signaturesd18rn0p25nwr6d.cloudfront.net/cik-0001572910/5a51...third quarter of 2019. in connection...

UNITED STATESSECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported): February 8, 2019

Phillips 66 Partners LP(Exact name of registrant as specified in its charter)

Delaware 001-36011 38-3899432(State or other jurisdiction

of incorporation) (CommissionFile Number)

(I.R.S. EmployerIdentification No.)

2331 CityWest Blvd., Houston, Texas 77042(Address of principal executive offices and zip code)

Registrant’s telephone number, including area code: (855) 283-9237

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the followingprovisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) orRule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new orrevised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.02 Results of Operations and Financial Condition.

On February 8, 2019 , Phillips 66 Partners LP issued a press release announcing the partnership’s financial and operating results for the quarter endedDecember 31, 2018 . A copy of the press release is attached as Exhibit 99.1 hereto and incorporated herein by reference. Additional financial and operatinginformation about the quarter is attached as Exhibit 99.2 hereto and incorporated herein by reference. The information in this report and the exhibits hereto shall be treated as filed for purposes of the Securities Exchange Act of 1934, as amended.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

99.1 — Press release issued by Phillips 66 Partners LP on February 8, 2019 .

99.2 — Supplemental financial and operating information.

1

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersignedhereunto duly authorized.

PHILLIPS 66 PARTNERS LP By: Phillips 66 Partners GP LLC, its general partner

By: /s/ Chukwuemeka A. Oyolu

ChukwuemekaA.OyoluVice President and Controller

Date: February 8, 2019

2

EXHIBIT INDEX

Exhibit No. Description

99.1 Press release issued by Phillips 66 Partners LP on February 8, 2019. 99.2 Supplemental financial and operating information.

3

Phillips66PartnersReportsFourth-QuarterEarnings

Exhibit 99.1

Phillips 66 Partners ReportsFourth-Quarter 2018 Earnings

Highlights

FourthQuarter• Reportedearningsof$221millionandadjustedEBITDAof$309million• Raisedquarterlydistributionby5.4percentto$0.835percommonunit• Achievedfive-year30percentdistributionCAGR• Recordpipelineandterminalthroughputvolumes• CommencedSweenytoPasadenaproductsexpansionproject

Full-Year2018• Reportedearningsof$796millionandadjustedEBITDAof$1.1billion• Increaseddistributionspercommonunitby22percent• ExpandedSandHillsPipelinecapacityto485,000BPD• Receivedrecorddistributionsof$477millionfromequityaffiliates• Progressedconstructionof900,000-BPDGrayOakPipeline

HOUSTON,Feb.8,2019–Phillips66PartnersLP(NYSE:PSXP)announcesfourth-quarter2018earningsof$221million,or$1.09perdilutedcommonunit.Cashfromoperationswas$240million,anddistributablecashflowwas$238million.AdjustedEBITDAwas$309millioninthefourthquarter,comparedwith$305millioninthepriorquarter.

“Weended2018withanotherstrongquarter,runningsafelyandreliablywhiledeliveringrecordfinancialresults,”saidGregGarland,Phillips66Partners’chairmanandCEO.“Ourassetsperformedwell,weachievedour30percentfive-yeardistributionCAGRtarget,andwefurtheradvancedourorganicgrowthprojects.Ourdisciplinedapproachtocapitalinvestment,alongwithourscaleandfinancialstrength,positionsuswellforfuturegrowth.Wewillcontinuetorewardourunitholdersthroughincreasingdistributions.”

OnJan.22,2019,thegeneralpartner’sboardofdirectorsdeclaredafourth-quarter2018cashdistributionof$0.835percommonunit,a5.4percentincreaseoverthepreviousquarterdistributionof$0.792percommonunit.ThePartnershiphasincreaseditsdistributionpercommonuniteveryquartersinceitsinitialpublicofferinginJuly2013.

Page1


Financial Results

Phillips66Partners’fourth-quarterearningswere$221million,comparedwith$217millioninthepriorquarter.ThePartnershipreportedadjustedEBITDAof$309millioninthefourthquarter,comparedwith$305millioninthethirdquarter.Theimprovementreflectshigherequityearnings,mainlyduetoincreasedBakkenPipelinevolumes.

Liquidity, Capital Expenditures and Investments

AsofDec.31,2018,totaldebtoutstandingwas$3billion.ThePartnershiphad$1millionincashandcashequivalentsand$625millionavailableunderitsrevolvingcreditfacility.

ThePartnership’stotalcapitalspendingforthequarterwas$331million,including$20millionofmaintenancecapital.Expansioncapitalof$311millionincludedinvestmentsintheGrayOak,SandHillsandBayouBridgepipelines,aswellasspendonthenewisomerizationunitatthePhillips66LakeCharlesRefineryandtheClemensCavernsexpansion.

