Phillips 66 : Fourth-Quarter Earnings Conference Call

FOURTH QUARTER 2019 CONFERENCE CALL

January 31, 2020

Phillips 66 Branded Marketing Site ST. LOUIS, MO

Cautionary Statement

This presentation 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," "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 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 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; the impact of adverse market conditions or other similar risks to those identified herein affecting PSXP, as well as the ability of PSXP to successfully execute its growth plans; 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.

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 our website.

Fourth Quarter 2019 Conference Call 2

Executing the Strategy

Sweeny Fractionators 2 and 3 Construction Site OLD OCEAN, TX

Fourth Quarter 2019 Conference Call 3

2019 Overview

$MM (UNLESS OTHERWISE NOTED)

Adjusted earnings	$ 3,657
Adjusted EPS1	8.05
Operating cash flow excluding working capital2	5,638
Adjusted capital spending3	3,450
Shareholder distributions4	3,220
Net debt-to-capital ratio	27%
Adjusted ROCE5	11%

Bayway Refinery LINDEN, NJ

1. Dollars per share
2. Excludes working capital impacts of $830 million
3. Capital expenditures and investments excluding $423 million of capital spending funded by Gray Oak joint venture partners
4. Shareholder distributions include dividends and share repurchases
5. After-tax

Fourth Quarter 2019 Conference Call 4

2019 Cash Flow

$B

5.6		0.5
	(0.8)

(3.5)

3.0

					(3.2)	1.6
December 31,	CFO	Working	Debt	Adjusted	Shareholder	December 31,
2018	(excluding	Capital		Capital	Distributions	2019
Cash	Working			Spending2		Cash
Balance1	Capital)					Balance1

Fourth Quarter 2019 Conference Call 5

1. Includes cash and cash equivalents
2. Capital expenditures and investments excluding $423 million of capital spending funded by Gray Oak joint venture partners

4Q 2019 Overview

$MM (UNLESS OTHERWISE NOTED)

Clifton Ridge Marine Terminal SULPHUR, LA

Adjusted earnings	$ 689
Adjusted EPS1	1.54
Operating cash flow excluding working capital2	1,223
Adjusted capital spending3	1,277
Shareholder distributions4	810
Common shares outstanding at December 31	441	MM

1. Dollars per share
2. Excludes working capital impacts of $471 million
3. Capital expenditures and investments excluding $1 million of capital spending funded by Gray Oak joint venture partners
4. Shareholder distributions include dividends and share repurchases

Fourth Quarter 2019 Conference Call 6

4Q 2019 Adjusted Earnings

4Q 2019 VS. 3Q 2019 ($MM)

1. 
   (96)

1,402	(494)		149	7

(211) (33)

689

3Q 2019	Midstream	Chemicals	Refining	Marketing	Corporate		Income	Noncontrolling	4Q 2019
Adjusted				& Specialties	& Other		Taxes	Interests	Adjusted
Earnings									Earnings
	405	173	345	287	(211)	(236)	(74)
		4Q 2019 Adjusted Pre-Tax Income (Loss)

Fourth Quarter 2019 Conference Call 7

4Q 2019 Midstream Adjusted Pre-Tax Income

4Q 2019 VS. 3Q 2019 ($MM)

Record Transportation results

Initial startup of Gray Oak Pipeline

DCP Midstream eliminated incentive distribution rights

2

12

(49)

440

405

3Q 2019	Transportation	NGL &	DCP	4Q 2019
Adjusted		Other	Midstream	Adjusted
Pre-Tax Income				Pre-Tax Income

250 12035

4Q 2019

Fourth Quarter 2019 Conference Call 8

4Q 2019 Chemicals Adjusted Pre-Tax Income

4Q 2019 VS. 3Q 2019 ($MM)

97% O&P utilization

2

(97)(1)

269

Lower polyethylene margins and sales volumes

$143 MM distribution in 4Q

173

3Q 2019	Olefins &	Specialties,	Other	4Q 2019
Adjusted	Polyolefins	Aromatics		Adjusted
Pre-Tax Income		& Styrenics		Pre-Tax Income
	154	35	(16)
		4Q 2019

