Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2017shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | Phillips 66 Partners LP |
Entity Central Index Key | 1,572,910 |
Trading Symbol | PSXP |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | Mar. 31, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 107,926,894 |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Revenues and Other Income | |||
Operating revenues—related parties | $ 184 | $ 171 | [1] |
Operating revenues—third parties | 10 | 8 | [1] |
Equity in earnings of affiliates | 33 | 25 | [1] |
Other income | 7 | ||
Total revenues and other income | 234 | 204 | [1] |
Costs and Expenses | |||
Operating and maintenance expenses | 62 | 50 | [1] |
Depreciation | 26 | 23 | [1] |
General and administrative expenses | 16 | 17 | [1] |
Taxes other than income taxes | 9 | 10 | [1] |
Interest and debt expense | 24 | 10 | [1] |
Total costs and expenses | 137 | 110 | [1] |
Income before income taxes | 97 | 94 | [1] |
Provision for income taxes | 0 | 0 | [1] |
Net Income | 97 | 94 | [1] |
Less: Net income attributable to Predecessors | 0 | 42 | [1] |
Net income attributable to the Partnership | 97 | 52 | [1] |
Less: General partner’s interest in net income attributable to the Partnership | 32 | 16 | [1] |
Limited partners’ interest in net income attributable to the Partnership | $ 65 | $ 36 | [1] |
Cash Distributions Paid Per Limited Partner Unit (in dollars per share) | $ 0.558 | $ 0.458 | [1] |
Common Units | |||
Costs and Expenses | |||
Net Income Attributable to the Partnership Per Limited Partner Unit—Basic and Diluted (in dollars per share) | $ 0.60 | $ 0.44 | [1] |
Common Units | Public | |||
Costs and Expenses | |||
Net income attributable to the Partnership | $ 26 | $ 10 | |
Average Limited Partner Units Outstanding—Basic and Diluted (thousands) | |||
Common Units Basic and Diluted (in shares) | 43,353 | 24,139 | [1] |
Common Units | Non-public | Phillips 66 | |||
Costs and Expenses | |||
Net income attributable to the Partnership | $ 39 | $ 26 | |
Average Limited Partner Units Outstanding—Basic and Diluted (thousands) | |||
Common Units Basic and Diluted (in shares) | 64,047 | 58,490 | [1] |
[1] | Prior-period financial information has been retrospectively adjusted for acquisitions of businesses under common control. |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | [1] | |
Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 97 | $ 94 | |
Defined benefit plans | |||
Plan sponsored by equity affiliate, net of tax | 0 | 1 | |
Other comprehensive income | 0 | 1 | |
Comprehensive Income | $ 97 | $ 95 | |
[1] | Prior-period financial information has been retrospectively adjusted for acquisitions of businesses under common control. |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and cash equivalents | $ 1 | $ 2 |
Accounts receivable—related parties | 66 | 76 |
Accounts receivable—third parties | 6 | 7 |
Materials and supplies | 12 | 11 |
Prepaid expenses | 3 | 4 |
Total Current Assets | 88 | 100 |
Equity investments | 1,176 | 1,142 |
Net properties, plants and equipment | 2,669 | 2,675 |
Goodwill | 185 | 185 |
Deferred rentals—related parties | 5 | 5 |
Other assets | 2 | 2 |
Total Assets | 4,125 | 4,109 |
Liabilities | ||
Accounts payable—related parties | 11 | 12 |
Accounts payable—third parties | 28 | 31 |
Accrued property and other taxes | 16 | 10 |
Accrued interest | 28 | 26 |
Short-term debt | 2 | 15 |
Deferred revenues—related parties | 18 | 14 |
Other current liabilities | 1 | 3 |
Total Current Liabilities | 104 | 111 |
Long-term debt | 2,357 | 2,396 |
Asset retirement obligations | 9 | 9 |
Accrued environmental costs | 2 | 2 |
Deferred income taxes | 2 | 2 |
Deferred revenues—related parties—long-term | 23 | 23 |
Total Liabilities | 2,497 | 2,543 |
Equity | ||
General partner—Phillips 66 (2017 and 2016—2,187,386 units issued and outstanding) | (687) | (704) |
Accumulated other comprehensive loss | (1) | (1) |
Total Equity | 1,628 | 1,566 |
Total Liabilities and Equity | 4,125 | 4,109 |
Public | Common Units | ||
Equity | ||
Unitholders | 1,837 | 1,795 |
Total Equity | 1,837 | 1,795 |
Non-public | Common Units | Phillips 66 | ||
Equity | ||
Unitholders | 479 | 476 |
Total Equity | $ 479 | $ 476 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - shares | Mar. 31, 2017 | Dec. 31, 2016 |
General partner—Phillips 66 units issued (in shares) | 2,187,386 | 2,187,386 |
General partner—Phillips 66 units outstanding (in shares) | 2,187,386 | 2,187,386 |
Common Units | Public | ||
Units issued (in shares) | 43,879,870 | 43,134,902 |
Units outstanding (in shares) | 43,879,870 | 43,134,902 |
Common Units | Non-public | Phillips 66 | ||
Units issued (in shares) | 64,047,024 | 64,047,024 |
Units outstanding (in shares) | 64,047,024 | 64,047,024 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Cash Flows From Operating Activities | |||
Net Income | $ 97 | $ 94 | [1] |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation | 26 | 23 | [1] |
Undistributed equity earnings | (4) | 1 | [1] |
Deferred revenues—long-term | 0 | 6 | [1] |
Other | 3 | 0 | [1] |
Working capital adjustments | |||
Decrease (increase) in accounts receivable | 10 | (11) | [1] |
Decrease (increase) in materials and supplies | (1) | (1) | [1] |
Decrease (increase) in prepaid expenses and other current assets | 1 | 0 | [1] |
Increase (decrease) in accounts payable | (1) | 7 | [1] |
Increase (decrease) in accrued interest | 2 | (11) | [1] |
Increase (decrease) in deferred revenues | 4 | 1 | [1] |
Increase (decrease) in other accruals | 2 | 2 | [1] |
Net Cash Provided by Operating Activities | 139 | 111 | [1] |
Cash Flows From Investing Activities | |||
Cash capital expenditures and investments | (57) | (97) | [1] |
Return of investment from equity affiliates | 8 | 3 | [1] |
Net Cash Used in Investing Activities | (49) | (94) | [1] |
Cash Flows From Financing Activities | |||
Net contributions from Phillips 66 to Predecessors | 0 | 12 | [1] |
Issuance of debt | 712 | 78 | [1] |
Repayment of debt | (765) | (86) | [1] |
Issuance of common units | 40 | 0 | [1] |
Other cash contributions from Phillips 66 | 10 | 0 | [1] |
Net Cash Used in Financing Activities | (91) | (47) | [1] |
Net Change in Cash and Cash Equivalents | (1) | (30) | [1] |
Cash and cash equivalents at beginning of period | 2 | 50 | [1] |
Cash and Cash Equivalents at End of Period | 1 | 20 | [1] |
Public | Common Units | |||
Cash Flows From Financing Activities | |||
Quarterly distributions to unitholders | (24) | (11) | [1] |
Non-public | Common Units | |||
Cash Flows From Financing Activities | |||
Quarterly distributions to unitholders | (27) | ||
Phillips 66 | Non-public | Common Units | |||
Cash Flows From Financing Activities | |||
Quarterly distributions to unitholders | (36) | (27) | [1] |
General Partner | |||
Cash Flows From Financing Activities | |||
Quarterly distributions to unitholders | $ (28) | $ (13) | [1] |
[1] | Prior-period financial information has been retrospectively adjusted for acquisitions of businesses under common control. |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) $ in Millions | Total | Net Investment | General Partner | Accum. Other Comprehensive Loss | Common UnitsPublic | Common UnitsNon-publicPhillips 66 | |||
Beginning Balance at Dec. 31, 2015 | $ 1,444 | $ 1,054 | [1] | $ (650) | $ (2) | $ 809 | $ 233 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Less: Net income (loss) attributable to Predecessors | [1] | 42 | 42 | ||||||
Net contributions from Phillips 66—Predecessors | 45 | 45 | [1] | ||||||
Allocation of net investment to unitholders | 0 | (70) | [1] | 1 | 0 | 69 | |||
Net income attributable to the Partnership | 52 | [1] | 16 | 10 | 26 | ||||
Other comprehensive income | 1 | 1 | |||||||
Quarterly cash distributions to unitholders and General Partner | (51) | (13) | (11) | (27) | |||||
Ending Balance at Mar. 31, 2016 | [1] | $ 1,533 | $ 1,071 | $ (646) | (1) | $ 808 | $ 301 | ||
Units (in shares) at Dec. 31, 2015 | 84,171,217 | 1,683,425 | 24,138,750 | 58,349,042 | |||||
Units Outstanding [Roll Forward] | |||||||||
Units issued associated with acquisitions (in shares) | 421,248 | 8,425 | 0 | 412,823 | |||||
Units (in shares) at Mar. 31, 2016 | 84,592,465 | 1,691,850 | 24,138,750 | 58,761,865 | |||||
Beginning Balance at Dec. 31, 2016 | $ 1,566 | $ (704) | (1) | $ 1,795 | $ 476 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Less: Net income (loss) attributable to Predecessors | 0 | ||||||||
Issuance of common units | 40 | 40 | |||||||
Net income attributable to the Partnership | 97 | 32 | 26 | 39 | |||||
Quarterly cash distributions to unitholders and General Partner | (88) | (28) | (24) | (36) | |||||
Other contributions from Phillips 66 | 13 | 13 | |||||||
Ending Balance at Mar. 31, 2017 | $ 1,628 | $ (687) | $ (1) | $ 1,837 | $ 479 | ||||
Units (in shares) at Dec. 31, 2016 | 109,369,312 | 2,187,386 | 43,134,902 | 64,047,024 | |||||
Units Outstanding [Roll Forward] | |||||||||
Units issued in public equity offerings (in shares) | 744,968 | 744,968 | |||||||
Units (in shares) at Mar. 31, 2017 | 110,114,280 | 2,187,386 | 43,879,870 | 64,047,024 | |||||
[1] | Prior-period financial information has been retrospectively adjusted for acquisitions of businesses under common control. |
Business and Basis of Presentat
Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2017 | |
Business and Basis of Presentation [Abstract] | |
Business and Basis of Presentation | Business and Basis of Presentation Unless otherwise stated or the context otherwise indicates, all references to “Phillips 66 Partners,” “the Partnership,” “us,” “our,” “we,” or similar expressions refer to Phillips 66 Partners LP, including its consolidated subsidiaries. References to Phillips 66 may refer to Phillips 66 and/or its subsidiaries, depending on the context. References to our “General Partner” refer to Phillips 66 Partners GP LLC, and references to Phillips 66 PDI refer to Phillips 66 Project Development Inc., the Phillips 66 subsidiary that holds a limited partner interest in us. Description of the Business We are a growth-oriented master limited partnership formed to own, operate, develop and acquire primarily fee-based crude oil, refined petroleum products and natural gas liquids (NGL) pipelines, terminals and other transportation and midstream assets. Our common units trade on the New York Stock Exchange under the symbol PSXP. Our assets consist of crude oil, refined petroleum products and NGL transportation, terminaling and storage systems, as well as an NGL fractionator. We conduct our operations through both wholly owned and joint venture operations. The majority of our wholly owned assets are associated with, and integral to the operation of, nine of Phillips 66’s owned or joint venture refineries. We generate revenue primarily by providing fee-based transportation, terminaling, storage and NGL fractionation services to Phillips 66 and other customers. Our equity affiliates generate revenue primarily from transporting and terminaling NGL, refined petroleum products and crude oil. Since we do not own any of the NGL, crude oil and refined petroleum products we handle and do not engage in the trading of NGL, crude oil and refined petroleum products, we have limited direct exposure to risks associated with fluctuating commodity prices, although these risks indirectly influence our activities and results of operations over the long term. Basis of Presentation We have acquired assets from Phillips 66 that were considered transfers of businesses between entities under common control. This required the transactions to be accounted for as if the transfers had occurred at the beginning of the transfer period, with prior periods retrospectively adjusted to furnish comparative information. Accordingly, the accompanying financial statements and related notes have been retrospectively adjusted to include the historical results and financial position of these acquired businesses prior to the effective date of each acquisition. We refer to these pre-acquisition operations as those of our “Predecessors.” The combined financial statements of our Predecessors were derived from the accounting records of Phillips 66 and reflect the combined historical results of operations, financial position and cash flows of our Predecessors as if such businesses had been combined for all periods presented. All intercompany transactions and accounts within our Predecessors have been eliminated. The assets and liabilities of our Predecessors in these financial statements have been reflected on a historical cost basis because the transfer of the Predecessors to us took place within the Phillips 66 consolidated group. The consolidated statement of income also includes expense allocations for certain functions performed by Phillips 66, including allocations of general corporate expenses related to executive oversight, accounting, treasury, tax, legal, information technology and procurement; and operational support services such as engineering and logistics. These allocations were based primarily on relative carrying values of properties, plants and equipment (PP&E) and equity-method investments, or number of terminals and pipeline miles, and secondarily on activity-based cost allocations. Our management believes the assumptions underlying the allocation of expenses from Phillips 66 are reasonable. Nevertheless, the financial results of our Predecessors may not include all of the actual expenses that would have been incurred had our Predecessors been a stand-alone publicly traded partnership during the periods presented. |