Strategic Update

Phillips66PartnersisexpandingtheSweenytoPasadenaPipelineby80,000barrelsperday(BPD).Inaddition,productsstoragecapacitywillbeincreasedby300,000barrelsatthePasadenaTerminalandnewconnectivitywillbeaddedtothird-partyterminals.Theprojectisexpectedtobecompletedinthesecondquarterof2020.

ThePartnershipisconstructingthe900,000-BPDGrayOakPipeline,whichwillprovidecrudeoiltransportationfromthePermianandEagleFordtodestinationsinCorpusChristiandFreeport,includingthePhillips66SweenyRefinery.Phillips66Partnerswillhavea42.25percentownershipinthepipeline,whichisanticipatedtobeinservicebytheendof2019.

TheGrayOakPipelinewillconnecttomultipleterminalsinCorpusChristi,includingthenewSouthTexasGatewayTerminalunderdevelopmentbyBuckeyePartners,L.P.Themarineterminalwillhavetwodeepwaterdocksandplannedstoragecapacityof6.5millionto7millionbarrels.Phillips66Partnersownsa25percentinterestintheterminal,whichisexpectedtostartupbymid-2020.

TheSandHillsPipelineexpansionwascompletedinthefourthquarterof2018,increasingthecapacityto485,000BPD.Thepipelinetransportsnaturalgasliquids(NGL)fromthePermianandEagleFordtotheTexasGulfCoastandisownedone-thirdbythePartnership.

TheBayouBridgePipelineoperatesfromNederland,Texas,toLakeCharles,Louisiana.CommercialoperationsfortheextensionfromLakeCharlestoSt.James,Louisiana,areexpectedtobegininMarch.Phillips66Partnersownsa40percentinterestinthejointventure.

ThePartnershipisconstructinga25,000-BPDisomerizationunitatthePhillips66LakeCharlesRefinerytoincreaseproductionofhigher-octanegasolineblendcomponents.Theprojectincludesalong-termagreementwithPhillips66forprocessingserviceswithaminimumvolumecommitment.Completionisexpectedinthethirdquarterof2019.

InconnectionwiththePhillips66projecttoaddNGLfractionationcapacityattheSweenyHub,thePartnershipisincreasingstoragecapacityatClemensCavernsfrom9millionbarrelsto15millionbarrels.Thecavernsexpansionisexpectedtobecompletedinlate2020.

Page2


Phillips66PartnersisconstructinganewpipelinethatwillconnectstorageinLakeCharles,Louisiana,toitsCliftonRidgeMarineTerminal.Thisconnectionisexpectedtoenableadditionalproductexportsofupto50,000BPDfromthePhillips66LakeCharlesRefinery.Theprojectisbackedbyalong-termagreementthatincludesaminimumvolumecommitment.Thepipelineisexpectedtobecompletedinthesecondquarterof2019.

Page3


Investor Webcast

MembersofPhillips66Partnersexecutivemanagementwillhostawebcasttodayat2p.m.ESTtodiscussthePartnership’sfourth-quarterperformance.Tolistentotheconferencecallandviewrelatedpresentationmaterials,gotowww.phillips66partners.com/events.Fordetailedsupplementalinformation,gotowww.phillips66partners.com/reports.

About Phillips 66 Partners

HeadquarteredinHouston,Phillips66Partnersisagrowth-orientedmasterlimitedpartnershipformedbyPhillips66toown,operate,developandacquireprimarilyfee-basedcrudeoil,refinedpetroleumproductsandnaturalgasliquidspipelines,terminalsandothermidstreamassets.Formoreinformation,visitwww.phillips66partners.com.

- # # # -

CONTACTS

JeffDietert(investors)[email protected]

BrentShaw(investors)[email protected]

DennisNuss(media)[email protected]

Page4


CAUTIONARY STATEMENT FOR THE PURPOSES OF THE “SAFE HARBOR” PROVISIONSOF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

