Form 8-K Phillips 66 For: Aug 03

August 3, 2021 9:20 AM EDT

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Exhibit 99.1

psxphillips66b.jpg

Phillips 66 Reports Second-Quarter 2021 Financial Results


Reported second-quarter earnings of $296 million or $0.66 per share; adjusted earnings of $329 million or $0.74 per share
Generated $1.7 billion of operating cash flow; $910 million excluding working capital
Delivered record Chemicals earnings
CPChem began construction on a world-scale 1-hexene unit
Ramped up renewable diesel production at San Francisco Refinery
Recently resumed construction of the 150,000-BPD Frac 4 at the Sweeny Hub
Issued 2021 Sustainability Report in July


HOUSTON, Aug. 3, 2021 – Phillips 66 (NYSE: PSX), a diversified energy manufacturing and logistics company, announces second-quarter 2021 earnings of $296 million, compared with a loss of $654 million in the first quarter of 2021. Excluding special items of $33 million, the company had adjusted earnings of $329 million in the second quarter, compared with a first-quarter adjusted loss of $509 million.

“Our second-quarter results reflect the recovery of operations after the prior quarter’s winter storms, as well as further product demand improvement as more people across the globe are vaccinated,” said Greg Garland, Chairman and CEO of Phillips 66. “CPChem generated record quarterly earnings supported by robust demand, utilization and margins. Midstream and Marketing and Specialties delivered strong, consistent earnings, while Refining profitability remained challenged.

“Across our portfolio, we are advancing our strategic projects and pursuing lower-carbon opportunities. At Rodeo, renewable diesel production from the hydrotreater conversion reached full rates in July, and permitting for the full facility conversion is moving forward as planned. At the Sweeny Hub, we recently resumed construction of Frac 4, which we expect to complete in the fourth quarter of 2022.

“Our recently released 2021 Sustainability Report outlines our commitment to a lower-carbon future through environmental stewardship, social responsibility and strong corporate governance. As previously communicated, we will establish greenhouse gas emission reduction targets later this year.

“Looking forward, we remain optimistic that demand recovery for our products will continue. We will adhere to our disciplined capital allocation framework, including our commitment to debt reduction as well as a secure, competitive dividend. We anticipate a return to dividend growth as cash flow recovers. In the second quarter, we returned $394 million in dividends to shareholders.”


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Phillips 66 Reports Second-Quarter 2021 Financial Results
Midstream
Millions of Dollars
Pre-Tax IncomeAdjusted Pre-Tax Income
Q2 2021Q1 2021Q2 2021Q1 2021
Transportation$2247224206
NGL and Other79358336
DCP Midstream934934
Midstream$31276316276

Midstream second-quarter 2021 pre-tax income was $312 million, compared with $76 million in the first quarter of 2021. Midstream results in the second quarter included $4 million of pension settlement expense. First-quarter results included a $198 million impairment resulting from Phillips 66 Partners’ decision to exit the Liberty Pipeline project, as well as $2 million of winter-storm-related maintenance and repair costs.

Transportation second-quarter adjusted pre-tax income of $224 million was $18 million higher than the first quarter, primarily due to improved volumes from increased refinery utilization rates, partially offset by timing of maintenance and asset integrity work.

NGL and Other adjusted pre-tax income was $83 million in the second quarter, compared with $36 million in the first quarter. The increase was primarily due to lower operating costs and higher volumes, reflecting recovery from the first-quarter winter storms.

The company’s equity investment in DCP Midstream, LLC generated second-quarter adjusted pre-tax income of $9 million, a $25 million decrease from the prior quarter. The decrease is mainly due to lower mark-to-market hedging results from higher natural gas and NGL prices.


Chemicals
Millions of Dollars
Pre-Tax IncomeAdjusted Pre-Tax Income
Q2 2021Q1 2021Q2 2021Q1 2021
Olefins and Polyolefins$562 145 593 174 
Specialties, Aromatics and Styrenics79 26 82 27 
Other(18)(17)(18)(17)
Chemicals$623 154 657 184 

The Chemicals segment reflects Phillips 66’s equity investment in Chevron Phillips Chemical Company LLC (CPChem). Chemicals second-quarter 2021 pre-tax income was $623 million, compared with $154 million in the first quarter of 2021. Chemicals results in the second quarter included an $18 million reduction to equity earnings for pension settlement expense and $16 million of winter-storm-related maintenance and repair costs. First-quarter results included a reduction to equity earnings of $30 million for winter-storm-related costs.

CPChem’s Olefins and Polyolefins (O&P) business contributed $593 million of adjusted pre-tax income in the second quarter, compared with $174 million in the first quarter. The $419 million increase was driven by strong demand, tight supplies and recovery from the first-quarter winter storms that contributed to higher margins and lower utility costs. Global O&P utilization was 102% for the quarter.

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Phillips 66 Reports Second-Quarter 2021 Financial Results
CPChem’s Specialties, Aromatics and Styrenics (SA&S) business contributed second-quarter adjusted pre-tax income of $82 million, compared with $27 million in the first quarter. The increase primarily reflects improved margins due to tight industry supplies following first-quarter winter storm outages, as well as lower turnaround costs.


