UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K
 
CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported): April 28, 2017

Phillips 66
(Exact name of registrant as specified in its charter)

	
					
Delaware	 	001-35349	 	45-3779385	
(State or other jurisdiction of incorporation)	 	(Commission File Number)	 	(I.R.S. Employer Identification No.)	

2331 CityWest Blvd., Houston, Texas 77042
(Address of principal executive offices and zip code)

Registrant’s telephone number, including area code: (281) 293-6600

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.02 Results of Operations and Financial Condition.
On April 28, 2017 , Phillips 66 issued a press release announcing the company's financial and operating results for the quarter ended March 31, 2017 . A copy of the press release is furnished as Exhibit 99.1 hereto and incorporated herein by reference. Additional financial and operating information about the quarter is furnished as Exhibit 99.2 hereto and incorporated herein by reference.
The information in this report and the exhibits hereto shall not be treated as filed for purposes of the Securities Exchange Act of 1934, as amended.

Item 9.01 Financial Statements and Exhibits.
(d) Exhibits

				
 	99.1	—	Press release issued by Phillips 66 on April 28, 2017.	
 	99.2	—	Supplemental financial and operating information.	

2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	
			
 	 	PHILLIPS 66	
 	 	 	
 	By:	/s/ Chukwuemeka A. Oyolu	
 	 	Chukwuemeka A. Oyolu
Vice President and Controller	
 	 	 	
Dated:	April 28, 2017	 	

3

EXHIBIT INDEX

	
		
Exhibit	 	
No.	Description	

		
99.1	Press release issued by Phillips 66 on April 28, 2017.	

		
99.2	Supplemental financial and operating information.	

4

Phillips 66 Reports First-Quarter Earnings of $535 Million (Adjusted Earnings of $294 Million)

	
					
 	 	 	 	Exhibit 99.1	

Phillips 66 Reports First -Quarter Earnings of $535 Million
or $1.02 Per Share
Adjusted earnings of $294 million or $0.56 per share

Highlights

•	Delivered strong results in Chemicals	
		
•	Completed major turnarounds in Refining and Chemicals	
		
•	Returned $611 million to shareholders through dividends and share repurchases	
		
•	Completed first full quarter of Freeport LPG Export Terminal operations	
		
•	Construction completed on DAPL/ETCOP joint venture pipelines	
		
•	Commissioned additional crude storage at the Beaumont Terminal	

HOUSTON, April 28, 2017 - Phillips 66 (NYSE: PSX), an energy manufacturing and logistics company, announces first-quarter earnings of $535 million, compared with $163 million in the fourth quarter of 2016. First-quarter earnings included the net benefit of a gain on consolidation of a petroleum coking venture and an impairment taken by an equity affiliate. Excluding these items, adjusted earnings for the first quarter were $294 million, an increase of $211 million from the last quarter.

“We have successfully completed several major turnarounds in Refining and Chemicals,” said Greg Garland, chairman and CEO of Phillips 66. “First-quarter earnings reflect this downtime and also highlight the benefit of a diversified portfolio. Our Chemicals business had solid results on good demand and improved margins. The Freeport LPG Export Terminal is fully operational, and we have several Midstream and Chemicals projects nearing completion. Our safety performance did not meet expectations this quarter. We remain dedicated to operating excellence, executing our Midstream and Chemicals growth strategy, enhancing returns in Refining, and returning cash to shareholders."

“We demonstrated our commitment to shareholder distributions, returning over $600 million in share repurchases and dividends during the quarter. Since our inception in 2012, we have distributed $14 billion to shareholders in the form of dividends, share repurchases and exchanges.”

Page 1

Phillips 66 Reports First-Quarter Earnings of $535 Million (Adjusted Earnings of $294 Million)

Midstream

											
 	Millions of Dollars	
 	Earnings	 	Adjusted Earnings*	
 	Q1 2017		Q4 2016		 	Q1 2017		Q4 2016		
Transportation	$	78		70		 	78		68		
NGL	17		2		 	17		7		
DCP Midstream	17		(37	)	 	17		(6	)	
Midstream net income	112		35		 	112		69		
Less: Noncontrolling interests**	35		36		 	35		36		
Midstream earnings (loss)	$	77		(1	)	 	77		33		
* Excludes special items.	 	 	 	 	 	
**Included in Transportation and NGL businesses.	 	 	 	 	 	

Midstream's first -quarter earnings were $77 million , compared with a loss of $1 million in the fourth quarter of 2016 . Midstream earnings in the fourth quarter of 2016 included a $34 million net charge related to DCP Midstream's restructuring and certain tax adjustments, resulting in adjusted earnings of  $33 million .

Transportation net income for the first quarter of 2017 was $78 million , improved $10 million from fourth-quarter adjusted net income of $68 million. This was primarily due to seasonally lower maintenance costs and higher equity earnings.

NGL first -quarter net income of $17 million was $10 million higher than fourth -quarter adjusted net income of $7 million, mainly due to higher Freeport LPG Export Terminal earnings, reflecting a full quarter of operations.

The company’s equity investment in DCP Midstream generated net income of $17 million in the first quarter, compared with a $6 million adjusted net loss in the prior quarter. DCP benefited from hedging and lower costs, partially offset by reduced volumes.

Chemicals

											
 	Millions of Dollars	
 	Earnings	 	Adjusted Earnings*	
 	Q1 2017		Q4 2016		 	Q1 2017		Q4 2016		
Olefins and Polyolefins (O&P)	$	161		115		 	161		105		
Specialties, Aromatics and Styrenics (SA&S)	25		26		 	45		24		
Other	(5	)	(5	)	 	(5	)	(5	)	
Chemicals	$	181		136		 	201		124		
* Excludes special items.	 	 	 	 	 	

The Chemicals segment reflects Phillips 66's equity investment in Chevron Phillips Chemical Company LLC (CPChem). Chemicals' first -quarter earnings were $181 million , compared with $136 million in the fourth quarter of 2016 . Chemicals' earnings in the first quarter of 2017 included a charge

Page 2

Phillips 66 Reports First-Quarter Earnings of $535 Million (Adjusted Earnings of $294 Million)

of $20 million related to an impairment of a CPChem joint venture, while earnings in the fourth quarter included a net benefit of $12 million for certain tax adjustments.

During the first quarter, CPChem's O&P business contributed $161 million of earnings to the Chemicals segment. The $56 million increase from the prior quarter's adjusted earnings was primarily due to improved margins, higher volumes, and lower operating costs. Global utilization for O&P was 89 percent .

CPChem's SA&S business contributed $45 million of adjusted earnings in the first quarter, an increase of $21 million from the prior quarter due to improved benzene margins and a $10 million gain on the sale of its K-Resin ® SBC business.

Refining

											
 	Millions of Dollars	
 	Earnings	 	Adjusted Earnings*	
 	Q1 2017		Q4 2016		 	Q1 2017		Q4 2016		
Refining	$	259		(38	)	 	(2	)	(95	)	
* Excludes special items.	 	 	 	 	 	

Refining's first-quarter earnings were $259 million, compared with a $38 million loss in the fourth quarter of 2016. Refining's earnings in the first quarter of 2017 included a $261 million gain resulting from the consolidation of the MSLP petroleum coking venture following the resolution of an ownership dispute. Refining's fourth-quarter 2016 earnings included a $57 million net benefit, related to certain tax adjustments that were partially offset by railcar lease termination costs.

Refining's adjusted loss was $2 million in the first quarter. The $93 million improvement from the prior quarter was largely driven by higher realized margins, partially offset by higher costs and lower volumes due to turnaround activity. Although the global market crack spread was comparable to the fourth quarter, realized margins improved to $8.55 per barrel from $6.47 per barrel. This resulted in a capture rate of 70 percent, up from 53 percent in the prior quarter. Realized margins benefited from lower RIN costs and improved clean product differentials, including the absence of negative timing impacts incurred in the fourth quarter.

Phillips 66’s worldwide crude utilization rate was 84 percent and its clean product yield was 85 percent in the first quarter. Pre-tax turnaround costs for the first quarter were $299 million, compared with fourth-quarter costs of $205 million.

Marketing and Specialties

											
 	Millions of Dollars	
 	Earnings	 	Adjusted Earnings*	
 	Q1 2017		Q4 2016		 	Q1 2017		Q4 2016		
Marketing and Other	$	124		158		 	124		114		
Specialties	17		32		 	17		26		
Marketing and Specialties	$	141		190		 	141		140		
* Excludes special items.	 	 	 	 	 	

Page 3

Phillips 66 Reports First-Quarter Earnings of $535 Million (Adjusted Earnings of $294 Million)

Marketing and Specialties (M&S) first -quarter earnings were $141 million , compared with $190 million in the fourth quarter of 2016 . M&S's fourth -quarter earnings included a net benefit of $50 million related to certain tax adjustments.

Earnings for Marketing and Other were $124 million in the first quarter, an increase of $10 million from the prior quarter's adjusted earnings, largely due to higher realized margins. Refined product exports in the first quarter were 144,000 barrels per day (BPD), versus 175,000 BPD in the prior quarter.

Phillips 66’s Specialties businesses generated earnings of $17 million during the first quarter. The $9 million decrease from the prior quarter's adjusted earnings was mainly due to turnaround activity at the Excel Paralubes joint venture.

Corporate and Other

											
 	Millions of Dollars	
 	Earnings	 	Adjusted Earnings*	
 	Q1 2017		Q4 2016		 	Q1 2017		Q4 2016		
Corporate and Other	$	(123	)	(124	)	 	(123	)	(119	)	
* Excludes special items.	 	 	 	 	 	

Corporate and Other’s first -quarter net costs were in line with the prior quarter.

Financial Position, Liquidity and Return of Capital

During the first quarter, cash used in operations was $549 million , including the impact of a seasonal inventory build. Excluding working capital impacts, operating cash flow was $748 million .

