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1
FOURTH QUARTER 2018 CONFERENCE CALLFebruary 8, 2019
PHILLIPS 66
2
CAUTIONARY STATEMENT
This presentation contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, andSection 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Words andphrases 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 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 theenergy industry in general on the date this presentation was prepared. These statements are not guarantees of future performance and involvecertain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what isexpressed or forecast in such forward-looking statements. Factors that could cause actual results or events to differ materially from those describedin the forward-looking statements include fluctuations in NGL, crude oil, and natural gas prices, and petrochemical and refining margins; unexpectedchanges 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 fromlitigation or for remedial actions, including removal and reclamation obligations under environmental regulations; limited access to capital orsignificantly higher cost of capital related to illiquidity or uncertainty in the domestic or international financial markets; the impact of adverse marketconditions or other similar risks to those identified herein affecting PSXP, as well as the ability of PSXP to successfully execute its growth plans; andother economic, business, competitive and/or regulatory factors affecting Phillips 66’s businesses generally as set forth in our filings with theSecurities 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.
This presentation includes non-GAAP financial measures. You can find the reconciliations to comparable GAAP financial measures at the end ofthe presentation materials or in the “Investors” section of our website.
3
EXECUTING THE STRATEGY
New fractionation site and Sweeny Refinery, Old Ocean, Texas
4
OVERVIEW2018
(1) Dollars per share(2) Shareholder distributions include dividends and share repurchases(3) After-tax
$MM (unless otherwise noted)
Adjusted earnings $ 5,550
Adjusted EPS1 11.71
Operating cash flow 7,573
Capital expenditures and investments 2,639
Shareholder distributions2 6,081
Net-debt-to-capital ratio
ROCE3
23%
17%
5
$B
CASH FLOW2018
3.1
7.9
(0.3)
1.0
(2.6)
(6.1)3.0
December 31,2017Cash
Balance*
CFO(excludingWorkingCapital)
WorkingCapital
CapitalExpenditures
& Investments
ShareholderDistributions
Debt December 31,2018Cash
Balance** Includes cash and cash equivalents
6
OVERVIEW4Q 2018
(1) Dollars per share(2) Shareholder distributions include dividends and share repurchases
$MM (unless otherwise noted)
Adjusted earnings $ 2,260
Adjusted EPS1 4.87
Operating cash flow 4,139
Capital expenditures and investments 994
Shareholder distributions2 864
7
ADJUSTED EARNINGS4Q 2018$MM
3Q 2018AdjustedEarnings
Midstream Chemicals Refining Marketing& Specialties
Corporate& Other
NoncontrollingInterests
4Q 2018AdjustedEarnings
4Q 2018 Adjusted Pre-Tax Income (Loss)
409 152 2,008 592 (201) (624) (76)
Income TaxExpense
1,456
97
(111)
745207 22
(157)
1
2,260
8
312
2548
24
409
MIDSTREAM4Q 2018
$MM