Refining
Millions of Dollars
Pre-Tax LossAdjusted Pre-Tax Loss
Q2 2021Q1 2021Q2 2021Q1 2021
Refining$(729)(1,040)(706)(1,026)

Refining had a second-quarter 2021 pre-tax loss of $729 million, compared with a pre-tax loss of $1 billion in the first quarter of 2021. Second-quarter results included $20 million of pension settlement expense and $3 million of winter-storm-related maintenance and repair costs. Refining results in the first quarter included $14 million of winter-storm-related costs.

Refining had an adjusted pre-tax loss of $706 million in the second quarter, compared with an adjusted pre-tax loss of $1 billion in the first quarter. The improvement was primarily due to lower utility and turnaround costs and higher volumes, partially offset by lower realized margins. Second-quarter realized margins were lower, as the benefit of improved market crack spreads was more than offset by higher RIN costs, lower electricity sales in the Texas market, decreased secondary product margins, lower clean product differentials and inventory impacts.

Pre-tax turnaround costs for the second quarter were $118 million, compared with first-quarter costs of $192 million. Crude utilization rate was 88% in the second quarter, up from 74% in the first quarter. Clean product yield was 82% in the second quarter, unchanged from the first quarter.


Marketing and Specialties
Millions of Dollars
Pre-Tax IncomeAdjusted Pre-Tax Income
Q2 2021Q1 2021Q2 2021Q1 2021
Marketing and Other $389 211 392 211 
Specialties87 79 87 79 
Marketing and Specialties$476 290 479 290 

Marketing and Specialties (M&S) second-quarter 2021 pre-tax income was $476 million, compared with $290 million in the first quarter of 2021. Second-quarter results included $3 million of pension settlement expense.

Adjusted pre-tax income for Marketing and Other was $392 million in the second quarter, an increase of $181 million from the first quarter. The increase was primarily due to higher domestic margins and volumes, reflecting stronger demand in key markets. Refined product exports in the second quarter were 216,000 barrels per day (BPD).

Specialties generated second-quarter adjusted pre-tax income of $87 million, up from $79 million in the prior quarter.



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Phillips 66 Reports Second-Quarter 2021 Financial Results

Corporate and Other
Millions of Dollars
Pre-Tax LossAdjusted Pre-Tax Loss
Q2 2021Q1 2021Q2 2021Q1 2021
Corporate and Other$(246)(251)(244)(251)

Corporate and Other second-quarter 2021 pre-tax costs were $246 million, compared with pre-tax costs of $251 million in the first quarter of 2021. Second-quarter pre-tax costs included $2 million of pension settlement expense.


Financial Position, Liquidity and Return of Capital

Phillips 66 generated $1.7 billion in cash from operations in the second quarter of 2021, including a working capital benefit of $833 million and cash distributions from equity affiliates of $612 million. The working capital benefit was primarily due to receipt of a U.S. federal income tax refund.

During the quarter, Phillips 66 funded $380 million of capital expenditures and investments and paid $394 million in dividends.

As of June 30, 2021, Phillips 66 had $7.9 billion of liquidity, reflecting $2.2 billion of cash and cash equivalents and approximately $5.7 billion of total committed capacity under revolving credit facilities. Consolidated debt was $15.4 billion at June 30, 2021, including $3.9 billion at Phillips 66 Partners (PSXP). The company’s consolidated debt-to-capital ratio was 43% and its net debt-to-capital ratio was 39%. Excluding PSXP, the debt-to-capital ratio was 39% and the net debt-to-capital ratio was 34%.


Strategic Update

Phillips 66 Partners continued construction of the C2G Pipeline, a 16 inch ethane pipeline that will connect its Clemens Caverns storage facility to petrochemical facilities in Gregory, Texas, near Corpus Christi, Texas. The project is backed by long-term commitments. The pipeline is expected to be operational in the fourth quarter of 2021.

At the Sweeny Hub, Phillips 66 resumed construction of the 150,000-BPD fourth fractionator. The project is expected to be completed in the fourth quarter of 2022 and will increase Sweeny Hub fractionation capacity to 550,000 BPD. The fractionators are supported by long-term commitments.

In Chemicals, CPChem and Qatar Petroleum are jointly pursuing development of petrochemical facilities on the U.S. Gulf Coast and in Ras Laffan, Qatar. CPChem expects to make a final investment decision for its U.S. Gulf Coast project in 2022.

CPChem is expanding its alpha olefins business with a second world-scale unit to produce 1-hexene, a critical component in high-performance polyethylene. In May, CPChem began construction on the 266,000 metric tons per year unit, located in Old Ocean, Texas, near its Sweeny facility. The project will utilize CPChem’s proprietary technology and is expected to start up in 2023.