During the quarter, Phillips 66 funded $470 million of capital expenditures and investments, and distributed $326 million in dividends and $285 million in share repurchases. Phillips 66 ended the quarter with 516 million shares outstanding.

As of March 31, 2017 , cash and cash equivalents were $1.5 billion , and debt was $10.2 billion , including $2.4 billion of debt at PSXP. The company's consolidated debt-to-capital ratio and net-debt-to-capital ratio were 30 percent and 27 percent , respectively.

Strategic Update

Phillips 66 continues to advance its growth projects in Midstream and Chemicals and invest in return-enhancing projects in Refining.

In Midstream, the Freeport LPG Export Terminal was completed and became fully operational late in the fourth quarter of 2016. The export terminal has a capacity of 150,000 BPD that is being utilized for term and spot cargos. The facility demonstrated its ability to operate at design capacity in the first quarter.

Phillips 66 has a 25 percent interest in joint ventures to develop the 470,000 BPD Dakota Access Pipeline (DAPL) and Energy Transfer Crude Oil Pipeline (ETCOP). Construction on both pipelines has been completed. Commercial operations are expected to begin by June 1.

Page 4

Phillips 66 Reports First-Quarter Earnings of $535 Million (Adjusted Earnings of $294 Million)

The company continues to expand its Beaumont Terminal, which now has 9 million barrels of crude and product storage capacity. An additional 1.2 million barrels of product storage is planned to be in service by mid-2017. The facility is capable of exporting 400,000 BPD of crude or products, and this capacity is being expanded to 600,000 BPD.

Phillips 66 Partners continues to advance its organic growth program. Progress continues on the Bayou Bridge Pipeline segment from Lake Charles to St. James, Louisiana, with commercial operations expected to begin in the fourth quarter of 2017. In addition, the Partnership is developing a new isomerization unit at Phillips 66’s Lake Charles Refinery to increase production of higher octane gasoline blend components. Final project approval is expected in the first half of 2018.

DCP Midstream recently simplified its structure, which better positions it for growth and improved capital allocation. Phillips 66 expects to receive distributions from DCP in 2017. DCP is expanding the Sand Hills Pipeline capacity to 365,000 BPD, with an expected in-service date in the fourth quarter of 2017. DCP is also expanding its DJ Basin footprint with construction of the new 200 million cubic feet per day Mewbourn 3 gas processing plant, which is expected to be in service in the fourth quarter of 2018.

CPChem continues to progress its U.S. Gulf Coast Petrochemicals Project, which consists of a world-scale ethane cracker and two polyethylene derivative units. The polyethylene units are expected to be completed in mid-2017, and the cracker is expected to be complete in the fourth quarter of 2017. This project will increase CPChem's global ethylene and polyethylene capacity by approximately one-third.

In Refining, the company is nearing completion of the project to increase heavy crude processing capability at the Billings Refinery to 100 percent, with start-up expected in June. At both the Bayway and Wood River refineries, the company is modernizing fluid catalytic cracking units to increase clean product yield. Both projects are expected to be complete in the first half of 2018. Phillips 66 is also implementing yield improvement efforts at several other refineries, including Ponca City, where a diesel recovery project is expected to be complete in the second half of 2017.

Page 5

Phillips 66 Reports First-Quarter Earnings of $535 Million (Adjusted Earnings of $294 Million)

Later today, members of Phillips 66 executive management will host a webcast at noon EDT to discuss the company’s first -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	 	 	 	 	
 	Millions of Dollars	
 	2017	 	2016	
 	Q1	 	Q4	Q1	
Midstream	$	77		 	(1	)	65		
Chemicals	181		 	136		156		
Refining	259		 	(38	)	86		
Marketing and Specialties	141		 	190		205		
Corporate and Other	(123	)	 	(124	)	(127	)	
Phillips 66	$	535		 	163		385		
 	 	 	 	 	
Adjusted Earnings	 	 	 	 	
 	Millions of Dollars	
 	2017	 	2016	
 	Q1	 	Q4	Q1	
Midstream	$	77		 	33		40		
Chemicals	201		 	124		156		
Refining	(2	)	 	(95	)	86		
Marketing and Specialties	141		 	140		205		
Corporate and Other	(123	)	 	(119	)	(127	)	
Phillips 66	$	294		 	83		360		

Page 6

Phillips 66 Reports First-Quarter Earnings of $535 Million (Adjusted Earnings of $294 Million)

About Phillips 66

Phillips 66 is a diversified energy manufacturing and logistics company. With a portfolio of Midstream, Chemicals, Refining, and Marketing and Specialties businesses, the company processes, transports, stores and markets fuels and products globally. Phillips 66 Partners, the company's master limited partnership, is an integral asset in the portfolio. Headquartered in Houston, the company has 14,600 employees committed to safety and operating excellence. Phillips 66 had $51 billion of assets as of March 31, 2017 . For more information, visit www.phillips66.com or follow us on Twitter @Phillips66Co .

- # # # -

	
			
CONTACTS	 	 	
Jeff Dietert (investors)	Rosy Zuklic (investors)	C.W. Mallon (investors)	
832-765-2297	832-765-2297	832-765-2297	
jeff.dietert@p66.com	rosy.zuklic@p66.com	c.w.mallon@p66.com	
 	 	 	
Dennis Nuss (media)	 	 	
832-765-1850	 	 	
dennis.h.nuss@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,” “intends,” “objectives,” “projects,” “strategies” and similar expressions are used to identify such forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements relating to Phillips 66’s operations (including joint venture operations) are based on management’s expectations, estimates and projections about the company, its interests and the energy industry in general on the date this news release was prepared. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Factors that could cause actual results or events to differ materially from those described in the forward-looking statements include fluctuations in 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; 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; limited access to capital or significantly higher cost of capital related to illiquidity or uncertainty in the domestic or international financial markets; and other economic, business, competitive and/or regulatory factors affecting Phillips 66’s businesses generally as set forth in our filings with the Securities and Exchange Commission. Phillips 66 is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

Use of Non-GAAP Financial Information -- This news release includes the terms adjusted earnings, adjusted earnings per share, and adjusted net income. These are non-GAAP financial measures that are included to help facilitate comparisons of company operating performance across periods and with peer companies, by excluding items that don't reflect the core operating results of our businesses in the current period.

References in the release to earnings refer to net income attributable to Phillips 66.

Page 7

Phillips 66 Reports First-Quarter Earnings of $535 Million (Adjusted Earnings of $294 Million)

	
									
 	 Millions of Dollars	
 	 Except as Indicated	
 	2017	 	2016	
 	Q1	 	Q4	Q1	
Reconciliation of Earnings to Adjusted Earnings	 	 	 	 	
 	 	 	 	 	
Consolidated Earnings	$	535		 	163		385		
Pre-tax adjustments:	 	 	 		
Impairments by equity affiliates	33		 	—		6		
Pending claims and settlements	—		 	—		(45	)	
Equity affiliate ownership restructuring	—		 	33		—		
Railcar lease residual value deficiencies and related costs	—		 	40		—		
Gain on consolidation of business	(423	)	 	—		—		
Certain tax impacts*	—		 	(32	)	—		
Tax impact of adjustments**	149			(27	)	14		
Other tax impacts	—		 	(94	)	—		
Adjusted earnings	$	294		 	83		360		
 	 	 	 		
Earnings per share of common stock (dollars)	$	1.02		 	0.31		0.72		
Adjusted earnings per share of common stock (dollars) †	$	0.56		 	0.16		0.67		
 	 	 	 		
Midstream Earnings	$	77		 	(1	)	65		
Pre-tax adjustments:	 	 	 		
Pending claims and settlements	—		 	—		(45	)	
Impairments by equity affiliates	—		 	—		6		
Equity affiliate ownership restructuring	—		 	33		—		
Tax impact of adjustments**	—			(12	)	14		
Other tax impacts	—		 	13		—		
Adjusted earnings	$	77		 	33		40		
 	 	 	 	 	
Chemicals Earnings	$	181		 	136		156		
Pre-tax adjustments:	 	 	 		
Impairments by equity affiliates	33		 	—		—		
Tax impact of adjustments**	(13	)		—		—		
Other tax impacts	—		 	(12	)	—		
Adjusted earnings	$	201		 	124		156		
 	 	 	 		
Refining Earnings	$	259		 	(38	)	86		
Pre-tax adjustments:	 	 	 		
Certain tax impacts*	—		 	(32	)	—		
Gain on consolidation of business	(423	)	 	—		—		
Railcar lease residual value deficiencies and related costs	—		 	40		—		
Tax impact of adjustments**	162			(15	)	—		
Other tax impacts	—		 	(50	)	—		
Adjusted earnings	$	(2	)	 	(95	)	86		
 	 	 	 		
Marketing and Specialties Earnings	$	141		 	190		205		
Other tax impacts	—		 	(50	)	—		
Adjusted earnings	$	141		 	140		205		

Page 8

Phillips 66 Reports First-Quarter Earnings of $535 Million (Adjusted Earnings of $294 Million)

	
									
 	 Millions of Dollars	
 	 Except as Indicated	
 	2017	 	2016	
 	Q1	 	Q4	Q1	
Reconciliation of Earnings to Adjusted Earnings (cont.)	 	 	 	 	
 	 	 	 	 	
Corporate and Other Earnings (loss)	$	(123	)	 	(124	)	(127	)	
Other tax impacts	—			5		—		
Adjusted earnings (loss)	$	(123	)	 	(119	)	(127	)	
*Pre-tax impact only. Tax-only adjusting items included in "other tax impacts."

 **We generally tax effect taxable U.S.-based special items using a combined federal and state statutory income tax rate of approximately 38 percent. 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.

†Weighted-average diluted shares outstanding and income allocated to participating securities, if applicable, in the adjusted earnings per share calculation are the same as those used in the GAAP diluted earnings per share calculation.

