Phillips 66 Partners (PSXP) 10-Q 27 Apr 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	3 Months Ended
	Mar. 31, 2018shares
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, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding	121,760,774

Consolidated Statement of Incom

Consolidated Statement of Income - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenues and Other Income
Operating revenues—related parties	$ 249	$ 210	[1]
Operating revenues—third parties	7	10	[1]
Equity in earnings of affiliates	98	33	[1]
Other income	1	9	[1]
Total revenues and other income	355	262	[1]
Costs and Expenses
Operating and maintenance expenses	97	74	[1]
Depreciation	28	28	[1]
General and administrative expenses	16	17	[1]
Taxes other than income taxes	10	9	[1]
Interest and debt expense	30	24	[1]
Total costs and expenses	181	152	[1]
Income before income taxes	174	110	[1]
Income tax expense	2	0	[1]
Net Income	172	110	[1]
Less: Net income attributable to Predecessors	0	13	[1]
Net income attributable to the Partnership	172	97	[1]
Less: Preferred unitholders’ interest in net income attributable to the Partnership	9	0	[1]
Less: General partner’s interest in net income attributable to the Partnership	53	32	[1]
Limited partners’ interest in net income attributable to the Partnership	$ 110	$ 65	[1]
Net Income Attributable to the Partnership Per Limited Partner Unit
Cash Distributions Paid Per Limited Partner Unit (in dollars per share)	$ 0.678	$ 0.558	[1]
Common Units
Net Income Attributable to the Partnership Per Limited Partner Unit
Common units—basic (in dollars per share)	0.91	0.60	[1]
Common units—diluted (in dollars per share)	$ 0.87	$ 0.60	[1]
Weighted-Average Limited Partner Units Outstanding
Common units—basic (in shares)	121,609,520	107,400,000	[1]
Common units—diluted (in shares)	135,429,000	107,400,000	[1]
Common Units | Public
Costs and Expenses
Net income attributable to the Partnership	$ 48	$ 26
[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, 2018	Mar. 31, 2017	[1]
Statement of Comprehensive Income [Abstract]
Net Income	$ 172	$ 110
Defined benefit plans
Plan sponsored by equity affiliate, net of tax	0	0
Other comprehensive income	0	0
Comprehensive Income	$ 172	$ 110
[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, 2018	Dec. 31, 2017
Assets
Cash and cash equivalents	$ 167	$ 185
Accounts receivable—related parties	88	83
Accounts receivable—third parties	3	3
Materials and supplies	13	12
Prepaid expenses and other current assets	12	9
Total current assets	283	292
Equity investments	1,986	1,932
Net properties, plants and equipment	2,925	2,918
Goodwill	185	185
Deferred rentals and other assets	7	7
Total Assets	5,386	5,334
Liabilities
Accounts payable—related parties	20	21
Accounts payable—third parties	30	39
Accrued property and other taxes	18	15
Accrued interest	32	34
Short-term debt	25	25
Deferred revenues	60	35
Other current liabilities	1	2
Total current liabilities	186	171
Long-term debt	2,921	2,920
Asset retirement obligations and accrued environmental costs	11	11
Deferred income taxes	6	5
Deferred revenues and other liabilities	28	66
Total Liabilities	3,152	3,173
Equity
General partner—Phillips 66 (2018 and 2017—2,480,051 units issued and outstanding)	(1,338)	(1,345)
Accumulated other comprehensive loss	(1)	(1)
Total Equity	2,234	2,161
Total Liabilities and Equity	5,386	5,334
Non-public | Common Units | Phillips 66
Equity
Unitholders	519	487
Total Equity	519	487
Public
Equity
Preferred unitholders (2018 and 2017—13,819,791 units issued and outstanding)	746	746
Public | Common Units
Equity
Unitholders	2,308	2,274
Total Equity	$ 2,308	$ 2,274

Consolidated Balance Sheet (Par

Consolidated Balance Sheet (Parenthetical) - shares	Mar. 31, 2018	Dec. 31, 2017
General partner—Phillips 66 units issued (in shares)	2,480,051	2,480,051
General partner—Phillips 66 units outstanding (in shares)	2,480,051	2,480,051
Public
Preferred units, issued (in shares)	13,819,791	13,819,791
Preferred units, outstanding (in shares)	13,819,791	13,819,791
Common Units | Public
Units issued (in shares)	53,000,637	52,811,822
Units outstanding (in shares)	53,000,637	52,811,822
Common Units | Non-public | Phillips 66
Units issued (in shares)	68,760,137	68,760,137
Units outstanding (in shares)	68,760,137	68,760,137