In May, CPChem received the annual Re|focus Sustainability Leadership Innovation Award from the Plastics Industry Association (PLASTICS) for being among the top 2021 industry innovators in sustainability. The award recognizes the company’s launch of Marlex® Anew Circular Polyethylene, which uses advanced recycling technology to convert difficult-to-recycle plastic waste into high-quality raw materials.
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Phillips 66 Reports Second-Quarter 2021 Financial Results

Phillips 66 is advancing its plans at the San Francisco Refinery in Rodeo, California, to meet the growing demand for renewable fuels. The hydrotreater conversion reached full rates of 8,000 BPD (120 million gallons per year) of renewable diesel in July. Subject to permitting and approvals, full conversion of the refinery is expected to be finished in early 2024. Upon completion, the facility will have over 50,000 BPD (800 million gallons per year) of renewable fuel production capacity. The conversion will reduce emissions from the facility and produce lower-carbon transportation fuels.

In Marketing, Phillips 66 is converting 600 branded retail sites in California to sell renewable diesel produced by the Rodeo facility. In Switzerland, the Phillips 66 COOP retail joint venture is adding hydrogen fueling stations. Through the joint venture, Phillips 66 is exploring hydrogen as a fuel option for heavy-duty vehicles to support European low-carbon goals and growing demand for sustainable fuels.

Phillips 66 recently released its 2021 Sustainability Report. The report includes a detailed analysis of the company’s climate-related risks and opportunities as well as performance data on various environmental, social and governance, or ESG, matters. To view Phillips 66’s 2021 Sustainability Report, go to www.phillips66.com/sustainability.




































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Phillips 66 Reports Second-Quarter 2021 Financial Results


Investor Webcast

Later today, members of Phillips 66 executive management will host a webcast at 1 p.m. EDT to discuss the company’s second-quarter performance and provide an update on strategic initiatives. To access the webcast and view related presentation materials, go to www.phillips66.com/investors and click on “Events & Presentations.” For detailed supplemental information, go to www.phillips66.com/supplemental.



Earnings (Loss)
Millions of Dollars
20212020
Q2Q1Jun YTDQ2Jun YTD
Midstream$312 76 388 324 (378)
Chemicals623 154 777 42 211 
Refining(729)(1,040)(1,769)(878)(3,139)
Marketing and Specialties476 290 766 286 799 
Corporate and Other(246)(251)(497)(219)(416)
Pre-Tax Income (Loss)436 (771)(335)(445)(2,923)
Less: Income tax benefit62 (132)(70)(378)(429)
Less: Noncontrolling interests78 15 93 74 143 
Phillips 66$296 (654)(358)(141)(2,637)
Adjusted Earnings (Loss)
Millions of Dollars
20212020
Q2Q1Jun YTDQ2Jun YTD
Midstream$316 276 592 245 705 
Chemicals657 184 841 89 282 
Refining(706)(1,026)(1,732)(867)(1,268)
Marketing and Specialties479 290 769 293 781 
Corporate and Other(244)(251)(495)(224)(421)
Pre-Tax Income (Loss)502 (527)(25)(464)79 
Less: Income tax expense (benefit)95 (84)11 (190)(166)
Less: Noncontrolling interests78 66 144 50 119 
Phillips 66$329 (509)(180)(324)126 
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Phillips 66 Reports Second-Quarter 2021 Financial Results
About Phillips 66

Phillips 66 is a diversified energy manufacturing and logistics company. With a portfolio of Midstream, Chemicals, Refining, and Marketing and Specialties businesses, the company processes, transports, stores and markets fuels and products globally. Phillips 66 Partners, the company’s master limited partnership, is integral to the portfolio. Headquartered in Houston, the company has 14,000 employees committed to safety and operating excellence. Phillips 66 had $57 billion of assets as of June 30, 2021. For more information, visit www.phillips66.com or follow us on Twitter @Phillips66Co.

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CONTACTS
Jeff Dietert (investors)Shannon Holy (investors)Thaddeus Herrick (media)
832-765-2297832-765-2297855-841-2368
jeff.dietert@p66.comshannon.m.holy@p66.comthaddeus.f.herrick@p66.com
CAUTIONARY STATEMENT FOR THE PURPOSES OF THE “SAFE HARBOR” PROVISIONS
OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This news release 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,” “continues,” “intends,” “will,” “would,” “objectives,” “goals,” “projects,” “efforts,” “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 included in this news release are based on management’s expectations, estimates and projections as of the date they are made. These statements are not guarantees of future performance and you should not unduly rely on them as they 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: the continuing effects of the COVID-19 pandemic and its negative impact on commercial activity and demand for refined petroleum products; the inability to timely obtain or maintain permits necessary for capital projects; changes to worldwide government policies relating to renewable fuels and greenhouse gas emissions that adversely affect programs like the renewable fuel standards program, low carbon fuel standards and tax credits for biofuels; fluctuations in NGL, crude oil, and natural gas prices, and petrochemical and refining margins; unexpected changes in costs for constructing, modifying or operating our facilities; unexpected difficulties in manufacturing, refining or transporting our products; the level and success of drilling and production volumes around our Midstream assets; risks and uncertainties with respect to the actions of actual or potential competitive suppliers and transporters of refined petroleum products, renewable fuels or specialty products; lack of, or disruptions in, adequate and reliable transportation for our NGL, crude oil, natural gas, and refined products; potential liability from litigation or for remedial actions, including removal and reclamation obligations under environmental regulations; failure to complete construction of capital projects on time and within budget; the inability to comply with governmental regulations or make capital expenditures to maintain compliance; limited access to capital or significantly higher cost of capital related to illiquidity or uncertainty in the domestic or international financial markets; potential disruption of our operations due to accidents, weather events, including as a result of climate change, terrorism or cyberattacks; general domestic and international economic and political developments including armed hostilities, expropriation of assets, and other political, economic or diplomatic developments, including those caused by public health issues and international monetary conditions and exchange controls; changes in governmental policies relating to NGL, crude oil, natural gas, refined petroleum products, or renewable fuels pricing, regulation or taxation, including exports; changes in estimates or projections used to assess fair value of intangible assets, goodwill and property and equipment and/or strategic decisions with respect to our asset portfolio that cause impairment charges; investments required, or reduced demand for products, as a result of environmental rules and regulations; changes in tax, environmental and other laws and regulations (including alternative energy mandates); the operation, financing and distribution decisions of equity affiliates we do not control; the impact of adverse market conditions or other similar risks to those identified herein affecting PSXP, 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.
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Phillips 66 Reports Second-Quarter 2021 Financial Results

