PHILLIPS 66 2016 Fact Book -...

2016 Fact BookPHILLIPS 66

Table of Contents

Company Overview 1

Financial Highlights 4

Midstream 6

Chemicals 20

Refining 26

Marketing and Specialties 38

Non-GAAP Reconciliations 42

Contact InformationHeadquarters2331 CityWest Blvd.Houston, TX 77042281-293-6600

RegisteredOffice2711 Centerville RoadWilmington, DE 19808

Phillips 66 Investor RelationsRosy Zuklic, General Manager, Investor Relations

C.W. Mallon, Manager, Investor Relations

Telephone: 1-832-765-2297Email: [email protected]: investor.phillips66.com

Phillips 66 Media RelationsTelephone: 1-855-841-2368Email: [email protected]: www.phillips66.com/newsroom

AnelectronicfileofthisFactBookcanbeobtained by visiting www.phillips66.com, selecting the Investors tab and then Financial & Operating Information. The fileislocatedintheAnnualReportssection of that page.

ON THE COVER: Phillips 66 100,000 barrels-per-day NGL fractionator in Old Ocean, Texas.

A deep understanding of these businesses enables the company to grow and to allocate capital to the best opportunities. Headquartered in Houston, Phillips 66 has 14,000 employees committed to safety and operating

excellence. As of Dec. 31, 2015, we had $49 billion in assets. The company’s stock trades on the New York Stock Exchange under the ticker symbol PSX, while Phillips 66 Partners trades under the ticker symbol PSXP.

Company Overview

Phillips 66 is a diversified energy manufacturing and logistics company with a portfolio of integrated businesses: Midstream, Chemicals, Refining, and Marketing and Specialties. Our company processes, transports, stores and markets fuels and products globally. Phillips 66 Partners LP, our master limited partnership, is an integral part of the portfolio.

MidstreamGathers, processes, transports and markets natural gas, and transports, fractionates and markets natural gas liquids in the United States. This segment also transports crude oil and other feedstocks to ourrefineriesandotherlocations;deliversrefinedand specialty products to market; and provides terminaling and storage services for crude oil and petroleum products. The Midstream segment includes our investment in Phillips 66 Partners LP and our 50 percent equity investment in DCP Midstream, LLC (DCP Midstream).

ChemicalsManufactures and markets petrochemicals and plastics worldwide. The segment consists of a 50 percent equity investment in Chevron Phillips Chemical Company LLC (CPChem). CPChem has advanced, proprietary product and process technologies; global marketing reach; cost-advantaged assets concentrated in resource-rich North America and the Middle East; and expertise in executing very large projects.

RefiningRefinescrudeoilandotherfeedstocksat14refineriesin the United States and Europe, and focuses on operating excellence, optimization, yield improvement and increasing margins. The business has a globalrefiningcapacity of 2.2 million barrels of crude oil per day.

Marketing and SpecialtiesMarketsrefinedpetroleumproducts (such as gasolines, distillates and aviation fuels), mainly in the United States and Europe. In the U.S., fuel is distributed under the Phillips 66, Conoco and 76 brands. In Europe, we distribute through JET and COOP branded outlets. The segment includes the manufacturing and marketingoffinishedlubricants and specialty products as well as power generation operations.

1

Strategic PrioritiesThe 14,000 employees of Phillips 66 are executing the strategy that has guided the company since its creation in 2012: maintain strong operating excellence, deliver profitablegrowth,enhancereturnsoncapital,growshareholder distributions and develop its employees to sustain a high-performing organization.

MAINTAIN STRONG OPERATING EXCELLENCE

For Phillips 66, operating excellence encompasses personalsafety,processsafety,reliability,costefficiencyand environmental stewardship. Safety is a core value. The company’s safety record in 2015 tied for its best ever. Phillips 66 is determined to be the safest and most reliable company in its industry.

By maintaining strong operating excellence, we protect each other, contribute to the well-being of the communities that support us, deliver quality products to customers and enhance shareholder value.

DELIVER PROFITABLE GROWTH

We are reshaping the company’s portfolio by investing capital in higher-valued businesses. We continuously test our capital allocation decisions through a range of economic and market scenarios.

Our 2016 consolidated capital budget is $3.9 billion, consisting of $2.6 billion of growth capital and $1.3 billion of sustaining capital. Most of the growth capital will fund infrastructure projects in our Midstream segment. The sustaining capital will focus on maintaining high levels ofsafetyandreliabilityinourRefiningbusiness.Our 2016 capital budget excludes our portion of planned capital spending by joint ventures DCP Midstream, CPChem and WRB totaling $1.4 billion, all of which are expected to be self-funded.

The Midstream segment is at the core of our growth plans. The segment consists of natural gas liquids (NGL) and transportation businesses, Phillips 66 Partners, and our 50 percent interest in DCP Midstream.

Through our 50-50 joint venture with Chevron, CPChem, we continue to invest in our high-return Chemicals segment. CPChem is one of the world’s leading petrochemical

companies, and its U.S. Gulf Coast petrochemicals project is approximately 80 percent complete with startup planned for the second half of 2017.

ENHANCE RETURNS ON CAPITAL

A disciplined capital allocation process ensures that we focus investments in projects that generate competitive returns throughout the business cycle. Phillips 66’s Refiningsegmentisasignificantcompetitorinthedomesticfuelsindustry,with11ofits14refineries located in the United States.

Through planned operating enhancements, we expect todriveefficiencyandimprovereturns.Themajorityof the improvement will come from higher product yields and a focus on controllable costs. In early 2015, we sold the Bantry Bay terminal, a storage complex located in Ireland. And in August 2016, we announced the sale ofourWhitegateRefinery,locatednearCork,Ireland. The transaction is expected to close in the third quarter of 2016.

GROW SHAREHOLDER DISTRIBUTIONS

During 2015, we increased the dividend by 12 percent and returned $2.7 billion of capital to shareholders through dividends and share repurchases. Phillips 66 is committed to paying a regular dividend that is secure, has a competitive yield and increases annually. In May 2016, Phillips 66 announced a 12.5 percent increase in the quarterly dividend, the sixth increase since the company’s formation. From the company’s 2012 inception to June 30, 2016, we have returned $12.3 billion of capital to shareholders.

BUILD ON PHILLIPS 66’s HIGH-PERFORMING ORGANIZATION

Our purpose is to provide energy and improve lives, and we are governed by three strongly held values: safety, honor and commitment. Our employees are committed to building capability, pursuing excellence and doing the right thing. We strive to attract, train, develop and retain individuals with the knowledge and skills to implement our business strategy and the character to live our values.

Company Overview

PHILLIPS 66 2016 FACT BOOK2

FREEPORT TERMINAL

CLEMENS STORAGE CAVERNS

BEAUMONT MARINE TERMINAL

Texas-Based Midstream Assets

3

Financial Highlights(Millions of Dollars Except Per Share Amounts) 2015 2014 2013

Net income attributable to Phillips 66 $ 4,227 $ 4,762 $ 3,726

Midstream 13 507 469

Chemicals 962 1,137 986

Refining 2,555 1,771 1,747

Marketing and Specialties 1,187 1,034 894

Corporate (490 ) (393 ) (431 )

Adjusted earnings 4,193 3,782 3,643

Midstream 248 508 469

Chemicals 952 1,209 986

Refining 2,527 1,576 1,734

Marketing and Specialties 947 882 885

Corporate (481 ) (393 ) (431 )

Adjusted EBITDA 8,513 7,792 7,408

Midstream 843 1,170 1,067

Chemicals 1,701 2,101 1,710

Refining 4,774 3,449 3,583

Marketing and Specialties 1,516 1,401 1,413

Corporate (321 ) (329 ) (365 )

Average Capital Employed 31,749 29,595 28,130

Capital Expenditures and Investments 5,764 3,773 1,779

Debt-to-capital ratio 27 % 28 % 21 %

Net-debt-to-capital ratio 20 % 13 % 3 %

Cash and cash equivalents 3,074 5,207 5,400

Total assets 48,580 48,692 49,769

Total debt 8,887 8,635 6,125

Total equity 23,938 22,037 22,392

Cash from operating activities 5,713 3,529 6,027

Cash dividends paid per share of common stock (dollars) 2.18 1.89 1.33

ADJUSTED EARNINGS

($ in millions)CUMULATIVE TOTAL SHAREHOLDER RETURN

($100 invested on May 1, 2012)

ADJUSTED RETURN ON CAPITAL EMPLOYED (ROCE)

5/1/12 12/31/12 12/31/13 12/31/15

$150

$200

$300

$250

$100

Phillips 66Peer Group*

S&P 500S&P 100

12/31/14 15

4,1933,7823,643

1413 15

14%14%14%

1413

* Celanese, Delek, Dow, Eastman Chemical, Energy Transfer, Enterprise Products, HollyFrontier, Huntsman, Marathon Petroleum, Oneok, PBF Energy, Targa Resources, Tesoro, Valero, Western Refining, Westlake Chemical

4 PHILLIPS 66 2016 FACT BOOK

Continuous improvement in safety, environmental stewardship,reliabilityandcostefficiencyisfundamentalfor our company and employees. We employ rigorous training and audit programs to drive ongoing improvement in both personal and process safety as we strive for zero incidents. Controlling operating expenses and overhead

costs, within the context of our commitment to safety and environmental stewardship, is a high priority. We actively monitor these costs using various methodologies. Byoptimizingutilizationratesatourrefineriesthroughreliable and safe operations we are able to capture the value available in the market.

TOTAL RECORDABLE RATES (Incidents per 200,000 hours worked)

OPERATING COSTS AND SG&A ($ in billions)

REFINING ENVIRONMENTAL METRICS

REFINING CAPACITY UTILIZATION (Percent)

Planned Maintenance & Turnarounds

Industry Average1

1 Industry averages for: Phillips 66, American Fuel & Petrochemical Manufacturers (U.S. refining sector); CPChem, American Chemistry Council; DCP, Gas Processors Association.

