Form 8-K Phillips 66 For: Oct 29

October 29, 2021 9:20 AM

Exhibit 99.1

Phillips 66 Reports Third-Quarter 2021 Financial Results

•Reported third-quarter earnings of $402 million or $0.91 per share; adjusted earnings of $1.4 billion or $3.18 per share

•Generated $2.2 billion of operating cash flow; $1.4 billion excluding working capital

•Delivered strong Midstream, Chemicals, and Marketing and Specialties earnings

•Significant improvement in Refining realized margins

•Paid off $500 million term loan

•Recently increased quarterly dividend to 92 cents per share

•Recently announced agreement to acquire all publicly held units of Phillips 66 Partners

•Announced greenhouse gas emissions reduction targets

•Expanded presence in the battery supply chain through strategic investment in NOVONIX

HOUSTON, Oct. 29, 2021 – Phillips 66 (NYSE: PSX), a diversified energy manufacturing and logistics company, announces third-quarter 2021 earnings of $402 million, compared with earnings of $296 million in the second quarter of 2021. Excluding special items of $1.0 billion, primarily an impairment of the Alliance Refinery following Hurricane Ida, the company had adjusted earnings of $1.4 billion in the third quarter, compared with second-quarter adjusted earnings of $329 million.

“In the third quarter, we delivered a significant improvement in earnings and cash generation,” said Greg Garland, Chairman and CEO of Phillips 66. “Our Midstream, Chemicals, and Marketing and Specialties businesses continued to deliver strong results. In Refining, we saw a notable improvement in realized margins, operated well and navigated hurricane-related challenges.

“So far this year we have reduced debt by $1 billion, further strengthening our balance sheet. We recently increased the dividend, reflecting our confidence in the company’s strategy and cash flow recovery, as well as our commitment to a secure, competitive and growing dividend. We will continue to focus on debt repayment, disciplined capital allocation, and delivering attractive shareholder returns.

“Earlier this week we announced an agreement to buy-in Phillips 66 Partners. The transaction simplifies our structure and asset ownership across our integrated portfolio. We believe both PSX shareholders and PSXP unitholders will benefit from the combination.

“In addition, we recently announced our greenhouse gas emissions intensity reduction targets, demonstrating our commitment to sustainably providing energy today and in the future. Our targets are measurable, achievable and meaningful. We believe achieving the targets will drive value for shareholders and other stakeholders. We are expanding our presence in the battery supply chain through our investment in NOVONIX and announced a collaboration with Plug Power to identify and advance green hydrogen opportunities. We will continue to focus on lower-carbon initiatives that generate strong returns.”

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Phillips 66 Reports Third-Quarter 2021 Financial Results

Midstream


	Millions of Dollars


	Pre-Tax Income			Adjusted Pre-Tax Income
	Q3 2021		Q2 2021	Q3 2021	Q2 2021
Transportation	$	244	224	254	224
NGL and Other	354		79	357	83
DCP Midstream	31		9	31	9
Midstream	$	629	312	642	316

Midstream third-quarter 2021 pre-tax income was $629 million, compared with $312 million in the second quarter of 2021. Midstream results in the third quarter included a $10 million impairment and $3 million of pension settlement expense. Second-quarter results included $4 million of pension settlement expense.

Transportation third-quarter adjusted pre-tax income of $254 million was $30 million higher than the second quarter, primarily due to higher equity earnings from the Bakken and Gray Oak pipelines.

NGL and Other adjusted pre-tax income was $357 million in the third quarter, compared with $83 million in the second quarter. The increase was primarily due to a $224 million unrealized investment gain related to NOVONIX, as well as inventory impacts.

The company’s equity investment in DCP Midstream, LLC generated third-quarter adjusted pre-tax income of $31 million, a $22 million increase from the prior quarter. The increase was mainly driven by improved margins and hedging impacts.

Chemicals


	Millions of Dollars


	Pre-Tax Income (Loss)			Adjusted Pre-Tax Income (Loss)
	Q3 2021		Q2 2021	Q3 2021	Q2 2021
Olefins and Polyolefins	$	611	562	613	593
Specialties, Aromatics and Styrenics	36		79	37	82
Other	(16)		(18)	(16)	(18)
Chemicals	$	631	623	634	657

The Chemicals segment reflects Phillips 66’s equity investment in Chevron Phillips Chemical Company LLC (CPChem). Chemicals third-quarter 2021 pre-tax income was $631 million, compared with $623 million in the second quarter of 2021. Chemicals results in the third quarter included a $2 million reduction to equity earnings for pension settlement expense and $1 million of maintenance and repair costs related to Hurricane Ida. Second-quarter results included an $18 million reduction to equity earnings for pension settlement expense and $16 million of winter-storm-related maintenance and repair costs.

CPChem’s Olefins and Polyolefins (O&P) business contributed $613 million of adjusted pre-tax income in the third quarter, compared with $593 million in the second quarter. The $20 million increase was primarily due to higher polyethylene sales volumes driven by continued strong demand, partially offset by higher utility costs. Global O&P utilization was 102% for the quarter.

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Phillips 66 Reports Third-Quarter 2021 Financial Results

CPChem’s Specialties, Aromatics and Styrenics (SA&S) business contributed third-quarter adjusted pre-tax income of $37 million, compared with $82 million in the second quarter. The decrease was driven by lower margins.

Refining

Millions of Dollars

Pre-Tax (Loss)

Adjusted Pre-Tax Income (Loss)

Q3 2021

Q2 2021

Q3 2021

Q2 2021

Refining

(1,126)

(729)

184

(706)

Refining had a third-quarter 2021 pre-tax loss of $1.1 billion, compared with a pre-tax loss of $729 million in the second quarter of 2021. Refining results in the third quarter included a $1.3 billion impairment of the Alliance Refinery, as well as $12 million of pension settlement expense and $10 million of hurricane-related costs. Second-quarter results included $20 million of pension settlement expense and $3 million of winter-storm-related costs.

Refining had adjusted pre-tax income of $184 million in the third quarter, compared with an adjusted pre-tax loss of $706 million in the second quarter. The improvement was primarily due to higher realized margins. Third-quarter realized margins were $8.57 per barrel, up from $3.92 per barrel mainly due to higher market crack spreads, lower RIN costs and improved product differentials.

Pre-tax turnaround costs for the third quarter were $81 million, compared with second-quarter costs of $118 million. Crude utilization rate was 86% in the third quarter, down from 88% in the second quarter due to hurricane impacts. Clean product yield was 84% in the third quarter, up 2% from the second quarter.

Marketing and Specialties


	Millions of Dollars


	Pre-Tax Income			Adjusted Pre-Tax Income
	Q3 2021		Q2 2021	Q3 2021	Q2 2021
Marketing and Other	$	452	389	454	392
Specialties	93		87	93	87
Marketing and Specialties	$	545	476	547	479

Marketing and Specialties (M&S) third-quarter 2021 pre-tax income was $545 million, compared with $476 million in the second quarter of 2021. M&S results included $2 million and $3 million of pension settlement expense in the third quarter and second quarter, respectively.

Adjusted pre-tax income for Marketing and Other was $454 million in the third quarter, an increase of $62 million from the second quarter. The increase was primarily due to higher international margins and volumes driven by the easing of COVID-19 restrictions. Refined product exports in the third quarter were 209,000 barrels per day (BPD).

Specialties generated third-quarter adjusted pre-tax income of $93 million, up from $87 million in the prior quarter, largely due to improved base oil margins.

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Phillips 66 Reports Third-Quarter 2021 Financial Results

Corporate and Other

Millions of Dollars

Pre-Tax Loss

Adjusted Pre-Tax Loss

Q3 2021

Q2 2021

Q3 2021

Q2 2021

Corporate and Other

(231)

(246)

(230)

(244)

Corporate and Other third-quarter 2021 pre-tax costs were $231 million, compared with pre-tax costs of $246 million in the second quarter of 2021. Pre-tax costs included $1 million and $2 million of pension settlement expense in the third quarter and second quarter, respectively.

In Corporate and Other, the $14 million decrease in adjusted pre-tax loss was driven by lower environmental and employee-related costs, partially offset by higher net interest expense.

Financial Position, Liquidity and Return of Capital

Phillips 66 generated $2.2 billion in cash from operations in the third quarter of 2021, including cash distributions from equity affiliates of $905 million. Excluding working capital impacts, operating cash flow was $1.4 billion.

During the quarter, Phillips 66 funded $552 million of capital expenditures and investments and paid $394 million in dividends. Additionally, Phillips 66 repaid its $500 million term loan due November 2023.

As of Sept. 30, 2021, Phillips 66 had $8.6 billion of liquidity, reflecting $2.9 billion of cash and cash equivalents and approximately $5.7 billion of total committed capacity under revolving credit facilities. Consolidated debt was $14.9 billion at Sept. 30, 2021, including $3.9 billion at Phillips 66 Partners. The company’s consolidated debt-to-capital ratio was 42% and its net debt-to-capital ratio was 37%.

Merger Agreement with Phillips 66 Partners

On Oct. 27, 2021, the company announced it has entered into an agreement to acquire all of the publicly held common units representing limited partner interest in Phillips 66 Partners not already owned by Phillips 66 and its affiliates. The agreement provides for 0.50 shares of Phillips 66 common stock to be issued for each Phillips 66 Partners common unit. Phillips 66 Partners’ preferred units will be converted into common units at a premium to the original issuance price prior to exchange for Phillips 66 common stock. The value of the transaction, which is expected to close in the first quarter of 2022, is $3.4 billion based on Oct. 26, 2021, market closing prices of both companies. Upon closing, the Partnership will be a wholly owned subsidiary of Phillips 66 and will no longer be a publicly traded partnership.

Strategic Update

In Midstream, Phillips 66 Partners recently completed construction of the C2G Pipeline, a 16 inch ethane pipeline that connects its Clemens Caverns storage facility to petrochemical facilities in Gregory, Texas, near Corpus Christi, Texas. The pipeline is expected to begin commercial operations in the fourth quarter of 2021 and is backed by long-term commitments.

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Phillips 66 Reports Third-Quarter 2021 Financial Results

At the Sweeny Hub, Phillips 66 resumed construction of Frac 4 in July. The 150,000-BPD fractionator 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 Energy 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. The 266,000 metric tons per year unit will be 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 August, CPChem received 24 safety awards from the Texas Chemical Council for excellence in safety performance across eight of its sites. The awards reaffirm CPChem’s longstanding commitment to operating excellence.