	

	
				
 	Millions of Dollars	
 	Q1 2017	
Debt-to-Capital Ratio	 	
 	 	
Total Debt	$	10,210		
Total Equity	23,725		
Debt-to-Capital Ratio	30	%	
 	 	
Total Cash	$	1,513		
Net-Debt-to-Capital Ratio	27	%	

	

	

	

Page 9

	
																
 	 	 	 	 	 	 	 	 	 	 	 	 	Exhibit 99.2	
Phillips 66 Earnings Release Supplemental Data	

	
																						
CONSOLIDATED INCOME STATEMENT	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Millions of Dollars	
 	 	 	 	2017	 	2016	
 	 	 	 	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*	22,894		 	 	 	22,894		 	17,409		21,849		21,624		23,397		84,279		
Equity in earnings of affiliates	365		 	 	 	365		 	333		435		391		255		1,414		
Net gain on dispositions	1		 	 	 	1		 	—		6		3		1		10		
Other income	452		 	 	 	452		 	18		17		24		15		74		
Total Revenues and Other Income	23,712		 	 	 	23,712		 	17,760		22,307		22,042		23,668		85,777		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Costs and Expenses	 	 	 	 	 	 	 	 	 	 	 	
Purchased crude oil and products	17,679		 	 	 	17,679		 	11,930		16,198		15,961		18,379		62,468		
Operating expenses	1,270		 	 	 	1,270		 	1,023		994		1,061		1,197		4,275		
Selling, general and administrative expenses	384		 	 	 	384		 	386		421		411		420		1,638		
Depreciation and amortization	315		 	 	 	315		 	280		290		293		305		1,168		
Impairments	2		 	 	 	2		 	—		2		2		1		5		
Taxes other than income taxes*	3,156		 	 	 	3,156		 	3,461		3,594		3,424		3,209		13,688		
Accretion on discounted liabilities	5		 	 	 	5		 	5		5		5		6		21		
Interest and debt expense	105		 	 	 	105		 	86		83		81		88		338		
Foreign currency transaction gains	(1	)	 	 	 	(1	)	 	(7	)	—		(9	)	1		(15	)	
Total Costs and Expenses	22,915		 	 	 	22,915		 	17,164		21,587		21,229		23,606		83,586		
Income before income taxes	797		 	 	 	797		 	596		720		813		62		2,191		
Provision for income taxes	234		 	 	 	234		 	198		204		277		(132	)	547		
Net Income	563		 	 	 	563		 	398		516		536		194		1,644		
Less: net income attributable to noncontrolling interests	28		 	 	 	28		 	13		20		25		31		89		
Net Income Attributable to Phillips 66	535		 	 	 	535		 	385		496		511		163		1,555		
* Includes excise taxes on petroleum products sales:	3,036		 	 	 	3,036		 	3,360		3,508		3,357		3,156		13,381		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income Attributable to Phillips 66 Per Share of Common Stock (dollars)	 	 	 	 	 	 	 	 	 	 	 	
  Basic	 	 	 	1.02		 	 	 	1.02		 	0.72		0.94		0.97		0.31		2.94		
  Diluted	 	 	 	1.02		 	 	 	1.02		 	0.72		0.93		0.96		0.31		2.92		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Average Common Shares Outstanding (in thousands)	 	 	 	 	 	 	 	 	 	 	 	
  Basic	 	 	 	521,647		 	 	 	521,647		 	531,739		528,247		525,991		524,200		527,531		
  Diluted	 	 	 	524,520		 	 	 	524,520		 	534,709		531,060		528,798		526,279		530,066		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
SUMMARY OF INCOME (LOSS) ATTRIBUTABLE TO PHILLIPS 66 BY SEGMENT	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Millions of Dollars	
 	 	 	 	2017	 	2016	
 	 	 	 	1st Qtr		2nd Qtr	3rd Qtr	4th Qtr	YTD		 	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Midstream	77		 	 	 	77		 	65		39		75		(1	)	178		
Chemicals	181		 	 	 	181		 	156		190		101		136		583		
Refining	259		 	 	 	259		 	86		149		177		(38	)	374		
Marketing and Specialties	141		 	 	 	141		 	205		229		267		190		891		
Corporate and Other	(123	)	 	 	 	(123	)	 	(127	)	(111	)	(109	)	(124	)	(471	)	
Consolidated	535		 	 	 	535		 	385		496		511		163		1,555		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
SUMMARY OF INCOME (LOSS) BEFORE TAXES BY SEGMENT	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Millions of Dollars	
 	 	 	 	2017	 	2016	
 	 	 	 	1st Qtr		2nd Qtr	3rd Qtr	4th Qtr	YTD		 	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Midstream	153		 	 	 	153		 	121		84		141		56		402		
Chemicals	251		 	 	 	251		 	228		264		176		171		839		
Refining	390		 	 	 	390		 	127		207		274		(172	)	436		
Marketing and Specialties	208		 	 	 	208		 	315		345		400		201		1,261		
Corporate and Other	(205	)	 	 	 	(205	)	 	(195	)	(180	)	(178	)	(194	)	(747	)	
Consolidated	797		 	 	 	797		 	596		720		813		62		2,191		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
EFFECTIVE TAX RATES	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	2017	 	2016	
 	 	 	 	1st Qtr		2nd Qtr	3rd Qtr	4th Qtr	YTD		 	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Midstream	26.8	%	 	 	 	26.8	%	 	33.9	%	26.2	%	27.0	%	37.5	 %	30.3	%	
Chemicals	27.9	%	 	 	 	27.9	%	 	31.6	%	28.0	%	42.6	%	20.5	 %	30.5	%	
Refining	33.6	%	 	 	 	33.6	%	 	32.3	%	28.0	%	35.4	%	77.9	 %	14.2	%	
Marketing and Specialties	32.2	%	 	 	 	32.2	%	 	34.9	%	33.6	%	33.3	%	5.5	 %	29.3	%	
Corporate and Other	36.6	%	 	 	 	36.6	%	 	33.8	%	36.7	%	37.1	%	33.5	 %	35.2	%	
Consolidated	29.4	%	 	 	 	29.4	%	 	33.2	%	28.3	%	34.1	%	(212.9	)%	25.0	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
SUMMARY OF ADJUSTED NET INCOME (LOSS) ATTRIBUTABLE TO PHILLIPS 66 BY SEGMENT	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Millions of Dollars	
 	 	 	 	2017	 	2016	
 	 	 	 	1st Qtr		2nd Qtr	3rd Qtr	4th Qtr	YTD		 	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		
Midstream	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Transportation	56		 	 	 	56		 	72		65		63		44		244		
NGL	4		 	 	 	4		 	(11	)	(17	)	3		(5	)	(30	)	
DCP Midstream	17		 	 	 	17		 	(21	)	(9	)	9		(6	)	(27	)	
Total Midstream	77		 	 	 	77		 	40		39		75		33		187		
Chemicals	201		 	 	 	201		 	156		190		190		124		660		
Refining	 	 	 	 	 	 	 	 	 	 	 	
Atlantic Basin/Europe	(50	)	 	 	 	(50	)	 	4		35		5		98		142		
Gulf Coast	67		 	 	 	67		 	68		5		(13	)	(51	)	9		
Central Corridor	62		 	 	 	62		 	20		55		142		19		236		
West Coast	(81	)	 	 	 	(81	)	 	(6	)	57		—		(161	)	(110	)	
Total Refining	(2	)	 	 	 	(2	)	 	86		152		134		(95	)	277		
Marketing and Specialties	 	 	 	 	 	 	 	 	 	 	 	
Marketing and Other	124		 	 	 	124		 	162		199		228		114		703		
Specialties	17		 	 	 	17		 	43		30		39		26		138		
Total Marketing and Specialties	141		 	 	 	141		 	205		229		267		140		841		
Corporate and Other	(123	)	 	 	 	(123	)	 	(127	)	(111	)	(110	)	(119	)	(467	)	
Consolidated	294		 	 	 	294		 	360		499		556		83		1,498		

