Strategy. Operating Excellence. Growth. Returns. Distributions. High-Performing Organization. See appendix for footnotes. 4

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2 Cautionary Statement This presentation contains forward-looking statements. 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 forwardlooking statements. However, the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements relating to the operations of Phillips 66 and Phillips 66 Partners LP (including joint venture operations) are based on management s expectations, estimates and projections, their interests and the energy industry in general on the date this presentation 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 can be found in filings by Phillips 66 and Phillips 66 Partners LP with the Securities and Exchange Commission. Phillips 66 and Phillips 66 Partners LP are under no obligation (and expressly disclaim any such obligation) to update or alter their 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 of the presentation materials or in the Investors section of the websites of Phillips 66 and Phillips 66 Partners LP. 2

3 Market Dynamics 3

4 Strategy Operating Excellence Growth Returns Distributions High-Performing Organization See appendix for footnotes. 4

5 Operating Excellence 5

6 Value Chains 6

7 Midstream Organic Growth Sweeny Midstream Hub Sweeny Fractionator One and Clemens Caverns in operation 4Q 2015 Freeport LPG Export Terminal startup 2H 2016 DAPL/ETCOP Commercial operations expected to begin 4Q 2016 Beaumont Terminal projects 2.5 MMBbls new crude/products tanks planned by 2H 2016 Bakken JVs (PSXP) Sacagawea Pipeline expected startup 2H 2016 Bayou Bridge System (PSXP) Lake Charles segment operational 1Q 2016 St. James segment targeted in-service 2H 2017 DCP EBITDA excluded. See appendix for additional footnotes. 7

8 Phillips 66 Partners Fee-based EBITDA Investment-grade credit rating Financial targets: 30% distribution CAGR x debt/ebitda 1.1x annual coverage ratio See appendix for footnotes. 8

9 Phillips 66 Partners 1Q 2016 Drop Down Assets include a 25% controlling interest in: Sweeny Fractionator 100MBD NGL fractionator Clemens NGL Caverns 7.5MMBbl NGL storage facility Total transaction value of $236 MM funded with: $24 MM take-back equity of PSXP LP and GP units $212 MM sponsor loan payable to PSX 2016E full-year EBITDA of $25 MM Long-term, take-or-pay contracts with Phillips 66 for the full capacity of the assets $25 MM EBITDA is attributable to PSXP interest. 9

10 DCP Midstream Strengthened balance sheet Significant self-help initiatives Cash flow breakeven reduction from 60 to 35 cpg NGL Operating improvements Contract realignment System rationalization Capital discipline 90% investment-grade end-use customers Expected to be self-funding No DCP Midstream debt maturities until

11 Global Chemicals Demand Petrochemical demand driven by global economic growth Demand outpaced capacity additions Source: Wood Mackenzie. 11

12 Chemicals Production Costs Petrochemical production costs reduced globally 1,200 1, vs 2014 Average Ethylene Production Cost Curve ($/ton) CPChem location-advantaged feedstock position continues CPChem Asia LPG/Ethane Rest of World N.A. Naphtha M.E. LPG/Naphtha W. Europe LPG Asia Coal Asia Naphtha W. Europe Naphtha N.A. Ethane 150 N.A. LPG M.E. 0 Ethane Cumulative Capacity MM Tons Source: Wood Mackenzie. 12

13 CPChem Growth USGC Petrochemicals Project 1,500 kmta (ethylene) at Cedar Bayou, TX 1,000 kmta (polyethylene) at Old Ocean, TX Planned startup mid-2017 $1 B estimated EBITDA Healthy pipeline of self-funded growth opportunities Expect increased distributions post USGC project completion EBITDA estimate is on a CPChem 100% basis and is based on January 2016 IHS forecast premises. 13

14 Refining Strong free cash flow Increased demand for refined products Expansive footprint provides opportunities for Midstream growth See appendix for footnotes. 14

15 Refining Investing to improve returns Quick payout, low cost projects Wood River projects Dilbit capacity increase, ULSD expansion, FCC modernization $200 MM capex, $100 MM EBITDA Bayway FCC modernization $150 MM capex, $75 MM EBITDA Billings heavy crude project $300 MM capex, $125 MM EBITDA See appendix for footnotes. 15

16 Marketing & Specialties Increased U.S. gasoline sales volumes by 7% Upgraded 300 U.S. branded sites Increased U.K. inland gasoline placement by 11% Added 31 new retail sites in Germany and Austria Third largest U.S. finished lubricants supplier See appendix for footnotes. 16

