Presentation title slide · This presentation includes non- GAAP financial measures. You can find the reconciliations to comparable GAAP financial measures at the end of the presentation

Investor Update November 2016

NYSE: PSX www.phillips66.com

Cautionary Statement

2

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 forward-looking 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.

Diversified Downstream Company

3

Refining: Enhance Returns

Midstream: Growth

Chemicals: Growth

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

Corporate Strategy

4

Operating Excellence

Growth

Returns

Distributions

High-Performing Organization

Committed to safety, reliability and environmental stewardship while protecting shareholder value

Reshaping our portfolio by capturing growth opportunities in Midstream and Chemicals

Enhancing returns by maximizing earnings from existing assets and investing capital efficiently

Committed to dividend growth, share repurchases and financial strength

Building capability, pursuing excellence and doing the right thing

Industry Average

Operating Excellence

5

Total Recordable Rates (Incidents per 200,000 Hours Worked)

’12 ’13 ’14 ’15

Refining Environmental Metrics

Refining Capacity Utilization (%)

Operating Costs and SG&A ($B)

Phillips 66 CPChem DCP Midstream

See appendix for footnotes.

5.7 5.7 6.1 6.0 4.3

2012 2013 2014 2015 3Q YTD2016

430 317 300 279 188

2012 2013 2014 2015 3Q YTD2016

93% 93% 94% 91% 97%

3% 3% 4% 5% 1%

2012 2013 2014 2015 3Q YTD2016

Planned Maintenance & Turnarounds

3Q YTD ‘16

27 36 42 33 28

2012 2013 2014 2015 3Q YTD2016

Energy Prices and Margins

6

112 109 99 52 42

2012 2013 2014 2015 3Q YTD2016

Brent ($/bbl)

82 90 89

45 43

2012 2013 2014 2015 3Q YTD2016

NGL Weighted Average (cpg) PE Cash Chain Margin (cpp)

Global Market Crack ($/bbl)

16.66 14.03 13.42 16.62 12.48

2012 2013 2014 2015 3Q YTD2016


Midstream

7

Integrated network Transportation DAPL/ETCOP Beaumont Terminal Bayou Bridge Bakken JVs

NGL Sweeny Complex Sand Hills and Southern Hills JV Fractionators

DCP Midstream Gathering and Processing

Sweeny Complex

8

Integrated world-scale midstream, refining and chemicals assets

Sweeny Fractionator One Running to design

LPG Export Terminal Commissioning and start-up 4Q 2016

Global LPG organization securing sales

Narrow international export arb

Platform for long-term earnings growth

Midstream Growth

9

EBITDA ($B)

0.6 1.1

0.4

CurrentOperating

Assets

Growth Market 2018ERun-Rate

Substantial backlog of investments

Focus on enhancing and extending logistics around our assets

Fewer near-term, large investment opportunities

PSXP 2018E run-rate EBITDA of $1.1 B

2018E EBITDA guidance reduced 10-20% from $2.3 B

PSXP

PSX

~ 2.3

Current operating assets, as of October 31, 2016, including logistics assets included in Refining segment. See appendix for additional footnotes.

Phillips 66 Partners


10

Distribution / LP Unit ($) Distribution / LP Unit (cents)

21.3 22.5 27.4 30.2 31.7 34.0 37.0 40.0 42.8 45.8 48.1 50.5 53.1

3Q2013

4Q2013

1Q2014

2Q2014

3Q2014

4Q2014

1Q2015

2Q2015

3Q2015

4Q2015

1Q2016

2Q2016

3Q2016

Coverage Ratio 1.13x 1.10x 1.10x 1.44x 1.32x 1.28x 1.14x 1.15x 1.40x 1.44x 1.15x 1.21x 1.24x

Strong sponsorship

Access to capital markets

Organic opportunities

Recent acquisitions

Distribution guidance unchanged

PSXP Value to PSX

11

Attractive cost of capital

Growing distributions

Funding Midstream growth

PSX multiple uplift

Cumulative Dropdown Proceeds ($B)

Cumulative LP & GP Distributions ($MM)

0.5 1.8 2.7

2013 2014 2015 3Q YTD2016

0

20 96

232

387

2013 2014 2015 3Q YTD2016

Limited Partner General PartnerSee appendix for footnotes.

