phillips 66 2016 fact book -...
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2016 Fact BookPHILLIPS 66
Table of Contents
Company Overview 1
Financial Highlights 4
Midstream 6
Chemicals 20
Refining 26
Marketing and Specialties 38
Non-GAAP Reconciliations 42
Contact InformationHeadquarters2331 CityWest Blvd.Houston, TX 77042281-293-6600
RegisteredOffice2711 Centerville RoadWilmington, DE 19808
Phillips 66 Investor RelationsRosy Zuklic, General Manager, Investor Relations
C.W. Mallon, Manager, Investor Relations
Telephone: 1-832-765-2297Email: [email protected]: investor.phillips66.com
Phillips 66 Media RelationsTelephone: 1-855-841-2368Email: [email protected]: www.phillips66.com/newsroom
AnelectronicfileofthisFactBookcanbeobtained by visiting www.phillips66.com, selecting the Investors tab and then Financial & Operating Information. The fileislocatedintheAnnualReportssection of that page.
ON THE COVER: Phillips 66 100,000 barrels-per-day NGL fractionator in Old Ocean, Texas.
A deep understanding of these businesses enables the company to grow and to allocate capital to the best opportunities. Headquartered in Houston, Phillips 66 has 14,000 employees committed to safety and operating
excellence. As of Dec. 31, 2015, we had $49 billion in assets. The company’s stock trades on the New York Stock Exchange under the ticker symbol PSX, while Phillips 66 Partners trades under the ticker symbol PSXP.
Company Overview
Phillips 66 is a diversified energy manufacturing and logistics company with a portfolio of integrated businesses: Midstream, Chemicals, Refining, and Marketing and Specialties. Our company processes, transports, stores and markets fuels and products globally. Phillips 66 Partners LP, our master limited partnership, is an integral part of the portfolio.
MidstreamGathers, processes, transports and markets natural gas, and transports, fractionates and markets natural gas liquids in the United States. This segment also transports crude oil and other feedstocks to ourrefineriesandotherlocations;deliversrefinedand specialty products to market; and provides terminaling and storage services for crude oil and petroleum products. The Midstream segment includes our investment in Phillips 66 Partners LP and our 50 percent equity investment in DCP Midstream, LLC (DCP Midstream).
ChemicalsManufactures and markets petrochemicals and plastics worldwide. The segment consists of a 50 percent equity investment in Chevron Phillips Chemical Company LLC (CPChem). CPChem has advanced, proprietary product and process technologies; global marketing reach; cost-advantaged assets concentrated in resource-rich North America and the Middle East; and expertise in executing very large projects.
RefiningRefinescrudeoilandotherfeedstocksat14refineriesin the United States and Europe, and focuses on operating excellence, optimization, yield improvement and increasing margins. The business has a globalrefiningcapacity of 2.2 million barrels of crude oil per day.
Marketing and SpecialtiesMarketsrefinedpetroleumproducts (such as gasolines, distillates and aviation fuels), mainly in the United States and Europe. In the U.S., fuel is distributed under the Phillips 66, Conoco and 76 brands. In Europe, we distribute through JET and COOP branded outlets. The segment includes the manufacturing and marketingoffinishedlubricants and specialty products as well as power generation operations.
1
Strategic PrioritiesThe 14,000 employees of Phillips 66 are executing the strategy that has guided the company since its creation in 2012: maintain strong operating excellence, deliver profitablegrowth,enhancereturnsoncapital,growshareholder distributions and develop its employees to sustain a high-performing organization.
MAINTAIN STRONG OPERATING EXCELLENCE
For Phillips 66, operating excellence encompasses personalsafety,processsafety,reliability,costefficiencyand environmental stewardship. Safety is a core value. The company’s safety record in 2015 tied for its best ever. Phillips 66 is determined to be the safest and most reliable company in its industry.
By maintaining strong operating excellence, we protect each other, contribute to the well-being of the communities that support us, deliver quality products to customers and enhance shareholder value.
DELIVER PROFITABLE GROWTH
We are reshaping the company’s portfolio by investing capital in higher-valued businesses. We continuously test our capital allocation decisions through a range of economic and market scenarios.
Our 2016 consolidated capital budget is $3.9 billion, consisting of $2.6 billion of growth capital and $1.3 billion of sustaining capital. Most of the growth capital will fund infrastructure projects in our Midstream segment. The sustaining capital will focus on maintaining high levels ofsafetyandreliabilityinourRefiningbusiness.Our 2016 capital budget excludes our portion of planned capital spending by joint ventures DCP Midstream, CPChem and WRB totaling $1.4 billion, all of which are expected to be self-funded.
The Midstream segment is at the core of our growth plans. The segment consists of natural gas liquids (NGL) and transportation businesses, Phillips 66 Partners, and our 50 percent interest in DCP Midstream.
Through our 50-50 joint venture with Chevron, CPChem, we continue to invest in our high-return Chemicals segment. CPChem is one of the world’s leading petrochemical
companies, and its U.S. Gulf Coast petrochemicals project is approximately 80 percent complete with startup planned for the second half of 2017.
ENHANCE RETURNS ON CAPITAL
A disciplined capital allocation process ensures that we focus investments in projects that generate competitive returns throughout the business cycle. Phillips 66’s Refiningsegmentisasignificantcompetitorinthedomesticfuelsindustry,with11ofits14refineries located in the United States.
Through planned operating enhancements, we expect todriveefficiencyandimprovereturns.Themajorityof the improvement will come from higher product yields and a focus on controllable costs. In early 2015, we sold the Bantry Bay terminal, a storage complex located in Ireland. And in August 2016, we announced the sale ofourWhitegateRefinery,locatednearCork,Ireland. The transaction is expected to close in the third quarter of 2016.
GROW SHAREHOLDER DISTRIBUTIONS
During 2015, we increased the dividend by 12 percent and returned $2.7 billion of capital to shareholders through dividends and share repurchases. Phillips 66 is committed to paying a regular dividend that is secure, has a competitive yield and increases annually. In May 2016, Phillips 66 announced a 12.5 percent increase in the quarterly dividend, the sixth increase since the company’s formation. From the company’s 2012 inception to June 30, 2016, we have returned $12.3 billion of capital to shareholders.
BUILD ON PHILLIPS 66’s HIGH-PERFORMING ORGANIZATION
Our purpose is to provide energy and improve lives, and we are governed by three strongly held values: safety, honor and commitment. Our employees are committed to building capability, pursuing excellence and doing the right thing. We strive to attract, train, develop and retain individuals with the knowledge and skills to implement our business strategy and the character to live our values.
Company Overview
PHILLIPS 66 2016 FACT BOOK2
FREEPORT TERMINAL
CLEMENS STORAGE CAVERNS
BEAUMONT MARINE TERMINAL
Texas-Based Midstream Assets
3
Financial Highlights(Millions of Dollars Except Per Share Amounts) 2015 2014 2013
Net income attributable to Phillips 66 $ 4,227 $ 4,762 $ 3,726
Midstream 13 507 469
Chemicals 962 1,137 986
Refining 2,555 1,771 1,747
Marketing and Specialties 1,187 1,034 894
Corporate (490 ) (393 ) (431 )
Adjusted earnings 4,193 3,782 3,643
Midstream 248 508 469
Chemicals 952 1,209 986
Refining 2,527 1,576 1,734
Marketing and Specialties 947 882 885
Corporate (481 ) (393 ) (431 )
Adjusted EBITDA 8,513 7,792 7,408
Midstream 843 1,170 1,067
Chemicals 1,701 2,101 1,710
Refining 4,774 3,449 3,583
Marketing and Specialties 1,516 1,401 1,413
Corporate (321 ) (329 ) (365 )
Average Capital Employed 31,749 29,595 28,130
Capital Expenditures and Investments 5,764 3,773 1,779
Debt-to-capital ratio 27 % 28 % 21 %
Net-debt-to-capital ratio 20 % 13 % 3 %
Cash and cash equivalents 3,074 5,207 5,400
Total assets 48,580 48,692 49,769
Total debt 8,887 8,635 6,125
Total equity 23,938 22,037 22,392
Cash from operating activities 5,713 3,529 6,027
Cash dividends paid per share of common stock (dollars) 2.18 1.89 1.33
ADJUSTED EARNINGS
($ in millions)CUMULATIVE TOTAL SHAREHOLDER RETURN
($100 invested on May 1, 2012)
ADJUSTED RETURN ON CAPITAL EMPLOYED (ROCE)
5/1/12 12/31/12 12/31/13 12/31/15
$150
$200
$300
$250
$100
Phillips 66Peer Group*
S&P 500S&P 100
12/31/14 15
4,1933,7823,643
1413 15
14%14%14%
1413
* Celanese, Delek, Dow, Eastman Chemical, Energy Transfer, Enterprise Products, HollyFrontier, Huntsman, Marathon Petroleum, Oneok, PBF Energy, Targa Resources, Tesoro, Valero, Western Refining, Westlake Chemical
4 PHILLIPS 66 2016 FACT BOOK
Continuous improvement in safety, environmental stewardship,reliabilityandcostefficiencyisfundamentalfor our company and employees. We employ rigorous training and audit programs to drive ongoing improvement in both personal and process safety as we strive for zero incidents. Controlling operating expenses and overhead
costs, within the context of our commitment to safety and environmental stewardship, is a high priority. We actively monitor these costs using various methodologies. Byoptimizingutilizationratesatourrefineriesthroughreliable and safe operations we are able to capture the value available in the market.
TOTAL RECORDABLE RATES (Incidents per 200,000 hours worked)
OPERATING COSTS AND SG&A ($ in billions)
REFINING ENVIRONMENTAL METRICS
REFINING CAPACITY UTILIZATION (Percent)
Planned Maintenance & Turnarounds
Industry Average1
1 Industry averages for: Phillips 66, American Fuel & Petrochemical Manufacturers (U.S. refining sector); CPChem, American Chemistry Council; DCP, Gas Processors Association.
Phillips 66 CPChem DCP
Operating Excellence
14 15
300317430
279
1312
14
6.15.7
6.0
5.7
1312 15 14
94%93%
91%
93%
1312
3% 3% 4%
15
5%
14 151312
1.5
0.5
1.0
0
141312
0
15
1.5
0.5
1.0
141312
0
15
1.5
0.5
1.0
5
Midstream
SWEENY FRACTIONATOR ONEPHILLIPS 66 2016 FACT BOOK6
OPERATING HIGHLIGHTS
Midstream Overview
1 Includes CPChem railcars that Phillips 66 manages.
Midstream
This business gathers, processes, transports, fractionates and markets natural gas and natural gas liquids. In addition, the segment transports crude oil and other feedstocks to our refineries and other locations, delivers refined and specialty products to market and provides storage services for crude oil and petroleum products. This segment consists of three business lines: NGL, Transportation and DCP Midstream.
