Cover and table of contents

2024

			UNITED STATES
			SECURITIES AND EXCHANGE COMMISSION
			Washington, D.C. 20549

FORM 10-K

(Mark One)
☒			ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended			December 31, 2024
			OR
☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from						to

Commission file number: 001-35349

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

			Delaware						45-3779385
			(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

2331 CityWest Blvd., Houston, Texas 77042

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: 832-765-3010

			Securities registered pursuant to Section 12(b) of the Act:
			Title of each class						Trading Symbol(s)						Name of each exchange on which registered
			Common Stock, $0.01 Par Value						PSX						New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.																								☒			Yes			☐			No
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.																								☐			Yes			☒			No
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.																								☒			Yes			☐			No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).																								☒			Yes			☐			No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer			☒			Accelerated filer			☐			Non-accelerated filer			☐			Smaller reporting company			☐
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 or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.																								☐
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.																								☒
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements.																								☐
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b).																								☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).																								☐			Yes			☒			No

The aggregate market value of common stock held by non-affiliates of the registrant on June 28, 2024, the last business day of the registrant’s most recently completed second fiscal quarter, based on the closing price on that date of $141.17, was $59 billion. The registrant, solely for the purpose of this required presentation, had deemed its Board of Directors and executive officers to be affiliates, and deducted their stockholdings in determining the aggregate market value.

The registrant had 407,698,347 shares of common stock outstanding at January 31, 2025.

Documents incorporated by reference:

Portions of the Proxy Statement for the Registrant’s 2025 Annual Meeting of Shareholders.

TABLE OF CONTENTS

Item			Page
PART I
1 and 2. Business and Properties			1
Corporate Structure			1
Segment and Geographic Information			3
Midstream			3
Chemicals			12
Refining			14
Marketing and Specialties			18
Renewable Fuels			20
Energy Research & Innovation			20
Human Capital			20
Competition			22
General			23
1A. Risk Factors			24
1B. Unresolved Staff Comments			42
1C. Cybersecurity			42
3. Legal Proceedings			43
4. Mine Safety Disclosures			44
Information About Our Executive Officers			45
PART II
5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities			46
6. [Reserved]			47
7. Management's Discussion and Analysis of Financial Condition and Results of Operations			48
7A. Quantitative and Qualitative Disclosures About Market Risk			91
Cautionary Statement for the Purposes of the “Safe Harbor” Provisions of the Private Securities Litigation Reform Act of 1995			93
8. Financial Statements and Supplementary Data			95
9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure			176
9A. Controls and Procedures			176
9B. Other Information			176
9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections			176
PART III
10. Directors, Executive Officers and Corporate Governance			177
11. Executive Compensation			177
12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters			177
13. Certain Relationships and Related Transactions, and Director Independence			177
14. Principal Accountant Fees and Services			177
PART IV
15. Exhibit and Financial Statement Schedules			178
16. Form 10-K Summary			178
Signatures			186

Unless otherwise indicated, the “company,” “we,” “our,” “us” and “Phillips 66” are used in this report to refer to the businesses of Phillips 66 and its consolidated subsidiaries.

This Annual Report on Form 10-K (the Annual Report) contains forward-looking statements including, without limitation, statements relating to the company’s plans, strategies, objectives, expectations and intentions that are made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The words “anticipate,” “estimate,” “believe,” “budget,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict,” “seek,” “should,” “will,” “would,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target,” “priorities” and similar expressions often identify forward-looking statements, but the absence of these words does not mean a statement is not forward-looking. The company does not undertake to update, revise or correct any of the forward-looking information unless required to do so pursuant to applicable law. Readers are cautioned that such forward-looking statements should be read in conjunction with the company’s disclosures under the headings “Risk Factors” and “CAUTIONARY STATEMENT FOR THE PURPOSES OF THE ‘SAFE HARBOR’ PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995.”

PART I

Items 1 and 2. BUSINESS AND PROPERTIES

CORPORATE STRUCTURE

Phillips 66, headquartered in Houston, Texas, was incorporated in Delaware in 2011 in connection with, and in anticipation of, a restructuring of ConocoPhillips that separated its downstream businesses into an independent, publicly traded company named Phillips 66. The two companies were separated by ConocoPhillips distributing to its shareholders all the shares of common stock of Phillips 66 after the market closed on April 30, 2012 (the separation). Phillips 66 stock trades on the New York Stock Exchange under the “PSX” stock symbol.

Operating Segments

Basis of Presentation

Effective April 1, 2024, we changed the internal financial information reviewed by our chief executive officer to evaluate performance and allocate resources to our operating segments. This resulted in changes to the composition of our operating segments, as well as measurement changes for certain activities between our operating segments. The primary effects are summarized below. Prior period information has been recast for comparability.

• Establishment of a Renewable Fuels operating segment, which includes renewable fuels activities and assets historically reported in our Refining, Marketing and Specialties (M&S) and Midstream operating segments.

• Change in method of allocating results for certain Gulf Coast distillate export activities from our M&S operating segment to our Refining operating segment.

• Reclassification of certain crude oil and international clean products trading activities between our M&S operating segment and our Refining operating segment.

• Change in reporting of our investment in NOVONIX Limited (NOVONIX) from our Midstream operating segment to Corporate and Other.

Our businesses are now organized into five operating segments:

1)**Midstream—**Provides crude oil and refined petroleum product transportation, terminaling and processing services, as well as natural gas and natural gas liquids (NGL) transportation, storage, fractionation, gathering, processing and marketing services in the United States. In addition, this segment exports liquefied petroleum gas (LPG) to global markets.

2)**Chemicals—**Consists of our 50% equity investment in Chevron Phillips Chemical Company LLC (CPChem), which manufactures and markets petrochemicals and plastics on a worldwide basis.

3)**Refining—**Refines crude oil and other feedstocks into petroleum products, such as gasoline and distillates, including aviation fuels. This segment includes 11 refineries in the United States and Europe.

4)**Marketing and Specialties—**Purchases for resale and markets refined products, mainly in the United States and Europe. In addition, this segment includes the manufacturing and marketing of base oils and lubricants.

5)**Renewable Fuels—**Processes renewable feedstocks into renewable products at the Rodeo Renewable Energy Complex (Rodeo Complex) and at our Humber Refinery. In addition, this segment includes the global activities to procure renewable feedstocks, manage certain regulatory credits, and market renewable fuels.