Phillips 66 is advancing its plans at the San Francisco Refinery in Rodeo, California, to meet the growing demand for renewable fuels. The hydrotreater feedstock flexibility project reached full rates of 8,000 BPD (120 million gallons per year) of renewable diesel in July. Separately, subject to permitting and approvals, the Rodeo Renewed refinery conversion project is expected to be finished in early 2024. Upon completion, the facility will initially 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.

The Alliance Refinery sustained significant impacts from Hurricane Ida and is expected to remain shut down through the fourth quarter of 2021. The company continues to assess future strategic options for the refinery.

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. Phillips 66 is exploring additional opportunities with hydrogen and electric vehicle charging to support European low-carbon goals and growing demand for sustainable fuels.

In September 2021, Phillips 66 announced a set of company-wide greenhouse gas emissions reduction targets that are impactful, attainable and measurable. By 2030, the company expects to reduce GHG emissions intensity by 30% for Scope 1 and 2 emissions from its operations and by 15% for Scope 3 emissions from its energy products, below 2019 levels.

The targets build on the company’s lower-carbon strategy and leverage its Emerging Energy business platform, through which Phillips 66 continues to advance its efforts in renewable fuels, batteries, carbon capture and hydrogen. Recent announcements include:

•Expanding its presence in the battery supply chain. In September 2021, Phillips 66 acquired a 16% stake in NOVONIX Ltd., an ASX-listed company with operations in the United States and Canada that develops technology and supplies materials for lithium-ion batteries. The investment by Phillips 66 supports an expansion of 30,000 metric tons per year of additional synthetic graphite production capacity at NOVONIX’s Chattanooga, Tennessee plant, bringing the plant’s total capacity to 40,000 metric tons per year. The expansion is expected to be completed in 2025.

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Phillips 66 Reports Third-Quarter 2021 Financial Results

•Collaborating on the development of low-carbon hydrogen opportunities. In October 2021, Phillips 66 signed a memorandum of understanding with Plug Power Inc., a leading provider of global green hydrogen solutions. The companies will focus on scaling low-carbon hydrogen throughout the industrial and mobility sectors, while advancing the development of hydrogen-related infrastructure. They will also explore ways to deploy Plug Power’s technology and equipment within Phillips 66’s operations.

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Phillips 66 Reports Third-Quarter 2021 Financial Results

Investor Webcast

Later today, members of Phillips 66 executive management will host a webcast at noon EDT to discuss the company’s third-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
	2021				2020
	Q3		Q2	Sep YTD	Q3	Sep YTD
Midstream	$	629	312	1,017	146	(232)
Chemicals	631		623	1,408	231	442
Refining	(1,126)		(729)	(2,895)	(1,903)	(5,042)
Marketing and Specialties	545		476	1,311	415	1,214
Corporate and Other	(231)		(246)	(728)	(239)	(655)
Pre-Tax Income (Loss)	448		436	113	(1,350)	(4,273)
Less: Income tax expense (benefit)	(40)		62	(110)	(624)	(1,053)
Less: Noncontrolling interests	86		78	179	73	216
Phillips 66	$	402	296	44	(799)	(3,436)

Adjusted Earnings (Loss)
	Millions of Dollars
	2021				2020
	Q3		Q2	Sep YTD	Q3	Sep YTD
Midstream	$	642	316	1,234	354	1,059
Chemicals	634		657	1,475	132	414
Refining	184		(706)	(1,548)	(970)	(2,238)
Marketing and Specialties	547		479	1,316	417	1,198
Corporate and Other	(230)		(244)	(725)	(213)	(634)
Pre-Tax Income (Loss)	1,777		502	1,752	(280)	(201)
Less: Income tax expense (benefit)	286		95	297	(352)	(518)
Less: Noncontrolling interests	88		78	232	73	192
Phillips 66	$	1,403	329	1,223	(1)	125

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Phillips 66 Reports Third-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. Headquartered in Houston, the company has 14,100 employees committed to safety and operating excellence. Phillips 66 had $56 billion of assets as of Sept. 30, 2021. For more information, visit www.phillips66.com or follow us on Twitter @Phillips66Co.

- # # # -


CONTACTS
Jeff Dietert (investors)	Shannon Holy (investors)	Thaddeus Herrick (media)
832-765-2297	832-765-2297	855-841-2368
jeff.dietert@p66.com	shannon.m.holy@p66.com	thaddeus.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 Third-Quarter 2021 Financial Results

Use of Non-GAAP Financial Information—This 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 Third-Quarter 2021 Financial Results


	Millions of Dollars
	Except as Indicated
	2021				2020
	Q3		Q2	Sep YTD	Q3	Sep YTD
Reconciliation of Consolidated Earnings (Loss) to Adjusted Earnings (Loss)
Consolidated Earnings (Loss)	$	402	296	44	(799)	(3,436)
Pre-tax adjustments:
Impairments	1,298		—	1,496	1,139	4,145
Impairments by equity affiliates	—		—	—	—	15
Pending claims and settlements	—		—	—	—	(37)
Certain tax impacts	—		—	—	—	(8)
Pension settlement expense	20		47	67	17	55
Hurricane-related costs	11		—	11	15	15
Winter-storm-related costs	—		19	65	—	—
Lower-of-cost-or-market inventory adjustments	—		—	—	(101)	(29)
Asset dispositions	—		—	—	—	(84)
Tax impact of adjustments*	(323)		(16)	(387)	(262)	(545)
Other tax impacts	(3)		(17)	(20)	(10)	10
Noncontrolling interests	(2)		—	(53)	—	24
Adjusted earnings (loss)	$	1,403	329	1,223	(1)	125
Earnings (loss) per share of common stock (dollars)	$	0.91	0.66	0.08	(1.82)	(7.83)
Adjusted earnings (loss) per share of common stock (dollars)†	$	3.18	0.74	2.76	(0.01)	0.27


Reconciliation of Segment Pre-Tax Income (Loss) to Adjusted Pre-Tax Income (Loss)
Midstream Pre-Tax Income (Loss)	$	629	312	1,017	146	(232)
Pre-tax adjustments:
Impairments	10		—	208	204	1,365

Pension settlement expense	3		4	7	3	8
Hurricane-related costs	—		—	—	1	1
Winter-storm-related costs	—		—	2	—	—
Lower-of-cost-or-market inventory adjustments	—		—	—	—	1
Asset dispositions	—		—	—	—	(84)
Adjusted pre-tax income	$	642	316	1,234	354	1,059
Chemicals Pre-Tax Income	$	631	623	1,408	231	442
Pre-tax adjustments:
Impairments by equity affiliates	—		—	—	—	15
Pension settlement expense	2		18	20	—	—
Hurricane-related costs	1		—	1	2	2
Winter-storm-related costs	—		16	46	—	—
Lower-of-cost-or-market inventory adjustments	—		—	—	(101)	(45)
Adjusted pre-tax income	$	634	657	1,475	132	414

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Phillips 66 Reports Third-Quarter 2021 Financial Results


	Millions of Dollars
	Except as Indicated
	2021				2020
	Q3		Q2	Sep YTD	Q3	Sep YTD
Reconciliation of Segment Pre-Tax Income (Loss) to Adjusted Pre-Tax Income (Loss)
Refining Pre-Tax Loss	$	(1,126)	(729)	(2,895)	(1,903)	(5,042)
Pre-tax adjustments:
Impairments	1,288		—	1,288	910	2,755


Pension settlement expense	12		20	32	12	38
Hurricane-related costs	10		—	10	11	11
Winter-storm-related costs	—		3	17	—	—


Adjusted pre-tax income (loss)	$	184	(706)	(1,548)	(970)	(2,238)
Marketing and Specialties Pre-Tax Income	$	545	476	1,311	415	1,214
Pre-tax adjustments:
Pending claims and settlements	—		—	—	—	(37)

Pension settlement expense	2		3	5	1	5
Lower-of-cost-or-market inventory adjustments	—		—	—	—	15
Hurricane-related costs	—		—	—	1	1
Adjusted pre-tax income	$	547	479	1,316	417	1,198
Corporate and Other Pre-Tax Loss	$	(231)	(246)	(728)	(239)	(655)
Pre-tax adjustments:

Impairments	—		—	—	—	25
Certain tax impacts	—		—	—	—	(8)
Pension settlement expense	1		2	3	1	4

Adjusted pre-tax loss	$	(230)	(244)	(725)	(238)	(634)

*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.
†QTD 2021 and YTD 2021 are based on adjusted weighted-average diluted shares of 441,454 thousand 440,263 thousand, respectively. YTD 2020 is based on adjusted weighted-average diluted shares outstanding of 440,156 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 Third-Quarter 2021 Financial Results


	Millions of Dollars
	Except as Indicated
	September 30, 2021
Debt-to-Capital Ratio
Total Debt	$	14,910
Total Equity	20,597
Debt-to-Capital Ratio	42		%
Total Cash	$	2,897
Net Debt-to-Capital Ratio	37		%



	Millions of Dollars
	Except as Indicated
	2021
	Q3		Q2
Realized Refining Margins
Loss before income taxes	$	(1,126)	(729)
Plus:
Taxes other than income taxes	44		76
Depreciation, amortization and impairments	1,504		220
Selling, general and administrative expenses	55		49
Operating expenses	943		922
Equity in (earnings) losses of affiliates	(27)		67
Other segment (income) expense, net	7		(24)
Proportional share of refining gross margins contributed by equity affiliates	220		167


Realized refining margins	$	1,620	748
Total processed inputs (thousands of barrels)	168,739		170,967
Adjusted total processed inputs (thousands of barrels)*	188,958		190,690
Loss before income taxes (dollars per barrel)**	$	(6.67)	(4.26)
Realized refining margins (dollars per barrel)***	$	8.57	3.92
*Adjusted total processed inputs include our proportional share of processed inputs of an equity affiliate.
**Loss before income taxes divided by total processed inputs.
***Realized refining margins per barrel, as presented, are calculated using the underlying realized refining margin amounts, in dollars, divided by adjusted total processed inputs, in barrels. As such, recalculated per barrel amounts using the rounded margins and barrels presented may differ from the presented per barrel amounts.

