Phillips 66 : Second-Quarter Earnings Conference Call

Beaumont Terminal NEDERLAND, TX

SECOND QUARTER 2020 CONFERENCE CALL

July 31, 2020

Second Quarter 2020 Conference Call

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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 included in this presentation are based on management's expectations, estimates and projections as of the date they are made. These statements are not guarantees of future performance and you should not unduly rely on them as they 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; potential disruption of our operations due to accidents, weather events, including as a result of climate change, terrorism or cyberattacks; general economic and political developments including: armed hostilities; expropriation of assets; changes in governmental policies relating to NGL, crude oil, natural gas or refined petroleum products pricing, regulation or taxation; and other political, economic and diplomatic developments, including those caused by public health issues and outbreaks; 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.

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Executing the Strategy

Sweeny Fractionators 2 and 3 Construction Site OLD OCEAN, TX

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2Q 2020 Overview

$MM (UNLESS OTHERWISE NOTED)

Dock Construction at Beaumont Terminal

NEDERLAND, TX

Adjusted loss	$ (324)
Adjusted EPS1	(0.74)
Operating cash flow	764
Adjusted capital spending2	901
Shareholder distributions3	393
Common shares outstanding at June 30	437	MM

1)	Dollars per share	Second Quarter 2020 Conference Call	4
2)	Capital expenditures and investments excluding $38 million of capital spending funded by certain joint venture partners	Billings Refinery
3)	Shareholder distributions represent dividends; share repurchases remained suspended	Billings, Montana

2Q 2020 Adjusted Loss

2Q 2020 VS. 1Q 2020 ($MM)

	450
		(215)
						(104)
																								(324)
																			214	19
									(466)
											(195)
												(27)
1Q 2020	Midstream	Chemicals	Refining	Marketing	Corporate	Income	Noncontrolling	2Q 2020
Adjusted									& Specialties		& Other	Taxes		Interests	Adjusted
Earnings																						Loss
			245		89		(867)		293		(224)				190	(50)
						2Q 2020 Adjusted Pre-Tax Income (Loss)

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2Q 2020 Midstream Adjusted Pre-Tax Income

2Q 2020 VS. 1Q 2020 ($MM)

Impacted by reduced throughput volumes

Started full operations on Gray Oak Pipeline

Completed tie-in work at Sweeny Fracs 2 and 3

	(70)
460	(96)
(49)

245

1Q 2020	Transportation	NGL &	DCP	2Q 2020
Adjusted			Other	Midstream	Adjusted
Pre-Tax Income					Pre-Tax Income
	130	83	32
			2Q 2020

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2Q 2020 Chemicals Adjusted Pre-Tax Income

2Q 2020 VS. 1Q 2020 ($MM)

103% O&P utilization

Meeting strong polymer demand for food packaging and medical supplies

Lower O&P margins

193

(87)

(1)

(16)

89

1Q 2020	Olefins &	Specialties,	Other	2Q 2020
Adjusted	Polyolefins	Aromatics &		Adjusted
Pre-Tax Income		Styrenics		Pre-Tax Income
	106	11	(28)
		2Q 2020

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2Q 2020 Refining Adjusted Pre-Tax Loss

2Q 2020 VS. 1Q 2020 ($MM)

1Q 2020	Atlantic	Gulf	Central	West	2Q 2020
Adjusted	Basin /	Coast	Corridor	Coast	Adjusted
Pre-Tax Loss	Europe				Pre-Tax Loss

75% crude utilization

(401)

83% clean product yield

	(867)
(24)

$2.60/BBL realized margin

(183)

$38 MM turnaround costs	77

(336)

(220) (356) (113) (178)

2Q 2020

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2Q 2020 Refining Margins - Market vs. Realized

WORLDWIDE REFINING ($/BBL, UNLESS OTHERWISE NOTED)

(1.03)

(0.95)

(0.67)

7.47
				(2.22)
					2.60
2Q 2020	Configuration	Secondary	Feedstock	Other	2Q 2020
Market		Products			Realized
3:2:1					Margin
	Avg Market Crude: $29.36			35% Market Capture

