
Germany, is a joint venture refinery with
Phillips 66 holding an 18.75 percent
interest, the other owners being Shell,
ExxonMobil and Ruhr Oel GmbH.
Phillips 66 processes mainly medium
sweet and medium sour crude oils in its
share of the refinery. Crude is sourced
from Russia, North Africa, the Caspian
Sea and the Middle East, and delivered
to the refinery via a cross-country pipe-
line from the port in Trieste, Italy.
The facilities at the high-conversion
refinery include three crude unit trains,
fluid catalytic cracking, petroleum cok-
ing and calcining, hydrodesulfurization
units, naphtha reformers, isomerization
and aromatics recovery units, ethyl tert-
butyl ether (ETBE), and alkylation units
that enable it to produce a high percent-
age of transportation fuels, such as
gasoline and diesel fuels. Other prod-
ucts include petrochemical feedstocks,
home heating oil, bitumen, and anode
and fuel-grade petroleum coke.
Phillips 66 distributes the majority of
its share of the refined products to
customers in southwest Germany, north-
ern Switzerland and western Austria by
truck, railcar, barge and pipeline.
Humber Refinery
MiRO Refinery1
221CRUDE CAPACITY (MBD)
240TOTAL CAPACITY (MBD)
85GASOLINE CAPACITY (MBD)
115DISTILLATE CAPACITY (MBD)
11.6NELSON COMPLEXITY FACTOR
81CLEAN PRODUCT YIELD CAPABILITY
%
ATLANTIC BASIN/EUROPE
58CRUDE CAPACITY (MBD)
60TOTAL CAPACITY (MBD)
25GASOLINE CAPACITY (MBD)
25DISTILLATE CAPACITY (MBD)
7.9NELSON COMPLEXITY FACTOR
85CLEAN PRODUCT YIELD CAPABILITY
%
ATLANTIC BASIN/EUROPE
All crude capacities as of Jan. 1, 2013. 1Reflects Phillips 66’s equity share.
46
PHILLIPS 66 COMPANY PROFILE 2013
MARkEtING AND SPECIALtIES
2.1
Phillips 66 Marketing and Specialties segment includes
marketing of gasoline, diesel and jet fuel in the United
States, as well as marketing of gasoline and diesel in
Europe. the segment also includes the company’s
lubricants, flow improver and power generation
businesses.
Million barrels per day of Marketing petroleum product sales in 2012
47
PHILLIPS 66 COMPANY PROFILE 2013
Phillips 66 manufactures and markets flow improvers, which maximize the flow potential of pipelines while increasing performance.
48
PHILLIPS 66 COMPANY PROFILE 2013
• Continued focus on safety and operating excellence, with the U.K.
and Ireland marketing businesses completing the 11th consecutive
year without an employee recordable injury.
• Successfully introduced the KickBack® loyalty program into multiple
branded U.S. fuel markets.
• Increased aviation network of Fixed Based Operators to more than
875 locations in the United States.
• Opened 20 new JET® stations and achieved more than 10 percent
market share in Germany through a highly efficient retail network.
• Celebrated 10-year anniversary of exclusive agreement with
South Korean base oil supplier, S-Oil, to distribute and market
high-viscosity-index base oils in North America.
• Extended key strategic Original Equipment Manufacturer
customer contracts in lubricants.
• Achieved record throughput at Savannah Lubricants Plant and
record lubricants export volume at Los Angeles Terminal.
• Expanded Phillips Specialty Products Inc. (PSPI) plant capacity.
• Experienced record volumes in PSPI driven by increased heavy oil
product sales and North American shale growth.