Fourth Quarter 2019 Conference Call 9

4Q 2019 Refining Adjusted Pre-Tax Income

4Q 2019 VS. 3Q 2019 ($MM)

97% crude utilization

		(218)
84% clean product yield	839	(108)
	(75)

(93)

$9.50/BBL realized margin

$232 MM turnaround costs

345

3Q 2019	Atlantic	Gulf	Central	West	4Q 2019
Adjusted	Basin /	Coast	Corridor	Coast	Adjusted
Pre-Tax Income	Europe				Pre-Tax Income

61 76 333 (125)

4Q 2019

Fourth Quarter 2019 Conference Call 10

4Q 2019 Refining Margins - Market vs. Realized

WORLDWIDE REFINING ($/BBL, UNLESS OTHERWISE NOTED)

(1.08)

1.02

(2.35)

12.45

(0.54)

9.50

4Q 2019	Configuration	Secondary	Feedstock	Other	4Q 2019
Market		Products			Realized
3:2:1					Margin
Avg Market Crude: $61.10			76% Market Capture

Fourth Quarter 2019 Conference Call 11

4Q 2019 Marketing & Specialties Adjusted Pre-Tax Income

4Q 2019 VS. 3Q 2019 ($MM)

Formed U.S. West Coast retail marketing joint venture

Reimaged 532 branded sites

Refined products exports of 157 MBPD

498

(203)

(8)

287

3Q 2019	Marketing	Specialties	4Q 2019
Adjusted	& Other		Adjusted
Pre-Tax Income			Pre-Tax Income

23750

4Q 2019

Fourth Quarter 2019 Conference Call 12

4Q 2019 Corporate & Other Adjusted Pre-Tax Loss

4Q 2019 VS. 3Q 2019 ($MM)

3Q 2019	Net Interest	Corporate	4Q 2019
Adjusted	Overhead	Adjusted
Pre-Tax Loss	Expense	& Other	Pre-Tax Loss

(178)

(211)

(6)

(27)

Fourth Quarter 2019 Conference Call 13

Outlook

Lake Charles Isomerization Unit LAKE CHARLES, LA

1Q 2020
Global Olefins & Polyolefins utilization	Mid-90%
Refining crude utilization	~90%
Refining turnaround expenses (pre-tax)	$280 MM - $330 MM
Corporate & Other costs (pre-tax)	$200 MM - $220 MM
2020	$630 MM - $680 MM
Refining turnaround expenses (pre-tax)
Corporate & Other costs (pre-tax)	$800 MM - $850 MM
Depreciation and amortization	$1.4 B
Effective income tax rate	Low-20%

Fourth Quarter 2019 Conference Call 14

Questions and Answers

Beaumont Terminal NEDERLAND, TX

Appendix

Beaumont Terminal NEDERLAND, TX

2020 Estimated Sensitivities

	Annual EBITDA $MM
Midstream - DCP (net to Phillips 66)
10¢/Gal Increase in NGL price	9
10¢/MMBtu Increase in Natural Gas price	3
$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 / Maya Differential (LLS less Maya)	75
$1/BBL Widening LLS / WTI Differential (LLS less WTI)	35
$1/BBL Widening WTI / WTS Differential (WTI less WTS)	30
10¢/MMBtu Increase in Natural Gas price	(15)

Fourth Quarter 2019 Conference Call 17

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

Capital Structure

		Consolidated PSX					Excluding PSXP
	29%	30%		30%	31%	30%
27%
							25%	25%	25%	25%	25%
		27%				27%	22%
			26%	26%
	23%
20%								22%	21%	21%	22%
							17%
							14%
27.4	27.2	26.7		27.3	27.1	27.2	25.1	24.7	24.3	24.8	24.9	24.9
10.1	11.2	11.3		11.4	11.9	11.8	7.2	8.1	8.1	8.1	8.1	8.2
3.1	3.0
	1.3	1.8	2.3	1.6	2.9	3.0	1.3	1.7	1.6	1.3
2017	2018	1Q		2Q	3Q	4Q	2017	2018	1Q	2Q	3Q	4Q
		2019	2019	2019	2019			2019	2019	2019	2019
	Equity $B	Debt $B	Cash & Cash Equivalents $B	Debt-to-Capital	Net Debt-to-Capital