DCP Midstream

12

Self-help initiatives to improve cash flow

Operating and cost improvements

Contract realignment

Portfolio optimization

Capital discipline

Strengthened balance sheet

Expect to be self-funding

NGL Production (MBD)

402 426 454 410 400

2012 2013 2014 2015 3Q YTD2016

DCP Midstream Adjusted EBITDA ($MM)

DCP Midstream adjusted EBITDA represents Phillips 66’s share. See appendix for additional footnotes.

495 585 487

170 205

2012 2013 2014 2015 3Q YTD2016

Source: Wood Mackenzie, as of August 2016.

Chemicals

13

Middle East and North America NGL continue advantaged feedstock position

Petrochemical production costs reduced globally

Ethane available to supply new U.S. crackers

2016E Average Ethylene Production Cost Curve ($/ton)

Cumulative Capacity MM Tons

0

150

300

450

600

750

0 15 30 45 60 75 90 105 120 135 150

CPChem

M.E. Ethane

N.A. LPG N.A. Ethane

M.E. LPG/Naphtha

W. Europe Naphtha

N.A. Naphtha

W. Europe LPG

Asia Naphtha

Asia LPG/Ethane Rest of World

Asia Coal

CPChem

14

USGC Petrochemicals Project

1,000 kMTA (polyethylene) at Old Ocean, TX

Start-up expected mid-2017 1,500 kMTA (ethylene) at Cedar Bayou, TX

Start-up expected 2H 2017

Expect increased distributions USGC project completion 2018 capital spend ~ $1 B Incremental EBITDA ~ $1 B

Next major project FID post-2018

EBITDA estimate is on a CPChem 100% basis and is based on January 2016 IHS forecast premises.

CPChem USGC Ethane Cracker, Baytown, TX

Refining

15

Diversified portfolio

Enhancing returns

Portfolio management

Yield enhancement

Feedstock flexibility

Growing export capacity

Platform for Midstream growth

Refining Discipline

16 See appendix for footnotes.

(0.2) 1.5

3.7

6.4

3.6 3.4 4.8 1.3

3.3

2009 2010 2011 2012 2013 2014 2015 3Q YTD2016

Adjusted EBITDA ($B) Operating excellence

Volatile business

Market cracks

Crude differentials

Regulatory environment

Significant source of cash

Run well and optimize business

2009–2015 Average

0.7 0.8 1.0 1.1 1.1

2012 2013 2014 2015 2016E

Sustaining Return

Total Capex ($B)

Marketing and Specialties

17

Stable, high-return businesses

Marketing

Enhancing U.S. fuels brands

Adding 100+ European sites by 2020

Growing branded and unbranded gasoline sales

Providing ratable refinery off-take

Specialties

Growing high-performance lubricants


1.1 1.4 1.4 1.5

1.1

2012 2013 2014 2015 3Q YTD2016

Adjusted EBITDA ($B)

Adjusted ROCE (%)

18 28 32 35 35

2012 2013 2014 2015 3Q YTD2016

Capital Allocation

18 2015 PSX adjusted capital expenditures excludes investment in DCP Midstream of $1.5 billion. See appendix for additional footnotes.

Maintain financial strength

Fund sustaining and growth capital

Growing dividend and ongoing share repurchases

Phillips 66 Cash Sources and Uses ($B)

4.3

5.9

4.0

7.0

~ 5

~ 6

2.3

4.8

7.1 6.7

~ 5 ~ 5

2016C 2012 2014 2015 2017C 2013

PSXP Contributions

Dividends/Share Repurchase

PSX Adjusted Capital Expenditures

PSX Adjusted CFO

20.8 22.0 21.6 23.1 22.9

7.8 7.7

20.8 22.4 22.0

23.9 24.3

6.9 6.1 8.6 8.9 8.9

25%

21%

28% 27% 27%

Capital Structure

Investment-grade credit ratings

PSX – BBB+ / A3

PSXP – BBB / Baa3

Over $7 B of available liquidity at PSX

~3.5x debt/EBITDA target at PSXP

Equity and Debt

2012 2014 2015 3Q 2016 2013

PSX Equity $B PSX Debt $B PSX Noncontrolling Interest Attributable to PSXP $B

PSXP Third-party Debt $B

Consolidated Debt-to-Capital 19

Capital Spending

3.5 3.5

5.6

7.7

5.3 4.4

2012 2013 2014 2015 2016Budget

2016E

Consolidated WRB DCP CPChem

1.7 1.8

3.8

5.8

3.9 ~ 3

2012 2013 2014 2015 2016Budget

2016E

Refining M&S PSXPMidstream Investment in DCP Corporate

Consolidated ($B)