2015 2014 2013
NGL
NGL fractionated (MBD) 112 109 115
TRANSPORTATION
Approximate miles of pipeline 18,000 18,000 18,000
Approximate number of railcars managed1 12,300 11,400 10,000
Crude-dedicated railcars 3,700 3,500 2,000
Crude oil terminals 16 15 14
Finished products terminals 39 39 39
LPG terminals 5 5 5
Storage locations 37 37 37
Combined total recordable rate (safety incidents per 200,000 hours) 0.29 0.20 0.14
DCP MIDSTREAM (100%)
Total natural gas throughput (TBtu/d) 7.1 7.3 7.1
NGL produced (MBD) 410 454 426
Combined total recordable rate (safety incidents per 200,000 hours) 0.51 0.58 0.56
BEAUMONT TERMINAL
7
BillingsRe�nery
BorgerRe�nery
SweenyRe�nery
AllianceRe�nery
Lake CharlesRe�nery
San FranciscoRe�nery
Los AngelesRe�nery
FerndaleRe�nery
Bayway Re�nery
Rodeo
Santa Maria
Wood RiverRe�nery
Ponca CityRe�nery
KCP
L
Blue
Blue
Skelly-Belvieu
Skelly-Belvieu
Southern Hills*
So. Hills*
Sand Hills*
Powder R
iver
Powder R
iver
Medford*
Chi
shol
m
Roc
kies
Expr
ess
Rockies Express
Rockies Express
Eagle Ford Gathering Pipeline System*
NorthSpokane
RockSprings
E. St.Louis*
JeffersonCity*
Mount Vernon
NorthSalt Lake City
LosAngeles
GreatFalls
MosesLake
Sheridan
Linden
Har
bor
Tremley Pt. (MT)
Helena
Missoula
Spokane
Renton
Tacoma (MT)
Portland (MT)
Bozeman
Casper
Sacramento
Richmond (MT)
Torrance Colton
AlbuquerqueATA Amarillo
Oklahoma City Terminal
Glenpool North
PaolaGold*
Hartford (MT)*Kansas City*
Explorer*
Borger to Denver
Lubbock
SA
AL
Sunray
Wichita N.*
Cherokee North/Brown LineStandish*
Gold*
Cher
okee
East
Explorer*
Hear
tland
La Junta
Denver
Lincoln
Des Moines
CarsonWilmington
Pioneer
Seminoe
Sem
inoe
Yellowstone
Yellowstone
Wichita S.
Explorer*
Dakota Access Pipeline – DAPL (UC)
Ener
gy T
rans
fer (
UC)
Line 200Line 100
Line 300
Line 4
00
Oklahoma Crude Line
Line O
Bighorn
Glacier
Cutbank
West TexasCrude Gathering
North TexasCrude
Odessa
Wichita Falls
Roundup
Sacagawea (UC)*
Bear
toot
h
Cushing
Cher
okee
Sout
h
WA
Line
Line
80
Junction Terminal
Borger
Conway
FerndaleRail Terminal*
MissoulaRail Terminal Palermo
Rail Terminal*
Bayway Rail Term.*
Thompson FallsRail Terminal
Key Phillips 66 and Phillips 66 Partners U.S. Assets and Operations
Key Phillips 66 and Phillips 66 Partners U.S. Assets and Operations
As of May 31, 2016
MTUCGCF
*
Operated Pipelines
Jointly Owned or Non-Operated Pipelines
Re�nery
Rail Terminal
Fractionator
Pipeline System
Products Terminal
Crude Oil Terminal
LPG Terminal
Coke Terminal
Underground Storage
Denotes Marine Terminal
Denotes Under Construction
Denotes Gulf Coast Fractionator
Products Pipeline
Crude Oil Pipeline
NGL/LPG Pipeline
Idle Pipeline
Products Pipeline
Crude Oil Pipeline
Natural Gas Pipeline
NGL/LPG Pipeline
Denotes Phillips 66 Partners’ Asset
Shale Basins
MTUCGCF
*
Operated Pipelines
Jointly Owned or Non-Operated Pipelines
Re�nery
Rail Terminal
Fractionator
Pipeline System
Products Terminal
Crude Oil Terminal
LPG Terminal
Coke Terminal
Underground Storage
Denotes Marine Terminal
Denotes Under Construction
Denotes Gulf Coast Fractionator
Products Pipeline
Crude Oil Pipeline
NGL/LPG Pipeline
Idle Pipeline
Products Pipeline
Crude Oil Pipeline
Natural Gas Pipeline
NGL/LPG Pipeline
Denotes Phillips 66 Partners’ Asset
Shale Basins
BillingsRe�nery
BorgerRe�nery
SweenyRe�nery
AllianceRe�nery
Lake CharlesRe�nery
San FranciscoRe�nery
Los AngelesRe�nery
FerndaleRe�nery
Bayway Re�nery
Rodeo
Santa Maria
Wood RiverRe�nery
Ponca CityRe�nery
KCP
L
Blue
Blue
Skelly-Belvieu
Skelly-Belvieu
Southern Hills*
So. Hills*
Sand Hills*
Powder R
iver
Powder R
iver
Medford*
Chi
shol
m
Roc
kies
Expr
ess
Rockies Express
Rockies Express
Eagle Ford Gathering Pipeline System*
NorthSpokane
RockSprings
E. St.Louis*
JeffersonCity*
Mount Vernon
NorthSalt Lake City
LosAngeles
GreatFalls
MosesLake
Sheridan
Linden
Har
bor
Tremley Pt. (MT)
Helena
Missoula
Spokane
Renton
Tacoma (MT)
Portland (MT)
Bozeman
Casper
Sacramento
Richmond (MT)
Torrance Colton
AlbuquerqueATA Amarillo
Oklahoma City Terminal
Glenpool North
PaolaGold*
Hartford (MT)*Kansas City*
Explorer*
Borger to Denver
Lubbock
SA
AL
Sunray
Wichita N.*
Cherokee North/Brown LineStandish*
Gold*
Cher
okee
East
Explorer*
Hear
tland
La Junta
Denver
Lincoln
Des Moines
CarsonWilmington
Pioneer
Seminoe
Sem
inoe
Yellowstone
Yellowstone
Wichita S.
Explorer*
Dakota Access Pipeline – DAPL (UC)
Ener
gy T
rans
fer (
UC)
Line 200Line 100
Line 300
Line 4
00
Oklahoma Crude Line
Line O
Bighorn
Glacier
Cutbank
West TexasCrude Gathering
North TexasCrude
Odessa
Wichita Falls
Roundup
Sacagawea (UC)*
Bear
toot
h
Cushing
Cher
okee
Sout
h
WA
Line
Line
80
Junction Terminal
Borger
Conway
FerndaleRail Terminal*
MissoulaRail Terminal Palermo
Rail Terminal*
Bayway Rail Term.*
Thompson FallsRail Terminal
BorgerRe�nery
SweenyRe�nery
AllianceRe�nery
Lake CharlesRe�nery
San FranciscoRe�nery
Los AngelesRe�nery
Rodeo
Santa Maria
Wood RiverRe�nery
Ponca CityRe�nery
KCP
L
Blue
Blue
Skelly-Belvieu
Southern Hills*
Powder R
iver
Powder R
iver
Medford*
Clemens
Chi
shol
m
Roc
kies
Expr
ess
Rockies Express
Rockies Express
RockSprings
E. St.Louis*
JeffersonCity*
Mount Vernon
NorthSalt Lake City
LosAngeles
Sheridan
Casper
Sacramento
Richmond (MT)
Torrance Colton
AlbuquerqueATA Amarillo
Oklahoma City Terminal
Glenpool North
PaolaGold*
Hartford (MT)*Kansas City*
Borger to Denver
Lubbock
Pasadena*
Beaumont (MT)
SA
AL
Sunray
Wichita N.*
Cherokee North/Brown LineStandish*
Gold*
Cher
okee
East
Explorer*He
artla
nd
La Junta
Denver
Lincoln
Des Moines
CarsonWilmington
Pioneer
Seminoe
Sem
inoe
Wichita S.
Westlake
Dakota Access Pipeline – DAPL (UC)
Line 200Line 100
Line 300
Line 4
00
Oklahoma Crude Line
Line O
Bighorn
West TexasCrude Gathering
Clifton Ridge (MT)*
North TexasCrude
Odessa
Louisiana Crude Gathering
Wichita Falls
Freeport (MT, UC)
Pecan Grove (MT)*
Bear
toot
h
Cushing
LCPL Bayou Bridge (UC)*
Cher
okee
Sout
h
WA
Line
Line
80
Bayou Bridge*
Junction Terminal
Borger
Conway
GCF
Lake CharlesCoke Handling
Clemens Caverns*
Sweeny Fractionator One*
Midstream
Natural Gas LiquidsPhillips 66 holds interests in four natural gas liquids (NGL) fractionators and gathering systems at strategic NGL hubs in the United States. The 100,000 barrels- per-day (BPD) Sweeny Fractionator One is located in Old Ocean, Texas, and owned by Phillips 66 Partners. In addition, Phillips 66 owns: 22.5 percent of Gulf Coast Fractionators, which owns a fractionating facility in Mont Belvieu, Texas; 12.5 percent of the Enterprise Mont Belvieu fractionator; and 40 percent of the Conway fractionator, in Conway, Kansas.
Along with fractionators, Phillips 66 owns interests in several NGL gathering and interstate transmission pipeline systems. These pipelines gather and deliver raw or mixed NGL, also referred to as Y-Grade, to supply the company’s facilities at its joint-venture Borger RefineryinTexasandthefractionatorsinOldOcean,Mont Belvieu and Conway, as well as the Mont Belvieu market center.
Phillips 66 has supply and trading operations that manageNGLvolumerequirementsforitsrefineries and fractionators.
In December 2015, Phillips 66 began operating Sweeny FractionatorOne,whichiswithinourSweenyRefinerycomplex and supplies purity ethane and LPG to the
petrochemical industry and heating markets. The fractionator is supported by 250 miles of new pipelines and the Clemens Caverns storage facility located near Brazoria, Texas, with connectivity to local petrochemical customers, the Mont Belvieu market hub and our marine terminal in Freeport, Texas. In 2016 Phillips 66 Partners acquired the fractionator and associated caverns.
During 2015, construction progressed on the Freeport LPG Export Terminal located at the site of our existing marine terminal in Freeport, Texas. The terminal expansion will leverage our transportation and storage infrastructure to supply petrochemical, heating and transportation markets globally. In addition, a 100,000 BPD unit to upgrade domestic propane for export is being installed near Sweeny Fractionator One. Upon completion, which is expected by year-end 2016, the LPG export terminal will have an initial export capacity of 150,000 BPD of LPG with a ship-loading rate of 36,000 barrels per hour. The existing marine terminal is currently exporting 10,000 to 15,000 BPD of natural gasoline (C5+) from Sweeny Fractionator One.
Sweeny Fractionator One and the Freeport LPG Export Terminal represent a combined capital investment of more than $3 billion.
FREEPORT LPG EXPORT TERMINAL
8 PHILLIPS 66 2016 FACT BOOK
TransportationPhillips 66 owns or leases logistics assets that provide environmentally safe, strategic and timely delivery of crude oil, refinedproducts,naturalgasandNGL.Theseassetsconsistofpipelinesystems;refinedproduct,crudeoilandLPGstorageterminals; a petroleum coke-handling facility; marine vessels; railcars; and trucks.