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SPECIAL ITEMS INCLUDED IN NET INCOME ATTRIBUTABLE TO PHILLIPS 66	
(AFTER-TAX)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Millions of Dollars	
 	 	 	 	2017	 	2016	
 	 	 	 	1st Qtr		2nd Qtr	3rd Qtr	4th Qtr	YTD		 	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		
Midstream	 	 	 	 	 	 	 	 	 	 	 	
Pending claims and settlements	—		 	 	 	—		 	29		—		—		—		29		
Impairments by equity affiliates	—		 	 	 	—		 	(4	)	—		—		—		(4	)	
Certain tax impacts	—		 	 	 	—		 	—		—		—		(13	)	(13	)	
Equity affiliate ownership restructuring	—		 	 	 	—		 	—		—		—		(21	)	(21	)	
Total Midstream	—		 	 	 	—		 	25		—		—		(34	)	(9	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Chemicals	 	 	 	 	 	 	 	 	 	 	 	
Impairments by equity affiliates	(20	)	 	 	 	(20	)	 	—		—		(89	)	—		(89	)	
Certain tax impacts	—		 	 	 	—		 	—		—		—		12		12		
Total Chemicals	(20	)	 	 	 	(20	)	 	—		—		(89	)	12		(77	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Refining	 	 	 	 	 	 	 	 	 	 	 	
Pending claims and settlements	—		 	 	 	—		 	—		—		43		—		43		
Certain tax impacts	—		 	 	 	—		 	—		16		—		82		98		
Gain on consolidation of business	261		 	 	 	261		 	—		—		—		—		—		
Recognition of deferred logistics commitments	—		 	 	 	—		 	—		(19	)	—		—		(19	)	
Railcar lease residual value deficiencies and related costs	—		 	 	 	—		 	—		—		—		(25	)	(25	)	
Total Refining	261		 	 	 	261		 	—		(3	)	43		57		97		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Marketing and Specialties	 	 	 	 	 	 	 	 	 	 	 	
Certain tax impacts	—		 	 	 	—		 	—		—		—		50		50		
Total Marketing and Specialties	—		 	 	 	—		 	—		—		—		50		50		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Corporate and Other	 	 	 	 	 	 	 	 	 	 	 	
Pending claims and settlements	—		 	 	 	—		 	—		—		1		—		1		
Certain tax impacts	—		 	 	 	—		 	—		—		—		(5	)	(5	)	
Total Corporate and Other	—		 	 	 	—		 	—		—		1		(5	)	(4	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Phillips 66	241		 	 	 	241		 	25		(3	)	(45	)	80		57		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
By Business Lines/Regions	 	 	 	 	 	 	 	 	 	 	 	
Midstream	 	 	 	 	 	 	 	 	 	 	 	
Transportation	—		 	 	 	—		 	—		—		—		2		2		
NGL	—		 	 	 	—		 	—		—		—		(5	)	(5	)	
DCP Midstream	—		 	 	 	—		 	25		—		—		(31	)	(6	)	
Total Midstream	—		 	 	 	—		 	25		—		—		(34	)	(9	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Refining	 	 	 	 	 	 	 	 	 	 	 	
Atlantic Basin/Europe	—		 	 	 	—		 	—		(3	)	—		65		62		
Gulf Coast	261		 	 	 	261		 	—		—		43		—		43		
Central Corridor	—		 	 	 	—		 	—		—		—		(2	)	(2	)	
West Coast	—		 	 	 	—		 	—		—		—		(6	)	(6	)	
Total Refining	261		 	 	 	261		 	—		(3	)	43		57		97		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Marketing and Specialties	 	 	 	 	 	 	 	 	 	 	 	
Marketing and Other	—		 	 	 	—		 	—		—		—		44		44		
Specialties	—		 	 	 	—		 	—		—		—		6		6		
Total Marketing and Specialties	—		 	 	 	—		 	—		—		—		50		50		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
SPECIAL ITEMS INCLUDED IN INCOME BEFORE TAXES	
(PRETAX)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Millions of Dollars	
 	 	 	 	2017	 	2016	
 	 	 	 	1st Qtr		2nd Qtr	3rd Qtr	4th Qtr	YTD		 	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		
Midstream	 	 	 	 	 	 	 	 	 	 	 	
Pending claims and settlements	—		 	 	 	—		 	45		—		—		—		45		
Impairments by equity affiliates	—		 	 	 	—		 	(6	)	—		—		—		(6	)	
Equity affiliate ownership restructuring	—		 	 	 	—		 	—		—		—		(33	)	(33	)	
Total Midstream	—		 	 	 	—		 	39		—		—		(33	)	6		
 	 	 	 	 	 	 	 	 	 	 	 	
Chemicals	 	 	 	 	 	 	 	 	 	 	 	
Impairments by equity affiliates	(33	)	 	 	 	(33	)	 	—		—		(89	)	—		(89	)	
Total Chemicals	(33	)	 	 	 	(33	)	 	—		—		(89	)	—		(89	)	
 	 	 	 	 	 	 	 	 	 	 	 	
Refining	 	 	 	 	 	 	 	 	 	 	 	
Pending claims and settlements	—		 	 	 	—		 	—		—		70		—		70		
Certain tax impacts	—		 	 	 	—		 	—		—		—		32		32		
Gain on consolidation of business	423		 	 	 	423		 	—		—		—		—		—		
Recognition of deferred logistics commitments	—		 	 	 	—		 	—		(30	)	—		—		(30	)	
Railcar lease residual value deficiencies and related costs	—		 	 	 	—		 	—		—		—		(40	)	(40	)	
Total Refining	423		 	 	 	423		 	—		(30	)	70		(8	)	32		
 	 	 	 	 	 	 	 	 	 	 	 	
Marketing and Specialties	—		 	 	 	—		 	—		—		—		—		—		
 	 	 	 	 	 	 	 	 	 	 	 	
Corporate and Other	 	 	 	 	 	 	 	 	 	 	 	
Pending claims and settlements	—		 	 	 	—		 	—		—		2		—		2		
Total Corporate and Other	—		 	 	 	—		 	—		—		2		—		2		
 	 	 	 	 	 	 	 	 	 	 	 	
Total Phillips 66	390		 	 	 	390		 	39		(30	)	(17	)	(41	)	(49	)	
 	 	 	 	 	 	 	 	 	 	 	 	
By Business Lines/Regions	 	 	 	 	 	 	 	 	 	 	 	
Midstream	 	 	 	 	 	 	 	 	 	 	 	
Transportation	—		 	 	 	—		 	—		—		—		—		—		
NGL	—		 	 	 	—		 	—		—		—		—		—		
DCP Midstream	—		 	 	 	—		 	39		—		—		(33	)	6		
Total Midstream	—		 	 	 	—		 	39		—		—		(33	)	6		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Refining	 	 	 	 	 	 	 	 	 	 	 	
Atlantic Basin/Europe	—		 	 	 	—		 	—		(30	)	—		27		(3	)	
Gulf Coast	423		 	 	 	423		 	—		—		70		(16	)	54		
Central Corridor	—		 	 	 	—		 	—		—		—		(11	)	(11	)	
West Coast	—		 	 	 	—		 	—		—		—		(8	)	(8	)	
Total Refining	423		 	 	 	423		 	—		(30	)	70		(8	)	32		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Marketing and Specialties	 	 	 	 	 	 	 	 	 	 	 	
Marketing and Other	—		 	 	 	—		 	—		—		—		—		—		
Specialties	—		 	 	 	—		 	—		—		—		—		—		
Total Marketing and Specialties	—		 	 	 	—		 	—		—		—		—		—		

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CASH FLOW INFORMATION	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Millions of Dollars	
 	 	 	 	2017	 	2016	
 	 	 	 	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	563		 	 	 	563		 	398		516		536		194		1,644		
Depreciation and amortization	315		 	 	 	315		 	280		290		293		305		1,168		
Impairments	2		 	 	 	2		 	—		2		2		1		5		
Accretion on discounted liabilities	5		 	 	 	5		 	5		5		5		6		21		
Deferred taxes	493		 	 	 	493		 	154		37		276		145		612		
Undistributed equity earnings	(212	)	 	 	 	(212	)	 	(166	)	(349	)	(257	)	(43	)	(815	)	
Net gain on dispositions	(1	)	 	 	 	(1	)	 	—		(6	)	(3	)	(1	)	(10	)	
Gain on consolidation of business	(423	)	 	 	 	(423	)	 	—		—		—		—		—		
Other	6		 	 	 	6		 	51		65		(308	)	29		(163	)	
Net working capital changes	(1,297	)	 	 	 	(1,297	)	 	(464	)	595		339		31		501		
Net Cash Provided by (Used in) Operating Activities	(549	)	 	 	 	(549	)	 	258		1,155		883		667		2,963		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash Flows From Investing Activities	 	 	 	 	 	 	 	 	 	 	 	
Capital expenditures and investments	(470	)	 	 	 	(470	)	 	(750	)	(620	)	(661	)	(813	)	(2,844	)	
Proceeds from asset dispositions*	9		 	 	 	9		 	5		10		144		(3	)	156		
Advances/loans—related parties	—		 	 	 	—		 	(75	)	(107	)	(84	)	(166	)	(432	)	
Collection of advances/loans—related parties	325		 	 	 	325		 	—		—		107		1		108		
Restricted cash received from consolidation of business	318		 	 	 	318		 	—		—		—		—		—		
Other	(24	)	 	 	 	(24	)	 	(42	)	(33	)	(57	)	(14	)	(146	)	
Net Cash Provided by (Used in) Investing Activities	158		 	 	 	158		 	(862	)	(750	)	(551	)	(995	)	(3,158	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash Flows From Financing Activities	 	 	 	 	 	 	 	 	 	 	 	
Issuance of debt	712		 	 	 	712		 	50		100		250		1,690		2,090		
Repayment of debt	(773	)	 	 	 	(773	)	 	(100	)	(66	)	(252	)	(415	)	(833	)	
Issuance of common stock**	4		 	 	 	4		 	4		5		5		20		34		
Repurchase of common stock	(285	)	 	 	 	(285	)	 	(391	)	(242	)	(179	)	(230	)	(1,042	)	
Dividends paid on common stock	(326	)	 	 	 	(326	)	 	(296	)	(329	)	(329	)	(328	)	(1,282	)	
Distributions to noncontrolling interests	(24	)	 	 	 	(24	)	 	(11	)	(17	)	(17	)	(30	)	(75	)	
Net proceeds from issuance of Phillips 66 Partners LP common units	40		 	 	 	40		 	—		669		303		—		972		
Other**	(34	)	 	 	 	(34	)	 	(39	)	12		(11	)	(4	)	(42	)	
Net Cash Used in Financing Activities	(686	)	 	 	 	(686	)	 	(783	)	132		(230	)	703		(178	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash	2		 	 	 	2		 	36		(28	)	3		(1	)	10		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Change in Cash, Cash Equivalents and Restricted Cash	(1,075	)	 	 	 	(1,075	)	 	(1,351	)	509		105		374		(363	)	
Cash, cash equivalents and restricted cash at beginning of period	2,711		 	 	 	2,711		 	3,074		1,723		2,232		2,337		3,074		
Cash, Cash Equivalents and Restricted Cash at End of Period	1,636		 	 	 	1,636		 	1,723		2,232		2,337		2,711		2,711		
  * Includes return of investments in equity affiliates and working capital true-ups on dispositions.	 	 	 	
** Prior periods recasted to conform to the current year presentation.	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
CAPITAL PROGRAM	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Millions of Dollars	
 	 	 	 	2017	 	2016	
 	 	 	 	1st Qtr		2nd Qtr	3rd Qtr	4th Qtr	YTD		 	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		
Consolidated Capital Expenditures and Investments	 	 	 	 	 	 	 	 	 	 	 	
Midstream	182		 	 	 	182		 	446		284		315		408		1,453		
Chemicals	—		 	 	 	—		 	—		—		—		—		—		
Refining	259		 	 	 	259		 	261		277		289		322		1,149		
Marketing and Specialties	15		 	 	 	15		 	15		22		26		35		98		
Corporate and Other	14		 	 	 	14		 	28		37		31		48		144		
Total Consolidated	470		 	 	 	470		 	750		620		661		813		2,844		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Proportional Share of Select Equity Affiliates Capital Expenditures and Investments*	 	 	 	 	 	 	 	 	 	 	 	
DCP Midstream (Midstream)	44		 	 	 	44		 	35		20		21		23		99		
CPChem (Chemicals)	256		 	 	 	256		 	247		294		205		241		987		
WRB Refining (Refining)	42		 	 	 	42		 	37		43		36		48		164		
Select Equity Affiliates	342		 	 	 	342		 	319		357		262		312		1,250		
	 	 	 	 	 	 	 	 	 	 	 	