MARKETING PETROLEUM PRODUCT SALESMMBD
RETURN ON CAPITAL EMPLOYED1 Percent
2012 ACCOMPLISHMENtS
MARkEtING AND SPECIALtIES OVERVIEWOPERAtING HIGHLIGHtS 2012 2011 2010
Marketing gasoline sales (MBD) 1,101 1,204 1,196
Marketing distillate sales (MBD) 985 1,039 1,033
Marketing petroleum product sales (MBD) 2,103 2,261 2,245
Flow improver volume growth (percent) 10 23 41
Combined total recordable rate (safety incidents per 200,000 hours) 0.20 0.13 0.23
10 1211
0
7.55
15
22.5
30
564
1H13
511
10 1211
2.1
1H13
2.2
2.2 2.3
10 1211
2.1
2.7
2.2
10 1211
17
1H13
29
17
12
10 1211
17
17
12
424
550
10 1211
564
424
550
Adjusted Earnings
This row if placed on darkbackground color
This row if placed on Lightbackground color
Petroleum Product Sales
Return on Capital Employed
0
100
200
300
400
500
600
0.0
0.5
1.0
1.5
2.0
2.5
3.0
10 1211
0
7.55
15
22.5
30
564
1H13
511
10 1211
2.1
1H13
2.2
2.2 2.3
10 1211
2.1
2.7
2.2
10 1211
17
1H13
29
17
12
10 1211
17
17
12
424
550
10 1211
564
424
550
Adjusted Earnings
This row if placed on darkbackground color
This row if placed on Lightbackground color
Petroleum Product Sales
Return on Capital Employed
0
100
200
300
400
500
600
0.0
0.5
1.0
1.5
2.0
2.5
3.0
10 1211
0
7.55
15
22.5
30
564
1H13
511
10 1211
2.1
1H13
2.2
2.2 2.3
10 1211
2.1
2.7
2.2
10 1211
17
1H13
29
17
12
10 1211
17
17
12
424
550
10 1211
564
424
550
Adjusted Earnings
This row if placed on darkbackground color
This row if placed on Lightbackground color
Petroleum Product Sales
Return on Capital Employed
0
100
200
300
400
500
600
0.0
0.5
1.0
1.5
2.0
2.5
3.0
ADJUSTED EARNINGS$ million
11H 2013 ROCE is annualized.
MARKET SHARE3
10-20% <10%
EUROPE MARKETING2 AS OF DEC. 31, 2012
NORTHSEA
GERMANY
SWITZERLANDAUSTRIA
U.K.310
770
250145
BALTIC SEA
MILES
0 200
49
PHILLIPS 66 COMPANY PROFILE 2013
PACIFIC OCEAN
HAWAII
ALASKA
BERINGSEA
MILES
0 500
MILES
0 100 LOS ANGELES
PORTLAND
HARTFORD
SWEENY
BRYAN GULF COAST
SAVANNAH
FUELS MARKET SHARE1
>20%
MILES
0 200
10-20% 5-10% <5%
ATLANTIC OCEAN
GULF OF MEXICO
LUBRICANTS PLANT
POWER GENERATION FACILITY
FLOW IMPROVER PLANT
U.S. MARKETING AND SPECIALTIES AS OF DEC. 31, 2012
1 Market share based on all Phillips 66 stations as a percentage of total stations in state.2 Map does not include 200 sites with brand licensing agreements.3 Market share based on sold fuel volumes.
50
PHILLIPS 66 COMPANY PROFILE 2013
MARkEtINGUnited States
In the United States, Phillips 66 markets gasoline, diesel and aviation
fuel. Most marketing outlets are owned and operated by independent
dealers and wholesale marketers. The majority of these outlets are
branded with Phillips 66®, Conoco® or 76® and feature gasolines that
have been recognized as TOP TIER™ by leading automakers. These
operations are strategically served by the company’s refineries and
transportation systems.
In its wholesale operations, Phillips 66 utilizes a network of branded
marketers and dealers operating approximately 7,100 outlets. Refined
products are sold on both a branded and unbranded basis. The
company emphasizes the wholesale channel of trade; however, we also
hold brand licensing agreements with approximately 500 other sites.