Consolidated Statement of Cash

Consolidated Statement of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash Flows From Operating Activities
Net Income	$ 172	$ 110	[1]
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation	28	28	[1]
Undistributed equity earnings	(8)	(4)	[1]
Deferred revenues and other liabilities	(38)	0	[1]
Other	0	2	[1]
Working capital adjustments
Decrease (increase) in accounts receivable	(5)	10	[1]
Decrease (increase) in materials and supplies	0	(1)	[1]
Decrease (increase) in prepaid expenses and other current assets	(3)	2	[1]
Increase (decrease) in accounts payable	(4)	(2)	[1]
Increase (decrease) in accrued interest	(2)	4	[1]
Increase (decrease) in deferred revenues	29	4	[1]
Increase (decrease) in other accruals	2	2	[1]
Net Cash Provided by Operating Activities	171	155	[1]
Cash Flows From Investing Activities
Restricted cash received from combination of business	0	318	[1]
Collection of loan receivable	0	3	[1]
Cash capital expenditures and investments	(74)	(62)	[1]
Return of investment from equity affiliates	14	8	[1]
Net Cash Provided by (Used in) Investing Activities	(60)	267	[1]
Cash Flows From Financing Activities
Net contributions to Phillips 66 from Predecessors	0	(209)	[1]
Issuance of debt	0	712	[1]
Repayment of debt	0	(765)	[1]
Issuance of common units	9	40	[1]
Other cash contributions from Phillips 66	0	10	[1]
Net Cash Used in Financing Activities	(129)	(300)	[1]
Net Change in Cash, Cash Equivalents and Restricted Cash	(18)	122	[1]
Cash, cash equivalents and restricted cash at beginning of period	185	2	[1]
Cash, Cash Equivalents and Restricted Cash at End of Period	167	124	[1]
Public | Preferred Units
Cash Flows From Financing Activities
Quarterly distributions to unitholders	(9)	0	[1]
Public | Common Units
Cash Flows From Financing Activities
Quarterly distributions to unitholders	(36)	(24)	[1]
Non-public | Common Units
Cash Flows From Financing Activities
Quarterly distributions to unitholders		(36)
General Partner
Cash Flows From Financing Activities
Quarterly distributions to unitholders	(47)	(28)	[1]
Phillips 66 | Non-public | Common Units
Cash Flows From Financing Activities
Quarterly distributions to unitholders	$ (46)	$ (36)	[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		General Partner	Preferred UnitsPublic	Common UnitsPublic	Common UnitsNon-publicPhillips 66	Accum. Other Comprehensive Loss	Net Investment— Predecessors
Beginning Balance at Dec. 31, 2016		$ 1,566		$ (704)	$ 0	$ 1,795	$ 476	$ (1)	$ 0	[1]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income attributable to Predecessors	[1]	13							13
Net contributions from Phillips 66—Predecessors		691							691	[1]
Issuance of common units		40				40
Net income attributable to the Partnership		97	[1]	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]	$ 2,332		$ (687)	0	$ 1,837	$ 479	(1)	704
Beginning balance, 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
Ending balance, Units (in shares) at Mar. 31, 2017		110,114,280		2,187,386		43,879,870	64,047,024
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of accounting change		$ 30		$ 1		$ 13	$ 16
Beginning Balance at Dec. 31, 2017		2,161		(1,345)	746	2,274	487	(1)	0	[1]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income attributable to Predecessors		0
Issuance of common units		9				9
Net income attributable to the Partnership		172		53	9	48	62
Quarterly cash distributions to unitholders and General Partner		(138)		(47)	(9)	(36)	(46)
Ending Balance at Mar. 31, 2018		$ 2,234		$ (1,338)	$ 746	$ 2,308	$ 519	$ (1)	$ 0
Beginning balance, Units (in shares) at Dec. 31, 2017		137,871,801		2,480,051	13,819,791	52,811,822	68,760,137
Units Outstanding [Roll Forward]
Units issued in public equity offerings (in shares)		188,815				188,815
Ending balance, Units (in shares) at Mar. 31, 2018		138,060,616		2,480,051	13,819,791	53,000,637	68,760,137
[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, 2018