Corporate and Other includes general corporate overhead, interest income, interest expense, our investment in research of new technologies, business transformation restructuring costs, our investment in NOVONIX, and various other corporate activities. Corporate assets include all cash, cash equivalents, income tax-related assets and enterprise information technology assets. See Note 4—Restructuring, in the Notes to Consolidated Financial Statements for additional information regarding restructuring costs.

SEGMENT AND GEOGRAPHIC INFORMATION

MIDSTREAM

The Midstream segment consists of two businesses:

• Transportation—Transports crude oil and other feedstocks to our refineries and other locations, delivers refined petroleum products to market, and provides terminaling and storage services for crude oil and refined petroleum products.

• NGL—Gathers, processes, transports and markets natural gas; transports, fractionates, markets and exports NGL.

At December 31, 2024, our Midstream segment owned or held partial interests in approximately 70,000 miles of crude oil, refined petroleum product, NGL and natural gas pipeline systems; 39 refined petroleum product terminals; 34 gathering and processing plants; 15 crude oil terminals; eight fractionation facilities; six NGL terminals; a petroleum coke exporting facility; and various other storage and loading facilities that are located in the United States.

Acquisition

On July 1, 2024, we acquired Pinnacle Midland Parent LLC (Pinnacle Midstream) to expand our natural gas gathering and processing operations in the Permian Basin for cash consideration of $565 million.

Pending Acquisition

On January 6, 2025, we entered into a definitive agreement to acquire all issued and outstanding equity interests in each of EPIC Y-Grade GP, LLC (Y-Grade GP) and EPIC Y-Grade, LP (Y-Grade LP, and, together with Y-Grade GP and their respective subsidiaries, EPIC Y-Grade), which own various long haul natural gas liquids pipelines, fractionation facilities and distribution systems, for cash consideration of $2.2 billion, subject to certain closing adjustments. The closing date of this transaction is dependent on regulatory approval and completion of other customary closing conditions.

See Note 5—Business Combinations, in the Notes to Consolidated Financial Statements for additional information regarding the acquisition of Pinnacle Midstream and the pending EPIC Y-Grade acquisition.

Investment and Asset Dispositions

During the year ended December 31, 2024, we sold the following assets:

• Our equity interests in certain pipeline and terminaling assets in North Dakota.

• Certain gathering and processing assets in Texas.

• Our ownership interests in certain gathering and processing assets in Louisiana and Alabama.

• Our 25% ownership interest in Rockies Express Pipeline LLC.

Subsequent Investment Disposition

On January 30, 2025, we sold our 25% ownership interest in Gulf Coast Express Pipeline LLC.

See Note 9—Investments, Loans and Long-Term Receivables and Note 10—Properties, Plants and Equipment, in the Notes to Consolidated Financial Statements for additional information regarding the above dispositions.

Transportation

We own, hold partial interests in, or lease various assets to provide transportation, terminaling and storage services. These assets include crude oil, refined petroleum product, NGL, and natural gas pipeline systems; crude oil, refined petroleum product and NGL terminals; a petroleum coke handling facility; marine vessels; railcars and trucks.

Pipelines and Terminals

The following table depicts our ownership interest in major pipeline systems included in our Transportation business at December 31, 2024:

Name						State of Origination/Terminus						Interest						Length (Miles)						Gross Capacity (MB/D)
Crude Oil
Bakken Pipeline						North Dakota/Texas						25		%				1,918						750
Bayou Bridge						Texas/Louisiana						40						213						480
Clifton Ridge						Louisiana						100						10						260
CushPo						Oklahoma						100						62						130
Eagle Ford Gathering						Texas						100						28						58
Glacier						Montana						79						800						124
Gray Oak Pipeline						Texas						7						862						900
Line 100						California						100						79						61
Line 200						California						100						228						100
Line 300						California						100						61						34
Line 400						California						100						153						46
Line O						Oklahoma/Texas						100						276						38
New Mexico Crude						New Mexico/Texas						100						227						106
Oklahoma Crude						Texas/Oklahoma						100						217						100
STACK PL						Oklahoma						50						149						250
Sweeny Crude						Texas						100						56						617
West Texas Crude						Texas						100						1,079						140

Name						State of Origination/Terminus						Interest						Length (Miles)						Gross Capacity (MB/D)
Refined Petroleum Products
ATA Line						Texas/New Mexico						50		%				293						34
Borger to Amarillo						Texas						100						93						74
Borger-Denver						Texas						100						38						39
Borger-Denver						Texas/Colorado						65						207						39
Borger-Denver						Colorado						70						152						39
Cherokee East						Oklahoma/Missouri						100						320						59
Cherokee North						Oklahoma/Kansas						100						29						55
Cherokee South						Oklahoma						100						98						47
Cross Channel Connector						Texas						100						5						197
Explorer						Texas/Indiana						22						1,830						660
Gold Line						Texas/Illinois						100						686						120
Heartland*						Kansas/Iowa						50						49						30
LAX Jet Line						California						50						19						25
Los Angeles Products						California						100						22						132
Paola Products						Kansas						100						106						120
Pioneer						Wyoming/Utah						50						562						63
Powder River						Colorado/Texas						100						350						13
Richmond						California						100						14						31
SAAL						Texas						33						102						32
SAAL						Texas						54						19						30
Seminoe						Montana/Wyoming						100						342						50
Standish						Oklahoma/Kansas						100						92						77
Sweeny to Pasadena						Texas						100						120						335
Torrance Products						California						100						8						279
Watson Products						California						100						9						238
Yellowstone						Montana/Washington						46						710						68
NGL
Blue Line						Texas/Illinois						100						688						26
Brown Line						Oklahoma/Kansas						100						76						26
Conway to Wichita						Kansas						100						55						26
Medford						Oklahoma						100						42						25
Skelly-Belvieu						Texas						50						571						45
TX Panhandle Y1/Y2						Texas						100						249						78

** Total pipeline system is 419 miles. Phillips 66 has an ownership interest in multiple segments totaling 49 miles.*

The following table depicts our ownership interest in terminal and storage facilities included in our Transportation business at December 31, 2024:

Facility Name						Location						Commodity Handled						Interest						Gross Storage Capacity (MBbl)						Gross Rack Capacity (MB/D)
Albuquerque						New Mexico						Refined Petroleum Products						100		%				274						20
Amarillo						Texas						Refined Petroleum Products						100						296						23
Beaumont						Texas						Crude Oil, Refined Petroleum Products						100						16,800						8
Billings						Montana						Refined Petroleum Products						100						81						12
Billings Crude						Montana						Crude Oil						100						236						N/A
Borger						Texas						Crude Oil						50						1,068						N/A
Bozeman						Montana						Refined Petroleum Products						100						134						5
Buffalo Crude						Montana						Crude Oil						100						303						N/A
Casper						Wyoming						Refined Petroleum Products						100						365						7
Clifton Ridge						Louisiana						Crude Oil						100						3,800						N/A
Coalinga						California						Crude Oil						100						817						N/A
Colton						California						Refined Petroleum Products						100						207						20
Cushing						Oklahoma						Crude Oil						100						675						N/A
Cut Bank						Montana						Crude Oil						100						315						N/A
Denver						Colorado						Refined Petroleum Products						100						441						43
Des Moines						Iowa						Refined Petroleum Products						50						217						12
East St. Louis						Illinois						Refined Petroleum Products						100						1,529						55
Glenpool						Oklahoma						Refined Petroleum Products						100						571						18
Great Falls						Montana						Refined Petroleum Products						100						198						6
Hartford						Illinois						Refined Petroleum Products						100						1,468						21
Helena						Montana						Refined Petroleum Products						100						195						5
Jefferson City						Missouri						Refined Petroleum Products						100						103						15
Junction						California						Crude Oil, Refined Petroleum Products						100						524						N/A
Kansas City						Kansas						Refined Petroleum Products						100						1,410						50
La Junta						Colorado						Refined Petroleum Products						100						99						5
Lake Charles Pipeline Storage						Louisiana						Refined Petroleum Products						50						3,143						N/A
Lincoln						Nebraska						Refined Petroleum Products						100						217						12
Linden						New Jersey						Refined Petroleum Products						100						360						95
Los Angeles						California						Refined Petroleum Products						100						156						80
Lubbock						Texas						Refined Petroleum Products						100						182						18
Medford Spheres						Oklahoma						NGL						100						70						N/A
Missoula						Montana						Refined Petroleum Products						50						365						14
Moses Lake						Washington						Refined Petroleum Products						50						216						10
Mount Vernon						Missouri						Refined Petroleum Products						100						365						40
North Salt Lake						Utah						Refined Petroleum Products						50						755						60
North Spokane						Washington						Refined Petroleum Products						100						492						N/A
Odessa						Texas						Crude Oil						100						521						N/A
Oklahoma City						Oklahoma						Crude Oil, Refined Petroleum Products						100						355						42

Facility Name						Location						Commodity Handled						Interest						Gross Storage Capacity (MBbl)						Gross Rack Capacity (MB/D)
Paola						Kansas						Refined Petroleum Products						100		%				978						N/A
Pasadena						Texas						Refined Petroleum Products, NGL						100						3,558						65
Pecan Grove						Louisiana						Lubricant Base Stocks, Refined Petroleum Products						100						177						N/A
Ponca City						Oklahoma						Refined Petroleum Products						100						63						22
Ponca City Crude						Oklahoma						Crude Oil						100						1,229						N/A
Portland						Oregon						Refined Petroleum Products						100						650						38
Renton						Washington						Refined Petroleum Products						100						243						19
Richmond						California						Refined Petroleum Products						100						343						28
Rock Springs						Wyoming						Refined Petroleum Products						100						132						8
Sacramento						California						Refined Petroleum Products						100						146						12
Santa Margarita						California						Crude Oil						100						398						N/A
Sheridan						Wyoming						Refined Petroleum Products						100						94						6
Spokane						Washington						Refined Petroleum Products						100						351						20
Tacoma						Washington						Refined Petroleum Products						100						316						19
Torrance						California						Crude Oil, Refined Petroleum Products						100						2,128						N/A
Tremley Point						New Jersey						Refined Petroleum Products						100						1,701						25
Westlake						Louisiana						Refined Petroleum Products						100						128						10
Wichita Falls						Texas						Crude Oil						100						225						N/A
Wichita North						Kansas						Refined Petroleum Products						100						769						20
Wichita South						Kansas						Refined Petroleum Products						100						272						N/A

The following table depicts our ownership interest in marine, rail and petroleum coke loading and offloading facilities included in our Transportation business at December 31, 2024:

Facility Name						Location						Commodity Handled						Interest						Gross Loading Capacity*
Marine
Beaumont						Texas						Crude Oil, Refined Petroleum Products						100		%				75
Clifton Ridge						Louisiana						Crude Oil, Refined Petroleum Products						100						50
Hartford						Illinois						Refined Petroleum Products						100						3
Pecan Grove						Louisiana						Lubricant Base Stocks, Refined Petroleum Products						100						6
Portland						Oregon						Refined Petroleum Products						100						10
Richmond						California						Refined Petroleum Products						100						3
Tacoma						Washington						Crude Oil						100						12
Tremley Point						New Jersey						Refined Petroleum Products						100						7
Rail
Bayway						New Jersey						Crude Oil						100						75
Beaumont						Texas						Crude Oil						100						20
Ferndale						Washington						Crude Oil						100						35
Missoula						Montana						Refined Petroleum Products						50						41
Thompson Falls						Montana						Refined Petroleum Products						50						41
Petroleum Coke
Lake Charles						Louisiana						Petroleum Coke						50						N/A

** Marine facilities in thousands of barrels per hour (MB/h); Rail in thousands of barrels daily (MB/D).*

Marine Vessels

At December 31, 2024, we had 13 international-flagged crude oil, refined product and NGL tankers and one Jones Act-compliant tanker under time charter contracts, with capacities ranging in size from 300,000 to 800,000 barrels. We also had a variety of inland and offshore tug/barge units. These vessels are used primarily to transport crude oil and other feedstocks, as well as refined products for our facilities. In addition, the NGL tankers are used to export propane and butane from our infrastructure.

Truck and Rail

Our truck and rail fleets support our feedstock and distribution operations. Truck movements are provided through our wholly owned subsidiary, Sentinel Transportation LLC, and through numerous third-party trucking companies. Rail movements are provided via a fleet of approximately 8,900 owned or leased railcars.