Total Capital Program*	 	 	 	 	 	 	 	 	 	 	 	
Midstream	226		 	 	 	226		 	481		304		336		431		1,552		
Chemicals	256		 	 	 	256		 	247		294		205		241		987		
Refining	301		 	 	 	301		 	298		320		325		370		1,313		
Marketing and Specialties	15		 	 	 	15		 	15		22		26		35		98		
Corporate and Other	14		 	 	 	14		 	28		37		31		48		144		
Total Capital Program	812		 	 	 	812		 	1,069		977		923		1,125		4,094		
 * Includes 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.	 	

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MIDSTREAM	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	2017	 	2016	
 	 	 	 	1st Qtr		2nd Qtr	3rd Qtr	4th Qtr	YTD		 	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		
Midstream Net Income (Loss) Attributable to Phillips 66 ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Transportation	56		 	 	 	56		 	72		65		63		46		246		
NGL	4		 	 	 	4		 	(11	)	(17	)	3		(10	)	(35	)	
DCP Midstream	17		 	 	 	17		 	4		(9	)	9		(37	)	(33	)	
Midstream Net Income (Loss) Attributable to Phillips 66	77		 	 	 	77		 	65		39		75		(1	)	178		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Midstream Income (Loss) before Income Taxes ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Transportation	107		 	 	 	107		 	123		116		112		90		441		
NGL	19		 	 	 	19		 	(9	)	(18	)	15		7		(5	)	
DCP Midstream	27		 	 	 	27		 	7		(14	)	14		(41	)	(34	)	
Midstream Income (Loss) before Income Taxes	153		 	 	 	153		 	121		84		141		56		402		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Midstream Adjusted EBITDA ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Transportation and NGL	149		 	 	 	149		 	144		120		148		115		527		
DCP Midstream	71		 	 	 	71		 	44		64		97		69		274		
Midstream Adjusted EBITDA	220		 	 	 	220		 	188		184		245		184		801		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation and Amortization ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Transportation	33		 	 	 	33		 	30		32		36		33		131		
NGL	35		 	 	 	35		 	18		18		20		28		84		
DCP Midstream	—		 	 	 	—		 	—		—		—		—		—		
Total	68		 	 	 	68		 	48		50		56		61		215		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating and SG&A Expense ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Transportation	161		 	 	 	161		 	122		136		145		153		556		
NGL	57		 	 	 	57		 	45		45		38		49		177		
DCP Midstream	—		 	 	 	—		 	(1	)	—		(1	)	(1	)	(3	)	
Total	218		 	 	 	218		 	166		181		182		201		730		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Transportation Volumes (MB/D)	 	 	 	 	 	 	 	 	 	 	 	
Pipelines*	3,469		 	 	 	3,469		 	3,488		3,638		3,495		3,424		3,511		
Terminals**	2,395		 	 	 	2,395		 	2,209		2,442		2,417		2,619		2,422		
   * Pipelines represent the sum of volumes transported through each separately tariffed pipeline segment,	 	 	 	 	 	 	 	
      including our share of equity volumes in Yellowstone and Lake Charles pipelines.	 	 	 	 	 	 	 	
** Terminals include Bayway and Ferndale crude oil rail rack volumes.	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
PSX Other Volumes	 	 	 	 	 	 	 	 	 	 	 	
NGL Fractionated (MB/D)*	175		 	 	 	175		 	161		174		173		172		170		
* Excludes DCP Midstream.	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
100% DCP Midstream Results	 	 	 	 	 	 	 	 	 	 	 	
Net Income Attributable, excludes parent company income tax related to DCP's earnings ($ Millions)*	53		 	 	 	53		 	24		(29	)	25		(83	)	(63	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation and Amortization ($ Millions)	94		 	 	 	94		 	95		95		94		94		378		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating and SG&A Expense ($ Millions)	240		 	 	 	240		 	245		241		204		281		971		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Expense ($ Millions)*	76		 	 	 	76		 	79		79		78		86		322		
* Net of interest income.	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Capital Expenditures and Investments ($ Millions)	87		 	 	 	87		 	69		41		41		46		197		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Selected DCP Operating Statistics	 	 	 	 	 	 	 	 	 	 	 	
Total Throughput (TBtu/D)	5.7		 	 	 	5.7		 	6.9		6.7		6.4		6.1		7.1		
NGL Production (MB/D)	341		 	 	 	341		 	382		416		403		371		393		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted Average NGL Price*	 	 	 	 	 	 	 	 	 	 	 	 	
DCP Midstream ($/BBL)	25.31		 	 	 	25.31		 	15.34		19.26		18.98		23.19		19.19		
DCP Midstream ($/gal)	0.60		 	 	 	0.60		 	0.37		0.46		0.45		0.55		0.46		
* Based on index prices from the Mont Belvieu and Conway market hubs that are weighted by NGL component and location mix.	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	
MLP Distributions ($ Millions)*	 	 	 	 	 	 	 	 	 	 	 	
GP Distribution from PSXP to Phillips 66	32		 	 	 	32		 	16		21		26		28		91		
LP Distribution from PSXP to Phillips 66	37		 	 	 	37		 	28		30		34		36		128		
GP Distribution from DCP Midstream, LP to DCP Midstream***	**		 	 	 	—		 	31		31		31		31		124		
LP Distribution from DCP Midstream, LP to DCP Midstream***	**		 	 	 	—		 	19		19		19		19		76		
    * Cash distributions declared attributable to general partner interest, common unit ownership and incentive	 	 	 	 	 	 	 	
       distribution rights. These distributions are eliminated in the respective sponsors consolidated financial statements.	 	 	 	 	 	 	 	
  ** Pending DCP Midstream release.	 	 	 	 	 	 	 	
*** Represents 100 percent of DCP Midstream's distributions from DCP Midstream, LP (formerly DCP Midstream Partners, LP).	 	 	 	 	 	 	 	

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CHEMICALS	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	2017	 	2016	
 	 	 	 	1st Qtr		2nd Qtr	3rd Qtr	4th Qtr	YTD		 	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Chemicals Net Income Attributable to Phillips 66 ($ Millions)	181		 	 	 	181		 	156		190		101		136		583		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Chemicals Adjusted EBITDA ($ Millions)	374		 	 	 	374		 	319		363		356		260		1,298		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
100% CPChem Results	 	 	 	 	 	 	 	 	 	 	 	
Net Income (Loss), excludes parent company income tax related to CPChem's earnings ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Olefins and Polyolefins	461		 	 	 	461		 	422		478		460		290		1,650		
Specialties, Aromatics and Styrenics	53		 	 	 	53		 	49		64		(90	)	63		86		
Corporate and Other	(11	)	 	 	 	(11	)	 	(12	)	(13	)	(15	)	(9	)	(49	)	
Total	 	 	 	503		 	 	 	503		 	459		529		355		344		1,687		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (Loss) before Income Taxes ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Olefins and Polyolefins	470		 	 	 	470		 	432		493		471		291		1,687		
Specialties, Aromatics and Styrenics	62		 	 	 	62		 	56		72		(86	)	71		113		
Corporate and Other	(11	)	 	 	 	(11	)	 	(12	)	(13	)	(13	)	(9	)	(47	)	
Total	 	 	 	521		 	 	 	521		 	476		552		372		353		1,753		
	 	 	 	 	 	 	 	 	 	 	 	
Depreciation and Amortization ($ Millions)	73		 	 	 	73		 	77		77		79		83		316		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Expense ($ Millions)*	(1	)	 	 	 	(1	)	 	—		—		(1	)	—		(1	)	
* Net of interest income.	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Investing Cash Flows ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Capital Expenditures and Investments	512		 	 	 	512		 	493		588		411		482		1,974		
Advances to Equity Companies	6		 	 	 	6		 	14		23		10		6		53		
Advance Repayments from Equity Companies	(7	)	 	 	 	(7	)	 	—		(6	)	(26	)	(31	)	(63	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Externally Marketed Sales Volumes (MM Lbs)*	 	 	 	 	 	 	 	 	 	 	 	
Olefins and Polyolefins	4,016		 	 	 	4,016		 	4,002		4,139		4,155		3,715		16,011		
Specialties, Aromatics and Styrenics	1,206		 	 	 	1,206		 	1,254		1,212		1,284		1,161		4,911		
Total	 	 	 	5,222		 	 	 	5,222		 	5,256		5,351		5,439		4,876		20,922		
* Represents 100 percent of CPChem's outside sales of produced petrochemical products, as well as commission sales from equity affiliates.	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Olefins and Polyolefins Capacity Utilization (%)*	89	%	 	 	 	89	%	 	94	%	92	%	93	%	86	%	91	%	
* Revised to exclude polyethylene pipe operations.	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Market Indicators*	 	 	 	 	 	 	 	 	 	 	 	
U.S. Industry Prices	 	 	 	 	 	 	 	 	 	 	 	
Ethylene, Average Acquisition Contract (cents/lb)	31.87		 	 	 	31.87		 	23.95		27.99		33.11		30.11		28.79		
HDPE Blow Molding, Domestic Spot (cents/lb)	55.83		 	 	 	55.83		 	47.42		52.58		54.17		54.67		52.21		
 	 	 	 	 	 	 	 	 	 	 	 	
U.S. Industry Costs	 	 	 	 	 	 	 	 	 	 	 	
Ethylene, Cash Cost Weighted Average Feed (cents/lb)	11.80		 	 	 	11.80		 	9.80		12.04		10.59		14.31		11.69		
HDPE Blow Molding, Total Cash Cost (cents/lb)	44.90		 	 	 	44.90		 	36.50		40.60		45.95		42.96		41.50		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Ethylene to High-Density Polyethylene Chain Cash Margin (cents/lb)	31.00		 	 	 	31.00		 	25.07		27.93		30.74		27.51		27.81		
* Source: IHS, Inc.	 	 	 	 	 	 	 	 	 	 	 	