Phillips 66 CPChem DCP

Operating Excellence

14 15

300317430

279

1312

14

6.15.7

6.0

5.7

1312 15 14

94%93%

91%

93%

1312

3% 3% 4%

15

5%

14 151312

1.5

0.5

1.0

0

141312

0

15

1.5

0.5

1.0

141312

0

15

1.5

0.5

1.0

5

Midstream

SWEENY FRACTIONATOR ONEPHILLIPS 66 2016 FACT BOOK6

OPERATING HIGHLIGHTS

Midstream Overview

1 Includes CPChem railcars that Phillips 66 manages.

Midstream

This business gathers, processes, transports, fractionates and markets natural gas and natural gas liquids. In addition, the segment transports crude oil and other feedstocks to our refineries and other locations, delivers refined and specialty products to market and provides storage services for crude oil and petroleum products. This segment consists of three business lines: NGL, Transportation and DCP Midstream.

2015 2014 2013

NGL

NGL fractionated (MBD) 112 109 115

TRANSPORTATION

Approximate miles of pipeline 18,000 18,000 18,000

Approximate number of railcars managed1 12,300 11,400 10,000

Crude-dedicated railcars 3,700 3,500 2,000

Crude oil terminals 16 15 14

Finished products terminals 39 39 39

LPG terminals 5 5 5

Storage locations 37 37 37

Combined total recordable rate (safety incidents per 200,000 hours) 0.29 0.20 0.14

DCP MIDSTREAM (100%)

Total natural gas throughput (TBtu/d) 7.1 7.3 7.1

NGL produced (MBD) 410 454 426


BEAUMONT TERMINAL

7

BillingsRe�nery

BorgerRe�nery

SweenyRe�nery

AllianceRe�nery

Lake CharlesRe�nery

San FranciscoRe�nery

Los AngelesRe�nery

FerndaleRe�nery

Bayway Re�nery

Rodeo

Santa Maria

Wood RiverRe�nery

Ponca CityRe�nery

KCP

L

Blue

Blue

Skelly-Belvieu

Skelly-Belvieu

Southern Hills*

So. Hills*

Sand Hills*

Powder R

iver

Powder R

iver

Medford*

Chi

shol

m

Roc

kies

Expr

ess

Rockies Express

Rockies Express

Eagle Ford Gathering Pipeline System*

NorthSpokane

RockSprings

E. St.Louis*

JeffersonCity*

Mount Vernon

NorthSalt Lake City

LosAngeles

GreatFalls

MosesLake

Sheridan

Linden

Har

bor

Tremley Pt. (MT)

Helena

Missoula

Spokane

Renton

Tacoma (MT)

Portland (MT)

Bozeman

Casper

Sacramento

Richmond (MT)

Torrance Colton

AlbuquerqueATA Amarillo

Oklahoma City Terminal

Glenpool North

PaolaGold*

Hartford (MT)*Kansas City*

Explorer*

Borger to Denver

Lubbock

SA

AL

Sunray

Wichita N.*

Cherokee North/Brown LineStandish*

Gold*

Cher

okee

East

Explorer*

Hear

tland

La Junta

Denver

Lincoln

Des Moines

CarsonWilmington

Pioneer

Seminoe

Sem

inoe

Yellowstone

Yellowstone

Wichita S.

Explorer*

Dakota Access Pipeline – DAPL (UC)

Ener

gy T

rans

fer (

UC)

Line 200Line 100

Line 300

Line 4

00

Oklahoma Crude Line

Line O

Bighorn

Glacier

Cutbank

West TexasCrude Gathering

North TexasCrude

Odessa

Wichita Falls

Roundup

Sacagawea (UC)*

Bear

toot

h

Cushing

Cher

okee

Sout

h

WA

Line

Line

80

Junction Terminal

Borger

Conway

FerndaleRail Terminal*

MissoulaRail Terminal Palermo

Rail Terminal*

Bayway Rail Term.*

Thompson FallsRail Terminal

Key Phillips 66 and Phillips 66 Partners U.S. Assets and Operations

Key Phillips 66 and Phillips 66 Partners U.S. Assets and Operations

As of May 31, 2016

MTUCGCF

*

Operated Pipelines

Jointly Owned or Non-Operated Pipelines

Re�nery

Rail Terminal

Fractionator

Pipeline System

Products Terminal

Crude Oil Terminal

LPG Terminal

Coke Terminal

Underground Storage

Denotes Marine Terminal

Denotes Under Construction

Denotes Gulf Coast Fractionator

Products Pipeline

Crude Oil Pipeline

NGL/LPG Pipeline

Idle Pipeline

Products Pipeline

Crude Oil Pipeline

Natural Gas Pipeline

NGL/LPG Pipeline

Denotes Phillips 66 Partners’ Asset

Shale Basins

MTUCGCF

*

Operated Pipelines

Jointly Owned or Non-Operated Pipelines

Re�nery

Rail Terminal

Fractionator

Pipeline System

Products Terminal

Crude Oil Terminal

LPG Terminal

Coke Terminal

Underground Storage

Denotes Marine Terminal

Denotes Under Construction

Denotes Gulf Coast Fractionator

Products Pipeline

Crude Oil Pipeline

NGL/LPG Pipeline

Idle Pipeline

Products Pipeline

Crude Oil Pipeline

Natural Gas Pipeline

NGL/LPG Pipeline

Denotes Phillips 66 Partners’ Asset

Shale Basins

BillingsRe�nery

BorgerRe�nery

SweenyRe�nery

AllianceRe�nery




FerndaleRe�nery

Bayway Re�nery

Rodeo

Santa Maria

Wood RiverRe�nery

Ponca CityRe�nery

KCP

L

Blue

Blue

Skelly-Belvieu

Skelly-Belvieu

Southern Hills*

So. Hills*

Sand Hills*

Powder R

iver

Powder R

iver

Medford*

Chi

shol

m

Roc

kies

Expr

ess

Rockies Express

Rockies Express

Eagle Ford Gathering Pipeline System*

NorthSpokane

RockSprings

E. St.Louis*

JeffersonCity*

Mount Vernon

NorthSalt Lake City

LosAngeles

GreatFalls

MosesLake

Sheridan

Linden

Har

bor

Tremley Pt. (MT)

Helena

Missoula

Spokane

Renton

Tacoma (MT)

Portland (MT)

Bozeman

Casper

Sacramento

Richmond (MT)

Torrance Colton



Glenpool North

PaolaGold*


Explorer*

Borger to Denver

Lubbock

SA

AL

Sunray

Wichita N.*


Gold*

Cher

okee

East

Explorer*

Hear

tland

La Junta

Denver

Lincoln

Des Moines

CarsonWilmington

Pioneer

Seminoe

Sem

inoe

Yellowstone

Yellowstone

Wichita S.

Explorer*


Ener

gy T

rans

fer (

UC)

Line 200Line 100

Line 300

Line 4

00

Oklahoma Crude Line

Line O

Bighorn

Glacier

Cutbank


North TexasCrude

Odessa

Wichita Falls

Roundup

Sacagawea (UC)*

Bear

toot

h

Cushing

Cher

okee

Sout

h

WA

Line

Line

80

Junction Terminal

Borger

Conway

FerndaleRail Terminal*

MissoulaRail Terminal Palermo

Rail Terminal*

Bayway Rail Term.*

Thompson FallsRail Terminal

BorgerRe�nery

SweenyRe�nery

AllianceRe�nery




Rodeo

Santa Maria

Wood RiverRe�nery

Ponca CityRe�nery

KCP

L

Blue

Blue

Skelly-Belvieu

Southern Hills*

Powder R

iver

Powder R

iver

Medford*

Clemens

Chi

shol

m

Roc

kies

Expr

ess

Rockies Express

Rockies Express

RockSprings

E. St.Louis*

JeffersonCity*

Mount Vernon

NorthSalt Lake City

LosAngeles

Sheridan

Casper

Sacramento

Richmond (MT)

Torrance Colton



Glenpool North

PaolaGold*


Borger to Denver

Lubbock

Pasadena*

Beaumont (MT)

SA

AL

Sunray

Wichita N.*


Gold*

Cher

okee

East

Explorer*He

artla

nd

La Junta

Denver

Lincoln

Des Moines

CarsonWilmington

Pioneer

Seminoe

Sem

inoe

Wichita S.

Westlake


Line 200Line 100

Line 300

Line 4

00

Oklahoma Crude Line

Line O

Bighorn


Clifton Ridge (MT)*

North TexasCrude

Odessa

Louisiana Crude Gathering

Wichita Falls

Freeport (MT, UC)

Pecan Grove (MT)*

Bear

toot

h

Cushing

LCPL Bayou Bridge (UC)*

Cher

okee

Sout

h

WA

Line

Line

80

Bayou Bridge*

Junction Terminal

Borger

Conway

GCF

Lake CharlesCoke Handling

Clemens Caverns*

Sweeny Fractionator One*

Midstream

Natural Gas LiquidsPhillips 66 holds interests in four natural gas liquids (NGL) fractionators and gathering systems at strategic NGL hubs in the United States. The 100,000 barrels- per-day (BPD) Sweeny Fractionator One is located in Old Ocean, Texas, and owned by Phillips 66 Partners. In addition, Phillips 66 owns: 22.5 percent of Gulf Coast Fractionators, which owns a fractionating facility in Mont Belvieu, Texas; 12.5 percent of the Enterprise Mont Belvieu fractionator; and 40 percent of the Conway fractionator, in Conway, Kansas.

Along with fractionators, Phillips 66 owns interests in several NGL gathering and interstate transmission pipeline systems. These pipelines gather and deliver raw or mixed NGL, also referred to as Y-Grade, to supply the company’s facilities at its joint-venture Borger RefineryinTexasandthefractionatorsinOldOcean,Mont Belvieu and Conway, as well as the Mont Belvieu market center.

Phillips 66 has supply and trading operations that manageNGLvolumerequirementsforitsrefineries and fractionators.

In December 2015, Phillips 66 began operating Sweeny FractionatorOne,whichiswithinourSweenyRefinerycomplex and supplies purity ethane and LPG to the

petrochemical industry and heating markets. The fractionator is supported by 250 miles of new pipelines and the Clemens Caverns storage facility located near Brazoria, Texas, with connectivity to local petrochemical customers, the Mont Belvieu market hub and our marine terminal in Freeport, Texas. In 2016 Phillips 66 Partners acquired the fractionator and associated caverns.