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2Q 2020 Marketing & Specialties Adjusted Pre-Tax Income

2Q 2020 VS. 1Q 2020 ($MM)

Lower global marketing volumes and margins

Reimaged 313 branded sites worldwide

Refined product exports of 160 MBPD

	(175)
488	(20)

293

1Q 2020	Marketing	Specialties	2Q 2020
Adjusted	& Other		Adjusted
Pre-Tax Income			Pre-Tax Income
	259	34
		2Q 2020

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2Q 2020 Corporate & Other Adjusted Pre-Tax Loss

2Q 2020 VS. 1Q 2020 ($MM)

1Q 2020	Net Interest	Corporate	2Q 2020
Adjusted	Expense	Overhead	Adjusted
Pre-Tax Loss		& Other	Pre-Tax Loss

(197)

(224)

(19)	(8)

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YTD 2020 Cash Flow

$B

2.7

1.4
		(1.8)

(0.4)

(1.2)

(0.4)

1.6

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

Second Quarter 2020 Conference Call

1. Includes cash and cash equivalents
2. Capital expenditures and investments excluding $61 million of capital spending funded by certain joint venture partners

1.9

June 30,

2020

Cash

Balance1

12

3Q 2020 Outlook

Global Olefins & Polyolefins utilization	Mid-90%
Refining crude utilization	Market Conditions
Refining turnaround expenses (pre-tax)	$50 MM - $70 MM
Corporate & Other costs (pre-tax)	$220 MM - $230 MM

Los Angeles Refinery WILMINGTON, CA

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Phillips 66 Branded Marketing Site ST. LOUIS, MO

Questions

and Answers

Phillips 66 Branded Marketing Site ST. LOUIS, MO

Appendix

2020 Estimated Sensitivities

Midstream - DCP (net to Phillips 66)	Annual EBITDA $MM
10¢/Gal Increase in NGL price	9
10¢/MMBtu Increase in Natural Gas price	2
$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)

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

2Q 2020 Cash Flow

$B

1.5

	0.1			(0.9)
0.7
		(0.4)

(0.3)

1.2

March 31,	CFO	Working	Debt	Adjusted	Shareholder	Other
2020	(excluding	Capital		Capital	Distributions
Cash	Working			Spending2
Balance1	Capital)

Second Quarter 2020 Conference Call

1. Includes cash and cash equivalents
2. Capital expenditures and investments excluding $38 million of capital spending funded by certain joint venture partners

1.9

June 30,

2020

Cash

Balance1

17

Capital Structure

		Consolidated PSX				Excluding PSXP
			35%	38%
					31%	34%
	29%	30%		35%
27%	33%	25%	25%
		22%	30%
		27%			28%
	23%
20%					22%
				17%
				14%

27.4	27.2	27.2	23.3		25.1		24.7	24.9
		23.6			21.4	20.7
10.1	11.2	11.8	13.0	14.4								10.7
							9.4
		7.2		8.1	8.2
			1.2			1.3	1.1
3.1	3.0						2.9	3.0
1.6			1.9					1.9
2017	2018	2019	1Q	2Q	2017		2018	2019	1Q	2Q
			2020	2020							2020	2020
	Equity $B	Debt $B	Cash & Cash Equivalents $B	Debt-to-Capital	Net Debt-to-Capital

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2Q 2020 Refining Margins - Market vs. Realized

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

Brent: $29.20

75% crude utilization

17% market capture

0.43

(1.55)

8.90

		(5.82)
		(0.43)		1.53
2Q 2020	Configuration Secondary	Feedstock	Other	2Q 2020
Market	Products			Realized
3:2:1					Margin

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

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2Q 2020 Refining Margins - Market vs. Realized

GULF COAST ($/BBL, UNLESS OTHERWISE NOTED)

LLS: $30.07

79% crude utilization

7% market capture

2.50

(0.84)

5.12

(1.95)