Capital Program ($B)

20 Capital program includes Phillips 66’s portion of capital spending by DCP Midstream, CPChem and WRB.


Distributions

0.45 1.33 1.89 2.18 2.45

2H 2012 2013 2014 2015 2016E

Annual Dividend ($/sh)

Cumulative Distributions ($B)

0.6 3.7

8.4 11.1

12.8

2H 2012 2013 2014 2015 3Q YTD2016

Share Repurchases and Exchanges Dividends

Important source of shareholder value

Growing, secure and competitive dividends

Committed to share repurchases

21

Delivering Shareholder Returns

Integrated portfolio

Disciplined capital allocation

Returns focused

Value-added growth

Strong balance sheet

Compelling investment -20%

20%

60%

100%

140%

180%

220%

May-12 Feb-13 Nov-13 Aug-14 May-15 Feb-16 Nov-16

PSX +168%

S&P 100 +61%

Peers +70%

Total Shareholder Return


22

Institutional Investors Contact Rosy Zuklic

General Manager, Investor Relations

C.W. Mallon Manager, Investor Relations

[email protected] 832-765-2297

Investor Update November 2016

NYSE: PSXP www.phillips66partners.com

Phillips 66 Partners Ownership Structure

Phillips 66 Partners GP LLC (PSXP General Partner) General Partner Units

IDRs

Operating Subsidiaries

PSXP Public Unitholders

(NYSE: PSX)

(NYSE: PSXP)

100% ownership interest

39% limited partner interest

Joint Ventures

2% general partner interest

59% limited partner interest

25 As of October 31, 2016.

Phillips 66 Partners

Strong alignment with Phillips 66

Highly integrated assets

Stable and predictable cash flows

Significant growth potential

Financial flexibility

Pecan Grove Marine Dock

26

Distribution Growth

21.25 22.48 27.43 30.17 31.68 34.00 37.00 40.00 42.80 45.80 48.10 50.50 53.10

3Q2013

4Q2013

1Q2014

2Q2014

3Q2014

4Q2014

1Q2015

2Q2015

3Q2015

4Q2015

1Q2016

2Q2016

3Q2016

3Q 2013 distribution represents the minimum quarterly distribution, actual distribution of 15.48 cents equal to MQD prorated.

27

Distribution / LP Unit (cents)

Coverage Ratio 1.13x 1.10x 1.10x 1.44x 1.32x 1.28x 1.14x 1.15x 1.40x 1.44x 1.15x 1.21x 1.24x

64.5 74.0

64.1 84.4

101.9

3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016

Financial Performance

Adjusted EBITDA ($MM)

73.3 87.0

73.8

97.3 110.9

3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016

Distributable Cash Flow ($MM)

Adjusted EBITDA and Distributable Cash Flow shown are attributable to PSXP.

28

Third-Party Acquisitions 2H 2016

29

Explorer Pipeline Acquisition of an additional 2.5% equity interest

Approximately 600 Mbd petroleum products pipeline delivering to more than 70 major cities in 16 states

STACK 50/50 JV with Plains All American Pipeline, L.P. Acquisition of 50% interest

Pipeline transporting crude oil from STACK play in northwestern Oklahoma to Cushing, Okla.

South Louisiana NGL Logistics Assets Announced acquisition of NGL pipeline system and storage caverns in southeastern Louisiana

Recent Acquisitions from Phillips 66

30

1Q 2016 $236 MM, 25% controlling interest in Sweeny Fractionator & Clemens NGL Caverns funded with:

$24 MM take-back equity of PSXP LP and GP units $212 MM sponsor loan payable to PSX

2Q 2016 $775 MM, Standish Pipe & remaining 75% interest in Sweeny Fractionator & Clemens NGL Caverns funded with:

$100 MM take-back equity of PSXP LP and GP units $675 MM sponsor loan payable to PSX

Sponsor loan paid down to $19 MM with $656 MM net proceeds from public unit offering

4Q 2016 $1.3 B, 30 Phillips 66 Crude, Products, and NGL Logistics Assets funded with:

$1.1 B net proceeds from Senior Notes offering $196 MM take-back equity of PSXP LP and GP units

$300 MM 2016 Organic Growth Plan Bayou Bridge Pipeline

Transports crude from Nederland, TX to Lake Charles, LA, and eventually to St. James, LA Increases crude supply options for LA refineries Nederland to Lake Charles leg began operations in April 2016 Expected completion of St. James segment in 2H 2017

Sacagawea Pipeline 76-mile Sacagawea Pipeline and central delivery facility for gathering systems Connection into 100 MBD Palermo crude oil rail-loading facility Provides increased logistics options for shippers in the Bakken region Terminal completed in 4Q 2015; pipeline mechanically complete; expected to be operational in 4Q 2016

Sand Hills Pipeline Adding lateral connections and increasing pumping capacity

31

Highly Integrated and Diversified Asset Portfolio


PSXP Debt Profile

0.3

0.5 0.5

0.3

0.6

2020 2025 2026 2045 2046

$2.2 B Total Debt as of October 31, 2016 5-Year $300 MM notes, 2.646% coupon

10-Year $500 MM notes, 3.605% coupon




Average cost of 3.97%

BBB / Baa3 credit rating

Debt Maturity Profile ($B)

33

Financial Flexibility

Investment-grade credit rating

Financial targets:

30% distribution CAGR 2013-2018

3.5x debt / EBITDA

1.1x annual coverage ratio

Support Phillips 66 Midstream growth

34

-50%

0%

50%

100%

150%

200%

250%

300%

Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16

Closed $340 MM acquisition

Total Return Since IPO


PSXP +113% Alerian MLP Index -22%

IPO Closed $1.0 B

acquisition


Chart reflects total unitholder return July 22, 2013 to November 3, 2016. Distributions assumed to be reinvested in units. Source: Bloomberg.

35



Closed $1.3 B acquisition

Institutional Investors Contact Rosy Zuklic – General Manager, Investor Relations [email protected] | 832-765-2297 C.W. Mallon – Manager, Investor Relations [email protected] | 832-765-2297

Appendix

Value Chains

38

Midcontinent Integrated Growth

39

Midstream Palermo rail terminal/Sacagawea pipeline (PSXP) DAPL/ETCOP

Refining, Marketing & Specialties

Ponca City Yield improvements Optimize 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

As of October 31, 2016.

Western Gulf Creating a World-Class Energy Complex

40

Midstream Sweeny Fractionator One (PSXP)

Freeport LPG export terminal


Sweeny

Yield improvements

Marketing & Specialties

Grow unbranded fuels volumes Focus on high-quality branded assets Increase high-margin exports

Eastern Gulf Refining Logistics and Midstream Growth

41

Midstream Beaumont terminal expansion: +7 MMBbls Bayou Bridge pipeline


Lake Charles

Increase feedstock advantage Product value improvements

Alliance

Product value improvements


Grow unbranded fuels volumes Leverage brand value through licensing Increase high-margin exports Grow performance lubricants and export sales

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


Atlantic Basin Enhancing Returns

Refining, Marketing & Specialties Bayway

FCC reactor modernization Yield improvements


Grow JET and COOP brands in Europe Increase unbranded volumes in the U.K. and U.S. Expand brand licensing in the U.S.

43

Adjusted Free Cash Flow 2012–3Q YTD 2016 Average

44

Adjusted 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. Phillips 66’s share of DCP Midstream, CPChem and WRB adjusted CFO reflects that portion of those entities’ cash flow over which Phillips 66 has significant influence over reinvestment/distribution decisions. DCP Midstream, CPChem and WRB free cash flow calculated based on Phillips 66’s share of after tax cash flow at the enterprise level.

0.9 1.3

0.7 (0.3)

Adjusted CFO & PSXPContributions

Sustaining Capex Available Cash Flow

1.1 0.9

(0.2)

Adjusted CFO Sustaining Capex Adjusted FCF

Midstream ($B) Chemicals ($B)

3.0 2.1

(0.9)


Refining ($B) Marketing & Specialties ($B)

PSXP Contributions

0.9 0.8

(0.1)


2009–2016E Average Adjusted Annualized ROCE

45

23% 22%

10% 9%

M&S Chemicals

Refining Midstream

-10%

0%

10%

20%

30%

40%

Average Capital Employed ($B)

Corporate

P66 Total 11%

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28

(11%)

2.3

7.2

4.9

Cash Undrawn RevolvingCredit Facility

TotalCommittedLiquidity

1.5 2.0

4.0 5.0

2016 2017 2018 2019 2020-30 2031-50

Bonds Revolving Credit Facility

Debt and Liquidity

46

Debt Maturity Profile ($B)

Liquidity ($B)

As of September 30, 2016. Excludes PSXP. Debt maturity profile excludes capital leases.