We’re investing in our Transportation assets to support third-party as well as Phillips 66’s operations. The Beaumont Terminal in Nederland, Texas, is the largest terminal in our portfolio and is strategically located on the U.S. Gulf Coast, providing deep-water access and multiple interconnections withmajorcrudeoilandrefinedproductspipelines.Ourterminal has the capacity to store 4.7 MMBbl of crude oil and 2.4MMBblofrefinedproducts.Wecurrentlyhave3.2MMBblof additional crude and products storage capacity under construction, 2 million of which are expected to be in service by the end of 2016. The terminal’s storage capacity is expandable to 16 MMBbl. In addition, it has a barge dock and two marine docks capable of handling Aframax tankers as well as rail andtruckloadingandoffloadingfacilities.
Construction has progressed on our two crude oil pipeline systems that are being developed by joint ventures: Dakota Access Pipeline (DAPL) and Energy Transfer Crude Oil Pipeline (ETCOP). We own 25 percent interests in both joint ventures. DAPL is expected to deliver 470,000 BPD of crude oil from the Bakken/Three Forks production area in North Dakota to market centers in the Midwest. ETCOP will provide crude oil transportation service from the Midwest to the Gulf Coast, including our Beaumont Terminal. Mechanical completion of both joint venture pipeline projects is expected in the fourth quarter of 2016.
BEAUMONT TERMINAL (TODAY)
7.1 MMBbl of storage capacity
BEAUMONT TERMINAL (FUTURE PLAN)
Long-term plan is to expand facility to 16 MMBbl of total capacity
9
Phillips 66 PartnersPhillips 66 Partners is a growth-oriented, master limited partnership formed by Phillips 66. The partnership was created to own, operate, develop and acquire primarily fee-based crude oil,refinedproductandNGLpipelines,terminals,andothertransportation and midstream assets.
Headquartered in Houston, Phillips 66 Partners completed its initial public offering in July 2013, and its common units trade on the New York Stock Exchange under the ticker symbol PSXP. The partnership has executed more than $3 billion in acquisitions in the last three years.
Phillips 66 has majority ownership of Phillips 66 Partners and acts as the general partner with management and operating responsibility for the business. The remaining limited partner (LP) common units are held by the public.
Thepartnership’sassetsconsistofcrudeoil,refined products and NGL pipeline, storage and terminaling systems, and an NGL fractionator, which provide stable, fee-based revenues.SincetheIPOandthroughthefirstquarterof2016, Phillips 66 Partners has grown its distribution per LP unit by a 39 percent compound annual growth rate.
Phillips 66 Partners holds one-third ownership interests in the Sand Hills and Southern Hills NGL pipelines, which connect NGL production from the Eagle Ford Shale Basin, Permian Basin and Midcontinent to Texas Gulf Coast markets. DCP Midstream operates the pipelines, which began service in 2013. PSXP now also owns Sweeny Fractionator One and the associated Clemens Storage Caverns.
The partnership continues to make progress on its organic growth projects. In April 2016, Bayou Bridge Pipeline, LLC, (a joint venture between Phillips 66 Partners, Energy Transfer Partners (ETP) and Sunoco Logistics Partners (SXL)) began operations on the segment of its pipeline from Nederland, Texas to Lake Charles, Louisiana. Progress continues on the section from Lake Charles to St. James, Louisiana, with commercial operations for this segment expected to begin in the second half of 2017. This remaining section of the pipeline will be
Midstream
PALERMO RAIL TERMINAL
10 PHILLIPS 66 2016 FACT BOOK
constructed by ETP. ETP and SXL each hold a 30 percent interest in the joint venture. On Dec. 1, 2015, Phillips 66 Partners acquired Phillips 66’s 40 percent equity interest in Bayou Bridge.
In December 2015 Phillips 66 Partners began operating the Palermo Rail Terminal, which provides railcar-loading from truck deliveries and is located on a 710-acre site near Palermo, North Dakota. Its current capacity of 100,000 BPD is expandable to 200,000 BPD. Phillips 66 Partners holds a 70 percent interest in the joint venture that owns the terminal.
By the end of 2016, the terminal is expected to connect to the Sacagawea Pipeline, currently under construction, which will further enhance logistical options for transporting crude from the Bakken region. Phillips 66 Partners will operate the Sacagawea Pipeline and owns 44 percent of this asset.
MEDFORD SPHERES
11
DCP MidstreamDCP Midstream, LLC is owned equally by Phillips 66 and Spectra Energy. Headquartered in Denver, Colorado, with 2,900 employees and $14 billion of assets as of December 31, 2015, DCP Midstream is one of the largest natural gas gatherers and processors and one of the largest NGL producers and marketers in the United States. As of December 31, 2015, DCP Midstream has natural gas storage capacity of 13 billion cubic feet (BCF). Its operations gather and transport raw natural gas and NGL through approximately 66,200 miles of pipeline. The collected gas is processed at 63 plants and treaters owned or operated by DCP Midstream. It also owns or operates 12 NGL fractionators.
DCP Midstream sponsors a master limited partnership, DCP Midstream Partners LP (DCP Partners). The partnership gathers, compresses, treats, processes, transports, stores and sells natural gas. It also produces, fractionates, transports, stores and sells NGL and recovers and sells condensate. DCP Partners is also a leading distributor of propane. The partnership’s units trade on the New York Stock Exchange under the ticker symbol DPM.
Including the Sand Hills, Southern Hills, Texas Express and Front Range pipelines, DCP Midstream has approximately 4,600 miles of NGL pipelines across its system, as of December 31, 2015. These pipelines connect plants in the Denver-Julesburg (DJ), Midcontinent and Permian basins and Eagle Ford shale to premium markets on the Texas Gulf Coast.
During 2015, the Sand Hills Pipeline laterals were placed into service. Pipeline capacity expansion is underway and expected to be in service in mid-2016. Construction began in March 2015 on DCP Partners’ gathering system in the DJ Basin, named the Grand Parkway gathering project. This 25-mile gathering expansion went into service in early 2016.
DCP Partners’ Lucerne 2 Plant went into service in June 2015. The natural gas processing plant increases the partnership’s processing capacity in the DJ Basin to approximately 400 MMCFD, with DCP Midstream holding another 400 MMCFD of capacity in the DJ Basin. DCP Partners also holds an ownership interest in a joint venture that constructed the Keathley Canyon Connector, a 215-mile subsea natural gas gathering pipeline for production from the Keathley Canyon, Walker Ridge and Green Canyon areas in the central deep-water Gulf of Mexico. The pipeline wasplacedintoserviceinthefirstquarterof2015.
DCP Midstream’s expansion of the National Helium Plant in Liberal, Kansas, was completed during the second half of 2015. The plant has a capacity of 600 MMCFD, and the project enhances liquids recovery capability. DCP Midstream completed a 200 MMCFD sour natural gas processing plant, the Zia II Plant, in the fourth quarter of 2015, with associated gathering system expansions in the Permian Basin.
Midstream
DCP MIDSTREAM PARTNERS’ GOLIAD PLANT
12 PHILLIPS 66 2016 FACT BOOK
Keathley Canyon Connector
Wattenberg
Black Lake
Sand HillsSeabreeze/Wilbreeze
Front Range
Texas ExpressSouthern Hills
Panola
DCP MIDSTREAM AND DCP MIDSTREAM PARTNERS ASSETS as of December 31, 2015
G&P Plant
Third-party OperatedG&P PlantThird-party OperatedFractionator
NGL PipelineCombined G&P/ Fractionator Facility Natural Gas Pipeline
Production Basin
Expansion/Restart
13
PHILLIPS 66 MAJOR PIPELINE SYSTEMS as of May 31, 2016*
NAME ORIGINATION/TERMINUS INTEREST SIZE LENGTH GROSS CAPACITY (Percent) (Miles) (MBD)
CRUDE AND FEEDSTOCKS
Cushing Cushing,OK/PoncaCity,OK 100 18″ 62 130
Glacier CutBank,MT/Billings,MT 79 8″-12″ 865 126
LineO Cushing,OK/Borger,TX 100 10″ 276 37
Line80 Gaines,TX/Borger,TX 100 8″,12″ 237 28
Line100 Taft,CA/LostHills,CA 100 8″,10″,12″ 79 54
Line200 LostHills,CA/Rodeo,CA 100 12″,16″ 228 93
Line300 Nipomo,CA/ArroyoGrande,CA 100 8″,10″,12″ 56 48
Line400 ArroyoGrande,CA/LostHills,CA 100 8″,10″,12″ 147 40
LouisianaCrudeGathering Rayne,LA/Westlake,LA 100 4″-8″ 80 25
NorthTexasCrude WichitaFalls,TX 100 2″-16″ 224 28
OklahomaMainline WichitaFalls,TX/PoncaCity,OK 100 12″ 217 100
SweenyCrude Sweeny,TX/Freeport,TX 100 12″,24″,30″ 56 265
WALine Odessa,TX/Borger,TX 100 12″,14″ 289 104
LPG
BlueLine Borger,TX/EastSt.Louis,IL 100 8″-12″ 688 29
BrownLine PoncaCity,OK/Wichita,KS 100 8″,10″ 76 26
ConwaytoWichita Conway,KS/Wichita,KS 100 12″ 55 38
Medford PoncaCity,OK/Medford,OK 100 4″-6″ 42 10
SweenyNGLLines Sweeny,TX/MontBelvieuandFreeport,TX 100 10″-20″ 246 842
NATURAL GAS
RockiesExpress Meeker,CO/Clarington,OH 25 36″-42″ 1,712 1.8BCFD
NGL
Chisholm Kingfisher,OK/Conway,KS 50 4″-10″ 202 42
PowderRiver SageCreek,WY/Borger,TX 100 6″-8″ 705 14
Skelly-Belvieu Skellytown,TX/MontBelvieu,TX 50 8″ 571 45
SweenyNGL Brazoria,TX/Sweeny,TX 100 20″ 18 204
TXPanhandleY1/Y2 Sher-Han,TX/Borger,TX 100 3″-10″ 299 61
Midstream
*Table updated to reflect significant asset changes.