NGL

At December 31, 2024, our NGL business owned or held partial interests in a diversified and integrated portfolio of assets across the wellhead-to-market value chain. Our portfolio includes natural gas processing plants, NGL and natural gas pipeline systems, and fractionators located in the United States. A significant portion of our NGL business is conducted through DCP Midstream, LP (DCP LP), a consolidated subsidiary in which we hold an aggregate direct and indirect economic interest of 86.8%. DCP LP is one of the largest processors of natural gas and one of the largest producers of NGLs in the United States. DCP LP’s gathering and processing assets are strategically located in some of the major producing regions in the United States, including the Permian Basin, the Denver-Julesburg Basin, the Midcontinent and Eagle Ford.

Pipeline Systems

Pipeline systems owned by DCP Sand Hills Pipeline, LLC (DCP Sand Hills) and DCP Southern Hills Pipeline, LLC (DCP Southern Hills), consolidated subsidiaries in which we hold aggregate direct and indirect economic interests of 91.2%, provide takeaway capabilities for DCP LP’s gathering and processing operations in the Permian Basin, Midcontinent and Eagle Ford, and provide access to customers and market outlets on the U.S. Gulf Coast, including the Mont Belvieu, Texas, market hub and our Sweeny fractionation and export facilities (the Sweeny Hub).

Natural Gas Processing

At some of our facilities, we fractionate NGL into individual components (ethane, propane, butane and natural gasoline). We own or hold partial interests in 34 active natural gas processing facilities that have a net processing capacity of 4.8 billion cubic feet per day (Bcf/d).

Sweeny Hub Assets

The Sweeny Hub is a U.S. Gulf Coast NGL market hub, consisting of four fractionators with a total fractionation nameplate capacity of 550,000 barrels per day (B/D), an LPG export terminal, and NGL storage caverns. The fractionators are located adjacent to our Sweeny Refinery in Old Ocean, Texas, and supply purity ethane to the petrochemical industry and purity NGL to domestic and global markets. Raw NGL supply is delivered to the fractionators from nearby major pipelines, including the DCP Sand Hills pipeline system. The fractionators are supported by significant infrastructure including connectivity to two NGL supply pipelines, a pipeline connecting to the Mont Belvieu market hub and our Clemens Caverns storage facility with access to our LPG export terminal in Freeport, Texas. It also includes our C2G Pipeline, which is a 16-inch ethane pipeline that connects our Clemens Caverns storage facility to petrochemical facilities in Gregory, Texas, near Corpus Christi.

The Freeport LPG Export Terminal leverages our fractionation, transportation and storage infrastructure to supply petrochemical, heating and transportation markets globally. The terminal can simultaneously load a propane vessel and a butane vessel, and has a combined LPG export capacity of 260,000 B/D. In addition, the terminal has the capability to export natural gasoline (C5+) produced by the Sweeny Hub fractionators.

The following table depicts our ownership interest in major pipeline systems included in our NGL business at December 31, 2024:

Name						State of Origination/Terminus						Interest						Length (Miles)						Gross Capacity (MB/D)
NGL
Black Lake †						Louisiana/Texas						100		%				314						80
C2G						Texas						100						155						185
Chisholm						Oklahoma/Kansas						50						202						42
Front Range †						Colorado/Texas						33						450						260
Panola †						Texas						15						250						100
Powder River						Wyoming/Colorado						100						366						16
River Parish NGL						Louisiana						100						499						104
Sand Hills †*						New Mexico/Texas						100						1,400						500
Southern Hills †*						Kansas/Texas						100						940						192
Seabreeze/Wilbreeze †						Texas						100						80						52
Sweeny LPG						Texas						100						260						942
Sweeny NGL						Texas						100						18						204
Texas Express †						Texas						10						600						370
Wattenberg †						Colorado/Kansas						100						450						112
Natural Gas
Cheyenne Connector †						Colorado						50						70						0.6 Bcf/d
Guadalupe †						Texas						Various						600						0.2 Bcf/d
Gulf Coast Express †****						Texas						25						530						2.0 Bcf/d

† Owned by DCP LP. At December 31, 2024, Phillips 66 held an aggregate 86.8% direct and indirect economic interest in DCP LP.

** Interest reflects Phillips 66’s 33.33% direct ownership interest and DCP LP’s 66.67% direct ownership interest in DCP Sand Hills and DCP Southern Hills. At December 31, 2024, Phillips 66 held an aggregate 91.2% direct and indirect economic interest in DCP Sand Hills and DCP Southern Hills.*

*** On January 30, 2025, we sold our 25% ownership interest in Gulf Coast Express Pipeline LLC.*

The following table depicts our ownership interest in terminal and storage facilities included in our NGL business at December 31, 2024:

Facility Name						Location						Commodity Handled						Interest						Gross Storage Capacity (MBbl)						Gross Rack Capacity (MB/D)
Clemens						Texas						NGL						100		%				16,500						N/A
Freeport						Texas						Refined Petroleum Products, NGL						100						3,485						N/A
Marysville †						Michigan						NGL						100						8,000						N/A
River Parish						Louisiana						NGL						100						438						N/A
Spindletop †						Texas						Natural Gas						100						12 Bcf						N/A

† Owned by DCP LP. At December 31, 2024, Phillips 66 held an aggregate 86.8% direct and indirect economic interest in DCP LP.

The following table depicts our ownership interest in a marine facility included in our NGL business at December 31, 2024:

Facility Name						Location						Commodity Handled						Interest						Gross Loading Capacity (MB/h)
Marine
Freeport						Texas						Refined Petroleum Products, NGL						100		%				46

The following table depicts our ownership interest in NGL fractionators included in our NGL business at December 31, 2024:

Facility Name						Location						Interest						Capacity (MB/D)
Conway						Kansas						40		%				43
Enterprise †*						Texas						25						61
Gulf Coast Fractionators**						Texas						23						33
Mont Belvieu 1 †						Texas						20						32
Sweeny Fractionators						Texas						100						550

† Owned by DCP LP. At December 31, 2024, Phillips 66 held an aggregate 86.8% direct and indirect economic interest in DCP LP.

