Form 8-K PHILLIPS 66 PARTNERS LP For: Oct 29
| Exhibit 99.1 | ||||||||||||||
Phillips 66 Partners Reports Third-Quarter 2021 Financial Results
•Third-quarter earnings of $242 million and adjusted EBITDA of $367 million
•Recently entered into agreement for Phillips 66 to acquire all publicly held units
HOUSTON, Oct. 29, 2021 – Phillips 66 Partners LP (NYSE: PSXP) announces third-quarter 2021 earnings of $242 million, or $1.00 per diluted common unit. Cash from operations was $338 million, and distributable cash flow was $268 million. Adjusted EBITDA was $367 million in the third quarter, compared with $337 million in the prior quarter.
On Oct. 19, 2021, the general partner’s board of directors declared a third-quarter 2021 cash distribution of $0.875 per common unit, or $3.50 per unit on an annualized basis.
Financial Results
Phillips 66 Partners’ third-quarter 2021 earnings were $242 million, compared with $225 million in the second quarter. The Partnership reported adjusted EBITDA of $367 million in the third quarter, compared with $337 million in the prior quarter. The increases in third-quarter earnings and adjusted EBITDA mainly reflect higher equity earnings from the Bakken and Gray Oak pipelines.
Liquidity, Capital Expenditures and Investments
As of Sept. 30, 2021, total debt outstanding was $3.9 billion. The Partnership had $71 million in cash and cash equivalents and $749 million available under its revolving credit facility.
The Partnership’s capital expenditures and investments for the quarter were $103 million. Growth capital included spend on the C2G Pipeline project and funding for the Bakken Pipeline optimization project.
Merger Agreement with Phillips 66
On Oct. 27, 2021, Phillips 66 Partners and Phillips 66 announced that they have entered into an agreement pursuant to which Phillips 66 will acquire all of the publicly held units of Phillips 66 Partners it does not already own in exchange for Phillips 66 common stock. The transaction is expected to close in the first quarter of 2022.
Page 1
Phillips 66 Partners Reports Third-Quarter 2021 Financial Results
About Phillips 66 Partners
Headquartered in Houston, Phillips 66 Partners is a master limited partnership formed by Phillips 66 to own, operate, develop and acquire primarily fee-based crude oil, refined petroleum products and natural gas liquids pipelines, terminals and other midstream assets. For more information, visit www.phillips66partners.com.
- # # # -
CONTACTS | ||||||||
Jeff Dietert (investors) 832-765-2297 jeff.dietert@p66.com | Shannon Holy (investors) 832-765-2297 shannon.m.holy@p66.com | Thaddeus Herrick (media) 855-841-2368 thaddeus.f.herrick@p66.com | ||||||
Page 2
Phillips 66 Partners Reports Third-Quarter 2021 Financial Results
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This news release contains certain forward-looking statements as defined under the federal securities laws. 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 continued ability of Phillips 66 to satisfy its obligations under our commercial and other agreements; the volume of crude oil, refined petroleum products and NGL we or our equity affiliates transport, fractionate, terminal and store; the tariff rates with respect to volumes transported through our regulated assets, which are subject to review and possible adjustment by federal and state regulators; fluctuations in the prices for crude oil, refined petroleum products and NGL; the continuing effects of the COVID-19 pandemic and its negative impact on the demand for refined products; changes in governmental policies relating to crude oil, refined petroleum products or NGL pricing, regulation, taxation, or exports; liabilities associated with the risks and operational hazards inherent in transporting, fractionating, terminaling and storing crude oil, refined petroleum products and NGL; curtailment of operations due to accidents, severe weather (including as a result of climate change) or natural disasters, riots, strikes or lockouts; the inability to obtain or maintain permits, in a timely manner or at all, and the possible revocation or modification of permits; the operation, financing and distribution decisions of our equity affiliates; costs to comply with environmental laws and safety regulations; failure of information technology due to various causes, including unauthorized access or attacks; changes to the costs to deliver and transport crude oil, refined petroleum products and NGL; potential liability from litigation or for remedial actions, including removal and reclamation obligations under environmental regulations; the failure to complete construction of capital projects on time and within budget; 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; our ability to comply with our debt covenants and to incur additional indebtedness on favorable terms; changes in tax, environmental and other laws and regulations; and other economic, business, competitive and/or regulatory factors affecting Phillips 66 Partners’ businesses generally as set forth in our filings with the Securities and Exchange Commission. Phillips 66 Partners is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.