Increased transportation volumesassociated with strong refineryutilization rates
3Q 2018Adjusted
Pre-Tax Income
Transportation NGL and Other DCPMidstream
4Q 2018Adjusted
Pre-Tax Income
4Q 2018
Strong Bakken Pipeline volumes
234 122 53
DCP Midstream completed SandHills Pipeline expansion
9
263
(67)
(35) (9)
152
CHEMICALS4Q 2018
$MM
3Q 2018Adjusted
Pre-Tax Income
Olefins &Polyolefins
Specialties,Aromatics &
Styrenics
Other 4Q 2018Adjusted
Pre-Tax Income
Seasonally lower sales volumes
158 16 (22)
95% O&P capacity utilization
Continued strong cashdistributions
4Q 2018
O&P and SA&S impacted byhigher turnaround costs
10
1,263
85247
342 71
2,008
REFINING4Q 2018
3Q 2018Adjusted
Pre-Tax Income
AtlanticBasin /Europe
Gulf Coast
CentralCorridor
West Coast
4Q 2018Adjusted
Pre-Tax Income
301 468 1,188 51
99% crude utilization
86% clean product yield
$16.53/BBL realized margin
$130 MM pre-tax turnaround costs
$MM
4Q 2018
11
REFINING MARGINS – MARKET VS. REALIZED4Q 2018WORLDWIDE REFINING $/BBL
Market3:2:1
Configuration SecondaryProducts
Feedstock Other RealizedMargin
Avg Market Crude: $65.50/BBL 181% Market Capture
9.11
0.35
(0.29)
3.79
3.57
16.53
12
385
205 2
592
MARKETING AND SPECIALTIES4Q 2018
Captured strong margins in afavorable market
Refined products exports of249 MBPD
3Q 2018Adjusted
Pre-Tax Income
Marketing& Other
Specialties 4Q 2018Adjusted
Pre-Tax Income
528 64
Re-imaged 466 branded sites
$MM
4Q 2018
13
$MM
(223)
913
(201)
CORPORATE AND OTHER4Q 2018
4Q 2018Adjusted
Pre-Tax Loss
Net InterestExpense
CorporateOverhead& Other
3Q 2018Adjusted
Pre-Tax Loss
14
OUTLOOK
1Q 2019Global Olefins & Polyolefins utilization
Refining crude utilization
Refining turnaround expenses (pre-tax)
Corporate & Other costs (pre-tax)
Mid-90%Mid-80%
$140 MM - $170 MM
$210 MM - $240 MM
2019Refining turnaround expenses (pre-tax)
Corporate & Other costs (pre-tax)
Depreciation and amortization
Effective income tax rate
$550 MM - $600 MM
$850 MM - $900 MM
$1.4 B
Low-20%
15
PHILLIPS 66FOURTH QUARTER 2018CONFERENCE CALLQuestions and Answers
16
Appendix
PHILLIPS 66FOURTH QUARTER 2018CONFERENCE CALL
17
ESTIMATED SENSITIVITIES2019
Sensitivities shown above are independent and are only valid within a limited price range
Annual EBITDA $MMMidstream - DCP (net to Phillips 66)10¢/Gal Increase in NGL price 610¢/MMBtu Increase in Natural Gas price 1$1/BBL Increase in WTI price 1
Chemicals - CPChem (net to Phillips 66)1¢/Lb Increase in Chain Margin (Ethylene, Polyethylene, NAO) 65
Worldwide Refining$1/BBL Increase in Gasoline Margin 350$1/BBL Increase in Distillate Margin 300
Impacts due to Actual Crude Feedstock Differing from Feedstock Assumed in Market Indicators:$1/BBL Widening WTI / WCS Differential (WTI less WCS) 100$1/BBL Widening LLS / WTI Differential (LLS less WTI) 70$1/BBL Widening LLS / Maya Differential (LLS less Maya) 60$1/BBL Widening WTI / WTS Differential (WTI less WTS) 30$1/BBL Widening ANS / WTI Differential (ANS less WTI) 2510¢/MMBtu Increase in Natural Gas price (15)
18
CAPITAL STRUCTURE2016 – 2018
Excluding PSXP
Equity $B Debt $B Cash & Cash Equivalents $B Debt-to-Capital Net-Debt-to-Capital
Consolidated PSX
2016 2017 1Q2018
2Q2018
3Q2018
4Q2018
23.7
27.424.3 25.0 25.8 27.2