Use of Non-GAAP Financial InformationThis news release includes the terms “adjusted earnings (loss),” “adjusted earnings (loss) per share” and “adjusted pre-tax income (loss).” These are non-GAAP financial measures that are included to help facilitate comparisons of operating performance across periods and to help facilitate comparisons with other companies in our industry, by excluding items that do not reflect the core operating results of our businesses in the current period. This release also includes a “debt-to-capital ratio excluding PSXP.” This non-GAAP measure is provided to differentiate the capital structure of Phillips 66 compared with that of Phillips 66 Partners.

References in the release to total consolidated earnings (loss) refer to net income (loss) attributable to Phillips 66.

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Phillips 66 Reports Second-Quarter 2021 Financial Results
 Millions of Dollars
 Except as Indicated
20212020
Q2Q1Jun YTDQ2Jun YTD
Reconciliation of Consolidated Earnings (Loss) to Adjusted Earnings (Loss)
Consolidated Earnings (Loss)$296 (654)(358)(141)(2,637)
Pre-tax adjustments:
Impairments— 198 198 — 3,006 
Impairments by equity affiliates— — — 15 15 
Pending claims and settlements— — — — (37)
Certain tax impacts— — — (8)(8)
Pension settlement expense47 — 47 38 38 
  Winter-storm-related costs19 46 65 — — 
Lower-of-cost-or-market inventory adjustments— — — 20 72 
Asset dispositions— — — (84)(84)
Tax impact of adjustments*(16)(48)(64)(208)(283)
Other tax impacts(17)— (17)20 20 
Noncontrolling interests— (51)(51)24 24 
Adjusted earnings (loss)$329 (509)(180)(324)126 
Loss per share of common stock (dollars)
$0.66 (1.49)(0.83)(0.33)(6.00)
Adjusted earnings (loss) per share of common stock (dollars)
$0.74 (1.16)(0.43)(0.74)0.28 
Reconciliation of Segment Pre-Tax Income (Loss) to Adjusted Pre-Tax Income (Loss)
Midstream Pre-Tax Income (Loss)$312 76 388 324 (378)
Pre-tax adjustments:
Impairments— 198 198 — 1,161 
Pension settlement expense— 
  Winter-storm-related costs— — — 
Lower-of-cost-or-market inventory adjustments— — — — 
Asset dispositions— — — (84)(84)
Adjusted pre-tax income$316 276 592 245 705 
Chemicals Pre-Tax Income$623 154 777 42 211 
Pre-tax adjustments:
Impairments by equity affiliates— — — 15 15 
Pension settlement expense18 — 18 — — 
  Winter-storm-related costs16 30 46 — — 
Lower-of-cost-or-market inventory adjustments— — — 32 56 
Adjusted pre-tax income$657 184 841 89 282 
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Phillips 66 Reports Second-Quarter 2021 Financial Results
 Millions of Dollars
 Except as Indicated
20212020
Q2Q1Jun YTDQ2Jun YTD
Reconciliation of Segment Pre-Tax Income (Loss) to Adjusted Pre-Tax Income (Loss)
Refining Pre-Tax Loss$(729)(1,040)(1,769)(878)(3,139)
Pre-tax adjustments:
Impairments— — — — 1,845 
Pension settlement expense20 — 20 26 26 
Winter-storm-related costs14 17 — — 
Lower-of-cost-or-market inventory adjustments— — — (15)— 
Adjusted pre-tax loss$(706)(1,026)(1,732)(867)(1,268)
Marketing and Specialties Pre-Tax Income$476 290 766 286 799 
Pre-tax adjustments:
Pending claims and settlements— — — — (37)
Pension settlement expense— 
Lower-of-cost-or-market inventory adjustments— — — 15 
Adjusted pre-tax income$479 290 769 293 781 
Corporate and Other Pre-Tax Loss$(246)(251)(497)(219)(416)
Pre-tax adjustments:
Certain tax impacts— — — (8)(8)
Pension settlement expense— 
Adjusted pre-tax loss$(244)(251)(495)(224)(421)
*We generally tax effect taxable U.S.-based special items using a combined federal and state annual statutory income tax rate of approximately 25%. Taxable special items attributable to foreign locations likewise use a local statutory income tax rate. Nontaxable events reflect zero income tax. These events include, but are not limited to, most goodwill impairments, transactions legislatively exempt from income tax, transactions related to entities for which we have made an assertion that the undistributed earnings are permanently reinvested, or transactions occurring in jurisdictions with a valuation allowance.
†YTD 2020 is based on adjusted weighted-average diluted shares outstanding of 440,653 thousand and other periods are based on the same weighted-average diluted shares outstanding as that used in the GAAP diluted earnings per share calculation. Income allocated to participating securities, if applicable, in the adjusted earnings per share calculation is the same as that used in the GAAP diluted earnings per share calculation.
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Phillips 66 Reports Second-Quarter 2021 Financial Results
Millions of Dollars
Except as Indicated
June 30, 2021
Debt-to-Capital Ratio
Phillips 66
Consolidated
PSXP*Phillips 66
Excluding PSXP
Total Debt$15,413 3,910 11,503 
Total Equity20,602 2,426 18,176 
Debt-to-Capital Ratio43 %39 %
Total Cash$2,207 2,205 
Net Debt-to-Capital Ratio39 %34 %
*PSXP’s third-party debt and Phillips 66’s noncontrolling interests attributable to PSXP.