17 Financial Strength Strong balance sheet Investment-grade credit rating Disciplined capital allocation 20% net debt/cap $3.1 B cash $5 B revolving credit facility See appendix for footnotes. 17

18 Capital Allocation Funding reinvestment Cash from operations PSXP proceeds Returning capital to shareholders Dividend growth Ongoing share repurchases See appendix for footnotes. 18

19 Capital Spending 19

20 Distributions Double-digit dividend growth 37% dividend CAGR since spin Ongoing share repurchase program 110 MM shares repurchased and exchanged $2.6 B authorization remaining Cumulative distributions include distributions since July See appendix for additional footnotes. 20

21 Compelling Investment Shareholder returns PSX +165% 220% 180% Disciplined capital allocation Unique portfolio Peers +37% 140% 100% 60% EBITDA growth Multiple expansion S&P % 20% -20% May-12 Feb-13 Nov-13 Aug-14 May-15 Feb-16 21

22 Appendix

23 Segment Strategy Midstream: Growth Chemicals: Growth Refining: Enhance Returns Marketing & Specialties: Selective Growth Execute Sweeny Hub Grow integrated transportation system PSXP as a funding vehicle Pursue organic and M&A opportunities Grow CPChem organically Advance olefins and polyolefins projects Capitalize on domestic feedstock advantage Leverage proprietary technology Optimize crude slate Expand export capability Increase yields Maintain cost discipline Enhance portfolio Expand European retail marketing Grow lubricants Ensure domestic refinery pull-through 23

24 Midcontinent Integrated Growth Midstream Palermo rail terminal/sacagawea pipeline (PSXP) DAPL/ETCOP Refining, Marketing & Specialties Ponca City Yield improvement project Tight oil processing flexibility 100% lease crude purchases Wood River Dilbit capacity increase ULSD expansion FCC modernization Billings Vacuum tower project Marketing & Specialties Grow branded fuels volumes Enhance Phillips 66 brand Marketing JVs and alliances 24

25 Western Gulf Creating a World-Class Energy Complex Midstream Sweeny Fractionator One (25% PSXP) Freeport LPG export terminal Eagle Ford crude pipeline Sweeny Fractionator Two LPG Export Terminal (Under Construction) Refining, Marketing & Specialties Sweeny Strategic asset integration Marketing & Specialties Grow unbranded fuels volumes Focus on high-quality branded assets Increase high-margin exports Clemens Caverns 25

26 Eastern Gulf Refining Logistics and Midstream Growth Midstream Beaumont terminal expansion: +7 MMBbls Bayou Bridge pipeline Alliance clean products dock Refining, Marketing & Specialties Lake Charles Increase feedstock advantage Alliance Increase light crude runs Marketing & Specialties Grow unbranded fuels volumes Leverage brand value through licensing Increase high-margin exports Grow performance lubricants and export sales 26

27 West Coast Enhancing Returns Midstream Los Angeles waterborne crude tank Santa Maria rail rack Refining, Marketing & Specialties San Francisco Yield improvements Los Angeles FCC energy reduction Marketing & Specialties Grow branded and unbranded fuels volumes Enhance 76 brand Increase high-margin exports Grow export lubricant sales 27

28 Atlantic Basin Enhancing Returns Midstream Bayway LPG loading facility Refining, Marketing & Specialties Bayway FCC reactor modernization Yield improvements Marketing & Specialties Grow JET and COOP brands in Europe Increase unbranded volumes in the U.K. and U.S. Expand brand licensing in the U.S. 28

29 Historical Performance 29

30 Free Cash Flow Average CFO excludes working capital. Sustaining capex excludes capital leases. Midstream adjusted CFO excludes PSXP. PSXP contributions are calculated as consideration paid by PSXP to PSX in dropdown transactions plus quarterly cash distributions paid from PSXP to PSX. Midstream sustaining capex excludes PSXP. DCP Midstream, CPChem and WRB free cash flow calculated based on Phillips 66 s share of after tax cash flow at the enterprise level. 30

31 2015 Adjusted ROCE 40% M&S 30% 20% 35% Chemicals 19% Refining P66 Total 14% 10% 19% Midstream 0% -10% 5% Corporate -8% Average Capital Employed ($B) 31