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REFINING	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	2017	 	2016	
 	 	 	 	1st Qtr		2nd Qtr	3rd Qtr	4th Qtr	YTD		 	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		
Refining Net Income (Loss) Attributable to Phillips 66 ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Atlantic Basin/Europe	(50	)	 	 	 	(50	)	 	4		32		5		163		204		
Gulf Coast	328		 	 	 	328		 	68		5		30		(51	)	52		
Central Corridor	62		 	 	 	62		 	20		55		142		17		234		
West Coast	(81	)	 	 	 	(81	)	 	(6	)	57		—		(167	)	(116	)	
Refining Net Income (Loss) Attributable to Phillips 66	259		 	 	 	259		 	86		149		177		(38	)	374		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Refining Income (Loss) before Income Taxes ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Atlantic Basin/Europe	(98	)	 	 	 	(98	)	 	3		14		4		166		187		
Gulf Coast	521		 	 	 	521		 	107		7		51		(95	)	70		
Central Corridor	97		 	 	 	97		 	32		96		220		19		367		
West Coast	(130	)	 	 	 	(130	)	 	(15	)	90		(1	)	(262	)	(188	)	
Refining Income (Loss) before Income Taxes	390		 	 	 	390		 	127		207		274		(172	)	436		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Refining Adjusted EBITDA ($ Millions)	231		 	 	 	231		 	376		497		457		100		1,430		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Realized Refining Margins ($/BBL)*	 	 	 	 	 	 	 	 	 	 	 	
Atlantic Basin/Europe	6.29		 	 	 	6.29		 	5.79		6.15		5.04		8.19		6.26		
Gulf Coast	8.03		 	 	 	8.03		 	6.76		5.18		5.47		4.61		5.49		
Central Corridor	10.54		 	 	 	10.54		 	7.41		8.65		11.18		7.50		8.70		
West Coast	9.95		 	 	 	9.95		 	9.70		10.94		9.07		6.30		9.15		
Worldwide	8.55		 	 	 	8.55		 	7.11		7.13		7.23		6.47		6.99		
* Based on total processed inputs and includes proportional share of refining margins contributed by certain equity affiliates. Realized margin excludes special items.	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation and Amortization ($ Millions)*	 	 	 	 	 	 	 	 	 	 	 	
Atlantic Basin/Europe	49		 	 	 	49		 	47		54		46		52		199		
Gulf Coast	65		 	 	 	65		 	57		58		58		61		234		
Central Corridor	27		 	 	 	27		 	26		26		26		28		106		
West Coast	58		 	 	 	58		 	56		58		58		58		230		
Total	199		 	 	 	199		 	186		196		188		199		769		
* Excludes D&A of all equity affiliates.	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating and SG&A Expense ($ Millions)*	 	 	 	 	 	 	 	 	 	 	 	
Atlantic Basin/Europe	271		 	 	 	271		 	236		223		215		207		881		
Gulf Coast	350		 	 	 	350		 	286		311		344		344		1,285		
Central Corridor	144		 	 	 	144		 	114		119		126		137		496		
West Coast	324		 	 	 	324		 	250		202		233		343		1,028		
Total	1,089		 	 	 	1,089		 	886		855		918		1,031		3,690		
* Excludes Operating and SG&A Expense of all equity affiliates.	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Turnaround Expense ($ Millions), included in	 	 	 	 	 	 	 	 	 	 	 	
Operating and SG&A Expense*	 	 	 	 	 	 	 	 	 	 	 	
Atlantic Basin/Europe	83		 	 	 	83		 	26		10		17		20		73		
Gulf Coast	72		 	 	 	72		 	23		26		55		51		155		
Central Corridor	27		 	 	 	27		 	10		17		18		15		60		
West Coast	117		 	 	 	117		 	56		16		27		119		218		
Total	299		 	 	 	299		 	115		69		117		205		506		
* Excludes Turnaround Expense of all equity affiliates.	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Taxes Other than Income Taxes, excluding Excise Taxes ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Atlantic Basin/Europe	16		 	 	 	16		 	17		15		13		13		58		
Gulf Coast	27		 	 	 	27		 	23		21		12		17		73		
Central Corridor	14		 	 	 	14		 	13		12		7		10		42		
West Coast	20		 	 	 	20		 	22		20		21		19		82		
Total	77		 	 	 	77		 	75		68		53		59		255		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Foreign Currency Gains (Losses) After-Tax ($ Millions)	—		 	 	 	—		 	5		—		5		—		10		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Refining—Equity Affiliate Information ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Equity in earnings of affiliates	(6	)	 	 	 	(6	)	 	(9	)	80		68		24		163		
Less: Share of equity affiliate gross margin included in Realized Refining Margin and other equity-affiliate-related costs*	239		 	 	 	239		 	(146	)	(229	)	(145	)	(165	)	(685	)	
Equity-affiliate-related expenses not included in Realized Refining Margins	233		 	 	 	233		 	(155	)	(149	)	(77	)	(141	)	(522	)	
Regional Totals	 	 	 	 	 	 	 	 	 	 	 	
Atlantic Basin/Europe	(17	)	 	 	 	(17	)	 	(18	)	(17	)	(16	)	(12	)	(63	)	
Gulf Coast	428		 	 	 	428		 	14		17		77		15		123		
Central Corridor	(178	)	 	 	 	(178	)	 	(151	)	(149	)	(138	)	(144	)	(582	)	
Total	233		 	 	 	233		 	(155	)	(149	)	(77	)	(141	)	(522	)	
* Other costs associated with equity affiliates which do not flow through equity earnings.	 	

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REFINING (continued)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	2017	 	2016	
 	 	 	 	1st Qtr		2nd Qtr	3rd Qtr	4th Qtr	YTD		 	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		
Atlantic Basin/Europe*	 	 	 	 	 	 	 	 	 	 	 	
Crude Oil Charge Input (MB/D)	366		 	 	 	366		 	577		594		573		529		568		
Total Charge Input (MB/D)	446		 	 	 	446		 	607		626		607		570		602		
Crude Oil Capacity Utilization (%)	70	%	 	 	 	70	%	 	98	%	101	%	100	%	102	%	100	%	
Clean Product Yield (%)	88	%	 	 	 	88	%	 	83	%	84	%	85	%	89	%	85	%	
* Includes our proportionate share of a refinery complex in Karlsruhe, Germany.	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gulf Coast	 	 	 	 	 	 	 	 	 	 	 	
Crude Oil Charge Input (MB/D)	668		 	 	 	668		 	679		738		701		701		704		
Total Charge Input (MB/D)	743		 	 	 	743		 	748		807		770		775		775		
Crude Oil Capacity Utilization (%)	90	%	 	 	 	90	%	 	91	%	99	%	94	%	94	%	95	%	
Clean Product Yield (%)	80	%	 	 	 	80	%	 	79	%	80	%	81	%	82	%	80	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Central Corridor*	 	 	 	 	 	 	 	 	 	 	 	
Crude Oil Charge Input (MB/D)	470		 	 	 	470		 	472		500		487		479		485		
Total Charge Input (MB/D)	488		 	 	 	488		 	491		514		505		498		502		
Crude Oil Capacity Utilization (%)	95	%	 	 	 	95	%	 	96	%	101	%	99	%	97	%	98	%	
Clean Product Yield (%)	90	%	 	 	 	90	%	 	88	%	89	%	86	%	89	%	88	%	
* Includes our proportionate share of the Borger Refinery and Wood River Refinery.	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
West Coast	 	 	 	 	 	 	 	 	 	 	 	
Crude Oil Charge Input (MB/D)	279		 	 	 	279		 	323		348		344		257		318		
Total Charge Input (MB/D)	304		 	 	 	304		 	351		370		372		287		345		
Crude Oil Capacity Utilization (%)	78	%	 	 	 	78	%	 	90	%	97	%	96	%	71	%	88	%	
Clean Product Yield (%)	87	%	 	 	 	87	%	 	81	%	87	%	88	%	86	%	85	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Worldwide — Including Proportionate Share of Equity Affiliates	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Crude Oil Charge Input (MB/D)	1,783		 	 	 	1,783		 	2,051		2,180		2,105		1,966		2,075		
Total Charge Input (MB/D)	1,981		 	 	 	1,981		 	2,197		2,317		2,254		2,130		2,224		
Crude Oil Capacity Utilization (%)	84	%	 	 	 	84	%	 	94	%	100	%	97	%	93	%	96	%	
Clean Product Yield (%)	85	%	 	 	 	85	%	 	82	%	84	%	84	%	86	%	84	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Refined Products Production (MB/D)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Atlantic Basin/Europe*	 	 	 	 	 	 	 	 	 	 	 	
Gasoline	213		 	 	 	213		 	249		256		252		250		252		
Distillates	163		 	 	 	163		 	241		250		246		239		244		
Other	81		 	 	 	81		 	121		123		113		89		111		
Total	457		 	 	 	457		 	611		629		611		578		607		
* Includes our proportionate share of a refinery complex in Karlsruhe, Germany.	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gulf Coast	 	 	 	 	 	 	 	 	 	 	 	
Gasoline	296		 	 	 	296		 	286		321		309		321		309		
Distillates	275		 	 	 	275		 	277		306		291		293		292		
Other	178		 	 	 	178		 	192		190		176		169		182		
Total	749		 	 	 	749		 	755		817		776		783		783		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Central Corridor*	 	 	 	 	 	 	 	 	 	 	 	
Gasoline	253		 	 	 	253		 	254		270		250		260		258		
Distillates	181		 	 	 	181		 	175		185		183		183		181		
Other	59		 	 	 	59		 	65		65		77		59		67		
Total	493		 	 	 	493		 	494		520		510		502		506		
* Includes our proportionate share of the Borger Refinery and Wood River Refinery.	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
West Coast	 	 	 	 	 	 	 	 	 	 	 	
Gasoline	154		 	 	 	154		 	161		185		189		142		169		
Distillates	110		 	 	 	110		 	123		137		137		105		126		
Other	41		 	 	 	41		 	66		49		48		38		50		
Total	305		 	 	 	305		 	350		371		374		285		345		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Worldwide—Including Proportionate Share of Equity Affiliates	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gasoline	 	 	 	916		 	 	 	916		 	950		1,032		1,000		973		988		
Distillates	 	 	 	729		 	 	 	729		 	816		878		857		820		843		
Other	 	 	 	359		 	 	 	359		 	444		427		414		355		410		
Total	 	 	 	2,004		 	 	 	2,004		 	2,210		2,337		2,271		2,148		2,241		