Page 11

Exhibit 99.2
Phillips 66 Earnings Release Supplemental Data
psxphillips66a.jpg

CONSOLIDATED STATEMENT OF OPERATIONS
Millions of Dollars, Except as Indicated
20212020
1st Qtr2nd Qtr3rd Qtr4th QtrYTD1st Qtr2nd Qtr3rd Qtr4th QtrYTD
Revenues and Other Income
Sales and other operating revenues21,627 27,002 48,629 20,878 10,913 15,929 16,409 64,129 
Equity in earnings of affiliates285 830 1,115 365 157 349 320 1,191 
Net gain on dispositions— 85 21 108 
Other income15 51 66 — 28 20 18 66 
Total Revenues and Other Income21,927 27,885 49,812 21,244 11,183 16,299 16,768 65,494 
Costs and Expenses
Purchased crude oil and products20,065 25,218 45,283 18,440 9,608 14,509 15,150 57,707 
Operating expenses1,380 1,175 2,555 1,341 1,026 1,016 1,180 4,563 
Selling, general and administrative expenses408 433 841 319 409 384 432 1,544 
Depreciation and amortization356 364 720 342 343 352 358 1,395 
Impairments198 — 198 3,006 — 1,140 106 4,252 
Taxes other than income taxes139 119 258 157 114 106 87 464 
Accretion on discounted liabilities12 22 
Interest and debt expense146 143 289 111 117 132 139 499 
Foreign currency transaction (gains) losses— (9)(9)— 12 
Total Costs and Expenses22,698 27,449 50,147 23,722 11,628 17,649 17,459 70,458 
Income (loss) before income taxes(771)436 (335)(2,478)(445)(1,350)(691)(4,964)
Income tax expense (benefit)(132)62 (70)(51)(378)(624)(197)(1,250)
Net Income (Loss)(639)374 (265)(2,427)(67)(726)(494)(3,714)
Less: net income attributable to noncontrolling interests15 78 93 69 74 73 45 261 
Net Income (Loss) Attributable to Phillips 66(654)296 (358)(2,496)(141)(799)(539)(3,975)
Net Income (Loss) Attributable to Phillips 66 Per Share of Common Stock (dollars)
Basic(1.49)0.66 (0.83)(5.66)(0.33)(1.82)(1.23)(9.06)
Diluted(1.49)0.66 (0.83)(5.66)(0.33)(1.82)(1.23)(9.06)
Weighted-Average Common Shares Outstanding (thousands)
Basic439,504 439,940 439,722 441,345 438,756 438,916 439,115 439,530 
Diluted439,504 440,396 439,722 441,345 438,756 438,916 439,115 439,530 
Effective tax rate (%)17.1 %14.2 %20.9 %2.1 %84.9 %46.2 %28.5 %25.2 %
Adjusted effective tax rate (%)15.9 %18.9 %(44.0)%4.4 %40.9 %125.7 %25.6 %85.2 %