Use of Non-GAAP Financial Information—This news release includes the terms “EBITDA,” “adjusted EBITDA,” “distributable cash flow” and “coverage ratio.” These are non-GAAP financial measures. EBITDA and adjusted EBITDA are included to help facilitate comparisons of operating performance of the Partnership with other companies in our industry. EBITDA and distributable cash flow help facilitate an assessment of our ability to generate sufficient cash flow to make distributions to our partners. We believe that the presentation of EBITDA, adjusted EBITDA and distributable cash flow provides useful information to investors in assessing our financial condition and results of operations. Our coverage ratio is calculated as distributable cash flow divided by total cash distributions and is included to help indicate the Partnership’s ability to pay cash distributions from current earnings. The GAAP performance measure most directly comparable to EBITDA and adjusted EBITDA is net income (loss). The GAAP liquidity measure most comparable to EBITDA and distributable cash flow is net cash provided by operating activities. The GAAP financial measure most comparable to our coverage ratio is calculated as net cash provided by operating activities divided by total cash distributions. These non-GAAP financial measures should not be considered as alternatives to their comparable GAAP measures. They have important limitations as analytical tools because they exclude some but not all items that affect their corresponding GAAP measures. They should not be considered in isolation or as substitutes for analysis of our results as reported under GAAP. Additionally, because EBITDA, adjusted EBITDA, distributable cash flow and coverage ratio may be defined differently by other companies in our industry, our definition of those measures may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.
Reconciliations of these non-GAAP measures to their comparable GAAP measures are included in this release.
References in the release to earnings or losses refer to net income or losses attributable to the Partnership. References to EBITDA refer to earnings before interest, income taxes, depreciation and amortization.
Page 3
Phillips 66 Partners Reports Third-Quarter 2021 Financial Results
Results of Operations (Unaudited)
| Summarized Financial Statement Information | |||||||||||||||||
| Millions of Dollars Except as Indicated | |||||||||||||||||
| Q3 2021 | Q2 2021 | ||||||||||||||||
| Selected Income Statement Data | |||||||||||||||||
| Total revenues and other income | $ | 452 | 423 | ||||||||||||||
| Net income | 255 | 234 | |||||||||||||||
| Net income attributable to the Partnership | 242 | 225 | |||||||||||||||
| Adjusted EBITDA | 367 | 337 | |||||||||||||||
| Distributable cash flow | 268 | 267 | |||||||||||||||
| Net Income Attributable to the Partnership Per Limited Partner Unit—Diluted (Dollars) | |||||||||||||||||
| Common units | $ | 1.00 | 0.91 | ||||||||||||||
| Selected Balance Sheet Data | |||||||||||||||||
| Cash and cash equivalents | $ | 71 | 2 | ||||||||||||||
| Equity investments | 2,941 | 2,962 | |||||||||||||||
| Total assets | 7,077 | 7,001 | |||||||||||||||
| Total debt | 3,896 | 3,910 | |||||||||||||||
| Equity held by public | |||||||||||||||||
| Preferred units | 729 | 729 | |||||||||||||||
| Common units | 2,657 | 2,649 | |||||||||||||||
| Equity held by Phillips 66 | |||||||||||||||||
| Common units | (798) | (820) | |||||||||||||||
Page 4
Phillips 66 Partners Reports Third-Quarter 2021 Financial Results
Statement of Income
| Millions of Dollars | |||||||||||||||||
| Q3 2021 | Q2 2021 | ||||||||||||||||
| Revenues and Other Income | |||||||||||||||||
| Operating revenues—related parties | $ | 275 | 274 | ||||||||||||||
| Operating revenues—third parties | 8 | 6 | |||||||||||||||
| Equity in earnings of affiliates | 163 | 142 | |||||||||||||||
| Other income | 6 | 1 | |||||||||||||||
| Total revenues and other income | 452 | 423 | |||||||||||||||
| Costs and Expenses | |||||||||||||||||
| Operating and maintenance expenses | 89 | 93 | |||||||||||||||
| Depreciation | 38 | 34 | |||||||||||||||
| Impairments | 10 | — | |||||||||||||||
| General and administrative expenses | 17 | 18 | |||||||||||||||