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Exhibit 99.2

Phillips 66 Earnings Release Supplemental Data


CONSOLIDATED STATEMENT OF OPERATIONS

	Millions of Dollars, Except as Indicated
	2021									2020
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Revenues and Other Income
Sales and other operating revenues	21,627		27,002		30,243			78,872		20,878		10,913		15,929		16,409		64,129
Equity in earnings of affiliates	285		830		982			2,097		365		157		349		320		1,191
Net gain on dispositions	—		2		9			11		1		85		1		21		108
Other income*	15		51		238			304		—		28		20		18		66
Total Revenues and Other Income	21,927		27,885		31,472			81,284		21,244		11,183		16,299		16,768		65,494

Costs and Expenses
Purchased crude oil and products	20,065		25,218		27,529			72,812		18,440		9,608		14,509		15,150		57,707
Operating expenses	1,380		1,175		1,166			3,721		1,341		1,026		1,016		1,180		4,563
Selling, general and administrative expenses	408		433		424			1,265		319		409		384		432		1,544
Depreciation and amortization	356		364		361			1,081		342		343		352		358		1,395
Impairments	198		—		1,298			1,496		3,006		—		1,140		106		4,252
Taxes other than income taxes	139		119		85			343		157		114		106		87		464
Accretion on discounted liabilities	6		6		6			18		6		5		6		5		22
Interest and debt expense	146		143		151			440		111		117		132		139		499
Foreign currency transaction (gains) losses	—		(9)		4			(5)		—		6		4		2		12
Total Costs and Expenses	22,698		27,449		31,024			81,171		23,722		11,628		17,649		17,459		70,458
Income (loss) before income taxes	(771)		436		448			113		(2,478)		(445)		(1,350)		(691)		(4,964)
Income tax expense (benefit)	(132)		62		(40)			(110)		(51)		(378)		(624)		(197)		(1,250)
Net Income (Loss)	(639)		374		488			223		(2,427)		(67)		(726)		(494)		(3,714)
Less: net income attributable to noncontrolling interests	15		78		86			179		69		74		73		45		261
Net Income (Loss) Attributable to Phillips 66	(654)		296		402			44		(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		0.91			0.08		(5.66)		(0.33)		(1.82)		(1.23)		(9.06)
Diluted	(1.49)		0.66		0.91			0.08		(5.66)		(0.33)		(1.82)		(1.23)		(9.06)

Weighted-Average Common Shares Outstanding (thousands)
Basic	439,504		439,940		440,193			439,880		441,345		438,756		438,916		439,115		439,530
Diluted	439,504		440,396		440,368			440,259		441,345		438,756		438,916		439,115		439,530






Effective tax rate (%)	17.1	%	14.2	%	(8.9)	%		(97.3)	%	2.1	%	84.9	%	46.2	%	28.5	%	25.2	%
Adjusted effective tax rate (%)	15.9	%	18.9	%	16.1	%		17.0	%	4.4	%	40.9	%	125.7	%	25.6	%	85.2	%
* Includes an unrealized gain associated with the change in fair value of our investment in NOVONIX Limited (NOVONIX).

Page 1

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
	2021					2020
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD

Midstream	76	312	629		1,017	(702)	324	146	223	(9)
Chemicals	154	623	631		1,408	169	42	231	193	635
Refining	(1,040)	(729)	(1,126)		(2,895)	(2,261)	(878)	(1,903)	(1,113)	(6,155)
Marketing and Specialties	290	476	545		1,311	513	286	415	232	1,446
Corporate and Other	(251)	(246)	(231)		(728)	(197)	(219)	(239)	(226)	(881)
Income (loss) before income taxes	(771)	436	448		113	(2,478)	(445)	(1,350)	(691)	(4,964)
Less: income tax expense (benefit)	(132)	62	(40)		(110)	(51)	(378)	(624)	(197)	(1,250)
Net Income (Loss)	(639)	374	488		223	(2,427)	(67)	(726)	(494)	(3,714)
Less: net income attributable to noncontrolling interests	15	78	86		179	69	74	73	45	261
Net Income (Loss) Attributable to Phillips 66	(654)	296	402		44	(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
	2021					2020
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Midstream
Transportation	206	224	254		684	200	130	202	196	728
NGL and Other*	36	83	357		476	179	83	102	86	450
DCP Midstream	34	9	31		74	81	32	50	41	204
Total Midstream	276	316	642		1,234	460	245	354	323	1,382
Chemicals	184	657	634		1,475	193	89	132	203	617
Refining
Atlantic Basin/Europe	(152)	(108)	93		(167)	(196)	(220)	(197)	(166)	(779)
Gulf Coast	(247)	(253)	(31)		(531)	(173)	(356)	(389)	(442)	(1,360)
Central Corridor	(241)	(76)	232		(85)	223	(113)	(129)	(177)	(196)
West Coast	(386)	(269)	(110)		(765)	(255)	(178)	(255)	(309)	(997)
Total Refining	(1,026)	(706)	184		(1,548)	(401)	(867)	(970)	(1,094)	(3,332)
Marketing and Specialties
Marketing and Other	211	392	454		1,057	434	259	366	181	1,240
Specialties	79	87	93		259	54	34	51	40	179
Total Marketing and Specialties	290	479	547		1,316	488	293	417	221	1,419
Corporate and Other	(251)	(244)	(230)		(725)	(197)	(224)	(213)	(235)	(869)
Adjusted income (loss) before income taxes	(527)	502	1,777		1,752	543	(464)	(280)	(582)	(783)
Less: adjusted income tax expense (benefit)	(84)	95	286		297	24	(190)	(352)	(149)	(667)
Adjusted Net Income (Loss)	(443)	407	1,491		1,455	519	(274)	72	(433)	(116)
Less: adjusted net income attributable to noncontrolling interests	66	78	88		232	69	50	73	74	266
Adjusted Net Income (Loss) Attributable to Phillips 66	(509)	329	1,403		1,223	450	(324)	(1)	(507)	(382)
* Includes an unrealized gain of $224 million associated with our investment in NOVONIX in the third quarter of 2021.

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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
	2021					2020
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Midstream


Impairments	(198)	—	(10)		(208)	(1,161)	—	(204)	(96)	(1,461)

Pension settlement expense	—	(4)	(3)		(7)	—	(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)	(13)		(217)	(1,162)	79	(208)	(100)	(1,391)

Chemicals
Impairments by equity affiliates	—	—	—		—	—	(15)	—	—	(15)
Pension settlement expense	—	(18)	(2)		(20)	—	—	—	(21)	(21)
Hurricane-related costs	—	—	(1)		(1)	—	—	(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)	(3)		(67)	(24)	(47)	99	(10)	18

Refining
Impairments	—	—	(1,288)		(1,288)	(1,845)	—	(910)	—	(2,755)

Certain tax impacts	—	—	—		—	—	—	—	6	6
Pension settlement expense	—	(20)	(12)		(32)	—	(26)	(12)	(3)	(41)

Hurricane-related costs	—	—	(10)		(10)	—	—	(11)	(22)	(33)

Winter-storm-related costs	(14)	(3)	—		(17)	—	—	—	—	—
Lower-of-cost-or-market inventory adjustments	—	—	—		—	(15)	15	—	—	—

Total Refining	(14)	(23)	(1,310)		(1,347)	(1,860)	(11)	(933)	(19)	(2,823)

Marketing and Specialties

Pending claims and settlements	—	—	—		—	37	—	—	—	37

Pension settlement expense	—	(3)	(2)		(5)	—	(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)	(2)		(5)	25	(7)	(2)	11	27

Corporate and Other
Impairments	—	—	—		—	—	—	(25)	—	(25)
Certain tax impacts	—	—	—		—	—	8	—	—	8


Pension settlement expense	—	(2)	(1)		(3)	—	(3)	(1)	—	(4)


Asset dispositions	—	—	—		—	—	—	—	9	9
Total Corporate and Other	—	(2)	(1)		(3)	—	5	(26)	9	(12)

Total Special Items (Pre-tax)	(244)	(66)	(1,329)		(1,639)	(3,021)	19	(1,070)	(109)	(4,181)

Less: Income Tax Expense (Benefit)
Tax impact of pre-tax special items*	(48)	(16)	(323)		(387)	(75)	(208)	(262)	(23)	(568)
Other tax impacts	—	(17)	(3)		(20)	—	20	(10)	(25)	(15)

Total Income Tax Expense (Benefit)	(48)	(33)	(326)		(407)	(75)	(188)	(272)	(48)	(583)

Less: Income (Loss) Attributable to Noncontrolling Interests
Impairments	(51)	—	(2)		(53)	—	—	—	(28)	(28)
Hurricane-related costs	—	—	—		—	—	—	—	(1)	(1)
Asset dispositions	—	—	—		—	—	24	—	—	24


Total Income (Loss) Attributable to Noncontrolling Interests	(51)	—	(2)		(53)	—	24	—	(29)	(5)

Total Phillips 66 Special Items (After-tax)	(145)	(33)	(1,001)		(1,179)	(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
	2021					2020
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD

Midstream
Transportation	(199)	—	(10)		(209)	—	84	(205)	(99)	(220)
NGL and Other	(1)	(4)	(3)		(8)	—	(5)	(3)	(1)	(9)
DCP Midstream	—	—	—		—	(1,162)	—	—	—	(1,162)
Total Midstream	(200)	(4)	(13)		(217)	(1,162)	79	(208)	(100)	(1,391)

Refining
Atlantic Basin/Europe	(1)	(2)	(3)		(6)	(441)	(7)	(2)	5	(445)
Gulf Coast	(6)	(11)	(1,302)		(1,319)	(670)	(9)	(16)	(22)	(717)
Central Corridor	(7)	(6)	(3)		(16)	(450)	9	(3)	(1)	(445)
West Coast	—	(4)	(2)		(6)	(299)	(4)	(912)	(1)	(1,216)
Total Refining	(14)	(23)	(1,310)		(1,347)	(1,860)	(11)	(933)	(19)	(2,823)

Marketing and Specialties
Marketing and Other	—	(3)	(2)		(5)	37	(4)	(1)	(1)	31
Specialties	—	—	—		—	(12)	(3)	(1)	12	(4)
Total Marketing and Specialties	—	(3)	(2)		(5)	25	(7)	(2)	11	27

Page 3

Phillips 66 Earnings Release Supplemental Data


CASH FLOW INFORMATION

	Millions of Dollars
	2021					2020
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Cash Flows From Operating Activities
Net income (loss)	(639)	374	488		223	(2,427)	(67)	(726)	(494)	(3,714)
Depreciation and amortization	356	364	361		1,081	342	343	352	358	1,395
Impairments	198	—	1,298		1,496	3,006	—	1,140	106	4,252
Accretion on discounted liabilities	6	6	6		18	6	5	6	5	22
Deferred income taxes	(103)	266	(453)		(290)	(47)	26	23	124	126
Undistributed equity earnings	217	(218)	(77)		(78)	(4)	302	(44)	80	334
Net gain on dispositions	—	(2)	(3)		(5)	(1)	(85)	(1)	(21)	(108)
Unrealized investment gain*	—	—	(224)		(224)	—	—	—	—	—
Other	138	120	31		289	(139)	146	45	78	130
Net working capital changes	98	833	776		1,707	(519)	94	(304)	403	(326)
Net Cash Provided by Operating Activities	271	1,743	2,203		4,217	217	764	491	639	2,111