			(4.47)	0.36
2Q 2020	Configuration Secondary	Feedstock	Other	2Q 2020
Market	Products			Realized
3:2:1					Margin

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

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2Q 2020 Refining Margins - Market vs. Realized

CENTRAL CORRIDOR ($/BBL, UNLESS OTHERWISE NOTED)

WTI: $27.80

(0.43)0.10

(0.80)

(1.01)

73% crude utilization

7.92

5.78

73% market capture

2Q 2020	Configuration Secondary	Feedstock	Other	2Q 2020
Market	Products			Realized
3:2:1				Margin

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

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2Q 2020 Refining Margins - Market vs. Realized

WEST COAST ($/BBL, UNLESS OTHERWISE NOTED)

ANS: $30.37

		(1.10)
		(1.02)
72% crude utilization		(1.14)
9.69
(1.38)

5.05

52% market capture

2Q 2020	Configuration Secondary	Feedstock	Other	2Q 2020
Market	Products			Realized
3:2:1				Margin

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

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2Q 2020 Adjusted Loss

2Q 2020 VS. 2Q 2019 ($MM)

1. 
   (186)

1,379

(1,850) (60)

560 30 (324)

(19)

2Q 2019 Adjusted Earnings

Midstream

Chemicals	Refining	Marketing
		& Specialties

Corporate	Income	Noncontrolling	2Q 2020
& Other	Taxes	Interests	Adjusted
			Loss

245 89 (867) 293

2Q 2020 Adjusted Pre-Tax Income (Loss)

(224)

190

(50)

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2Q 2020 Midstream Adjusted Pre-Tax Income

2Q 2020 VS. 2Q 2019 ($MM)

	(115)
423	(60)	(3)

245

2Q 2019	Transportation	NGL & Other	DCP	2Q 2020
Adjusted			Midstream	Adjusted
Pre-Tax Income				Pre-Tax Income
	130	83	32
		2Q 2020

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2Q 2020 Chemicals Adjusted Pre-Tax Income

2Q 2020 VS. 2Q 2019 ($MM)

275

(154)

(23)(9)

89

2Q 2019	Olefins &	Specialties,	Other	2Q 2020
Adjusted	Polyolefins	Aromatics &		Adjusted
Pre-Tax Income		Styrenics		Pre-Tax Income
	106	11	(28)
		2Q 2020

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2Q 2020 Refining Adjusted Pre-Tax Loss

2Q 2020 VS. 2Q 2019 ($MM)

983(478)

(578)

							(867)
			(633)
				(161)
2Q 2019	Atlantic	Gulf	Central	West Coast	2Q 2020
Adjusted	Basin /	Coast	Corridor				Adjusted
Pre-Tax Income	Europe						Pre-Tax Loss
	(220)	(356)	(113)	(178)
			2Q 2020

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2Q 2020 Marketing & Specialties Adjusted Pre-Tax Income

2Q 2020 VS. 2Q 2019 ($MM)

(35)

(25)

353

293

2Q 2019	Marketing	Specialties	2Q 2020
Adjusted	& Other		Adjusted
Pre-Tax Income			Pre-Tax Income
	259	34
		2Q 2020

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2Q 2020 Corporate & Other Adjusted Pre-Tax Loss

2Q 2020 VS. 2Q 2019 ($MM)

2Q 2019	Net Interest	Corporate	2Q 2020
Adjusted	Expense	Overhead	Adjusted
Pre-Tax Loss		& Other	Pre-Tax Loss

(205)

(224)

(17)		(2)