10.1 10.111.6 11.4 11.3 11.2
2.7 3.10.8
1.90.9 3.0
30%
27%
32%31% 31%
29%
24%
20%
31%
28%
29%
23%
2016 2017 1Q2018
2Q2018
3Q2018
4Q2018
22.425.1
22.0 22.6 23.4 24.7
7.7 7.28.7 8.4 8.4 8.1
2.7 2.90.7
1.70.8 3.0
26%
22%
28%27%
26%25%
18%
14%
27%
23%
25%
17%
19
7.26
1.48
3.39
(2.53)
1.94
11.54
REFINING MARGINS – MARKET VS. REALIZED4Q 2018ATLANTIC BASIN / EUROPE $/BBL
Market3:2:1
Configuration SecondaryProducts
Feedstock Other RealizedMargin
Brent: $67.76/BBL Crude Capacity Utilization 159% Market Capture98%
Market 3:2:1 – Dated Brent / Gasoline 83.7 RBOB NYH / Diesel 15ppm NYH
20
5.14
0.59
(0.54)
3.29
3.36
11.84
REFINING MARGINS – MARKET VS. REALIZED4Q 2018GULF COAST $/BBLLLS: $66.55/BBL Crude Capacity Utilization 230% Market Capture
Market3:2:1
Configuration SecondaryProducts
Feedstock Other RealizedMargin
Market 3:2:1 – LLS / Gasoline 85 CBOB / Diesel 62 10ppm
100%
21
14.57
0.21
(2.37)
11.26
6.93
30.60
REFINING MARGINS – MARKET VS. REALIZED4Q 2018CENTRAL CORRIDOR $/BBL
Market3:2:1
Configuration SecondaryProducts
Feedstock Other RealizedMargin
WTI: $59.09/BBL Crude Capacity Utilization 210% Market Capture106%
Market 3:2:1 – WTI / Gasoline Unl Sub Octane Group 3 / ULSD Group 3
22
REFINING MARGINS – MARKET VS. REALIZED4Q 2018WEST COAST $/BBL
12.66
(0.51)
(2.88)
3.481.43
14.18
Market3:2:1
Configuration SecondaryProducts
Feedstock Other RealizedMargin
ANS: $68.65/BBL Crude Capacity Utilization 112% Market Capture87%
Market 3:2:1 – ANS / Los Angeles CARBOB / Los Angeles No. 2 CARB
23
ADJUSTED EARNINGS4Q 2018 VS. 4Q 2017
548
213
(9)
1,498
424 25
(420) (19)
2,260
409 152 2,008 592 (201) (624) (76)
$MM
4Q 2017AdjustedEarnings
Midstream Chemicals Refining Marketing& Specialties
Corporate& Other
NoncontrollingInterests
4Q 2018AdjustedEarnings
4Q 2018 Adjusted Pre-Tax Income (Loss)
Income TaxExpense
24
MIDSTREAM4Q 2018 VS. 4Q 2017
4Q 2017Adjusted
Pre-Tax Income
Transportation NGL and Other DCPMidstream
4Q 2018Adjusted
Pre-Tax Income
4Q 2018
196
82
10427
409
234 122 53
$MM
25
161
22
(19)(12)
152
CHEMICALS4Q 2018 VS. 4Q 2017
4Q 2017Adjusted
Pre-Tax Income
Olefins &Polyolefins
Specialties,Aromatics& Styrenics
Other 4Q 2018Adjusted
Pre-Tax Income
158 16 (22)
$MM
4Q 2018
26
REFINING4Q 2018 VS. 4Q 2017
4Q 2017Adjusted
Pre-Tax Income
AtlanticBasin /Europe
GulfCoast
CentralCorridor
West Coast 4Q 2018Adjusted
Pre-Tax Income
510
144
361
887106
2,008
301 468 1,188 51
$MM
4Q 2018
27
MARKETING AND SPECIALTIES4Q 2018 VS. 4Q 2017
168
417 7
592
4Q 2018Adjusted
Pre-Tax Income
4Q 2017Adjusted Pre-Tax Income
528 64
Marketing& Other
Specialties
$MM
4Q 2018
28
(226)
(1)
26
(201)
CORPORATE AND OTHER4Q 2018 VS. 4Q 2017$MM
4Q 2018Adjusted
Pre-Tax Loss
Net InterestExpense
CorporateOverhead& Other
4Q 2017Adjusted
Pre-Tax Loss
29
* We generally tax effect taxable U.S.-based special items using a combined federal and state statutory income tax rate of approximately 25 percent beginning in 2018, and approximately 38 percent for periods prior to2018. 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 goodwillimpairments, 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 transactionsoccurring 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 pershare calculation.