** Interest reflects Phillips 66’s 12.5% direct interest and DCP LP’s direct interest of 12.5%.*

*** This facility has been idled since December 2020, with plans to restart in the first quarter of 2025.*

The following table depicts our operating data in gathering and processing assets included in our NGL business at December 31, 2024:

Regions						Plants						Approximate Gathering and Transmission Systems (Miles)						Approximate Net Nameplate Plant Capacity (MMcf/d) †
North						13						3,400						1,580
Midcontinent						6						22,700						1,110
Permian						11						15,700						1,430
South						4						4,600						690

† Includes DCP LP’s proportional ownership. At December 31, 2024, Phillips 66 held an aggregate 86.8% direct and indirect economic interest in DCP LP.

CHEMICALS

The Chemicals segment consists of our 50% equity investment in CPChem, which is headquartered in The Woodlands, Texas. At December 31, 2024, CPChem owned or had joint venture interests in 30 manufacturing facilities located in Belgium, Colombia, Qatar, Saudi Arabia, Singapore and the United States. Additionally, CPChem has two research and development centers in the United States.

CPChem produces and markets ethylene and other olefin products. The ethylene produced is primarily used by CPChem to produce polyethylene, normal alpha olefins (NAO) and polyethylene pipe. CPChem manufactures and markets aromatics and styrenics products, such as benzene, cyclohexane, styrene and polystyrene, as well as a variety of specialty chemical products including organosulfur chemicals, solvents, catalysts, and chemicals used in drilling and mining.

The manufacturing of petrochemicals and plastics involves the conversion of hydrocarbon-based raw material feedstocks into higher-value products, often through a thermal process referred to in the industry as “cracking.” For example, ethylene can be produced by cracking ethane, propane, butane, natural gasoline or certain refinery liquids, such as naphtha and gas oil. Ethylene primarily is used as a raw material in the production of plastics, such as polyethylene. Plastic resins, such as polyethylene, are manufactured in a thermal/catalyst process, and the produced output is used as a further raw material for various applications, such as packaging and plastic pipe.

The following table reflects CPChem’s petrochemicals and plastics product capacities at December 31, 2024:

			Millions of Pounds per Year*
			U.S.						Worldwide
Ethylene			11,910						14,430
Propylene			3,675						4,180
High-density polyethylene			5,305						7,470
Low-density polyethylene			620						620
Linear low-density polyethylene			1,815						1,815
Polypropylene			—						310
Normal alpha olefins			2,920						3,435
Polyalphaolefins			125						255
Polyethylene pipe			500						500
Benzene			1,600						2,530
Cyclohexane			1,060						1,455
Styrene			1,050						1,875
Polystyrene			835						915
Specialty chemicals			440						575
Total			31,855						40,365

** Capacities include CPChem’s share in equity affiliates and excludes CPChem’s NGL fractionation capacity.*

CPChem and a co-venturer are building world-scale petrochemical facilities on the U.S. Gulf Coast and in Ras Laffan, Qatar. On the U.S. Gulf Coast, the Golden Triangle Polymers (GTP) facility will include a 4.6 billion pounds per year ethane cracker and two high-density polyethylene units with a combined capacity of 4.4 billion pounds per year. CPChem owns a 51% equity share in the joint venture. The Ras Laffan Petrochemical (RLP) facility will include a 4.6 billion pounds per year ethane cracker and two high-density polyethylene units with a total capacity of 3.7 billion pounds per year. CPChem owns a 30% equity share in the joint venture. Both facilities are expected to start up in 2026.

REFINING

The Refining segment refines crude oil and other feedstocks into petroleum products, such as gasoline and distillates, including aviation fuels, at 11 refineries in the United States and Europe.

In early 2024, we ceased crude operations at the San Francisco Refinery as part of the conversion of the refinery into the Rodeo Complex.

The table below depicts information for each of our owned and joint venture refineries at December 31, 2024:

																		Thousands of Barrels Daily
Region/Refinery						Location						Interest						Net Crude Throughput Capacity									Net Clean Product Capacity**												Clean Product Yield Capability
At December 31 2024			Effective January 1 2025						Gasolines						Distillates
Atlantic Basin/Europe
Bayway						Linden, NJ						100		%				258			258						157						130						93		%
Humber						N. Lincolnshire, United Kingdom						100						221			221						95						115						81
MiRO*						Karlsruhe, Germany						19						58			58						25						27						87
																		537			537
Gulf Coast
Lake Charles						Westlake, LA						100						264			264						105						122						72
Sweeny						Old Ocean, TX						100						265			265						158						125						86
																		529			529
Central Corridor
Ponca City						Ponca City, OK						100						217			217						120						100						93
Billings						Billings, MT						100						66			66						37						30						90
Wood River						Roxana, IL						50						173			173						88						70						81
Borger						Borger, TX						50						75			75						50						35						91
																		531			531
West Coast
Ferndale						Ferndale, WA						100						105			105						65						39						90
Los Angeles***						Carson/Wilmington, CA						100						139			139						85						65						90
																		244			244
																		1,841			1,841

** Mineraloelraffinerie Oberrhein GmbH.*

** Clean product capacities are maximum rates for each clean product category, independent of each other. They are not additive when calculating the clean product yield capability for each refinery.

**** In October 2024, we announced our intention to cease operations at our Los Angeles Refinery in the fourth quarter of 2025.*

Primary crude oil characteristics and sources of crude oil for our wholly owned and joint venture refineries are as follows:

			Characteristics															Sources
			Sweet			Medium Sour			Heavy Sour			High TAN*						United States			Canada			South and Central America			Europe			Middle East & Africa
Bayway			l			l															l						l			l
Humber			l						l			l						l									l			l
MiRO			l			l			l									l									l			l
Lake Charles			l			l			l			l						l			l			l			l			l
Sweeny			l			l			l			l						l			l			l						l
Ponca City			l			l			l									l			l
Billings						l			l			l						l			l
Wood River			l			l			l			l						l			l
Borger			l			l			l			l						l			l
Ferndale			l			l												l			l			l						l
Los Angeles			l			l			l			l						l			l			l						l

** High TAN (Total Acid Number): acid content greater than or equal to 1.0 milligram of potassium hydroxide (KOH) per gram.*

Atlantic Basin/Europe Region

Bayway Refinery

The Bayway Refinery is located on the New York Harbor in Linden, New Jersey. Bayway’s facilities include crude distilling, naphtha reforming, fluid catalytic cracking, solvent deasphalting, hydrodesulfurization and alkylation units. The complex also includes a polypropylene plant with the capacity to produce up to 775 million pounds per year. The refinery produces a high percentage of transportation fuels, as well as petrochemical feedstocks, residual fuel oil and home heating oil. Refined petroleum products are distributed to East Coast customers by pipeline, barge and railcar.