Thisnewsreleasecontainscertainforward-lookingstatementswithinthemeaningofSection27AoftheSecuritiesActof1933,asamended,andSection21EoftheSecuritiesExchangeActof1934,asamended,whichareintendedtobecoveredbythesafeharborscreatedthereby.Wordsandphrasessuchas“isanticipated,”“isestimated,”“isexpected,”“isplanned,”“isscheduled,”“istargeted,”“believes,”“continues,”“intends,”“will,”“would,”“objectives,”“goals,”“projects,”“efforts,”“strategies”andsimilarexpressionsareusedtoidentifysuchforward-lookingstatements.However,theabsenceofthesewordsdoesnotmeanthatastatementisnotforward-looking.Forward-lookingstatementsrelatingtoPhillips66Partners’operations(includingjointventureoperations)arebasedonmanagement’sexpectations,estimatesandprojectionsaboutthecompany,itsinterestsandtheenergyindustryingeneralonthedatethisnewsreleasewasprepared.Thesestatementsarenotguaranteesoffutureperformanceandinvolvecertainrisks,uncertaintiesandassumptionsthataredifficulttopredict.Therefore,actualoutcomesandresultsmaydiffermateriallyfromwhatisexpressedorforecastinsuchforward-lookingstatements.Factorsthatcouldcauseactualresultsoreventstodiffermateriallyfromthosedescribedintheforward-lookingstatementsincludethecontinuedabilityofPhillips66tosatisfyitsobligationsunderourcommercialandotheragreements;thevolumeofcrudeoil,refinedpetroleumproductsandNGLweorourjointventurestransport,fractionate,terminalandstore;thetariffrateswithrespecttovolumesthatwetransportthroughourregulatedassets,whichratesaresubjecttoreviewandpossibleadjustmentbyfederalandstateregulators;fluctuationsinthepricesforcrudeoil,refinedpetroleumproductsandNGL;liabilitiesassociatedwiththerisksandoperationalhazardsinherentintransporting,fractionating,terminalingandstoringcrudeoil,refinedpetroleumproductsandNGL;potentialliabilityfromlitigationorforremedialactions,includingremovalandreclamationobligationsunderenvironmentalregulations;thefailuretocompleteconstructionofannouncedandfuturecapitalprojectsinatimelymannerandanycostoverrunsassociatedwithsuchprojects;andothereconomic,business,competitiveand/orregulatoryfactorsaffectingPhillips66Partners’businessesgenerallyassetforthinourfilingswiththeSecuritiesandExchangeCommission.Phillips66Partnersisundernoobligation(andexpresslydisclaimsanysuchobligation)toupdateoralteritsforward-lookingstatements,whetherasaresultofnewinformation,futureeventsorotherwise.

Use of Non-GAAP Financial Information —Thisnewsreleaseincludestheterms“EBITDA,”“adjustedEBITDA,”“distributablecashflow,”and“coverageratio.”Thesearenon-GAAPfinancialmeasures.EBITDAandadjustedEBITDAareincludedtohelpfacilitatecomparisonsofoperatingperformanceofthePartnershipwithothercompaniesinourindustry.EBITDAanddistributablecashflowhelpfacilitateanassessmentofourabilitytogeneratesufficientcashflowtomakedistributionstoourpartners.WebelievethatthepresentationofEBITDA,adjustedEBITDAanddistributablecashflowprovidesusefulinformationtoinvestorsinassessingourfinancialconditionandresultsofoperations.OurcoverageratioiscalculatedasdistributablecashflowdividedbytotalcashdistributionsandisincludedtohelpindicatethePartnership’sabilitytopaycashdistributionsfromcurrentearnings.TheGAAPperformancemeasuremostdirectlycomparabletoEBITDAandadjustedEBITDAisnetincome.TheGAAPliquiditymeasuremostcomparabletoEBITDAanddistributablecashflowisnetcashprovidedbyoperatingactivities.TheGAAPfinancialmeasuremostcomparabletoourcoverageratioiscalculatedasnetcashprovidedbyoperatingactivitiesdividedbytotalcashdistributions.Thesenon-GAAPfinancialmeasuresshouldnotbeconsideredasalternativestoGAAPnetincomeornetcashprovidedbyoperatingactivities.Theyhaveimportantlimitationsasanalyticaltoolsbecausetheyexcludesomebutnotallitemsthataffectnetincomeandnetcashprovidedbyoperatingactivities.TheyshouldnotbeconsideredinisolationorassubstitutesforanalysisofourresultsasreportedunderGAAP.Additionally,becauseEBITDA,adjustedEBITDAanddistributablecashflowmaybedefineddifferentlybyothercompaniesinourindustry,ourdefinitionofEBITDA,adjustedEBITDAanddistributablecashflowmaynotbecomparabletosimilarlytitledmeasuresofothercompanies,therebydiminishingtheirutility.

AreconciliationofcurrentquarteradjustedEBITDAtonetincomeaccompaniesthisrelease.Thedisaggregationofcapitalspendingbetweenexpansion/growthandmaintenanceisnotadistinctionrecognizedunderGAAP.WeprovidesuchdisaggregationbecausethePartnershipwillgenerallyfundmaintenancecapitalspendingwithcashfromoperatingactivitiesandfundexpansion/growthcapitalspendingwithfinancingactivities.Webelievethisisanimportantdistinctioninourliquidityprofile.