Interim Financial Information
Interim Financial Information | 3 Months Ended |
Mar. 31, 2017 | |
Interim Financial Information [Abstract] | |
Interim Financial Information | Interim Financial Information The interim financial information presented in the financial statements included in this report is unaudited and includes all known accruals and adjustments necessary, in the opinion of management, for a fair presentation of our financial position, results of operations and cash flows for the periods presented. Unless otherwise specified, all such adjustments are of a normal and recurring nature. Certain notes and other information have been condensed or omitted from the interim financial statements included in this report. Therefore, these interim financial statements should be read in conjunction with the audited consolidated financial statements and notes included in our 2016 Annual Report on Form 10-K. The results of operations for the three months ended March 31, 2017 , are not necessarily indicative of the results to be expected for the full year. |
Changes in Accounting Principle
Changes in Accounting Principles | 3 Months Ended |
Mar. 31, 2017 | |
Changes in Accounting Principles [Abstract] | |
Changes in Accounting Principles | Changes in Accounting Principles Effective January 1, 2017, we early adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2017-04, “Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” which eliminates Step 2 from the goodwill impairment test. Under the revised test, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Beginning this year, we will apply this ASU prospectively to our goodwill impairment test. Effective January 1, 2017, we early adopted ASU No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash.” The new update changes the classification and presentation of restricted cash in the statement of cash flow. The amendment requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash and restricted cash equivalents. Adoption of this ASU on a retrospective basis did not impact our financial statements. Effective January 1, 2017, we early adopted ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” The new update clarifies the treatment of several cash flow categories. In addition, ASU No. 2016-15 clarifies that when cash receipts and cash payments have aspects of more than one class of cash flows and cannot be separated, classification will depend on the predominant source or use. Adoption of this ASU on a retrospective basis did not have a material impact on our financial statements. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2017 | |
Retrospective Adjustments For Common Control Transactions [Abstract] | |
Acquisitions | Acquisitions River Parish Acquisition In November 2016, we acquired the River Parish NGL System, a third party’s NGL logistics assets located in southeast Louisiana, consisting of pipelines and storage caverns connecting multiple fractionation facilities, refineries and a petrochemical facility. We recorded $183 million of PP&E and $3 million of goodwill in connection with the acquisition in 2016. Our acquisition accounting was finalized during the first quarter of 2017, with no change to the provisional amounts recorded in 2016. During 2016, we completed three acquisitions that were considered transfers of businesses between entities under common control, and therefore the related acquired assets were transferred at historical carrying value. Because these acquisitions were common control transactions in which we acquired businesses, our historical financial statements have been retrospectively adjusted as if we owned the acquired assets for all periods presented. Fractionator Acquisitions Initial Fractionator Acquisition. In February 2016, we entered into a Contribution, Conveyance and Assumption Agreement (CCAA) with subsidiaries of Phillips 66 to acquire a 25 percent controlling interest in Phillips 66 Sweeny Frac LLC (Sweeny Frac LLC) for total consideration of $236 million (the Initial Fractionator Acquisition). Total consideration consisted of the assumption of a $212 million note payable to a subsidiary of Phillips 66 and the issuance of 412,823 common units to Phillips 66 PDI and 8,425 general partner units to our General Partner to maintain its 2 percent general partner interest. The Initial Fractionator Acquisition closed in March 2016. Subsequent Fractionator Acquisition. In May 2016, we entered into a CCAA with subsidiaries of Phillips 66 to acquire the remaining 75 percent interest in Sweeny Frac LLC and 100 percent of the Standish Pipeline for total consideration of $775 million (the Subsequent Fractionator Acquisition). Total consideration consisted of the assumption of $675 million of notes payable to a subsidiary of Phillips 66 and the issuance of 1,400,922 common units to Phillips 66 PDI and 286,753 general partner units to our General Partner to maintain its 2 percent general partner interest in us after also taking into account the public offering we completed in May 2016. The Subsequent Fractionator Acquisition closed in May 2016. Eagle Acquisition In October 2016, we entered into a CCAA with subsidiaries of Phillips 66 to acquire certain pipeline and terminal assets supporting four Phillips 66-operated refineries (the Eagle Acquisition). The Eagle Acquisition closed in October 2016. We paid Phillips 66 total consideration of $1,305 million , consisting of $1,109 million in cash and the issuance of 3,884,237 common units to Phillips 66 PDI and 208,783 general partner units to our General Partner to allow it to maintain its 2 percent general partner interest in us. The following tables present our previously reported results of operations and cash flows giving effect to the Subsequent Fractionator Acquisition and the Eagle Acquisition for the three months ended March 31, 2016. The results of operations and cash flows of the Initial Fractionator Acquisition are included in our previously reported consolidated statement of income and consolidated statement of cash flows for the three months ended March 31, 2016, within the first column. The second and third columns in all tables present the retrospective adjustments made to our historical financial information for the related acquired assets prior to the effective date of acquisition. The fourth column in all tables presents our consolidated financial information as retrospectively adjusted. Three Months Ended March 31, 2016 Millions of Dollars Consolidated Statement of Income Phillips 66 Acquired Subsequent Fractionator Assets Predecessor Acquired Eagle Assets Predecessor Consolidated Revenues and Other Income Operating revenues—related parties $ 94 5 72 171 Operating revenues—third parties 2 — 6 8 Equity in earnings of affiliates 25 — — 25 Total revenues and other income 121 5 78 204 Costs and Expenses Operating and maintenance expenses 23 — 27 50 Depreciation 14 — 9 23 General and administrative expenses 9 — 8 17 Taxes other than income taxes 5 — 5 10 Interest and debt expense 10 — — 10 Total costs and expenses 61 — 49 110 Income before income taxes 60 5 29 94 Provision for income taxes — — — — Net income 60 5 29 94 Less: Net income attributable to noncontrolling interests 3 (3 ) — — Less: Net income attributable to Predecessors 5 8 29 42 Net income attributable to the Partnership 52 — — 52 Less: General partner’s interest in net income attributable to the Partnership 16 — — 16 Limited partners’ interest in net income attributable to the Partnership $ 36 — — 36 Three Months Ended March 31, 2016 Millions of Dollars Phillips 66 Acquired Subsequent Fractionator Assets Predecessor Acquired Eagle Assets Predecessor Consolidated Cash Flows From Operating Activities Net income $ 60 5 29 94 Adjustments to reconcile net income to net cash provided by operating activities Depreciation 14 — 9 23 Unfunded equity losses 1 — — 1 Deferred revenues—long-term 6 — — 6 Working capital adjustments Decrease (increase) in accounts receivable (12 ) — 1 (11 ) Decrease (increase) in materials and supplies (1 ) — — (1 ) Decrease (increase) in other current assets 1 — (1 ) — Increase (decrease) in accounts payable 6 — 1 7 Increase (decrease) in accrued interest (11 ) — — (11 ) Increase (decrease) in deferred revenues 1 — — 1 Increase (decrease) in other accruals 2 — — 2 Net Cash Provided by Operating Activities 67 5 39 111 Cash Flows From Investing Activities Cash capital expenditures and investments (77 ) — (20 ) (97 ) Return of investment from equity affiliates 3 — — 3 Net Cash Used in Investing Activities (74 ) — (20 ) (94 ) Cash Flows From Financing Activities Net contributions from (to) Phillips 66 to (from) Predecessors 57 (26 ) (19 ) 12 Issuance of debt 57 21 — 78 Repayment of debt (86 ) — — (86 ) Quarterly distributions to common unitholders—public (11 ) — — (11 ) Quarterly distributions to common unitholder—Phillips 66 (27 ) — — (27 ) Quarterly distributions to General Partner—Phillips 66 (13 ) — — (13 ) Net Cash Used in Financing Activities (23 ) (5 ) (19 ) (47 ) Net Change in Cash and Cash Equivalents (30 ) — — (30 ) Cash and cash equivalents at beginning of period 50 — — 50 Cash and Cash Equivalents at End of Period $ 20 — — 20 |
Equity Investments
Equity Investments | 3 Months Ended |
Mar. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Investments | Equity Investments The following table summarizes our equity investments. Millions of Dollars Percentage Ownership Carrying Value March 31 December 31 DCP Sand Hills Pipeline, LLC (Sand Hills) 33.34 % $ 459 445 DCP Southern Hills Pipeline, LLC (Southern Hills) 33.34 213 212 Explorer Pipeline Company (Explorer) 21.94 124 126 Phillips 66 Partners Terminal LLC (Phillips 66 Partners Terminal) 70.00 67 72 Paradigm Pipeline LLC (Paradigm) 50.00 115 117 Bayou Bridge Pipeline, LLC (Bayou Bridge) 40.00 139 115 STACK Pipeline LLC (STACK) 50.00 59 55 Total equity investments $ 1,176 1,142 Earnings from our equity investments were as follows: Millions of Dollars Three Months Ended 2017 2016 Sand Hills $ 17 15 Southern Hills 7 7 Explorer 5 3 Phillips 66 Partners Terminal 2 — Paradigm (1 ) — Bayou Bridge 2 — STACK 1 — Total equity in earnings of affiliates $ 33 25 |
Properties, Plants and Equipmen