Millions of DollarsExcept as Indicated
2018 2017Year 4Q 3Q Year 4Q
Phillips 66Consolidated Earnings $ 5,595 2,240 1,492 5,106 3,198Pre-tax Adjustments: Pending claims and settlements 21 — 21 (60) — Pension settlement expense 67 18 49 83 7 Impairments by equity affiliates 28 28 — 64 31 Certain tax impacts (119) (4) (45) (23) (23) Gain on consolidation of business — — — (423) — Hurricane-related costs — — — 210 140Tax impact of adjustments* (1) (12) (6) 47 (70)U.S. tax reform 23 55 (49) (2,735) (2,735)Other tax impacts (70) (65) (5) — —Noncontrolling interests 6 — (1) — —Adjusted Earnings $ 5,550 2,260 1,456 2,269 548
Earnings Per Share of Common Stock (dollars) $ 11.80 4.82 3.18 9.85 6.25
Adjusted Earnings Per Share of Common Stock (dollars)** $ 11.71 4.87 3.10 4.38 1.07
NON-GAAP RECONCILIATIONS
30
Millions of DollarsExcept as Indicated
2018 2017Year 4Q 3Q Year 4Q
MidstreamPre-Tax Income $ 1,181 379 284 638 189Pre-tax Adjustments: Pending claims and settlements 21 — 21 (37) — Pension settlement expense 9 2 7 12 1 Impairments by equity affiliates 28 28 — — — Hurricane-related costs — — — 10 6Adjusted Pre-Tax Income $ 1,239 409 312 623 196
ChemicalsPre-Tax Income $ 1,025 152 263 716 8
Pre-tax Adjustments: Impairments by equity affiliates — — — 64 31 Hurricane-related costs — — — 175 122Adjusted Pre-Tax Income $ 1,025 152 263 955 161
NON-GAAP RECONCILIATIONS
31
Millions of DollarsExcept as Indicated
2018 2017Year 4Q 3Q Year 4Q
RefiningPre-Tax Income $ 4,535 2,001 1,232 2,076 516Pre-tax Adjustments: Pending claims and settlements — — — (51) — Gain on consolidation of business — — — (423) — Certain tax impacts (6) (4) (1) (23) (23) Pension settlement expense 43 11 32 53 5 Hurricane-related costs — — — 24 12Adjusted Pre-Tax Income $ 4,572 2,008 1,263 1,656 510
Marketing & SpecialtiesPre-Tax Income $ 1,557 589 423 1,020 167Pre-tax Adjustments: Pension settlement expense 9 3 6 11 1 Hurricane-related costs — — — 1 — Certain tax impacts (113) — (44) — —Adjusted Pre-Tax Income $ 1,453 592 385 1,032 168
NON-GAAP RECONCILIATIONS
32
Millions of DollarsExcept as Indicated
2018 2017Year 4Q 3Q Year 4Q
Corporate and OtherPre-Tax Loss $ (853) (203) (227) (895) (226)Pre-tax Adjustments: Pending claims and settlements — — — 28 — Pension settlement expense 6 2 4 7 — U.S. Tax Reform (16) — — — —Adjusted Pre-Tax Loss $ (863) (201) (223) (860) (226)
NON-GAAP RECONCILIATIONS
33
Millions of DollarsExcept as Indicated
2018 2017Year 4Q 3Q Year 4Q
Midstream - TransportationPre-Tax Income $ 770 234 209 530 147Pre-tax Adjustments: Pending claims and settlements — — — (37) — Hurricane-related costs — — — 8 5Adjusted Pre-Tax Income $ 770 234 209 501 152
Midstream - NGL and OtherPre-Tax Income $ 305 120 46 32 16Pre-tax Adjustments: Pending claims and settlements 21 — 21 — — Pension settlement expense 9 2 7 12 1 Hurricane-related costs — — — 2 1Adjusted Pre-Tax Income $ 335 122 74 46 18
Midstream - DCP MidstreamPre-Tax Income $ 106 25 29 76 26Pre-tax Adjustments: Impairments by equity affiliates 28 28 — — —Adjusted Pre-Tax Income $ 134 53 29 76 26
NON-GAAP RECONCILIATIONS
34
Millions of Dollars
Except as Indicated
2018 2017
Year 4Q 3Q Year 4Q
Refining - Atlantic Basin / Europe
Pre-Tax Income $ 567 302 209 448 179
Pre-tax Adjustments:
Pending claims and settlements — — — (7) —
Certain tax impacts (5) (4) (1) (23) (23)
Pension settlement expense 11 3 8 14 1
Adjusted Pre-Tax Income $ 573 301 216 432 157
Refining - Gulf Coast
Pre-Tax Income $ 1,040 464 210 809 93
Pre-tax Adjustments:
Pending claims and settlements — — — (9) —
Gain on consolidation of business — — — (423) —
Pension settlement expense 15 4 11 18 2
Hurricane-related costs — — — 24 12
Adjusted Pre-Tax Income $ 1,055 468 221 419 107
NON-GAAP RECONCILIATIONS
35
Millions of Dollars
Except as Indicated
2018 2017
Year 4Q 3Q Year 4Q
Refining - Central Corridor
Pre-Tax Income $ 2,817 1,185 839 755 299
Pre-tax Adjustments:
Pending claims and settlements — — — (7) —
Pension settlement expense 10 3 7 13 2
Adjusted Pre-Tax Income $ 2,827 1,188 846 761 301
Refining - West Coast
Pre-Tax Income (Loss) $ 111 50 (26) 64 (55)
Pre-tax Adjustments:
Pending claims and settlements — — — (28) —
Certain tax impacts (1) — — — —
Pension settlement expense 7 1 6 8 —
Adjusted Pre-Tax Income (Loss) $ 117 51 (20) 44 (55)
NON-GAAP RECONCILIATIONS
36
Millions of Dollars
Except as Indicated
2018 2017
Year 4Q 3Q Year 4Q
Marketing & Specialties - Marketing & Other
Pre-Tax Income $ 1,306 525 361 808 110
Pre-tax Adjustments:
Certain tax impacts (113) — (44) — —
Pension settlement expense 9 3 6 11 1
Hurricane-related costs — — — 1 —
Adjusted Pre-Tax Income $ 1,202 528 323 820 111
Marketing & Specialties - Specialties
Pre-Tax Income $ 251 64 62 212 57
Pre-tax Adjustments:
Adjusted Pre-Tax Income $ 251 64 62 212 57
NON-GAAP RECONCILIATIONS
37
* Adjusted total processed inputs include our proportional share of processed inputs of an equity affiliate.** Income before income taxes divided by total processed inputs.*** Realized refining margins per barrel, as presented, are calculated using the underlying realized refining margin amounts, in dollars, divided by adjusted total processed inputs, in barrels. As such,
recalculated per barrel amounts using the rounded margins and barrels presented may differ from the presented per barrel amounts due to rounding.