14 PHILLIPS 66 2016 FACT BOOK
PHILLIPS 66 MAJOR PIPELINE SYSTEMS as of May 31, 2016
NAME ORIGINATION/TERMINUS INTEREST SIZE LENGTH GROSS CAPACITY (Percent) (Miles) (MBD)
PETROLEUM PRODUCTS
ATALine Amarillo,TX/Albuquerque,NM 50 6″,10″ 293 34
BorgertoAmarillo Borger,TX/Amarillo,TX 100 8″,10″ 93 76
Borger-Denver McKee,TX/Denver,CO 70 6″-12″ 405 38
CherokeeEast Medford,OK/Mt.Vernon,MO 100 10″,12″ 287 55
CherokeeNorth PoncaCity,OK/ArkansasCity,KS 100 10″ 29 57
CherokeeSouth PoncaCity,OK/OklahomaCity,OK 100 8″ 90 46
Harbor Woodbury,NJ/Linden,NJ 33 16″ 80 171
Heartland1 McPherson,KS/DesMoines,IA 50 8″,6″ 49 30
LAXJetLine Wilmington,CA/LosAngeles,CA 50 8″ 19 50
LosAngelesProducts Torrance,CA/LosAngeles,CA 100 6″,12″ 22 112
Pioneer Sinclair,WY/SaltLakeCity,UT 50 8″,12″ 562 63
Richmond Rodeo,CA/Richmond,CA 100 6″ 14 26
SAAL Abernathy,TX/Lubbock,TX 54 6″ 19 30
SAAL Amarillo,TX/Abernathy,TX 33 6″ 102 33
Seminoe Billings,MT/Sinclair,WY 100 6″-10″ 342 33
TorranceProducts Wilmington,CA/Torrance,CA 100 10″,12″ 8 161
WatsonProductsLine Wilmington,CA/LongBeach,CA 100 20″ 9 238
Yellowstone Billings,MT/MosesLake,WA 46 6″-10″ 710 66
1 Total pipeline system is 419 miles. Phillips 66 has ownership interest in multiple segments totaling 49 miles.
BEAUMONT TERMINAL
15
Midstream
PHILLIPS 66 FINISHED PRODUCTS TERMINALS as of May 31, 2016
GROSS GROSS NAME LOCATION INTEREST STORAGE CAPACITY RACK CAPACITY (Percent) (MBbl) (MBD)
Albuquerque New Mexico 100 244 18
Amarillo Texas 100 277 29
Beaumont Texas 100 2,400 8
Billings Montana 100 88 16
Bozeman Montana 100 113 13
Colton California 100 211 21
Denver Colorado 100 310 43
Des Moines Iowa 50 206 15
Glenpool North Oklahoma 100 366 19
Great Falls Montana 100 198 12
Helena Montana 100 178 10
La Junta Colorado 100 101 10
Lincoln Nebraska 100 219 21
Linden New Jersey 100 429 121
Los Angeles California 100 116 75
Lubbock Texas 100 179 17
Missoula Montana 50 368 29
Moses Lake Washington 50 186 13
Mount Vernon Missouri 100 363 46
North Salt Lake Utah 50 657 41
Oklahoma City Oklahoma 100 352 48
Ponca City Oklahoma 100 51 23
Portland Oregon 100 664 33
Renton Washington 100 228 20
Richmond California 100 334 28
Rock Springs Wyoming 100 125 19
Sacramento California 100 141 13
Sheridan Wyoming 100 86 15
Spokane Washington 100 351 24
Tacoma Washington 100 307 17
Tremley Point New Jersey 100 1,593 39
Westlake Louisiana 100 128 16
Wichita Falls Texas 100 303 15
16 PHILLIPS 66 2016 FACT BOOK
PHILLIPS 66 CRUDE TERMINALS as of May 31, 2016
GROSS NAME LOCATION INTEREST STORAGE CAPACITY (Percent) (MBbl)
Beaumont Texas 100 4,704
Billings Montana 100 270
Borger Texas 100 721
Cushing Oklahoma 100 700
Junction California 100 523
McKittrick California 100 237
Odessa Texas 100 523
Ponca City Oklahoma 100 1,200
Santa Margarita California 100 335
Santa Maria California 100 112
Tepetate Louisiana 100 152
Torrance California 100 309
Wichita Falls Texas 100 240
OTHER TERMINALS as of May 31, 2016
GROSS NAME LOCATION INTEREST LOADING CAPACITY1 (Percent) (MBD)
PETROLEUM COKE
Lake Charles Louisiana 50 N/A
RAIL
Beaumont Texas 100 20
Missoula Montana 50 82
Thompson Falls Montana 50 84
MARINE
Beaumont Texas 100 13
Portland Oregon 100 10
Richmond California 100 3
Tacoma Washington 100 12
Tremley Point New Jersey 100 7
1 Rail in thousands of barrels daily (MBD); Marine in thousands of barrels per hour.
17
PHILLIPS 66 PARTNERS as of May 31, 2016
PIPELINES ACTIVE THROUGHPUT NAME ORIGINATION/TERMINUS INTEREST SIZE LENGTH CAPACITY (Percent) (Miles) (MBD)
CRUDE OIL PIPELINES
Bayou Bridge Pipeline Nederland,TX/LakeCharles,LA 40 30″ N/A N/A
Clifton Ridge Crude System CliftonRidge/LakeCharlesRefinery 100 20″ 10 260
PecanGrove/CliftonRidge 100 12″ 0.6 56
Shell/CliftonRidge 100 20″ 0.6 312
Eagle Ford Gathering System Helena,TX 100 6″ 6 20
Tilden,TX/Whitsett,TX 100 6″,10″ 22 34
PETROLEUM PRODUCTS PIPELINES
Explorer TexasGulfCoast/Chicago,IL 19.5 24″,28″ 1,830 660
Sweeny to Pasadena Products System SweenyRefinery/Pasadena,TX 100 12″ 60 130
SweenyRefinery/Pasadena,TX 100 18″ 60 164
Hartford Connector Products System WoodRiverRefinery/Hartford,IL 100 12″ 3 80
Hartford,IL/ExplorerPipeline 100 24″ 1 430
Gold Line Products System BorgerRefinery/Wichita,KS 100 16″ 273 120
Wichita,KS/Paola,KS 100 16″ 143 132
Paola,KS/EastSt.Louis,IL 100 8″-12″ 265 53
Paola,KS/KansasCity,KS 100 8″ 53 24
Paola,KS/KansasCity,KS 100 10″ 53 72
Cross-Channel Connector Pipeline Pasadena,TX/GalenaPark,TX 100 20″ 5 180
Standish Pipeline MarlandJunction,OK/Wichita,KS 100 18″ 92 72
NGL PIPELINES
Sand Hills PermianBasin/MontBelvieu,TX 33 20″ 1,190 250
Southern Hills Midcontinent/MontBelvieu,TX 33 20″ 940 175
Midstream
FERNDALE RAIL RACK
18 PHILLIPS 66 2016 FACT BOOK
TERMINALS, STORAGE AND FRACTIONATION ASSETS
TANK SHELL STORAGE ACTIVE TERMINALING FRACTIONATION NAME INTEREST CAPACITY CAPACITY CAPACITY (Percent) (MBbl) (MBD) (MBD)
Clifton Ridge Crude System
Clifton Ridge Terminal 100 3,410 12 N/A
Pecan Grove Storage 100 142 N/A N/A
Sweeny to Pasadena Products System
Pasadena Terminal 100 3,210 65 N/A
Hartford Connector Products System
Hartford Terminal 100 1,075 25 N/A
Gold Line Products System
East St. Louis Terminal 100 2,085 78 N/A
Jefferson City Terminal 100 110 16 N/A
Kansas City Terminal 100 1,294 66 N/A
Wichita North Terminal 100 679 19 N/A
Medford Spheres 100 70 N/A N/A
Palermo Rail Terminal 70 206 100 N/A
Bayway Rail Rack 100 N/A 75 N/A
Ferndale Rail Rack 100 N/A 30 N/A
Clemens Caverns 100 7,000-8,0001 N/A N/A
Sweeny Fractionator One 100 N/A N/A 100
MARINE ASSETS
DOCK THROUGHPUT NAME INTEREST CAPACITY (Percent) (Thousands of barrels per hour)
Clifton Ridge Crude System
Clifton Ridge Ship Dock 100 48
Pecan Grove Barge Dock 100 6
Hartford Connector Products System
Hartford Barge Dock 100 3
1 Approximate storage capacity for Y-grade NGL, propane and butane once the caverns currently in development are completed, which is expected by the end of 2016.
19
Chemicals
CPCHEM’S U.S. GULF COAST PETROCHEMICALS PROJECT
20 PHILLIPS 66 2016 FACT BOOK
CPChemHeadquartered in The Woodlands, Texas, CPChem had approximately 5,000 employees worldwide and $13.6 billion in assets as of Dec. 31, 2015. Its business has two primary segments:OlefinsandPolyolefins(O&P)andSpecialties,Aromatics and Styrenics (SA&S). The O&P segment produces andmarketsethylene,propyleneandotherolefinsproducts.Most of the ethylene is consumed within the O&P segment fortheproductionofpolyethyleneandnormalalphaolefins.The SA&S segment manufactures and markets aromatics products and styrenics, such as benzene, styrene, paraxylene and cyclohexane, as well as polystyrene and styrene-butadiene copolymers. SA&S also manufactures and/or markets a variety of specialty chemical products, including organosulfur chemicals, solvents, catalysts, drilling chemicals and mining chemicals.
CPCHEM IS THE:
• World’s largest producer of high-density polyethylene.
•World’slargestalphaolefinsproducer.
• Fourth-largest ethylene producer in North America.
• World’s largest cyclohexane producer.
CPCHEM’S PRIMARY BRANDS INCLUDE:
• Marlex® polyethylene, a premium extrusion and rigid packaging resin.
• Soltex® drilling mud additive, a high-temperature/ high-pressurefluidlosscontroladditivefor water-based muds.
• Scentinel® Gas Odorants, which are added to natural gas to give it a distinctive smell, a vital safety measure.
CPChem’s primary assets are on the Texas Gulf Coast and in theMiddleEast.Throughitssubsidiariesandequityaffiliates,CPChem has 34 manufacturing sites located in Belgium, China, Colombia, Qatar, Saudi Arabia, Singapore, South Korea and the United States as well as two research and development centers. These research centers provide petrochemical and polymer research and house an advanced analytical sciences group to support new catalyst development, product and process development, and commercial process support for all of its major product lines.
CPChem’s plastics technical center is equipped with processing and testing technology for the molding and extrusion of polymer and copolymer resins.
OPERATING HIGHLIGHTS – CPCHEM (100%)
2015 2014 2013
Number of manufacturing sites 34 34 35
Plant gross capacity (BLb/Y) 49 48 48
Net capacity (BLb/Y) 34 34 33
Combined total recordable rate (safety incidents per 200,000 hours) 0.23 0.24 0.34
Olefinsandpolyolefinscapacityutilization 91 88 88
Chemicals Overview
21
Chemicals
CPChem’s MarTECH® loop slurry process for high-density polyethylene production is one of the most versatile and widely licensed processes in the world, with more than 80 commercial reactor facilities using this technology. Another technological achievement is CPChem’s proprietary Aromax® technology, the lowest-cost process for on-purpose production of benzene.
Other proprietary technologies include: on-purpose 1-hexene technology;normalalphaolefinsandpolyalphaolefinsproduction technology; proprietary acetylene reduction catalyst technology; K-Resin® SBC technology; methyl mercaptan processtechnology;andfirst-andsecond-generation functionaldrillingfluidtechnology.
In 2015, CPChem continued construction of its world-scale U.S. Gulf Coast Petrochemicals Project. The project includes a 3.3 billion-pound-per-year (BLb/Y) ethylene unit, located at CPChem’s Cedar Bayou Facility in Baytown, Texas, and two 1.1 BLb/Y polyethylene facilities, located in Old Ocean, Texas, adjacent to the Sweeny facility. The project is scheduled to start up in the second half of 2017 and is expected to increase CPChem’s global ethylene and polyethylene capacity by about 30 percent.
An expansion project to increase CPChem’s normal alpha olefins(NAO)capacityby220millionpoundsperyearwascompleted at its Cedar Bayou Facility in June 2015. Current full-range NAO capacity at the Cedar Bayou site is 1.6 BLb/Y. NAO and its derivatives are used extensively as polyethylene comonomers, synthetic motor oils, lubricants, and automotive additives and in a wide range of specialty applications.