Properties, Plants and Equipment | 3 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Properties, Plants and Equipment | Properties, Plants and Equipment Our investment in PP&E, with the associated accumulated depreciation, was: Millions of Dollars March 31 December 31 Land $ 19 19 Buildings and improvements 88 88 Pipelines and related assets * 1,338 1,335 Terminals and related assets * 612 610 Rail racks and related assets * 137 137 Fractionator and related assets * 615 615 Caverns and related assets * 569 569 Construction-in-progress 42 27 Gross PP&E 3,420 3,400 Less: Accumulated depreciation 751 725 Net PP&E $ 2,669 2,675 *Assets for which we are the lessor. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt at March 31, 2017 , and December 31, 2016 , was: Millions of Dollars March 31, 2017 Fair Value Hierarchy Total Fair Value Balance Sheet Carrying Value Level 1 Level 2* Level 3 2.646% Senior Notes due 2020 $ — 300 — 300 300 3.605% Senior Notes due 2025 — 492 — 492 500 3.550% Senior Notes due 2026 — 479 — 479 500 4.680% Senior Notes due 2045 — 275 — 275 300 4.900% Senior Notes due 2046 — 595 — 595 625 Revolving credit facility at 2.23% at March 31, 2017 — 157 — 157 157 Total $ — 2,298 — 2,298 2,382 Net unamortized discounts and debt issuance costs (23 ) Total debt $ 2,359 *Fair value was estimated using quoted market prices of comparable instruments. Millions of Dollars December 31, 2016 Fair Value Hierarchy Total Fair Value Balance Sheet Carrying Value Level 1 Level 2* Level 3 2.646% Senior Notes due 2020 $ — 298 — 298 300 3.605% Senior Notes due 2025 — 490 — 490 500 3.550% Senior Notes due 2026 — 483 — 483 500 4.680% Senior Notes due 2045 — 277 — 277 300 4.900% Senior Notes due 2046 — 599 — 599 625 Revolving credit facility at 1.98% at year-end 2016 — 210 — 210 210 Total $ — 2,357 — 2,357 2,435 Net unamortized discounts and debt issuance costs (24 ) Total debt $ 2,411 *Fair value was estimated using quoted market prices of comparable instruments. Revolving Credit Facility At March 31, 2017 , and December 31, 2016, we had an aggregate of $157 million and $210 million borrowed and outstanding under our $750 million revolving credit facility, respectively. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Equity | Equity ATM Program In June 2016, we filed a prospectus supplement to the shelf registration statement for our continuous offering program that became effective with the Securities and Exchange Commission in May 2016, related to the continuous issuance of up to an aggregate of $250 million of common units, in amounts, at prices and on terms to be determined by market conditions and other factors at the time of our offerings (such continuous offering program, or at-the-market program, referred to as our ATM Program). For the three months ended March 31, 2017, on a settlement date basis, we issued 744,968 common units under the ATM Program, which generated net proceeds of $40 million . Since inception through March 31, 2017 , we have issued an aggregate of 1,091,120 common units under our ATM Program, generating net proceeds of $58 million , after broker commissions of $1 million . The net proceeds from sales under the ATM Program are used for general partnership purposes, which may include debt repayment, future acquisitions, capital expenditures and additions to working capital. |
Net Income Per Limited Partner
Net Income Per Limited Partner Unit | 3 Months Ended |
Mar. 31, 2017 | |
Partners' Capital Notes [Abstract] | |
Net Income Per Limited Partner Unit | Net Income Per Limited Partner Unit Net income per limited partner unit is computed by dividing the limited partners’ interest in net income attributable to the Partnership by the weighted average number of common units outstanding for the period. The classes of participating securities as of March 31, 2017 , included common units, general partner units and incentive distribution rights (IDRs). Basic and diluted net income per unit are the same because we do not have potentially dilutive instruments outstanding. Net income earned by the Partnership is allocated between the limited partners and the General Partner (including the General Partner’s IDRs) in accordance with our partnership agreement. First, earnings are allocated based on actual cash distributions made to our unitholders, including those attributable to the General Partner’s IDRs. To the extent net income attributable to the Partnership exceeds or is less than cash distributions, this difference is allocated based on the unitholders’ respective ownership percentages, after consideration of any priority allocations of earnings. When our financial statements are retrospectively adjusted after a dropdown transaction, the earnings of the acquired business, prior to the closing of the transaction, are allocated entirely to our General Partner and presented as net income (loss) attributable to Predecessors. The earnings per unit of our limited partners prior to the close of the transaction do not change as a result of the dropdown. After the closing of a dropdown transaction, the earnings of the acquired business are allocated in accordance with our partnership agreement as previously described. Millions of Dollars Three Months Ended March 31 2017 2016 Net income attributable to the Partnership $ 97 52 Less: General partner’s distribution declared (including IDRs)* 32 16 Limited partners’ distribution declared on common units* 63 40 Distributions less than (in excess of) net income attributable to the Partnership $ 2 (4 ) *Distribution declared attributable to the indicated periods. General Partner (including IDRs) Limited Partners’ Common Units Total Three Months Ended March 31, 2017 Net income attributable to the Partnership (millions) : Distribution declared $ 32 63 95 Distribution less than net income attributable to the Partnership — 2 2 Net income attributable to the Partnership $ 32 65 97 Weighted average units outstanding: Basic 2,187,386 107,400,037 109,587,423 Diluted 2,187,386 107,400,037 109,587,423 Net income per limited partner unit (dollars) : Basic $ 0.60 Diluted 0.60 General Partner (including IDRs) Limited Partners’ Common Units Total Three Months Ended March 31, 2016 Net income attributable to the Partnership (millions) : Distribution declared $ 16 40 56 Distribution in excess of net income attributable to the Partnership — (4 ) (4 ) Net income attributable to the Partnership $ 16 36 52 Weighted average units outstanding: Basic 1,686,295 82,628,424 84,314,719 Diluted 1,686,295 82,628,424 84,314,719 Net income per limited partner unit (dollars) : Basic $ 0.44 Diluted 0.44 On April 19, 2017 , the Board of Directors of our General Partner declared a quarterly cash distribution of $0.586 per limited partner unit which, combined with distributions to our General Partner, will result in total distributions of $95 million attributable to the first quarter of 2017. This distribution is payable May 12, 2017 , to unitholders of record as of May 1, 2017 . |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Contingencies [Abstract] | |
Contingencies | Contingencies From time to time, lawsuits involving a variety of claims that arise in the ordinary course of business are filed against us. We also may be required to remove or mitigate the effects on the environment of the placement, storage, disposal or release of certain chemical, mineral and petroleum substances at various sites. We regularly assess the need for accounting recognition or disclosure of these contingencies. In the case of all known contingencies (other than those related to income taxes), we accrue a liability when the loss is probable and the amount is reasonably estimable. If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the minimum of the range is accrued. We do not reduce these liabilities for potential insurance or third-party recoveries. If applicable, we accrue receivables for probable insurance or other third-party recoveries. In the case of income-tax-related contingencies, we use a cumulative probability-weighted loss accrual in cases where sustaining a tax position is less than certain. Based on currently available information, we believe it is remote that future costs related to known contingent liability exposures will exceed current accruals by an amount that would have a material adverse impact on our consolidated financial statements. As we learn new facts concerning contingencies, we reassess our position both with respect to accrued liabilities and other potential exposures. Estimates particularly sensitive to future changes include any contingent liabilities recorded for environmental remediation, tax and legal matters. Estimated future environmental remediation costs are subject to change due to such factors as the uncertain magnitude of cleanup costs, the unknown time and extent of such remedial actions that may be required, and the determination of our liability in proportion to that of other potentially responsible parties. Estimated future costs related to tax and legal matters are subject to change as events evolve and as additional information becomes available during the administrative and litigation processes. Environmental We are subject to federal, state and local environmental laws and regulations. We record accruals for contingent environmental liabilities based on management’s best estimates, using all information that is available at the time. We measure estimates and base liabilities on currently available facts, existing technology, and presently enacted laws and regulations, taking into account stakeholder and business considerations. When measuring environmental liabilities, we also consider our prior experience in remediation of contaminated sites, other companies’ cleanup experience, and data released by the U.S. Environmental Protection Agency or other organizations. We consider unasserted claims in our determination of environmental liabilities, and we accrue them in the period they are both probable and reasonably estimable. At both March 31, 2017 , and December 31, 2016 , our total environmental accrual was $2 million . In the future, we may be involved in additional environmental assessments, cleanups and proceedings. Legal Proceedings Under our amended omnibus agreement, Phillips 66 provides certain services for our benefit, including legal support services, and we pay an operational and administrative support fee for these services. Phillips 66’s legal organization applies its knowledge, experience and professional judgment to the specific characteristics of our cases, employing a litigation management process to manage and monitor the legal proceedings against us. The process facilitates the early evaluation and quantification of potential exposures in individual cases and enables tracking of those cases that have been scheduled for trial and/or mediation. Based on professional judgment and experience in using these litigation management tools and available information about current developments in all our cases, Phillips 66’s legal organization regularly assesses the adequacy of current accruals and determines if adjustment of existing accruals, or establishment of new accruals, is required. As of March 31, 2017 , and December 31, 2016 , we did not have any material accrued contingent liabilities associated with litigation matters. Indemnification and Excluded Liabilities Under our amended omnibus agreement and pursuant to the terms of various agreements under which we acquired assets from Phillips 66, Phillips 66 will indemnify us, or assume responsibility, for certain environmental liabilities, tax liabilities, litigation and any other liabilities attributable to the ownership or operation of the assets contributed to us and that arose prior to the effective date of each acquisition. These indemnifications and exclusions from liability have, in some cases, time limits and deductibles. When Phillips 66 performs under any of these indemnifications or exclusions from liability, we recognize a non-cash expense and an associated non-cash capital contribution from our General Partner, as these are considered liabilities paid for by a principal unitholder. We have assumed, and have agreed to pay, discharge and perform as and when due, all liabilities arising out of or attributable to the ownership or operation of the assets, or other activities occurring in connection with and attributable to the ownership or operation of the assets, from and after the effective date of each acquisition. |
Cash Flow Information
Cash Flow Information | 3 Months Ended |
Mar. 31, 2017 | |
Supplemental Cash Flow Information [Abstract] | |