Humber Refinery

The Humber Refinery is located on the east coast of England in North Lincolnshire, United Kingdom, approximately 180 miles north of London. Humber’s facilities include crude distilling, naphtha reforming, fluid catalytic cracking, hydrodesulfurization, thermal cracking and delayed coking units. The refinery has two coking units with associated calcining plants. Humber is the only coking refinery in the United Kingdom, and a producer of high-quality specialty graphite and anode-grade petroleum cokes. The refinery also produces a high percentage of transportation fuels. The majority of the light oils produced by the refinery are distributed to customers in the United Kingdom by pipeline, railcar and truck, while the other refined petroleum products are exported throughout the world.

MiRO Refinery

The MiRO Refinery is located on the Rhine River in Karlsruhe, Germany, approximately 95 miles south of Frankfurt, Germany. MiRO is the largest refinery in Germany and operates as a joint venture in which we own an 18.75% interest. Facilities include crude distilling, naphtha reforming, fluid catalytic cracking, petroleum coking and calcining, hydrodesulfurization, isomerization, ethyl tert-butyl ether and alkylation units. MiRO produces a high percentage of transportation fuels. Other products produced include petrochemical feedstocks, home heating oil, bitumen, and anode- and fuel-grade petroleum cokes. Refined petroleum products are distributed to customers in Germany, Switzerland, France, and Austria by truck, railcar and barge.

Gulf Coast Region

Lake Charles Refinery

The Lake Charles Refinery is located in Westlake, Louisiana, approximately 150 miles east of Houston, Texas. Refinery facilities include crude distilling, naphtha reforming, fluid catalytic cracking, alkylation, hydrocracking, hydrodesulfurization, isomerization and delayed coking units. Refinery facilities also include a specialty coker and calciner. The refinery produces a high percentage of transportation fuels. Other products produced include off-road diesel, home heating oil, feedstock for our Excel Paralubes LLC (Excel Paralubes) joint venture in our M&S segment, and high-quality specialty graphite and fuel-grade petroleum cokes. A majority of the refined petroleum products are distributed to customers in the southeastern and eastern United States by truck, railcar, barge or major common carrier pipelines. Additionally, refined petroleum products are exported to customers primarily in Latin America by waterborne cargo.

Sweeny Refinery

The Sweeny Refinery is located in Old Ocean, Texas, approximately 65 miles southwest of Houston, Texas. Refinery facilities include crude distilling, naphtha reforming, fluid catalytic cracking, alkylation, hydrodesulfurization, aromatics units, a vacuum distillation unit, and a delayed coking unit. The refinery produces a high percentage of transportation fuels. Other products include petrochemical feedstocks, home heating oil and fuel-grade petroleum coke. A majority of the refined petroleum products are distributed to customers throughout the Midcontinent region, southeastern and eastern United States by pipeline, barge and railcar. Additionally, refined petroleum products are exported to customers primarily in Latin America by waterborne cargo.

Central Corridor Region

Ponca City Refinery

The Ponca City Refinery is located in Ponca City, Oklahoma, approximately 95 miles northwest of Tulsa, Oklahoma. Refinery facilities include crude distilling, naphtha reforming, fluid catalytic cracking, alkylation, hydrodesulfurization, and delayed coking units. The refinery produces a high percentage of transportation fuels and anode-grade petroleum coke. Refined petroleum products are primarily distributed to customers throughout the Midcontinent region by company-owned and common carrier pipelines.

Billings Refinery

The Billings Refinery is located in Billings, Montana. Refinery facilities include crude distilling, naphtha reforming, fluid catalytic cracking, alkylation, hydrodesulfurization and delayed coking units. The refinery produces a high percentage of transportation fuels and fuel-grade petroleum coke. Refined petroleum products are distributed to customers in Montana, Wyoming, Idaho, Utah, Colorado and Washington by pipeline, railcar and truck.

WRB Refining LP (WRB)

We are the operator and managing partner of WRB, a 50 percent-owned joint venture that owns the Wood River and Borger refineries.

• Wood River Refinery

The Wood River Refinery is located in Roxana, Illinois, about 15 miles northeast of St. Louis, Missouri, at the confluence of the Mississippi and Missouri rivers. Refinery facilities include crude distilling, naphtha reforming, fluid catalytic cracking, alkylation, hydrocracking, hydrodesulfurization and delayed coking units. The refinery produces a high percentage of transportation fuels. Other products produced include petrochemical feedstocks, asphalt and fuel-grade petroleum coke. Refined petroleum products are distributed to customers throughout the Midcontinent region by pipeline, railcar, barge and truck.

• Borger Refinery

The Borger Refinery is located in Borger, Texas, in the Texas Panhandle, approximately 50 miles north of Amarillo, Texas. Refinery facilities include crude distilling, naphtha reforming, fluid catalytic cracking, alkylation, hydrodesulfurization, and delayed coking units. The refinery produces a high percentage of transportation fuels, as well as fuel-grade petroleum coke, NGL and solvents. Refined petroleum products are distributed to customers in West Texas, New Mexico, Colorado and the Midcontinent region by company-owned and common carrier pipelines.

West Coast Region

Ferndale Refinery

The Ferndale Refinery is located on Puget Sound in Ferndale, Washington, approximately 20 miles south of the U.S.-Canada border. Facilities include crude distillation, naphtha reforming, fluid catalytic cracking, alkylation and hydrodesulfurization units. The refinery produces a high percentage of transportation fuels. Other products produced include residual fuel oil, which is supplied to the northwest marine bunker fuel market. Most of the refined petroleum products are distributed to customers in the northwest United States by pipeline and barge.

Los Angeles Refinery

The Los Angeles Refinery consists of two facilities linked by pipeline located five miles apart in Carson and Wilmington, California, approximately 15 miles southeast of Los Angeles. The Carson facility serves as the front end of the refinery by processing crude oil, and the Wilmington facility serves as the back end of the refinery by upgrading the intermediate products to finished products. Refinery facilities include crude distillation, naphtha reforming, fluid catalytic cracking, alkylation, hydrocracking, and delayed coking units. The refinery produces a high percentage of transportation fuels. The refinery produces California Air Resources Board (CARB)-grade gasoline. Other products produced include fuel-grade petroleum coke. Refined petroleum products are distributed to customers in California, Nevada and Arizona by pipeline and truck.