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 and wholly owns our General Partner. 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 midstream assets. Our common units trade on the New York Stock Exchange under the symbol PSXP. Our operations consist of crude oil, refined petroleum products and NGL transportation, processing, terminaling and storage assets. We conduct our operations through both wholly owned and joint-venture operations. The majority of our wholly owned assets are associated with, and are integral to the operation of, nine of Phillips 66’s owned or joint-venture refineries. We primarily generate revenue by providing fee-based transportation, terminaling, processing, storage and NGL fractionation services to Phillips 66 and other customers. Our equity affiliates primarily generate revenue 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 the 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 occurred within the Phillips 66 consolidated group. The consolidated statement of income also includes expense allocations for certain functions performed by Phillips 66, including operational support services such as engineering and logistics and allocations of general corporate expenses related to executive oversight, accounting, treasury, tax, legal, information technology and procurement. These allocations were based primarily on the relative carrying values of properties, plants and equipment 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, 2018
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 2017 Annual Report on Form 10-K. The results of operations for the three months ended March 31, 2018 , 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, 2018
Changes in Accounting Principles [Abstract]
Changes in Accounting Principles	Changes in Accounting Principles Effective January 1, 2018, we adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2017-01, “Business Combinations (Topic 805): 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 screen is met and the transaction is not considered an acquisition of a business. If the screen is not met, 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. At the time of adoption, this ASU had no impact on our consolidated financial statements. Effective January 1, 2018, we adopted ASU No. 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” The majority of this ASU’s provisions amend only the presentation or disclosures of financial instruments; however, one provision can affect net income. Equity investments reported under the cost method or the lower of cost or fair value method of accounting, in accordance with previous U.S. generally accepted accounting principles (GAAP), are now reported at fair value with changes in fair value recognized in net income. For equity investments that do not have readily determinable fair values, we elected 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. At the time of adoption, this ASU had no material impact on our consolidated financial statements. Effective January 1, 2018, we adopted ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” Under the new revenue recognition guidance, recognition of revenue involves a multiple step approach including: (i) identifying the contract with the customer, (ii) identifying the separate performance obligations, (iii) determining the transaction price, (iv) allocating the transaction price to the performance obligations and (v) recognizing the revenue as the performance obligations are satisfied. Additional disclosures are required to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. We and all but one of our equity-method investees adopted ASU No. 2014-09 as of January 1, 2018, using the modified retrospective transition method. The remaining equity method investee will adopt this ASU in 2019. Under the modified retrospective transition method applied to all contracts, a noncash cumulative effect adjustment of $30 million was recorded as an increase to the opening balance of our equity on January 1, 2018, which mainly reflected adjustments recorded by our equity-method investees related to the acceleration of revenue recognition on certain minimum volume commitment contracts with recovery provisions. Certain agreements for transportation, terminaling and fractionation services with Phillips 66 are considered operating leases under Accounting Standards Codification (ASC) 840, “Leases.” We identified the separate lease and service elements of our revenue under these operating leases and applied ASU No. 2014-09 only to the service element, while the lease element continued to be accounted for under A SC 840 . See Note 9— Operating Revenues , for additional information.