ReferencesinthereleasetoearningsandcapitalspendingrefertonetincomeandcapitalspendingattributabletothePartnership,respectively.ReferencestoEBITDArefertoearningsbeforeinterest,incometaxes,depreciationandamortization.

Page5


Results of Operations (Unaudited)

Summarized Financial Statement Information

Millions of Dollars

Except as Indicated Q4 2018 Q3 2018 Selected Income Statement Data

Totalrevenuesandotherincome $ 393 384

Netincome 221 217

NetincomeattributabletothePartnership 221 217

AdjustedEBITDA 309 305

Distributablecashflow 238 218

Net Income Attributable to the PartnershipPer Limited Partner Unit—Diluted (Dollars)

Commonunits $ 1.09 1.10

Selected Balance Sheet Data

Cashandcashequivalents $ 1 100

Equityinvestments 2,448 2,215

Totalassets 5,819 5,643

Totaldebt 3,048 2,922

Equityheldbypublic

Preferredunits 746 746

Commonunits 2,485 2,451

EquityheldbyPhillips66

Commonunits 592 567

Generalpartner (1,313) (1,320)

Page6


Statement of Income

Millions of Dollars Q4 2018 Q3 2018 Revenues and Other Income

Operatingrevenues—relatedparties $ 263 256

Operatingrevenues—thirdparties 7 9

Equityinearningsofaffiliates 123 118

Otherincome — 1

Total revenues and other income 393 384

Costs and Expenses

Operatingandmaintenanceexpenses 88 84

Depreciation 30 30

Generalandadministrativeexpenses 16 16

Taxesotherthanincometaxes 8 8

Interestanddebtexpense 28 28

Otherexpenses — 1

Total costs and expenses 170 167

Incomebeforeincometaxes 223 217

Incometaxexpense 2 —

Net income 221 217

Less:NetincomeattributabletoPredecessors — —

Net income attributable to the Partnership 221 217

Less:Preferredunitholders’interestinnetincomeattributabletothePartnership 9 9

Less:Generalpartner’sinterestinnetincomeattributabletothePartnership 68 64

Limited partners’ interest in net income attributable to the Partnership $ 144 144

Page7


Selected Operating Data

Q4 2018 Q3 2018 Wholly Owned Operating Data

Pipelines

Pipelinerevenues(millionsofdollars) $ 118 123

Pipelinevolumes(1)(thousandsofbarrelsdaily)

Crudeoil 1,049 1,047

Refinedpetroleumproductsandnaturalgasliquids 1,035 959

Total 2,084 2,006

Averagepipelinerevenueperbarrel(dollars) $ 0.61 0.66

Terminals

Terminalrevenues(millionsofdollars) $ 43 37

Terminalthroughput(thousandsofbarrelsdaily)

Crudeoil(2) 460 436

Refinedpetroleumproducts 839 754

Total 1,299 1,190

Averageterminalingrevenueperbarrel(dollars) $ 0.35 0.33

Storage,processingandotherrevenues(millionsofdollars) $ 109 105

Total operating revenues (millions of dollars) $ 270 265

Joint Venture Operating Data (3)

Crudeoil,refinedpetroleumproductsandnaturalgasliquids(thousandsofbarrelsdaily) 699 668(1)Representsthesumofvolumestransportedthrougheachseparatelytariffedpipelinesegment.(2)BaywayandFerndalerailrackvolumesincludedincrudeoilterminals.(3)Proportionalshareoftotalpipelineandterminalvolumesofjointventuresconsistentwithrecognizedequityinearningsofaffiliates.

Capital Expenditures and Investments Millions of Dollars Q4 2018 Q3 2018

Capital Expenditures and Investments

Expansion $ 311 173

Maintenance 20 24

Total Partnership 331 197

Predecessors — —

Total Consolidated $ 331 197

Page8


Cash Distributions

Millions of Dollars

Except as Indicated Q4 2018 Q3 2018 Cash Distributions †

Commonunits—public $ 46 44

Commonunits—Phillips66 58 55

Generalpartner—Phillips66 67 61

Total $ 171 160

Cash Distribution Per Common Unit (Dollars) $ 0.835 0.792

Coverage Ratio * 1.39 1.36†Cashdistributionsdeclaredattributabletotheindicatedperiods.*Calculatedasdistributablecashflowdividedbytotalcashdistributions.UsedtoindicatethePartnership’sabilitytopaycashdistributionsfromcurrentearnings.Netcashprovidedbyoperatingactivitiesdividedbytotalcashdistributionswas1.40xand1.59xatQ42018andQ32018,respectively.