CPCHEM CEDAR BAYOU FACILITY
22 PHILLIPS 66 2016 FACT BOOK
CPCHEM NET PETROCHEMICAL AND PLASTICS PRODUCTION CAPACITIES as of Dec. 31, 2015
U.S. MIDDLE EAST WORLDWIDE (MMLb/Y) (MMLb/Y) (MMLb/Y)
O&P
Ethylene 8,030 2,475 10,505
Propylene 2,675 505 3,180
High-density polyethylene 4,205 1,725 6,500
Low-density polyethylene 620 – 620
Linear low-density polyethylene 490 – 490
Polypropylene – 310 310
Normalalphaolefins 2,335 515 2,850
Polyalphaolefins 105 – 235
Polyethylene pipe 590 – 590
Total O&P 19,050 5,530 25,280
SA&S
Benzene 1,600 930 2,530
Cyclohexane 1,060 395 1,455
Paraxylene 1,000 – 1,000
Styrene 1,050 825 1,875
Polystyrene 835 155 1,070
K-Resin® SBC – – 70
Specialty chemicals 430 – 550
Nylon 6,6 – 55 55
Nylon Compounding – 20 20
Polymer conversion – 130 130
Total SA&S 5,975 2,510 8,755
Total O&P and SA&S 25,025 8,040 34,035
Capacities include CPChem’s share in equity affiliates and exclude CPChem’s NGL fractionation capacity.
23
* Denotes Joint Venture
CPChem U.S., M
iddle East and Asia Operations
CPChem U.S., Middle East and Asia Operations
U.S. OperationsHeadquartersThe Woodlands, Texas
CALIFORNIA
Torrance*Polystyrene
CONNECTICUT
Allyn’s Point*Polystyrene
ILLINOIS
Joliet*Polystyrene
LOUISIANA
St. James*Styrene
MISSISSIPPI
PascagoulaBenzeneParaxylene
OHIO
Hanging Rock*Polystyrene
Marietta*Polystyrene
TEXAS
BorgerSpecialty Chemicals
Cedar BayouEthyleneNormalAlphaOlefinsPropylenePolyalphaolefinsPolyethylene
ConroeDrilling Specialties
OrangePolyethylene
PasadenaPolyethylene
Port ArthurEthylenePropyleneCyclohexane
SweenyEthylenePropylene
Manufacturing FacilitiesResearch and Development FacilitiesHeadquarters
* Denotes Joint Venture
CPChem U.S., Middle East and Asia Operations
MESAIEED
ARABIAN GULF
Ras Laffan
Mesaieed
Jubail Industrial City
Saudi Arabia
Qatar
China
Singapore
South Korea
Saudi Arabia*
BenzeneCyclohexaneEthyleneStyrenePropylenePolyethylenePolypropylenePolystyrene1-HexeneMotor Gasoline
Qatar*
EthylenePolyethylene1-HexeneNormalAlphaOlefins
South Korea*
K-Resin® SBC
China*
Polyethylene
Singapore*
Polyethylene
WHOLLY OWNED CPCHEM FACILITIES as of Dec. 31, 2015
Chemicals
FACILITY/LOCATION PRODUCTS CAPACITY (MMLb/Y)
Cedar Bayou Facility, Baytown, TX Ethylene 1,840
Propylene 1,030
Normalalphaolefinsfull-range 1,785
1-hexene 550
Polyalphaolefins 105
Linear low-, low- and high-density polyethylene 2,625
Sweeny Facility, Old Ocean, TX Ethylene 4,310
Propylene 870
Port Arthur Facility, Port Arthur, TX Ethylene 1,880
Propylene 775
Cyclohexane 1,060
Pascagoula Facility, Pascagoula, MS Paraxylene 1,000
Benzene 1,600
Pasadena Plastics Complex, Pasadena, TX High-density polyethylene 2,180
Orange Chemical Facility, Orange, TX High-density polyethylene 970
PerformancePipeDivision,ninelocationsintheUnitedStates Polyethylenepipeandpipefittings 590
Borger Facility, Borger, TX Organosulfur chemicals 215
Specialty fuels and solvents 165
Beringen,BelgiumFacility,Beringen,Belgium Polyalphaolefins 130
Tessenderlo Chemicals Facility, Tessenderlo, Belgium Organosulfur chemicals 120
Drilling Specialties, Conroe, TX Drilling specialty chemicals 50
24 PHILLIPS 66 2016 FACT BOOK
JOINT-VENTURE CPCHEM FACILITIES as of Dec. 31, 2015
FACILITY/LOCATION CPCHEM OWNERSHIP PRODUCTS GROSS CAPACITY (Percent) (MMLb/Y)
Qatar Chemical Company Ltd., Mesaieed, Qatar 49 Ethylene 1,150
High-density polyethylene 1,010
1-hexene 130
Qatar Chemical Company II Ltd.(Q-Chem II), Mesaieed, Qatar 49 High-density polyethylene 770
Normalalphaolefins 760
RasLaffanOlefinsCompany(RLOC),RasLaffan,Qatar1 26 Ethylene 2,870
Saudi Polymers Company, Jubail Industrial City, Saudi Arabia 35 Ethylene 2,690
Propylene 970
High-density polyethylene 2,425
Polypropylene 880
Polystyrene 440
1-hexene 220
Saudi Chevron Phillips Company, Jubail Industrial City, Saudi Arabia 50 Benzene 1,865
Cyclohexane 790
Jubail Chevron Phillips Company, Jubail Industrial City, Saudi Arabia 50 Styrene 1,650
Ethylene 450
Propylene 330
Petrochemical Conversion Company, Jubail Industrial City 2, Saudi Arabia 50 Polymer conversion 260
Nylon 6,6 100
Nylon compounding 40
Americas Styrenics, St. James, LA 50 Styrene 2,100
Americas Styrenics, Joliet, IL 50 Polystyrene 270
Americas Styrenics, Allyn’s Point, CT 50 Polystyrene 250
Americas Styrenics, Hanging Rock, OH 50 Polystyrene 400
Americas Styrenics, Torrance, CA 50 Polystyrene 330
Americas Styrenics, Marietta, OH 50 Polystyrene 420
Americas Styrenics, Cartagena, Colombia 50 Polystyrene 160
Chevron Phillips Singapore, Chemicals (Private) Limited, Singapore 50 High-density polyethylene 880
Shanghai Golden Phillips Petrochemical Co., Jinshanwei, China 40 High-density polyethylene 320
K R Copolymer Co., Ltd., Yeosu, South Korea 60 K-Resin® SBC 115
1 Q-Chem II owns 53.85 percent of the capacity rights of the RLOC ethylene cracker.
25
Refining
BILLINGS REFINERY26 PHILLIPS 66 2016 FACT BOOK
RefiningOurRefiningsegmentprocessescrudeoilandotherfeedstocksinto petroleum products such as gasoline, diesel and aviation fuel.Phillips66has14refineriesandanetcrudeoilprocessingcapacity of 2.2 million barrels per day (MMBD).
Phillips66’sRefiningstrategycentersonoperatingexcellence,maintaining cost and capital discipline, and increasing margins through selective investment. We have opportunities across our system for low-cost, high-return projects that are planned to either increase the value of the products we make or lower the
cost of feedstocks. Examples of these projects: At the WoodRiverRefinery,wehavedebottleneckingandyield-improvement projects underway that are scheduled for completioninthethirdquarterof2016.AttheBaywayRefinery,weareupgradingourfluidcatalyticcrackingunittostate-of-the-art technology, which will result in increased yields of gasoline anddiesel.Weexpectthismodernizationtobefinishedin2018.Inaddition,theBillingsRefineryisincreasingitsheavyCanadian crude run ability to 100 percent, with an expected completioninthefirsthalfof2017.
OPERATING HIGHLIGHTS
2015 2014 2013
Total clean product yield (percent) 84 84 84
Gasoline 44 43 42
Distillate 38 39 40
Other clean product 2 2 2
Crude oil processed (MBD) 1,988 2,108 2,079
Crude oil capacity utilization (percent) 91 94 93
Worldwide crude processing capacity (MBD) 2,184 1 2,178 2 2,246 3
U.S. 1,834 1 1,828 2 1,816 3
International 350 1 350 2 430 3
Combined total recordable rate (safety incidents per 200,000 hours) 0.21 0.23 0.26
Refining Overview
1 As of Jan. 1, 2016.2 As of Jan. 1, 2015.3 As of Jan. 1, 2014.
BAYWAY REFINERY
27
Humber
Whitegate
MiRO
Lake Charles
Ponca City
Sweeny
Alliance
Wood River
Borger
Ferndale
Billings
Los Angeles
San Francisco
Bayway
U.S. REFINING as of March 31, 2016
Refining
EUROPE REFINING As of March 31, 2016
Wholly Owned Re�nery
Joint-Venture Re�nery
West Coast
Central Corridor
Gulf Coast
Atlantic Basin/Europe
Wholly Owned Re�nery
Joint-Venture Re�nery
28 PHILLIPS 66 2016 FACT BOOK
WORLDWIDE REFINING as of Dec. 31, 2015
AVERAGE AVERAGE NELSON CLEAN PRODUCT CRUDE1 TOTAL GASOLINE3 DISTILLATE3 LIGHT/MEDIUM HEAVY COMPLEXITY YIELD (Throughput) (Throughput) (Production) (Production) FACTOR (Percent)REGION
Atlantic Basin/Europe2 588 669 270 285 80 20 9.0 85
Gulf Coast 743 865 340 355 60 40 12.0 80
Central Corridor2 493 543 270 195 65 35 11.0 89
West Coast 360 409 190 155 45 55 12.3 85
Worldwide 2,184 2,486 1,070 990 65 35 11.0 84
1 As of Jan. 1, 2016.2 Includes Phillips 66’s share of joint-venture refineries.3 Clean product capacities are maximum rates for each clean product category, independent of
each other. The capacities are not additive when calculating the average clean product yield.
CAPACITY (MBD) CRUDE MIX (Percent)
LOS ANGELES REFINERYPONCA CITY REFINERY
29
Refining
Ferndale Refinery
San Francisco Refinery
Los Angeles Refinery
CRUDE CAPACITY (MBD)
CRUDE CAPACITY (MBD)
CRUDE CAPACITY (MBD)
DISTILLATE CAPACITY (MBD)
DISTILLATE CAPACITY (MBD)
DISTILLATE CAPACITY (MBD)
TOTAL CAPACITY (MBD)
TOTAL CAPACITY (MBD)
TOTAL CAPACITY (MBD)
NELSON COMPLEXITY FACTOR
NELSON COMPLEXITY FACTOR
NELSON COMPLEXITY FACTOR
GASOLINE CAPACITY (MBD)
GASOLINE CAPACITY (MBD)
GASOLINE CAPACITY (MBD)
CLEAN PRODUCT YIELD CAPABILITY
CLEAN PRODUCT YIELD CAPABILITY
CLEAN PRODUCT YIELD CAPABILITY
101
120
139
30
60
65
109
140
160
7.3
14.3
14.3
55
55
80
81%
84%
90%
RE
FIN
ING
WE
ST
CO
AS
T
30 PHILLIPS 66 2016 FACT BOOK
OurFerndaleRefineryislocatedonPugetSoundinFerndale,Washington, about 20 miles south of the U.S.-Canada border. It processes a variety of domestic and foreign crude oils, including Alaskan North Slope, Canadian and U.S. shale crudes.