In October 2024, we announced our intention to cease operations at our Los Angeles Refinery in the fourth quarter of 2025 and have engaged a land developer to evaluate a future redevelopment of the site. See Note 4—Restructuring, in the Notes to Consolidated Financial Statements for additional information.

MARKETING AND SPECIALTIES

The M&S segment purchases for resale and markets refined products, such as gasoline, distillates and aviation fuels, mainly in the United States and Europe. In addition, this segment includes the manufacturing and marketing of specialty products, such as base oils and lubricants.

Marketing

Marketing—United States

We market gasoline, diesel and aviation fuel through marketer and joint venture outlets that utilize our brands, including Phillips 66, Conoco and 76. At December 31, 2024, we had approximately 7,450 branded outlets in 48 states and Puerto Rico.

Our wholesale operations utilize a network of marketers operating approximately 5,220 outlets. We place a strong emphasis on the wholesale channel of trade because of its relatively lower capital requirements. In addition, we hold brand-licensing agreements covering approximately 1,450 sites. Our refined products are marketed on both a branded and unbranded basis. A high percentage of our branded marketing sales are in the Midcontinent, Rockies and West Coast regions, where our wholesale marketing network secures efficient offtake from our refineries. We also utilize consignment fuel arrangements with several marketers whereby we own the fuel inventory and pay the marketers a monthly fee.

In the Gulf Coast and East Coast regions, most sales are conducted via the unbranded channel of trade, which does not require a highly integrated marketing network to secure petroleum product placement for refinery pull through. We have export capability at our U.S. coastal refineries to meet international demand.

In addition to automotive gasoline and diesel, we produce and market aviation gasoline and jet fuel. Aviation gasoline and jet fuel are sold through dealers and independent marketers at approximately 780 Phillips 66 branded locations. Our network also includes assets for the domestic placement of renewable diesel.

We participate in joint ventures engaged in retail convenience store operations in the West Coast, as well as the Midcontinent and Rockies regions. These joint ventures enable us to secure long-term placement of our refinery production and extend participation in the retail value chain. At December 31, 2024, our retail joint ventures had approximately 790 outlets.

On October 1, 2024, we acquired a marketing business on the U.S. West Coast for total consideration of $65 million. These operations were acquired to support the placement of renewable diesel produced by the Rodeo Complex. See Note 5—Business Combinations, in the Notes to Consolidated Financial Statements for additional information regarding this acquisition.

Marketing—International

We have marketing operations in four European countries. Our European marketing strategy is to sell primarily through owned, leased or joint venture retail sites using a low-cost, high-volume approach. We use the JET brand name to market retail and wholesale products in Austria, Germany and the United Kingdom. In addition, at December 31, 2024, we had an equity interest in Coop Mineraloel AG (Coop), a joint venture that markets refined petroleum products in Switzerland.

We also market aviation fuels, LPG, heating oils, marine bunker fuels, and other secondary refined products to commercial customers and into the bulk or spot markets in the above countries.

At December 31, 2024, we had approximately 1,290 marketing outlets in Europe, of which approximately 980 were company owned and approximately 310 were dealer owned, and we held brand-licensing agreements covering approximately 70 sites in Mexico. We also had interests in 330 additional sites through our Coop joint venture operations in Switzerland.

On January 31, 2025, we sold our 49% ownership interest in Coop. See Note 9—Investments, Loans and Long-Term Receivables, in the Notes to Consolidated Financial Statements for additional information regarding the sale of Coop.

Specialties

Lubricants

We manufacture and sell automotive, commercial, industrial and specialty lubricants which are marketed worldwide under the Phillips 66, Kendall, Red Line and other private label brands.

In addition, we own a 50% interest in Excel Paralubes, an operated joint venture that owns a hydrocracked lubricant base oil manufacturing plant located adjacent to the Lake Charles Refinery. The facility has capacity to produce 22,200 B/D of high-quality Group II clear hydrocracked base oils. Excel Paralubes markets the produced base oil under the Pure Performance brand. The facility’s feedstock is sourced primarily from our Lake Charles Refinery.

RENEWABLE FUELS

The Renewable Fuels segment processes renewable feedstocks into renewable products at the Rodeo Complex and at our Humber Refinery. In addition, this segment includes the global activities to procure renewable feedstocks, manage certain regulatory credits, and market renewable diesel, renewable jet fuel and other renewable fuels.

Rodeo Complex

During 2024, we completed the conversion of our San Francisco Refinery in Rodeo, California, into the Rodeo Complex and expanded commercial scale production of renewable diesel. The Rodeo Complex can process approximately 50,000 B/D (800 million gallons per year) of renewable feedstocks, such as used cooking oil, vegetable oils and other low-carbon intensity waste oils and byproducts, into renewable fuels, including renewable diesel and renewable jet fuel. The renewable fuel production primarily will be distributed to customers in California, Oregon and Washington.

During 2024, we announced we are collaborating with an energy service provider to power the Rodeo Complex with a 30.2 megawatt solar facility. The solar facility will reduce the Rodeo Complex’s grid power demand by 50% and is expected to avoid approximately 33,000 metric tons a year of carbon dioxide emissions beginning in the first quarter of 2025, based on the U.S. Environmental Protection Agency’s (EPA’s) AVoided Emissions and geneRation Tool. During 2024, we delivered an initial 600,000 gallons of sustainable aviation fuel (SAF) to an airline at an international airport in the United States. Also during 2024, we entered into an agreement to supply 3 million gallons through the first half of 2025 of SAF to an airline at another large international airport in the United States.

European Renewables

Our renewables value chain in the United Kingdom (European renewables) globally sources a wide range of renewable feedstocks, including used cooking oil, for co-processing at the Humber Refinery, as well as for supplying products to the market, such as sustainable aviation fuel. In addition, European renewables supplies renewable feedstock, including tallow, into the Rodeo Complex.