During 2015, construction progressed on the Freeport LPG Export Terminal located at the site of our existing marine terminal in Freeport, Texas. The terminal expansion will leverage our transportation and storage infrastructure to supply petrochemical, heating and transportation markets globally. In addition, a 100,000 BPD unit to upgrade domestic propane for export is being installed near Sweeny Fractionator One. Upon completion, which is expected by year-end 2016, the LPG export terminal will have an initial export capacity of 150,000 BPD of LPG with a ship-loading rate of 36,000 barrels per hour. The existing marine terminal is currently exporting 10,000 to 15,000 BPD of natural gasoline (C5+) from Sweeny Fractionator One.

Sweeny Fractionator One and the Freeport LPG Export Terminal represent a combined capital investment of more than $3 billion.

FREEPORT LPG EXPORT TERMINAL


TransportationPhillips 66 owns or leases logistics assets that provide environmentally safe, strategic and timely delivery of crude oil, refinedproducts,naturalgasandNGL.Theseassetsconsistofpipelinesystems;refinedproduct,crudeoilandLPGstorageterminals; a petroleum coke-handling facility; marine vessels; railcars; and trucks.

We’re investing in our Transportation assets to support third-party as well as Phillips 66’s operations. The Beaumont Terminal in Nederland, Texas, is the largest terminal in our portfolio and is strategically located on the U.S. Gulf Coast, providing deep-water access and multiple interconnections withmajorcrudeoilandrefinedproductspipelines.Ourterminal has the capacity to store 4.7 MMBbl of crude oil and 2.4MMBblofrefinedproducts.Wecurrentlyhave3.2MMBblof additional crude and products storage capacity under construction, 2 million of which are expected to be in service by the end of 2016. The terminal’s storage capacity is expandable to 16 MMBbl. In addition, it has a barge dock and two marine docks capable of handling Aframax tankers as well as rail andtruckloadingandoffloadingfacilities.

Construction has progressed on our two crude oil pipeline systems that are being developed by joint ventures: Dakota Access Pipeline (DAPL) and Energy Transfer Crude Oil Pipeline (ETCOP). We own 25 percent interests in both joint ventures. DAPL is expected to deliver 470,000 BPD of crude oil from the Bakken/Three Forks production area in North Dakota to market centers in the Midwest. ETCOP will provide crude oil transportation service from the Midwest to the Gulf Coast, including our Beaumont Terminal. Mechanical completion of both joint venture pipeline projects is expected in the fourth quarter of 2016.

BEAUMONT TERMINAL (TODAY)

7.1 MMBbl of storage capacity

BEAUMONT TERMINAL (FUTURE PLAN)

Long-term plan is to expand facility to 16 MMBbl of total capacity

9

Phillips 66 PartnersPhillips 66 Partners is a growth-oriented, master limited partnership formed by Phillips 66. The partnership was created to own, operate, develop and acquire primarily fee-based crude oil,refinedproductandNGLpipelines,terminals,andothertransportation and midstream assets.

Headquartered in Houston, Phillips 66 Partners completed its initial public offering in July 2013, and its common units trade on the New York Stock Exchange under the ticker symbol PSXP. The partnership has executed more than $3 billion in acquisitions in the last three years.

Phillips 66 has majority ownership of Phillips 66 Partners and acts as the general partner with management and operating responsibility for the business. The remaining limited partner (LP) common units are held by the public.

Thepartnership’sassetsconsistofcrudeoil,refined products and NGL pipeline, storage and terminaling systems, and an NGL fractionator, which provide stable, fee-based revenues.SincetheIPOandthroughthefirstquarterof2016, Phillips 66 Partners has grown its distribution per LP unit by a 39 percent compound annual growth rate.

Phillips 66 Partners holds one-third ownership interests in the Sand Hills and Southern Hills NGL pipelines, which connect NGL production from the Eagle Ford Shale Basin, Permian Basin and Midcontinent to Texas Gulf Coast markets. DCP Midstream operates the pipelines, which began service in 2013. PSXP now also owns Sweeny Fractionator One and the associated Clemens Storage Caverns.

The partnership continues to make progress on its organic growth projects. In April 2016, Bayou Bridge Pipeline, LLC, (a joint venture between Phillips 66 Partners, Energy Transfer Partners (ETP) and Sunoco Logistics Partners (SXL)) began operations on the segment of its pipeline from Nederland, Texas to Lake Charles, Louisiana. Progress continues on the section from Lake Charles to St. James, Louisiana, with commercial operations for this segment expected to begin in the second half of 2017. This remaining section of the pipeline will be

Midstream

PALERMO RAIL TERMINAL


constructed by ETP. ETP and SXL each hold a 30 percent interest in the joint venture. On Dec. 1, 2015, Phillips 66 Partners acquired Phillips 66’s 40 percent equity interest in Bayou Bridge.

In December 2015 Phillips 66 Partners began operating the Palermo Rail Terminal, which provides railcar-loading from truck deliveries and is located on a 710-acre site near Palermo, North Dakota. Its current capacity of 100,000 BPD is expandable to 200,000 BPD. Phillips 66 Partners holds a 70 percent interest in the joint venture that owns the terminal.

By the end of 2016, the terminal is expected to connect to the Sacagawea Pipeline, currently under construction, which will further enhance logistical options for transporting crude from the Bakken region. Phillips 66 Partners will operate the Sacagawea Pipeline and owns 44 percent of this asset.

MEDFORD SPHERES

11

DCP MidstreamDCP Midstream, LLC is owned equally by Phillips 66 and Spectra Energy. Headquartered in Denver, Colorado, with 2,900 employees and $14 billion of assets as of December 31, 2015, DCP Midstream is one of the largest natural gas gatherers and processors and one of the largest NGL producers and marketers in the United States. As of December 31, 2015, DCP Midstream has natural gas storage capacity of 13 billion cubic feet (BCF). Its operations gather and transport raw natural gas and NGL through approximately 66,200 miles of pipeline. The collected gas is processed at 63 plants and treaters owned or operated by DCP Midstream. It also owns or operates 12 NGL fractionators.

DCP Midstream sponsors a master limited partnership, DCP Midstream Partners LP (DCP Partners). The partnership gathers, compresses, treats, processes, transports, stores and sells natural gas. It also produces, fractionates, transports, stores and sells NGL and recovers and sells condensate. DCP Partners is also a leading distributor of propane. The partnership’s units trade on the New York Stock Exchange under the ticker symbol DPM.

Including the Sand Hills, Southern Hills, Texas Express and Front Range pipelines, DCP Midstream has approximately 4,600 miles of NGL pipelines across its system, as of December 31, 2015. These pipelines connect plants in the Denver-Julesburg (DJ), Midcontinent and Permian basins and Eagle Ford shale to premium markets on the Texas Gulf Coast.

During 2015, the Sand Hills Pipeline laterals were placed into service. Pipeline capacity expansion is underway and expected to be in service in mid-2016. Construction began in March 2015 on DCP Partners’ gathering system in the DJ Basin, named the Grand Parkway gathering project. This 25-mile gathering expansion went into service in early 2016.

DCP Partners’ Lucerne 2 Plant went into service in June 2015. The natural gas processing plant increases the partnership’s processing capacity in the DJ Basin to approximately 400 MMCFD, with DCP Midstream holding another 400 MMCFD of capacity in the DJ Basin. DCP Partners also holds an ownership interest in a joint venture that constructed the Keathley Canyon Connector, a 215-mile subsea natural gas gathering pipeline for production from the Keathley Canyon, Walker Ridge and Green Canyon areas in the central deep-water Gulf of Mexico. The pipeline wasplacedintoserviceinthefirstquarterof2015.

DCP Midstream’s expansion of the National Helium Plant in Liberal, Kansas, was completed during the second half of 2015. The plant has a capacity of 600 MMCFD, and the project enhances liquids recovery capability. DCP Midstream completed a 200 MMCFD sour natural gas processing plant, the Zia II Plant, in the fourth quarter of 2015, with associated gathering system expansions in the Permian Basin.

Midstream

DCP MIDSTREAM PARTNERS’ GOLIAD PLANT


Keathley Canyon Connector

Wattenberg

Black Lake

Sand HillsSeabreeze/Wilbreeze

Front Range

Texas ExpressSouthern Hills

Panola

DCP MIDSTREAM AND DCP MIDSTREAM PARTNERS ASSETS as of December 31, 2015

G&P Plant

Third-party OperatedG&P PlantThird-party OperatedFractionator

NGL PipelineCombined G&P/ Fractionator Facility Natural Gas Pipeline

Production Basin

Expansion/Restart

13

PHILLIPS 66 MAJOR PIPELINE SYSTEMS as of May 31, 2016*

NAME ORIGINATION/TERMINUS INTEREST SIZE LENGTH GROSS CAPACITY (Percent) (Miles) (MBD)

CRUDE AND FEEDSTOCKS

Cushing Cushing,OK/PoncaCity,OK 100 18″ 62 130

Glacier CutBank,MT/Billings,MT 79 8″-12″ 865 126

LineO Cushing,OK/Borger,TX 100 10″ 276 37

Line80 Gaines,TX/Borger,TX 100 8″,12″ 237 28

Line100 Taft,CA/LostHills,CA 100 8″,10″,12″ 79 54

Line200 LostHills,CA/Rodeo,CA 100 12″,16″ 228 93

Line300 Nipomo,CA/ArroyoGrande,CA 100 8″,10″,12″ 56 48

Line400 ArroyoGrande,CA/LostHills,CA 100 8″,10″,12″ 147 40

LouisianaCrudeGathering Rayne,LA/Westlake,LA 100 4″-8″ 80 25

NorthTexasCrude WichitaFalls,TX 100 2″-16″ 224 28

OklahomaMainline WichitaFalls,TX/PoncaCity,OK 100 12″ 217 100

SweenyCrude Sweeny,TX/Freeport,TX 100 12″,24″,30″ 56 265

WALine Odessa,TX/Borger,TX 100 12″,14″ 289 104

LPG

BlueLine Borger,TX/EastSt.Louis,IL 100 8″-12″ 688 29

BrownLine PoncaCity,OK/Wichita,KS 100 8″,10″ 76 26

ConwaytoWichita Conway,KS/Wichita,KS 100 12″ 55 38

Medford PoncaCity,OK/Medford,OK 100 4″-6″ 42 10

SweenyNGLLines Sweeny,TX/MontBelvieuandFreeport,TX 100 10″-20″ 246 842

NATURAL GAS

RockiesExpress Meeker,CO/Clarington,OH 25 36″-42″ 1,712 1.8BCFD

NGL

Chisholm Kingfisher,OK/Conway,KS 50 4″-10″ 202 42

PowderRiver SageCreek,WY/Borger,TX 100 6″-8″ 705 14

Skelly-Belvieu Skellytown,TX/MontBelvieu,TX 50 8″ 571 45

SweenyNGL Brazoria,TX/Sweeny,TX 100 20″ 18 204

TXPanhandleY1/Y2 Sher-Han,TX/Borger,TX 100 3″-10″ 299 61

Midstream

*Table updated to reflect significant asset changes.