Acquisitions

Acquisitions	3 Months Ended
	Mar. 31, 2018
Retrospective Adjustments For Common Control Transactions [Abstract]
Acquisitions	Acquisitions Bakken Pipeline/MSLP Acquisition In September 2017, we entered into a Contribution, Conveyance and Assumption Agreement with subsidiaries of Phillips 66 to acquire a 25 percent interest in each of Dakota Access, LLC and Energy Transfer Crude Oil Company, LLC (together, the Bakken Pipeline) and a 100 percent interest in Merey Sweeny, L.P. (MSLP). Collectively, the assets acquired in the acquisition are referred to as the Bakken Pipeline/MSLP Acquisition. We paid Phillips 66 total consideration of $1.65 billion , consisting of $372 million in cash, the assumption of $588 million of promissory notes payable to Phillips 66 and a $450 million term loan under which Phillips 66 was the obligor, and the issuance of 4,713,113 common units to Phillips 66 PDI and 292,665 general partner units to our General Partner to maintain its 2 percent general partner interest. The Bakken Pipeline/MSLP Acquisition closed in October 2017. In connection with the Bakken Pipeline/MSLP Acquisition, we entered into commercial agreements with Phillips 66 and amended the omnibus and operational services agreements with Phillips 66. See Note 13— Related Party Transactions for additional information on our commercial and other agreements with Phillips 66. Pursuant to the tolling services agreement entered into with Phillips 66 and related to MSLP operations, we received $ 53 million from Phillips 66 for the prepayment of services related to MSLP’s next scheduled maintenance turnaround, which was recorded as deferred revenue in our consolidated balance sheet as of the acquisition date. Common Control Transactions The Bakken Pipeline/MSLP Acquisition was considered a transfer of businesses between entities under common control, and therefore the related acquired assets were transferred at historical carrying value. The aggregate net book value of the underlying acquired assets in the Bakken Pipeline/MSLP Acquisition, at the time of acquisition, was $729 million . Because the Bakken Pipeline/MSLP Acquisition was a common control transaction in which we acquired a business, our historical financial statements were retrospectively adjusted to reflect the results of operations, financial position, and cash flows of the acquired assets as if we owned the acquired assets for the period from February 1, 2017, through October 5, 2017. For periods prior to February 1, 2017, both the Bakken Pipeline and MSLP investments were accounted for under the equity method of accounting by Phillips 66 and, thus, were not subject to retrospective adjustments. The following tables present our results of operations and cash flows giving effect to the Bakken Pipeline/MSLP Acquisition. The second column in both tables presents the retrospective adjustments made to our historical financial information for the acquired assets prior to the effective date of the acquisition. The third column in both tables presents our consolidated financial information as retrospectively adjusted. Millions of Dollars Three Months Ended March 31, 2017 Consolidated Statement of Income Phillips 66 Acquired Bakken Pipeline/MSLP Predecessor Consolidated Revenues and Other Income Operating revenues—related parties $ 184 26 210 Operating revenues—third parties 10 — 10 Equity in earnings of affiliates 33 — 33 Other income 7 2 9 Total revenues and other income 234 28 262 Costs and Expenses Operating and maintenance expenses 62 12 74 Depreciation 26 2 28 General and administrative expenses 16 1 17 Taxes other than income taxes 9 — 9 Interest and debt expense 24 — 24 Total costs and expenses 137 15 152 Income before income taxes 97 13 110 Income tax expense — — — Net income 97 13 110 Less: Net income attributable to Predecessors — 13 13 Net income attributable to the Partnership 97 — 97 Less: General partner’s interest in net income attributable to the Partnership 32 — 32 Limited partners’ interest in net income attributable to the Partnership $ 65 — 65 Millions of Dollars Three Months Ended March 31, 2017 Phillips 66 Acquired Bakken Pipeline/MSLP Predecessor Consolidated Cash Flows From Operating Activities Net income $ 97 13 110 Adjustments to reconcile net income to net cash provided by operating activities Depreciation 26 2 28 Undistributed equity earnings (4 ) — (4 ) Other 3 (1 ) 2 Working capital adjustments Decrease (increase) in accounts receivable 10 — 10 Decrease (increase) in materials and supplies (1 ) — (1 ) Decrease (increase) in prepaid expenses and other current assets 1 1 2 Increase (decrease) in accounts payable (1 ) (1 ) (2 ) Increase (decrease) in accrued interest 2 2 4 Increase (decrease) in deferred revenues 4 — 4 Increase (decrease) in other accruals 2 — 2 Net Cash Provided by Operating Activities 139 16 155 Cash Flows From Investing Activities Restricted cash received from combination of business — 318 318 Collection of loan receivable — 3 3 Cash capital expenditures and investments (57 ) (5 ) (62 ) Return of investment from equity affiliates 8 — 8 Net Cash Provided by (Used in) Investing Activities (49 ) 316 267 Cash Flows From Financing Activities Net contributions to Phillips 66 from Predecessors — (209 ) (209 ) Issuance of debt 712 — 712 Repayment of debt (765 ) — (765 ) Issuance of common units 40 — 40 Quarterly distributions to common unitholders—public (24 ) — (24 ) Quarterly distributions to common unitholder—Phillips 66 (36 ) — (36 ) Quarterly distributions to General Partner—Phillips 66 (28 ) — (28 ) Other cash contributions from Phillips 66 10 — 10 Net Cash Used in Financing Activities (91 ) (209 ) (300 ) Net Change in Cash, Cash Equivalents and Restricted Cash (1 ) 123 122 Cash, cash equivalents and restricted cash at beginning of period 2 — 2 Cash, Cash Equivalents and Restricted Cash at End of Period $ 1 123 124

Equity Investments

Equity Investments	3 Months Ended
	Mar. 31, 2018
Equity Method Investments and Joint Ventures [Abstract]
Equity Investments	Equity Investments The following table summarizes the carrying value of our equity investments. Millions of Dollars Percentage Ownership March 31 December 31 Bakken Pipeline 25.00 % $ 612 621 Bayou Bridge Pipeline, LLC (Bayou Bridge) 40.00 181 173 DCP Sand Hills Pipeline, LLC (Sand Hills) 33.34 537 515 DCP Southern Hills Pipeline, LLC (Southern Hills) 33.34 209 209 Explorer Pipeline Company (Explorer) 21.94 124 118 Paradigm Pipeline LLC (Paradigm) 50.00 138 131 Phillips 66 Partners Terminal LLC (Phillips 66 Partners Terminal) 70.00 72 53 STACK Pipeline LLC (STACK) 50.00 113 112 Total equity investments $ 1,986 1,932 Earnings (losses) from our equity investments were as follows: Millions of Dollars Three Months Ended 2018 2017 Bakken Pipeline $ 32 — Bayou Bridge 5 2 Explorer 16 5 Paradigm 2 (1 ) Phillips 66 Partners Terminal 9 2 Sand Hills 25 17 Southern Hills 7 7 STACK 2 1 Total equity in earnings of affiliates $ 98 33