Cash Flow Information | Cash Flow Information 2016 Initial Fractionator Acquisition The Initial Fractionator Acquisition was a noncash transaction. The historical book value of the net assets of our 25 percent interest acquired was $283 million . Of this amount, $212 million was attributed to the note payable assumed (a noncash investing and financing activity). The remaining $71 million was attributed to the common and general partner units issued (a noncash investing and financing activity). Capital Expenditures Our capital expenditures and investments consisted of: Millions of Dollars Three Months Ended 2017 2016* Capital Expenditures and Investments Cash capital expenditures and investments $ 57 97 Change in capital expenditure accruals (4 ) (33 ) Total capital expenditures and investments $ 53 64 *Prior-period financial information has been retrospectively adjusted for acquisitions of businesses under common control. Millions of Dollars Three Months Ended 2017 2016 Capital Expenditures and Investments Capital expenditures and investments attributable to the Partnership $ 53 33 Capital expenditures attributable to Predecessors* — 31 Total capital expenditures and investments* $ 53 64 *Prior-period financial information has been retrospectively adjusted for acquisitions of businesses under common control. Millions of Dollars Three Months Ended 2017 2016 Other Noncash Investing and Financing Activities Certain liabilities of acquired assets retained by Phillips 66 (1) $ — 34 (1) Certain liabilities of assets acquired from Phillips 66 were retained by Phillips 66, pursuant to the terms of various agreements under which we acquired those assets. See Note 10—Contingencies for additional information on excluded liabilities associated with acquisitions from Phillips 66. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Commercial Agreements We have entered into multiple commercial agreements with Phillips 66, including transportation services agreements, terminal services agreements, storage services agreements, stevedoring services agreements, a fractionation service agreement and rail terminal services agreements. Under these long-term, fee-based agreements, we provide transportation, terminaling, storage, stevedoring, fractionation and rail terminal services to Phillips 66, and Phillips 66 commits to provide us with minimum quarterly throughput volumes of crude oil, NGL and refined petroleum products or minimum monthly service fees. Under our transportation and terminaling services agreements, if Phillips 66 fails to transport, throughput or store its minimum throughput volume during any quarter, then Phillips 66 will pay us a deficiency payment based on the calculation described in the agreement. Amended Operational Services Agreement Under our amended operational services agreement, we reimburse Phillips 66 for providing certain operational services to us in support of our pipelines, terminaling and storage facilities. These services include routine and emergency maintenance and repair services, routine operational activities, routine administrative services, construction and related services and such other services as we and Phillips 66 may mutually agree upon from time to time. Amended Omnibus Agreement The amended omnibus agreement addresses our payment of an annual operating and administrative support fee and our obligation to reimburse Phillips 66 for all other direct or allocated costs and expenses incurred by Phillips 66 in providing general and administrative services. Additionally, the omnibus agreement addresses Phillips 66’s indemnification to us and our indemnification to Phillips 66 for certain environmental and other liabilities. Further, it addresses the granting of a license from Phillips 66 to us with respect to the use of certain Phillips 66 trademarks. Tax Sharing Agreement We have entered into a tax sharing agreement with Phillips 66 pursuant to which we will reimburse Phillips 66 for our share of state and local income and other taxes incurred by Phillips 66 due to our results of operations being included in a combined or consolidated tax return filed by Phillips 66. The amount of any such reimbursement will be limited to the tax that we (and our subsidiaries) would have paid had we not been included in a combined group with Phillips 66. Phillips 66 may use its tax attributes to cause its combined or consolidated group to owe no tax. We would nevertheless reimburse Phillips 66 for the tax we would have owed, even though Phillips 66 had no cash expense for that period. Related Party Transactions Significant related party transactions included in operating and maintenance expenses, general and administrative expenses and interest and debt expense were: Millions of Dollars Three Months Ended 2017 2016* Operating and maintenance expenses $ 28 25 General and administrative expenses 15 14 Interest and debt expense — 1 Total $ 43 40 *Prior-period financial information has been retrospectively adjusted for acquisitions of businesses under common control. We pay Phillips 66 a monthly operational and administrative support fee under the terms of our amended omnibus agreement in the amount of $7 million . The operational and administrative support fee is for the provision of certain services, including: executive services; financial and administrative services (including treasury and accounting); information technology; legal services; corporate health, safety and environmental services; facility services; human resources services; procurement services; corporate engineering services, including asset integrity and regulatory services; logistical services; asset oversight, such as operational management and supervision; business development services; investor relations; tax matters; and public company reporting services. We also reimburse Phillips 66 for all other direct or allocated costs incurred on behalf of us, pursuant to the terms of our amended omnibus agreement. The classification of these charges between operating and maintenance expenses and general and administrative expenses is based on the functional nature of the services being performed for our operations. Under our amended operational services agreement, we reimburse Phillips 66 for the provision of certain operational services to us in support of our pipelines, rail racks, fractionator, and terminaling and storage facilities. Additionally, we pay Phillips 66 for insurance services provided to us. Operating and maintenance expenses also include volumetric gain/loss associated with volumes transported by Phillips 66. |
New Accounting Standards
New Accounting Standards | 3 Months Ended |
Mar. 31, 2017 | |
New Accounting Standards [Abstract] | |
New Accounting Standards | In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations: Clarifying the Definition of a Business,” which clarifies the definition of a business with the objective of adding guidance to assist in evaluating whether transactions should be accounted for as acquisitions of assets or businesses. The amendment provides a screen for determining when a transaction involves an acquisition of a business. If substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, then the transaction does not involve the acquisition of a business. If the screen is not met, then the amendment requires that, to be considered a business, the operation must include at a minimum an input and a substantive process that together significantly contribute to the ability to create an output. The guidance may reduce the number of transactions accounted for as business acquisitions. Public business entities should apply the guidance in ASU No. 2017-01 to annual periods beginning after December 15, 2017, including interim periods within those periods, with early adoption permitted. The amendments should be applied prospectively, and no disclosures are required at the effective date. We are currently evaluating the provisions of ASU No. 2017-01. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” In the new standard, the FASB modified its determination of whether a contract is a lease rather than whether a lease is a capital or operating lease under the previous accounting principles generally accepted in the United States (GAAP). A contract represents a lease if a transfer of control occurs over an identified property, plant and equipment for a period of time in exchange for consideration. Control over the use of the identified asset includes the right to obtain substantially all of the economic benefits from the use of the asset and the right to direct its use. The FASB continued to maintain two classifications of leases—financing and operating—which are substantially similar to capital and operating leases in the previous lease guidance. Under the new standard, recognition of assets and liabilities arising from operating leases will require recognition on the balance sheet. The effect of all leases in the statement of comprehensive income and the statement of cash flows will be largely unchanged. Lessor accounting will also be largely unchanged. Additional disclosures will be required for financing and operating leases for both lessors and lessees. Public business entities should apply the guidance in ASU No. 2016-02 for annual periods beginning after December 15, 2018, including interim periods within those annual periods. Early adoption is permitted. Entities are required to adopt the ASU using a modified retrospective approach, subject to certain optional practical expedients, and apply its provisions to leasing arrangements existing at or entered into after the earliest comparative period presented in the financial statements. We are currently evaluating the provisions of ASU No. 2016-02 and assessing its impact on our financial statements. In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities,” to meet its objective of providing more decision-useful information about financial instruments. The majority of this ASU’s provisions amend only the presentation or disclosures of financial instruments; however, one provision will also affect net income. Equity investments carried under the cost method or lower of cost or fair value method of accounting, in accordance with current GAAP, will have to be carried at fair value upon adoption of ASU No. 2016-01, with changes in fair value recorded in net income. For equity investments that do not have readily determinable fair values, a company may elect to carry such investments at cost less impairments, if any, adjusted up or down for price changes in similar financial instruments issued by the investee, when and if observed. Public business entities should apply the guidance in ASU No. 2016-01 for annual periods beginning after December 15, 2017, and interim periods within those annual periods, with early adoption prohibited. We are currently evaluating the provisions of ASU No. 2016-01. Our initial review indicates that ASU No. 2016-01 will have a limited impact on our financial statements. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” The new standard converged guidance on recognizing revenues in contracts with customers under GAAP and International Financial Reporting Standards. This ASU is intended to improve comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets and expand disclosure requirements. In August 2015, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date.” The amendment in this ASU defers the effective date of ASU No. 2014-09 for all entities for one year. Public business entities should apply the guidance in ASU No. 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier adoption is permitted only as of annual reporting periods beginning after December 31, 2016, including interim reporting periods within that reporting period. Retrospective or modified retrospective application of the accounting standard is required. ASU No. 2014-09 was further amended in March 2016 by the provisions of ASU No. 2016-08, “Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” in April 2016 by the provisions of ASU No. 2016-10, “Identifying Performance Obligations and Licensing,” in May 2016 by the provisions of ASU No. 2016-12, “Narrow-Scope Improvements and Practical Expedients,” and in December 2016 by the provisions of ASU No. 2016-20, “Technical Corrections to Topic 606, Revenue from Contracts with Customers.” As part of our assessment work-to-date, we have formed an implementation work team, completed training on the new ASU’s revenue recognition model and are continuing our contract review and documentation. Our expectation is to adopt the standard on January 1, 2018, using the modified retrospective application. Our evaluation of the new ASU is ongoing, which includes understanding the impact of adoption on earnings from equity method investments and revenue generated by lease arrangements. Based on our analysis to-date, we have not identified any material impact on our financial statements, other than disclosure. |
Business and Basis of Present21
Business and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Business and Basis of Presentation [Abstract] | |