Page9


Reconciliation of Adjusted EBITDA and Distributable Cash Flow to Net Income

Millions of Dollars Q4 2018 Q3 2018

Net income attributable to the Partnership $ 221 217

Plus:

NetincomeattributabletoPredecessors — —

Net Income 221 217

Plus:

Depreciation 30 30

Netinterestexpense 28 28


EBITDA 281 275

Proportionalshareofequityaffiliates’netinterest,taxesanddepreciation 28 30

ExpensesindemnifiedorprefundedbyPhillips66 — —

Transactioncostsassociatedwithacquisitions — —

EBITDAattributabletoPredecessors — —

Adjusted EBITDA 309 305

Plus:

Deferredrevenueimpacts* † (1) (5)

Less:

EquityaffiliatedistributionslessthanproportionalEBITDA 14 22

Maintenancecapitalexpenditures† 19 23


Preferredunitdistributions 9 9

Distributable cash flow $ 238 218* Differencebetweencashreceiptsandrevenuerecognition.†ExcludesMereySweenycapitalreimbursementsandturnaroundimpacts.

Page10


Reconciliation of Adjusted EBITDA and Distributable Cash Flow to Net Cash Provided by Operating Activities

Millions of Dollars Q4 2018 Q3 2018

Net Cash Provided by Operating Activities $ 240 255

Plus:



Changesinworkingcapital 14 (7)

Undistributedequityearnings — (2)

Deferredrevenuesandotherliabilities (2) 1

Other (1) —

EBITDA 281 275

Proportionalshareofequityaffiliates’netinterest,taxesanddepreciation 28 30

ExpensesindemnifiedorprefundedbyPhillips66 — —

Transactioncostsassociatedwithacquisitions — —

EBITDAattributabletoPredecessors — —

Adjusted EBITDA 309 305

Plus:

Deferredrevenueimpacts* † (1) (5)

Less:

EquityaffiliatedistributionslessthanproportionalEBITDA 14 22

Maintenancecapitalexpenditures† 19 23


Preferredunitdistributions 9 9

Distributable cash flow $ 238 218*Differencebetweencashreceiptsandrevenuerecognition.†ExcludesMereySweenycapitalreimbursementsandturnaroundimpacts.

Page11

Exhibit 99.2

Phillips 66 Partners LP Earnings Release Supplemental Data

Factors Affecting Comparability

Thefollowingtablespresentourfinancialresultsandoperatingdataforeachquarterlyperiodofthecurrentandpriorfiscalyears.Duringtheperiodscoveredbythisreport,weacquiredbusinessesfromPhillips66thatwereconsideredtransfersofbusinessesbetweenentitiesundercommoncontrol,whichrequiresthemtobeaccountedforasifthetransfershadoccurredatthebeginningoftheperiodoftransfer,withfinancialstatementsforpriorperiodsretrospectivelyadjustedtofurnishcomparativeinformation.Accordingly,theconsolidatedfinancialandoperatinginformationincludedinthefollowingtableshasbeenretrospectivelyadjustedtoincludethehistoricalfinancialandoperatingresultsoftheseacquiredbusinessespriortotheeffectivedateofacquisition.Werefertotheresultsofthesepre-acquisitionperiodsasthoseofour“Predecessors”inthetablesbelow.Tableslabeled“Phillips66PartnersLP”excludePredecessors,whiletableslabeled“Consolidated”includePredecessors.Thestatementsofincomeprovidedonpages1through3aredesignedtoenableuserstoevaluatethefinancialeffectofthesebusinesscombinationsinaccordancewithAccountingStandardCodification805-10-50-1.

STATEMENT OF INCOME

PHILLIPS 66 PARTNERS LP MillionsofDollars

2018 2017 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD

Revenues and Other Income

Operatingrevenues—relatedparties 249 244 256 263 1,012 184 186 193 244 807

Operatingrevenues—thirdparties 7 10 9 7 33 10 11 11 8 40

Equityinearningsofaffiliates 98 100 118 123 439 33 37 41 74 185

Otherincome 1 — 1 — 2 7 — — 1 8

Total revenues and other income 355 354 384 393 1,486 234 234 245 327 1,040

Costs and Expenses

Operatingandmaintenanceexpenses 97 85 84 88 354 62 57 69 81 269

Depreciation 28 29 30 30 117 26 26 30 28 110

Generalandadministrativeexpenses 16 16 16 16 64 16 16 16 17 65

Taxesotherthanincometaxes 10 9 8 8 35 9 7 7 8 31

Interestanddebtexpense 30 29 28 28 115 24 24 23 29 100

Otherexpenses — — 1 — 1 — — 1 — 1

Total costs and expenses 181 168 167 170 686 137 130 146 163 576

Incomebeforeincometaxes 174 186 217 223 800 97 104 99 164 464Incometaxexpense 2 — — 2 4 — 1 — 2 3

Net income 172 186 217 221 796 97 103 99 162 461Less:Preferredunitholders’interestinnetincomeattributabletothePartnership 9 10 9 9 37 — — — 9 9