Properties, Plants and Equipmen

Properties, Plants and Equipment	3 Months Ended
	Mar. 31, 2018
Property, Plant and Equipment [Abstract]
Properties, Plants and Equipment	Properties, Plants and Equipment Our investment in properties, plants and equipment (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 * 1,377 1,372 Terminals and related assets * 683 671 Rail racks and related assets * 137 137 Processing and related assets * 840 837 Caverns and related assets * 584 583 Construction-in-progress 61 47 Gross PP&E 3,789 3,754 Less: Accumulated depreciation 864 836 Net PP&E $ 2,925 2,918 *Assets for which we are the lessor.

Debt

Debt	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Debt	Debt Millions of Dollars March 31 2018 December 31 2.646% Senior Notes due 2020 $ 300 300 3.605% Senior Notes due 2025 500 500 3.550% Senior Notes due 2026 500 500 3.750% Senior Notes due 2028 500 500 4.680% Senior Notes due 2045 450 450 4.900% Senior Notes due 2046 625 625 Tax-exempt bonds at 1.92% and 1.94% at March 31, 2018, and December 31, 2017, respectively 100 100 Total 2,975 2,975 Net unamortized discounts and debt issuance costs (29 ) (30 ) Total debt 2,946 2,945 Less: Short-term debt 25 25 Long-term debt $ 2,921 2,920 The fair value of our fixed-rate and floating-rate debt is estimated based on observable market prices and is classified in level 2 of the fair value hierarchy. The fair value of our fixed-rate debt amounted to $2,815 million and $2,918 million at March 31, 2018, and December 31, 2017, respectively. The fair value of our floating-rate debt approximated carrying value of $100 million at both March 31, 2018, and December 31, 2017.

Equity

Equity	3 Months Ended
	Mar. 31, 2018
Equity [Abstract]
Equity	Equity ATM Programs We have two continuous offering, or at-the-market, programs (ATM Programs) under which we may offer up to an aggregate of $500 million of common units. For the three months ended March 31, 2018 , on a settlement date basis, we issued an aggregate of 188,815 common units under our ATM Programs, generating net proceeds of $9 million . For the three months ended March 31, 2017 , on a settlement date basis, we issued an aggregate of 744,968 common units under our ATM Programs, generating net proceeds of $40 million . Since inception through March 31, 2018 , we have issued an aggregate of 3,907,683 common units under our ATM Programs, generating net proceeds of $201 million . The net proceeds from sales under the ATM Programs are used for general partnership purposes, which may include debt repayment, acquisitions, capital expenditures and additions to working capital.