With a deep-water dock, a 30,000 BPD rail unloading facility and access to existing crude oil pipelines, Ferndale has the flexibilitytoprocessabroadslateofcrudes.Itsfacilitiesconsistofafluidcatalyticcracker,analkylationunit,hydrotreatingunitsand a naphtha reformer.
OurSanFranciscoRefineryhastwofacilitieslinkedbya200-mile pipeline: Santa Maria, in Arroyo Grande, California, andRodeo,intheBayArea.Therefineryprocessesamixtureof heavy, high-sulfur and light sweet crude oils. It receives California crude oil by pipeline and both domestic and foreign crudeoilsbytanker.Semi-refinedproductsfromSantaMariaaresentbypipelinetoRodeoforupgradingintofinishedpetroleumproducts.Alargeportionoftherefinery’sproductionis transportation fuel such as gasoline and diesel.
TheLosAngelesRefinerycomprisestwolinkedfacilities, fivemilesapart,inCarsonandWilmington,California,about15 miles southeast of Los Angeles International Airport. Carson processes crude oil, and Wilmington upgrades the intermediate productstofinishedproducts.
Therefineryprocessesmainlyheavy,high-sulfurcrudeoil.Itreceives domestic crude oil by pipeline from California and both foreign and domestic crude oils by tanker through a third-party
Therefineryproducesgasolineanddiesel.Otherproductsinclude residual fuel oil, which supplies the northwest marine transportationmarket.MostofFerndale’srefinedproductsare distributed by pipeline and barge to major markets in northwestern United States.
Process facilities include coking, hydrocracking, hydrotreating andnaphthareformingunits.TherefineryproducesCARB-gradegasolineanddieselfuels.Themajorityofrefinedproductsaredistributed by pipeline and barge to customers in California.
terminalinthePortofLongBeach.Therefineryproducesahigh percentage of gasoline, diesel and aviation fuels. Other products include fuel-grade petroleum coke.
Thefacilitieshavefluidcatalyticcracking,alkylation,hydrocracking,cokingandnaphthareformingunits.Therefineryproduces California Air Resources Board (CARB)-grade gasoline anddieselfuels.Refinedproductsaredistributedbypipelineand truck to customers in California, Nevada and Arizona.
31
Ponca City Refinery
Billings Refinery
Wood River Refinery1
Borger Refinery1
CRUDE CAPACITY (MBD)
CRUDE CAPACITY (MBD)
CRUDE CAPACITY (MBD)
CRUDE CAPACITY (MBD)
DISTILLATE CAPACITY (MBD)
DISTILLATE CAPACITY (MBD)
DISTILLATE CAPACITY (MBD)
DISTILLATE CAPACITY (MBD)
TOTAL CAPACITY (MBD)
TOTAL CAPACITY (MBD)
TOTAL CAPACITY (MBD)
TOTAL CAPACITY (MBD)
NELSON COMPLEXITY FACTOR
NELSON COMPLEXITY FACTOR
NELSON COMPLEXITY FACTOR
NELSON COMPLEXITY FACTOR
GASOLINE CAPACITY (MBD)
GASOLINE CAPACITY (MBD)
GASOLINE CAPACITY (MBD)
GASOLINE CAPACITY (MBD)
CLEAN PRODUCT YIELD CAPABILITY
CLEAN PRODUCT YIELD CAPABILITY
CLEAN PRODUCT YIELD CAPABILITY
CLEAN PRODUCT YIELD CAPABILITY
203
60
157
73
90
25
55
25
220
67
166
90
9.0
13.8
11.8
12.5
110
35
75
50
93%
90%
81%
90%
RE
FIN
ING
CE
NTR
AL
CO
RR
IDO
R
1 Reflects Phillips 66 equity share.32 PHILLIPS 66 2016 FACT BOOK
ThePoncaCityRefinery,inPoncaCity,Oklahoma,processesa mixture of light, medium and heavy crude oils. Most of the crude oil processed is received by pipeline from Oklahoma, Texas and Canada. Infrastructure improvements have enabled the delivery of increased volumes of locally produced advantaged crude oil by pipeline and truck.
Therefineryisahigh-conversionfacilitythatproducesafullrange of products, including gasoline, diesel and aviation fuels; liquefiedpetroleumgas(LPG);andanode-gradepetroleum
LocatedinBillings,Montana,ourBillingsRefineryprocesses a mixture of Canadian heavy, high-sulfur crude oil plus domestic high-sulfur and low-sulfur crude oils, all delivered by pipeline and truck.
Thefacilitieshavefluidcatalyticcracking,naphthareformingand hydrodesulfurization units. A delayed coker converts heavy, high-sulfurresidueintohigher-valuelightoils.Therefineryproduces a high percentage of gasoline, diesel and aviation
Located in Roxana, Illinois, and jointly owned by Phillips 66 andCenovusEnergythroughtheWRBRefiningpartnership,theWoodRiverRefineryisoperatedbyPhillips66.Therefineryprocesses a mix of light, low-sulfur; heavy, high-sulfur; and high-acid crude oils. Wood River receives Canadian and domestic crude oils, including from U.S.-advantaged sources, andotherforeigncrudeoil.Therefineryproducesahighpercentage of transportation fuels, such as gasoline, diesel
OurBorgerRefineryisinBorger,Texas,about50milesnortheastofAmarillo.It’sownedbyWRBRefiningLP,a 50-50 partnership between Phillips 66 and Cenovus Energy, andoperatedbyPhillips66.Therefineryprocessesprimarilymedium sour crude oil and NGL delivered through pipelines from West Texas, the Texas Panhandle and Canada. Borger has a net NGL fractionation capacity of 22,500 BPD1.
coke.Itsfacilitiesincludetwofluidcatalyticcrackingunits,alkylation, delayed coking, naphtha reforming and hydro-desulfurization units. Finished petroleum products are shipped by truck, railcar and pipelines to markets throughout the Midcontinent region.
fuels as well as fuel-grade petroleum coke. Finished petroleum productsfromtherefineryaredeliveredbypipeline,railcarandtruck.Pipelinestransportmostoftherefinedproductstomarkets in Montana, Wyoming, Idaho, Utah, Colorado and Washington.
and aviation fuels. Other products include petrochemical feedstocks, asphalt and coke.
Itsoperationsconsistoftwofluidcatalyticcrackingunits,alkylation, hydrocracking, two delayed coking units, naphtha reforming, hydrotreating and sulfur recovery. Finished products leave Wood River through pipelines and by rail, barge and truck.
Borgerhastwofluidcatalyticcrackingunits,alkylation,delayedcoking, hydrodesulfurization and naphtha reforming. This enables it to produce a high percentage of transportation fuels such as gasoline, diesel and aviation fuels, as well as petroleum coke,NGLandsolvents.PipelinesmoverefinedproductstoWest Texas, New Mexico, Colorado and the Midcontinent region.
33
Alliance Refinery
Sweeny Refinery
Lake Charles Refinery
CRUDE CAPACITY (MBD)
CRUDE CAPACITY (MBD)
CRUDE CAPACITY (MBD)
DISTILLATE CAPACITY (MBD)
DISTILLATE CAPACITY (MBD)
DISTILLATE CAPACITY (MBD)
TOTAL CAPACITY (MBD)
TOTAL CAPACITY (MBD)
TOTAL CAPACITY (MBD)
NELSON COMPLEXITY FACTOR
NELSON COMPLEXITY FACTOR
NELSON COMPLEXITY FACTOR
GASOLINE CAPACITY (MBD)
GASOLINE CAPACITY (MBD)
GASOLINE CAPACITY (MBD)
CLEAN PRODUCT YIELD CAPABILITY
CLEAN PRODUCT YIELD CAPABILITY
CLEAN PRODUCT YIELD CAPABILITY
247
247
249
120
120
115
275
300
290
12.1
13.1
10.9
125
125
90
88%
87%
70%
RE
FIN
ING
GU
LF C
OA
ST
Refining
34 PHILLIPS 66 2016 FACT BOOK
OurAllianceRefinery,locatedontheMississippiRiverinBelleChasse, Louisiana, 25 miles south of New Orleans, processes mainly light, low-sulfur crude oil. Alliance receives domestic crude oil from the Gulf of Mexico by pipeline and U.S. tight oil bymarinetransport.Therefinerycanalsoreceiveforeigncrudeoil by pipeline connected to the Louisiana Offshore Oil Port.
Thesingle-trainrefinery’sfacilitiesincludefluidcatalyticcracking, alkylation, coking and hydrodesulfurization units, a naphtha reformer and aromatics units that enable it to
LocatedinWestlake,Louisiana,theLakeCharlesRefineryprocesses primarily heavy, high-sulfur and high-acid crude oils, along with some light, sweet crude oil. It receives domestic Gulf Coast, U.S.-advantaged and foreign crude oils.
Withinthefacilitiesarecrudedistillation,afluidcatalyticcracker, alkylation, a delayed coker and hydrodesulfurization unitsthatenabletherefinerytoproducegasoline,dieselandaviation fuels, home heating oil and fuel-grade petroleum coke. The facilities also include a specialty coker and calciner, which produce graphite petroleum coke for the steel industry.
produce a high percentage of gasoline, diesel and aviation fuels. Other products include petrochemical feedstocks, home heating oil and anode-grade petroleum coke.
Alargeportionofitsrefinedproductsaredistributedtocustomers in the eastern United States through major common-carrierpipelinesystemsandbybarge.Refinedproducts can be sold into export markets through the refinery’smarinefacilities.
Lake Charles produces a high percentage of gasoline and aviationfuels.Themajorityofitsrefinedproductsaredistributed by truck, railcar, barge or major common-carrier pipelines in the southeastern and eastern United States. In addition,refinedproductscanbesoldintoexportmarketsthroughtherefinery’smarinefacilities.
OurSweenyRefinery,inOldOcean,Texas,65milessouthwestof Houston, processes mainly heavy, high-sulfur crude oil as well as some light, low-sulfur crude oil. Sweeny receives U.S.-advantaged and foreign crude oil primarily through wholly and jointly owned terminals on the Gulf Coast, including a deep-water terminal at Freeport, Texas.
Therefineryfacilitiesincludetwofluidcatalyticcrackingunits, delayed coking, alkylation, a naphtha reformer and hydrodesulfurization units. It operates nearby terminals
and storage facilities in Freeport, Jones Creek and on the San Bernard River, along with pipelines that connect these facilitiestotherefinery.
Therefineryproducesahighpercentageofgasoline,dieseland aviation fuels. Other products include petrochemical feedstocks, home heating oil and fuel-grade petroleum coke. RefinedproductsaredistributedthroughouttheMidwestandsoutheastern United States by pipeline, barge and railcar.