In addition to automotive gasoline and diesel fuel, the company pro-
duces aviation fuels and markets them through independent market-
ers and dealers at approximately 900 Phillips 66® aviation-branded
fixed-base operations, the largest branded network in the U.S. general
aviation industry.
Europe
In Europe, Phillips 66 mar-
kets motor fuels under JET®
through company-owned out-
lets in Germany and Austria
and dealer-owned outlets
in the United Kingdom. The
company also has an equity
interest in a joint venture
that markets motor fuels in
Switzerland under Coop®.
Phillips 66 markets aviation fuels, LPG, heating oils, transportation
fuels, marine bunker fuels, fuel coke and bitumen to commercial
customers and into the bulk or spot market. In addition, total Irish
refinery production is sold to local and international oil companies and
independent resellers in the inland Irish market.
As of Dec. 31, 2012, M&S had approximately 1,425 marketing
outlets in its European operations, of which approximately 915 were
company owned and 310 were dealer owned. The company also held
brand licensing agreements with approximately 200 sites. Addition-
ally, through joint venture operations in Switzerland, Phillips 66 has
interests in 250 other sites.
MARkEtINGAND SPECIALtIES
Phillips 66 markets fuels and lubricants under these brands.
®® ®
51
PHILLIPS 66 COMPANY PROFILE 2013
POWER GENERAtIONPhillips 66 owns a 50 percent operating interest in Sweeny Cogen-
eration, LP, located within the Sweeny Refinery. The joint venture’s
440-megawatt facility provides steam and electricity to the Sweeny
Refinery and sells excess power under a long-term sales agreement.
Other smaller cogeneration facilities in the Phillips 66 portfolio are
included within the assets of the refineries that they support.
In July 2013, we sold the Immingham Combined Heat and Power Plant
located in North Lincolnshire, UK.
SPECIALtIES BUSINESSES Phillips 66 manufactures and markets specialty products, including
petroleum coke products, waxes, solvents, polypropylene and pipeline
flow improvers, which are sold to commercial, industrial and wholesale
buyers worldwide.
PSPI
PSPI supplies flow improver products to customers on six continents.
LiquidPower™ flow improvers maximize the flow potential of pipelines
while increasing their operational flexibility, capacity and economic per-
formance. Millions of barrels of crude oil, refined products and select
water applications are treated with LiquidPower™ flow improvers.
Petroleum Coke
Phillips 66 is the largest global producer of needle coke for manufac-
turing electric arc furnace electrodes, supported by our outstanding
manufacturing expertise, technological leadership and rigorous quality
control. Our experience in carbon upgrading also supports the supply of
green and calcined specialty cokes to the steel, aluminum and titanium
dioxide industries in multiple countries from our refineries located in
North America and the United Kingdom.
Solvents
Phillips 66 manufactures and markets a broad array of specialty sol-
vents for use in a variety of industrial and chemical manufacturing.
Polypropylene
Phillips 66 produces polypropylene resins at its world-scale polypropyl-
ene plant adjacent to its Bayway Refinery in Linden, N.J. The product
is sold under COPYLENE®. The plant is one of the newest and largest
polypropylene production units in the northeast U.S., with a nameplate
capacity of 775 million pounds per year.
LUBRICANtS Finished Lubricants
Phillips 66 is one of the largest finished lubricants suppliers in the
United States. It manufactures and markets four major lubricant
brands: Phillips 66®, Conoco®, 76® and Kendall® motor oil. The
combination of these diverse brands, along with supplying a number of
private-label and original-equipment manufacturers in North America,
gives Phillips 66 a position in all key lubricants markets. The distribu-
tion network consists of marketers, mass merchandise stores, fast
lube stores, tire stores and automotive dealers.
Base Oil
The base oil marketing activities of Phillips 66 include the sale of Pure
Performance® hydrocracked base oils to an extensive list of customers
throughout the world and purchase of a wide range of base oils from
several North American refiners that fulfill the manufacturing needs of
the finished lubricants product lines. Additionally, Phillips 66 has an
exclusive agreement with Korea’s S-Oil Corporation to distribute and
market their high-viscosity-index base oils in North America.