| Taxes other than income taxes | 10 | 11 | |||||||||||||||
| Interest and debt expense | 32 | 32 | |||||||||||||||
| Total costs and expenses | 197 | 188 | |||||||||||||||
| Income before income taxes | 255 | 235 | |||||||||||||||
| Income tax expense | — | 1 | |||||||||||||||
| Net Income | 255 | 234 | |||||||||||||||
| Less: Net income attributable to noncontrolling interest | 13 | 9 | |||||||||||||||
Net Income Attributable to the Partnership | 242 | 225 | |||||||||||||||
Less: Preferred unitholders’ interest in net income attributable to the Partnership | 12 | 12 | |||||||||||||||
Limited Partners’ Interest in Net Income Attributable to the Partnership | $ | 230 | 213 | ||||||||||||||
Page 5
Phillips 66 Partners Reports Third-Quarter 2021 Financial Results
Selected Operating Data
| Q3 2021 | Q2 2021 | ||||||||||||||||
Wholly Owned Operating Data | |||||||||||||||||
| Pipelines | |||||||||||||||||
| Pipeline revenues (millions of dollars) | $ | 121 | 121 | ||||||||||||||
Pipeline volumes(1) (thousands of barrels daily) | |||||||||||||||||
| Crude oil | 954 | 957 | |||||||||||||||
| Refined petroleum products and NGL | 994 | 1,029 | |||||||||||||||
| Total | 1,948 | 1,986 | |||||||||||||||
| Average pipeline revenue per barrel (dollars) | $ | 0.67 | 0.66 | ||||||||||||||
| Terminals | |||||||||||||||||
| Terminal revenues (millions of dollars) | $ | 40 | 43 | ||||||||||||||
| Terminal throughput (thousands of barrels daily) | |||||||||||||||||
Crude oil(2) | 446 | 397 | |||||||||||||||
| Refined petroleum products | 780 | 827 | |||||||||||||||
| Total | 1,226 | 1,224 | |||||||||||||||
| Average terminaling revenue per barrel (dollars) | $ | 0.36 | 0.38 | ||||||||||||||
| Storage, processing and other revenues (millions of dollars) | $ | 122 | 116 | ||||||||||||||
| Total Operating Revenues (millions of dollars) | $ | 283 | 280 | ||||||||||||||
Joint Venture Operating Data(3) | |||||||||||||||||
| Crude oil, refined petroleum products and NGL (thousands of barrels daily) | 1,294 | 1,327 | |||||||||||||||
(1) Represents the sum of volumes transported through each separately tariffed pipeline segment. | |||||||||||||||||
(2) Bayway and Ferndale rail rack volumes included in crude oil terminals. | |||||||||||||||||
(3) Proportional share of total pipeline and terminal volumes of joint ventures consistent with recognized equity in earnings of affiliates. | |||||||||||||||||
Cash Distributions
| Millions of Dollars Except as Indicated | |||||||||||||||||
| Q3 2021 | Q2 2021 | ||||||||||||||||
Cash Distributions† | |||||||||||||||||
| Common units—public | $ | 51 | 51 | ||||||||||||||
| Common units—Phillips 66 | 149 | 148 | |||||||||||||||
| Total | $ | 200 | 199 | ||||||||||||||
| Cash Distribution Per Common Unit (Dollars) | $ | 0.875 | 0.875 | ||||||||||||||
Coverage Ratio* | 1.34 | 1.34 | |||||||||||||||
†Cash distributions declared attributable to the indicated periods. | |||||||||||||||||
*Calculated as distributable cash flow divided by total cash distributions. Used to indicate the Partnership’s ability to pay cash distributions from current earnings. Net cash provided by operating activities divided by total cash distributions was 1.69x and 1.44x at Q3 2021 and Q2 2021, respectively. | |||||||||||||||||
Page 6
Phillips 66 Partners Reports Third-Quarter 2021 Financial Results
Reconciliation of Adjusted EBITDA and Distributable Cash Flow to Net Income Attributable to the Partnership
| Millions of Dollars | |||||||||||
| Q3 2021 | Q2 2021 | ||||||||||
| Net Income Attributable to the Partnership | $ | 242 | 225 | ||||||||
| Plus: | |||||||||||
| Net income attributable to noncontrolling interest | 13 | 9 | |||||||||
| Net Income | 255 | 234 | |||||||||
| Plus: | |||||||||||
| Depreciation | 38 | 34 | |||||||||
| Net interest expense | 31 | 32 | |||||||||
| Income tax expense | — | 1 | |||||||||
| EBITDA | 324 | 301 | |||||||||
| Plus: | |||||||||||
| Proportional share of equity affiliates’ net interest, taxes, depreciation and amortization, and impairments | 51 | 51 | |||||||||
| Expenses indemnified or prefunded by Phillips 66 | — | 1 | |||||||||
| Impairments | 10 | — | |||||||||
| Less: | |||||||||||
| Adjusted EBITDA attributable to noncontrolling interest | 18 | 16 | |||||||||
