PHILLIPS 66 2016 Fact Book - s22.q4cdn.com

PHILLIPS 66

2016 Fact Book

Table of Contents

Company Overview

1

Financial Highlights

4

Midstream

6

Chemicals

20

Refining

26

Marketing and Specialties

38

Non-GAAP Reconciliations

42

Contact Information

Headquarters 2331 CityWest Blvd. Houston, TX 77042 281-293-6600

Registered Office 2711 Centerville Road Wilmington, DE 19808

Phillips 66 Investor Relations Rosy Zuklic, General Manager, Investor Relations C.W. Mallon, Manager, Investor Relations Telephone: 1-832-765-2297 Email: investorrelations@ Website: investor.

Phillips 66 Media Relations Telephone: 1-855-841-2368 Email: mediarelations@ Website: newsroom

An electronic file of this Fact Book can be obtained by visiting , selecting the Investors tab and then Financial & Operating Information. The file is located in the Annual Reports section of that page.

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

Company Overview

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

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

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

Midstream

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

Chemicals

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

Refining

Refines crude oil and other feedstocks at 14 refineries in the United States and Europe, and focuses on operating excellence, optimization, yield improvement and increasing margins. The business has a global refining capacity of 2.2 million barrels of crude oil per day.

Marketing and Specialties

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

1

Company Overview

Strategic Priorities

The 14,000 employees of Phillips 66 are executing the strategy that has guided the company since its creation in 2012: maintain strong operating excellence, deliver profitable growth, enhance returns on capital, grow shareholder distributions and develop its employees to sustain a high-performing organization.

MAINTAIN STRONG OPERATING EXCELLENCE

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

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

DELIVER PROFITABLE GROWTH

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

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

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

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

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

ENHANCE RETURNS ON CAPITAL

A disciplined capital allocation process ensures that we focus investments in projects that generate competitive returns throughout the business cycle. Phillips 66's Refining segment is a significant competitor in the domestic fuels industry, with 11 of its 14 refineries located in the United States.

Through planned operating enhancements, we expect to drive efficiency and improve returns. The majority of the improvement will come from higher product yields and a focus on controllable costs. In early 2015, we sold the Bantry Bay terminal, a storage complex located in Ireland. And in August 2016, we announced the sale of our Whitegate Refinery, located near Cork, Ireland. The transaction is expected to close in the third quarter of 2016.

GROW SHAREHOLDER DISTRIBUTIONS

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

BUILD ON PHILLIPS 66's HIGH-PERFORMING ORGANIZATION

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

2

PHILLIPS 66 2016 FACT BOOK

Texas-Based Midstream Assets

FREEPORT TERMINAL

BEAUMONT MARINE TERMINAL

CLEMENS STORAGE CAVERNS

3

Financial Highlights

(Millions of Dollars Except Per Share Amounts)

2015

2014

2013

Net income attributable to Phillips 66

$ 4,227

$ 4,762

$ 3,726

Midstream 13 507 469

Chemicals 962 1,137 986

Refining

2,555 1,771 1,747

Marketing and Specialties 1,187 1,034 894

Corporate (490) (393) (431)

Adjusted earnings 4,193 3,782 3,643

Midstream 248 508 469

Chemicals 952 1,209 986

Refining

2,527 1,576 1,734

Marketing and Specialties 947 882 885

Corporate (481) (393) (431)

Adjusted EBITDA 8,513 7,792 7,408

Midstream 843 1,170 1,067

Chemicals 1,701 2,101 1,710

Refining

4,774 3,449 3,583

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

Corporate (321) (329) (365)

Average Capital Employed31,74929,59528,130 Capital Expenditures and Investments 5,764 3,773 1,779 Debt-to-capital ratio 27% 28% 21% Net-debt-to-capital ratio 20% 13% 3% Cash and cash equivalents 3,074 5,207 5,400 Total assets48,58048,69249,769 Total debt 8,887 8,635 6,125 Total equity23,938 22,03722,392 Cash from operating activities 5,713 3,529 6,027 Cash dividends paid per share of common stock (dollars) 2.18 1.89 1.33

CUMULATIVE TOTAL SHAREHOLDER RETURN

($100 invested on May 1, 2012)

$300 $250

Phillips 66 Peer Group* S&P 500 S&P 100

$200

$150

ADJUSTED EARNINGS ($ in millions)

ADJUSTED RETURN ON CAPITAL EMPLOYED (ROCE)

4,193

14%

3,782

14%

3,643

14%

$100 5/1/12 12/31/12 12/31/13 12/31/14 12/31/15

13 14 15

13 14 15

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

4

PHILLIPS 66 2016 FACT BOOK

Operating Excellence

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

Phillips 66

1.5

1.5

CPChem 1.5

DCP

REFINING ENVIRONMENTAL METRICS

1.0

1.0

1.0

0.5

0.5

0.5

0

0

0

12 13 14 15

12 13 14 15

12 13 14 15

Industry Average1

279 300 317 430

12 13 14 15

OPERATING COSTS AND SG&A ($ in billions)

REFINING CAPACITY UTILIZATION (Percent)

Planned Maintenance & Turnarounds

3% 3% 4% 5%

6.0 6.1 5.7 5.7

12 13 14 15

91% 94% 93% 93%

12 13 14 15

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

costs, within the context of our commitment to safety and environmental stewardship, is a high priority. We actively monitor these costs using various methodologies. By optimizing utilization rates at our refineries through reliable and safe operations we are able to capture the value available in the market.

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

5

Midstream

6

PHILLIPS 66 2016 FACT BOOK

SWEENY FRACTIONATOR ONE

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