Millions of Dollars (Except as Indicated)20184Q
AtlanticBasin/Europe Gulf Coast
CentralCorridor West Coast Worldwide
Realized Refining MarginsIncome before income taxes $ 302 464 1,185 50 2,001Plus:Taxes other than income taxes 13 17 12 24 66Depreciation, amortization and impairments 49 69 34 59 211Selling, general and administrative expenses 19 21 13 16 69Operating expenses 223 337 132 318 1,010Equity in (earnings) losses of affiliates 3 1 (353) — (349)Other segment (income) expense, net (1) — (5) 2 (4)Proportional share of refining gross margins contributed by equity affiliates 14 — 514 — 528Special items:Certain tax impacts (4) — — — (4)Realized refining margins $ 618 909 1,532 469 3,528
Total processed inputs (thousands of barrels) 53,613 76,838 27,076 32,954 190,481Adjusted total processed inputs (thousands of barrels)* 53,613 76,838 50,039 32,954 213,444
Income before income taxes (dollars per barrel)** $ 5.63 6.04 43.77 1.52 10.50Realized refining margins (dollars per barrel)*** $ 11.54 11.84 30.60 14.18 16.53
NON-GAAP RECONCILIATIONS
38
* Capital employed is total equity plus total debt
2018 Phillips 66Numerator ($MM)Net Income $ 5,873After-tax interest expense 398GAAP ROCE earnings $ 6,271After-tax Special items (51)Adjusted ROCE earnings $ 6,220
Denominator ($MM)GAAP average capital employed* $ 37,925
2018 GAAP ROCE 17%2018 Adjusted ROCE 16%
NON-GAAP RECONCILIATIONS
39
* Phillips 66 Partners’ third-party debt and Phillips 66's noncontrolling interest attributable to Phillips 66 Partners
Millions of Dollars2018
December 31
Phillips 66Consolidated
Phillips 66Partners *
AdjustedPhillips 66
Total Debt $ 11,160 3,048 8,112 Total Equity 27,153 2,469 24,684Debt-to-Capital Ratio 29% 25%
Total Cash & Cash Equivalents $ 3,019 1 3,018Net-Debt-to-Capital Ratio 23% 17%
NON-GAAP RECONCILIATIONS
40
Millions of Dollars Millions of Dollars
2018 2018
4Q Year
Growth Sustaining Total Growth Sustaining Total
Capital Expenditures and Investments
Midstream $ 510 60 570 $ 1,360 188 1,548
Refining 102 199 301 267 559 826
Marketing & Specialties 34 26 60 71 54 125
Corporate and Other 2 61 63 6 134 140
Total $ 648 346 994 $ 1,704 935 2,639
NON-GAAP RECONCILIATIONS
41
PSX Effective Tax Rate: Millions of Dollars
20184Q Year
Effective Tax Rates Income before income taxes $ 2,918 7,445 Special items 42 (19) Adjusted income before income taxes $ 2,960 7,426
Income tax expense $ 602 1,572 Special items 22 32 Adjusted income tax expense $ 624 1,604
GAAP effective tax rate 20.6% 21.1%
Adjusted effective tax rate 21.1% 21.6%
NON-GAAP RECONCILIATIONS