PHILLIPS 66 MAJOR PIPELINE SYSTEMS as of May 31, 2016

NAME ORIGINATION/TERMINUS INTEREST SIZE LENGTH GROSS CAPACITY (Percent) (Miles) (MBD)

PETROLEUM PRODUCTS

ATALine Amarillo,TX/Albuquerque,NM 50 6″,10″ 293 34

BorgertoAmarillo Borger,TX/Amarillo,TX 100 8″,10″ 93 76

Borger-Denver McKee,TX/Denver,CO 70 6″-12″ 405 38

CherokeeEast Medford,OK/Mt.Vernon,MO 100 10″,12″ 287 55

CherokeeNorth PoncaCity,OK/ArkansasCity,KS 100 10″ 29 57

CherokeeSouth PoncaCity,OK/OklahomaCity,OK 100 8″ 90 46

Harbor Woodbury,NJ/Linden,NJ 33 16″ 80 171

Heartland1 McPherson,KS/DesMoines,IA 50 8″,6″ 49 30

LAXJetLine Wilmington,CA/LosAngeles,CA 50 8″ 19 50

LosAngelesProducts Torrance,CA/LosAngeles,CA 100 6″,12″ 22 112

Pioneer Sinclair,WY/SaltLakeCity,UT 50 8″,12″ 562 63

Richmond Rodeo,CA/Richmond,CA 100 6″ 14 26

SAAL Abernathy,TX/Lubbock,TX 54 6″ 19 30

SAAL Amarillo,TX/Abernathy,TX 33 6″ 102 33

Seminoe Billings,MT/Sinclair,WY 100 6″-10″ 342 33

TorranceProducts Wilmington,CA/Torrance,CA 100 10″,12″ 8 161

WatsonProductsLine Wilmington,CA/LongBeach,CA 100 20″ 9 238

Yellowstone Billings,MT/MosesLake,WA 46 6″-10″ 710 66

1 Total pipeline system is 419 miles. Phillips 66 has ownership interest in multiple segments totaling 49 miles.

BEAUMONT TERMINAL

15

Midstream

PHILLIPS 66 FINISHED PRODUCTS TERMINALS as of May 31, 2016

GROSS GROSS NAME LOCATION INTEREST STORAGE CAPACITY RACK CAPACITY (Percent) (MBbl) (MBD)

Albuquerque New Mexico 100 244 18

Amarillo Texas 100 277 29

Beaumont Texas 100 2,400 8

Billings Montana 100 88 16

Bozeman Montana 100 113 13

Colton California 100 211 21

Denver Colorado 100 310 43

Des Moines Iowa 50 206 15

Glenpool North Oklahoma 100 366 19

Great Falls Montana 100 198 12

Helena Montana 100 178 10

La Junta Colorado 100 101 10

Lincoln Nebraska 100 219 21

Linden New Jersey 100 429 121

Los Angeles California 100 116 75

Lubbock Texas 100 179 17

Missoula Montana 50 368 29

Moses Lake Washington 50 186 13

Mount Vernon Missouri 100 363 46

North Salt Lake Utah 50 657 41

Oklahoma City Oklahoma 100 352 48

Ponca City Oklahoma 100 51 23

Portland Oregon 100 664 33

Renton Washington 100 228 20

Richmond California 100 334 28

Rock Springs Wyoming 100 125 19

Sacramento California 100 141 13

Sheridan Wyoming 100 86 15

Spokane Washington 100 351 24

Tacoma Washington 100 307 17

Tremley Point New Jersey 100 1,593 39

Westlake Louisiana 100 128 16

Wichita Falls Texas 100 303 15


PHILLIPS 66 CRUDE TERMINALS as of May 31, 2016

GROSS NAME LOCATION INTEREST STORAGE CAPACITY (Percent) (MBbl)

Beaumont Texas 100 4,704

Billings Montana 100 270

Borger Texas 100 721

Cushing Oklahoma 100 700

Junction California 100 523

McKittrick California 100 237

Odessa Texas 100 523

Ponca City Oklahoma 100 1,200

Santa Margarita California 100 335

Santa Maria California 100 112

Tepetate Louisiana 100 152

Torrance California 100 309

Wichita Falls Texas 100 240

OTHER TERMINALS as of May 31, 2016

GROSS NAME LOCATION INTEREST LOADING CAPACITY1 (Percent) (MBD)

PETROLEUM COKE

Lake Charles Louisiana 50 N/A

RAIL

Beaumont Texas 100 20

Missoula Montana 50 82

Thompson Falls Montana 50 84

MARINE

Beaumont Texas 100 13

Portland Oregon 100 10

Richmond California 100 3

Tacoma Washington 100 12

Tremley Point New Jersey 100 7

1 Rail in thousands of barrels daily (MBD); Marine in thousands of barrels per hour.

17

PHILLIPS 66 PARTNERS as of May 31, 2016

PIPELINES ACTIVE THROUGHPUT NAME ORIGINATION/TERMINUS INTEREST SIZE LENGTH CAPACITY (Percent) (Miles) (MBD)

CRUDE OIL PIPELINES

Bayou Bridge Pipeline Nederland,TX/LakeCharles,LA 40 30″ N/A N/A

Clifton Ridge Crude System CliftonRidge/LakeCharlesRefinery 100 20″ 10 260

PecanGrove/CliftonRidge 100 12″ 0.6 56

Shell/CliftonRidge 100 20″ 0.6 312

Eagle Ford Gathering System Helena,TX 100 6″ 6 20

Tilden,TX/Whitsett,TX 100 6″,10″ 22 34

PETROLEUM PRODUCTS PIPELINES

Explorer TexasGulfCoast/Chicago,IL 19.5 24″,28″ 1,830 660

Sweeny to Pasadena Products System SweenyRefinery/Pasadena,TX 100 12″ 60 130

SweenyRefinery/Pasadena,TX 100 18″ 60 164

Hartford Connector Products System WoodRiverRefinery/Hartford,IL 100 12″ 3 80

Hartford,IL/ExplorerPipeline 100 24″ 1 430

Gold Line Products System BorgerRefinery/Wichita,KS 100 16″ 273 120

Wichita,KS/Paola,KS 100 16″ 143 132

Paola,KS/EastSt.Louis,IL 100 8″-12″ 265 53

Paola,KS/KansasCity,KS 100 8″ 53 24

Paola,KS/KansasCity,KS 100 10″ 53 72

Cross-Channel Connector Pipeline Pasadena,TX/GalenaPark,TX 100 20″ 5 180

Standish Pipeline MarlandJunction,OK/Wichita,KS 100 18″ 92 72

NGL PIPELINES

Sand Hills PermianBasin/MontBelvieu,TX 33 20″ 1,190 250

Southern Hills Midcontinent/MontBelvieu,TX 33 20″ 940 175

Midstream

FERNDALE RAIL RACK


TERMINALS, STORAGE AND FRACTIONATION ASSETS

TANK SHELL STORAGE ACTIVE TERMINALING FRACTIONATION NAME INTEREST CAPACITY CAPACITY CAPACITY (Percent) (MBbl) (MBD) (MBD)

Clifton Ridge Crude System

Clifton Ridge Terminal 100 3,410 12 N/A

Pecan Grove Storage 100 142 N/A N/A

Sweeny to Pasadena Products System

Pasadena Terminal 100 3,210 65 N/A

Hartford Connector Products System

Hartford Terminal 100 1,075 25 N/A

Gold Line Products System

East St. Louis Terminal 100 2,085 78 N/A

Jefferson City Terminal 100 110 16 N/A

Kansas City Terminal 100 1,294 66 N/A

Wichita North Terminal 100 679 19 N/A

Medford Spheres 100 70 N/A N/A

Palermo Rail Terminal 70 206 100 N/A

Bayway Rail Rack 100 N/A 75 N/A

Ferndale Rail Rack 100 N/A 30 N/A

Clemens Caverns 100 7,000-8,0001 N/A N/A

Sweeny Fractionator One 100 N/A N/A 100

MARINE ASSETS

DOCK THROUGHPUT NAME INTEREST CAPACITY (Percent) (Thousands of barrels per hour)

Clifton Ridge Crude System

Clifton Ridge Ship Dock 100 48

Pecan Grove Barge Dock 100 6

Hartford Connector Products System

Hartford Barge Dock 100 3

1 Approximate storage capacity for Y-grade NGL, propane and butane once the caverns currently in development are completed, which is expected by the end of 2016.

19

Chemicals

CPCHEM’S U.S. GULF COAST PETROCHEMICALS PROJECT


CPChemHeadquartered in The Woodlands, Texas, CPChem had approximately 5,000 employees worldwide and $13.6 billion in assets as of Dec. 31, 2015. Its business has two primary segments:OlefinsandPolyolefins(O&P)andSpecialties,Aromatics and Styrenics (SA&S). The O&P segment produces andmarketsethylene,propyleneandotherolefinsproducts.Most of the ethylene is consumed within the O&P segment fortheproductionofpolyethyleneandnormalalphaolefins.The SA&S segment manufactures and markets aromatics products and styrenics, such as benzene, styrene, paraxylene and cyclohexane, as well as polystyrene and styrene-butadiene copolymers. SA&S also manufactures and/or markets a variety of specialty chemical products, including organosulfur chemicals, solvents, catalysts, drilling chemicals and mining chemicals.

CPCHEM IS THE:

• World’s largest producer of high-density polyethylene.

•World’slargestalphaolefinsproducer.

• Fourth-largest ethylene producer in North America.

• World’s largest cyclohexane producer.

CPCHEM’S PRIMARY BRANDS INCLUDE:

• Marlex® polyethylene, a premium extrusion and rigid packaging resin.

• Soltex® drilling mud additive, a high-temperature/ high-pressurefluidlosscontroladditivefor water-based muds.

• Scentinel® Gas Odorants, which are added to natural gas to give it a distinctive smell, a vital safety measure.