Basis of Presentation | Basis of Presentation We have acquired assets from Phillips 66 that were considered transfers of businesses between entities under common control. This required the transactions to be accounted for as if the transfers had occurred at the beginning of the transfer period, with prior periods retrospectively adjusted to furnish comparative information. Accordingly, the accompanying financial statements and related notes have been retrospectively adjusted to include the historical results and financial position of these acquired businesses prior to the effective date of each acquisition. We refer to these pre-acquisition operations as those of our “Predecessors.” The combined financial statements of our Predecessors were derived from the accounting records of Phillips 66 and reflect the combined historical results of operations, financial position and cash flows of our Predecessors as if such businesses had been combined for all periods presented. All intercompany transactions and accounts within our Predecessors have been eliminated. The assets and liabilities of our Predecessors in these financial statements have been reflected on a historical cost basis because the transfer of the Predecessors to us took place within the Phillips 66 consolidated group. The consolidated statement of income also includes expense allocations for certain functions performed by Phillips 66, including allocations of general corporate expenses related to executive oversight, accounting, treasury, tax, legal, information technology and procurement; and operational support services such as engineering and logistics. These allocations were based primarily on relative carrying values of properties, plants and equipment (PP&E) and equity-method investments, or number of terminals and pipeline miles, and secondarily on activity-based cost allocations. Our management believes the assumptions underlying the allocation of expenses from Phillips 66 are reasonable. Nevertheless, the financial results of our Predecessors may not include all of the actual expenses that would have been incurred had our Predecessors been a stand-alone publicly traded partnership during the periods presented. |
New Accounting Pronouncements | Changes in Accounting Principles Effective January 1, 2017, we early adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2017-04, “Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” which eliminates Step 2 from the goodwill impairment test. Under the revised test, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Beginning this year, we will apply this ASU prospectively to our goodwill impairment test. Effective January 1, 2017, we early adopted ASU No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash.” The new update changes the classification and presentation of restricted cash in the statement of cash flow. The amendment requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash and restricted cash equivalents. Adoption of this ASU on a retrospective basis did not impact our financial statements. Effective January 1, 2017, we early adopted ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” The new update clarifies the treatment of several cash flow categories. In addition, ASU No. 2016-15 clarifies that when cash receipts and cash payments have aspects of more than one class of cash flows and cannot be separated, classification will depend on the predominant source or use. Adoption of this ASU on a retrospective basis did not have a material impact on our financial statements. In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations: Clarifying the Definition of a Business,” which clarifies the definition of a business with the objective of adding guidance to assist in evaluating whether transactions should be accounted for as acquisitions of assets or businesses. The amendment provides a screen for determining when a transaction involves an acquisition of a business. If substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, then the transaction does not involve the acquisition of a business. If the screen is not met, then the amendment requires that, to be considered a business, the operation must include at a minimum an input and a substantive process that together significantly contribute to the ability to create an output. The guidance may reduce the number of transactions accounted for as business acquisitions. Public business entities should apply the guidance in ASU No. 2017-01 to annual periods beginning after December 15, 2017, including interim periods within those periods, with early adoption permitted. The amendments should be applied prospectively, and no disclosures are required at the effective date. We are currently evaluating the provisions of ASU No. 2017-01. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” In the new standard, the FASB modified its determination of whether a contract is a lease rather than whether a lease is a capital or operating lease under the previous accounting principles generally accepted in the United States (GAAP). A contract represents a lease if a transfer of control occurs over an identified property, plant and equipment for a period of time in exchange for consideration. Control over the use of the identified asset includes the right to obtain substantially all of the economic benefits from the use of the asset and the right to direct its use. The FASB continued to maintain two classifications of leases—financing and operating—which are substantially similar to capital and operating leases in the previous lease guidance. Under the new standard, recognition of assets and liabilities arising from operating leases will require recognition on the balance sheet. The effect of all leases in the statement of comprehensive income and the statement of cash flows will be largely unchanged. Lessor accounting will also be largely unchanged. Additional disclosures will be required for financing and operating leases for both lessors and lessees. Public business entities should apply the guidance in ASU No. 2016-02 for annual periods beginning after December 15, 2018, including interim periods within those annual periods. Early adoption is permitted. Entities are required to adopt the ASU using a modified retrospective approach, subject to certain optional practical expedients, and apply its provisions to leasing arrangements existing at or entered into after the earliest comparative period presented in the financial statements. We are currently evaluating the provisions of ASU No. 2016-02 and assessing its impact on our financial statements. In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities,” to meet its objective of providing more decision-useful information about financial instruments. The majority of this ASU’s provisions amend only the presentation or disclosures of financial instruments; however, one provision will also affect net income. Equity investments carried under the cost method or lower of cost or fair value method of accounting, in accordance with current GAAP, will have to be carried at fair value upon adoption of ASU No. 2016-01, with changes in fair value recorded in net income. For equity investments that do not have readily determinable fair values, a company may elect to carry such investments at cost less impairments, if any, adjusted up or down for price changes in similar financial instruments issued by the investee, when and if observed. Public business entities should apply the guidance in ASU No. 2016-01 for annual periods beginning after December 15, 2017, and interim periods within those annual periods, with early adoption prohibited. We are currently evaluating the provisions of ASU No. 2016-01. Our initial review indicates that ASU No. 2016-01 will have a limited impact on our financial statements. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” The new standard converged guidance on recognizing revenues in contracts with customers under GAAP and International Financial Reporting Standards. This ASU is intended to improve comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets and expand disclosure requirements. In August 2015, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date.” The amendment in this ASU defers the effective date of ASU No. 2014-09 for all entities for one year. Public business entities should apply the guidance in ASU No. 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier adoption is permitted only as of annual reporting periods beginning after December 31, 2016, including interim reporting periods within that reporting period. Retrospective or modified retrospective application of the accounting standard is required. ASU No. 2014-09 was further amended in March 2016 by the provisions of ASU No. 2016-08, “Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” in April 2016 by the provisions of ASU No. 2016-10, “Identifying Performance Obligations and Licensing,” in May 2016 by the provisions of ASU No. 2016-12, “Narrow-Scope Improvements and Practical Expedients,” and in December 2016 by the provisions of ASU No. 2016-20, “Technical Corrections to Topic 606, Revenue from Contracts with Customers.” As part of our assessment work-to-date, we have formed an implementation work team, completed training on the new ASU’s revenue recognition model and are continuing our contract review and documentation. Our expectation is to adopt the standard on January 1, 2018, using the modified retrospective application. Our evaluation of the new ASU is ongoing, which includes understanding the impact of adoption on earnings from equity method investments and revenue generated by lease arrangements. Based on our analysis to-date, we have not identified any material impact on our financial statements, other than disclosure. |
Earnings Per Share | Net income per limited partner unit is computed by dividing the limited partners’ interest in net income attributable to the Partnership by the weighted average number of common units outstanding for the period. The classes of participating securities as of March 31, 2017 , included common units, general partner units and incentive distribution rights (IDRs). Basic and diluted net income per unit are the same because we do not have potentially dilutive instruments outstanding. Net income earned by the Partnership is allocated between the limited partners and the General Partner (including the General Partner’s IDRs) in accordance with our partnership agreement. First, earnings are allocated based on actual cash distributions made to our unitholders, including those attributable to the General Partner’s IDRs. To the extent net income attributable to the Partnership exceeds or is less than cash distributions, this difference is allocated based on the unitholders’ respective ownership percentages, after consideration of any priority allocations of earnings. |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Retrospective Adjustments For Common Control Transactions [Abstract] | |
Schedule of Results of Operations Giving Effect to Acquisitions | The following tables present our previously reported results of operations and cash flows giving effect to the Subsequent Fractionator Acquisition and the Eagle Acquisition for the three months ended March 31, 2016. The results of operations and cash flows of the Initial Fractionator Acquisition are included in our previously reported consolidated statement of income and consolidated statement of cash flows for the three months ended March 31, 2016, within the first column. The second and third columns in all tables present the retrospective adjustments made to our historical financial information for the related acquired assets prior to the effective date of acquisition. The fourth column in all tables presents our consolidated financial information as retrospectively adjusted. Three Months Ended March 31, 2016 Millions of Dollars Consolidated Statement of Income Phillips 66 Acquired Subsequent Fractionator Assets Predecessor Acquired Eagle Assets Predecessor Consolidated Revenues and Other Income Operating revenues—related parties $ 94 5 72 171 Operating revenues—third parties 2 — 6 8 Equity in earnings of affiliates 25 — — 25 Total revenues and other income 121 5 78 204 Costs and Expenses Operating and maintenance expenses 23 — 27 50 Depreciation 14 — 9 23 General and administrative expenses 9 — 8 17 Taxes other than income taxes 5 — 5 10 Interest and debt expense 10 — — 10 Total costs and expenses 61 — 49 110 Income before income taxes 60 5 29 94 Provision for income taxes — — — — Net income 60 5 29 94 Less: Net income attributable to noncontrolling interests 3 (3 ) — — Less: Net income attributable to Predecessors 5 8 29 42 Net income attributable to the Partnership 52 — — 52 Less: General partner’s interest in net income attributable to the Partnership 16 — — 16 Limited partners’ interest in net income attributable to the Partnership $ 36 — — 36 Three Months Ended March 31, 2016 Millions of Dollars Phillips 66 Acquired Subsequent Fractionator Assets Predecessor Acquired Eagle Assets Predecessor Consolidated Cash Flows From Operating Activities Net income $ 60 5 29 94 Adjustments to reconcile net income to net cash provided by operating activities Depreciation 14 — 9 23 Unfunded equity losses 1 — — 1 Deferred revenues—long-term 6 — — 6 Working capital adjustments Decrease (increase) in accounts receivable (12 ) — 1 (11 ) Decrease (increase) in materials and supplies (1 ) — — (1 ) Decrease (increase) in other current assets 1 — (1 ) — Increase (decrease) in accounts payable 6 — 1 7 Increase (decrease) in accrued interest (11 ) — — (11 ) Increase (decrease) in deferred revenues 1 — — 1 Increase (decrease) in other accruals 2 — — 2 Net Cash Provided by Operating Activities 67 5 39 111 Cash Flows From Investing Activities Cash capital expenditures and investments (77 ) — (20 ) (97 ) Return of investment from equity affiliates 3 — — 3 Net Cash Used in Investing Activities (74 ) — (20 ) (94 ) Cash Flows From Financing Activities Net contributions from (to) Phillips 66 to (from) Predecessors 57 (26 ) (19 ) 12 Issuance of debt 57 21 — 78 Repayment of debt (86 ) — — (86 ) Quarterly distributions to common unitholders—public (11 ) — — (11 ) Quarterly distributions to common unitholder—Phillips 66 (27 ) — — (27 ) Quarterly distributions to General Partner—Phillips 66 (13 ) — — (13 ) Net Cash Used in Financing Activities (23 ) (5 ) (19 ) (47 ) Net Change in Cash and Cash Equivalents (30 ) — — (30 ) Cash and cash equivalents at beginning of period 50 — — 50 Cash and Cash Equivalents at End of Period $ 20 — — 20 |