| Adjusted EBITDA | 367 | 337 | |||||||||
| Plus: | |||||||||||
Deferred revenue impacts*† | 2 | (4) | |||||||||
| Less: | |||||||||||
| Equity affiliate distributions less than proportional adjusted EBITDA | 14 | 3 | |||||||||
Maintenance capital expenditures† | 44 | 17 | |||||||||
| Net interest expense | 31 | 32 | |||||||||
| Preferred unit distributions | 12 | 12 | |||||||||
| Income taxes paid | — | 2 | |||||||||
| Distributable Cash Flow | $ | 268 | 267 | ||||||||
*Difference between cash receipts and revenue recognition. | |||||||||||
†Excludes Merey Sweeny capital reimbursements and turnaround impacts. | |||||||||||
Page 7
Phillips 66 Partners Reports Third-Quarter 2021 Financial Results
Reconciliation of Adjusted EBITDA and Distributable Cash Flow to Net Cash Provided by Operating Activities
| Millions of Dollars | ||||||||||||||
| Q3 2021 | Q2 2021 | |||||||||||||
| Net Cash Provided by Operating Activities | $ | 338 | 286 | |||||||||||
| Plus: | ||||||||||||||
| Net interest expense | 31 | 32 | ||||||||||||
| Income tax expense | — | 1 | ||||||||||||
| Changes in working capital | (36) | (11) | ||||||||||||
| Undistributed equity earnings | 2 | (7) | ||||||||||||
| Impairments | (10) | — | ||||||||||||
| Deferred revenues and other liabilities | — | 2 | ||||||||||||
| Other | (1) | (2) | ||||||||||||
| EBITDA | 324 | 301 | ||||||||||||
| Plus: | ||||||||||||||
| Proportional share of equity affiliates’ net interest, taxes, depreciation and amortization, and impairments | 51 | 51 | ||||||||||||
| Expenses indemnified or prefunded by Phillips 66 | — | 1 | ||||||||||||
| Impairments | 10 | — | ||||||||||||
| Less: | ||||||||||||||
| Adjusted EBITDA attributable to noncontrolling interest | 18 | 16 | ||||||||||||
| Adjusted EBITDA | 367 | 337 | ||||||||||||
| Plus: | ||||||||||||||
Deferred revenue impacts*† | 2 | (4) | ||||||||||||
| Less: | ||||||||||||||
| Equity affiliate distributions less than proportional adjusted EBITDA | 14 | 3 | ||||||||||||
Maintenance capital expenditures† | 44 | 17 | ||||||||||||
| Net interest expense | 31 | 32 | ||||||||||||
| Preferred unit distributions | 12 | 12 | ||||||||||||
| Income taxes paid | — | 2 | ||||||||||||
| Distributable Cash Flow | $ | 268 | 267 | |||||||||||
*Difference between cash receipts and revenue recognition. | ||||||||||||||
†Excludes Merey Sweeny capital reimbursements and turnaround impacts. | ||||||||||||||
Page 8
Exhibit 99.2
Phillips 66 Partners LP Earnings Release Supplemental Data | ||||||||||||||
| STATEMENT OF INCOME (LOSS) | |||||||||||||||||||||||||||||||||||
| CONSOLIDATED | |||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||
Operating revenues—related parties | 245 | 274 | 275 | 794 | 258 | 236 | 256 | 258 | 1,008 | ||||||||||||||||||||||||||
Operating revenues—third parties | 7 | 6 | 8 | 21 | 9 | 5 | 9 | 7 | 30 | ||||||||||||||||||||||||||
Equity in earnings of affiliates | 124 | 142 | 163 | 429 | 136 | 104 | 129 | 124 | 493 | ||||||||||||||||||||||||||
| Gain from equity interest transfer | — | — | — | — | — | 84 | — | — | 84 | ||||||||||||||||||||||||||
Other income | — | 1 | 6 | 7 | 1 | 1 | — | 1 | 3 | ||||||||||||||||||||||||||
Total revenues and other income | 376 | 423 | 452 | 1,251 | 404 | 430 | 394 | 390 | 1,618 | ||||||||||||||||||||||||||
| Costs and Expenses | |||||||||||||||||||||||||||||||||||
| Operating and maintenance expenses | 95 | 93 | 89 | 277 | 88 | 84 | 85 | 85 | 342 | ||||||||||||||||||||||||||
| Depreciation | 34 | 34 | 38 | 106 | 30 | 31 | 35 | 39 | 135 | ||||||||||||||||||||||||||
| Impairments | 198 | — | 10 | 208 | — | — | — | 96 | 96 | ||||||||||||||||||||||||||
| General and administrative expenses | 17 | 18 | 17 | 52 | 17 | 17 | 16 | 16 | 66 | ||||||||||||||||||||||||||
| Taxes other than income taxes | 10 | 11 | 10 | 31 | 11 | 10 | 9 | 10 | 40 | ||||||||||||||||||||||||||
| Interest and debt expense | 33 | 32 | 32 | 97 | 29 | 28 | 32 | 32 | 121 | ||||||||||||||||||||||||||
| Other expenses | — | — | 1 | 1 | 2 | 5 | — | — | 7 | ||||||||||||||||||||||||||
| Total costs and expenses | 387 | 188 | 197 | 772 | 177 | 175 | 177 | 278 | 807 | ||||||||||||||||||||||||||
| Income (loss) before income taxes | (11) | 235 | 255 | 479 | 227 | 255 | 217 | 112 | 811 | ||||||||||||||||||||||||||