CPChem’s primary assets are on the Texas Gulf Coast and in theMiddleEast.Throughitssubsidiariesandequityaffiliates,CPChem has 34 manufacturing sites located in Belgium, China, Colombia, Qatar, Saudi Arabia, Singapore, South Korea and the United States as well as two research and development centers. These research centers provide petrochemical and polymer research and house an advanced analytical sciences group to support new catalyst development, product and process development, and commercial process support for all of its major product lines.

CPChem’s plastics technical center is equipped with processing and testing technology for the molding and extrusion of polymer and copolymer resins.

OPERATING HIGHLIGHTS – CPCHEM (100%)

2015 2014 2013

Number of manufacturing sites 34 34 35

Plant gross capacity (BLb/Y) 49 48 48

Net capacity (BLb/Y) 34 34 33


Olefinsandpolyolefinscapacityutilization 91 88 88

Chemicals Overview

21

Chemicals

CPChem’s MarTECH® loop slurry process for high-density polyethylene production is one of the most versatile and widely licensed processes in the world, with more than 80 commercial reactor facilities using this technology. Another technological achievement is CPChem’s proprietary Aromax® technology, the lowest-cost process for on-purpose production of benzene.

Other proprietary technologies include: on-purpose 1-hexene technology;normalalphaolefinsandpolyalphaolefinsproduction technology; proprietary acetylene reduction catalyst technology; K-Resin® SBC technology; methyl mercaptan processtechnology;andfirst-andsecond-generation functionaldrillingfluidtechnology.

In 2015, CPChem continued construction of its world-scale U.S. Gulf Coast Petrochemicals Project. The project includes a 3.3 billion-pound-per-year (BLb/Y) ethylene unit, located at CPChem’s Cedar Bayou Facility in Baytown, Texas, and two 1.1 BLb/Y polyethylene facilities, located in Old Ocean, Texas, adjacent to the Sweeny facility. The project is scheduled to start up in the second half of 2017 and is expected to increase CPChem’s global ethylene and polyethylene capacity by about 30 percent.

An expansion project to increase CPChem’s normal alpha olefins(NAO)capacityby220millionpoundsperyearwascompleted at its Cedar Bayou Facility in June 2015. Current full-range NAO capacity at the Cedar Bayou site is 1.6 BLb/Y. NAO and its derivatives are used extensively as polyethylene comonomers, synthetic motor oils, lubricants, and automotive additives and in a wide range of specialty applications.

CPCHEM CEDAR BAYOU FACILITY


CPCHEM NET PETROCHEMICAL AND PLASTICS PRODUCTION CAPACITIES as of Dec. 31, 2015

U.S. MIDDLE EAST WORLDWIDE (MMLb/Y) (MMLb/Y) (MMLb/Y)

O&P

Ethylene 8,030 2,475 10,505

Propylene 2,675 505 3,180

High-density polyethylene 4,205 1,725 6,500

Low-density polyethylene 620 – 620

Linear low-density polyethylene 490 – 490

Polypropylene – 310 310

Normalalphaolefins 2,335 515 2,850

Polyalphaolefins 105 – 235

Polyethylene pipe 590 – 590

Total O&P 19,050 5,530 25,280

SA&S

Benzene 1,600 930 2,530

Cyclohexane 1,060 395 1,455

Paraxylene 1,000 – 1,000

Styrene 1,050 825 1,875

Polystyrene 835 155 1,070

K-Resin® SBC – – 70

Specialty chemicals 430 – 550

Nylon 6,6 – 55 55

Nylon Compounding – 20 20

Polymer conversion – 130 130

Total SA&S 5,975 2,510 8,755

Total O&P and SA&S 25,025 8,040 34,035

Capacities include CPChem’s share in equity affiliates and exclude CPChem’s NGL fractionation capacity.

23

* Denotes Joint Venture

CPChem U.S., M

iddle East and Asia Operations

CPChem U.S., Middle East and Asia Operations

U.S. OperationsHeadquartersThe Woodlands, Texas

CALIFORNIA

Torrance*Polystyrene

CONNECTICUT

Allyn’s Point*Polystyrene

ILLINOIS

Joliet*Polystyrene

LOUISIANA

St. James*Styrene

MISSISSIPPI

PascagoulaBenzeneParaxylene

OHIO

Hanging Rock*Polystyrene

Marietta*Polystyrene

TEXAS

BorgerSpecialty Chemicals

Cedar BayouEthyleneNormalAlphaOlefinsPropylenePolyalphaolefinsPolyethylene

ConroeDrilling Specialties

OrangePolyethylene

PasadenaPolyethylene

Port ArthurEthylenePropyleneCyclohexane

SweenyEthylenePropylene

Manufacturing FacilitiesResearch and Development FacilitiesHeadquarters

* Denotes Joint Venture

CPChem U.S., Middle East and Asia Operations

MESAIEED

ARABIAN GULF

Ras Laffan

Mesaieed

Jubail Industrial City

Saudi Arabia

Qatar

China

Singapore

South Korea

Saudi Arabia*

BenzeneCyclohexaneEthyleneStyrenePropylenePolyethylenePolypropylenePolystyrene1-HexeneMotor Gasoline

Qatar*

EthylenePolyethylene1-HexeneNormalAlphaOlefins

South Korea*

K-Resin® SBC

China*

Polyethylene

Singapore*

Polyethylene

WHOLLY OWNED CPCHEM FACILITIES as of Dec. 31, 2015

Chemicals

FACILITY/LOCATION PRODUCTS CAPACITY (MMLb/Y)

Cedar Bayou Facility, Baytown, TX Ethylene 1,840

Propylene 1,030

Normalalphaolefinsfull-range 1,785

1-hexene 550

Polyalphaolefins 105

Linear low-, low- and high-density polyethylene 2,625

Sweeny Facility, Old Ocean, TX Ethylene 4,310

Propylene 870

Port Arthur Facility, Port Arthur, TX Ethylene 1,880

Propylene 775

Cyclohexane 1,060

Pascagoula Facility, Pascagoula, MS Paraxylene 1,000

Benzene 1,600

Pasadena Plastics Complex, Pasadena, TX High-density polyethylene 2,180

Orange Chemical Facility, Orange, TX High-density polyethylene 970

PerformancePipeDivision,ninelocationsintheUnitedStates Polyethylenepipeandpipefittings 590

Borger Facility, Borger, TX Organosulfur chemicals 215

Specialty fuels and solvents 165

Beringen,BelgiumFacility,Beringen,Belgium Polyalphaolefins 130

Tessenderlo Chemicals Facility, Tessenderlo, Belgium Organosulfur chemicals 120

Drilling Specialties, Conroe, TX Drilling specialty chemicals 50


JOINT-VENTURE CPCHEM FACILITIES as of Dec. 31, 2015

FACILITY/LOCATION CPCHEM OWNERSHIP PRODUCTS GROSS CAPACITY (Percent) (MMLb/Y)

Qatar Chemical Company Ltd., Mesaieed, Qatar 49 Ethylene 1,150

High-density polyethylene 1,010

1-hexene 130

Qatar Chemical Company II Ltd.(Q-Chem II), Mesaieed, Qatar 49 High-density polyethylene 770

Normalalphaolefins 760

RasLaffanOlefinsCompany(RLOC),RasLaffan,Qatar1 26 Ethylene 2,870

Saudi Polymers Company, Jubail Industrial City, Saudi Arabia 35 Ethylene 2,690

Propylene 970

High-density polyethylene 2,425

Polypropylene 880

Polystyrene 440

1-hexene 220

Saudi Chevron Phillips Company, Jubail Industrial City, Saudi Arabia 50 Benzene 1,865

Cyclohexane 790

Jubail Chevron Phillips Company, Jubail Industrial City, Saudi Arabia 50 Styrene 1,650

Ethylene 450

Propylene 330

Petrochemical Conversion Company, Jubail Industrial City 2, Saudi Arabia 50 Polymer conversion 260

Nylon 6,6 100

Nylon compounding 40

Americas Styrenics, St. James, LA 50 Styrene 2,100

Americas Styrenics, Joliet, IL 50 Polystyrene 270

Americas Styrenics, Allyn’s Point, CT 50 Polystyrene 250

Americas Styrenics, Hanging Rock, OH 50 Polystyrene 400

Americas Styrenics, Torrance, CA 50 Polystyrene 330

Americas Styrenics, Marietta, OH 50 Polystyrene 420

Americas Styrenics, Cartagena, Colombia 50 Polystyrene 160

Chevron Phillips Singapore, Chemicals (Private) Limited, Singapore 50 High-density polyethylene 880

Shanghai Golden Phillips Petrochemical Co., Jinshanwei, China 40 High-density polyethylene 320

K R Copolymer Co., Ltd., Yeosu, South Korea 60 K-Resin® SBC 115

1 Q-Chem II owns 53.85 percent of the capacity rights of the RLOC ethylene cracker.

25

Refining

BILLINGS REFINERY26 PHILLIPS 66 2016 FACT BOOK

RefiningOurRefiningsegmentprocessescrudeoilandotherfeedstocksinto petroleum products such as gasoline, diesel and aviation fuel.Phillips66has14refineriesandanetcrudeoilprocessingcapacity of 2.2 million barrels per day (MMBD).

Phillips66’sRefiningstrategycentersonoperatingexcellence,maintaining cost and capital discipline, and increasing margins through selective investment. We have opportunities across our system for low-cost, high-return projects that are planned to either increase the value of the products we make or lower the

cost of feedstocks. Examples of these projects: At the WoodRiverRefinery,wehavedebottleneckingandyield-improvement projects underway that are scheduled for completioninthethirdquarterof2016.AttheBaywayRefinery,weareupgradingourfluidcatalyticcrackingunittostate-of-the-art technology, which will result in increased yields of gasoline anddiesel.Weexpectthismodernizationtobefinishedin2018.Inaddition,theBillingsRefineryisincreasingitsheavyCanadian crude run ability to 100 percent, with an expected completioninthefirsthalfof2017.