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Non-GAAP Reconciliations

			Millions of Dollars
			Except as Indicated
			2020				2019
		Jun YTD	2Q	1Q	Jun YTD	2Q
Phillips 66
Consolidated Earnings (Loss)	$	(2,637)	(141)	(2,496)			1,628	1,424
Pre-Tax Adjustments:
Pending claims and settlements		(37)	-	(37)			(21)	-
Pension settlement expense		38	38	-	-	-
Impairments		3,006	-	3,006			-	-
Impairments by equity affiliates		15	15	-	-	-
Certain tax impacts		(8)	(8)	-	-	-
Asset dispositions		(84)	(84)	-	-	-
Lower-of-cost-or-market inventory adjustments		72	20	52			-	-
Tax impact of adjustments1		(283)	(208)	(75)			4	-
Other tax impacts		20	20	-	(45)	(45)
Noncontrolling interests		24	24	-	-	-
Adjusted Earnings (Loss)	$	126	(324)	450			1,566	1,379
Earnings (Loss) Per Share of Common Stock (dollars)	$	(6.00)	(0.33)	(5.66)			3.55	3.12
Adjusted Earnings (Loss) Per Share of Common Stock (dollars)2	$	0.28	(0.74)	1.02			3.42	3.02

1. We generally tax effect taxable U.S.-based special items using a combined federal and state annual 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 entities for which we have made an assertion that the undistributed earnings are permanently reinvested, or transactions occurring in jurisdictions with a valuation allowance.

2) Q1 2020 and YTD 2020 are based on adjusted weighted-average diluted shares outstanding of 442,302 thousand and 440,653 thousand, respectively, and other periods are based on the same weighted-averageSecond Quarter 2020 Conference Call

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diluted shares outstanding as that used in the GAAP diluted earnings per share calculation. Income allocated to participating securities, if applicable, in the adjusted earnings per share calculation is the same as that used in the GAAP diluted earnings per share calculation.

Non-GAAP Reconciliations

			Millions of Dollars
			Except as Indicated
			2020				2019
		Jun YTD	2Q	1Q	Jun YTD	2Q
Midstream
Pre-Tax Income (Loss)	$	(378)	324	(702)			739	423
Pre-Tax Adjustments:
Pension settlement expense		5	5	-	-	-
Lower-of-cost-or-market inventory adjustments		1	-	1			-	-
Impairments		1,161	-	1,161			-	-
Asset dispositions		(84)	(84)	-	-	-
Adjusted Pre-Tax Income	$	705	245	460			739	423
Chemicals
Pre-Tax Income	$	211	42	169			502	275
Pre-Tax Adjustments:
Lower-of-cost-or-market inventory adjustments		56	32	24			-	-
Impairments by equity affiliates		15	15	-	-	-
Adjusted Pre-Tax Income	$	282	89	193			502	275

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Non-GAAP Reconciliations

			Millions of Dollars
			Except as Indicated
			2020				2019
		Jun YTD	2Q	1Q	Jun YTD	2Q
Refining
Pre-Tax Income (Loss)	$	(3,139)	(878)	(2,261)			785	983
Pre-Tax Adjustments:
Pending claims and settlements		-	-	-	(21)	-
Pension settlement expense		26	26	-	-	-
Impairments		1,845	-	1,845			-	-
Lower-of-cost-or-market inventory adjustments		-	(15)	15			-	-
Adjusted Pre-Tax Income (Loss)	$	(1,268)	(867)	(401)			764	983
Marketing & Specialties
Pre-Tax Income	$	799	286	513			558	353
Pre-Tax Adjustments:
Lower-of-cost-or-market inventory adjustments		15	3	12			-	-
Pending claims and settlements		(37)	-	(37)			-	-
Pension settlement expense		4	4	-	-	-
Adjusted Pre-Tax Income	$	781	293	488			558	353
Corporate & Other
Pre-Tax Loss	$	(416)	(219)	(197)			(415)	(205)
Pre-Tax Adjustments:
Pension settlement expense		3	3	-	-	-
Certain tax impacts		(8)	(8)	-	-	-
Adjusted Pre-Tax Loss	$	(421)	(224)	(197)			(415)	(205)