Phillips 66 markets specialty products under these brands.
Lubricants plant in Los Angeles, Calif.
CONSOLIDAtEDEarnings (Loss) $2,365 $4,124 $ 4,775 $735Adjustments: Impairments – 979 318 1,118 Canceled projects – – 28 29 Net (gain)/loss on asset sales (23) (106) (1,545) (116) Gain on share issuance by equity affiliate (27) – – – Severance accruals – – 15 28 Premium on early debt retirement – 89 – – Repositioning costs – 55 – – Pending claims and settlements (16) 34 – (35) Repositioning tax impacts – 177 – – Exit of business line 34 – – – Tax law impacts (17) – – – Hurricane-related costs – 35 – – Adjusted earnings $2,316 $5,387 $3,591 $1,759
MIDStREAMEarnings (Loss) $200 $53 $2,149 $ 386Adjustments: Impairments – 330 4 – Net (gain)/loss on asset sales – – (1,618) – Gain on share issuance by equity affiliate (27) – – – Pending claims and settlements – (23) – – Hurricane-related costs – 2 – – Adjusted earnings $173 $362 $535 $386
CHEMICALSEarnings (Loss) $463 $823 $716 $486Adjustments: Impairments – 27 – – Premium on early debt retirement – 89 – – Repositioning tax impacts – 41 – – Adjusted earnings $463 $980 $716 $486
REFININGEarnings (Loss) $1,403 $3,217 $1,529 $(545)Adjustments: Impairments – 606 314 1,110 Canceled projects – – 28 29 Net (gain)/loss on asset sales – (104) 96 – Severance accruals – – 15 28 Pending claims and settlements – 19 – – Repositioning tax impacts – 73 – – Tax law impacts (13) – – – Hurricane-related costs – 33 – – Adjusted earnings $1,390 $3,844 $1,982 $622
MARkEtING AND SPECIALtIESEarnings (Loss) $520 $465 $573 $567Adjustments: Impairments – – – 8 Net (gain)/loss on asset sales (23) (2) (23) (116) Pending claims and settlements (16) 38 – (35) Repositioning tax impacts – 63 – – Exit of business line 34 – – – Tax law impacts (4) – – – Adjusted earnings $511 $564 $550 $424
RECONCILIAtION OF EARNINGS tO ADJUStED EARNINGS ($ MILLION) 1H 2013 2012 2011 2010
REFERENCE
52
PHILLIPS 66 COMPANY PROFILE 2013
53
PHILLIPS 66 COMPANY PROFILE 2013
PHILLIPS 66 - ROCENumerator ($MM) Net Income $2,370 $4,131 $4,780 $740 After-tax interest expense 90 160 11 1 GAAP ROCE earnings 2,460 4,291 4,791 741 Special Items (49) 1,263 (1,184) 1,024 Adjusted ROCE earnings $2,411 $5,554 $3,607 $1,765 Denominator ($MM) GAAP average capital employed* $27,970 $25,732 $25,064 $26,906 Annualized Adjusted ROCE 17% 22% 14% 7%Annualized GAAP ROCE 18% 17% 19% 3%
MIDStREAM - ROCENumerator ($MM) Net Income $205 $60 $2,154 $391 After-tax interest expense – – – – GAAP ROCE earnings 205 60 2,154 391 Special Items (27) 309 (1,614) – Adjusted ROCE earnings $178 $369 $540 $391 Denominator ($MM) GAAP average capital employed* $3,135 $3,030 $3,163 $3,289 Annualized Adjusted ROCE 11% 12% 17% 12%Annualized GAAP ROCE 13% 2% 68% 12%
CHEMICALS - ROCENumerator ($MM) Net Income $463 $823 $716 $486 After-tax interest expense – – – – GAAP ROCE earnings 463 823 716 486 Special Items – 157 – – Adjusted ROCE earnings $463 $980 $716 $486 Denominator ($MM) GAAP average capital employed* $3,649 $3,142 $2,563 $2,275 Annualized Adjusted ROCE 25% 31% 28% 21%Annualized GAAP ROCE 25% 26% 28% 21%
* Total equity plus total debt.