OPERATING HIGHLIGHTS

2015 2014 2013

Total clean product yield (percent) 84 84 84

Gasoline 44 43 42

Distillate 38 39 40

Other clean product 2 2 2

Crude oil processed (MBD) 1,988 2,108 2,079

Crude oil capacity utilization (percent) 91 94 93

Worldwide crude processing capacity (MBD) 2,184 1 2,178 2 2,246 3

U.S. 1,834 1 1,828 2 1,816 3

International 350 1 350 2 430 3


Refining Overview

1 As of Jan. 1, 2016.2 As of Jan. 1, 2015.3 As of Jan. 1, 2014.

BAYWAY REFINERY

27

Humber

Whitegate

MiRO

Lake Charles

Ponca City

Sweeny

Alliance

Wood River

Borger

Ferndale

Billings

Los Angeles

San Francisco

Bayway

U.S. REFINING as of March 31, 2016

Refining

EUROPE REFINING As of March 31, 2016

Wholly Owned Re�nery

Joint-Venture Re�nery

West Coast

Central Corridor

Gulf Coast

Atlantic Basin/Europe

Wholly Owned Re�nery

Joint-Venture Re�nery


WORLDWIDE REFINING as of Dec. 31, 2015

AVERAGE AVERAGE NELSON CLEAN PRODUCT CRUDE1 TOTAL GASOLINE3 DISTILLATE3 LIGHT/MEDIUM HEAVY COMPLEXITY YIELD (Throughput) (Throughput) (Production) (Production) FACTOR (Percent)REGION

Atlantic Basin/Europe2 588 669 270 285 80 20 9.0 85

Gulf Coast 743 865 340 355 60 40 12.0 80

Central Corridor2 493 543 270 195 65 35 11.0 89

West Coast 360 409 190 155 45 55 12.3 85

Worldwide 2,184 2,486 1,070 990 65 35 11.0 84

1 As of Jan. 1, 2016.2 Includes Phillips 66’s share of joint-venture refineries.3 Clean 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.

CAPACITY (MBD) CRUDE MIX (Percent)

LOS ANGELES REFINERYPONCA CITY REFINERY

29

Refining

Ferndale Refinery

San Francisco Refinery

Los Angeles Refinery

CRUDE CAPACITY (MBD)



DISTILLATE CAPACITY (MBD)



TOTAL CAPACITY (MBD)



NELSON COMPLEXITY FACTOR



GASOLINE CAPACITY (MBD)



CLEAN PRODUCT YIELD CAPABILITY



101

120

139

30

60

65

109

140

160

7.3

14.3

14.3

55

55

80

81%

84%

90%

RE

FIN

ING

WE

ST

CO

AS

T


OurFerndaleRefineryislocatedonPugetSoundinFerndale,Washington, about 20 miles south of the U.S.-Canada border. It processes a variety of domestic and foreign crude oils, including Alaskan North Slope, Canadian and U.S. shale crudes.

With a deep-water dock, a 30,000 BPD rail unloading facility and access to existing crude oil pipelines, Ferndale has the flexibilitytoprocessabroadslateofcrudes.Itsfacilitiesconsistofafluidcatalyticcracker,analkylationunit,hydrotreatingunitsand a naphtha reformer.

OurSanFranciscoRefineryhastwofacilitieslinkedbya200-mile pipeline: Santa Maria, in Arroyo Grande, California, andRodeo,intheBayArea.Therefineryprocessesamixtureof heavy, high-sulfur and light sweet crude oils. It receives California crude oil by pipeline and both domestic and foreign crudeoilsbytanker.Semi-refinedproductsfromSantaMariaaresentbypipelinetoRodeoforupgradingintofinishedpetroleumproducts.Alargeportionoftherefinery’sproductionis transportation fuel such as gasoline and diesel.

TheLosAngelesRefinerycomprisestwolinkedfacilities, fivemilesapart,inCarsonandWilmington,California,about15 miles southeast of Los Angeles International Airport. Carson processes crude oil, and Wilmington upgrades the intermediate productstofinishedproducts.

Therefineryprocessesmainlyheavy,high-sulfurcrudeoil.Itreceives domestic crude oil by pipeline from California and both foreign and domestic crude oils by tanker through a third-party

Therefineryproducesgasolineanddiesel.Otherproductsinclude residual fuel oil, which supplies the northwest marine transportationmarket.MostofFerndale’srefinedproductsare distributed by pipeline and barge to major markets in northwestern United States.

Process facilities include coking, hydrocracking, hydrotreating andnaphthareformingunits.TherefineryproducesCARB-gradegasolineanddieselfuels.Themajorityofrefinedproductsaredistributed by pipeline and barge to customers in California.

terminalinthePortofLongBeach.Therefineryproducesahigh percentage of gasoline, diesel and aviation fuels. Other products include fuel-grade petroleum coke.

Thefacilitieshavefluidcatalyticcracking,alkylation,hydrocracking,cokingandnaphthareformingunits.Therefineryproduces California Air Resources Board (CARB)-grade gasoline anddieselfuels.Refinedproductsaredistributedbypipelineand truck to customers in California, Nevada and Arizona.

31

Ponca City Refinery

Billings Refinery

Wood River Refinery1

Borger Refinery1

























203

60

157

73

90

25

55

25

220

67

166

90

9.0

13.8

11.8

12.5

110

35

75

50

93%

90%

81%

90%

RE

FIN

ING

CE

NTR

AL

CO

RR

IDO

R

1 Reflects Phillips 66 equity share.32 PHILLIPS 66 2016 FACT BOOK

ThePoncaCityRefinery,inPoncaCity,Oklahoma,processesa mixture of light, medium and heavy crude oils. Most of the crude oil processed is received by pipeline from Oklahoma, Texas and Canada. Infrastructure improvements have enabled the delivery of increased volumes of locally produced advantaged crude oil by pipeline and truck.

Therefineryisahigh-conversionfacilitythatproducesafullrange of products, including gasoline, diesel and aviation fuels; liquefiedpetroleumgas(LPG);andanode-gradepetroleum

LocatedinBillings,Montana,ourBillingsRefineryprocesses a mixture of Canadian heavy, high-sulfur crude oil plus domestic high-sulfur and low-sulfur crude oils, all delivered by pipeline and truck.

Thefacilitieshavefluidcatalyticcracking,naphthareformingand hydrodesulfurization units. A delayed coker converts heavy, high-sulfurresidueintohigher-valuelightoils.Therefineryproduces a high percentage of gasoline, diesel and aviation

Located in Roxana, Illinois, and jointly owned by Phillips 66 andCenovusEnergythroughtheWRBRefiningpartnership,theWoodRiverRefineryisoperatedbyPhillips66.Therefineryprocesses a mix of light, low-sulfur; heavy, high-sulfur; and high-acid crude oils. Wood River receives Canadian and domestic crude oils, including from U.S.-advantaged sources, andotherforeigncrudeoil.Therefineryproducesahighpercentage of transportation fuels, such as gasoline, diesel

OurBorgerRefineryisinBorger,Texas,about50milesnortheastofAmarillo.It’sownedbyWRBRefiningLP,a 50-50 partnership between Phillips 66 and Cenovus Energy, andoperatedbyPhillips66.Therefineryprocessesprimarilymedium sour crude oil and NGL delivered through pipelines from West Texas, the Texas Panhandle and Canada. Borger has a net NGL fractionation capacity of 22,500 BPD1.

coke.Itsfacilitiesincludetwofluidcatalyticcrackingunits,alkylation, delayed coking, naphtha reforming and hydro-desulfurization units. Finished petroleum products are shipped by truck, railcar and pipelines to markets throughout the Midcontinent region.

fuels as well as fuel-grade petroleum coke. Finished petroleum productsfromtherefineryaredeliveredbypipeline,railcarandtruck.Pipelinestransportmostoftherefinedproductstomarkets in Montana, Wyoming, Idaho, Utah, Colorado and Washington.

and aviation fuels. Other products include petrochemical feedstocks, asphalt and coke.

Itsoperationsconsistoftwofluidcatalyticcrackingunits,alkylation, hydrocracking, two delayed coking units, naphtha reforming, hydrotreating and sulfur recovery. Finished products leave Wood River through pipelines and by rail, barge and truck.

Borgerhastwofluidcatalyticcrackingunits,alkylation,delayedcoking, hydrodesulfurization and naphtha reforming. This enables it to produce a high percentage of transportation fuels such as gasoline, diesel and aviation fuels, as well as petroleum coke,NGLandsolvents.PipelinesmoverefinedproductstoWest Texas, New Mexico, Colorado and the Midcontinent region.

33

Alliance Refinery

Sweeny Refinery

Lake Charles Refinery



















247

247

249

120

120

115

275

300

290

12.1

13.1

10.9

125

125

90

88%

87%

70%

RE

FIN

ING

GU

LF C

OA

ST

Refining


OurAllianceRefinery,locatedontheMississippiRiverinBelleChasse, Louisiana, 25 miles south of New Orleans, processes mainly light, low-sulfur crude oil. Alliance receives domestic crude oil from the Gulf of Mexico by pipeline and U.S. tight oil bymarinetransport.Therefinerycanalsoreceiveforeigncrudeoil by pipeline connected to the Louisiana Offshore Oil Port.

Thesingle-trainrefinery’sfacilitiesincludefluidcatalyticcracking, alkylation, coking and hydrodesulfurization units, a naphtha reformer and aromatics units that enable it to

LocatedinWestlake,Louisiana,theLakeCharlesRefineryprocesses primarily heavy, high-sulfur and high-acid crude oils, along with some light, sweet crude oil. It receives domestic Gulf Coast, U.S.-advantaged and foreign crude oils.

Withinthefacilitiesarecrudedistillation,afluidcatalyticcracker, alkylation, a delayed coker and hydrodesulfurization unitsthatenabletherefinerytoproducegasoline,dieselandaviation fuels, home heating oil and fuel-grade petroleum coke. The facilities also include a specialty coker and calciner, which produce graphite petroleum coke for the steel industry.

produce a high percentage of gasoline, diesel and aviation fuels. Other products include petrochemical feedstocks, home heating oil and anode-grade petroleum coke.

Alargeportionofitsrefinedproductsaredistributedtocustomers in the eastern United States through major common-carrierpipelinesystemsandbybarge.Refinedproducts can be sold into export markets through the refinery’smarinefacilities.

Lake Charles produces a high percentage of gasoline and aviationfuels.Themajorityofitsrefinedproductsaredistributed by truck, railcar, barge or major common-carrier pipelines in the southeastern and eastern United States. In addition,refinedproductscanbesoldintoexportmarketsthroughtherefinery’smarinefacilities.