Cash Flows From Investing Activities
Capital expenditures and investments	(331)	(380)	(552)		(1,263)	(923)	(939)	(552)	(506)	(2,920)
Return of investments in equity affiliates	58	100	78		236	38	50	51	53	192
Proceeds from asset dispositions	—	24	2		26	1	—	2	48	51
Advances/loans—related parties	(155)	(90)	(65)		(310)	(8)	(223)	(20)	(65)	(316)
Collection of advances/loans—related parties	—	—	1		1	—	44	—	—	44

Other	(39)	(6)	40		(5)	15	(79)	(23)	(43)	(130)
Net Cash Used in Investing Activities	(467)	(352)	(496)		(1,315)	(877)	(1,147)	(542)	(513)	(3,079)

Cash Flows From Financing Activities
Issuance of debt	450	15	(15)		450	1,199	2,031	75	1,873	5,178
Repayment of debt	(925)	(54)	(506)		(1,485)	(7)	(534)	(5)	(505)	(1,051)
Issuance of common stock	20	4	—		24	6	—	—	2	8
Repurchase of common stock	—	—	—		—	(443)	—	—	—	(443)
Dividends paid on common stock	(394)	(394)	(394)		(1,182)	(396)	(393)	(393)	(393)	(1,575)
Distributions to noncontrolling interests	(76)	(82)	(81)		(239)	(61)	(66)	(74)	(88)	(289)

Repurchase of noncontrolling interests	—	(24)	—		(24)	—	—	—	—	—
Other	(20)	(7)	(9)		(36)	(22)	9	(7)	(17)	(37)
Net Cash Provided by (Used in) Financing Activities	(945)	(542)	(1,005)		(2,492)	276	1,047	(404)	872	1,791

Effect of Exchange Rate Changes on Cash and Cash Equivalents	(22)	7	(12)		(27)	(9)	5	27	54	77

Net Change in Cash and Cash Equivalents	(1,163)	856	690		383	(393)	669	(428)	1,052	900
Cash and cash equivalents at beginning of period	2,514	1,351	2,207		2,514	1,614	1,221	1,890	1,462	1,614
Cash and Cash Equivalents at End of Period	1,351	2,207	2,897		2,897	1,221	1,890	1,462	2,514	2,514
* Represents the change in fair value of our investment in NOVONIX.

CAPITAL PROGRAM

	Millions of Dollars
	2021					2020
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Consolidated Capital Expenditures and Investments
Midstream	100	141	328		569	580	597	315	194	1,686
Chemicals	—	—	—		—	—	—	—	—	—
Refining	184	186	158		528	245	164	168	239	816
Marketing and Specialties	22	22	28		72	25	86	28	34	173
Corporate and Other	25	31	38		94	50	54	38	42	184
Adjusted Capital Spending	331	380	552		1,263	900	901	549	509	2,859
Capital expenditures and investments funded by a joint venture partner (Midstream)*	—	—	—		—	23	38	3	(3)	61
Consolidated Capital Expenditures and Investments	331	380	552		1,263	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)	7	14	15		36	46	44	12	17	119
CPChem (Chemicals)	79	72	88		239	126	13	65	80	284
WRB (Refining)	59	47	61		167	37	34	39	65	175
Selected Equity Affiliates	145	133	164		442	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
	2021					2020
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Income (Loss) before Income Taxes
Transportation	7	224	244		475	200	214	(3)	97	508
NGL and Other	35	79	354		468	179	78	99	85	441
DCP Midstream	34	9	31		74	(1,081)	32	50	41	(958)
Income (Loss) before Income Taxes	76	312	629		1,017	(702)	324	146	223	(9)







Adjusted EBITDA*
PSXP**	289	336	367		992	322	271	315	317	1,225
Other Midstream	92	110	387		589	188	75	115	105	483
Transportation and NGL and Other***	381	446	754		1,581	510	346	430	422	1,708
DCP Midstream	71	46	67		184	129	66	88	79	362
Adjusted EBITDA***	452	492	821		1,765	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.
*** Includes an unrealized gain of $224 million associated with our investment in NOVONIX in the third quarter of 2021.


Equity in Earnings of Affiliates
Transportation	126	120	140		386	98	70	103	108	379
NGL and Other	37	44	40		121	51	49	44	37	181
DCP Midstream	34	8	32		74	80	32	49	40	201
Total	197	172	212		581	229	151	196	185	761

Unrealized Investment Gain*
NGL and Other	—	—	224		224	—	—	—	—	—
* Represents the change in fair value of our investment in NOVONIX.

Depreciation and Amortization*
Transportation	40	40	45		125	38	38	41	42	159
NGL and Other	52	52	52		156	39	39	42	52	172
DCP Midstream	—	—	—		—	—	—	—	—	—
Total	92	92	97		281	77	77	83	94	331
* Excludes D&A of all equity affiliates.

Operating and SG&A Expenses*
Transportation	173	189	188		550	188	186	185	199	758
NGL and Other	122	88	85		295	68	71	71	84	294
DCP Midstream	—	—	1		1	—	—	(1)	—	(1)
Total	295	277	274		846	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	3,483		3,238	3,178	2,840	3,076	2,925	3,005
Terminals	2,675	2,786	2,771		2,744	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	420		395	198	170	217	411	249
* Excludes DCP Midstream.

100% DCP Midstream, LLC Results
Net Income (Loss) Attributable to Owners*	27	(35)	23		15	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 Amortization	91	92	90		273	99	93	93	91	376

Operating and SG&A Expenses	189	222	230		641	202	212	212	240	866

Net Interest Expense*	77	77	73		227	78	71	77	76	302
* Net of interest income.

Capital Expenditures and Investments	14	28	30		72	92	87	24	35	238

Selected DCP Operating Statistics
Wellhead Volume (Bcf/D)	4.1	4.4	4.2		4.2	5.0	4.5	4.5	4.5	4.6
NGL Production (MB/D)	356	406	398		387	396	374	414	414	399

Weighted-Average NGL Price*

DCP Midstream ($/gal)	0.69	0.71	0.91		0.77	0.39	0.32	0.44	0.49	0.41
* Based on index prices from the Mont Belvieu market hub, which are weighted by NGL component mix.

MLP Distributions*

LP Distribution from PSXP to Phillips 66	148	148	149		445	148	149	148	149	594

LP Distribution from DCP Midstream, LP to DCP Midstream**	46	46	***		92	46	46	46	46	184


* Cash distributions declared attributable to common unit ownership. These distributions are eliminated in the respective sponsors consolidated financial statements.

** Represents 100% of DCP Midstream's distributions from DCP Midstream, LP (DCP Partners).
*** Pending DCP Midstream release.

Page 5

Phillips 66 Earnings Release Supplemental Data


MIDSTREAM (continued)

	Millions of Dollars
	2021					2020
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Reconciliation of Midstream Income (Loss) before Income Taxes to Adjusted EBITDA
Income (loss) before income taxes	76	312	629		1,017	(702)	324	146	223	(9)
Plus:


Depreciation and amortization	92	92	97		281	77	77	83	94	331
EBITDA*	168	404	726		1,298	(625)	401	229	317	322

Special Item Adjustments (pre-tax):


Impairments	198	—	10		208	1,161	—	204	96	1,461

Pension settlement expense	—	4	3		7	—	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)
EBITDA, Adjusted for Special Items*	368	408	739		1,515	537	322	437	417	1,713



Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes	2	4	4		10	3	2	3	1	9
Proportional share of selected equity affiliates net interest	43	43	42		128	39	36	42	44	161
Proportional share of selected equity affiliates depreciation and amortization	57	57	58		172	60	52	56	56	224
Adjusted EBITDA attributable to joint venture partners' noncontrolling interests	(18)	(20)	(22)		(60)	—	—	(20)	(17)	(37)
Adjusted EBITDA*	452	492	821		1,765	639	412	518	501	2,070
* Includes an unrealized gain of $224 million associated with our investment in NOVONIX in the third quarter of 2021.



Adjusted EBITDA by Business Line
100% PSXP Results
Income (loss) before income taxes	(11)	235	255		479	227	255	217	112	811
Plus:

Net interest expense	33	32	31		96	28	29	31	32	120
Depreciation and amortization	34	34	38		106	30	31	35	39	135
EBITDA	56	301	324		681	285	315	283	183	1,066

Special Item Adjustments (pre-tax):

Impairments	198	—	10		208	—	—	—	96	96
Hurricane-related costs*	—	—	—		—	—	—	1	2	3
Asset dispositions	—	—	—		—	—	(84)	—	—	(84)


EBITDA, Adjusted for Special Items**	254	301	334		889	285	231	284	281	1,081

Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes	2	4	5		11	3	2	3	1	9
Proportional share of selected equity affiliates net interest	14	14	13		41	9	9	13	15	46
Proportional share of selected equity affiliates depreciation and amortization	33	33	33		99	25	29	31	33	118
Adjusted EBITDA attributable to joint venture partner's noncontrolling interest	(14)	(16)	(18)		(48)	—	—	(16)	(13)	(29)
Adjusted EBITDA**	289	336	367		992	322	271	315	317	1,225
* Represents a special item adjustment made for PSX reporting purposes only.
** Does not include certain PSXP adjustments made for PSXP stand-alone reporting purposes.

Page 6

Phillips 66 Earnings Release Supplemental Data


MIDSTREAM (continued)

	Millions of Dollars
	2021					2020
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Total Transportation and NGL and Other
Income before income taxes	42	303	598		943	379	292	96	182	949
Plus:


Depreciation and amortization	92	92	97		281	77	77	83	94	331
EBITDA*†	134	395	695		1,224	456	369	179	276	1,280

Special Item Adjustments (pre-tax):



Impairments	198	—	10		208	—	—	204	96	300
Pension settlement expense	—	4	3		7	—	5	3	1	9
Hurricane-related costs	—	—	—		—	—	—	1	3	4
Winter-storm-related costs	2	—	—		2	—	—	—	—	—
Asset dispositions	—	—	—		—	—	(84)	—	—	(84)
EBITDA, Adjusted for Special Items*†	334	399	708		1,441	456	290	387	376	1,509



Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes	2	4	4		10	3	2	3	1	9
Proportional share of selected equity affiliates net interest	21	21	21		63	17	16	20	22	75
Proportional share of selected equity affiliates depreciation and amortization	42	42	43		127	34	38	40	40	152
Adjusted EBITDA attributable to joint venture partners' noncontrolling interests	(18)	(20)	(22)		(60)	—	—	(20)	(17)	(37)
Adjusted EBITDA*†	381	446	754		1,581	510	346	430	422	1,708
* Includes PSXP results. Does not include certain PSXP adjustments made for PSXP stand-alone reporting purposes.
† Includes an unrealized gain of $224 million associated with our investment in NOVONIX in the third quarter of 2021.