Operating Revenues

Operating Revenues	3 Months Ended
	Mar. 31, 2018
Revenue from Contract with Customer [Abstract]
Operating Revenues	Operating Revenues Revenues are primarily recognized for pipeline transportation, terminaling, storage, processing and fractionation services generated under long-term agreements. A significant portion of our revenues are derived from Phillips 66. The majority of our agreements for transportation, terminaling, storage, processing and fractionation services with Phillips 66 are considered operating leases under GAAP. As part of our adoption of ASU No. 2014-09, we applied the new revenue recognition standard only to the service element of these operating leases. The separation of the lease and service elements was based on an analysis of service-related and lease-related costs for each contract, adjusted for representative profit margins. The lease element continues to be accounted for under lease accounting standards. Revenues from fixed minimum volume commitments are recognized over the performance obligation period for stand-ready service contracts. Revenues from the variable element of these stand-ready contracts and other contracts without fixed elements are recognized based on the actual volumes transported, stored, processed and fractionated at contractual rates because the actual volumes specifically relate to our efforts to transfer the distinct services. Generally, our services are billed and payments are received on a monthly basis. Total operating revenues disaggregated by type of service were as follows: Millions of Dollars Three Months Ended March 31, 2018 Pipelines $ 102 Terminals 39 Storage, processing and other revenues 115 Total operating revenues $ 256 During the three months ended March 31, 2018, lease revenues were $144 million and service revenues were $112 million . Lease and service revenues were recorded in the “Operating revenues—related parties” and “Operating revenues—third parties” lines on our consolidated statement of income. At March 31, 2018, and January 1, 2018, lease receivables were $53 million and $49 million , respectively, and service receivables were $38 million and $37 million , respectively. Our contract liabilities primarily represent payments from our customers, mainly Phillips 66, for volume throughput less than the contractually required minimum throughput volumes. These deficiency payments are deferred and recognized at the earlier of the period in which our customers make up the shortfall volumes or when it is probable our customers will not make up the shortfall volumes prior to the expiration of the contractual make-up period. Our contract liabilities are included in the “Deferred revenues” and “Deferred revenues and other liabilities” lines on our consolidated balance sheet. At March 31, 2018, and January 1, 2018, total deferred revenues were $84 million and $93 million , respectively, of which $14 million and $13 million , respectively, are contract liabilities related to the service element. Service-related revenues recognized during the three months ended March 31, 2018, that were included in the contract liability balance at January 1, 2018, was $4 million . For the three months ended March 31, 2018, there were no material differences between the amount that we recognized as revenues relating to minimum throughput deficiency payments compared to the amount that would have been recognized prior to the adoption of the new revenue recognition standard. All of our contracts with customers are long-term agreements, with original durations of up to 15 years. As of March 31, 2018, we had $4.4 billion in remaining performance obligations related to minimum volume commitments on certain pipelines and terminals with fixed pricing, of which $4.1 billion pertained to lease agreements. The average remaining duration of these contracts is seven years. Pursuant to these agreements, we expect to recognize lease and service revenues of $487 million over the remainder of 2018, $572 million in 2019, $568 million in 2020, $557 million in 2021, $546 million in 2022, and the remaining balance thereafter. For our remaining performance obligations disclosures, we applied the exemption for variable prices allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer distinct goods or service as part of a performance obligation.

Net Income Per Limited Partner

Net Income Per Limited Partner Unit	3 Months Ended
	Mar. 31, 2018
Partners' Capital Notes [Abstract]
Net Income Per Limited Partner Unit	Net Income Per Limited Partner Unit Net income per limited partner unit applicable to common units 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. Because we have more than one class of participating securities, we use the two-class method to calculate the net income per unit applicable to the limited partners. As of March 31, 2018, the classes of participating securities included common units, general partner units and incentive distribution rights (IDRs). For the three months ended March 31, 2018, our preferred units are potentially dilutive securities and were dilutive to net income per limited partner unit. For the three months ended March 31, 2017, basic and diluted net income per limited partner unit are the same because we did not have potentially dilutive common units 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, after giving effect to priority income allocations to the holders of the preferred units. First, earnings are allocated based on actual cash distributions declared 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. For the diluted net income per limited partner unit calculation, the preferred units are assumed to be converted at the beginning of the period into common limited partner units on a one-for-one basis, and the distribution formula for available cash in our partnership agreement is recalculated, using the original available cash amount increased only for the preferred distributions which would not have been paid after conversion. 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 a dropdown transaction. 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 2018 2017 Net income attributable to the Partnership $ 172 97 Less: General partner’s distribution declared (including IDRs)* 51 32 Limited partners’ distributions declared on preferred units* 9 — Limited partners’ distribution declared on common units* 88 63 Distributions less than net income attributable to the Partnership $ 24 2 *Distribution declared attributable to the indicated periods. Limited Partners’ Common Units General Partner (including IDRs) Limited Partners’ Preferred Units Total Three Months Ended March 31, 2018 Net income attributable to the Partnership (millions) : Distribution declared $ 88 51 9 148 Distributions less than net income attributable to the Partnership 22 2 — 24 Net income attributable to the Partnership (basic) 110 53 9 172 Dilutive effect of preferred units* 7 Net income attributable to the Partnership (diluted) $ 117 Weighted-average units outstanding—basic 121,609,520 Dilutive effect of preferred units* 13,819,791 Weighted-average units outstanding—diluted 135,429,311 Net income attributable to the Partnership per limited partner unit—basic ( dollars) $ 0.91 Net income attributable to the Partnership per limited partner unit—diluted (dollars) 0.87 * The dilutive effect of preferred units assumes the reallocation of net income to the limited and general partners, including a reallocation associated with IDRs, pursuant to the available cash formula in the partnership agreement. Limited Partners’ Common Units General Partner (including IDRs) Total Three Months Ended March 31, 2017 Net income attributable to the Partnership (millions) : Distribution declared $ 63 32 95 Distributions less than net income attributable to the Partnership 2 — 2 Net income attributable to the Partnership $ 65 32 97 Weighted-average units outstanding—basic and diluted 107,400,037 Net income attributable to the Partnership per limited partner unit—basic and dilutive (dollars) $ 0.60 On April 18, 2018 , the Board of Directors of our General Partner declared a quarterly cash distribution of $0.714 per common unit attributable to the first quarter of 2018 . This distribution is payable May 14, 2018 , to unitholders of record as of April 30, 2018 .