32 Capital Structure 32

33 Debt and Liquidity As of 12/31/2015. Excludes PSXP. Debt maturity profile excludes capital leases. Undrawn Revolving Credit Facility includes $5.0 B revolving credit facility less $51 MM in letters of credit. 33

34 2016 Sensitivities Sensitivities shown above are independent and are only valid within a limited price range. 34

35 Phillips 66 Capital Program Consolidated Capital Expenditures and Investments Millions of Dollars 2016 Budget Sustaining Growth Total Midstream (1) 227 2,119 2,346 Chemicals Refining ,217 Marketing and Specialties Corporate (2) ,297 2,583 3,880 Select Equity Affiliates (3) DCP CPChem ,016 WRB ,423 Capital Program (3) Midstream 324 2,244 2,568 Chemicals ,016 Refining ,401 Marketing and Specialties Corporate ,764 3,539 5,303 (1) Includes 100% of Phillips 66 Partners (2) Includes non-cash capitalized lease of $3 million in Corporate (3) Includes Phillips 66 s portion of self-funded capital spending by DCP Midstream, CPChem, and WRB. 35

36 Footnotes Slide YTD data is through February 18, 2016 unless otherwise noted. Global Market Crack refers to worldwide market crack spread based on Phillips 66 global crude capacity. NGL weighted average prices are based on index prices from the Mont Belvieu and Conway market hubs that are weighted by DCP Midstream, LLC s (DCP s) NGL component and location mix. PE cash chain margins are ethylene to high-density polyethylene cash chain margins YTD is January average pricing. Source: IHS, Inc. Slide 4 Corporate not included in bars on chart, but included in totals. Adjusted EBITDA adjusted for noncontrolling interest and proportional share of selected equity affiliates income taxes, net interest and D&A. 36

37 Footnotes Slide 5 Injury statistics do not include major projects. Industry Averages are from: Phillips 66 American Fuel & Petrochemical Manufacturers (AFPM) refining data, Chevron Phillips Chemical Company LLC (CPChem) American Chemistry Council (ACC), DCP Gas Processors Association (GPA). Growth component of operating costs is estimated based on growth initiatives post Slide 7 PSX operating assets EBITDA includes Refining Logistics. Refining Logistics represents terminaling, storage and other logistics assets currently embedded in the Refining segment. Amount represents an estimate of the EBITDA potential of these assets if they were transferred to Midstream and market-based fees for their use were charged to the Refining segment. Projects under construction and planned EBITDA growth is 2018 estimated run-rate EBITDA of projects completed 2016 or later. PSXP EBITDA includes EBITDA attributable to non-controlling interests. Planned EBITDA includes projects that have not yet reached final investment decision. 37

38 Footnotes Slide 8 3Q 2013 distribution represents the minimum quarterly distribution, actual distribution of $ equal to MQD prorated. Slide 14 FCF is CFO less sustaining capital, excluding working capital. WRB Refining LP (WRB) free cash flow is calculated based on P66 s share of after tax cash flow at the enterprise level. Global realized margin is based on total processed inputs and includes proportional share of refining margins contributed by certain equity affiliates. Realized margin excludes special items. Slide 15 Wood River Projects capex and EBITDA shown at 100% WRB. Refining capex excludes capital leases but includes Phillips 66 s portion of self-funded capital spending by WRB. Project capex and annual EBITDA are estimated. Slide 16 FCF is CFO less sustaining capital, excluding working capital. 38

39 Footnotes Slide 17 Net debt/cap and cash figures are consolidated. Revolving credit facility available includes $5.0 B revolving credit facility less $51 MM in letters of credit. Adjusted CFO excludes PSXP and excludes working capital. PSXP contributions are calculated as consideration paid by PSXP to PSX in dropdown transactions plus quarterly cash distributions paid from PSXP to PSX. Sustaining capex excludes capital leases and excludes PSXP. Slide 18 Reinvestment excludes Phillips 66 s portion of self-funded capital spending by DCP, CPChem and WRB. Includes $1.5 B equity contribution to DCP in Distributions include the 2014 PSPI share exchange. Slide 19 Capital program includes Phillips 66 s portion of self-funded capital spending by DCP, CPChem and WRB. 39