35
Whitegate Refinery1
Bayway Refinery
MiRO Refinery2
Humber Refinery
CRUDE CAPACITY (MBD)
CRUDE CAPACITY (MBD)
CRUDE CAPACITY (MBD)
CRUDE CAPACITY (MBD)
DISTILLATE CAPACITY (MBD)
DISTILLATE CAPACITY (MBD)
DISTILLATE CAPACITY (MBD)
DISTILLATE CAPACITY (MBD)
TOTAL CAPACITY (MBD)
TOTAL CAPACITY (MBD)
TOTAL CAPACITY (MBD)
TOTAL CAPACITY (MBD)
NELSON COMPLEXITY FACTOR
NELSON COMPLEXITY FACTOR
NELSON COMPLEXITY FACTOR
NELSON COMPLEXITY FACTOR
GASOLINE CAPACITY (MBD)
GASOLINE CAPACITY (MBD)
GASOLINE CAPACITY (MBD)
GASOLINE CAPACITY (MBD)
CLEAN PRODUCT YIELD CAPABILITY
CLEAN PRODUCT YIELD CAPABILITY
CLEAN PRODUCT YIELD CAPABILITY
CLEAN PRODUCT YIELD CAPABILITY
71
238
58
221
30
115
25
115
73
295
61
240
4.2
8.1
8.1
11.7
15
145
25
85
65%
92%
86%
81%
RE
FIN
ING
ATL
AN
TIC
BA
SIN
/E
UR
OP
E
1 In August 2016, Phillips 66 announced the sale of its Whitegate Refinery, located near Cork, Ireland. The transaction is expected to close in the third quarter of 2016.
2 Reflects Phillips 66 equity share.36 PHILLIPS 66 2016 FACT BOOK
TheBaywayRefinery,locatedontheNewYorkHarborin Linden, New Jersey, processes mainly light, low-sulfur crude oil.CrudeoilissuppliedtotherefinerybytankerfromCanada and West Africa, and U.S. crude is supplied through a combination of rail and marine transport.
Withintherefineryisarailcarcrudeoilreceivingfacilitywithacapacityof75,000BPD.Thisoffloadingfacility,ownedbyPhillips 66 Partners, makes the receipt of additional crude by railcarpossible.Therefineryproducesahighpercentageof
OurWhitegateRefinery,locatedinCork,Ireland,isthe country’sonlyrefineryandprocesseslight,low-sulfurcrude oil, sourced mostly from the North Sea and West Africa. Whitegate produces primarily transportation and heating fuels such as gasoline, diesel and kerosene that are distributed mostly inland, with some exported to the U.K. and Europe. Thefacilityalsoproducesfeedstockforsystemrefineries and international markets.
TheMineraloelraffinerieOberrheinGmbH(MiRO)Refinery,located on the Rhine River in Karlsruhe, in southwest Germany, is a joint venture with Phillips 66 holding an 18.75 percent interest.
Phillips 66 processes mainly medium sweet and medium sourcrudeoilsinitsshareoftherefinery.Crudeisdelivered totherefinerybyacross-countrypipelinefromtheportinTrieste, Italy.
TheHumberRefineryislocatedinNorthernLincolnshire,UnitedKingdom. The crude oil it processes is supplied primarily from the North Sea and includes light-, low- and medium-sulfur and acidic crude oils. Humber generates a large proportion of gasoline,dieselandaviationfuels.Itsfluidcatalyticcrackingunit/thermalcracking/cokingconfigurationenablessubstantialvolumes of other feedstocks, such as low-sulfur fuel oil and vacuum gas oil, to be processed alongside crude oil to fully use Humber’s conversion capability.
transportation fuels and petrochemical feedstocks, residual fuel oilandhomeheatingoil.Thefacilitydistributesrefinedproductsto East Coast customers by barge, truck, pipeline and railcar.
Bayway’srefiningunitsincludefluidcatalyticcracking,hydrodesulfurization units, a naphtha reformer, an alkylation unit and other processing equipment. Bayway also has a 775 MMLb/Y polypropylene plant.
Thefacilitiesconsistofthreecrudeunittrains,fluidcatalyticcracking, petroleum coking and calcining, hydrodesulfurization, naphtha reformers, isomerization, ethyl tert-butyl ether, and alkylation units that enable it to produce a high percentage of transportation fuels. Other products include petrochemical feedstocks, home heating oil, bitumen and anode- and fuel-grade petroleum coke. Phillips 66 distributes the majority of itsshareoftherefinedproductstocustomersinsouthwestGermany, northern Switzerland and western Austria by truck, railcar and barge.
Humber has two coking units with associated calcining plants that upgrade the heavy bottoms and imported feedstocks into light oil products and specialty graphite and anode-grade petroleum coke. Approximately 70 percent of the light oils producedintherefineryaremarketedintheUnitedKingdom,with the other products exported worldwide.
37
Marketing and Specialties
PHILLIPS 66 2016 FACT BOOK38
OPERATING HIGHLIGHTS 2015 2014 2013
U.S. Marketing sales (MBD)
Gasoline 1,113 1,102 1,081
Distillate 761 787 775
International Marketing sales (MBD)
Gasoline 92 93 93
Distillate 192 192 192
Realized Marketing Fuel margin ($/Bbl)
U.S. 1.65 1.51 1.21
International 4.40 5.22 4.36
Combined total recordable rate (safety incidents per 200,000 hours) 0.10 0.10 0.17
Marketing and Specialties Overview
Marketing and Specialties
This business markets refined petroleum products (such as gasoline, distillates and aviation fuels) mainly in the United States under the Phillips 66®, Conoco®, and 76® brands and in Europe through JET® and COOP® branded outlets. In addition, this segment includes the manufacturing and marketing of specialty products as well as power generation operations.
PHILLIPS 66 MARKETS FUELS AND LUBRICANTS UNDER THESE BRANDS
39
U.K.330
Germany800
Austria150
Switzerland295
MarketingUNITED STATES
In the United States, Phillips 66 markets gasoline, diesel and aviation fuel. Most marketing outlets are owned and operated by independent dealers and wholesale marketers. The majority of these outlets are branded Phillips 66®, Conoco® or 76® and offer gasolines that have been recognized as TOP TIER™ by leading automakers. These operations are generally served bythecompany’srefineriesandtransportationsystems.
Phillips 66 uses a network of branded marketers and dealers operating approximately 7,500 outlets, which include about 800siteswhereweholdbrandlicenseagreements.Refinedproducts are sold on both a branded and unbranded basis, emphasizing the wholesale channel of trade.
In addition to automotive gasoline and diesel fuel, the company produces aviation fuels and markets them through independent marketers and dealers at approximately 850 Phillips 66 aviation-branded,fixed-baseoperations–thelargestbrandednetwork in the U.S. general aviation industry.
EUROPE
In Europe, Phillips 66 markets motor fuels under the JET® brand through company-owned outlets in Germany and Austria and dealer-owned outlets in the United Kingdom. The company also has an equity interest in a joint venture that markets motor fuels in Switzerland under the COOP® brand.
Phillips 66 markets aviation fuels, LPG, heating oils, transportation fuels, marine bunker fuels, fuel coke and bitumen to commercial customers and into the bulk or spot market.Inaddition,substantiallyallWhitegateRefineryproduction is sold to local and international oil companies and independent resellers in the inland Ireland market.
As of Dec. 31, 2015, Marketing and Specialties had approximately 1,280 marketing outlets in its European operations, of which approximately 950 were company owned and 330 were dealer owned. Additionally, through joint-venture operations in Switzerland, Phillips 66 has interests in 295 other sites.
SpecialtiesFINISHED LUBRICANTS
Phillips66isoneofthelargestfinishedlubricantssuppliersinthe United States. It manufactures and markets three major lubricant brands: Phillips 66®, Kendall® and Red Line®. We also have supply relationships with major original equipment manufacturers. The distribution network consists of marketers, mass merchandise stores, fast lube stores, tire stores and automotive dealers.
In 2015, Phillips 66 completed the integration of its 2014 acquisition of Spectrum Corporation, an independent blender, packager and marketer of specialty lubricants that include two-cycle engine oil, small engine oil and hydraulic oil. It offers a broad array of private-label and brand-name specialty lubricants and related products. The acquisition has increased Phillips 66’s access to specialized global lubricants markets.
BASE OIL
The base oil marketing activities of Phillips 66 include the sale of Group II Pure Performance® hydrocracked base oils to an extensive list of customers throughout the world and the purchase of a wide range of base oils from several NorthAmericanrefinersthatfulfillthemanufacturingneeds ofthefinishedlubricantsproductlines.Wealsomarket Group III Ultra-S base oils in North America through an agreement with South Korea’s S-Oil Corporation. Base oils are manufactured at our 50-50 joint-venture Excel Paralubes plant in Westlake, Louisiana.
Marketing and Specialties
EUROPE MARKETING as of Dec. 31, 2015
Fuels Market Share>20% 10-20% <10%
Number of Outlets per Country
40 PHILLIPS 66 2016 FACT BOOK
Excel Paralubes
Los Angeles
Benicia
Portland
HartfordWood River
GulfCoast
Savannah
Waukesha
Selmer
Rodeo
LakeCharles
Sweeny
BorgerPACIFIC OCEAN
HAWAII
ALASKAMILES
0 500
MILES
0 100
U.S. MARKETING AND SPECIALTIES as of Dec. 31, 2015
SPECIALTY PRODUCTS
Phillips 66 manufactures and markets specialty products, including petroleum coke products, waxes, solvents and polypropylene, which are sold to commercial, industrial and wholesale buyers worldwide.
PETROLEUM COKE
Phillips 66 is a leading producer of needle coke for manufacturing electric arc furnace electrodes. The company’s experience in carbon upgrading also supports the supply of green and calcined specialty cokes to the steel, aluminum and titanium dioxide and battery industries in multiplecountriesfromourrefinerieslocatedintheU.S. and the United Kingdom.
SOLVENTS
TheBorger,SweenyandWoodRiverrefineriesmanufactureand market high-purity specialty solvents, including pentanes, hexanes,heptanesandisoparaffins,foruseinavarietyofindustrial and chemical manufacturing applications. These products are marketed globally and used in the production of products such as vegetable oil, automotive products, tires and rubber, paint, foam insulation and adhesives.
POLYPROPYLENE
Phillips 66 produces polypropylene resins at its polypropylene plantadjacenttoitsBaywayRefineryinLinden,NewJersey. The product is sold under the COPYLENE® brand. The plant has a nameplate capacity of 775 MMLb/Y.
POWER GENERATION
Phillips 66 owns the 440-megawatt Sweeny Cogeneration PowerPlant.Phillips66’sSweenyRefineryandCPChem’sSweeny facility both use steam and power generated by the plant. Excess power is sold in the power market. Our Rodeo Carbon plant has a steam power plant that generates steam and power for on-site use with excess power sold in the California market. Phillips 66 owns a 37 percent ownership interest in the Nelson Industrial Steam Company, which consumes petroleum coke produced by the Lake Charles Refinery.Generatedsteamissoldtoathirdparty,and power is sold to the local utility.