DCP Midstream
Income (loss) before income taxes	34	9	31		74	(1,081)	32	50	41	(958)
Plus:
None	—	—	—		—	—	—	—	—	—
EBITDA	34	9	31		74	(1,081)	32	50	41	(958)

Special Item Adjustments (pre-tax):
Impairments	—	—	—		—	1,161	—	—	—	1,161

Lower-of-cost-or-market inventory adjustments	—	—	—		—	1	—	—	—	1
EBITDA, Adjusted for Special Items	34	9	31		74	81	32	50	41	204

Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes	—	—	—		—	—	—	—	—	—
Proportional share of selected equity affiliates net interest	22	22	21		65	22	20	22	22	86
Proportional share of selected equity affiliates depreciation and amortization	15	15	15		45	26	14	16	16	72
Adjusted EBITDA*	71	46	67		184	129	66	88	79	362
* Proportional share of selected equity affiliates is net of noncontrolling interests.

Page 7

Phillips 66 Earnings Release Supplemental Data


CHEMICALS

	Millions of Dollars, Except as Indicated
	2021									2020
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD

Income before Income Taxes	154		623		631			1,408		169		42		231		193		635

Equity in Earnings of Affiliate	152		620		627			1,399		166		39		229		191		625

100% CPChem Results
Net Income (Loss), excludes parent company income tax related to CPChem's earnings
Olefins and Polyolefins	288		1,124		1,224			2,636		354		142		488		410		1,394
Specialties, Aromatics and Styrenics	53		157		73			283		9		—		23		30		62
Corporate and Other	(37)		(41)		(44)			(122)		(26)		(59)		(54)		(57)		(196)
Total	304		1,240		1,253			2,797		337		83		457		383		1,260

Income (Loss) before Income Taxes
Olefins and Polyolefins	299		1,143		1,237			2,679		360		142		498		416		1,416
Specialties, Aromatics and Styrenics	58		164		80			302		10		3		24		33		70
Corporate and Other	(37)		(41)		(41)			(119)		(26)		(59)		(54)		(57)		(196)
Total	320		1,266		1,276			2,862		344		86		468		392		1,290

Depreciation and Amortization	146		144		151			441		148		144		146		155		593

Net Interest Expense*	22		24		24			70		16		24		23		21		84
* Net of interest income.

Investing Cash Flows—Outflows/(Inflows)
Capital Expenditures and Investments	157		144		177			478		252		25		130		161		568

Repayments from Equity Companies	—		—		—			—		(21)		—		—		(29)		(50)
Return of Investments from Equity Companies	(30)		(107)		(82)			(219)		(25)		—		—		—		(25)







Olefins and Polyolefins Capacity Utilization (%)	79	%	102	%	102	%		94	%	98	%	103	%	94	%	101	%	99	%

Market Indicators*
U.S. Industry Prices
Ethylene, Average Acquisition Contract (cents/lb)	41.9		41.1		45.6			42.9		19.7		17.1		23.8		27.7		22.1
HDPE Blow Molding, Domestic Spot (cents/lb)	71.9		88.3		98.8			86.4		40.0		35.5		45.6		53.6		43.7

U.S. Industry Costs
Ethylene, Cash Cost Weighted Average Feed (cents/lb)	13.2		12.5		16.1			14.0		8.8		11.7		13.1		12.6		11.5
HDPE Blow Molding, Total Cash Cost (cents/lb)	55.7		54.9		59.7			56.8		32.9		30.2		37.1		41.2		35.3

Ethylene to High-Density Polyethylene Chain Cash Margin (cents/lb)	44.9		62.0		68.6			58.5		18.0		10.7		19.2		27.5		18.9
* Source: IHS, Inc.

Reconciliation of Chemicals Income before Income Taxes to Adjusted EBITDA
Income before income taxes	154		623		631			1,408		169		42		231		193		635
Plus:
None	—		—		—			—		—		—		—		—		—
EBITDA	154		623		631			1,408		169		42		231		193		635

Special Item Adjustments (pre-tax):
Impairments by equity affiliates	—		—		—			—		—		15		—		—		15
Pension settlement expense	—		18		2			20		—		—		—		21		21
Hurricane-related costs	—		—		1			1		—		—		2		1		3
Winter-storm-related costs	30		16		—			46		—		—		—		—		—
Lower-of-cost-or-market inventory adjustments	—		—		—			—		24		32		(101)		(12)		(57)
EBITDA, Adjusted for Special Items	184		657		634			1,475		193		89		132		203		617

Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes	28		48		33			109		13		5		14		15		47
Proportional share of selected equity affiliates net interest	11		12		12			35		9		11		12		12		44
Proportional share of selected equity affiliates depreciation and amortization	103		102		102			307		106		105		104		108		423
Adjusted EBITDA	326		819		781			1,926		321		210		262		338		1,131

Page 8

Phillips 66 Earnings Release Supplemental Data


REFINING

	Millions of Dollars, Except as Indicated
	2021					2020
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Income (Loss) before Income Taxes
Atlantic Basin/Europe	(153)	(110)	90		(173)	(637)	(227)	(199)	(161)	(1,224)
Gulf Coast	(253)	(264)	(1,333)		(1,850)	(843)	(365)	(405)	(464)	(2,077)
Central Corridor	(248)	(82)	229		(101)	(227)	(104)	(132)	(178)	(641)
West Coast	(386)	(273)	(112)		(771)	(554)	(182)	(1,167)	(310)	(2,213)
Income (Loss) before Income Taxes	(1,040)	(729)	(1,126)		(2,895)	(2,261)	(878)	(1,903)	(1,113)	(6,155)








Income (Loss) before Income Taxes ($/BBL)
Atlantic Basin/Europe	(3.57)	(2.20)	1.88		(1.23)	(15.41)	(5.80)	(4.61)	(3.43)	(7.18)
Gulf Coast	(4.64)	(3.81)	(20.82)		(9.84)	(13.16)	(5.98)	(7.86)	(12.46)	(9.71)
Central Corridor	(12.55)	(3.49)	8.68		(1.45)	(9.72)	(5.01)	(5.35)	(7.66)	(6.96)
West Coast	(14.89)	(9.70)	(3.67)		(9.11)	(19.87)	(7.07)	(38.12)	(11.75)	(20.01)
Worldwide	(7.27)	(4.26)	(6.67)		(6.00)	(14.44)	(5.99)	(12.69)	(8.32)	(10.48)

Realized Refining Margins ($/BBL)*
Atlantic Basin/Europe	4.86	4.63	9.27		6.28	2.38	1.53	1.65	2.99	2.17
Gulf Coast	3.39	2.10	5.75		3.72	6.76	0.36	(0.61)	(0.78)	1.85
Central Corridor	5.97	6.40	12.47		8.53	13.50	5.78	4.46	4.27	7.17
West Coast	3.33	3.37	7.46		4.83	4.80	5.05	2.23	1.79	3.43
Worldwide	4.36	3.92	8.57		5.68	7.11	2.60	1.78	2.18	3.51
* See note on the use of non-GAAP measures. Also, reconciliations of income (loss) before income taxes to realized refining margin for each period and by region are included in the "Realized Margin Non-GAAP Reconciliations" section.

Equity in Earnings (Losses) of Affiliates
Atlantic Basin/Europe	(2)	(2)	(3)		(7)	(2)	(3)	(2)	(3)	(10)
Gulf Coast	(3)	—	(1)		(4)	1	1	(1)	(4)	(3)
Central Corridor	(117)	(65)	31		(151)	(51)	(79)	(118)	(115)	(363)
West Coast	—	—	—		—	—	—	—	—	—
Total	(122)	(67)	27		(162)	(52)	(81)	(121)	(122)	(376)

Depreciation and Amortization*
Atlantic Basin/Europe	52	52	52		156	51	49	50	51	201
Gulf Coast	77	77	73		227	71	75	75	75	296
Central Corridor	34	34	34		102	34	33	33	33	133
West Coast	54	57	57		168	65	63	64	57	249
Total	217	220	216		653	221	220	222	216	879
* Excludes D&A of all equity affiliates.

Operating and SG&A Expenses*
Atlantic Basin/Europe	244	235	258		737	207	202	186	223	818
Gulf Coast	331	313	327		971	499	287	269	338	1,393
Central Corridor	212	132	136		480	142	127	118	139	526
West Coast	393	291	277		961	293	225	244	276	1,038
Total	1,180	971	998		3,149	1,141	841	817	976	3,775
* Excludes operating and SG&A expenses of all equity affiliates.

Turnaround Expense, included in Operating and SG&A Expenses*
Atlantic Basin/Europe	17	13	32		62	16	9	11	12	48
Gulf Coast	33	9	24		66	240	13	8	24	285
Central Corridor	17	36	13		66	15	3	6	9	33
West Coast	125	60	12		197	58	13	16	31	118
Total	192	118	81		391	329	38	41	76	484
* Excludes turnaround expense of all equity affiliates.

Taxes Other than Income Taxes
Atlantic Basin/Europe	20	18	15		53	19	15	14	13	61
Gulf Coast	27	25	13		65	37	25	30	15	107
Central Corridor	15	11	12		38	17	14	11	9	51
West Coast	23	22	4		49	31	22	16	20	89
Total	85	76	44		205	104	76	71	57	308

Foreign Currency Gains (Losses) Pre-Tax	1	9	(4)		6	1	(5)	1	(1)	(4)

Refining—Equity Affiliate Information
Equity in earnings (losses) of affiliates	(122)	(67)	27		(162)	(52)	(81)	(121)	(122)	(376)
Less: Share of equity affiliate gross margin included in Realized Refining Margin and other equity affiliate-related costs*	(129)	(167)	(220)		(516)	(156)	(72)	(70)	(54)	(352)
Equity affiliate-related expenses not included in Realized Refining Margins	(251)	(234)	(193)		(678)	(208)	(153)	(191)	(176)	(728)
Regional Totals
Atlantic Basin/Europe	(45)	(44)	(22)		(111)	(11)	(16)	(28)	(9)	(64)
Gulf Coast	(3)	—	(1)		(4)	2	—	(1)	(4)	(3)
Central Corridor	(203)	(190)	(170)		(563)	(199)	(137)	(162)	(163)	(661)
Total	(251)	(234)	(193)		(678)	(208)	(153)	(191)	(176)	(728)
* Other costs associated with equity affiliates which do not flow through equity earnings (losses).