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Phillips 66 Earnings Release Supplemental Data
RECONCILIATION OF INCOME (LOSS) BEFORE INCOME TAXES BY SEGMENT TO
NET INCOME (LOSS) ATTRIBUTABLE TO PHILLIPS 66
Millions of Dollars
20212020
1st Qtr2nd Qtr3rd Qtr4th QtrYTD1st Qtr2nd Qtr3rd Qtr4th QtrYTD
Midstream76 312 388 (702)324 146 223 (9)
Chemicals154 623 777 169 42 231 193 635 
Refining(1,040)(729)(1,769)(2,261)(878)(1,903)(1,113)(6,155)
Marketing and Specialties290 476 766 513 286 415 232 1,446 
Corporate and Other(251)(246)(497)(197)(219)(239)(226)(881)
Income (loss) before income taxes(771)436 (335)(2,478)(445)(1,350)(691)(4,964)
Less: income tax expense (benefit)(132)62 (70)(51)(378)(624)(197)(1,250)
Net Income (Loss)(639)374 (265)(2,427)(67)(726)(494)(3,714)
Less: net income attributable to noncontrolling interests15 78 93 69 74 73 45 261 
Net Income (Loss) Attributable to Phillips 66(654)296 (358)(2,496)(141)(799)(539)(3,975)
RECONCILIATION OF ADJUSTED INCOME (LOSS) BEFORE INCOME TAXES BY SEGMENT TO
ADJUSTED NET INCOME (LOSS) ATTRIBUTABLE TO PHILLIPS 66
Millions of Dollars
20212020
1st Qtr2nd Qtr3rd Qtr4th QtrYTD1st Qtr2nd Qtr3rd Qtr4th QtrYTD
Midstream
Transportation206 224 430 200 130 202 196 728 
NGL and Other36 83 119 179 83 102 86 450 
DCP Midstream34 43 81 32 50 41 204 
Total Midstream276 316 592 460 245 354 323 1,382 
Chemicals184 657 841 193 89 132 203 617 
Refining
Atlantic Basin/Europe(152)(108)(260)(196)(220)(197)(166)(779)
Gulf Coast(247)(253)(500)(173)(356)(389)(442)(1,360)
Central Corridor(241)(76)(317)223 (113)(129)(177)(196)
West Coast(386)(269)(655)(255)(178)(255)(309)(997)
Total Refining(1,026)(706)(1,732)(401)(867)(970)(1,094)(3,332)
Marketing and Specialties
Marketing and Other211 392 603 434 259 366 181 1,240 
Specialties79 87 166 54 34 51 40 179 
Total Marketing and Specialties290 479 769 488 293 417 221 1,419 
Corporate and Other(251)(244)(495)(197)(224)(213)(235)(869)
Adjusted income (loss) before income taxes(527)502 (25)543 (464)(280)(582)(783)
Less: adjusted income tax expense (benefit)(84)95 11 24 (190)(352)(149)(667)
Adjusted Net Income (Loss)(443)407 (36)519 (274)72 (433)(116)
Less: adjusted net income attributable to noncontrolling interests66 78 144 69 50 73 74 266 
Adjusted Net Income (Loss) Attributable to Phillips 66(509)329 (180)450 (324)(1)(507)(382)
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Phillips 66 Earnings Release Supplemental Data
SPECIAL ITEMS INCLUDED IN INCOME (LOSS) BEFORE INCOME TAXES BY SEGMENT
AND NET INCOME (LOSS) ATTRIBUTABLE TO PHILLIPS 66
Millions of Dollars
20212020
1st Qtr2nd Qtr3rd Qtr4th QtrYTD1st Qtr2nd Qtr3rd Qtr4th QtrYTD
Midstream
Impairments(198)— (198)(1,161)— (204)(96)(1,461)
Pension settlement expense— (4)(4)— (5)(3)(1)(9)
Hurricane-related costs— — — — — (1)(3)(4)
Winter-storm-related costs(2)— (2)— — — — — 
Lower-of-cost-or-market inventory adjustments— — — (1)— — — (1)
Asset dispositions— — — — 84 — — 84 
Total Midstream(200)(4)(204)(1,162)79 (208)(100)(1,391)
Chemicals
Impairments by equity affiliates— — — — (15)— — (15)
Pension settlement expense— (18)(18)— — — (21)(21)
Hurricane-related costs— — — — — (2)(1)(3)
Winter-storm-related costs(30)(16)(46)— — — — — 
Lower-of-cost-or-market inventory adjustments— — — (24)(32)101 12 57 
Total Chemicals(30)(34)(64)(24)(47)99 (10)18 
Refining
Impairments— — — (1,845)— (910)— (2,755)
Certain tax impacts— — — — — — 
Pension settlement expense— (20)(20)— (26)(12)(3)(41)
Hurricane-related costs— — — — — (11)(22)(33)
Winter-storm-related costs(14)(3)(17)— — — — — 
Lower-of-cost-or-market inventory adjustments— — — (15)15 — — — 
Total Refining(14)(23)(37)(1,860)(11)(933)(19)(2,823)
Marketing and Specialties
Pending claims and settlements— — — 37 — — — 37 
Pension settlement expense— (3)(3)— (4)(1)(1)(6)
Hurricane-related costs— — — — — (1)(2)(3)
Lower-of-cost-or-market inventory adjustments— — — (12)(3)— 14 (1)
Total Marketing and Specialties— (3)(3)25 (7)(2)11 27 
Corporate and Other
Impairments— — — — — (25)— (25)
Certain tax impacts— — — — — — 
Pension settlement expense— (2)(2)— (3)(1)— (4)
Asset dispositions— — — — — — 
Total Corporate and Other— (2)(2)— (26)(12)
Total Special Items (Pre-tax)(244)(66)(310)(3,021)19 (1,070)(109)(4,181)
Less: Income Tax Expense (Benefit)
Tax impact of pre-tax special items*(48)(16)(64)(75)(208)(262)(23)(568)
Other tax impacts— (17)(17)— 20 (10)(25)(15)
Total Income Tax Expense (Benefit)(48)(33)(81)(75)(188)(272)(48)(583)
Less: Income (Loss) Attributable to Noncontrolling Interests
Impairments(51)— (51)— — — (28)(28)
Hurricane-related costs— — — — — — (1)(1)
Asset dispositions— — — — 24 — — 24 
Total Income (Loss) Attributable to Noncontrolling Interests(51)— (51)— 24 — (29)(5)
Total Phillips 66 Special Items (After-tax)(145)(33)(178)(2,946)183 (798)(32)(3,593)
* We generally tax effect taxable U.S.-based special items using a combined federal and state annual statutory income tax rate of approximately 25%. Taxable special items attributable to foreign locations likewise use a local statutory income tax rate. Nontaxable events reflect zero income tax. These events include, but are not limited to, most goodwill impairments, transactions legislatively exempt from income tax, transactions related to entities for which we have made an assertion that the undistributed earnings are permanently reinvested, or transactions occurring in jurisdictions with a valuation allowance.
SPECIAL ITEMS INCLUDED IN INCOME (LOSS) BEFORE INCOME TAXES BY BUSINESS LINES/REGIONS
Millions of Dollars
20212020
1st Qtr2nd Qtr3rd Qtr4th QtrYTD1st Qtr2nd Qtr3rd Qtr4th QtrYTD
Midstream
Transportation(199)— (199)— 84 (205)(99)(220)
NGL and Other(1)(4)(5)— (5)(3)(1)(9)
DCP Midstream— — — (1,162)— — — (1,162)
Total Midstream(200)(4)(204)(1,162)79 (208)(100)(1,391)
Refining
Atlantic Basin/Europe(1)(2)(3)(441)(7)(2)(445)
Gulf Coast(6)(11)(17)(670)(9)(16)(22)(717)
Central Corridor(7)(6)(13)(450)(3)(1)(445)
West Coast— (4)(4)(299)(4)(912)(1)(1,216)
Total Refining(14)(23)(37)(1,860)(11)(933)(19)(2,823)
Marketing and Specialties
Marketing and Other— (3)(3)37 (4)(1)(1)31 
Specialties— — — (12)(3)(1)12 (4)
Total Marketing and Specialties— (3)(3)25 (7)(2)11 27 
Page 3