2016 Sensitivities

47

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

Midstream - DCP (net to Phillips 66)10¢/Gal Increase in NGL price 25

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) 35

Worldwide Refining$1/BBL Increase in Gasoline Margin 230

$1/BBL Increase in Distillate Margin 200

$1/BBL Widening LLS / Maya Differential (LLS less Maya) 45

$1/BBL Widening WTI / WCS Differential (WTI less WCS) 40

$1/BBL Widening WTI / WTS Differential (WTI less WTS) 20

$1/BBL Widening LLS / Medium Sour Differential (LLS less Medium Sour) 15

$1/BBL Widening ANS / WCS Differential (ANS less WCS) 10

10¢/MMBtu Increase in Natural Gas price (10)

Impacts due to Actual Crude Feedstock Differing from Feedstock Assumed in Market Indicators:

Annual Net Income $MM

2016 Outlook

48

4Q 2016

Global Olefins & Polyolefins utilization Mid-80% Refining crude utilization Low-90% Refining turnaround expenses (pre-tax) $170 MM - $200 MM Corporate & other costs (after-tax) $130 MM - $140 MM Effective income tax rate Mid-30% 2016

Refining turnaround expenses (pre-tax) $525 MM - $575 MM Corporate & Other costs (after-tax) $480 MM - $500 MM Depreciation and amortization $1.2 B

Phillips 66 Capital Program

49

2016ESustaining Growth Total Total

Consolidated Capital Expenditures and InvestmentsMidstream(1) 227 2,119 2,346 ~ 1,600Chemicals - - - - Refining(2) 833 384 1,217 ~ 1,100

Marketing and Specialties & Corporate(2) 237 80 317 ~ 3001,297 2,583 3,880 ~ 3,000

Select Equity Affiliates(3)

DCP 98 125 223 CPChem 241 775 1,016 WRB 129 55 184

467 956 1,423

Capital Program(3)

Midstream 324 2,244 2,568 Chemicals 241 775 1,016 Refining 962 439 1,401

Marketing and Specialties & Corporate(2) 237 80 317 1,764 3,539 5,303

(3) Includes Phillips 66’s portion of self-funded capital spending by DCP Midstream, CPChem and WRB.

2016 Budget

(2) Includes non-cash capitalized leases.(1) Includes 100% of Phillips 66 Partners

Millions of Dollars

Footnotes

50

Slide 5 Industry Averages are from: Phillips 66 – American Fuel & Petrochemical Manufacturers (AFPM) refining data, Chevron Phillips Chemical Company LLC (CPChem) – American Chemistry Council (ACC), DCP Midstream, LLC (DCP Midstream) – Gas Processors Association (GPA). Slide 6 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’s NGL component and location mix. PE cash chain margins are ethylene to high-density polyethylene cash chain margins. Source: IHS Energy. Slide 9 Current PSXP EBITDA represents estimated run-rate as of October 31, 2016. Current PSX EBITDA includes terminaling, storage and other logistics assets currently embedded in the Refining segment and represents an estimate of the EBITDA potential of these assets if they were transferred to Midstream at market-based fees. Growth is 2018 estimated run-rate EBITDA of projects completed 2016 or later.

Footnotes

51

Slide 10 3Q 2013 distribution represents the minimum quarterly distribution; actual distribution of 15.48 cents equal to MQD prorated. Slide 11 Cumulative dropdown proceeds represent the cash proceeds paid by Phillips 66 Partners for assets acquired from Phillips 66, including the subsequent repayment of sponsor notes assumed by Phillips 66 Partners in the transaction. Slide 12 DCP Midstream Adjusted EBITDA represents Phillips 66’s proportional share and is net of noncontrolling interests.