Fourth Quarter 2019 Conference Call 18

4Q 2019 Refining Margins - Market vs. Realized

ATLANTIC BASIN / EUROPE ($/BBL, UNLESS OTHERWISE NOTED)

0.07

Brent: $63.25

(1.62)

1.01

10.51

(2.91)

99% crude utilization

7.06

67% market capture

4Q 2019	Configuration Secondary	Feedstock	Other	4Q 2019
Market	Products			Realized
3:2:1				Margin

Market 3:2:1 - Dated Brent / Gasoline 83.7 RBOB NYH / Diesel 15ppm NYH

Fourth Quarter 2019 Conference Call 19

4Q 2019 Refining Margins - Market vs. Realized

GULF COAST ($/BBL, UNLESS OTHERWISE NOTED)

LLS: $60.79

99% crude utilization

78% market capture

2.11

(0.91)

(1.03)

(2.25)

9.53

7.45

4Q 2019	Configuration Secondary	Feedstock	Other	4Q 2019
Market	Products			Realized
3:2:1				Margin

Market 3:2:1 - LLS / Gasoline 85 CBOB / Diesel 62 10ppm

Fourth Quarter 2019 Conference Call 20

4Q 2019 Refining Margins - Market vs. Realized

CENTRAL CORRIDOR ($/BBL, UNLESS OTHERWISE NOTED)

WTI: $56.98

2.93

(0.22)

(3.06)

0.68

99% crude utilization

102% market capture

14.59

14.92

4Q 2019	Configuration Secondary	Feedstock	Other	4Q 2019
Market	Products			Realized
3:2:1				Margin

Market 3:2:1 - WTI / Gasoline Unl Sub Octane Group 3 / ULSD Group 3

Fourth Quarter 2019 Conference Call 21

4Q 2019 Refining Margins - Market vs. Realized

WEST COAST ($/BBL, UNLESS OTHERWISE NOTED)

ANS: $64.41

		(4.10)		1.90
87% crude utilization	18.40	(3.17)
(2.81)

10.22

56% market capture

4Q 2019	Configuration Secondary	Feedstock	Other	4Q 2019
Market	Products			Realized
3:2:1				Margin

Market 3:2:1 - ANS / Los Angeles CARBOB / Los Angeles No. 2 CARB

Fourth Quarter 2019 Conference Call 22

4Q 2019 Adjusted Earnings

4Q 2019 VS. 4Q 2018 ($MM)

21

(4)

2,260

			(1,663)
				(305)		(10)
4Q 2018	Midstream	Chemicals	Refining	Marketing	Corporate
Adjusted				& Specialties		& Other
Earnings
	405	173	345	287		(211)
		4Q 2019 Adjusted Pre-Tax Income (Loss)

388 2

689

Income	Noncontrolling	4Q 2019
Taxes	Interests	Adjusted
		Earnings

1. (74)

Fourth Quarter 2019 Conference Call 23

4Q 2019 Midstream Adjusted Pre-Tax Income

4Q 2019 VS. 4Q 2018 ($MM)

16

(2)

(18)

409

405

4Q 2018	Transportation	NGL & Other	DCP	4Q 2019
Adjusted			Midstream	Adjusted
Pre-Tax Income				Pre-Tax Income
	250	120	35
		4Q 2019

Fourth Quarter 2019 Conference Call 24

4Q 2019 Chemicals Adjusted Pre-Tax Income

4Q 2019 VS. 4Q 2018 ($MM)

196

(4)

173

152

4Q 2018	Olefins &	Specialties,	Other	4Q 2019
Adjusted	Polyolefins	Aromatics &		Adjusted
Pre-Tax Income		Styrenics		Pre-Tax Income
	154	35	(16)
		4Q 2019

Fourth Quarter 2019 Conference Call 25

4Q 2019 Refining Adjusted Pre-Tax Income

4Q 2019 VS. 4Q 2018 ($MM)