| Income tax expense | — | 1 | — | 1 | 1 | — | 1 | 1 | 3 | ||||||||||||||||||||||||||
| Net Income (Loss) | (11) | 234 | 255 | 478 | 226 | 255 | 216 | 111 | 808 | ||||||||||||||||||||||||||
| Less: Net income attributable to noncontrolling interest | 7 | 9 | 13 | 29 | — | — | 10 | 7 | 17 | ||||||||||||||||||||||||||
Net Income (Loss) Attributable to the Partnership | (18) | 225 | 242 | 449 | 226 | 255 | 206 | 104 | 791 | ||||||||||||||||||||||||||
| Less: Preferred unitholders’ interest in net income (loss) attributable to the Partnership | 12 | 12 | 12 | 36 | 10 | 9 | 10 | 12 | 41 | ||||||||||||||||||||||||||
| Limited Partners’ Interest in Net Income (Loss) Attributable to the Partnership | (30) | 213 | 230 | 413 | 216 | 246 | 196 | 92 | 750 | ||||||||||||||||||||||||||
Adjusted EBITDA* | 289 | 337 | 367 | 993 | 321 | 269 | 313 | 318 | 1,221 | ||||||||||||||||||||||||||
Distributable Cash Flow* | 233 | 267 | 268 | 768 | 269 | 218 | 243 | 240 | 970 | ||||||||||||||||||||||||||
Net Income (Loss) Attributable to the Partnership Per Limited Partner Unit (dollars) | |||||||||||||||||||||||||||||||||||
| Common units—basic | (0.13) | 0.91 | 1.00 | 1.79 | 0.95 | 1.07 | 0.86 | 0.40 | 3.29 | ||||||||||||||||||||||||||
| Common units—diluted | (0.13) | 0.91 | 1.00 | 1.79 | 0.93 | 1.05 | 0.85 | 0.40 | 3.27 | ||||||||||||||||||||||||||
Weighted-Average Limited Partner Units Outstanding (thousands) | |||||||||||||||||||||||||||||||||||
| Common units—basic | 228,340 | 228,340 | 228,340 | 228,340 | 228,312 | 228,340 | 228,340 | 228,340 | 228,333 | ||||||||||||||||||||||||||
| Common units—diluted | 228,340 | 228,340 | 228,340 | 228,340 | 242,132 | 242,160 | 242,160 | 228,340 | 242,153 | ||||||||||||||||||||||||||
* See note on the use of non-GAAP measures. | |||||||||||||||||||||||||||||||||||
Page 1
Exhibit 99.2
Phillips 66 Partners LP Earnings Release Supplemental Data | ||||||||||||||
| SELECTED OPERATING DATA | |||||||||||||||||||||||||||||||||||
| CONSOLIDATED | |||||||||||||||||||||||||||||||||||
| 2021 | 2020 | ||||||||||||||||||||||||||||||||||
| 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | ||||||||||||||||||||||||||
Wholly Owned Operating Data | |||||||||||||||||||||||||||||||||||
| Pipelines | |||||||||||||||||||||||||||||||||||
Pipeline revenues (millions of dollars) | 104 | 121 | 121 | 346 | 111 | 97 | 117 | 111 | 436 | ||||||||||||||||||||||||||
Pipeline volumes(1) (thousands of barrels daily) | |||||||||||||||||||||||||||||||||||
| Crude oil | 796 | 957 | 954 | 903 | 941 | 806 | 867 | 843 | 864 | ||||||||||||||||||||||||||
| Refined petroleum products and NGL | 809 | 1,029 | 994 | 945 | 866 | 825 | 907 | 877 | 869 | ||||||||||||||||||||||||||
Total | 1,605 | 1,986 | 1,948 | 1,848 | 1,807 | 1,631 | 1,774 | 1,720 | 1,733 | ||||||||||||||||||||||||||
Average pipeline revenue per barrel (dollars) | 0.71 | 0.66 | 0.67 | 0.68 | 0.67 | 0.65 | 0.71 | 0.70 | 0.68 | ||||||||||||||||||||||||||
| Terminals | |||||||||||||||||||||||||||||||||||
Terminal revenues (millions of dollars) | 39 | 43 | 40 | 122 | 43 | 33 | 36 | 41 | 153 | ||||||||||||||||||||||||||
Terminal throughput (thousands of barrels daily) | |||||||||||||||||||||||||||||||||||
Crude oil(2) | 374 | 397 | 446 | 406 | 460 | 380 | 296 | 283 | 354 | ||||||||||||||||||||||||||
| Refined petroleum products | 657 | 827 | 780 | 756 | 748 | 690 | 700 | 711 | 713 | ||||||||||||||||||||||||||
Total | 1,031 | 1,224 | 1,226 | 1,162 | 1,208 | 1,070 | 996 | 994 | 1,067 | ||||||||||||||||||||||||||
Average terminaling revenue per barrel (dollars) | 0.41 | 0.38 | 0.36 | 0.38 | 0.39 | 0.33 | 0.39 | 0.44 | 0.39 | ||||||||||||||||||||||||||
Storage, processing and other revenues (millions of dollars) | 109 | 116 | 122 | 347 | 113 | 111 | 112 | 113 | 449 | ||||||||||||||||||||||||||
Total Operating Revenues (millions of dollars) | 252 | 280 | 283 | 815 | 267 | 241 | 265 | 265 | 1,038 | ||||||||||||||||||||||||||
Joint Venture Operating Data(3) | |||||||||||||||||||||||||||||||||||
Crude oil, refined petroleum products and NGL (thousands of barrels daily) | 1,052 | 1,327 | 1,294 | 1,225 | 838 | 942 | 1,142 | 1,102 | 1,007 | ||||||||||||||||||||||||||
| (1) Represents the sum of volumes transported through each separately tariffed pipeline segment. | |||||||||||||||||||||||||||||||||||