40 Footnotes Slide share repurchases and exchanges include the PSPI share exchange. Slide 21 Chart reflects total shareholder return May 1, 2012 to February 18, Dividends assumed to be reinvested in stock. Source: Bloomberg. Peer average includes Delek US Holdings, Inc., HollyFrontier Corporation, Marathon Petroleum Corporation, PBF Energy Inc., Tesoro Corporation, Valero Energy Corporation, Western Refining, Energy Transfer Equity, L.P., Enterprise Products Partners L.P., ONEOK, Inc., Targa Resources Corp., Celanese Corporation, The Dow Chemical Company, Eastman Chemical Company, Huntsman Corporation, LyondellBasell Industries NV, and Westlake Chemical Corporation. 40

41 Non-GAAP Reconciliations Millions of Dollars Adjusted EBITDA by Segment Reconciliation Millions of Dollars Adjusted EBITDA by Segment Reconciliation Midstream (excluding DCP Midstream) Midstream net income attributable to Phillips 66 (127) Plus: Net income attributable to noncontrolling interests Provision for income taxes (71) Depreciation and amortization Midstream (excluding DCP Midstream) EBITDA (108) Adjustments (pretax): EBITDA attributable to Phillips 66 noncontrolling interests (13) (24) (45) (73) 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 Lower-of-cost-or-market inventory adjustments Gain on asset dispositions Gain on share issuance by equity affiliate Impairments Pending Claims and settlements (37) Hurricane-related costs Pension settlement expense Midstream (excluding DCP Midstream) Adjusted EBITDA* * Proportional share of selected equity affiliates is net of noncontrolling interests. Proportional Share of DCP Midstream Proportional Share of DCP Midstream net income attributable to Phillips (324) Plus: Net income attributable to noncontrolling interests Provision for income taxes (139) Depreciation and amortization Proportional Share of DCP Midstream EBITDA (463) Adjustments (pretax): EBITDA attributable to Phillips 66 noncontrolling interests Proportional share of selected equity affiliates income taxes (2) Proportional share of selected equity affiliates net interest Proportional share of selected equity affiliates depreciation and amortization Lower-of-cost-or-market inventory adjustments Gain on asset dispositions (30) Gain on share issuance by equity affiliate Impairments in equity affiliates Pending Claims and settlements Hurricane-related costs Proportional Share of DCP Midstream Adjusted EBITDA* * Proportional share of selected equity affiliates is net of noncontrolling interests. 41

42 Non-GAAP Reconciliations Millions of Dollars Adjusted EBITDA by Segment Reconciliation Millions of Dollars Adjusted EBITDA by Segment Reconciliation Chemicals Chemicals net income attributable to Phillips , Plus: Provision for income taxes Chemicals EBITDA 1,189 1,361 1,632 1,315 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 Impairments by equity affiliates Premium on early debt retirement Lower-of-cost-or-market inventory adjustments Chemicals Adjusted EBITDA 1,681 1,710 2,101 1,701 Refining Refining net income (loss) attributable to Phillips 66 3,091 1,747 1,771 2,555 Plus: Provision for income taxes 1,998 1, ,104 Net interest expense Depreciation and amortization Refining EBITDA 5,744 3,467 3,171 4,397 Adjustments (pretax): Proportional share of selected equity affiliates income taxes 5 (4) 3 (3) Proportional share of selected equity affiliates net interest (118) (95) (19) - Proportional share of selected equity affiliates depreciation and amortization Net (gain) loss on asset dispositions (185) - (145) (8) Impairments Canceled projects Pending claims and settlements Severence accruals Hurrican-related costs Tax law impacts - (22) - - Lower-of-cost-or-market inventory adjustments Pension settlement expenses Refining Adjusted EBITDA 6,373 3,583 3,449 4,774 42

43 Non-GAAP Reconciliations Millions of Dollars Adjusted EBITDA by Segment Reconciliation Millions of Dollars Adjusted EBITDA by Segment Reconciliation Marketing and Specialties Marketing and Specialties net income attributable to Phillips ,034 1,187 Plus: Provision for income taxes Net interest expense (2) Depreciation and amortization Marketing and Specialties EBITDA 1,010 1,430 1,570 1,747 Adjustments (pretax): Asset dispositions (4) (40) (125) (242) Impairments Pending claims and settlements 62 (25) (44) - Exit of a business line Tax law impacts - (6) - - Pension settlement expenses Marketing and Specialties Adjusted EBITDA 1,068 1,413 1,401 1,516 Corporate Corporate net income (loss) attributable to Phillips 66 (434) (431) (393) (490) Plus: Net income attributable to noncontrolling interests (8) Provision for income taxes (239) (263) (287) (231) Net interest expense Depreciation and amortization Corporate EBITDA (421) (365) (329) (328) Adjustments (pretax): Impairments Repositioning Costs Pending claims and settlements Tax impacts Pension settlement expense Corporate Adjusted EBITDA (311) (365) (329) (321) 43