(240)

(392)

2,008

			(855)
			(176)			345
4Q 2018	Atlantic			West Coast
Gulf	Central		4Q 2019
Adjusted	Basin /	Coast	Corridor					Adjusted
Pre-Tax Income	Europe						Pre-Tax Income
	61	76	333	(125)
			4Q 2019

Fourth Quarter 2019 Conference Call 26

4Q 2019 Marketing & Specialties Adjusted Pre-Tax Income

4Q 2019 VS. 4Q 2018 ($MM)

592

(291)(14)

287

4Q 2018	Marketing	Specialties	4Q 2019
Adjusted	& Other		Adjusted
Pre-Tax Income			Pre-Tax Income
	237	50
		4Q 2019

Fourth Quarter 2019 Conference Call 27

4Q 2019 Corporate & Other Adjusted Pre-Tax Loss

4Q 2019 VS. 4Q 2018 ($MM)

4Q 2018	Net Interest	Corporate	4Q 2019
Adjusted	Overhead	Adjusted
Pre-Tax Loss	Expense	& Other	Pre-Tax Loss

(201)

(211)

1

(11)

Fourth Quarter 2019 Conference Call 28

Non-GAAP Reconciliations

			Millions of Dollars
			Except as Indicated
			2019				2018
		Year	4Q	3Q	Year	4Q
Phillips 66
Consolidated Earnings	$	3,076	736	712			5,595	2,240
Pre-Tax Adjustments:
Pending claims and settlements		(21)	-	-	21	-
Pension settlement expense		-	-	-	67	18
Impairments		853	-	853			-	-
Impairments by equity affiliates		47	-	47			28	28
Certain tax impacts		(90)	(90)	-	(119)	(4)
Asset dispositions		(17)	-	(17)			-	-
Lower-of-cost-or-market inventory adjustments		65	23	42			-	-
Tax impact of adjustments1		(214)	17	(235)			(1)	(12)
U.S. tax reform		-	-	-	23	55
Other tax impacts		(42)	3	-	(70)	(65)
Noncontrolling interests		-	-	-	6	-
Adjusted Earnings	$	3,657	689	1,402			5,550	2,260
Earnings Per Share of Common Stock (dollars)	$	6.77	1.64	1.58			11.80	4.82
Adjusted Earnings Per Share of Common Stock (dollars)2	$	8.05	1.54	3.11			11.71	4.87

1) We generally tax effect taxable U.S.-based special items using a combined federal and state statutory income tax rate of approximately 25%. 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	Fourth Quarter 2019 Conference Call 29
entities for which we have made an assertion that the undistributed earnings are permanently reinvested, or transactions occurring in jurisdictions with a valuation allowance.

1. Weighted-averagediluted 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.

Non-GAAP Reconciliations

			Millions of Dollars
			Except as Indicated
			2019				2018
		Year	4Q	3Q	Year	4Q
Midstream
Pre-Tax Income (Loss)	$	684	405	(460)			1,181	379
Pre-Tax Adjustments:
Pending claims and settlements		-	-	-	21	-
Pension settlement expense		-	-	-	9	2
Impairments by equity affiliates		47	-	47			28	28
Impairments		853	-	853			-	-
Adjusted Pre-Tax Income	$	1,584	405	440			1,239	409
Chemicals1
Pre-Tax Income	$	879	150	227			1,025	152
Pre-Tax Adjustments:
Lower-of-cost-or-market inventory adjustments		65	23	42			-	-
Adjusted Pre-Tax Income	$	944	173	269			1,025	152

Fourth Quarter 2019 Conference Call 30

1) Special items reported in the Chemicals segment are reflected in the Olefins & Polyolefins sub-segment.