Phillips 66 Earnings Release Supplemental Data
CASH FLOW INFORMATION
Millions of Dollars
20212020
1st Qtr2nd Qtr3rd Qtr4th QtrYTD1st Qtr2nd Qtr3rd Qtr4th QtrYTD
Cash Flows From Operating Activities
Net income (loss)(639)374 (265)(2,427)(67)(726)(494)(3,714)
Depreciation and amortization356 364 720 342 343 352 358 1,395 
Impairments198 — 198 3,006 — 1,140 106 4,252 
Accretion on discounted liabilities12 22 
Deferred income taxes(103)266 163 (47)26 23 124 126 
Undistributed equity earnings217 (218)(1)(4)302 (44)80 334 
Net gain on dispositions— (2)(2)(1)(85)(1)(21)(108)
Other138 120 258 (139)146 45 78 130 
Net working capital changes98 833 931 (519)94 (304)403 (326)
Net Cash Provided by Operating Activities271 1,743 2,014 217 764 491 639 2,111 
Cash Flows From Investing Activities
Capital expenditures and investments(331)(380)(711)(923)(939)(552)(506)(2,920)
Return of investments in equity affiliates58 100 158 38 50 51 53 192 
Proceeds from asset dispositions— 24 24 — 48 51 
Advances/loans—related parties(155)(90)(245)(8)(223)(20)(65)(316)
Collection of advances/loans—related parties— — — — 44 — — 44 
Other(39)(6)(45)15 (79)(23)(43)(130)
Net Cash Used in Investing Activities(467)(352)(819)(877)(1,147)(542)(513)(3,079)
Cash Flows From Financing Activities
Issuance of debt450 15 465 1,199 2,031 75 1,873 5,178 
Repayment of debt(925)(54)(979)(7)(534)(5)(505)(1,051)
Issuance of common stock20 24 — — 
Repurchase of common stock— — — (443)— — — (443)
Dividends paid on common stock(394)(394)(788)(396)(393)(393)(393)(1,575)
Distributions to noncontrolling interests(76)(82)(158)(61)(66)(74)(88)(289)
Repurchase of noncontrolling interests— (24)(24)— — — — — 
Other(20)(7)(27)(22)(7)(17)(37)
Net Cash Provided by (Used in) Financing Activities(945)(542)(1,487)276 1,047 (404)872 1,791 
Effect of Exchange Rate Changes on Cash and Cash Equivalents(22)(15)(9)27 54 77 
Net Change in Cash and Cash Equivalents(1,163)856 (307)(393)669 (428)1,052 900 
Cash and cash equivalents at beginning of period2,514 1,351 2,514 1,614 1,221 1,890 1,462 1,614 
Cash and Cash Equivalents at End of Period1,351 2,207 2,207 1,221 1,890 1,462 2,514 2,514 
CAPITAL PROGRAM
Millions of Dollars
20212020
1st Qtr2nd Qtr3rd Qtr4th QtrYTD1st Qtr2nd Qtr3rd Qtr4th QtrYTD
Consolidated Capital Expenditures and Investments
Midstream100 141 241 580 597 315 194 1,686 
Chemicals— — — — — — — — 
Refining184 186 370 245 164 168 239 816 
Marketing and Specialties22 22 44 25 86 28 34 173 
Corporate and Other25 31 56 50 54 38 42 184 
Adjusted Capital Spending331 380 711 900 901 549 509 2,859 
Capital expenditures and investments funded by a joint venture partner (Midstream)*— — — 23 38 (3)61 
Consolidated Capital Expenditures and Investments331 380 711 923 939 552 506 2,920 
* Includes previously funded capital returned to our joint venture partner in the fourth quarter of 2020.
Proportional Share of Selected Equity Affiliates Capital Expenditures and Investments*
DCP Midstream (Midstream)14 21 46 44 12 17 119 
CPChem (Chemicals)79 72 151 126 13 65 80 284 
WRB (Refining)59 47 106 37 34 39 65 175 
Selected Equity Affiliates145 133 278 209 91 116 162 578 
* Represents Phillips 66’s portion of self-funded capital spending by DCP Midstream, LLC (DCP Midstream), Chevron Phillips Chemical Company LLC (CPChem) and WRB Refining LP (WRB).
Page 4