ENERGY RESEARCH & INNOVATION

Our Energy Research & Innovation organization, located in Bartlesville, Oklahoma, includes scientists and engineers working in over 200 laboratories and numerous pilot plants on our 440 acre research campus to develop new technical solutions focused on advancing our business and solving tomorrow’s energy challenges. Areas of focus for 2024 included feedstock characterization, renewables processing, and process optimization to enhance margins and reliability in our Refining, Midstream, M&S and Renewable Fuels segments.

HUMAN CAPITAL

Phillips 66 employees, our human capital, are guided by our values of safety, honor and commitment. Together, we operate as a high-performing organization by building breadth and depth in capabilities, pursuing excellence and doing the right thing. We empower our people to create and innovate, and to work in ways that are designed to enable us to deliver industry leading performance. At December 31, 2024, we had approximately 13,200 employees working toward our mission of providing energy and improving lives and our vision to be the leading integrated downstream energy provider.

We believe maintaining and enhancing a high-performing organization is critical to our success. Our employees promote our culture and are integral to achieving our strategic priorities and maximizing long-term shareholder value. We strive for continuous improvement of our high-performing organization, as we believe that our employees differentiate us in the marketplace. The human capital measures and objectives that we focus on in managing our business and that we believe are important to understand our business, include:

• Safety—Safety is the cornerstone of our business. We endeavor to protect the health and safety of everyone who has a role in our operations and the communities in which we operate. We employ rigorous employee training and audit programs to drive ongoing improvement in personal safety as we strive for zero incidents. We include environmental and safety metrics in our annual incentive compensation program, including our total recordable rate and process safety event rate, to incentivize and reward safe operations. Under the variable cash incentive program, our personal safety performance is measured by our total recordable rate (TRR), which measures the number of incidents per 200,000 hours worked. In 2024, our combined workforce TRR of 0.12 was 23 times better than the U.S. manufacturing average.

• Culture—Phillips 66 seeks to foster behaviors that support our culture. “Our Energy in Action” is a set of core behaviors embedded in the company’s talent and business processes to drive performance and accountability. Those behaviors include working for the greater good; creating an environment of trust; seeking different perspectives; and pursuing excellence.

In addition, we believe a high level of performance can be achieved through an inclusive culture that supports equal opportunities. Our Executive Inclusion and Diversity and Culture Council, chaired by our Chairman and Chief Executive Officer and comprised of executives and business leaders that serve as global sponsors of our ten Employee Resource Groups (ERGs), supports our goal to build an inclusive culture.

Our ERGs are grassroots organizations, available to all employees, and are focused on professional development, networking, community involvement and supporting Phillips 66 recruiting activities.

We regularly conduct employee engagement surveys that enable us to capture real-time feedback on metrics such as employee engagement, manager effectiveness, performance enablement and our culture. Management analyzes the findings from the survey to monitor our progress and identify potential areas of opportunity.

• Capability—We strive to build depth and breadth in the skills of our employees to create a workforce ready for the future. We drive employee development through technical training and providing opportunities for job rotations, as well as assisting employees with obtaining and sharpening managerial skills through targeted development programs and promotional moves. Our performance management process is designed to identify coaching and training needs.

We also have robust succession management practices and work each year to identify successors for key leadership positions within the company.

• Performance—We focus on delivering exceptional, sustainable results. We work towards retention of top talent and have advanced the effectiveness of our performance management process by embedding “Our Energy in Action” into the process to help drive desired behaviors. Additionally, “High Performing Organization” is one of the metrics used in our variable cash incentive program. In assessing our “High Performing Organization,” we measure success in areas such as culture, engagement, talent, technology, human capital management, and our organization’s ability to adapt and respond to challenges, changing market conditions and other external factors.

COMPETITION

Our businesses operate in a competitive environment. In the Midstream segment, our crude oil and refined petroleum products pipelines face competition from other crude oil and products pipeline companies, major integrated oil companies, as well as independent crude oil gathering, processing and marketing companies. Competition is based primarily on quality of customer service and reliability, competitive rates and the proximity of our assets to customers and market hubs. In addition, the Midstream segment competes with numerous integrated petroleum companies, as well as natural gas processing, transmission and distribution companies, to deliver natural gas and NGL to end users. Principal methods of competing include economically securing the right to purchase raw natural gas for gathering systems, managing the pressure of those systems, operating efficient NGL and gas processing plants and securing markets placement for the products produced.

Elements of competition for each of our Chemicals, Refining and Renewable Fuels segments include product improvement, new product development, low-cost structures, ability to source and run adequate and high-quality feedstocks, and efficient manufacturing and distribution systems. In the M&S segment, competitive factors include product properties, reliability of supply, customer service, price and credit terms, advertising and sales promotion, and development of customer loyalty to branded products.

GENERAL

At December 31, 2024, we held a total of 511 active patents in 16 countries worldwide, including 400 active U.S. patents. The overall profitability of any operating segment is not dependent on any single patent, trademark, license or franchise.

In support of our goal to attain zero incidents, we seek to mitigate risks across the enterprise through a comprehensive Health, Safety and Environmental (HSE) management system that systematically identifies, assesses and manages risks to safeguard employees, contractors and the environment. Its focus is ongoing risk identification, prioritization and control while promoting continuous improvement in implementing HSE policies, meeting leadership expectations and upholding our core values. We strive for operating excellence by integrating our health, occupational safety, process safety and environmental principles throughout our business with a commitment to pursue continuous improvement.

We are subject to various federal laws and government regulations concerning environmental matters and employee safety and health in the United States and other countries. In addition, many state and local governments have adopted environmental and employee safety and health laws and regulations, some of which are similar to federal requirements. State and federal authorities may seek fines and penalties for violating these laws and regulations. The material effects of compliance with these government regulations upon our capital expenditures, earnings and competitive position are primarily associated with environmental regulations. See the environmental information contained in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Capital Resources and Liquidity—Contingencies” under the captions “Environmental” and “Climate Change.” It includes information on expensed and capitalized environmental costs for 2024 and those expected for 2025 and 2026.

Website Access to Reports

Our Internet website address is http://www.phillips66.com. Information contained on our Internet website is not part of this Annual Report.

Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and any amendments to these reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 are available on our website, free of charge, as soon as reasonably practicable after such reports are filed with, or furnished to, the U.S. Securities and Exchange Commission (SEC). Alternatively, you may access these reports at the SEC’s website at http://www.sec.gov.