Non-GAAP Reconciliations

			Millions of Dollars
			Except as Indicated
			2019				2018
		Year	4Q	3Q	Year	4Q
Refining
Pre-Tax Income	$	1,986	345	856			4,535	2,001
Pre-Tax Adjustments:
Pending claims and settlements		(21)	-	-	-	-
Asset dispositions		(17)	-	(17)			-	-
Certain tax impacts		-	-	-	(6)	(4)
Pension settlement expense		-	-	-	43	11
Adjusted Pre-Tax Income	$	1,948	345	839			4,572	2,008
Marketing & Specialties
Pre-Tax Income	$	1,433	377	498			1,557	589
Pre-Tax Adjustments:
Pension settlement expense		-	-	-	9	3
Certain tax impacts		(90)	(90)	-	(113)	-
Adjusted Pre-Tax Income	$	1,343	287	498			1,453	592
Corporate & Other
Pre-Tax Loss	$	(804)	(211)	(178)			(853)	(203)
Pre-Tax Adjustments:
Pension settlement expense		-	-	-	6	2
U.S. tax reform		-	-	-	(16)	-
Adjusted Pre-Tax Loss	$	(804)	(211)	(178)			(863)	(201)

Fourth Quarter 2019 Conference Call 31

Non-GAAP Reconciliations

			Millions of Dollars
			Except as Indicated
		2019					2018
	Year	4Q		3Q	Year	4Q
Midstream - Transportation
Pre-Tax Income	$	946	250	248			770	234
Pre-Tax Adjustments:
None		-	-	-	-	-
Adjusted Pre-Tax Income	$	946	250	248			770	234
Midstream - NGL & Other
Pre-Tax Income	$	522	120	169			305	120
Pre-Tax Adjustments:
Pending claims and settlements		-	-	-	21	-
Pension settlement expense		-	-	-	9	2
Adjusted Pre-Tax Income	$	522	120	169			335	122
Midstream - DCP Midstream
Pre-Tax Income (Loss)	$	(784)	35	(877)			106	25
Pre-Tax Adjustments:
Impairments by equity affiliates		47	-	47			28	28
Impairments		853	-	853			-	-
Adjusted Pre-Tax Income	$	116	35	23			134	53

Fourth Quarter 2019 Conference Call 32

Non-GAAP Reconciliations

			Millions of Dollars
			Except as Indicated
		2019					2018
	Year	4Q		3Q			Year	4Q
Refining - Atlantic Basin / Europe
Pre-Tax Income	$	608	61	296			567	302
Pre-Tax Adjustments:
Certain tax impacts		-	-	-	(5)	(4)
Asset dispositions		(17)	-	(17)			-	-
Pension settlement expense		-	-	-	11	3
Adjusted Pre-Tax Income	$	591	61	279			573	301
Refining - Gulf Coast
Pre-Tax Income	$	364	76	184			1,040	464
Pre-Tax Adjustments:
Pension settlement expense		-	-	-	15	4
Adjusted Pre-Tax Income	$	364	76	184			1,055	468

Fourth Quarter 2019 Conference Call 33

Non-GAAP Reconciliations

			Millions of Dollars
			Except as Indicated
			2019				2018
		Year	4Q	3Q	Year	4Q
Refining - Central Corridor
Pre-Tax Income	$	1,338	333	408			2,817	1,185
Pre-Tax Adjustments:
Pending claims and settlements		(21)	-	-	-	-
Pension settlement expense		-	-	-	10	3
Adjusted Pre-Tax Income	$	1,317	333	408			2,827	1,188
Refining - West Coast
Pre-Tax Income (Loss)	$	(324)	(125)	(32)			111	50
Pre-Tax Adjustments:
Certain tax impacts		-	-	-	(1)	-
Pension settlement expense		-	-	-	7	1
Adjusted Pre-Tax Income (Loss)	$	(324)	(125)	(32)			117	51

Fourth Quarter 2019 Conference Call 34

Non-GAAP Reconciliations

			Millions of Dollars
			Except as Indicated
			2019				2018
		Year	4Q	3Q	Year	4Q
Marketing & Specialties - Marketing & Other
Pre-Tax Income	$	1,199	327	440			1,306	525
Pre-Tax Adjustments:
Certain tax impacts		(90)	(90)	-	(113)	-
Pension settlement expense		-	-	-	9	3
Adjusted Pre-Tax Income	$	1,109	237	440			1,202	528
Marketing & Specialties - Specialties
Pre-Tax Income	$	234	50	58			251	64
Pre-Tax Adjustments:
None		-	-	-	-	-
Adjusted Pre-Tax Income	$	234	50	58			251	64