Page 9

Phillips 66 Earnings Release Supplemental Data


REFINING (continued)

	2021									2020
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Reconciliation of Refining Loss before Income Taxes to Adjusted EBITDA ($ Millions)
Loss before income taxes	(1,040)		(729)		(1,126)			(2,895)		(2,261)		(878)		(1,903)		(1,113)		(6,155)
Plus:

Depreciation and amortization	217		220		216			653		221		220		222		216		879
EBITDA	(823)		(509)		(910)			(2,242)		(2,040)		(658)		(1,681)		(897)		(5,276)

Special Item Adjustments (pre-tax):
Impairments	—		—		1,288			1,288		1,845		—		910		—		2,755

Certain tax impacts	—		—		—			—		—		—		—		(6)		(6)
Pension settlement expense	—		20		12			32		—		26		12		3		41

Hurricane-related costs	—		—		10			10		—		—		11		22		33

Winter-storm-related costs	14		3		—			17		—		—		—		—		—
Lower-of-cost-or-market inventory adjustments	—		—		—			—		15		(15)		—		—		—

EBITDA, Adjusted for Special Items	(809)		(486)		400			(895)		(180)		(647)		(748)		(878)		(2,453)

Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes	(2)		(1)		—			(3)		—		(1)		—		(1)		(2)
Proportional share of selected equity affiliates net interest	2		2		1			5		—		1		1		1		3
Proportional share of selected equity affiliates depreciation and amortization	25		26		27			78		32		26		23		24		105
Adjusted EBITDA	(784)		(459)		428			(815)		(148)		(621)		(724)		(854)		(2,347)


Operating Statistics
Atlantic Basin/Europe*
Crude Oil Charge Input (MB/D)	438		513		487			479		437		402		432		466		434
Total Processed Inputs (MB/D)	476		549		519			515		454		430		469		510		466
Crude Oil Capacity Utilization (%)	82	%	96	%	91	%		89	%	81	%	75	%	81	%	87	%	81	%
Clean Product Yield (%)	86	%	83	%	84	%		84	%	83	%	82	%	83	%	87	%	84	%
* Includes our proportionate share of a refinery complex in Karlsruhe, Germany.

Gulf Coast
Crude Oil Charge Input (MB/D)	553		687		623			621		645		609		506		371		533
Total Processed Inputs (MB/D)	606		762		697			689		704		671		560		404		584
Crude Oil Capacity Utilization (%)	71	%	88	%	80	%		79	%	84	%	79	%	66	%	48	%	69	%
Clean Product Yield (%)	73	%	78	%	78	%		76	%	71	%	79	%	82	%	79	%	77	%

Central Corridor*
Crude Oil Charge Input (MB/D)	384		462		493			447		471		386		455		414		431
Total Processed Inputs (MB/D)	397		475		506			460		487		396		467		428		445
Crude Oil Capacity Utilization (%)	72	%	87	%	93	%		84	%	89	%	73	%	86	%	78	%	81	%
Clean Product Yield (%)	86	%	87	%	88	%		87	%	88	%	87	%	89	%	89	%	89	%
* Includes our proportionate share of the Borger Refinery and Wood River Refinery.

West Coast
Crude Oil Charge Input (MB/D)	268		286		302			286		279		263		311		263		279
Total Processed Inputs (MB/D)	288		309		332			309		306		283		333		287		302
Crude Oil Capacity Utilization (%)	74	%	79	%	83	%		78	%	77	%	72	%	85	%	72	%	77	%
Clean Product Yield (%)	86	%	83	%	90	%		86	%	93	%	87	%	89	%	91	%	90	%

Worldwide—Including Proportionate Share of Equity Affiliates
Crude Oil Charge Input (MB/D)	1,643		1,948		1,905			1,833		1,832		1,660		1,704		1,514		1,677
Total Processed Inputs (MB/D)	1,767		2,095		2,054			1,973		1,951		1,780		1,829		1,629		1,797
Crude Oil Capacity Utilization (%)	74	%	88	%	86	%		83	%	83	%	75	%	77	%	69	%	76	%
Clean Product Yield (%)	82	%	82	%	84	%		82	%	82	%	83	%	85	%	86	%	84	%

Page 10

Phillips 66 Earnings Release Supplemental Data


REFINING (continued)

	2021					2020
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Refined Petroleum Products Production (MB/D)
Atlantic Basin/Europe*
Gasoline	220	242	232		232	191	178	207	241	204
Distillates	175	197	188		187	174	160	168	187	172
Other	87	113	103		100	91	95	98	89	94
Total	482	552	523		519	456	433	473	517	470
* Includes our proportionate share of a refinery complex in Karlsruhe, Germany.

Gulf Coast
Gasoline	219	310	281		270	234	277	247	157	229
Distillates	201	257	235		231	248	231	187	147	203
Other	183	196	184		188	221	167	129	100	154
Total	603	763	700		689	703	675	563	404	586

Central Corridor*
Gasoline	191	227	255		224	245	183	241	214	221
Distillates	149	183	187		173	183	161	173	166	171
Other	58	65	68		64	60	52	55	50	54
Total	398	475	510		461	488	396	469	430	446
* Includes our proportionate share of the Borger Refinery and Wood River Refinery.

West Coast
Gasoline	138	138	166		148	151	126	159	144	145
Distillates	110	118	131		119	134	121	137	117	127
Other	40	51	32		41	21	33	38	24	29
Total	288	307	329		308	306	280	334	285	301

Worldwide—Including Proportionate Share of Equity Affiliates
Gasoline	768	917	934		874	821	764	854	756	799
Distillates	635	755	741		710	739	673	665	617	673
Other	368	425	387		393	393	347	320	263	331
Total	1,771	2,097	2,062		1,977	1,953	1,784	1,839	1,636	1,803

Market Indicators*
Crude and Crude Differentials ($/BBL)
WTI	57.84	66.09	70.58		64.84	45.97	27.80	40.91	42.56	39.31
Brent	60.90	68.83	73.47		67.73	50.26	29.20	43.00	44.23	41.67
LLS	59.98	67.95	71.51		66.48	48.30	30.07	42.46	44.05	41.22
ANS	60.76	68.44	72.73		67.31	51.40	30.37	42.74	44.82	42.33
WTI less Maya	1.44	3.21	4.37		3.01	4.81	3.40	1.72	2.02	2.99
WTI less WCS (settlement differential)	12.47	11.49	13.58		12.51	20.53	11.47	9.09	9.31	12.60

Natural Gas ($/MMBtu)
Henry Hub	3.51	2.88	4.28		3.56	1.88	1.65	1.95	2.47	1.99

Product Margins ($/BBL)
Atlantic Basin/Europe
East Coast Gasoline less Brent	11.73	18.61	21.15		17.16	4.84	7.87	9.52	7.48	7.43
East Coast Distillate less Brent	12.09	15.24	16.07		14.47	14.93	10.95	7.17	9.51	10.64
Gulf Coast
Gulf Coast Gasoline less LLS	11.22	15.47	18.61		15.10	4.97	3.66	5.88	5.10	4.90
Gulf Coast Distillate less LLS	11.30	14.03	15.87		13.73	13.86	8.04	6.10	8.14	9.03
Central Corridor
Central Gasoline less WTI	14.90	19.96	20.83		18.57	7.70	6.18	8.15	5.76	6.95
Central Distillate less WTI	17.24	18.40	19.38		18.34	17.34	11.41	8.55	11.21	12.13
West Coast
West Coast Gasoline less ANS	16.88	24.76	23.54		21.73	13.32	9.36	13.12	10.76	11.64
West Coast Distillate less ANS	14.14	15.28	18.55		15.99	17.22	10.36	9.34	12.74	12.42

Worldwide Market Crack Spread ($/BBL)**	13.23	17.76	19.44		16.81	9.82	7.47	8.17	7.84	8.33
* Based on daily spot prices, unless otherwise noted.
** Weighted average based on Phillips 66 crude capacity.

Page 11

Phillips 66 Earnings Release Supplemental Data


MARKETING AND SPECIALTIES

	Millions of Dollars, Except as Indicated
	2021					2020
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Income before Income Taxes
Marketing and Other	211	389	452		1,052	471	255	365	180	1,271
Specialties	79	87	93		259	42	31	50	52	175
Income before Income Taxes	290	476	545		1,311	513	286	415	232	1,446






Income before Income Taxes ($/BBL)
U.S.	1.36	2.15	1.93		1.84	1.79	1.24	1.74	0.83	1.42
International	2.24	1.96	4.84		3.09	6.58	3.48	5.01	3.91	4.84

Realized Marketing Fuel Margins ($/BBL)*
U.S.	1.94	2.62	2.29		2.30	2.08	1.75	2.23	1.37	1.87
International	4.01	2.89	6.75		4.63	8.53	5.07	6.28	5.07	6.34
* See note on the use of non-GAAP measures. Also, reconciliations of income before income taxes to realized marketing fuel margin for each period and by region are included in the "Realized Margin Non-GAAP Reconciliations" section.


Other Realized Margins and Revenues not included in Marketing Fuel Margins*
Marketing and Other	104	138	111		353	117	123	107	104	451
Specialties	84	64	61		209	81	56	83	64	284
Total	188	202	172		562	198	179	190	168	735
* Excludes gain on dispositions and excise taxes on sales of refined petroleum products.

Equity in Earnings of Affiliates
Marketing and Other	26	46	48		120	22	38	42	37	139
Specialties	32	59	68		159	—	10	3	29	42
Total	58	105	116		279	22	48	45	66	181

Depreciation and Amortization*
Marketing and Other	23	24	23		70	20	21	21	22	84
Specialties	4	6	4		14	5	4	5	5	19
Total	27	30	27		84	25	25	26	27	103
* Excludes D&A of all equity affiliates.

Operating and SG&A Expenses*
Marketing and Other	258	284	280		822	211	232	259	263	965
Specialties	29	30	30		89	31	30	30	35	126
Total	287	314	310		911	242	262	289	298	1,091
* Excludes operating and SG&A expenses of all equity affiliates.