Lubricants PlantPower Generation FacilitySolvents Manufacturing
Fuels Market Share>20% 10-20% 5-10% <5%
41
RECONCILIATION OF ADJUSTED EARNINGS TO EARNINGS
Non-GAAP Reconciliations
(Millions of Dollars) 2015 2014 2013
PHILLIPS 66Net income attributable to Phillips 66 (earnings) $ 4,227 4,762 3,726 Adjustments:
Asset dispositions (265 ) (494 ) (23 )Impairments – 131 –Impairmentsbyequityaffiliates 256 69 –Pending Claims and settlements (23 ) (10 ) (16 )Exit of business line – – 34Lower-of-cost-or-market inventory adjustments 33 30 –Pension settlement expenses 49 – –Certain tax impacts (84 ) – (17 )Discontinued operations – (706 ) (61 )
Consolidated Adjusted Earnings $ 4,193 3,782 3,643
MIDSTREAMNet income attributable to Phillips 66 (earnings) $ 13 507 469Adjustments:
Asset dispositions (18 ) – –Impairmentsbyequityaffiliates 232 – –Lower-of-cost-or-market inventory adjustments – 1 –Pension settlement expenses 6 – –Certain tax impacts 15 – –
Adjusted Earnings $ 248 508 469
CHEMICALS Net income attributable to Phillips 66 (earnings) $ 962 1,137 986Adjustments:
Impairmentsbyequityaffiliates 24 69 –Lower-of-cost-or-market inventory adjustments – 3 –Certain tax impacts (34 ) – –
Chemicals Adjusted Earnings $ 952 1,209 986
REFINING Net income attributable to Phillips 66 (earnings) $ 2,555 1,771 1,747Adjustments:
Asset dispositions (5 ) (369 ) –Impairments – 131 –Pending Claims and settlements (19 ) 17 –Lower-of-cost-or-market inventory adjustments 33 26 –Pension settlement expenses 32 – –Certain tax impacts (69 ) – (13 )
RefiningAdjustedEarnings $ 2,527 1,576 1,734
MARKETING AND SPECIALTIES Net income attributable to Phillips 66 (earnings) $ 1,187 1,034 894Adjustments:
Asset dispositions (242 ) (125 ) (23 )Pending Claims and settlements – (27 ) (16 )Exit of business line – – 34Pension settlement expenses 7 – –Certain tax impacts (5 ) – (4 )
Marketing and Specialties Adjusted Earnings $ 947 882 885
42 PHILLIPS 66 2016 FACT BOOK
RECONCILIATION OF ADJUSTED EARNINGS TO EARNINGS (CONTINUED)
(Millions of Dollars) 2015 2014 2013
CORPORATENet income attributable to Phillips 66 (earnings) $ (490 ) (393 ) (431 )Adjustments:
Pending Claims and settlements (4 ) – –Pension settlement expenses 4 – –Certain tax impacts 9 – –
Corporate Adjusted Earnings $ (481 ) (393 ) (431 )
RECONCILIATION OF ADJUSTED ROCE TO ROCE
(Millions of Dollars) 2015 2014 2013
PHILLIPS 66NumeratorNet Income $ 4,280 4,797 3,743After-tax interest expense 201 173 178GAAP ROCE earnings 4,481 4,970 3,921Special Items (34 ) (980 ) (83 )Adjusted ROCE earnings $ 4,447 3,990 3,838
DenominatorGAAP average capital employed $ 31,749 29,595 28,130Discontinued operations – (96 ) (192 )Adjusted average capital employed $ 31,749 29,499 27,938
GAAP ROCE (percent) 14 % 17 % 14 %Adjusted ROCE (percent) 14 % 14 % 14 %
ADJUSTED EBITDA RECONCILIATION
(Millions of Dollars) 2015 2014 2013
PHILLIPS 66Net income attributable to Phillips 66 4,227 4,762 3,726Less:
Income from discontinued operations – 706 61Plus:
Net income attributable to noncontrolling interests 53 35 17Provision for income taxes 1,764 1,654 1,844Net interest expense 283 246 258Depreciation and amortization 1,078 995 947
Phillips 66 EBITDA 7,405 6,986 6,731
Adjustments (pretax):EBITDA attributable to Phillips 66 noncontrolling interests (73 ) (45 ) (24 )Proportionalshareofselectedequityaffiliatesincometaxes 86 117 93Proportionalshareofselectedequityaffiliatesnetinterest 140 108 25Proportionalshareofselectedequityaffiliatesdepreciationandamortization 682 653 622Asset dispositions (280 ) (270 ) (40 )Impairments – 131 –Impairmentsbyequityaffiliates 390 88 –Exit of a business line – – 54Pending claims and settlements 30 (21 ) (25 )Certain tax impacts – – (28 )Lower-of-cost-or-market inventory adjustments 53 45 –Pension settlement expense 80 – –
Phillips 66 Adjusted EBITDA 8,513 7,792 7,408
43
Non-GAAP ReconciliationsADJUSTED EBITDA RECONCILIATION (CONTINUED)
(Millions of Dollars) 2015 2014 2013
MIDSTREAMNet income attributable to Phillips 66 13 507 469Plus:
Net income attributable to noncontrolling interests 61 35 17Provision for income taxes 73 309 264Depreciation and amortization 127 91 88
Midstream EBITDA 274 942 838
Adjustments (pretax):EBITDA attributable to Phillips 66 noncontrolling interests (73 ) (45 ) (24 )Proportionalshareofselectedequityaffiliatesincometaxes (2) 3 4Proportionalshareofselectedequityaffiliatesnetinterest 133 118 110Proportionalshareofselectedequityaffiliatesdepreciationandamortization 166 150 139Lower-of-cost-or-market inventory adjustments – 2 –Asset dispositions (30 ) – – Impairmentsbyequityaffiliates 366 – –Pension settlement expenses 9 – –
Midstream Adjusted EBITDA* 843 1,170 1,067
*Proportional share of selected equity affiliates is net of noncontrolling interests.
CHEMICALSNet income attributable to Phillips 66 962 1,137 986Plus:
Provision for income taxes 353 495 375Chemicals EBITDA 1,315 1,632 1,361
Adjustments (pretax):Proportionalshareofselectedequityaffiliatesincometaxes 91 111 93Proportionalshareofselectedequityaffiliatesnetinterest 7 9 10Proportionalshareofselectedequityaffiliatesdepreciationandamortization 264 258 246Impairmentsbyequityaffiliates 24 88 –Lower-of-cost-or-market inventory adjustments – 3 –
Chemicals Adjusted EBITDA 1,701 2,101 1,710
REFININGNet income attributable to Phillips 66 2,555 1,771 1,747Plus:
Provision for income taxes 1,104 696 1,035Depreciation and amortization 738 704 685
RefiningEBITDA 4,397 3,171 3,467
Adjustments (pretax):Proportionalshareofselectedequityaffiliatesincometaxes (3) 3 (4)Proportionalshareofselectedequityaffiliatesnetinterest – (19) (95)Proportionalshareofselectedequityaffiliatesdepreciationandamortization 252 245 237Asset dispositions (8 ) (145 ) – Impairments – 131 –Pending claims and settlements 30 23 –Certain tax impacts – – (22 )Lower-of-cost-or-market inventory adjustments 53 40 –Pension settlement expenses 53 – –
RefiningAdjustedEBITDA 4,774 3,449 3,583
44 PHILLIPS 66 2016 FACT BOOK
(Millions of Dollars) 2015 2014 2013
MARKETING AND SPECIALTIESNet income attributable to Phillips 66 1,187 1,034 894Plus:
Provision for income taxes 465 441 433Net interest expense (2 ) – – Depreciation and amortization 97 95 103
Marketing and Specialties EBITDA 1,747 1,570 1,430
Adjustments (pretax):Asset dispositions (242 ) (125 ) (40)Pending claims and settlements – (44 ) (25 )Exit of a business line – – 54Certain tax impacts – – (6 )Pension settlement expenses 11 – –
Marketing and Specialties Adjusted EBITDA 1,516 1,401 1,413
CORPORATENet income (loss) attributable to Phillips 66 (490 ) (393 ) (431 )Plus:
Net income attributable to noncontrolling interests (8 ) – –Provision for income taxes (231 ) (287 ) (263 )Net interest expense 285 246 258 Depreciation and amortization 116 105 71
Corporate EBITDA (328 ) (329 ) (365 )
Adjustments (pretax):Pension settlement expenses 7 – –
Corporate Adjusted EBITDA (321 ) (329 ) (365 )
ADJUSTED EBITDA RECONCILIATION (CONTINUED)
RECONCILIATION OF NET-DEBT-TO-CAPITAL RATIO
PHILLIPS 66 2015 2014 2013
Total Debt ($MM) 8,887 8,635 6,125Total Equity ($MM) 23,938 22,037 22,392Debt-to-capital ratio 27 % 28 % 21 %
Cash and cash equivalents ($MM) 3,074 5,207 5,400Net-debt-to-capital ratio 20 % 13 % 3 %
45
SAFE HARBOR STATEMENT
This Fact Book 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,” “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 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 Fact Book was prepared. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptionsthataredifficulttopredict.Therefore,actualoutcomesand 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 intheforward-lookingstatementsincludefluctuationsincrudeoil,NGL,andnaturalgasprices,andrefiningandpetrochemicalmargins; unexpected changes in costs for constructing, modifying oroperatingourfacilities;unexpecteddifficultiesinmanufacturing,refiningortransportingourproducts;lackof,ordisruptionsin,adequate and reliable transportation for our crude oil, natural gas, NGL,andrefinedproducts;potentialliabilityfromlitigationorforremedial actions, including removal and reclamation obligations under environmental regulations; limited access to capital or significantlyhighercostofcapitalrelatedtoilliquidityoruncertaintyinthedomesticorinternationalfinancialmarkets;andothereconomic, business, competitive and/or regulatory factors affecting Phillips66’sbusinessesgenerallyassetforthinourfilingswiththe 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.
UNITS OF MEASURE
BBtu/d Billion British thermal units per dayBCF Billion cubic feetBCFD Billions of cubic feet per dayBLb/Y Billions of pounds per yearBPD Barrels per dayBtu British thermal unitsBTUD British thermal units per dayLb/MBbl Pounds per thousand barrelsMBbl Thousands of barrelsMBD Thousands of barrels per dayMCFD Thousands of cubic feet per dayMMBbl Millions of barrelsMMBD Millions of barrels per dayMMCFD Millions of cubic feet per dayMMLb/Y Millions of pounds per yearTBTU Trillion British thermal unitsTBtu/d Trillion British thermal units per day
COMMONLY USED ABBREVIATIONS
NGL Natural gas liquidsROCE Return on capital employedLPG LiquefiedpetroleumgasPADD Petroleum Administration for Defense Districts
DATA
Distillate capacity includes aviation fuels. The Nelson Complexity Factor calculation considers the variety and capacity of the different processingunitswithinarefinery.Thehigherarefinery’sfactor,thegreater its secondary conversion capacity and capability to produce higher-value products.
46 PHILLIPS 66 2016 FACT BOOK
Phillips 66, Conoco, 76, Kendall, JET and their respective logos are registered trademarks of Phillips 66 Company. Other products and logos mentioned herein may be trademarks of their respective owners.
Phillips 66 P.O. Box 4428 Houston, TX 77210
www.phillips66.com
© 2016 Phillips 66 Company. All rights reserved.