| (2) Bayway and Ferndale rail rack volumes included in crude oil terminals. | |||||||||||||||||||||||||||||||||||
| (3) Proportional share of total pipeline and terminal volumes of joint ventures consistent with recognized equity in earnings of affiliates. | |||||||||||||||||||||||||||||||||||
Page 2
Exhibit 99.2
Phillips 66 Partners LP Earnings Release Supplemental Data | ||||||||||||||
| CAPITAL EXPENDITURES AND INVESTMENTS | |||||||||||||||||||||||||||||||||||
| Millions of Dollars | |||||||||||||||||||||||||||||||||||
| 2021 | 2020 | ||||||||||||||||||||||||||||||||||
| 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | ||||||||||||||||||||||||||
| Capital Expenditures and Investments | |||||||||||||||||||||||||||||||||||
| Expansion | 52 | 44 | 59 | 155 | 196 | 311 | 160 | 90 | 757 | ||||||||||||||||||||||||||
| Maintenance | 6 | 17 | 44 | 67 | 15 | 28 | 21 | 33 | 97 | ||||||||||||||||||||||||||
| Adjusted Capital Spending* | 58 | 61 | 103 | 222 | 211 | 339 | 181 | 123 | 854 | ||||||||||||||||||||||||||
| Capital expenditures and investments funded by certain joint venture partners** | — | — | — | — | 23 | 38 | 3 | (3) | 61 | ||||||||||||||||||||||||||
| Capital Expenditures and Investments | 58 | 61 | 103 | 222 | 234 | 377 | 184 | 120 | 915 | ||||||||||||||||||||||||||
| * See note on the use of non-GAAP measures. | |||||||||||||||||||||||||||||||||||
| ** Includes previously funded capital returned to our joint venture partner in the fourth quarter of 2020. | |||||||||||||||||||||||||||||||||||
| CASH DISTRIBUTIONS | |||||||||||||||||||||||||||||||||||
| 2021 | 2020 | ||||||||||||||||||||||||||||||||||
| 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | ||||||||||||||||||||||||||
Cash Distribution Per Common Unit (Dollars) | 0.875 | 0.875 | 0.875 | 2.625 | 0.875 | 0.875 | 0.875 | 0.875 | 3.500 | ||||||||||||||||||||||||||
Cash Distributions* ($ Millions) | |||||||||||||||||||||||||||||||||||
| Common units—public | 52 | 51 | 51 | 154 | 51 | 51 | 52 | 51 | 205 | ||||||||||||||||||||||||||
| Common units—Phillips 66 | 148 | 148 | 149 | 445 | 148 | 149 | 148 | 149 | 594 | ||||||||||||||||||||||||||
| Total | 200 | 199 | 200 | 599 | 199 | 200 | 200 | 200 | 799 | ||||||||||||||||||||||||||
Coverage Ratio†** | 1.17 | 1.34 | 1.34 | 1.28 | 1.35 | 1.09 | 1.22 | 1.20 | 1.21 | ||||||||||||||||||||||||||
| * Cash distributions declared attributable to the indicated periods. | |||||||||||||||||||||||||||||||||||
| ** See note on the use of non-GAAP measures. | |||||||||||||||||||||||||||||||||||
† Calculated as distributable cash flow divided by total cash distributions. Used to indicate the Partnership’s ability to pay cash distributions from current earnings. | |||||||||||||||||||||||||||||||||||
Page 3
Exhibit 99.2
Phillips 66 Partners LP Earnings Release Supplemental Data | ||||||||||||||
| NON-GAAP FINANCIAL MEASURES RECONCILIATION | |||||||||||||||||||||||||||||||||||
| CONSOLIDATED | |||||||||||||||||||||||||||||||||||
| Millions of Dollars | |||||||||||||||||||||||||||||||||||
| 2021 | 2020 | ||||||||||||||||||||||||||||||||||
| 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | ||||||||||||||||||||||||||
| Reconciliation to Net Income (Loss) Attributable to the Partnership | |||||||||||||||||||||||||||||||||||
| Net Income (Loss) Attributable to the Partnership | (18) | 225 | 242 | 449 | 226 | 255 | 206 | 104 | 791 | ||||||||||||||||||||||||||
| Plus: | |||||||||||||||||||||||||||||||||||
| Net income attributable to noncontrolling interest | 7 | 9 | 13 | 29 | — | — | 10 | 7 | 17 | ||||||||||||||||||||||||||
| Net Income (Loss) | (11) | 234 | 255 | 478 | 226 | 255 | 216 | 111 | 808 | ||||||||||||||||||||||||||
| Plus: | |||||||||||||||||||||||||||||||||||
| Depreciation | 34 | 34 | 38 | 106 | 30 | 31 | 35 | 39 | 135 | ||||||||||||||||||||||||||
| Net interest expense | 33 | 32 | 31 | 96 | 28 | 29 | 31 | 32 | 120 | ||||||||||||||||||||||||||
| Income tax expense | — | 1 | — | 1 | 1 | — | 1 | 1 | 3 | ||||||||||||||||||||||||||
| EBITDA** | 56 | 301 | 324 | 681 | 285 | 315 | 283 | 183 | 1,066 | ||||||||||||||||||||||||||
| Plus: | |||||||||||||||||||||||||||||||||||
