Phillips 66 Receives Board Approval to Spur Midstream Growth with Multi-Billion Dollar Investment in Southeast Texas

Phillips 66 (NYSE: PSX), an integrated energy manufacturing and logistics company, has received approval from its board of directors to move forward with both its Sweeny Fractionator One and Freeport Liquefied Petroleum Gas (LPG) Export Terminal. These two projects represent an investment of more than $3 billion as part of the company’s Midstream growth program.

“It’s an extraordinary time of opportunity for our company and our industry, especially in the rapidly growing midstream space,” said Tim Taylor, executive vice president, Phillips 66 Commercial, Marketing, Transportation and Business Development. “Given the anticipated growth in natural gas liquids production, we see substantial advantages in having fractionation and export facilities on the Gulf Coast outside of Mont Belvieu. These projects allow us to maximize our existing infrastructure and will position us for further growth.”

The Sweeny Fractionator One will be located in Old Ocean, Texas, close to the company’s Sweeny Refinery, and will supply purity natural gas liquids (NGL) products to the petrochemical industry and heating markets. Y-grade (mixed NGL) supply to the fractionator will come from nearby major pipelines, including the recently completed Sand Hills Pipeline, in which Phillips 66 owns a direct one-third interest. The 100,000 barrel-per-day NGL fractionator is expected to start up in the third quarter of 2015.

The Freeport LPG Export Terminal will be located at the site of the company’s existing marine terminal in Freeport, Texas, and will leverage Phillips 66 midstream, transportation and storage infrastructure to supply petrochemical, heating and transportation markets globally. The terminal will have an initial export capacity of 4.4 million barrels per month, the equivalent of eight very large gas carriers (VLGCs), with a ship loading rate of 36,000 barrels per hour. Startup of the export terminal is expected in mid-2016.

Each of these projects will include NGL storage and additional pipelines with connectivity to market hubs in Mont Belvieu, Texas. Also included with these projects is a 100,000 barrel-per-day de-ethanizer unit that will be installed close to the Sweeny Refinery to upgrade domestic propane for export.

The two projects are in varying stages of development. For the Sweeny Fractionator One, site preparation is progressing, critical equipment has been ordered, and expansion of supporting infrastructure has begun. The company continues to work with the appropriate agencies to secure necessary permits for the Freeport LPG Export Terminal, and its construction will commence once all permits are approved. Together the projects will create more than 50 full-time jobs and over 1,000 temporary construction jobs.

About Phillips 66

Built on more than 130 years of experience, Phillips 66 is a growing energy manufacturing and logistics company with high-performing Midstream, Chemicals, Refining, and Marketing and Specialties businesses. This integrated portfolio enables Phillips 66 to capture opportunities in the changing energy landscape. Headquartered in Houston, the company has 13,500 employees who are committed to operating excellence and safety. Phillips 66 had $50 billion of assets as of Dec. 31, 2013. For more information, visit www.phillips66.com or follow us on Twitter @Phillips66Co.

CAUTIONARY STATEMENTS

This press release contains forward-looking statements as defined under the federal securities laws, including projections, plans and objectives. Although Phillips 66 (hereinafter referred to as the “company”) believes that expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct. In addition, these statements are subject to certain risks, uncertainties and other assumptions that are difficult to predict and may be beyond the company’s control. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, actual results may vary materially from what the company anticipated, estimated, projected or expected. The key risk factors that may have a direct bearing on the forward-looking statements are described in the filings that the company makes with the Securities and Exchange Commission. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than as described. All forward-looking statements in this release are made as of the date hereof and the company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.