44 Non-GAAP Reconciliations Millions of Dollars Phillips 66 Phillips 66 net income attributable to Phillips ,775 4,124 3,726 4,762 4,227 Less: Income from discontinued operations Plus: Net income attributable to noncontrolling interests Provision for income taxes ,822 2,473 1,844 1,654 1,764 Net interest expense (44) (41) (16) Depreciation and amortization ,078 Phillips 66 EBITDA 1,646 2,105 7,445 7,693 6,731 6,986 7,405 Adjustments (pretax): EBITDA attributable to Phillips 66 noncontrolling interests - (9) (10) (13) (24) (45) (73) Proportional share of selected equity affiliates income taxes Proportional share of selected equity affiliates net interest (26) (6) (27) (20) Proportional share of selected equity affiliates depreciation and amortization Gain on asset dispositions (37) (234) (1,636) (189) (40) (270) (280) Gain on share issuance by equity affiliate (135) Impairments 129 1, , Impairments by equity affiliates Cancelled projects Severence accruals Exit of a business line Pending claims and settlements 39 (56) - 56 (25) (21) 30 Premium on early debt retirement Repositioning Costs Hurricane-related costs Tax law impacts (28) - - Lower-of-cost-or-market inventory adjustments Pension settlement expense Phillips 66 Adjusted EBITDA 2,220 4,049 7,010 9,673 7,408 7,792 8,513 44

45 Non-GAAP Reconciliations Forecasted EBITDA We are unable to present reconciliations of the various forecasted EBITDA included in this presentation, because certain elements of net income, including interest, depreciation and income taxes, are not reasonably available. Together, these items generally result in EBITDA being significantly greater than net income. 45

46 Non-GAAP Reconciliations Refining FCF Numerator Millions of Dollars Cash From Operations GAAP $ 3,700 1,374 2,770 Less: Change in Non-Cash Working Cap. 818 (1,599) (441) Cash From Operations (excluding WC) $ 2,882 2,973 3,211 Less: P66 Equity affiliate cash from ops 1, Add: Equity look through cash from ops Adjusted FCF (excl WC) $ 2,710 2,486 3,424 Total Capex GAAP 820 1,038 1,069 Less: Growth Capex Sustaining Capex $ Less: P66 Equity affiliate sustaining capex Add: Equity look through sustaining capex Adjusted Sustaining Capex $ ,031 Refining Free Cash Flow $ 1,962 1,595 2,393 46

47 Non-GAAP Reconciliations Millions of Dollars Refining ROCE Numerator Net Income 1,747 1,771 2,554 After-tax interest expense GAAP ROCE earnings 1,747 1,771 2,554 Special Items (13) (195) (28) Adjusted ROCE earnings 1,734 1,576 2,526 Denominator GAAP average capital employed* 13,940 13,377 13,582 Discontinued Operations Adjusted average capital employed* 13,940 13,377 13,582 *Total equity plus debt. Adjusted ROCE (percent) 12% 12% 19% GAAP ROCE (percent) 13% 13% 19% *Total equity plus debt. 47

48 Non-GAAP Reconciliations M&S FCF Numerator Millions of Dollars Cash From Operations GAAP $ 757 1,663 1,736 Less: Change in Non-Cash Working Cap. (217) Cash From Operations (excluding WC) $ 974 1,012 1,060 Less: P66 Equity affiliate cash from ops Add: Equity look through cash from ops Adjusted FCF (excl WC) $ 974 1,012 1,060 Total Capex GAAP Less: Growth Capex Sustaining Capex $ Less: P66 Equity affiliate sustaining capex Add: Equity look through sustaining capex Adjusted Sustaining Capex $ M&S Free Cash Flow $

49 Non-GAAP Reconciliations Millions of Dollars M&S ROCE Numerator Net Income 894 1,034 1,187 After-tax interest expense GAAP ROCE earnings 894 1,034 1,187 Special Items (9) (152) (239) Adjusted ROCE earnings Denominator GAAP average capital employed* 3,160 2,743 2,735 Discontinued Operations Adjusted average capital employed* 3,160 2,743 2,735 *Total equity plus debt. Adjusted ROCE (percent) 28% 32% 35% GAAP ROCE (percent) 28% 38% 43% *Total equity plus debt. 49

