Phillips 66 Announces New $3 Billion Share Repurchase Program and Quarterly Dividend

HOUSTON–(BUSINESS WIRE)–The board of directors of Phillips 66 (NYSE: PSX) has approved a new $3
billion share repurchase program that increases the company’s total
authorization for share repurchases to $12 billion since the third
quarter of 2012. The board also declared a quarterly dividend of 70
cents per share on Phillips 66 common stock. The dividend is payable on
Dec. 1, 2017, to shareholders of record as of the close of business on
Nov. 17, 2017.

“Returning capital to our shareholders, through a competitive, secure
and growing dividend, reinforced with share repurchases, is a strategic
priority for us,” said Greg Garland, chairman and CEO of Phillips 66.
“We have demonstrated this with seven increases to our quarterly
dividend rate and through our share repurchase programs. We believe our
financial discipline, underpinned by prudent capital allocation, is
fundamental to value creation and has enabled us to return over $15
billion to shareholders since 2012, through dividends, share repurchases
and share exchanges.”

The total shares repurchased and exchanged to date represent over 20
percent of the shares outstanding at the formation of the company. Under
the new share repurchase program, shares will be repurchased from time
to time in the open market at the company’s discretion, subject to
market conditions and other factors, and in accordance with applicable
regulatory requirements. The company may commence, suspend or
discontinue purchases of common stock under this authorization at any
time or periodically without prior notice. Shares of stock repurchased
will be held as treasury shares.

About Phillips 66

Phillips 66 is a diversified energy manufacturing and logistics company.
With a portfolio of Midstream, Chemicals, Refining, and Marketing and
Specialties businesses, the company processes, transports, stores and
markets fuels and products globally. Phillips 66 Partners, the company's
master limited partnership, is an integral asset in the portfolio.
Headquartered in Houston, the company has 14,600 employees committed to
safety and operating excellence. Phillips 66 had $52 billion of assets
as of June 30, 2017. For more information, visit www.phillips66.com
or follow us on Twitter @Phillips66Co.

CAUTIONARY STATEMENT FOR THE PURPOSES OF THE "SAFE HARBOR" PROVISIONS
OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This news release contains certain forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
which are intended to be covered by the safe harbors created thereby.
Words and phrases such as “is anticipated,” “is estimated,” “is
expected,” “is planned,” “is scheduled,” “is targeted,” “believes,”
“continues,” “intends,” “will,” “would,” “objectives,” “goals,”
“projects,” “efforts,” “strategies” and similar expressions are used to
identify such forward-looking statements. However, the absence of these
words does not mean that a statement is not forward-looking.
Forward-looking statements relating to Phillips 66’s operations
(including joint venture operations) are based on management’s
expectations, estimates and projections about the company, its interests
and the energy industry in general on the date this news release was
prepared. These statements are not guarantees of future performance and
involve certain risks, uncertainties and assumptions that are difficult
to predict. Therefore, actual outcomes and results may differ materially
from what is expressed or forecast in such forward-looking statements.
Factors that could cause actual results or events to differ materially
from those described in the forward-looking statements include
fluctuations in NGL, crude oil, and natural gas prices, and
petrochemical and refining margins; unexpected changes in costs for
constructing, modifying or operating our facilities; unexpected
difficulties in manufacturing, refining or transporting our products;
lack of, or disruptions in, adequate and reliable transportation for our
NGL, crude oil, natural gas, and refined products; potential liability
from litigation or for remedial actions, including removal and
reclamation obligations under environmental regulations; limited access
to capital or significantly higher cost of capital related to
illiquidity or uncertainty in the domestic or international financial
markets; and other economic, business, competitive and/or regulatory
factors affecting Phillips 66’s businesses generally as set forth in our
filings with the Securities and Exchange Commission. Phillips 66 is
under no obligation (and expressly disclaims any such obligation) to
update or alter its forward-looking statements, whether as a result of
new information, future events or otherwise.

Contacts

Phillips 66
Jeff Dietert, 832-765-2297 (investors)
[email protected]
or
Rosy
Zuklic, 832-765-2297 (investors)
[email protected]
or
C.W.
Mallon, 832-765-2297 (investors)
[email protected]
or
Dennis
Nuss, 832-765-1850 (media)
[email protected]