Less:Generalpartner’sinterestinnetincomeattributabletothePartnership 53 55 64 68 240 32 37 43 48 160

Limited partners’ interest in net incomeattributable to the Partnership 110 121 144 144 519 65 66 56 105 292

Adjusted EBITDA 247 276 305 309 1,137 163 166 171 254 754

Distributable Cash Flow 194 204 218 238 854 124 140 136 172 572

Page1

Exhibit 99.2

STATEMENT OF INCOME (continued)

PREDECESSORS MillionsofDollars

2018 2017 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr* 2nd Qtr* 3rd Qtr* 4th Qtr † YTD

Revenues and Other Income

Operatingrevenues—relatedparties — — — — — 26 30 29 2 87

Equityinearningsofaffiliates — — — — — — 11 25 2 38

Otherincome — — — — — 2 2 — — 4

Total revenues and other income — — — — — 28 43 54 4 129

Costs and Expenses

Operatingandmaintenanceexpenses — — — — — 12 22 17 1 52

Depreciation — — — — — 2 2 2 — 6

Generalandadministrativeexpenses — — — — — 1 2 1 — 4

Taxesotherthanincometaxes — — — — — — 1 — 1 2

Interestanddebtexpense — — — — — — — 1 — 1

Total costs and expenses — — — — — 15 27 21 2 65

Incomebeforeincometaxes — — — — — 13 16 33 2 64

Incometaxexpense — — — — — — — 1 — 1

Net income attributable to Predecessors — — — — — 13 16 32 2 63

EBITDA attributable to Predecessors* — — — — — 14 17 36 2 69

*Includesroundingimpacts. †InaccordancewithcontractualtermsoftheBakkenPipeline/MereySweenyacquisition,Q42017EBITDAattributabletoPredecessorsdidnotaffectQ42017DistributableCashFlowastheeffectiveclosingdateofthetransactionwasOctober1,2017.

Page2

Exhibit 99.2

STATEMENT OF INCOME (continued)

CONSOLIDATED MillionsofDollars,ExceptasIndicated

2018 2017 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTDRevenues and Other IncomeOperatingrevenues—relatedparties 249 244 256 263 1,012 210 216 222 246 894Operatingrevenues—thirdparties 7 10 9 7 33 10 11 11 8 40Equityinearningsofaffiliates 98 100 118 123 439 33 48 66 76 223Otherincome 1 — 1 — 2 9 2 — 1 12

Total revenues and other income 355 354 384 393 1,486 262 277 299 331 1,169

Costs and Expenses Operatingandmaintenanceexpenses 97 85 84 88 354 74 79 86 82 321Depreciation 28 29 30 30 117 28 28 32 28 116Generalandadministrativeexpenses 16 16 16 16 64 17 18 17 17 69Taxesotherthanincometaxes 10 9 8 8 35 9 8 7 9 33Interestanddebtexpense 30 29 28 28 115 24 24 24 29 101Otherexpenses — — 1 — 1 — — 1 — 1

Total costs and expenses 181 168 167 170 686 152 157 167 165 641Incomebeforeincometaxes 174 186 217 223 800 110 120 132 166 528Incometaxexpense 2 — — 2 4 — 1 1 2 4Net income 172 186 217 221 796 110 119 131 164 524Less:NetincomeattributabletoPredecessors — — — — — 13 16 32 2 63Net income attributable to the Partnership 172 186 217 221 796 97 103 99 162 461Less:Preferredunitholders’interestinnetincomeattributabletothePartnership 9 10 9 9 37 — — — 9 9

Less:Generalpartner’sinterestinnetincomeattributabletothePartnership 53 55 64 68 240 32 37 43 48 160

Limited partners’ interest in net incomeattributable to the Partnership 110 121 144 144 519 65 66 56 105 292

Net Income Attributable to the Partnership Per

Limited Partner Unit (dollars) Commonunits—basic 0.91 0.99 1.17 1.16 4.22 0.60 0.61 0.51 0.86 2.60Commonunits—diluted 0.87 0.94 1.10 1.09 4.00 0.60 0.61 0.51 0.83 2.59

Weighted-Average Limited Partner Units

Outstanding (thousands) Commonunits—basic 121,610 122,189 123,270 123,975 122,769 107,400 109,189 110,506 120,953 112,045

Commonunits—diluted 135,429 136,008 137,090 137,795 136,588 107,400 109,189 110,506 134,021 115,339

Page3

Exhibit 99.2

SELECTED OPERATING DATA PHILLIPS 66 PARTNERS LP 2018 2017 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTDWholly Owned Operating Data

Pipelines

Pipelinerevenues(millionsofdollars) 102 111 123 118 454 102 103 109 110 424

Pipelinevolumes(1)(thousandsofbarrelsdaily)