OurSweenyRefinery,inOldOcean,Texas,65milessouthwestof Houston, processes mainly heavy, high-sulfur crude oil as well as some light, low-sulfur crude oil. Sweeny receives 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.

Therefineryfacilitiesincludetwofluidcatalyticcrackingunits, delayed coking, alkylation, a naphtha reformer and hydrodesulfurization units. It operates nearby terminals

and storage facilities in Freeport, Jones Creek and on the San Bernard River, along with pipelines that connect these facilitiestotherefinery.

Therefineryproducesahighpercentageofgasoline,dieseland aviation fuels. Other products include petrochemical feedstocks, home heating oil and fuel-grade petroleum coke. RefinedproductsaredistributedthroughouttheMidwestandsoutheastern United States by pipeline, barge and railcar.

35

Whitegate Refinery1

Bayway Refinery

MiRO Refinery2

Humber Refinery

























71

238

58

221

30

115

25

115

73

295

61

240

4.2

8.1

8.1

11.7

15

145

25

85

65%

92%

86%

81%

RE

FIN

ING

ATL

AN

TIC

BA

SIN

/E

UR

OP

E

1 In August 2016, Phillips 66 announced the sale of its Whitegate Refinery, located near Cork, Ireland. The transaction is expected to close in the third quarter of 2016.

2 Reflects Phillips 66 equity share.36 PHILLIPS 66 2016 FACT BOOK

TheBaywayRefinery,locatedontheNewYorkHarborin Linden, New Jersey, processes mainly light, low-sulfur crude oil.CrudeoilissuppliedtotherefinerybytankerfromCanada and West Africa, and U.S. crude is supplied through a combination of rail and marine transport.

Withintherefineryisarailcarcrudeoilreceivingfacilitywithacapacityof75,000BPD.Thisoffloadingfacility,ownedbyPhillips 66 Partners, makes the receipt of additional crude by railcarpossible.Therefineryproducesahighpercentageof

OurWhitegateRefinery,locatedinCork,Ireland,isthe country’sonlyrefineryandprocesseslight,low-sulfurcrude oil, sourced mostly from the North Sea and West Africa. Whitegate produces primarily transportation and heating fuels such as gasoline, diesel and kerosene that are distributed mostly inland, with some exported to the U.K. and Europe. Thefacilityalsoproducesfeedstockforsystemrefineries and international markets.

TheMineraloelraffinerieOberrheinGmbH(MiRO)Refinery,located on the Rhine River in Karlsruhe, in southwest Germany, is a joint venture with Phillips 66 holding an 18.75 percent interest.

Phillips 66 processes mainly medium sweet and medium sourcrudeoilsinitsshareoftherefinery.Crudeisdelivered totherefinerybyacross-countrypipelinefromtheportinTrieste, Italy.

TheHumberRefineryislocatedinNorthernLincolnshire,UnitedKingdom. The crude oil it processes is supplied primarily from the North Sea and includes light-, low- and medium-sulfur and acidic crude oils. Humber generates a large proportion of gasoline,dieselandaviationfuels.Itsfluidcatalyticcrackingunit/thermalcracking/cokingconfigurationenablessubstantialvolumes of other feedstocks, such as low-sulfur fuel oil and vacuum gas oil, to be processed alongside crude oil to fully use Humber’s conversion capability.

transportation fuels and petrochemical feedstocks, residual fuel oilandhomeheatingoil.Thefacilitydistributesrefinedproductsto East Coast customers by barge, truck, pipeline and railcar.

Bayway’srefiningunitsincludefluidcatalyticcracking,hydrodesulfurization units, a naphtha reformer, an alkylation unit and other processing equipment. Bayway also has a 775 MMLb/Y polypropylene plant.

Thefacilitiesconsistofthreecrudeunittrains,fluidcatalyticcracking, petroleum coking and calcining, hydrodesulfurization, naphtha reformers, isomerization, ethyl tert-butyl ether, and alkylation units that enable it to produce a high percentage of transportation fuels. Other products include petrochemical feedstocks, home heating oil, bitumen and anode- and fuel-grade petroleum coke. Phillips 66 distributes the majority of itsshareoftherefinedproductstocustomersinsouthwestGermany, northern Switzerland and western Austria by truck, railcar and barge.

Humber has two coking units with associated calcining plants that upgrade the heavy bottoms and imported feedstocks into light oil products and specialty graphite and anode-grade petroleum coke. Approximately 70 percent of the light oils producedintherefineryaremarketedintheUnitedKingdom,with the other products exported worldwide.

37

Marketing and Specialties

PHILLIPS 66 2016 FACT BOOK38

OPERATING HIGHLIGHTS 2015 2014 2013

U.S. Marketing sales (MBD)

Gasoline 1,113 1,102 1,081

Distillate 761 787 775

International Marketing sales (MBD)

Gasoline 92 93 93

Distillate 192 192 192

Realized Marketing Fuel margin ($/Bbl)

U.S. 1.65 1.51 1.21

International 4.40 5.22 4.36


Marketing and Specialties Overview


This business markets refined petroleum products (such as gasoline, distillates and aviation fuels) mainly in the United States under the Phillips 66®, Conoco®, and 76® brands and in Europe through JET® and COOP® branded outlets. In addition, this segment includes the manufacturing and marketing of specialty products as well as power generation operations.

PHILLIPS 66 MARKETS FUELS AND LUBRICANTS UNDER THESE BRANDS

39

U.K.330

Germany800

Austria150

Switzerland295

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 Phillips 66®, Conoco® or 76® and offer gasolines that have been recognized as TOP TIER™ by leading automakers. These operations are generally served bythecompany’srefineriesandtransportationsystems.

Phillips 66 uses a network of branded marketers and dealers operating approximately 7,500 outlets, which include about 800siteswhereweholdbrandlicenseagreements.Refinedproducts are sold on both a branded and unbranded basis, emphasizing the wholesale channel of trade.

In addition to automotive gasoline and diesel fuel, the company produces aviation fuels and markets them through independent marketers and dealers at approximately 850 Phillips 66 aviation-branded,fixed-baseoperations–thelargestbrandednetwork in the U.S. general aviation industry.

EUROPE

In Europe, Phillips 66 markets motor fuels under the JET® brand through company-owned outlets 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 the COOP® brand.

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.Inaddition,substantiallyallWhitegateRefineryproduction is sold to local and international oil companies and independent resellers in the inland Ireland market.

As of Dec. 31, 2015, Marketing and Specialties had approximately 1,280 marketing outlets in its European operations, of which approximately 950 were company owned and 330 were dealer owned. Additionally, through joint-venture operations in Switzerland, Phillips 66 has interests in 295 other sites.

SpecialtiesFINISHED LUBRICANTS

Phillips66isoneofthelargestfinishedlubricantssuppliersinthe United States. It manufactures and markets three major lubricant brands: Phillips 66®, Kendall® and Red Line®. We also have supply relationships with major original equipment manufacturers. The distribution network consists of marketers, mass merchandise stores, fast lube stores, tire stores and automotive dealers.

In 2015, Phillips 66 completed the integration of its 2014 acquisition of Spectrum Corporation, an independent blender, packager and marketer of specialty lubricants that include two-cycle engine oil, small engine oil and hydraulic oil. It offers a broad array of private-label and brand-name specialty lubricants and related products. The acquisition has increased Phillips 66’s access to specialized global lubricants markets.

BASE OIL

The base oil marketing activities of Phillips 66 include the sale of Group II Pure Performance® hydrocracked base oils to an extensive list of customers throughout the world and the purchase of a wide range of base oils from several NorthAmericanrefinersthatfulfillthemanufacturingneeds ofthefinishedlubricantsproductlines.Wealsomarket Group III Ultra-S base oils in North America through an agreement with South Korea’s S-Oil Corporation. Base oils are manufactured at our 50-50 joint-venture Excel Paralubes plant in Westlake, Louisiana.


EUROPE MARKETING as of Dec. 31, 2015

Fuels Market Share>20% 10-20% <10%

Number of Outlets per Country


Excel Paralubes

Los Angeles

Benicia

Portland

HartfordWood River

GulfCoast

Savannah

Waukesha

Selmer

Rodeo

LakeCharles

Sweeny

BorgerPACIFIC OCEAN

HAWAII

ALASKAMILES

0 500

MILES

0 100

U.S. MARKETING AND SPECIALTIES as of Dec. 31, 2015

SPECIALTY PRODUCTS

Phillips 66 manufactures and markets specialty products, including petroleum coke products, waxes, solvents and polypropylene, which are sold to commercial, industrial and wholesale buyers worldwide.

PETROLEUM COKE

Phillips 66 is a leading producer of needle coke for manufacturing electric arc furnace electrodes. The company’s experience in carbon upgrading also supports the supply of green and calcined specialty cokes to the steel, aluminum and titanium dioxide and battery industries in multiplecountriesfromourrefinerieslocatedintheU.S. and the United Kingdom.

SOLVENTS

TheBorger,SweenyandWoodRiverrefineriesmanufactureand market high-purity specialty solvents, including pentanes, hexanes,heptanesandisoparaffins,foruseinavarietyofindustrial and chemical manufacturing applications. These products are marketed globally and used in the production of products such as vegetable oil, automotive products, tires and rubber, paint, foam insulation and adhesives.

POLYPROPYLENE

Phillips 66 produces polypropylene resins at its polypropylene plantadjacenttoitsBaywayRefineryinLinden,NewJersey. The product is sold under the COPYLENE® brand. The plant has a nameplate capacity of 775 MMLb/Y.

POWER GENERATION

Phillips 66 owns the 440-megawatt Sweeny Cogeneration PowerPlant.Phillips66’sSweenyRefineryandCPChem’sSweeny facility both use steam and power generated by the plant. Excess power is sold in the power market. Our Rodeo Carbon plant has a steam power plant that generates steam and power for on-site use with excess power sold in the California market. Phillips 66 owns a 37 percent ownership interest in the Nelson Industrial Steam Company, which consumes petroleum coke produced by the Lake Charles Refinery.Generatedsteamissoldtoathirdparty,and power is sold to the local utility.