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REFINING (continued)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	2017	 	2016	
 	 	 	 	1st Qtr		2nd Qtr	3rd Qtr	4th Qtr	YTD		 	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		
Market Indicators	 	 	 	 	 	 	 	 	 	 	 	
Crude and Crude Differentials ($/BBL)	 	 	 	 	 	 	 	 	 	 	 	
WTI	51.83		 	 	 	51.83		 	33.27		45.48		44.88		49.18		43.20		
Brent	53.78		 	 	 	53.78		 	33.89		45.57		45.85		49.46		43.69		
LLS	53.51		 	 	 	53.51		 	35.14		47.34		46.53		50.54		44.88		
ANS	53.83		 	 	 	53.83		 	34.46		45.72		44.78		50.14		43.77		
WTI less Maya	7.10		 	 	 	7.10		 	7.21		7.70		5.86		6.38		6.79		
WTI less WCS	13.79		 	 	 	13.79		 	13.63		12.92		14.22		15.02		13.95		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Natural Gas ($/MMBtu)	 	 	 	 	 	 	 	 	 	 	 	 	 	
Henry Hub	3.00		 	 	 	3.00		 	1.98		2.10		2.85		2.99		2.48		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Product Margins ($/BBL)	 	 	 	 	 	 	 	 	 	 	 	
Atlantic Basin/Europe	 	 	 	 	 	 	 	 	 	 	 	
East Coast Gasoline less Brent	9.46		 	 	 	9.46		 	11.54		17.92		13.37		13.44		14.07		
East Coast Distillate less Brent	12.93		 	 	 	12.93		 	10.79		12.54		12.59		15.67		12.89		
Gulf Coast	 	 	 	 	 	 	 	 	 	 	 	
Gulf Coast Gasoline less LLS	9.92		 	 	 	9.92		 	7.81		11.05		10.17		8.58		9.40		
Gulf Coast Distillate less LLS	12.26		 	 	 	12.26		 	7.92		9.07		11.01		13.39		10.35		
Central Corridor	 	 	 	 	 	 	 	 	 	 	 	
Central Gasoline less WTI	12.77		 	 	 	12.77		 	10.24		13.67		14.16		9.40		11.87		
Central Distillate less WTI	14.00		 	 	 	14.00		 	11.08		11.75		15.38		14.03		13.06		
West Coast	 	 	 	 	 	 	 	 	 	 	 	
West Coast Gasoline less ANS	17.28		 	 	 	17.28		 	17.66		20.15		16.08		13.26		16.79		
West Coast Distillate less ANS	14.84		 	 	 	14.84		 	11.19		14.70		14.82		17.34		14.51		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Worldwide Market Crack Spread ($/BBL)*	12.24		 	 	 	12.24		 	10.64		13.84		12.96		12.10		12.39		
* Weighted average based on Phillips 66 crude capacity.	

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MARKETING AND SPECIALTIES	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	2017	 	2016	
 	 	 	 	1st Qtr		2nd Qtr	3rd Qtr	4th Qtr	YTD		 	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		
Marketing and Specialties Net Income Attributable to Phillips 66 ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Marketing and Other	124		 	 	 	124		 	162		199		228		158		747		
Specialties	17		 	 	 	17		 	43		30		39		32		144		
Marketing and Specialties Net Income Attributable to Phillips 66	141		 	 	 	141		 	205		229		267		190		891		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Marketing and Specialties Income before Income Taxes ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Marketing and Other	181		 	 	 	181		 	246		298		339		161		1,044		
Specialties	27		 	 	 	27		 	69		47		61		40		217		
Marketing and Specialties Income before Income Taxes	208		 	 	 	208		 	315		345		400		201		1,261		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Marketing and Specialties Adjusted EBITDA ($ Millions)	235		 	 	 	235		 	340		372		429		227		1,368		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Realized Marketing Fuel Margin ($/BBL)*	 	 	 	 	 	 	 	 	 	 	 	
U.S.	1.33		 	 	 	1.33		 	1.83		1.79		1.88		1.10		1.64		
International	3.70		 	 	 	3.70		 	3.16		4.16		5.19		3.68		4.05		
* On third-party petroleum products sales.	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Realized Margins not included in Marketing Fuel Margin ($ Millions)*	 	 	 	 	 	 	 	 	 	 	 	
Marketing and Other	133		 	 	 	133		 	123		147		143		129		542		
Specialties	72		 	 	 	72		 	112		92		104		88		396		
Total	205		 	 	 	205		 	235		239		247		217		938		
* Excludes Gain on Dispositions and Excise Tax Income.	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation and Amortization ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Marketing and Other	22		 	 	 	22		 	20		22		24		21		87		
Specialties	5		 	 	 	5		 	5		5		5		5		20		
Total	27		 	 	 	27		 	25		27		29		26		107		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating and SG&A Expense ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Marketing and Other	245		 	 	 	245		 	244		271		261		262		1,038		
Specialties	38		 	 	 	38		 	35		38		38		41		152		
Total	283		 	 	 	283		 	279		309		299		303		1,190		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Marketing Petroleum Products Sales (MB/D)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
U.S. Marketing	 	 	 	 	 	 	 	 	 	 	 	
Gasoline	1,105		 	 	 	1,105		 	1,086		1,171		1,158		1,183		1,150		
Distillates	 	 	 	818		 	 	 	818		 	706		782		780		773		760		
Other	 	 	 	—		 	 	 	—		 	—		1		—		—		—		
Total	 	 	 	1,923		 	 	 	1,923		 	1,792		1,954		1,938		1,956		1,910		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
International Marketing	 	 	 	 	 	 	 	 	 	 	 	
Gasoline	 	 	 	82		 	 	 	82		 	90		90		89		82		88		
Distillates	 	 	 	168		 	 	 	168		 	197		193		189		168		187		
Other	 	 	 	15		 	 	 	15		 	15		18		17		17		16		
Total	 	 	 	265		 	 	 	265		 	302		301		295		267		291		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Worldwide Marketing	 	 	 	 	 	 	 	 	 	 	 	
Gasoline	 	 	 	1,187		 	 	 	1,187		 	1,176		1,261		1,247		1,265		1,238		
Distillates	 	 	 	986		 	 	 	986		 	903		975		969		941		947		
Other	 	 	 	15		 	 	 	15		 	15		19		17		17		16		
Total	 	 	 	2,188		 	 	 	2,188		 	2,094		2,255		2,233		2,223		2,201		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Foreign Currency Gains (Losses) After-Tax ($ Millions)	1		 	 	 	1		 	(1	)	1		—		(1	)	(1	)	

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CORPORATE AND OTHER	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	2017	 	2016	
 	 	 	 	1st Qtr		2nd Qtr	3rd Qtr	4th Qtr	YTD		 	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Corporate and Other Net Income (Loss) Attributable to Phillips 66 ($ Millions)	(123	)	 	 	 	(123	)	 	(127	)	(111	)	(109	)	(124	)	(471	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Detail of Net Income (Loss) Attributable to Phillips 66 ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Net interest expense	(65	)	 	 	 	(65	)	 	(54	)	(52	)	(49	)	(55	)	(210	)	
Corporate overhead	(39	)	 	 	 	(39	)	 	(42	)	(40	)	(39	)	(40	)	(161	)	
Technology	(15	)	 	 	 	(15	)	 	(14	)	(14	)	(15	)	(15	)	(58	)	
Other	(4	)	 	 	 	(4	)	 	(17	)	(5	)	(6	)	(14	)	(42	)	
Total	(123	)	 	 	 	(123	)	 	(127	)	(111	)	(109	)	(124	)	(471	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Before-Tax Net Interest Expense ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	
Interest expense	(114	)	 	 	 	(114	)	 	(105	)	(104	)	(103	)	(107	)	(419	)	
Capitalized interest	9		 	 	 	9		 	19		21		22		19		81		
Interest revenue	5		 	 	 	5		 	4		3		7		4		18		
Premium on early debt retirement	—		 	 	 	—		 	(1	)	—		—		—		(1	)	
Total	(100	)	 	 	 	(100	)	 	(83	)	(80	)	(74	)	(84	)	(321	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Foreign Currency Gains (Losses) After-Tax ($ Millions)	—		 	 	 	—		 	1		—		—		1		2		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Phillips 66 Total Company Debt	 	 	 	 	 	 	 	 	 	 	 	
Total Debt ($ Millions)	10,210		 	 	 	10,210		 	8,835		8,862		8,858		10,138		10,138		
Debt-to-Capital Ratio (%)	30	%	 	 	 	30	%	 	27	%	27	%	27	%	30	%	30	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Equity ($ Millions)	23,725		 	 	 	23,725		 	23,643		24,066		24,311		23,725		23,725		