Phillips 66 Earnings Release Supplemental Data
MIDSTREAM
Millions of Dollars, Except as Indicated
20212020
1st Qtr2nd Qtr3rd Qtr4th QtrYTD1st Qtr2nd Qtr3rd Qtr4th QtrYTD
 Income (Loss) before Income Taxes
Transportation224 231 200 214 (3)97 508 
NGL and Other35 79 114 179 78 99 85 441 
DCP Midstream34 43 (1,081)32 50 41 (958)
 Income (Loss) before Income Taxes
76 312 388 (702)324 146 223 (9)
Adjusted EBITDA*
PSXP**289 336 625 322 271 315 317 1,225 
Other Midstream92 110 202 188 75 115 105 483 
Transportation and NGL and Other381 446 827 510 346 430 422 1,708 
DCP Midstream71 46 117 129 66 88 79 362 
Adjusted EBITDA452 492 944 639 412 518 501 2,070 
* See reconciliation of income (loss) before income taxes to adjusted EBITDA.
** Does not include certain PSXP adjustments made for PSXP stand-alone reporting purposes.
Equity in Earnings of Affiliates
Transportation126 120 246 98 70 103 108 379 
NGL and Other37 44 81 51 49 44 37 181 
DCP Midstream34 42 80 32 49 40 201 
Total197 172 369 229 151 196 185 761 
Depreciation and Amortization*
Transportation40 40 80 38 38 41 42 159 
NGL and Other52 52 104 39 39 42 52 172 
DCP Midstream— — — — — — — — 
Total92 92 184 77 77 83 94 331 
* Excludes D&A of all equity affiliates.
Operating and SG&A Expenses*
Transportation173 189 362 188 186 185 199 758 
NGL and Other122 88 210 68 71 71 84 294 
DCP Midstream— — — — — (1)— (1)
Total295 277 572 256 257 255 283 1,051 
* Excludes operating and SG&A expenses of all equity affiliates.
Transportation Volumes (MB/D)
Pipelines*2,801 3,424 3,114 3,178 2,840 3,076 2,925 3,005 
Terminals2,675 2,786 2,731 3,148 2,883 2,966 2,886 2,971 
* Pipelines represent the sum of volumes transported through each separately tariffed consolidated pipeline segment.
PSX Other Volumes
NGL Fractionated (MB/D)*363 401 382 198 170 217 411 249 
* Excludes DCP Midstream.
100% DCP Midstream, LLC Results
Net Income (Loss) Attributable to Owners*27 (35)(8)50 (348)58 38 (202)
* Includes impairment charges of $159 million and $650 million in the first and second quarters of 2020, respectively.
Depreciation and Amortization91 92 183 99 93 93 91 376 
Operating and SG&A Expenses189 222 411 202 212 212 240 866 
Net Interest Expense*77 77 154 78 71 77 76 302 
* Net of interest income.
Capital Expenditures and Investments14 28 42 92 87 24 35 238 
Selected DCP Operating Statistics
Wellhead Volume (Bcf/D)4.1 4.4 4.2 5.0 4.5 4.5 4.5 4.6 
NGL Production (MB/D)356 406 381 396 374 414 414 399