Crudeoil 947 1,020 1,047 1,049 1,016 874 871 952 968 916

RefinedpetroleumproductsandNGL 798 920 959 1,035 929 932 973 917 978 950

Total 1,745 1,940 2,006 2,084 1,945 1,806 1,844 1,869 1,946 1,866

Averagepipelinerevenueperbarrel(dollars) 0.65 0.63 0.66 0.61 0.64 0.63 0.61 0.63 0.62 0.62

Terminals

Terminalrevenues(millionsofdollars) 39 38 37 43 157 37 37 38 40 152Terminalthroughput(thousandsofbarrelsdaily)

Crudeoil(2) 483 471 436 460 462 363 374 467 478 421

Refinedpetroleumproducts 719 806 754 839 780 801 742 726 798 767

Total 1,202 1,277 1,190 1,299 1,242 1,164 1,116 1,193 1,276 1,188

Averageterminalingrevenueperbarrel(dollars) 0.36 0.33 0.33 0.35 0.34 0.35 0.36 0.35 0.34 0.35

Storage,processingandotherrevenues(millionsofdollars) 115 105 105 109 434 55 57 57 102 271

Total operating revenues (millions ofdollars) 256 254 265 270 1,045 194 197 204 252 847

Joint Venture Operating Data (3) Crudeoil,refinedpetroleumproductsandNGL(thousandsofbarrelsdaily) 603 638 668 699 652 350 443 533 559 472

(1)Representsthesumofvolumestransportedthrougheachseparatelytariffedpipelinesegment.(2)BaywayandFerndalerailrackvolumesincludedincrudeoilterminals.(3)Proportionalshareoftotalpipelineandterminalvolumesofjointventuresconsistentwithrecognizedequityinearningsofaffiliates.

Page4

Exhibit 99.2

SELECTED OPERATING DATA (continued) CONSOLIDATED 2018 2017 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTDWholly Owned Operating Data

Pipelines

Pipelinerevenues(millionsofdollars) 102 111 123 118 454 102 103 109 110 424

Pipelinevolumes(1)(thousandsofbarrelsdaily) Crudeoil 947 1,020 1,047 1,049 1,016 874 871 952 968 916RefinedpetroleumproductsandNGL 798 920 959 1,035 929 932 973 917 978 950

Total 1,745 1,940 2,006 2,084 1,945 1,806 1,844 1,869 1,946 1,866

Averagepipelinerevenueperbarrel(dollars) 0.65 0.63 0.66 0.61 0.64 0.63 0.61 0.63 0.62 0.62

Terminals

Terminalrevenues(millionsofdollars) 39 38 37 43 157 37 37 38 40 152Terminalthroughput(thousandsofbarrelsdaily) Crudeoil(2) 483 471 436 460 462 363 374 467 478 421Refinedpetroleumproducts 719 806 754 839 780 801 742 726 798 767

Total 1,202 1,277 1,190 1,299 1,242 1,164 1,116 1,193 1,276 1,188

Averageterminalingrevenueperbarrel(dollars) 0.36 0.33 0.33 0.35 0.34 0.35 0.36 0.35 0.34 0.35

Storage,processingandotherrevenues(millionsofdollars) 115 105 105 109 434 81 87 86 104 358

Total operating revenues (millions ofdollars) 256 254 265 270 1,045 220 227 233 254 934

Joint Venture Operating Data (3) Crudeoil,refinedpetroleumproductsandNGL(thousandsofbarrelsdaily) 603 638 668 699 652 350 443 533 559 472

(1)Representsthesumofvolumestransportedthrougheachseparatelytariffedpipelinesegment. (2)BaywayandFerndalerailrackvolumesincludedincrudeoilterminals.(3)Proportionalshareoftotalpipelineandterminalvolumesofjointventuresconsistentwithrecognizedequityinearningsofaffiliates.

Page5

Exhibit 99.2

CAPITAL EXPENDITURES AND INVESTMENTS MillionsofDollars

2018 2017 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD

Capital Expenditures and Investments

Expansion 57 169 173 311 710 42 65 87 106 300

Maintenance 12 10 24 20 66 11 10 10 21 52

Total Partnership 69 179 197 331 776 53 75 97 127 352

Predecessors — — — — — 5 55 21 1 82

Total Consolidated 69 179 197 331 776 58 130 118 128 434

CASH DISTRIBUTIONS 2018 2017 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD

Cash Distribution Per Common Unit (Dollars) 0.714 0.752 0.792 0.835 3.093 0.586 0.615 0.646 0.678 2.525

Cash Distributions † ($ Millions)

Commonunits—public 38 40 44 46 168 26 28 34 36 124Commonunits—Phillips66 50 51 55 58 214 37 40 44 46 167Generalpartner—Phillips66 51 57 61 67 236 32 36 43 47 158

Total 139 148 160 171 618 95 104 121 129 449

Coverage Ratio* 1.40 1.38 1.36 1.39 1.38 1.31 1.35 1.12 1.33 1.27†Cashdistributionsdeclaredattributabletotheindicatedperiods. *Calculatedasdistributablecashflowdividedbytotalcashdistributions.UsedtoindicatethePartnership’sabilitytopaycashdistributionsfromcurrentearnings.

