Phillips 66

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:

• 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:

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:

• 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:

• 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:

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

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

• 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:

† 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.