Fourth Quarter 2019 Conference Call 35

Non-GAAP Reconciliations

			Millions of Dollars (Except as Indicated)
				4Q 2019
	Atlantic Basin/	Gulf Coast	Central	West Coast	Worldwide
		Europe	Corridor
Realized Refining Margins
Income (loss) before income taxes	$	61	76	333	(125)	345
Plus:
Taxes other than income taxes		14	11	7	17	49
Depreciation, amortization and impairments		50	70	34	62	216
Selling, general and administrative expenses		12	10	8	10	40
Operating expenses		221	398	146	363	1,128
Equity in (earnings) losses of affiliates		2	1	(45)	-	(42)
Other segment (income) expense, net		(2)	-	1	1	-
Proportional share of refining gross margins contributed by equity affiliates		14	-	239	-	253
Special items:
None		-	-	-	-	-
Realized refining margins	$	372	566	723	328	1,989
Total processed inputs (thousands of barrels)		52,757	76,110	26,417	32,116	187,400
Adjusted total processed inputs (thousands of barrels)1		52,757	76,110	48,364	32,116	209,347
Income (loss) before income taxes (dollars per barrel)2	$	1.16	1.00	12.61	(3.89)	1.84
Realized refining margins (dollars per barrel)3	$	7.06	7.45	14.92	10.22	9.50

1. Adjusted total processed inputs include our proportional share of processed inputs of an equity affiliate.
2. Income (loss) before income taxes divided by total processed inputs.
3. 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.

Fourth Quarter 2019 Conference Call 36

Non-GAAP Reconciliations

		2019
Numerator ($MM)
Net Income	$	3,377
After-tax interest expense		362
GAAP ROCE earnings		3,739
After-tax special items		581
Adjusted ROCE earnings		4,320
Denominator ($MM)
GAAP average capital employed1		38,622
2019 GAAP ROCE		10%
2019 Adjusted ROCE		11%

Fourth Quarter 2019 Conference Call 37

1) Capital employed is total equity plus total debt

Non-GAAP Reconciliations

			Millions of Dollars
			December 31, 2019
		Phillips 66	Phillips 66	Phillips 66 Excluding
		Consolidated	Partners1	Phillips 66 Partners
Total Debt	$	11,763	3,516	8,247
Total Equity		27,169	2,229	24,940
Debt-to-Capital Ratio		30%		25%
Total Cash & Cash Equivalents	$	1,614	286	1,328
Net Debt-to-Capital Ratio		27%		22%

Fourth Quarter 2019 Conference Call 38

1) Phillips 66 Partners' third-party debt and Phillips 66's noncontrolling interest attributable to Phillips 66 Partners

Non-GAAP Reconciliations

		Millions of Dollars
			4Q 2019
	Growth		Sustaining	Total
Capital Expenditures and Investments
Midstream	$	470	97	567
Refining		139	217	356
Marketing & Specialties		268	30	298
Corporate & Other		2	54	56
Adjusted Capital Spending		879	398	1,277
Capital Spending Funded by Gray Oak Joint Venture Partners (Midstream)		1	-	1
Total	$	880	398	1,278

Millions of Dollars

2019

	Growth	Sustaining	Total
$	1,605	264	1,869
	409	592	1,001
	299	75	374
	7	199	206
	2,320	1,130	3,450
	423	-	423
$	2,743	1,130	3,873

Fourth Quarter 2019 Conference Call 39

Non-GAAP Reconciliations

		Millions of Dollars
		2019
	4Q		Year
Effective Tax Rates
Income before income taxes	$	1,066	4,178
Special items		(67)	837
Adjusted income before income taxes	$	999	5,015
Income tax expense	$	256	801
Special items		(20)	256
Adjusted income tax expense	$	236	1,057
GAAP effective tax rate		24.0%	19.2%
Adjusted effective tax rate		23.6%	21.1%

Fourth Quarter 2019 Conference Call 40