Footnotes

52

Slide 16 Adjusted EBITDA is adjusted for special items, noncontrolling interest and proportional share of WRB Refining LP’s (WRB) income taxes, net interest and depreciation and amortization. Refining capex excludes capital leases and excludes Phillips 66’s portion of self-funded capital spending by WRB. Slide 17 Adjusted EBITDA is adjusted for special items, income taxes, net interest and depreciation and amortization. YTD 2016 adjusted ROCE is September 30, 2016 year to date, annualized.

Footnotes

53

Slide 18 2012–2015 PSXP Contributions represent cash received by Phillips 66 in the form of distributions and dropdown proceeds, including the subsequent repayment of sponsor notes assumed by Phillips 66 Partners. 2012–2015 PSX Adjusted Capital Expenditures includes sustaining and growth capital expenditures for Phillips 66 but excludes capital leases and excludes Phillips 66 Partners capital expenditures. 2016C and 2017C PSX Adjusted CFO is calculated using consensus Net Income adding back depreciation and amortization. As of November 2, 2016. Source: S&P Capital IQ. 2016C and 2017C PSXP Contributions represent estimated cash to be received by Phillips 66 in the form of distributions and dropdown proceeds. 2016C and 2017C Dividends/Share Repurchase represent company estimates. 2016C and 2017C PSX Adjusted Capital Expenditures include estimated sustaining and growth capital expenditures for Phillips 66 and exclude Phillips 66 Partners capital expenditures.

Footnotes

54

Slide 21 Annual dividend reflects sum of declared quarterly dividends. There were only two quarterly dividends in 2012 following May 1st spinoff. 2016E reflects one quarterly dividend of $0.56 and three quarterly dividends of $0.63. 2014 share repurchases and exchanges include the PSPI share exchange. Slide 22 Chart reflects total shareholder return May 1, 2012 to November 3, 2016. 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 and Westlake Chemical Corporation.

Footnotes

55

Forecasted and Estimated EBITDA We are unable to present reconciliations of various forecasted and estimated 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. 3Q YTD 2016 3Q YTD 2016 is as of September 30, 2016, or the nine-month period ended September 30, 2016, as applicable; except as otherwise noted.

Non-GAAP Reconciliations (Slide 12)

56

2012 2013 2014 2015Q3 YTD

2016 Proportional Share of DCP MidstreamProportional Share of DCP Midstream net income (loss) attributable to Phillips 66 179$ 210 135 (324) 4 Plus:

Net income attributable to noncontrolling interestsProvision for income taxes 100 122 79 (139) 3 Depreciation and amortization - - - - -

Proportional Share of DCP Midstream EBITDA 279 332 214 (463) 7

Adjustments (pretax):Proportional share of selected equity affiliates income taxes - 4 3 (2) 2 Proportional share of selected equity affiliates net interest 85 110 118 133 97 Proportional share of selected equity affiliates depreciation and amortization 131 139 150 166 138 Lower-of-cost-or-market inventory adjustments - - 2 - - Gain on asset dispositions - - - (30) - Impairments in equity affiliates - - - 366 6 Pending Claims and settlements - - - - (45)

Proportional Share of DCP Midstream Adjusted EBITDA 495$ 585 487 170 205

Millions of Dollars


57

2009 2010 2011 2012 2013 2014 2015Sep YTD

2016Average

2009-2015RefiningRefining net income (loss) attributable to Phillips 66 (556)$ (661) 1,369 3,091 1,747 1,771 2,555 412 1,331 Plus:

Provision for income taxes (296) (121) 808 1,998 1,035 696 1,104 196 746 Net interest expense (1) (2) (1) - - - - - (1) Depreciation and amortization 641 659 664 655 685 704 738 570 678

Refining EBITDA (212) (125) 2,840 5,744 3,467 3,171 4,397 1,178 2,755

Adjustments (pretax):Proportional share of selected equity affiliates income taxes 1 1 4 5 (4) 3 (3) - 1 Proportional share of selected equity affiliates net interest (179) (160) (140) (118) (95) (19) - - (102) Proportional share of selected equity affiliates depreciation and amortization 178 169 184 236 237 245 252 192 214 Asset dispositions - - 234 (185) - (145) (8) - (15) Impairments - 1,500 500 606 - 131 - - 391 Canceled projects - 106 44 - - - - - 21 Pending claims and settlements 39 - - 31 - 23 30 (70) 18 Severence accruals - 28 24 - - - - - 7 Hurricane-related costs - - - 54 - - - - 8 Certain tax impacts - - - - (22) - - - (3) Lower-of-cost-or-market inventory adjustments - - - - - 40 53 - 13 Pension settlement expenses - - - - - - 53 - 8 Recognition of deferred logistics commitments - - - - - - - 30 -