Refined Petroleum Products Sales (MB/D)
U.S. Marketing
Gasoline	960	1,095	1,098		1,052	984	881	997	922	946
Distillates	660	776	895		778	854	707	698	667	731
Other	—	—	—		—	—	—	—	—	—
Total	1,620	1,871	1,993		1,830	1,838	1,588	1,695	1,589	1,677

International Marketing
Gasoline	63	81	91		78	82	60	83	74	75
Distillates	158	171	179		169	183	140	165	168	164
Other	18	18	17		18	20	15	15	20	17
Total	239	270	287		265	285	215	263	262	256

Worldwide Marketing
Gasoline	1,023	1,176	1,189		1,130	1,066	941	1,080	996	1,021
Distillates	818	947	1,074		947	1,037	847	863	835	895
Other	18	18	17		18	20	15	15	20	17
Total	1,859	2,141	2,280		2,095	2,123	1,803	1,958	1,851	1,933

Foreign Currency Gains (Losses) Pre-Tax	—	1	—		1	1	—	(1)	—	—

Reconciliation of Marketing and Specialties Income before Income Taxes to Adjusted EBITDA
Income before income taxes	290	476	545		1,311	513	286	415	232	1,446
Plus:

Depreciation and amortization	27	30	27		84	25	25	26	27	103
EBITDA	317	506	572		1,395	538	311	441	259	1,549

Special Item Adjustments (pre-tax):
Pending claims and settlements	—	—	—		—	(37)	—	—	—	(37)

Pension settlement expense	—	3	2		5	—	4	1	1	6
Hurricane-related costs	—	—	—		—	—	—	1	2	3
Lower-of-cost-or-market inventory adjustments	—	—	—		—	12	3	—	(14)	1

EBITDA, Adjusted for Special Items	317	509	574		1,400	513	318	443	248	1,522

Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes	5	6	7		18	4	6	7	6	23
Proportional share of selected equity affiliates net interest	4	4	4		12	6	5	4	3	18
Proportional share of selected equity affiliates depreciation and amortization	17	17	17		51	17	14	16	17	64
Adjusted EBITDA	343	536	602		1,481	540	343	470	274	1,627

Page 12

Phillips 66 Earnings Release Supplemental Data


CORPORATE AND OTHER

	Millions of Dollars, Except as Indicated
	2021									2020
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD

Loss before Income Taxes	(251)		(246)		(231)			(728)		(197)		(219)		(239)		(226)		(881)

Detail of Loss before Income Taxes
Net interest expense	(143)		(141)		(148)			(432)		(103)		(114)		(131)		(137)		(485)
Corporate overhead and other	(108)		(105)		(83)			(296)		(94)		(105)		(108)		(89)		(396)



Total	(251)		(246)		(231)			(728)		(197)		(219)		(239)		(226)		(881)

Net Interest Expense
Interest expense	(150)		(148)		(159)			(457)		(137)		(139)		(150)		(148)		(574)
Capitalized interest	4		5		8			17		26		22		18		9		75
Interest income	3		2		3			8		8		3		1		2		14
Total	(143)		(141)		(148)			(432)		(103)		(114)		(131)		(137)		(485)




Reconciliation of Corporate and Other Loss before Income Taxes to Adjusted EBITDA
Loss before income taxes	(251)		(246)		(231)			(728)		(197)		(219)		(239)		(226)		(881)
Plus:

Net interest expense	143		141		148			432		103		114		131		137		485
Depreciation and amortization	20		22		21			63		19		21		21		21		82
EBITDA	(88)		(83)		(62)			(233)		(75)		(84)		(87)		(68)		(314)

Special Item Adjustments (pre-tax):
Impairments	—		—		—			—		—		—		25		—		25



Pension settlement expense	—		2		1			3		—		3		1		—		4

Asset dispositions	—		—		—			—		—		—		—		(9)		(9)
EBITDA, Adjusted for Special Items	(88)		(81)		(61)			(230)		(75)		(81)		(61)		(77)		(294)

Other Adjustments (pre-tax):
None	—		—		—			—		—		—		—		—		—
Adjusted EBITDA	(88)		(81)		(61)			(230)		(75)		(81)		(61)		(77)		(294)

Foreign Currency Losses Pre-Tax	(1)		(1)		—			(2)		(2)		(1)		(4)		(1)		(8)

Phillips 66 Total Company Debt
Total Debt	15,422		15,413		14,910			14,910		12,963		14,446		14,526		15,893		15,893
Debt-to-Capital Ratio (%)	43	%	43	%	42	%		42	%	35	%	38	%	39	%	42	%	42	%

Total Equity	20,457		20,602		20,597			20,597		23,639		23,295		22,305		21,523		21,523

RECONCILIATION OF CONSOLIDATED NET INCOME (LOSS) TO ADJUSTED EBITDA ATTRIBUTABLE TO PHILLIPS 66

	Millions of Dollars
	2021									2020
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD

Net income (loss)	(639)		374		488			223		(2,427)		(67)		(726)		(494)		(3,714)
Plus:
Income tax expense (benefit)	(132)		62		(40)			(110)		(51)		(378)		(624)		(197)		(1,250)
Net interest expense	143		141		148			432		103		114		131		137		485
Depreciation and amortization	356		364		361			1,081		342		343		352		358		1,395
Phillips 66 EBITDA*	(272)		941		957			1,626		(2,033)		12		(867)		(196)		(3,084)

Special Item Adjustments (pre-tax):
Impairments	198		—		1,298			1,496		3,006		—		1,139		96		4,241
Impairments by equity affiliates	—		—		—			—		—		15		—		—		15
Pending claims and settlements	—		—		—			—		(37)		—		—		—		(37)
Certain tax impacts	—		—		—			—		—		—		—		(6)		(6)

Pension settlement expense	—		47		20			67		—		38		17		26		81
Hurricane-related costs	—		—		11			11		—		—		15		28		43
Winter-storm-related costs	46		19		—			65		—		—		—		—		—
Lower-of-cost-or-market inventory adjustments	—		—		—			—		52		20		(101)		(26)		(55)
Asset dispositions	—		—		—			—		—		(84)		—		(9)		(93)

Phillips 66 EBITDA, Adjusted for Special Items*	(28)		1,007		2,286			3,265		988		1		203		(87)		1,105



Other Adjustments (pre-tax):
Proportional share of selected equity affiliates income taxes	33		57		44			134		20		12		24		21		77
Proportional share of selected equity affiliates net interest	60		61		59			180		54		53		59		60		226
Proportional share of selected equity affiliates depreciation and amortization	202		202		204			608		215		197		199		205		816
Adjusted EBITDA attributable to joint venture partners' noncontrolling interests	(18)		(20)		(22)			(60)		—		—		(20)		(17)		(37)
Adjusted EBITDA attributable to public ownership interest in PSXP	(83)		(95)		(103)			(281)		(95)		(80)		(87)		(91)		(353)
Phillips 66 Adjusted EBITDA*	166		1,212		2,468			3,846		1,182		183		378		91		1,834
* Includes an unrealized gain of $224 million associated with our investment in NOVONIX in the third quarter of 2021.





Use of Non-GAAP Financial Information—This earnings release supplemental data includes the terms "EBITDA," "adjusted EBITDA," "realized refining margin per barrel," "realized marketing fuel margin per barrel," and "adjusted capital spending." These are non-GAAP financial measures. EBITDA and adjusted EBITDA are included to help facilitate comparisons of operating performance across periods, to help facilitate comparisons with other companies in our industry and to help facilitate determination of enterprise value. The GAAP measures most directly comparable to EBITDA and adjusted EBITDA are net income for consolidated company information and income before income taxes for segment information. Reconciliations of net income (loss) and income (loss) before income taxes to EBITDA and adjusted EBITDA are included in this earnings release supplemental data. Realized refining margin per barrel is calculated on a similar basis as industry crack spreads and we believe it provides a useful measure of how well we performed relative to benchmark industry margins. Realized marketing fuel margin per barrel demonstrates the value uplift our marketing operations provide by optimizing the placement and ultimate sale of our refineries' fuel production. The GAAP measure most directly comparable to both realized margin per barrel measures is income before income taxes per barrel. Reconciliations of income (loss) before income taxes per barrel to realized refining margin and realized marketing fuel margin are included in this earnings release supplemental data. Adjusted capital spending is a non-GAAP financial measure that demonstrates the portion of total consolidated capital expenditures and investments funded by Phillips 66. The GAAP financial measure most comparable to adjusted capital spending is capital expenditures and investments. A reconciliation of capital expenditures and investments to adjusted capital spending is included in this earnings release supplemental data. Adjusted effective tax rate demonstrates the effective tax rate with the consideration of the tax effect on special items. The GAAP financial measure most comparable to adjusted effective tax rate is effective tax rate. A reconciliation of effective tax rate to adjusted effective tax rate is included in this earnings release supplemental data.

Page 13

Phillips 66 Earnings Release Supplemental Data


REALIZED MARGIN NON-GAAP RECONCILIATIONS

RECONCILIATION OF INCOME (LOSS) BEFORE INCOME TAXES TO REALIZED REFINING MARGINS

	Millions of Dollars, Except as Indicated
	2021					2020
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD

ATLANTIC BASIN/EUROPE
Income (loss) before income taxes	(153)	(110)	90		(173)	(637)	(227)	(199)	(161)	(1,224)
Plus:

Taxes other than income taxes	20	18	15		53	19	15	14	13	61
Depreciation, amortization and impairments	52	52	52		156	492	49	50	52	643
Selling, general and administrative expenses	14	18	19		51	13	12	6	13	44
Operating expenses	230	217	239		686	194	190	180	210	774
Equity in losses of affiliates	2	2	3		7	2	3	2	3	10
Other segment (income) expense, net	—	(8)	6		(2)	(2)	3	—	—	1
Proportional share of refining gross margins contributed by equity affiliates	43	42	19		104	16	16	18	17	67
Special items:
Certain tax impacts	—	—	—		—	—	—	—	(6)	(6)
Realized refining margins	208	231	443		882	97	61	71	141	370

Total processed inputs (MB)	42,826	49,979	47,792		140,597	41,335	39,121	43,176	46,904	170,536
Adjusted total processed inputs (MB)	42,826	49,979	47,792		140,597	41,335	39,121	43,176	46,904	170,536

Income (loss) before income taxes ($/BBL)**	(3.57)	(2.20)	1.88		(1.23)	(15.41)	(5.80)	(4.61)	(3.43)	(7.18)
Realized refining margins ($/BBL)***	4.86	4.63	9.27		6.28	2.38	1.53	1.65	2.99	2.17