Page6

Exhibit 99.2

NON-GAAP FINANCIAL MEASURES RECONCILIATION CONSOLIDATED MillionsofDollars

2018 2017 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTDReconciliation to Net Income Attributable to

the Partnership

Net income attributable to the Partnership 172 186 217 221 796 97 103 99 162 461

Plus: NetincomeattributabletoPredecessors — — — — — 13 16 32 2 63

Net income 172 186 217 221 796 110 119 131 164 524

Plus: Depreciation 28 29 30 30 117 28 28 32 28 116Netinterestexpense 29 29 28 28 114 23 23 24 29 99Incometaxexpense 2 — — 2 4 — 1 1 2 4

EBITDA 231 244 275 281 1,031 161 171 188 223 743Proportionalshareofequityaffiliates’netinterest,taxesanddepreciation 15 28 30 28 101 12 12 13 29 66

ExpensesindemnifiedorprefundedbyPhillips66 — 1 — — 1 3 — 4 1 8Transactioncostsassociatedwithacquisitions 1 3 — — 4 1 — 2 1 4EBITDAattributabletoPredecessors — — — — — (14) (17) (36) — (67)

Adjusted EBITDA 247 276 305 309 1,137 163 166 171 254 754

Plus: Deferredrevenueimpacts*† 5 (5) (5) (1) (6) 4 4 1 (3) 6

Less: Equityaffiliatedistributionslessthan(morethan)proportionalEBITDA 10 18 22 14 64 8 (4) 3 22 29

Maintenancecapitalexpenditures† 10 10 23 19 62 11 10 10 19 50Netinterestexpense 29 29 28 28 114 24 24 23 29 100Preferredunitdistributions 9 10 9 9 37 — — — 9 9

Distributable cash flow 194 204 218 238 854 124 140 136 172 572

*Differencebetweencashreceiptsandrevenuerecognition.†ExcludesMereySweenycapitalreimbursementsandturnaroundimpacts.

Page7

Exhibit 99.2

NON-GAAP FINANCIAL MEASURES RECONCILIATION (continued) CONSOLIDATED MillionsofDollars

2018 2017 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTDReconciliation to Net Cash Provided by

Operating ActivitiesNet cash provided by operating activities 171 226 255 240 892 155 136 195 238 724

Plus: Netinterestexpense 29 29 28 28 114 23 23 24 29 99Incometaxexpense 2 — — 2 4 — 1 1 2 4Changesinworkingcapital (17) (10) (7) 14 (20) (19) 8 (19) — (30)Undistributedequityearnings 8 (1) (2) — 5 4 5 (9) 1 1Deferredrevenuesandotherliabilities 38 5 1 (2) 42 — — 2 (45) (43)

Other — (5) — (1) (6) (2) (2) (6) (2) (12)EBITDA 231 244 275 281 1,031 161 171 188 223 743Proportionalshareofequityaffiliates’netinterest,taxesanddepreciation 15 28 30 28 101 12 12 13 29 66

ExpensesindemnifiedorprefundedbyPhillips66 — 1 — — 1 3 — 4 1 8

Transactioncostsassociatedwithacquisitions 1 3 — — 4 1 — 2 1 4EBITDAattributabletoPredecessors — — — — — (14) (17) (36) — (67)Adjusted EBITDA 247 276 305 309 1,137 163 166 171 254 754

Plus: Deferredrevenueimpacts*† 5 (5) (5) (1) (6) 4 4 1 (3) 6

Less: Equityaffiliatedistributionslessthan(morethan)proportionalEBITDA 10 18 22 14 64 8 (4) 3 22 29

Maintenancecapitalexpenditures† 10 10 23 19 62 11 10 10 19 50

Netinterestexpense 29 29 28 28 114 24 24 23 29 100Preferredunitdistributions 9 10 9 9 37 — — — 9 9

Distributable cash flow 194 204 218 238 854 124 140 136 172 572

*Differencebetweencashreceiptsandrevenuerecognition. †ExcludesMereySweenycapitalreimbursementsandturnaroundimpacts.

Page8

signaturesd18rn0p25nwr6d.cloudfront.net/cik-0001572910/5a51...third quarter of 2019. in connection...

Documents