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Phillips 66 Reports Third-Quarter Earnings Of $1.6 Billion (Adjusted Earnings Of $1.6 Billion)

The following excerpt is from the company's SEC filing.

Exhibit 99.1

Phillips 66 Reports Third-Quarter Earnings of

Billion

Per Share

Adjusted earnings of

$1.6 billion

per share

Highlights

Refining generated more than $1 billion of earnings; 96 percent utilization

Delivered strong Marketing and Specialties earnings

Agreed to recapitalize DCP Midstream

Approved 2016 capital budgets of $3.9 billion, including Phillips 66 Partners

Increased share repurchase program by $2 billion

HOUSTON,

— Phillips 66 (NYSE: PSX), an energy manufacturing and logis tics company, announces

-quarter earnings of

$1,578 million

, compared with earnings of

$1,012 million

in the

second

quarter of

. Adjusted earnings were

$1,647 million

increase

$645 million

from the last quarter.

“Our best quarterly earnings this year were driven by stronger results from Refining and Marketing. Higher refining capacity utilization and product margins increased financial results for these businesses,” said Greg Garland, Chairman and CEO. “In addition, we announced our 2016 capital budget and a $2 billion increase to the company’s share repurchase program, which reflects our commitment to disciplined capital allocation.”

Page 1

Phillips 66 Reports Third-Quarter Earnings of $1.6 Billion (Adjusted Earnings of $1.6 Billion)

Millions of Dollars

Transportation

Phillips 66's Midstream

-quarter adjusted earnings were

$91 million

, an increase of $43 million from the

Phillips 66’s Transportation business generated earnings of

$77 million

during the

quarter, an increase of $12 million from the

quarter. Improved earnings were due to lower operating costs and increased equity earnings primarily driven by higher volumes.

Adjusted earnings from the NGL business were

$32 million

for the

quarter. The $24 million increase from the prior quarter was largely related to higher realized margins, as well as inventory gains.

Phillips 66 Partners (PSXP) contributed $31 million to the Midstream segment's

-quarter earnings. Distributions per limited partner unit increased by 7 percent from the second quarter to $0.428 per unit. Distributions to Phillips 66 from PSXP were up 13 percent in the third quarter, compared with the prior quarter, reflecting the impact of incentive distribution rights.

For the

quarter of 2015, the company’s equity investment in DCP Midstream, LLC (DCP Midstream) had an adjusted loss of

$18 million

, compared with a

$25 million

adjusted loss in the prior quarter. DCP Midstream's improved results were primarily due to higher natural gas and natural gas liquids marketing margins, as well as the second-quarter loss on the sale of its interest in the Benedum gas processing plant, partially offset by lower commodity prices.

Chemicals

Olefins and Polyolefins (O&P)

Specialties, Aromatics and Styrenics (SA&S)

The Chemicals segment reflects Phillips 66's equity investment in Chevron Phillips Chemical Company LLC (CPChem).

-quarter Chemicals adjusted earnings were

$272 million

$295 million

Page 2

During the

quarter, CPChem's Olefins and Polyolefins business contributed

$261 million

to Phillips 66's Chemicals earnings. This was a decrease of $6 million compared with the prior quarter, as higher sales volumes and lower operating costs primarily due to lower turnaround activity were more than offset by insurance recoveries recognized in the prior quarter and lower ethylene margins. Global utilization for O&P was

94 percent

, up from

91 percent

CPChem's Specialties, Aromatics and Styrenics business contributed

$17 million

of adjusted earnings in the

quarter, a decrease of $21 million from the prior quarter. The decrease was primarily due to lower earnings at CPChem's SA&S equity affiliates, as well as lower volumes.

Refining adjusted earnings were

$1,052 million

$604 million

The increase in earnings was largely driven by improved realized gasoline and secondary product margins, as well as higher volumes. Global realized margins improved $2.26 per barrel, while market capture increased to 72 percent, compared with 62 percent in the prior quarter.

Phillips 66’s worldwide refining crude utilization increased to

, compared to 90 percent in the second quarter. The improvement was primarily due to the completion of a major turnaround at the Humber Refinery in the U.K. early in the third quarter, as well as higher utilization in the Gulf Coast. Turnaround costs for the third quarter were $69 million. Phillips 66's worldwide clean product yield was 84 percent in the third quarter.

Marketing and Other

Marketing and Specialties (M&S)

$344 million

$182 million

Adjusted earnings for Marketing and Other were

$291 million

, an increase of $157 million from the prior quarter. The increase in earnings was...


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