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Non-GAAP Reconciliations

			Millions of Dollars
			Except as Indicated
			2020				2019
		Jun YTD	2Q	1Q	Jun YTD	2Q
Midstream - Transportation
Pre-Tax Income	$	414	214	200			448	245
Pre-Tax Adjustments:
Asset dispositions		(84)	(84)	-	-	-
Adjusted Pre-Tax Income	$	330	130	200			448	245
Midstream - NGL & Other
Pre-Tax Income	$	257	78	179			233	143
Pre-Tax Adjustments:
Pension settlement expense		5	5	-	-	-
Adjusted Pre-Tax Income	$	262	83	179			233	143
Midstream - DCP Midstream
Pre-Tax Income (Loss)	$	(1,049)	32	(1,081)			58	35
Pre-Tax Adjustments:
Impairments		1,161	-	1,161			-	-
Lower-of-cost-or-market inventory adjustments		1	-	1			-	-
Adjusted Pre-Tax Income	$	113	32	81			58	35

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Non-GAAP Reconciliations

			Millions of Dollars
			Except as Indicated
			2020				2019
		Jun YTD	2Q	1Q	Jun YTD	2Q
Chemicals - Olefins & Polyolefins
Pre-Tax Income	$	247	70	177			479	260
Pre-Tax Adjustments:
Lower-of-cost-or-market inventory adjustments		37	21	16			-	-
Impairments by equity affiliates		15	15	-	-	-
Adjusted Pre-Tax Income	$	299	106	193			479	260
Chemicals - Specialties, Aromatics & Styrenics
Pre-Tax Income	$	4	-	4			60	34
Pre-Tax Adjustments:
Lower-of-cost-or-market inventory adjustments		19	11	8			-	-
Adjusted Pre-Tax Income	$	23	11	12			60	34
Chemicals - Other
Pre-Tax Loss	$	(40)	(28)	(12)			(37)	(19)
Pre-Tax Adjustments:
None		-	-	-	-	-
Adjusted Pre-Tax Loss	$	(40)	(28)	(12)			(37)	(19)

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Non-GAAP Reconciliations

			Millions of Dollars
			Except as Indicated
			2020				2019
		Jun YTD	2Q	1Q	Jun YTD	2Q
Refining - Atlantic Basin / Europe
Pre-Tax Income (Loss)	$	(864)	(227)	(637)			251	258
Pre-Tax Adjustments:
Impairments		441	-	441			-	-
Pension settlement expense		7	7	-	-	-
Adjusted Pre-Tax Income (Loss)	$	(416)	(220)	(196)			251	258
Refining - Gulf Coast
Pre-Tax Income (Loss)	$	(1,208)	(365)	(843)			104	222
Pre-Tax Adjustments:
Pension settlement expense		9	9	-	-	-
Impairments		670	-	670			-	-
Adjusted Pre-Tax Income (Loss)	$	(529)	(356)	(173)			104	222

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Non-GAAP Reconciliations

			Millions of Dollars
			Except as Indicated
			2020				2019
		Jun YTD	2Q	1Q	Jun YTD	2Q
Refining - Central Corridor
Pre-Tax Income (Loss)	$	(331)	(104)	(227)			597	520
Pre-Tax Adjustments:
Pending claims and settlements		-	-	-	(21)	-
Lower-of-cost-or-market inventory adjustments		-	(15)	15			-	-
Impairments		435	-	435			-	-
Pension settlement expense		6	6	-	-	-
Adjusted Pre-Tax Income (Loss)	$	110	(113)	223			576	520
Refining - West Coast
Pre-Tax Loss	$	(736)	(182)	(554)			(167)	(17)
Pre-Tax Adjustments:
Impairments		299	-	299			-	-
Pension settlement expense		4	4	-	-	-
Adjusted Pre-Tax Loss	$	(433)	(178)	(255)			(167)	(17)

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Non-GAAP Reconciliations

				Millions of Dollars
			Except as Indicated
			2020				2019
		Jun YTD	2Q	1Q	Jun YTD	2Q
Marketing & Specialties - Marketing & Other
Pre-Tax Income	$	726	255	471			432	294
Pre-Tax Adjustments:
Pension settlement expense		4	4	-	-	-
Pending claims and settlements		(37)	-	(37)			-	-
Adjusted Pre-Tax Income	$	693	259	434			432	294
Marketing & Specialties - Specialties
Pre-Tax Income	$	73	31	42			126	59
Pre-Tax Adjustments:
Lower-of-cost-or-market inventory adjustments		15	3	12			-	-
Adjusted Pre-Tax Income	$	88	34	54			126	59