RECONCILIAtION OF EARNINGS tO ADJUStED EARNINGS ($ MILLION) 2013 YtD 2012 2011 2010REtURN ON CAPItAL EMPLOYED (ROCE) 1H 2013 2012 2011 2010
54
PHILLIPS 66 COMPANY PROFILE 2013
REFERENCE
REFINING - ROCENumerator ($MM) Net Income $1,403 $3,217 $1,529 $(545) After-tax interest expense – – – – GAAP ROCE earnings 1,403 3,217 1,529 (545) Special Items (13) 627 453 1,167 Adjusted ROCE earnings $1,390 $3,844 $1,982 $622 Denominator ($MM) GAAP average capital employed* $14,312 $14,331 $15,160 $16,829 Annualized Adjusted ROCE 19% 27% 13% 4%Annualized GAAP ROCE 20% 22% 10% -3%
MARkEtING AND SPECIALtIES - ROCENumerator ($MM) Net Income $520 $465 $573 $567 After-tax interest expense – – – – GAAP ROCE earnings 520 465 573 567 Special Items (9) 99 (23) (143) Adjusted ROCE earnings $511 $564 $550 $424 Denominator ($MM) GAAP average capital employed* $3,578 $3,411 $3,271 $3,421 Annualized Adjusted ROCE 29% 17% 17% 12%Annualized GAAP ROCE 29% 14% 18% 17%
* Total equity plus total debt.
REtURN ON CAPItAL EMPLOYED (ROCE) 1H 2013 2012 2011 2010
UNITS OF MEASURE
MBbls Thousands of Barrels
MBD Thousands of Barrels per Day
MMBD Millions of Barrels per Day
BCF Billion Cubic Feet
MCFD Thousands of Cubic Feet per Day
MMCFD Millions of Cubic Feet per Day
BCFD Billions of Cubic Feet per Day
MMLB/Y Millions of Pounds per Year
BLB/Y Billions of Pounds per Year
BTU British Thermal Units
TBTU Trillion British Thermal Units
BTUD British Thermal Units per Day
TBTUD Trillion British Thermal Units per Day
Lb/Mbbl Pounds per thousand barrels
COMMONLY USED ABBREVIATIONS
LPG Liquefied Petroleum Gas
NGL Natural Gas Liquids
OSHA Occupational Safety and Health Administration
ROCE Return on Capital Employed
DATA
Distillate capacity includes aviation and jet fuels.
The Nelson Complexity Factor calculation considers the variety and
capacity of the different processing units within a refinery. The higher
a refinery’s factor, the greater its secondary conversion capacity and
capability to produce higher-value products.
SAFE HARBOR STATEMENT
This Profile Book 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
Profile Book 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 crude
oil, NGL, and natural gas prices, and refining and petrochemical
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 crude oil, natural gas,
NGL, 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 Profile Book includes
non-GAAP financial measures, which are included to help facilitate
comparison of company operating performance across periods and
with peer companies. A reconciliation of these non-GAAP measures
to the nearest corresponding GAAP measure is included in the
reference section.
© Phillips 66 Company. 2013. All rights reserved.
About Phillips 66
Built on more than 130 years of experience,
Phillips 66 is a growing energy manufacturing and
logistics company with high-performing Midstream,
Chemicals, Refining, and Marketing and Specialties
businesses. This diverse portfolio enables Phillips 66
to capture opportunities in a changing energy
landscape. Headquartered in Houston, the company
has 13,500 employees who are committed to
operating excellence and safety. Phillips 66 is a
Fortune 5 company with $50 billion of assets
as of June 30, 2013. For more information, visit
www.phillips66.com or follow us on Twitter
@Phillips66Co.