Lubricants PlantPower Generation FacilitySolvents Manufacturing

Fuels Market Share>20% 10-20% 5-10% <5%

41

RECONCILIATION OF ADJUSTED EARNINGS TO EARNINGS

Non-GAAP Reconciliations

(Millions of Dollars) 2015 2014 2013

PHILLIPS 66Net income attributable to Phillips 66 (earnings) $ 4,227 4,762 3,726 Adjustments:

Asset dispositions (265 ) (494 ) (23 )Impairments – 131 –Impairmentsbyequityaffiliates 256 69 –Pending Claims and settlements (23 ) (10 ) (16 )Exit of business line – – 34Lower-of-cost-or-market inventory adjustments 33 30 –Pension settlement expenses 49 – –Certain tax impacts (84 ) – (17 )Discontinued operations – (706 ) (61 )

Consolidated Adjusted Earnings $ 4,193 3,782 3,643

MIDSTREAMNet income attributable to Phillips 66 (earnings) $ 13 507 469Adjustments:

Asset dispositions (18 ) – –Impairmentsbyequityaffiliates 232 – –Lower-of-cost-or-market inventory adjustments – 1 –Pension settlement expenses 6 – –Certain tax impacts 15 – –

Adjusted Earnings $ 248 508 469

CHEMICALS Net income attributable to Phillips 66 (earnings) $ 962 1,137 986Adjustments:

Impairmentsbyequityaffiliates 24 69 –Lower-of-cost-or-market inventory adjustments – 3 –Certain tax impacts (34 ) – –

Chemicals Adjusted Earnings $ 952 1,209 986

REFINING Net income attributable to Phillips 66 (earnings) $ 2,555 1,771 1,747Adjustments:

Asset dispositions (5 ) (369 ) –Impairments – 131 –Pending Claims and settlements (19 ) 17 –Lower-of-cost-or-market inventory adjustments 33 26 –Pension settlement expenses 32 – –Certain tax impacts (69 ) – (13 )

RefiningAdjustedEarnings $ 2,527 1,576 1,734

MARKETING AND SPECIALTIES Net income attributable to Phillips 66 (earnings) $ 1,187 1,034 894Adjustments:

Asset dispositions (242 ) (125 ) (23 )Pending Claims and settlements – (27 ) (16 )Exit of business line – – 34Pension settlement expenses 7 – –Certain tax impacts (5 ) – (4 )

Marketing and Specialties Adjusted Earnings $ 947 882 885


RECONCILIATION OF ADJUSTED EARNINGS TO EARNINGS (CONTINUED)


CORPORATENet income attributable to Phillips 66 (earnings) $ (490 ) (393 ) (431 )Adjustments:

Pending Claims and settlements (4 ) – –Pension settlement expenses 4 – –Certain tax impacts 9 – –

Corporate Adjusted Earnings $ (481 ) (393 ) (431 )

RECONCILIATION OF ADJUSTED ROCE TO ROCE


PHILLIPS 66NumeratorNet Income $ 4,280 4,797 3,743After-tax interest expense 201 173 178GAAP ROCE earnings 4,481 4,970 3,921Special Items (34 ) (980 ) (83 )Adjusted ROCE earnings $ 4,447 3,990 3,838

DenominatorGAAP average capital employed $ 31,749 29,595 28,130Discontinued operations – (96 ) (192 )Adjusted average capital employed $ 31,749 29,499 27,938

GAAP ROCE (percent) 14 % 17 % 14 %Adjusted ROCE (percent) 14 % 14 % 14 %

ADJUSTED EBITDA RECONCILIATION


PHILLIPS 66Net income attributable to Phillips 66 4,227 4,762 3,726Less:

Income from discontinued operations – 706 61Plus:

Net income attributable to noncontrolling interests 53 35 17Provision for income taxes 1,764 1,654 1,844Net interest expense 283 246 258Depreciation and amortization 1,078 995 947

Phillips 66 EBITDA 7,405 6,986 6,731

Adjustments (pretax):EBITDA attributable to Phillips 66 noncontrolling interests (73 ) (45 ) (24 )Proportionalshareofselectedequityaffiliatesincometaxes 86 117 93Proportionalshareofselectedequityaffiliatesnetinterest 140 108 25Proportionalshareofselectedequityaffiliatesdepreciationandamortization 682 653 622Asset dispositions (280 ) (270 ) (40 )Impairments – 131 –Impairmentsbyequityaffiliates 390 88 –Exit of a business line – – 54Pending claims and settlements 30 (21 ) (25 )Certain tax impacts – – (28 )Lower-of-cost-or-market inventory adjustments 53 45 –Pension settlement expense 80 – –

Phillips 66 Adjusted EBITDA 8,513 7,792 7,408

43

Non-GAAP ReconciliationsADJUSTED EBITDA RECONCILIATION (CONTINUED)


MIDSTREAMNet income attributable to Phillips 66 13 507 469Plus:

Net income attributable to noncontrolling interests 61 35 17Provision for income taxes 73 309 264Depreciation and amortization 127 91 88

Midstream EBITDA 274 942 838

Adjustments (pretax):EBITDA attributable to Phillips 66 noncontrolling interests (73 ) (45 ) (24 )Proportionalshareofselectedequityaffiliatesincometaxes (2) 3 4Proportionalshareofselectedequityaffiliatesnetinterest 133 118 110Proportionalshareofselectedequityaffiliatesdepreciationandamortization 166 150 139Lower-of-cost-or-market inventory adjustments – 2 –Asset dispositions (30 ) – – Impairmentsbyequityaffiliates 366 – –Pension settlement expenses 9 – –

Midstream Adjusted EBITDA* 843 1,170 1,067

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

CHEMICALSNet income attributable to Phillips 66 962 1,137 986Plus:

Provision for income taxes 353 495 375Chemicals EBITDA 1,315 1,632 1,361

Adjustments (pretax):Proportionalshareofselectedequityaffiliatesincometaxes 91 111 93Proportionalshareofselectedequityaffiliatesnetinterest 7 9 10Proportionalshareofselectedequityaffiliatesdepreciationandamortization 264 258 246Impairmentsbyequityaffiliates 24 88 –Lower-of-cost-or-market inventory adjustments – 3 –

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

REFININGNet income attributable to Phillips 66 2,555 1,771 1,747Plus:

Provision for income taxes 1,104 696 1,035Depreciation and amortization 738 704 685

RefiningEBITDA 4,397 3,171 3,467

Adjustments (pretax):Proportionalshareofselectedequityaffiliatesincometaxes (3) 3 (4)Proportionalshareofselectedequityaffiliatesnetinterest – (19) (95)Proportionalshareofselectedequityaffiliatesdepreciationandamortization 252 245 237Asset dispositions (8 ) (145 ) – Impairments – 131 –Pending claims and settlements 30 23 –Certain tax impacts – – (22 )Lower-of-cost-or-market inventory adjustments 53 40 –Pension settlement expenses 53 – –

RefiningAdjustedEBITDA 4,774 3,449 3,583



MARKETING AND SPECIALTIESNet income attributable to Phillips 66 1,187 1,034 894Plus:

Provision for income taxes 465 441 433Net interest expense (2 ) – – Depreciation and amortization 97 95 103

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

Adjustments (pretax):Asset dispositions (242 ) (125 ) (40)Pending claims and settlements – (44 ) (25 )Exit of a business line – – 54Certain tax impacts – – (6 )Pension settlement expenses 11 – –

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

CORPORATENet income (loss) attributable to Phillips 66 (490 ) (393 ) (431 )Plus:

Net income attributable to noncontrolling interests (8 ) – –Provision for income taxes (231 ) (287 ) (263 )Net interest expense 285 246 258 Depreciation and amortization 116 105 71

Corporate EBITDA (328 ) (329 ) (365 )

Adjustments (pretax):Pension settlement expenses 7 – –

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

ADJUSTED EBITDA RECONCILIATION (CONTINUED)

RECONCILIATION OF NET-DEBT-TO-CAPITAL RATIO

PHILLIPS 66 2015 2014 2013

Total Debt ($MM) 8,887 8,635 6,125Total Equity ($MM) 23,938 22,037 22,392Debt-to-capital ratio 27 % 28 % 21 %

Cash and cash equivalents ($MM) 3,074 5,207 5,400Net-debt-to-capital ratio 20 % 13 % 3 %

45

SAFE HARBOR STATEMENT

This Fact 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 Fact Book was prepared. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptionsthataredifficulttopredict.Therefore,actualoutcomesand 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 intheforward-lookingstatementsincludefluctuationsincrudeoil,NGL,andnaturalgasprices,andrefiningandpetrochemicalmargins; unexpected changes in costs for constructing, modifying oroperatingourfacilities;unexpecteddifficultiesinmanufacturing,refiningortransportingourproducts;lackof,ordisruptionsin,adequate and reliable transportation for our crude oil, natural gas, NGL,andrefinedproducts;potentialliabilityfromlitigationorforremedial actions, including removal and reclamation obligations under environmental regulations; limited access to capital or significantlyhighercostofcapitalrelatedtoilliquidityoruncertaintyinthedomesticorinternationalfinancialmarkets;andothereconomic, business, competitive and/or regulatory factors affecting Phillips66’sbusinessesgenerallyassetforthinourfilingswiththe 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.

UNITS OF MEASURE

BBtu/d Billion British thermal units per dayBCF Billion cubic feetBCFD Billions of cubic feet per dayBLb/Y Billions of pounds per yearBPD Barrels per dayBtu British thermal unitsBTUD British thermal units per dayLb/MBbl Pounds per thousand barrelsMBbl Thousands of barrelsMBD Thousands of barrels per dayMCFD Thousands of cubic feet per dayMMBbl Millions of barrelsMMBD Millions of barrels per dayMMCFD Millions of cubic feet per dayMMLb/Y Millions of pounds per yearTBTU Trillion British thermal unitsTBtu/d Trillion British thermal units per day

COMMONLY USED ABBREVIATIONS

NGL Natural gas liquidsROCE Return on capital employedLPG LiquefiedpetroleumgasPADD Petroleum Administration for Defense Districts

DATA

Distillate capacity includes aviation fuels. The Nelson Complexity Factor calculation considers the variety and capacity of the different processingunitswithinarefinery.Thehigherarefinery’sfactor,thegreater its secondary conversion capacity and capability to produce higher-value products.


Phillips 66, Conoco, 76, Kendall, JET and their respective logos are registered trademarks of Phillips 66 Company. Other products and logos mentioned herein may be trademarks of their respective owners.

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