GULF COAST
Loss before income taxes	(253)	(264)	(1,333)		(1,850)	(843)	(365)	(405)	(464)	(2,077)
Plus:

Taxes other than income taxes	27	25	13		65	37	25	30	15	107
Depreciation, amortization and impairments	77	77	1,361		1,515	741	75	75	77	968
Selling, general and administrative expenses	10	14	15		39	7	10	11	11	39
Operating expenses	321	299	312		932	492	277	258	327	1,354
Equity in (earnings) losses of affiliates	3	—	1		4	(1)	(1)	1	4	3
Other segment (income) expense, net	—	(6)	(1)		(7)	1	—	(1)	1	1
Proportional share of refining gross margins contributed by equity affiliates	—	—	—		—	—	—	—	—	—


Realized refining margins	185	145	368		698	434	21	(31)	(29)	395

Total processed inputs (MB)	54,560	69,364	64,016		187,940	64,066	61,032	51,543	37,230	213,871
Adjusted total processed inputs (MB)	54,560	69,364	64,016		187,940	64,066	61,032	51,543	37,230	213,871

Loss before income taxes ($/BBL)**	(4.64)	(3.81)	(20.82)		(9.84)	(13.16)	(5.98)	(7.86)	(12.46)	(9.71)
Realized refining margins ($/BBL)***	3.39	2.10	5.75		3.72	6.76	0.36	(0.61)	(0.78)	1.85

CENTRAL CORRIDOR
Income (loss) before income taxes	(248)	(82)	229		(101)	(227)	(104)	(132)	(178)	(641)
Plus:

Taxes other than income taxes	15	11	12		38	17	14	11	9	51
Depreciation, amortization and impairments	34	34	34		102	469	33	33	36	571
Selling, general and administrative expenses	7	7	10		24	6	7	7	8	28
Operating expenses	205	125	126		456	136	120	111	131	498
Equity in (earnings) losses of affiliates	117	65	(31)		151	51	79	118	115	363
Other segment (income) expense, net	(2)	(8)	—		(10)	(3)	3	(1)	(1)	(2)
Proportional share of refining gross margins contributed by equity affiliates	86	125	201		412	113	92	45	48	298
Special items:

Lower-of-cost-or-market inventory adjustments	—	—	—		—	35	(35)	—	—	—
Realized refining margins	214	277	581		1,072	597	209	192	168	1,166

Total processed inputs (MB)	19,754	23,466	26,373		69,593	23,345	20,778	24,682	23,245	92,050
Adjusted total processed inputs (MB)*	35,711	43,189	46,592		125,492	44,291	36,067	42,979	39,356	162,693

Income (loss) before income taxes ($/BBL)**	(12.55)	(3.49)	8.68		(1.45)	(9.72)	(5.01)	(5.35)	(7.66)	(6.96)
Realized refining margins ($/BBL)***	5.97	6.40	12.47		8.53	13.50	5.78	4.46	4.27	7.17

Page 14

Phillips 66 Earnings Release Supplemental Data


RECONCILIATION OF INCOME (LOSS) BEFORE INCOME TAXES TO REALIZED REFINING MARGINS (continued)

	Millions of Dollars, Except as Indicated
	2021					2020
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD

WEST COAST
Loss before income taxes	(386)	(273)	(112)		(771)	(554)	(182)	(1,167)	(310)	(2,213)
Plus:

Taxes other than income taxes	23	22	4		49	31	22	16	20	89
Depreciation, amortization and impairments	54	57	57		168	364	63	974	59	1,460
Selling, general and administrative expenses	11	10	11		32	10	9	9	10	38
Operating expenses	382	281	266		929	283	216	235	266	1,000

Other segment (income) expense, net	2	(2)	2		2	1	1	1	2	5



Realized refining margins	86	95	228		409	135	129	68	47	379

Total processed inputs (MB)	25,917	28,158	30,558		84,633	27,877	25,737	30,615	26,373	110,602
Adjusted total processed inputs (MB)	25,917	28,158	30,558		84,633	27,877	25,737	30,615	26,373	110,602

Loss before income taxes ($/BBL)**	(14.89)	(9.70)	(3.67)		(9.11)	(19.87)	(7.07)	(38.12)	(11.75)	(20.01)
Realized refining margins ($/BBL)***	3.33	3.37	7.46		4.83	4.80	5.05	2.23	1.79	3.43

WORLDWIDE
Loss before income taxes	(1,040)	(729)	(1,126)		(2,895)	(2,261)	(878)	(1,903)	(1,113)	(6,155)
Plus:

Taxes other than income taxes	85	76	44		205	104	76	71	57	308
Depreciation, amortization and impairments	217	220	1,504		1,941	2,066	220	1,132	224	3,642
Selling, general and administrative expenses	42	49	55		146	36	38	33	42	149
Operating expenses	1,138	922	943		3,003	1,105	803	784	934	3,626
Equity in (earnings) losses of affiliates	122	67	(27)		162	52	81	121	122	376
Other segment (income) expense, net	—	(24)	7		(17)	(3)	7	(1)	2	5
Proportional share of refining gross margins contributed by equity affiliates	129	167	220		516	129	108	63	65	365
Special items:
Certain tax impacts	—	—	—		—	—	—	—	(6)	(6)

Lower-of-cost-or-market inventory adjustments	—	—	—		—	35	(35)	—	—	—

Realized refining margins	693	748	1,620		3,061	1,263	420	300	327	2,310

Total processed inputs (MB)	143,057	170,967	168,739		482,763	156,623	146,668	150,016	133,752	587,059
Adjusted total processed inputs (MB)*	159,014	190,690	188,958		538,662	177,569	161,957	168,313	149,863	657,702

Loss before income taxes ($/BBL)**	(7.27)	(4.26)	(6.67)		(6.00)	(14.44)	(5.99)	(12.69)	(8.32)	(10.48)
Realized refining margins ($/BBL)***	4.36	3.92	8.57		5.68	7.11	2.60	1.78	2.18	3.51

* Adjusted total processed inputs include our proportional share of processed inputs of an equity affiliate.
** Income (loss) before income taxes divided by total processed inputs.
*** Realized refining margins per barrel, as presented, are calculated using the underlying realized refining margin amounts, in dollars, divided by adjusted total processed inputs, in barrels. As such, recalculated per barrel amounts using the rounded margins and barrels presented may differ from the presented per barrel amounts.

Page 15

Phillips 66 Earnings Release Supplemental Data


RECONCILIATION OF INCOME BEFORE INCOME TAXES TO REALIZED MARKETING FUEL MARGINS

	Millions of Dollars, Except as Indicated
	2021									2020
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD

UNITED STATES
Income before income taxes	199		366		354			919		299		179		271		121		870
Plus:

Taxes other than income taxes	4		2		2			8		2		2		—		(3)		1
Depreciation and amortization	3		5		3			11		3		3		3		3		12
Selling, general and administrative expenses	165		198		201			564		127		151		174		171		623
Equity in earnings of affiliates	(2)		(15)		(18)			(35)		—		(11)		(10)		(10)		(31)
Other operating revenues*	(86)		(110)		(120)			(316)		(84)		(71)		(90)		(82)		(327)





Realized marketing fuel margins	283		446		422			1,151		347		253		348		200		1,148

Total fuel sales volumes (MB)	145,794		170,228		183,332			499,354		167,178		144,517		155,948		146,226		613,869

Income before income taxes ($/BBL)	1.36		2.15		1.93			1.84		1.79		1.24		1.74		0.83		1.42
Realized marketing fuel margins ($/BBL)**	1.94		2.62		2.29			2.30		2.08		1.75		2.23		1.37		1.87

INTERNATIONAL
Income before income taxes	48		48		128			224		171		68		121		94		454
Plus:

Taxes other than income taxes	2		1		1			4		1		2		1		1		5
Depreciation and amortization	19		19		18			56		17		16		18		19		70
Selling, general and administrative expenses	60		60		64			184		63		57		62		64		246
Equity in earnings of affiliates	(24)		(31)		(30)			(85)		(22)		(28)		(31)		(27)		(108)
Other operating (revenues) expenses*	(5)		(10)		9			(6)		2		(4)		(7)		(18)		(27)
Other segment (income) expense, net	(1)		(1)		1			(1)		—		1		(1)		1		1
Marketing margins	99		86		191			376		232		112		163		134		641
Less: margin for nonfuel related sales	13		15		13			41		10		13		11		12		46
Realized marketing fuel margins	86		71		178			335		222		99		152		122		595

Total fuel sales volumes (MB)	21,474		24,539		26,427			72,440		25,979		19,583		24,164		24,047		93,773

Income before income taxes ($/BBL)	2.24		1.96		4.84			3.09		6.58		3.48		5.01		3.91		4.84
Realized marketing fuel margins ($/BBL)**	4.01		2.89		6.75			4.63		8.53		5.07		6.28		5.07		6.34


* Includes other nonfuel revenues and expenses.
** Realized marketing fuel margins per barrel, as presented, are calculated using the underlying realized marketing fuel margin amounts, in dollars, divided by sales volumes, in barrels. As such, recalculated per barrel amounts using the rounded margins and barrels presented may differ from the presented per barrel amounts.

ADJUSTED EFFECTIVE TAX RATE NON-GAAP RECONCILIATION

RECONCILIATION OF EFFECTIVE TAX RATE TO ADJUSTED EFFECTIVE TAX RATE

	Millions of Dollars, Except as Indicated
	2021									2020
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr	YTD		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD

EFFECTIVE TAX RATES
Income (loss) before income taxes	(771)		436		448			113		(2,478)		(445)		(1,350)		(691)		(4,964)
Special items	244		66		1,329			1,639		3,021		(19)		1,070		109		4,181
Adjusted income (loss) before income taxes	(527)		502		1,777			1,752		543		(464)		(280)		(582)		(783)

Income tax expense (benefit)	(132)		62		(40)			(110)		(51)		(378)		(624)		(197)		(1,250)
Special items	48		33		326			407		75		188		272		48		583
Adjusted income tax expense (benefit)	(84)		95		286			297		24		(190)		(352)		(149)		(667)

Effective tax rate (%)	17.1	%	14.2	%	(8.9)	%		(97.3)	%	2.1	%	84.9	%	46.2	%	28.5	%	25.2	%
Adjusted effective tax rate (%)	15.9	%	18.9	%	16.1	%		17.0	%	4.4	%	40.9	%	125.7	%	25.6	%	85.2	%

Page 16

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