50 Non-GAAP Reconciliations Phillips 66 Available Cash Millions of Dollars Cash From Continuing Operations GAAP $ 5,942 3,527 5,713 Less: Change in Non-Cash Working Cap. 880 (1,020) (221) Cash From Operations (excluding WC) $ 5,062 4,547 5,934 Less: PSXP cash from operations Adjusted CFO $ 5,038 4,447 5,758 Add: PSXP contributions ,478 Total Available Cash $ 5,058 4,983 7,236 Total Phillips 66 Sustaining Capex $ 1,028 1,095 1,186 Less: PSXP Sustaining Capex Sustaining Capex excluding PSXP $ 1,025 1,083 1,178 Remaining capital expenditures 754 2,690 4,586 GAAP capital expenditures $ 1,779 3,773 5,764 50

51 Non-GAAP Reconciliations Phillips 66 Cash from Operations Millions of Dollars Cash From Continuing Operations GAAP $ 917 2,054 4,953 4,259 5,942 3,527 5,713 Less: Change in Non-Cash Working Cap. 393 (195) 314 (1,140) 880 (1,020) (221) Cash From Continuing Operations (excluding WC) $ 524 2,249 4,639 5,399 5,062 4,547 5,934 51

52 Non-GAAP Reconciliations Millions of Dollars Except as Indicated Reconciliation of Earnings to Adjusted Earnings Consolidated Earnings ,775 4,124 3,726 4,762 4,227 Adjustments: Gain on share issuance by equity affiliate (88) Asset dispositions (32) (116) (1,545) (106) (23) (494) (265) Impairments 116 1, Impairments by equity affiliates Canceled projects Severance accruals Pending claims and settlements 25 (35) - 34 (16) (10) (23) Premium on early debt retirement Repositioning costs Exit of business line Repositioning tax impacts Certain tax impacts (17) - (84) Hurricane-related costs Lower-of-cost-or-market inventoyr adjustments Pension settlement expenses Discontinued operations (19) (30) (43) (48) (61) (706) - Adjusted earnings 478 1,729 3,548 5,339 3,643 3,782 4,193 52

53 Non-GAAP Reconciliations FCF Numerator Average Midstream Chemicals Refining Marketing & Specialties Cash From Operations GAAP $ ,615 1,385 Less: Change in Non-Cash Working Cap. (46) 0 (407) 370 Cash From Operations (excluding WC) $ ,022 1,015 Less: P66 Equity affiliate cash from ops Add: Equity look through cash from ops 378 1, Adjusted FCF (excl WC) $ 1,055 1,147 2,874 1,015 Total Capex GAAP 2, Less: Growth Capex 1, Sustaining Capex $ Less: P66 Equity affiliate sustaining capex Add: Equity look through sustaining capex Adjusted Sustaining Capex $ PSXP Contributions $ Free Cash Flow $ 1, ,

54 Non-GAAP Reconciliations ROCE Numerator Millions of Dollars 2015 Phillips 66 Midstream Chemicals Refining Marketing & Specialties Corporate Net Income $ 4, ,554 1,187 (497) After-tax interest expense GAAP ROCE earnings 4, ,554 1,187 (296) Special Items (34) 235 (10) (28) (240) 9 Adjusted ROCE earnings $ 4, , (287) Denominator GAAP average capital employed* $ 31,749 6,793 4,921 13,582 2,735 3,718 Discontinued Operations Adjusted average capital employed* $ 31,749 6,793 4,921 13,582 2,735 3,718 *Total equity plus debt. Adjusted ROCE (percent) 14% 5% 19% 19% 35% -8% GAAP ROCE (percent) 14% 1% 20% 19% 43% -8% *Total equity plus debt. 54

55 Non-GAAP Reconciliations 2013 Adjusted Phillips 66 Millions of Dollars Phillips 66 Partners Phillips 66 Consolidated Cash and cash equivalents 4, ,400 Total Debt 6,126-6,126 Total Equity 21, ,392 Debt-to-capital ratio 22% 21% 2014 Cash and cash equivalents 5, ,207 Total Debt 8, ,635 Total Equity 21, ,037 Debt-to-capital ratio 28% 28% 2015 Cash and cash equivalents 3, ,074 Total Debt 7,796 1,091 8,887 Total Equity 23, ,938 Debt-to-capital ratio 25% 27% 55