Contingencies

Contingencies	3 Months Ended
	Mar. 31, 2018
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. 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, 2018 , and December 31, 2017 , 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, dollar limits and deductibles. When Phillips 66 performs under any of these indemnifications or exclusions from liability, we recognize non-cash expenses and associated non-cash capital contributions from our General Partner, as these are considered liabilities paid for by a principal unitholder.

Cash Flow Information

Cash Flow Information	3 Months Ended
	Mar. 31, 2018
Supplemental Cash Flow Information [Abstract]
Cash Flow Information	Cash Flow Information Capital Expenditures and Investments Our capital expenditures and investments consisted of: Millions of Dollars Three Months Ended 2018 2017* Cash capital expenditures and investments $ 74 62 Change in capital expenditure accruals (5 ) (4 ) Total capital expenditures and investments $ 69 58 *Prior-period financial information has been retrospectively adjusted for acquisitions of businesses under common control. Millions of Dollars Three Months Ended 2018 2017 Capital expenditures and investments attributable to the Partnership $ 69 53 Capital expenditures and investments attributable to Predecessors* — 5 Total capital expenditures and investments* $ 69 58 *Prior-period financial information has been retrospectively adjusted for acquisitions of businesses under common control. Restricted Cash At March 31, 2018 , and December 31, 2017, the Partnership did not have any restricted cash. The restrictions on the cash received in February 2017, as a result of the retrospective adjustment for the Bakken Pipeline/MSLP Acquisition, were fully removed in the second quarter of 2017 when MSLP’s outstanding debt that contained lender restrictions on the use of cash was paid in full.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2018
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, a tolling services agreement, and rail terminal services agreements. Under these long-term, fee-based agreements, we provide transportation, terminaling, storage, stevedoring, fractionation, processing, and rail terminal services to Phillips 66, and Phillips 66 commits to provide us with minimum volume commitments of crude oil, NGL, feedstock, and refined petroleum products or minimum monthly service fees. Under our transportation, processing, and terminaling services agreements, if Phillips 66 fails to transport, throughput or store its minimum throughput volume, then Phillips 66 will pay us a deficiency payment based on the calculation described in the agreement. Amended and Restated Operational Services Agreement Under our amended and restated operational services agreement, we reimburse Phillips 66 for providing certain operational services to us in support of our pipelines, terminaling, processing, 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 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 Under our tax sharing agreement, we 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. Any reimbursement is 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; however, 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 our total costs and expenses were: Millions of Dollars Three Months Ended 2018 2017* Operating and maintenance expenses $ 65 40 General and administrative expenses 15 16 Total $ 80 56 *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 $8 million . The operational and administrative support fee is for the provision of certain services, including: logistical services; asset oversight, such as operational management and supervision; corporate engineering services, including asset integrity and regulatory services; business development services; 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; 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 performed for our operations. Under our amended and restated operational services agreement, we reimburse Phillips 66 for the provision of certain operational services to us in support of our pipeline, rail rack, processing, terminaling, and storage facilities. Additionally, we pay Phillips 66 for insurance services provided to us. Operating and maintenance expenses also include volumetric gains and losses associated with volumes transported by Phillips 66. Other related party balances in our consolidated balance sheet consisted of the following, all of which were related to Phillips 66: Millions of Dollars March 31 December 31 Deferred rentals and other assets $ 5 5 Deferred revenues 58 33 Deferred revenues and other liabilities 22 61

New Accounting Standards

New Accounting Standards	3 Months Ended
	Mar. 31, 2018
New Accounting Standards [Abstract]
New Accounting Standards	New Accounting Standards In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will continue to be classified as either financing or operating, with classification affecting the pattern of expense recognition in the income statement. Similarly, lessors will be required to classify leases as sales-type, financing or operating, with classification affecting the pattern of income recognition in the income statement. Classification for both lessees and lessors will be based on an assessment of whether risks and rewards as well as substantive control have been transferred through a lease contract. 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 consolidated financial statements. As part of our assessment work-to-date, we have formed an implementation team, commenced identification of our lease population and selected a lease software package.