| Proportional share of equity affiliates’ net interest, taxes, depreciation and amortization, and impairments | 49 | 51 | 51 | 151 | 35 | 38 | 45 | 54 | 172 | ||||||||||||||||||||||||||
| Expenses indemnified or prefunded by Phillips 66 | — | 1 | — | 1 | — | — | 1 | 1 | 2 | ||||||||||||||||||||||||||
| Transaction costs associated with acquisitions | — | — | — | — | 1 | — | — | — | 1 | ||||||||||||||||||||||||||
| Impairments | 198 | — | 10 | 208 | — | — | — | 96 | 96 | ||||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||||||||
| Gain from equity interest transfer | — | — | — | — | — | 84 | — | — | 84 | ||||||||||||||||||||||||||
| Adjusted EBITDA attributable to noncontrolling interest | 14 | 16 | 18 | 48 | — | — | 16 | 16 | 32 | ||||||||||||||||||||||||||
| Adjusted EBITDA** | 289 | 337 | 367 | 993 | 321 | 269 | 313 | 318 | 1,221 | ||||||||||||||||||||||||||
| Plus: | |||||||||||||||||||||||||||||||||||
Deferred revenue impacts*† | 9 | (4) | 2 | 7 | 2 | 5 | (3) | 4 | 8 | ||||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||||||||
| Equity affiliate distributions less than (more than) proportional adjusted EBITDA | 14 | 3 | 14 | 31 | 1 | (10) | 4 | 5 | — | ||||||||||||||||||||||||||
Maintenance capital expenditures† | 6 | 17 | 44 | 67 | 15 | 28 | 21 | 33 | 97 | ||||||||||||||||||||||||||
| Net interest expense | 33 | 32 | 31 | 96 | 28 | 29 | 31 | 32 | 120 | ||||||||||||||||||||||||||
| Preferred unit distributions | 12 | 12 | 12 | 36 | 10 | 9 | 10 | 12 | 41 | ||||||||||||||||||||||||||
| Income taxes paid | — | 2 | — | 2 | — | — | 1 | — | 1 | ||||||||||||||||||||||||||
| Distributable Cash Flow** | 233 | 267 | 268 | 768 | 269 | 218 | 243 | 240 | 970 | ||||||||||||||||||||||||||
| * Difference between cash receipts and revenue recognition. | |||||||||||||||||||||||||||||||||||
| ** See note on the use of non-GAAP measures. | |||||||||||||||||||||||||||||||||||
| † Excludes Merey Sweeny capital reimbursements and turnaround impacts. | |||||||||||||||||||||||||||||||||||
Page 4
Exhibit 99.2
Phillips 66 Partners LP Earnings Release Supplemental Data | ||||||||||||||
| NON-GAAP FINANCIAL MEASURES RECONCILIATION (continued) | |||||||||||||||||||||||||||||||||||
| CONSOLIDATED | |||||||||||||||||||||||||||||||||||
| Millions of Dollars | |||||||||||||||||||||||||||||||||||
| 2021 | 2020 | ||||||||||||||||||||||||||||||||||
| 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | YTD | ||||||||||||||||||||||||||
| Reconciliation to Net Cash Provided by Operating Activities | |||||||||||||||||||||||||||||||||||
| Net Cash Provided by Operating Activities | 227 | 286 | 338 | 851 | 274 | 215 | 296 | 170 | 955 | ||||||||||||||||||||||||||
| Plus: | |||||||||||||||||||||||||||||||||||
| Net interest expense | 33 | 32 | 31 | 96 | 28 | 29 | 31 | 32 | 120 | ||||||||||||||||||||||||||
| Income tax expense | — | 1 | — | 1 | 1 | — | 1 | 1 | 3 | ||||||||||||||||||||||||||
| Changes in working capital | (11) | (11) | (36) | (58) | (12) | (3) | (45) | 75 | 15 | ||||||||||||||||||||||||||
| Undistributed equity earnings | 5 | (7) | 2 | — | (4) | (5) | — | 2 | (7) | ||||||||||||||||||||||||||
| Impairments | (198) | — | (10) | (208) | — | — | — | (96) | (96) | ||||||||||||||||||||||||||
| Gain from equity interest transfer | — | — | — | — | — | 84 | — | — | 84 | ||||||||||||||||||||||||||
| Deferred revenues and other liabilities | — | 2 | — | 2 | — | 2 | 1 | 1 | 4 | ||||||||||||||||||||||||||
| Other | — | (2) | (1) | (3) | (2) | (7) | (1) | (2) | (12) | ||||||||||||||||||||||||||
| EBITDA** | 56 | 301 | 324 | 681 | 285 | 315 | 283 | 183 | 1,066 | ||||||||||||||||||||||||||
| Plus: | |||||||||||||||||||||||||||||||||||
| Proportional share of equity affiliates’ net interest, taxes, depreciation and amortization, and impairments | 49 | 51 | 51 | 151 | 35 | 38 | 45 | 54 | 172 | ||||||||||||||||||||||||||
| Expenses indemnified or prefunded by Phillips 66 | — | 1 | — | 1 | — | — | 1 | 1 | 2 | ||||||||||||||||||||||||||
| Transaction costs associated with acquisitions | — | — | — | — | 1 | — | — | — | 1 | ||||||||||||||||||||||||||
| Impairments | 198 | — | 10 | 208 | — | — | — | 96 | 96 | ||||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||||||||
| Gain from equity interest transfer | — | — | — | — | — | 84 | — | — | 84 | ||||||||||||||||||||||||||