Refining Adjusted EBITDA (173)$ 1,519 3,690 6,373 3,583 3,449 4,774 1,330 3,316

Millions of Dollars


58

2012 2013 2014 2015Sep YTD

2016Marketing and SpecialtiesMarketing and Specialties net income attributable to Phillips 66 544$ 894 1,034 1,187 701 Plus:

Provision for income taxes 319 433 441 465 359 Net interest expense - - - (2) - Depreciation and amortization 147 103 95 97 81

Marketing and Specialties EBITDA 1,010 1,430 1,570 1,747 1,141

Adjustments (pretax):Asset dispositions (4) (40) (125) (242) - Impairments - - - - - Pending claims and settlements 62 (25) (44) - - Exit of a business line - 54 - - - Tax law impacts - (6) - - - Pension settlement expenses - - - 11 -

Marketing and Specialties Adjusted EBITDA 1,068$ 1,413 1,401 1,516 1,141

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2012 2013 2014 2015Sep YTD

2016*M&S ROCENumerator Net Income 544$ 894 1,034 1,187 701 After-tax interest expense - - - - - GAAP ROCE earnings 544 894 1,034 1,187 701 Special Items 99 (9) (152) (240) - Adjusted ROCE earnings 643$ 885 882 947 701

DenominatorGAAP average capital employed* 3,547$ 3,160 2,743 2,735 2,687 Discontinued Operations - - - - - Adjusted average capital employed* 3,547$ 3,160 2,743 2,735 2,687 *Total equity plus debt.

Adjusted M&S ROCE (percent) 18% 28% 32% 35% 35%GAAP M&S ROCE (percent) 15% 28% 38% 43% 35%* ROCE for Sep YTD 2016 annualized.

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2012 2013 2014 2015Phillips 66 Adjusted Cash from Operations Reconciliation Cash From Continuing Operations GAAP 4,259$ 5,942 3,527 5,713 Less: PSXP's portion of CFO(1) - 24 100 176 PSX Adjusted CFO 4,259$ 5,918 3,427 5,537 (1) PSXP's portion of CFO excludes changes in working capital

2012 2013 2014 2015Capital SpendingPSX Consolidated Capital Expenditures 1,701$ 1,779 3,773 5,764 Less: PSXP Capital Expenditures - 4 67 205 Less: Equity Contribution to DCP Midstream - - - 1,500 PSX Adjusted Capital Expenditures 1,701$ 1,775 3,706 4,059

Millions of Dollars

Millions of Dollars

PSXP Adjusted EBITDA and Distributable Cash Flow Reconciliation to Operating Cash Flow (Slide 28)

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Q3 2015* Q4 2015* Q1 2016* Q2 2016 Q3 2016PSXP Reconciliation to Net Cash Provided by Operating ActivitiesNet Cash Provided by Operating Activities 49.1 97.0 71.4 94.6 84.3Plus:

Net interest expense 9.1 9.2 9.7 10.9 9.9Provision for (benefit from) income taxes 0.1 0.1 0.2 0.4 0.2Changes in working capital 13.8 (16.3) 14.4 (1.8) 12.0Undistributed equity earnings (0.9) (2.6) (0.6) 1.7 2.7Accrued environmental costs (0.5) (0.2) — 0.1 (0.2)Other** (4.5) (8.0) (6.6) (6.9) (0.6)

PSXP EBITDA 66.2 79.2 88.5 99.0 108.3Distributions in excess of equity earnings 4.6 6.6 4.1 2.2 0.3Expenses indemnified or prefunded by Phillips 66 1.1 0.5 0.1 3.9 0.1Transaction costs associated with acquisitions 0.4 0.4 1.0 0.7 2.2EBITDA attributable to noncontrolling interests — — — — —EBITDA attributable to Predecessors 1.0 0.3 (19.9) (8.5) —

PSXP Adjusted EBITDA 73.3 87.0 73.8 97.3 110.9Plus:

Deferred revenue impacts† 2.5 (1.6) 1.4 1.3 4.3Less:

Net interest 9.1 9.2 9.9 10.9 9.9Income taxes paid — (0.1) — 0.3 —Maintenance capital expenditures 2.2 2.3 1.2 3.0 3.4

PSXP Distributable Cash Flow 64.5 74.0 64.1 84.4 101.9*Prior-period financial information has been retrospectively adjusted for acquisitions of businesses under common control.**Primarily deferred revenue. †Difference between cash receipts and revenue recognition.