Equity Investments (Tables)
Equity Investments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Investments | The following table summarizes our equity investments. Millions of Dollars Percentage Ownership Carrying Value March 31 December 31 DCP Sand Hills Pipeline, LLC (Sand Hills) 33.34 % $ 459 445 DCP Southern Hills Pipeline, LLC (Southern Hills) 33.34 213 212 Explorer Pipeline Company (Explorer) 21.94 124 126 Phillips 66 Partners Terminal LLC (Phillips 66 Partners Terminal) 70.00 67 72 Paradigm Pipeline LLC (Paradigm) 50.00 115 117 Bayou Bridge Pipeline, LLC (Bayou Bridge) 40.00 139 115 STACK Pipeline LLC (STACK) 50.00 59 55 Total equity investments $ 1,176 1,142 Earnings from our equity investments were as follows: Millions of Dollars Three Months Ended 2017 2016 Sand Hills $ 17 15 Southern Hills 7 7 Explorer 5 3 Phillips 66 Partners Terminal 2 — Paradigm (1 ) — Bayou Bridge 2 — STACK 1 — Total equity in earnings of affiliates $ 33 25 |
Properties, Plants and Equipm24
Properties, Plants and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | Our investment in PP&E, with the associated accumulated depreciation, was: Millions of Dollars March 31 December 31 Land $ 19 19 Buildings and improvements 88 88 Pipelines and related assets * 1,338 1,335 Terminals and related assets * 612 610 Rail racks and related assets * 137 137 Fractionator and related assets * 615 615 Caverns and related assets * 569 569 Construction-in-progress 42 27 Gross PP&E 3,420 3,400 Less: Accumulated depreciation 751 725 Net PP&E $ 2,669 2,675 *Assets for which we are the lessor. |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt at March 31, 2017 , and December 31, 2016 , was: Millions of Dollars March 31, 2017 Fair Value Hierarchy Total Fair Value Balance Sheet Carrying Value Level 1 Level 2* Level 3 2.646% Senior Notes due 2020 $ — 300 — 300 300 3.605% Senior Notes due 2025 — 492 — 492 500 3.550% Senior Notes due 2026 — 479 — 479 500 4.680% Senior Notes due 2045 — 275 — 275 300 4.900% Senior Notes due 2046 — 595 — 595 625 Revolving credit facility at 2.23% at March 31, 2017 — 157 — 157 157 Total $ — 2,298 — 2,298 2,382 Net unamortized discounts and debt issuance costs (23 ) Total debt $ 2,359 *Fair value was estimated using quoted market prices of comparable instruments. Millions of Dollars December 31, 2016 Fair Value Hierarchy Total Fair Value Balance Sheet Carrying Value Level 1 Level 2* Level 3 2.646% Senior Notes due 2020 $ — 298 — 298 300 3.605% Senior Notes due 2025 — 490 — 490 500 3.550% Senior Notes due 2026 — 483 — 483 500 4.680% Senior Notes due 2045 — 277 — 277 300 4.900% Senior Notes due 2046 — 599 — 599 625 Revolving credit facility at 1.98% at year-end 2016 — 210 — 210 210 Total $ — 2,357 — 2,357 2,435 Net unamortized discounts and debt issuance costs (24 ) Total debt $ 2,411 *Fair value was estimated using quoted market prices of comparable instruments. |
Net Income Per Limited Partne26
Net Income Per Limited Partner Unit (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Partners' Capital Notes [Abstract] | |
Schedule of Distributions Declared, Partners Interest in Partnership Net Income and Net Income per Unit by Class | Millions of Dollars Three Months Ended March 31 2017 2016 Net income attributable to the Partnership $ 97 52 Less: General partner’s distribution declared (including IDRs)* 32 16 Limited partners’ distribution declared on common units* 63 40 Distributions less than (in excess of) net income attributable to the Partnership $ 2 (4 ) *Distribution declared attributable to the indicated periods. General Partner (including IDRs) Limited Partners’ Common Units Total Three Months Ended March 31, 2017 Net income attributable to the Partnership (millions) : Distribution declared $ 32 63 95 Distribution less than net income attributable to the Partnership — 2 2 Net income attributable to the Partnership $ 32 65 97 Weighted average units outstanding: Basic 2,187,386 107,400,037 109,587,423 Diluted 2,187,386 107,400,037 109,587,423 Net income per limited partner unit (dollars) : Basic $ 0.60 Diluted 0.60 General Partner (including IDRs) Limited Partners’ Common Units Total Three Months Ended March 31, 2016 Net income attributable to the Partnership (millions) : Distribution declared $ 16 40 56 Distribution in excess of net income attributable to the Partnership — (4 ) (4 ) Net income attributable to the Partnership $ 16 36 52 Weighted average units outstanding: Basic 1,686,295 82,628,424 84,314,719 Diluted 1,686,295 82,628,424 84,314,719 Net income per limited partner unit (dollars) : Basic $ 0.44 Diluted 0.44 |
Cash Flow Information (Tables)
Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Supplemental Cash Flow Information [Abstract] | |
Summary of Capital Expenditures and Noncash Investing and Financing Activities | Our capital expenditures and investments consisted of: Millions of Dollars Three Months Ended 2017 2016* Capital Expenditures and Investments Cash capital expenditures and investments $ 57 97 Change in capital expenditure accruals (4 ) (33 ) Total capital expenditures and investments $ 53 64 *Prior-period financial information has been retrospectively adjusted for acquisitions of businesses under common control. Millions of Dollars Three Months Ended 2017 2016 Capital Expenditures and Investments Capital expenditures and investments attributable to the Partnership $ 53 33 Capital expenditures attributable to Predecessors* — 31 Total capital expenditures and investments* $ 53 64 *Prior-period financial information has been retrospectively adjusted for acquisitions of businesses under common control. Millions of Dollars Three Months Ended 2017 2016 Other Noncash Investing and Financing Activities Certain liabilities of acquired assets retained by Phillips 66 (1) $ — 34 (1) Certain liabilities of assets acquired from Phillips 66 were retained by Phillips 66, pursuant to the terms of various agreements under which we acquired those assets. See Note 10—Contingencies for additional information on excluded liabilities associated with acquisitions from Phillips 66. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Summary of Related Party Transactions | Significant related party transactions included in operating and maintenance expenses, general and administrative expenses and interest and debt expense were: Millions of Dollars Three Months Ended 2017 2016* Operating and maintenance expenses $ 28 25 General and administrative expenses 15 14 Interest and debt expense — 1 Total $ 43 40 *Prior-period financial information has been retrospectively adjusted for acquisitions of businesses under common control. |
Business and Basis of Present29
Business and Basis of Presentation (Narrative) (Details) | Mar. 31, 2017refinery |
Phillips 66 | |
Limited Partners' Capital Account [Line Items] | |
Number of refineries | 9 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) $ in Millions | Oct. 14, 2016USD ($)refineryshares | May 31, 2016USD ($)shares | Mar. 31, 2016USD ($)shares | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($)Business | Mar. 01, 2016 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 185 | $ 185 | ||||
Number of businesses acquired | Business | 3 | |||||
General partner interest, percent | 2.00% | 2.00% | 2.00% | |||
River Parish Acquisition | Phillips 66 | Phillips 66 | ||||||
Business Acquisition [Line Items] | ||||||
Property, plant, and equipment | $ 183 | |||||
Goodwill | $ 3 | |||||
Sweeny Fractionator Acquisition | Phillips 66 | General Partner Units | ||||||
Business Acquisition [Line Items] | ||||||
Units issued associated with acquisition (in shares) | shares | 8,425 | |||||
Sweeny Fractionator Acquisition | Phillips 66 | Phillips 66 | ||||||
Business Acquisition [Line Items] | ||||||
Controlling interest acquired, percentage | 25.00% | 25.00% | ||||
Total consideration | $ 236 | |||||
Assumption of a note payable to a subsidiary of Phillips 66 | $ 212 | |||||
Sweeny Fractionator Acquisition | Phillips 66 | Phillips 66 | Common Units | ||||||
Business Acquisition [Line Items] | ||||||
Units issued associated with acquisition (in shares) | shares | 412,823 | |||||
Subsequent Fractionator Acquisition | Phillips 66 | General Partner Units | ||||||
Business Acquisition [Line Items] | ||||||
Units issued associated with acquisition (in shares) | shares | 286,753 | |||||
Subsequent Fractionator Acquisition | Phillips 66 | Phillips 66 | ||||||
Business Acquisition [Line Items] | ||||||
Total consideration | $ 775 | |||||
Assumption of a note payable to a subsidiary of Phillips 66 | $ 675 | |||||
Subsequent Fractionator Acquisition | Phillips 66 | Phillips 66 | Common Units | ||||||
Business Acquisition [Line Items] | ||||||
Units issued associated with acquisition (in shares) | shares | 1,400,922 | |||||
Subsequent Fractionator Acquisition | Phillips 66 Sweeny Frac LLC | Phillips 66 | Phillips 66 | ||||||
Business Acquisition [Line Items] | ||||||
Controlling interest acquired, percentage | 75.00% | |||||
Subsequent Fractionator Acquisition | Standish Pipeline | Phillips 66 | Phillips 66 | ||||||
Business Acquisition [Line Items] | ||||||
Controlling interest acquired, percentage | 100.00% | |||||
Eagle Acquisition | Phillips 66 | General Partner Units | ||||||
Business Acquisition [Line Items] | ||||||
Units issued associated with acquisition (in shares) | shares | 208,783 | |||||
Eagle Acquisition | Phillips 66 | Common Units | ||||||
Business Acquisition [Line Items] | ||||||
Units issued associated with acquisition (in shares) | shares | 3,884,237 | |||||
Eagle Acquisition | Phillips 66 | Phillips 66 | ||||||
Business Acquisition [Line Items] | ||||||
Total consideration | $ 1,305 | |||||
Number of refineries | refinery | 4 | |||||
Cash consideration for the transaction partially funded by proceeds from debt and equity offerings | $ 1,109 |
Acquisitions (Schedule of Resul
Acquisitions (Schedule of Results of Operations Giving Effect to Acquisitions) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Revenues and Other Income | |||
Operating revenues—related parties | $ 184 | $ 171 | [1] |
Operating revenues—third parties | 10 | 8 | [1] |
Equity in earnings of affiliates | 33 | 25 | [1] |
Total revenues and other income | 234 | 204 | [1] |
Costs and Expenses | |||
Operating and maintenance expenses | 62 | 50 | [1] |
Depreciation | 26 | 23 | [1] |
General and administrative expenses | 16 | 17 | [1] |
Taxes other than income taxes | 9 | 10 | [1] |
Interest and debt expense | 24 | 10 | [1] |
Total costs and expenses | 137 | 110 | [1] |
Income before income taxes | 97 | 94 | [1] |
Provision for income taxes | 0 | 0 | [1] |
Net Income | 97 | 94 | [1] |
Less: Net income attributable to noncontrolling interests | 0 | ||
Less: Net income attributable to Predecessors | 0 | 42 | [1] |