| Adjusted EBITDA attributable to noncontrolling interest | 14 | 16 | 18 | 48 | — | — | 16 | 16 | 32 | ||||||||||||||||||||||||||
| Adjusted EBITDA** | 289 | 337 | 367 | 993 | 321 | 269 | 313 | 318 | 1,221 | ||||||||||||||||||||||||||
| Plus: | |||||||||||||||||||||||||||||||||||
Deferred revenue impacts*† | 9 | (4) | 2 | 7 | 2 | 5 | (3) | 4 | 8 | ||||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||||||||
| Equity affiliate distributions less than (more than) proportional adjusted EBITDA | 14 | 3 | 14 | 31 | 1 | (10) | 4 | 5 | — | ||||||||||||||||||||||||||
Maintenance capital expenditures† | 6 | 17 | 44 | 67 | 15 | 28 | 21 | 33 | 97 | ||||||||||||||||||||||||||
| Net interest expense | 33 | 32 | 31 | 96 | 28 | 29 | 31 | 32 | 120 | ||||||||||||||||||||||||||
| Preferred unit distributions | 12 | 12 | 12 | 36 | 10 | 9 | 10 | 12 | 41 | ||||||||||||||||||||||||||
| Income taxes paid | — | 2 | — | 2 | — | — | 1 | — | 1 | ||||||||||||||||||||||||||
| Distributable Cash Flow** | 233 | 267 | 268 | 768 | 269 | 218 | 243 | 240 | 970 | ||||||||||||||||||||||||||
| * Difference between cash receipts and revenue recognition. | |||||||||||||||||||||||||||||||||||
| ** See note on the use of non-GAAP measures. | |||||||||||||||||||||||||||||||||||
| † Excludes Merey Sweeny capital reimbursements and turnaround impacts. | |||||||||||||||||||||||||||||||||||
Page 5
Exhibit 99.2
Use of Non-GAAP Financial Information—This earnings release supplemental data includes the terms “EBITDA,” “adjusted EBITDA,” “distributable cash flow,” “coverage ratio,” and “adjusted capital spending.” These are non-GAAP financial measures. EBITDA and adjusted EBITDA are included to help facilitate comparisons of operating performance of the Partnership with other companies in our industry. EBITDA and distributable cash flow help facilitate an assessment of our ability to generate sufficient cash flow to make distributions to our partners. We believe that the presentation of EBITDA, adjusted EBITDA and distributable cash flow provides useful information to investors in assessing our financial condition and results of operations. Our coverage ratio is calculated as distributable cash flow divided by total cash distributions and is included to help indicate the Partnership’s ability to pay cash distributions from current earnings. Additionally, adjusted capital spending is a non-GAAP financial measure that demonstrates Phillips 66 Partners' net share of capital spending. The GAAP performance measure most directly comparable to EBITDA and adjusted EBITDA is net income (loss). The GAAP liquidity measure most comparable to EBITDA and distributable cash flow is net cash provided by operating activities. The GAAP financial measure most comparable to our coverage ratio is calculated as net cash provided by operating activities divided by total cash distributions. The GAAP financial measure most comparable to adjusted capital spending is capital expenditures and investments. These non-GAAP financial measures should not be considered as alternatives to their comparable GAAP measures. They have important limitations as analytical tools because they exclude some but not all items that affect their corresponding GAAP measures. They should not be considered in isolation or as substitutes for analysis of our results as reported under GAAP. Additionally, because EBITDA, adjusted EBITDA, distributable cash flow, coverage ratio and adjusted capital spending may be defined differently by other companies in our industry, our definition of those measures may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.
Reconciliations of these non-GAAP measures to their comparable GAAP measures are included in this earnings release supplemental data. Additionally, the disaggregation of adjusted capital spending between expansion and maintenance is not a distinction recognized under GAAP. We provide such disaggregation because our partnership agreement requires that we treat expansion and maintenance capital differently for certain surplus determinations. Further, we generally fund expansion capital spending with both operating and financing cash flows and fund maintenance capital spending with operating cash flows. We believe this is an important distinction in our liquidity profile.
Page 6