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Non-GAAP Reconciliations

			Millions of Dollars (Except as Indicated)
				2Q 2020
	Atlantic Basin/	Gulf Coast	Central	West Coast	Worldwide
		Europe	Corridor
Realized Refining Margins
Loss before income taxes	$	(227)	(365)	(104)	(182)	(878)
Plus:
Taxes other than income taxes		15	25	14	22	76
Depreciation, amortization and impairments		49	75	33	63	220
Selling, general and administrative expenses		12	10	7	9	38
Operating expenses		190	277	120	216	803
Equity in (earnings) losses of affiliates		3	(1)	79	-	81
Other segment expense, net		3	-	3	1	7
Proportional share of refining gross margins contributed by equity affiliates		16	-	92	-	108
Special items:
Lower-of-cost-or-market inventory adjustments		-	-	(35)	-	(35)
Realized refining margins	$	61	21	209	129	420
Total processed inputs (thousands of barrels)		39,121	61,032	20,778	25,737	146,668
Adjusted total processed inputs (thousands of barrels)1		39,121	61,032	36,067	25,737	161,957
Loss before income taxes (dollars per barrel)2	$	(5.80)	(5.98)	(5.01)	(7.07)	(5.99)
Realized refining margins (dollars per barrel)3	$	1.53	0.36	5.78	5.05	2.60

1. Adjusted total processed inputs include our proportional share of processed inputs of an equity affiliate.
2. 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.

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Non-GAAP Reconciliations

		2020 June YTD
Numerator ($MM)
Net Loss	$	(2,494)
After-tax interest expense		180
GAAP ROCE loss		(2,314)
After-tax special items		2,739
Adjusted ROCE earnings	$	425
Denominator ($MM)
GAAP average capital employed1	$	38,337
2020 Annualized GAAP ROCE		(12)%
2020 Annualized Adjusted ROCE		2 %

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1) Capital employed is total equity plus total debt

Non-GAAP Reconciliations

		Millions of Dollars (Except as Indicated)
			June 30, 2020
		Phillips 66	Phillips 66	Phillips 66 Excluding
		Consolidated	Partners1	Phillips 66 Partners
Total Debt	$	14,446	3,707	10,739
Total Equity		23,295	2,550	20,745
Debt-to-Capital Ratio		38 %		34 %
Total Cash	$	1,890	7	1,883
Net Debt-to-Capital Ratio		35 %		30 %

Second Quarter 2020 Conference Call

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

Non-GAAP Reconciliations

		Millions of Dollars
			2Q 2020
		Growth	Sustaining	Total
Capital Expenditures and Investments
Midstream	$	543	54	597
Refining		67	97	164
Marketing & Specialties		73	13	86
Corporate & Other		1	53	54
Adjusted Capital Spending		684	217	901
Capital Spending Funded by Certain Joint Venture Partners (Midstream)		38	-	38
Total	$	722	217	939

Millions of Dollars

2020 June YTD

	Growth	Sustaining	Total
$	1,072	105	1,177
	165	244	409
	89	22	111
	2	102	104
	1,328	473	1,801
	61	-	61
$	1,389	473	1,862

Second Quarter 2020 Conference Call

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Non-GAAP Reconciliations

		Millions of Dollars
		Except as Indicated
		2Q 2020
Effective Tax Rates
Loss before income taxes	$	(445)
Special items		(19)
Adjusted loss before income taxes	$	(464)
Income tax benefit	$	(378)
Special items		188
Adjusted income tax benefit	$	(190)
GAAP effective tax rate		84.9 %
Adjusted effective tax rate		40.9 %

Second Quarter 2020 Conference Call

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