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NON-GAAP FINANCIAL MEASURES RECONCILIATION	
 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Millions of Dollars	
 	 	 	 	2017	 	2016	
 	1st Qtr		2nd Qtr	3rd Qtr	4th Qtr	YTD		 	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD		
Reconciliation of Midstream Net Income to Adjusted EBITDA	 	 	 	 	 	 	 	 	 	 	 	
Midstream net income	112		 	 	 	112		 	80		62		103		35		280		
Plus:	 	 	 	 	 	 	 			 	 	 	 	 	 	
Provision for income taxes	41		 	 	 	41		 	41		22		38		21		122		
Interest revenue	(1	)				(1	)	 	—		—		—		—		—		
Depreciation and amortization	68		 	 	 	68		 	48		50		56		61		215		
Midstream EBITDA	220		 	 	 	220		 	169		134		197		117		617		
 	 	 	 	 	 	 	 	 	 	 	 	
Adjustments (pretax):	 	 	 	 	 	 	 	 	 	 	 	
EBITDA attributable to Phillips 66 noncontrolling interests	(44	)	 	 	 	(44	)	 	(18	)	(28	)	(35	)	(43	)	(124	)	
Proportional share of selected equity affiliates income taxes	—		 	 	 	—		 	1		1		—		—		2		
Proportional share of selected equity affiliates net interest	17		 	 	 	17		 	32		33		32		32		129		
Proportional share of selected equity affiliates depreciation and amortization	27		 	 	 	27		 	43		44		51		45		183		
Pending claims and settlements	—		 	 	 	—		 	(45	)	—		—		—		(45	)	
Impairments by equity affiliates	—		 	 	 	—		 	6		—		—		—		6		
Equity affiliate ownership restructuring	—		 	 	 	—		 	—		—		—		33		33		
Midstream Adjusted EBITDA*	220		 	 	 	220		 	188		184		245		184		801		
* Proportional share of selected equity affiliates is net of noncontrolling interests.	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Midstream Adjusted EBITDA by Business Line	 	 	 	 	 	 	 	 	 	 	 	
Transportation and NGL	 	 	 	 	 	 	 	 	 	 	 	
Transportation and NGL net income	95		 	 	 	95		 	76		71		94		72		313		
Plus:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Provision for income taxes	31		 	 	 	31		 	38		27		33		25		123		
Interest revenue	(1	)	 	 	 	(1	)	 	—		—		—		—		—		
Depreciation and amortization	68		 	 	 	68		 	48		50		56		61		215		
Transportation and NGL EBITDA	193		 	 	 	193		 	162		148		183		158		651		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjustments (pretax):	 	 	 	 	 	 	 	 	 	 	 	
EBITDA attributable to Phillips 66 noncontrolling interests	(44	)	 	 	 	(44	)	 	(18	)	(28	)	(35	)	(43	)	(124	)	
Transportation and NGL Adjusted EBITDA	149		 	 	 	149		 	144		120		148		115		527		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
DCP Midstream	 	 	 	 	 	 	 	 	 	 	 	
DCP Midstream net income	17		 	 	 	17		 	4		(9	)	9		(37	)	(33	)	
Plus:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Provision for income taxes	10		 	 	 	10		 	3		(5	)	5		(4	)	(1	)	
DCP Midstream EBITDA	27		 	 	 	27		 	7		(14	)	14		(41	)	(34	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjustments (pretax):	 	 	 	 	 	 	 	 	 	 	 	
Proportional share of selected equity affiliates income taxes	—		 	 	 	—		 	1		1		—		—		2		
Proportional share of selected equity affiliates net interest	17		 	 	 	17		 	32		33		32		32		129		
Proportional share of selected equity affiliates depreciation and amortization	27		 	 	 	27		 	43		44		51		45		183		
Pending claims and settlements	—		 	 	 	—		 	(45	)	—		—		—		(45	)	
Impairments by equity affiliates	—		 	 	 	—		 	6		—		—		—		6		
Equity affiliate ownership restructuring	—		 	 	 	—		 	—		—		—		33		33		
DCP Midstream Adjusted EBITDA*	71		 	 	 	71		 	44		64		97		69		274		
* Proportional share of selected equity affiliates is net of noncontrolling interests.	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reconciliation of Chemicals Net Income to Adjusted EBITDA	 	 	 	 	 	 	 	 	 	 	 	
Chemicals net income	181		 	 	 	181		 	156		190		101		136		583		
Plus:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Provision for income taxes	70		 	 	 	70		 	72		74		75		35		256		
Chemicals EBITDA	251		 	 	 	251		 	228		264		176		171		839		
 	 	 	 	 	 	 	 	 	 	 	 	
Adjustments (pretax):	 	 	 	 	 	 	 	 	 	 	 	
Proportional share of selected equity affiliates income taxes	20		 	 	 	20		 	18		26		20		13		77		
Proportional share of selected equity affiliates net interest	1		 	 	 	1		 	2		3		1		2		8		
Proportional share of selected equity affiliates depreciation and amortization	69		 	 	 	69		 	71		70		70		74		285		
Impairments by equity affiliates	33		 	 	 	33		 	—		—		89		—		89		
Chemicals Adjusted EBITDA	374		 	 	 	374		 	319		363		356		260		1,298		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reconciliation of Refining Net Income to Adjusted EBITDA	 	 	 	 	 	 	 	 	 	 	 	
Refining net income	259		 	 	 	259		 	86		149		177		(38	)	374		
Plus:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Provision for income taxes	131		 	 	 	131		 	41		58		97		(134	)	62		
Depreciation and amortization	199		 	 	 	199		 	186		196		188		199		769		
Refining EBITDA	589		 	 	 	589		 	313		403		462		27		1,205		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjustments (pretax):	 	 	 	 	 	 	 	 	 	 	 	
Proportional share of selected equity affiliates income taxes	—		 	 	 	—		 	—		—		—		—		—		
Proportional share of selected equity affiliates net interest	—		 	 	 	—		 	—		—		—		—		—		
Proportional share of selected equity affiliates depreciation and amortization	65		 	 	 	65		 	63		64		65		65		257		
Pending claims and settlements	—		 	 	 	—		 	—		—		(70	)	—		(70	)	
Certain tax impacts	—		 	 	 	—		 	—		—		—		(32	)	(32	)	
Gain on consolidation of business	(423	)	 	 	 	(423	)	 	—		—		—		—		—		
Recognition of deferred logistics commitments	—		 	 	 	—		 	—		30		—		—		30		
Railcar lease residual value deficiencies and related costs	—		 	 	 	—		 	—		—		—		40		40		
Refining Adjusted EBITDA	231		 	 	 	231		 	376		497		457		100		1,430		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reconciliation of Marketing and Specialties Net Income to Adjusted EBITDA	 	 	 	 	 	 	 	 	 	 	 	
Marketing and Specialties net income	141		 	 	 	141		 	205		229		267		190		891		
Plus:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Provision for income taxes	67		 	 	 	67		 	110		116		133		11		370		
Depreciation and amortization	27		 	 	 	27		 	25		27		29		26		107		
Marketing and Specialties EBITDA	235		 	 	 	235		 	340		372		429		227		1,368		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjustments (pretax):	 	 	 	 	 	 	 	 	 	 	 	
None	—		 	 	 	—		 	—		—		—		—		—		
Marketing and Specialties Adjusted EBITDA	235		 	 	 	235		 	340		372		429		227		1,368		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reconciliation of Phillips 66 Net Income to Adjusted EBITDA	 	 	 	 	 	 	 	 	 	 	 	
Net income	563		 	 	 	563		 	398		516		536		194		1,644		
Plus:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Provision for income taxes	234		 	 	 	234		 	198		204		277		(132	)	547		
Net interest expense	99		 	 	 	99		 	83		80		74		84		321		
Depreciation and amortization	315		 	 	 	315		 	280		290		293		305		1,168		
Phillips 66 EBITDA	1,211		 	 	 	1,211		 	959		1,090		1,180		451		3,680		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjustments (pretax):	 	 	 	 	 	 	 	 	 	 	 	
EBITDA attributable to Phillips 66 noncontrolling interests	(44	)	 	 	 	(44	)	 	(18	)	(28	)	(35	)	(43	)	(124	)	
Proportional share of selected equity affiliates income taxes	20		 	 	 	20		 	19		27		20		13		79		
Proportional share of selected equity affiliates net interest	18		 	 	 	18		 	34		36		33		34		137		
Proportional share of selected equity affiliates depreciation and amortization	161		 	 	 	161		 	177		178		186		184		725		
Impairments by equity affiliates	33		 	 	 	33		 	6		—		89		—		95		
Pending claims and settlements	—		 	 	 	—		 	(45	)	—		(70	)	—		(115	)	
Certain tax impacts	—		 	 	 	—		 	—		—		—		(32	)	(32	)	
Gain on consolidation of business	(423	)	 	 	 	(423	)	 	—		—		—		—		—		
Equity affiliate ownership restructuring	—		 	 	 	—		 	—		—		—		33		33		
Recognition of deferred logistics commitments	—		 	 	 	—		 	—		30		—		—		30		
Railcar lease residual value deficiencies and related costs	—		 	 	 	—		 	—		—		—		40		40		
Phillips 66 Adjusted EBITDA	976		 	 	 	976		 	1,132		1,333		1,403		680		4,548		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Use of Non-GAAP Financial Information—This earnings release supplemental data includes the terms EBITDA and adjusted EBITDA. 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 measure most directly comparable to EBITDA and adjusted EBITDA is net income.	

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