Net income attributable to the Partnership | 97 | 52 | [1] |
Less: General partner’s interest in net income attributable to the Partnership | 32 | 16 | [1] |
Limited partners’ interest in net income attributable to the Partnership | $ 65 | 36 | [1] |
Phillips 66 Partners LP (As Previously Reported) | |||
Revenues and Other Income | |||
Operating revenues—related parties | 94 | ||
Operating revenues—third parties | 2 | ||
Equity in earnings of affiliates | 25 | ||
Total revenues and other income | 121 | ||
Costs and Expenses | |||
Operating and maintenance expenses | 23 | ||
Depreciation | 14 | ||
General and administrative expenses | 9 | ||
Taxes other than income taxes | 5 | ||
Interest and debt expense | 10 | ||
Total costs and expenses | 61 | ||
Income before income taxes | 60 | ||
Provision for income taxes | 0 | ||
Net Income | 60 | ||
Less: Net income attributable to noncontrolling interests | 3 | ||
Less: Net income attributable to Predecessors | 5 | ||
Net income attributable to the Partnership | 52 | ||
Less: General partner’s interest in net income attributable to the Partnership | 16 | ||
Limited partners’ interest in net income attributable to the Partnership | 36 | ||
Acquired Assets Predecessor | Standish And Sweeny Fractionator Acquisition | Phillips 66 | Phillips 66 | |||
Revenues and Other Income | |||
Operating revenues—related parties | 5 | ||
Operating revenues—third parties | 0 | ||
Equity in earnings of affiliates | 0 | ||
Total revenues and other income | 5 | ||
Costs and Expenses | |||
Operating and maintenance expenses | 0 | ||
Depreciation | 0 | ||
General and administrative expenses | 0 | ||
Taxes other than income taxes | 0 | ||
Interest and debt expense | 0 | ||
Total costs and expenses | 0 | ||
Income before income taxes | 5 | ||
Provision for income taxes | 0 | ||
Net Income | 5 | ||
Less: Net income attributable to noncontrolling interests | (3) | ||
Less: Net income attributable to Predecessors | 8 | ||
Net income attributable to the Partnership | 0 | ||
Less: General partner’s interest in net income attributable to the Partnership | 0 | ||
Limited partners’ interest in net income attributable to the Partnership | 0 | ||
Acquired Assets Predecessor | Eagle Acquisition | Phillips 66 | Phillips 66 | |||
Revenues and Other Income | |||
Operating revenues—related parties | 72 | ||
Operating revenues—third parties | 6 | ||
Equity in earnings of affiliates | 0 | ||
Total revenues and other income | 78 | ||
Costs and Expenses | |||
Operating and maintenance expenses | 27 | ||
Depreciation | 9 | ||
General and administrative expenses | 8 | ||
Taxes other than income taxes | 5 | ||
Interest and debt expense | 0 | ||
Total costs and expenses | 49 | ||
Income before income taxes | 29 | ||
Provision for income taxes | 0 | ||
Net Income | 29 | ||
Less: Net income attributable to noncontrolling interests | 0 | ||
Less: Net income attributable to Predecessors | 29 | ||
Net income attributable to the Partnership | 0 | ||
Less: General partner’s interest in net income attributable to the Partnership | 0 | ||
Limited partners’ interest in net income attributable to the Partnership | $ 0 | ||
[1] | Prior-period financial information has been retrospectively adjusted for acquisitions of businesses under common control. |
Acquisitions (Schedule of Cash
Acquisitions (Schedule of Cash Flow) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Cash Flows From Operating Activities | |||
Net income | $ 97 | $ 94 | [1] |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation | 26 | 23 | [1] |
Unfunded equity losses | (4) | 1 | [1] |
Deferred revenues—long-term | 0 | 6 | [1] |
Working capital adjustments | |||
Decrease (increase) in accounts receivable | 10 | (11) | [1] |
Decrease (increase) in materials and supplies | (1) | (1) | [1] |
Decrease (increase) in other current assets | 0 | ||
Increase (decrease) in accounts payable | (1) | 7 | [1] |
Increase (decrease) in accrued interest | 2 | (11) | [1] |
Increase (decrease) in deferred revenues | 4 | 1 | [1] |
Increase (decrease) in other accruals | 2 | 2 | [1] |
Net Cash Provided by Operating Activities | 139 | 111 | [1] |
Cash Flows From Investing Activities | |||
Cash capital expenditures and investments | (57) | (97) | [1] |
Return of investment from equity affiliates | 8 | 3 | [1] |
Net Cash Used in Investing Activities | (49) | (94) | [1] |
Cash Flows From Financing Activities | |||
Net contributions from (to) Phillips 66 to (from) Predecessors | 0 | 12 | [1] |
Issuance of debt | 712 | 78 | [1] |
Repayment of debt | (765) | (86) | [1] |
Net Cash Used in Financing Activities | (91) | (47) | [1] |
Net Change in Cash and Cash Equivalents | (1) | (30) | [1] |
Cash and cash equivalents at beginning of period | 2 | 50 | [1] |
Cash and Cash Equivalents at End of Period | 1 | 20 | [1] |
Phillips 66 Partners LP (As Previously Reported) | |||
Cash Flows From Operating Activities | |||
Net income | 60 | ||
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation | 14 | ||
Unfunded equity losses | 1 | ||
Deferred revenues—long-term | 6 | ||
Working capital adjustments | |||
Decrease (increase) in accounts receivable | (12) | ||
Decrease (increase) in materials and supplies | (1) | ||
Decrease (increase) in other current assets | 1 | ||
Increase (decrease) in accounts payable | 6 | ||
Increase (decrease) in accrued interest | (11) | ||
Increase (decrease) in deferred revenues | 1 | ||
Increase (decrease) in other accruals | 2 | ||
Net Cash Provided by Operating Activities | 67 | ||
Cash Flows From Investing Activities | |||
Cash capital expenditures and investments | (77) | ||
Return of investment from equity affiliates | 3 | ||
Net Cash Used in Investing Activities | (74) | ||
Cash Flows From Financing Activities | |||
Net contributions from (to) Phillips 66 to (from) Predecessors | 57 | ||
Issuance of debt | 57 | ||
Repayment of debt | (86) | ||
Net Cash Used in Financing Activities | (23) | ||
Net Change in Cash and Cash Equivalents | (30) | ||
Cash and cash equivalents at beginning of period | 50 | ||
Cash and Cash Equivalents at End of Period | 20 | ||
Standish And Sweeny Fractionator Acquisition | Phillips 66 | Phillips 66 | Acquired Assets Predecessor | |||
Cash Flows From Operating Activities | |||
Net income | 5 | ||
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation | 0 | ||
Unfunded equity losses | 0 | ||
Deferred revenues—long-term | 0 | ||
Working capital adjustments | |||
Decrease (increase) in accounts receivable | 0 | ||
Decrease (increase) in materials and supplies | 0 | ||
Decrease (increase) in other current assets | 0 | ||
Increase (decrease) in accounts payable | 0 | ||
Increase (decrease) in accrued interest | 0 | ||
Increase (decrease) in deferred revenues | 0 | ||
Increase (decrease) in other accruals | 0 | ||
Net Cash Provided by Operating Activities | 5 | ||
Cash Flows From Investing Activities | |||
Cash capital expenditures and investments | 0 | ||
Return of investment from equity affiliates | 0 | ||
Net Cash Used in Investing Activities | 0 | ||
Cash Flows From Financing Activities | |||
Net contributions from (to) Phillips 66 to (from) Predecessors | (26) | ||
Issuance of debt | 21 | ||
Repayment of debt | 0 | ||
Net Cash Used in Financing Activities | (5) | ||
Net Change in Cash and Cash Equivalents | 0 | ||
Cash and cash equivalents at beginning of period | 0 | ||
Cash and Cash Equivalents at End of Period | 0 | ||
Eagle Acquisition | Phillips 66 | Phillips 66 | Acquired Assets Predecessor | |||
Cash Flows From Operating Activities | |||
Net income | 29 | ||
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation | 9 | ||
Unfunded equity losses | 0 | ||
Deferred revenues—long-term | 0 | ||
Working capital adjustments | |||
Decrease (increase) in accounts receivable | 1 | ||
Decrease (increase) in materials and supplies | 0 | ||
Decrease (increase) in other current assets | (1) | ||
Increase (decrease) in accounts payable | 1 | ||
Increase (decrease) in accrued interest | 0 | ||
Increase (decrease) in deferred revenues | 0 | ||
Increase (decrease) in other accruals | 0 | ||
Net Cash Provided by Operating Activities | 39 | ||
Cash Flows From Investing Activities | |||
Cash capital expenditures and investments | (20) | ||
Return of investment from equity affiliates | 0 | ||
Net Cash Used in Investing Activities | (20) | ||
Cash Flows From Financing Activities | |||
Net contributions from (to) Phillips 66 to (from) Predecessors | (19) | ||
Issuance of debt | 0 | ||
Repayment of debt | 0 | ||
Net Cash Used in Financing Activities | (19) | ||
Net Change in Cash and Cash Equivalents | 0 | ||
Cash and cash equivalents at beginning of period | 0 | ||
Cash and Cash Equivalents at End of Period | 0 | ||
Common Units | Public | |||
Cash Flows From Financing Activities | |||
Quarterly distributions to unitholders | (24) | (11) | [1] |
Common Units | Public | Phillips 66 Partners LP (As Previously Reported) | |||
Cash Flows From Financing Activities | |||
Quarterly distributions to unitholders | (11) | ||
Common Units | Public | Standish And Sweeny Fractionator Acquisition | Phillips 66 | Phillips 66 | Acquired Assets Predecessor | |||
Cash Flows From Financing Activities | |||
Quarterly distributions to unitholders | 0 | ||
Common Units | Public | Eagle Acquisition | Phillips 66 | Phillips 66 | Acquired Assets Predecessor | |||
Cash Flows From Financing Activities | |||
Quarterly distributions to unitholders | 0 | ||
Common Units | Non-public | |||
Cash Flows From Financing Activities | |||
Quarterly distributions to unitholders | (27) | ||
Common Units | Non-public | Phillips 66 Partners LP (As Previously Reported) | |||
Cash Flows From Financing Activities | |||
Quarterly distributions to unitholders | (27) | ||
Common Units | Non-public | Phillips 66 | |||
Cash Flows From Financing Activities | |||
Quarterly distributions to unitholders | (36) | (27) | [1] |
Common Units | Non-public | Standish And Sweeny Fractionator Acquisition | Phillips 66 | Phillips 66 | Acquired Assets Predecessor | |||
Cash Flows From Financing Activities | |||
Quarterly distributions to unitholders | 0 | ||
Common Units | Non-public | Eagle Acquisition | Phillips 66 | Phillips 66 | Acquired Assets Predecessor | |||
Cash Flows From Financing Activities | |||
Quarterly distributions to unitholders | 0 | ||
General Partner | |||
Cash Flows From Financing Activities | |||
Quarterly distributions to unitholders | $ (28) | (13) | [1] |
General Partner | Phillips 66 Partners LP (As Previously Reported) | |||
Cash Flows From Financing Activities | |||
Quarterly distributions to unitholders | (13) | ||
General Partner | Standish And Sweeny Fractionator Acquisition | Phillips 66 | Phillips 66 | Acquired Assets Predecessor | |||
Cash Flows From Financing Activities | |||
Quarterly distributions to unitholders | 0 | ||
General Partner | Eagle Acquisition | Phillips 66 | Phillips 66 | Acquired Assets Predecessor | |||
Cash Flows From Financing Activities | |||
Quarterly distributions to unitholders | $ 0 | ||
[1] | Prior-period financial information has been retrospectively adjusted for acquisitions of businesses under common control. |
Equity Investments (Schedule of
Equity Investments (Schedule of Equity Investments) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | ||
Schedule of Equity Method Investments [Line Items] | ||||
Carrying Value | $ 1,176 | $ 1,142 | ||
Equity in earnings of affiliates | $ 33 | $ 25 | [1] | |
DCP Sand Hills Pipeline, LLC (Sand Hills) | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Percentage Ownership | 33.34% | |||
Carrying Value | $ 459 | 445 | ||
Equity in earnings of affiliates | $ 17 | 15 | ||
DCP Southern Hills Pipeline, LLC (Southern Hills) | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Percentage Ownership | 33.34% | |||
Carrying Value | $ 213 | 212 | ||
Equity in earnings of affiliates | $ 7 | 7 | ||
Explorer Pipeline Company (Explorer) | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Percentage Ownership | 21.94% | |||
Carrying Value | $ 124 | 126 | ||
Equity in earnings of affiliates | $ 5 | 3 | ||
Phillips 66 Partners Terminal LLC (Phillips 66 Partners Terminal) | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Percentage Ownership | 70.00% | |||
Carrying Value | $ 67 | 72 | ||
Equity in earnings of affiliates | $ 2 | 0 | ||
Paradigm Pipeline LLC (Paradigm) | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Percentage Ownership | 50.00% | |||
Carrying Value | $ 115 | 117 | ||
Equity in earnings of affiliates | $ (1) | 0 | ||