Millions of Dollars

PSXP Adjusted EBITDA and Distributable Cash Flow Reconciliation to Net Income (Slide 28)

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Q3 2015* Q4 2015* Q1 2016* Q2 2016 Q3 2016PSXP Reconciliation to Net IncomeNet Income 50.9 60.5 64.7 73.2 83.1Plus:

Depreciation 6.1 9.4 13.9 14.5 15.1Net interest expense 9.1 9.2 9.7 10.9 9.9Provision for (benefit from) income taxes 0.1 0.1 0.2 0.4 0.2

PSXP EBITDA 66.2 79.2 88.5 99.0 108.3Distributions in excess of equity earnings 4.6 6.6 4.1 2.2 0.3Expenses indemnified or prefunded by Phillips 66 1.1 0.5 0.1 3.9 0.1Transaction costs associated with acquisitions 0.4 0.4 1.0 0.7 2.2EBITDA attributable to noncontrolling interests — — — — —EBITDA attributable to Predecessors 1.0 0.3 (19.9) (8.5)

PSXP Adjusted EBITDA 73.3 87.0 73.8 97.3 110.9Plus:

Deferred revenue impacts** 2.5 (1.6) 1.4 1.3 4.3Less:

Net interest 9.1 9.2 9.9 10.9 9.9Income taxes paid — (0.1) — 0.3 —Maintenance capital expenditures 2.2 2.3 1.2 3.0 3.4

PSXP Distributable Cash Flow 64.5 74.0 64.1 84.4 101.9 *Prior-period financial information has been retrospectively adjusted for acquisitions of businesses under common control.**Difference between cash receipts and revenue recognition.

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FCF Reconcilition Numerator Cash From Operations GAAP 809 348 2,714 1,127 Less: Change in Non-Cash Working Cap. 22 - 295 (255) Cash From Operations (excluding WC) 831 348 3,009 872 Less: P66 Equity affiliate cash from ops 199 348 633 - Add: Equity look through cash from ops 373 1,074 574 - Less: PSXP's portion of CFO 103 - - - Adjusted FCF (excl WC) 902 1,074 2,950 872

Total Capex GAAP 1,891 - 945 204 Less: Growth Capex 1,415 - 202 139 Sustaining Capex 476 - 743 65 Less: P66 Equity affiliate sustaining capex 316 - - - Add: Equity look through sustaining capex 128 197 122 - Less: PSXP's portion of sustaining capex 7 - - - Adjusted Sustaining Capex 281 197 865 65

PSXP Contributions 662 - - -

Adjusted Free Cash Flow 1,283 877 2,085 807

Millions of DollarsAverage 2012-Q3 2016

Midstream Chemicals RefiningMarketing & Specialties


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Phillips 66** Midstream Chemicals Refining M&S Corporate Phillips 66 ROCENumerator Net Income 3,110$ 552 742 1,233 810 (340) After-tax interest expense 118 - - - - 118 GAAP ROCE earnings 3,228 552 742 1,233 810 (223) Special Items (10) (141) 42 248 (56) 10 Adjusted ROCE earnings 3,218$ 411 784 1,481 755 (213)

DenominatorGAAP average capital employed* 28,321 4,471 3,552 14,724 3,214 1,883 Discontinued Operations (114) - - - - - Adjusted average capital employed* 28,208$ 4,471 3,552 14,724 3,214 1,883 *Total equity plus debt.

** Phillips 66 consolidated includes discontinued operations.

Adjusted ROCE (percent) 11% 9% 22% 10% 23% -11%GAAP ROCE (percent) 11% 12% 21% 8% 25% -12%ROCE for Q3 YTD 2016 annualized.

Millions of Dollars Average 2009- 2016E

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Documents

Presentation title slide · This presentation includes non- GAAP financial measures. You can find the reconciliations to comparable GAAP financial measures at the end of the presentation