Bayou Bridge Pipeline, LLC (Bayou Bridge) | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Percentage Ownership | 40.00% | |||
Carrying Value | $ 139 | 115 | ||
Equity in earnings of affiliates | $ 2 | 0 | ||
STACK Pipeline LLC (STACK) | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Percentage Ownership | 50.00% | |||
Carrying Value | $ 59 | $ 55 | ||
Equity in earnings of affiliates | $ 1 | $ 0 | ||
[1] | Prior-period financial information has been retrospectively adjusted for acquisitions of businesses under common control. |
Properties, Plants and Equipm34
Properties, Plants and Equipment (Summary of Properties, Plants and Equipment) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Gross PP&E | $ 3,420 | $ 3,400 |
Less: Accumulated depreciation | 751 | 725 |
Net PP&E | 2,669 | 2,675 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Gross PP&E | 19 | 19 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross PP&E | 88 | 88 |
Pipelines and related assets | ||
Property, Plant and Equipment [Line Items] | ||
Gross PP&E | 1,338 | 1,335 |
Terminals and related assets | ||
Property, Plant and Equipment [Line Items] | ||
Gross PP&E | 612 | 610 |
Rail racks and related assets | ||
Property, Plant and Equipment [Line Items] | ||
Gross PP&E | 137 | 137 |
Fractionator and related assets | ||
Property, Plant and Equipment [Line Items] | ||
Gross PP&E | 615 | 615 |
Caverns and related assets | ||
Property, Plant and Equipment [Line Items] | ||
Gross PP&E | 569 | 569 |
Gross PP&E | ||
Property, Plant and Equipment [Line Items] | ||
Gross PP&E | $ 42 | $ 27 |
Debt (Summary of Long-Term Debt
Debt (Summary of Long-Term Debt) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Balance Sheet Carrying Value | $ 2,382 | $ 2,435 |
Long-term debt, fair value | 2,298 | 2,357 |
Long-term line of credit | 157 | 210 |
Unamortized discounts and debt issuance costs | (23) | (24) |
Total debt | 2,359 | 2,411 |
2.646% Senior Notes due 2020 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Balance Sheet Carrying Value | 300 | 300 |
Long-term debt, fair value | $ 300 | $ 298 |
Interest rate, stated percentage | 2.646% | 2.646% |
3.605% Senior Notes due 2025 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Balance Sheet Carrying Value | $ 500 | $ 500 |
Long-term debt, fair value | $ 492 | $ 490 |
Interest rate, stated percentage | 3.605% | 3.605% |
3.550% Senior Notes due 2026 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Balance Sheet Carrying Value | $ 500 | $ 500 |
Long-term debt, fair value | $ 479 | $ 483 |
Interest rate, stated percentage | 3.55% | 3.55% |
4.680% Senior Notes due 2045 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Balance Sheet Carrying Value | $ 300 | $ 300 |
Long-term debt, fair value | $ 275 | $ 277 |
Interest rate, stated percentage | 4.68% | 4.68% |
4.900% Senior Notes due 2046 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Balance Sheet Carrying Value | $ 625 | $ 625 |
Long-term debt, fair value | $ 595 | $ 599 |
Interest rate, stated percentage | 4.90% | 4.90% |
Level 1 | ||
Debt Instrument [Line Items] | ||
Balance Sheet Carrying Value | $ 0 | $ 0 |
Long-term line of credit | 0 | 0 |
Level 1 | 2.646% Senior Notes due 2020 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 0 | 0 |
Level 1 | 3.605% Senior Notes due 2025 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 0 | 0 |
Level 1 | 3.550% Senior Notes due 2026 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 0 | 0 |
Level 1 | 4.680% Senior Notes due 2045 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 0 | 0 |
Level 1 | 4.900% Senior Notes due 2046 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 0 | 0 |
Level 2 | ||
Debt Instrument [Line Items] | ||
Balance Sheet Carrying Value | 2,298 | 2,357 |
Long-term line of credit | 157 | 210 |
Level 2 | 2.646% Senior Notes due 2020 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 300 | 298 |
Level 2 | 3.605% Senior Notes due 2025 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 492 | 490 |
Level 2 | 3.550% Senior Notes due 2026 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 479 | 483 |
Level 2 | 4.680% Senior Notes due 2045 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 275 | 277 |
Level 2 | 4.900% Senior Notes due 2046 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 595 | 599 |
Level 3 | ||
Debt Instrument [Line Items] | ||
Balance Sheet Carrying Value | 0 | 0 |
Long-term line of credit | 0 | 0 |
Level 3 | 2.646% Senior Notes due 2020 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 0 | 0 |
Level 3 | 3.605% Senior Notes due 2025 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 0 | 0 |
Level 3 | 3.550% Senior Notes due 2026 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 0 | 0 |
Level 3 | 4.680% Senior Notes due 2045 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 0 | 0 |
Level 3 | 4.900% Senior Notes due 2046 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | $ 0 | $ 0 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 2.33% | 1.98% |
Revolving Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Balance Sheet Carrying Value | $ 157 | $ 210 |
Long-term line of credit | $ 157 | $ 210 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Long-term line of credit | $ 157,000,000 | $ 210,000,000 |
Line of Credit | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term line of credit | 157,000,000 | $ 210,000,000 |
Line of credit facility, maximum borrowing capacity | $ 750,000,000 |
Equity (Narrative) (Details)
Equity (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 10 Months Ended |
May 31, 2016 | Mar. 31, 2017 | Mar. 31, 2017 | |
Limited Partners' Capital Account [Line Items] | |||
Number of common units issued in public offering (in shares) | 744,968 | ||
At The Market Offering Program | Common Units | |||
Limited Partners' Capital Account [Line Items] | |||
Number of common units issued in public offering (in shares) | 744,968 | ||
Proceeds from public offering, net of underwriting discounts | $ 40,000,000 | ||
Broker commission paid | $ 1,000,000 | ||
Maximum | At The Market Offering Program | Common Units | |||
Limited Partners' Capital Account [Line Items] | |||
Maximum aggregate amount of continuous units issuance authorized | $ 250,000,000 | ||
Phillips 66 Partners LP | At The Market Offering Program | Common Units | |||
Limited Partners' Capital Account [Line Items] | |||
Number of common units issued in public offering (in shares) | 1,091,120 | ||
Proceeds from public offering, net of underwriting discounts | $ 58,000,000 |
Net Income Per Limited Partne38
Net Income Per Limited Partner Unit Net Income Per Limited Partner Unit (Schedule of Earnings Per unit of our Limited Partners) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Limited Partners' Capital Account [Line Items] | |||
Net income attributable to the Partnership | $ 97 | $ 52 | [1] |
Distribution declared | 95 | 56 | |
Distributions less than (in excess of) net income attributable to the Partnership | 2 | (4) | |
General Partner | |||
Limited Partners' Capital Account [Line Items] | |||
Net income attributable to the Partnership | 32 | 16 | |
Distribution declared | 32 | 16 | |
Distributions less than (in excess of) net income attributable to the Partnership | 0 | 0 | |
Common Units | Limited Partner | |||
Limited Partners' Capital Account [Line Items] | |||
Net income attributable to the Partnership | 65 | 36 | |
Distribution declared | 63 | 40 | |
Distributions less than (in excess of) net income attributable to the Partnership | $ 2 | $ (4) | |
[1] | Prior-period financial information has been retrospectively adjusted for acquisitions of businesses under common control. |
Net Income Per Limited Partne39
Net Income Per Limited Partner Unit (Schedule of Net Income By Class of Participating Securities) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Partners' Capital [Abstract] | |||
Distribution declared | $ 95 | $ 56 | |
Distributions less than (in excess of) net income attributable to the Partnership | 2 | (4) | |
Net income attributable to the Partnership | $ 97 | $ 52 | [1] |
Weighted average units outstanding, general partner, basic (in shares) | 2,187,386 | 1,686,295 | |
Weighted average units outstanding, basic (in shares) | 109,587,423 | 84,314,719 | |
Weighted average units outstanding, general partner, diluted (in shares) | 2,187,386 | 1,686,295 | |
Weighted average units outstanding, diluted (in shares) | 109,587,423 | 84,314,719 | |
Common Units | |||
Partners' Capital [Abstract] | |||
Weighted average units outstanding, limited partner, basic (in shares) | 107,400,037 | 82,628,424 | |
Weighted average units outstanding, limited partner, diluted (in shares) | 107,400,037 | 82,628,424 | |
Net income per limited partner unit, basic (dollars) (in usd per share) | $ 0.60 | $ 0.44 | |
Net income per limited partner unit, diluted (dollars) (in usd per share) | $ 0.60 | $ 0.44 | |
General Partner | |||
Partners' Capital [Abstract] | |||
Distribution declared | $ 32 | $ 16 | |
Distributions less than (in excess of) net income attributable to the Partnership | 0 | 0 | |
Net income attributable to the Partnership | 32 | 16 | |
Limited Partner | Common Units | |||
Partners' Capital [Abstract] | |||
Distribution declared | 63 | 40 | |
Distributions less than (in excess of) net income attributable to the Partnership | 2 | (4) | |
Net income attributable to the Partnership | $ 65 | $ 36 | |
[1] | Prior-period financial information has been retrospectively adjusted for acquisitions of businesses under common control. |
Net Income Per Limited Partne40
Net Income Per Limited Partner Unit (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | Apr. 19, 2017 | Mar. 31, 2017 | Mar. 31, 2016 |
Subsequent Events [Abstract] | |||
Total distributions attributable to the first quarter of 2017 | $ 88 | $ 51 | |
Cash Distribution | Subsequent Event | |||
Subsequent Events [Abstract] | |||
Total distributions attributable to the first quarter of 2017 | $ 95 | ||
Common Units | Cash Distribution | Subsequent Event | |||
Subsequent Events [Abstract] | |||
Quarterly cash distribution declared per limited partner unit (in dollars per share) | $ 0.586 |
Contingencies (Narrative) (Deta
Contingencies (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Accrual for Environmental Loss Contingencies Disclosure [Abstract] | ||
Environmental accruals | $ 2 | $ 2 |
Cash Flow Information (Narrativ
Cash Flow Information (Narrative) (Details) - Sweeny Fractionator Acquisition - Phillips 66 - Phillips 66 - USD ($) $ in Millions | Mar. 01, 2016 | Mar. 31, 2016 |
Business Acquisition [Line Items] | ||
Controlling interest acquired, percentage | 25.00% | 25.00% |
Historical carrying value of assets transferred | $ 283 | |
Portion of historical book value of net assets acquired attributable to the note payable assumed | 212 | |
Common Partner And General Partner | ||
Business Acquisition [Line Items] | ||
Portion of historical book value of net assets acquired attributed to units issued | $ 71 |
Cash Flow Information (Summary
Cash Flow Information (Summary of Cash Flow Information) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Capital Expenditures And Investments [Abstract] | |||
Cash capital expenditures and investments | $ 57 | $ 97 | [1] |
Change in capital expenditure accruals | (4) | (33) | |
Capital expenditures and investments attributable to the Partnership | 53 | 33 | |
Capital expenditures attributable to Predecessors | 0 | 31 | |
Total capital expenditures and investments | 53 | 64 | |
Other Noncash Investing and Financing Activities | |||
Certain liabilities of acquired assets retained by Phillips 66(1) | $ 0 | $ 34 | |
[1] | Prior-period financial information has been retrospectively adjusted for acquisitions of businesses under common control. |
Related Parties Transactions (S
Related Parties Transactions (Summary of Related Party Transactions) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | [1] | |
Related Party Transactions [Abstract] | |||
Operating and maintenance expenses | $ 28 | $ 25 | |
General and administrative expenses | 15 | 14 | |
Interest and debt expense | 0 | 1 | |
Total | $ 43 | $ 40 | |
[1] | Prior-period financial information has been retrospectively adjusted for acquisitions of businesses under common control. |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Phillips 66 | Amended Omnibus Agreement | Phillips 66 | |
Related party agreements and fees | |
Monthly operational and administrative support fee | $ 7 |