Business and Basis of Present22

Business and Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2018
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 the 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 occurred within the Phillips 66 consolidated group. The consolidated statement of income also includes expense allocations for certain functions performed by Phillips 66, including operational support services such as engineering and logistics and allocations of general corporate expenses related to executive oversight, accounting, treasury, tax, legal, information technology and procurement. These allocations were based primarily on the relative carrying values of properties, plants and equipment 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, 2018, we adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2017-01, “Business Combinations (Topic 805): 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 screen is met and the transaction is not considered an acquisition of a business. If the screen is not met, 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. At the time of adoption, this ASU had no impact on our consolidated financial statements. Effective January 1, 2018, we adopted ASU No. 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” The majority of this ASU’s provisions amend only the presentation or disclosures of financial instruments; however, one provision can affect net income. Equity investments reported under the cost method or the lower of cost or fair value method of accounting, in accordance with previous U.S. generally accepted accounting principles (GAAP), are now reported at fair value with changes in fair value recognized in net income. For equity investments that do not have readily determinable fair values, we elected 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. At the time of adoption, this ASU had no material impact on our consolidated financial statements. Effective January 1, 2018, we adopted ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” Under the new revenue recognition guidance, recognition of revenue involves a multiple step approach including: (i) identifying the contract with the customer, (ii) identifying the separate performance obligations, (iii) determining the transaction price, (iv) allocating the transaction price to the performance obligations and (v) recognizing the revenue as the performance obligations are satisfied. Additional disclosures are required to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. We and all but one of our equity-method investees adopted ASU No. 2014-09 as of January 1, 2018, using the modified retrospective transition method. The remaining equity method investee will adopt this ASU in 2019. Under the modified retrospective transition method applied to all contracts, a noncash cumulative effect adjustment of $30 million was recorded as an increase to the opening balance of our equity on January 1, 2018, which mainly reflected adjustments recorded by our equity-method investees related to the acceleration of revenue recognition on certain minimum volume commitment contracts with recovery provisions. Certain agreements for transportation, terminaling and fractionation services with Phillips 66 are considered operating leases under Accounting Standards Codification (ASC) 840, “Leases.” We identified the separate lease and service elements of our revenue under these operating leases and applied ASU No. 2014-09 only to the service element, while the lease element continued to be accounted for under A SC 840 . See Note 9— Operating Revenues , for additional information. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will continue to be classified as either financing or operating, with classification affecting the pattern of expense recognition in the income statement. Similarly, lessors will be required to classify leases as sales-type, financing or operating, with classification affecting the pattern of income recognition in the income statement. Classification for both lessees and lessors will be based on an assessment of whether risks and rewards as well as substantive control have been transferred through a lease contract. 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 consolidated financial statements. As part of our assessment work-to-date, we have formed an implementation team, commenced identification of our lease population and selected a lease software package.
Earnings Per Share	Net income per limited partner unit applicable to common units 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. Because we have more than one class of participating securities, we use the two-class method to calculate the net income per unit applicable to the limited partners. As of March 31, 2018, the classes of participating securities included common units, general partner units and incentive distribution rights (IDRs). For the three months ended March 31, 2018, our preferred units are potentially dilutive securities and were dilutive to net income per limited partner unit. For the three months ended March 31, 2017, basic and diluted net income per limited partner unit are the same because we did not have potentially dilutive common units outstanding.

Acquisitions (Tables)

Acquisitions (Tables)	3 Months Ended
	Mar. 31, 2018
Retrospective Adjustments For Common Control Transactions [Abstract]
Schedule of Results of Operations Giving Effect to Acquisitions	The following tables present our results of operations and cash flows giving effect to the Bakken Pipeline/MSLP Acquisition. The second column in both tables presents the retrospective adjustments made to our historical financial information for the acquired assets prior to the effective date of the acquisition. The third column in both tables presents our consolidated financial information as retrospectively adjusted. Millions of Dollars Three Months Ended March 31, 2017 Consolidated Statement of Income Phillips 66 Acquired Bakken Pipeline/MSLP Predecessor Consolidated Revenues and Other Income Operating revenues—related parties $ 184 26 210 Operating revenues—third parties 10 — 10 Equity in earnings of affiliates 33 — 33 Other income 7 2 9 Total revenues and other income 234 28 262 Costs and Expenses Operating and maintenance expenses 62 12 74 Depreciation 26 2 28 General and administrative expenses 16 1 17 Taxes other than income taxes 9 — 9 Interest and debt expense 24 — 24 Total costs and expenses 137 15 152 Income before income taxes 97 13 110 Income tax expense — — — Net income 97 13 110 Less: Net income attributable to Predecessors — 13 13 Net income attributable to the Partnership 97 — 97 Less: General partner’s interest in net income attributable to the Partnership 32 — 32 Limited partners’ interest in net income attributable to the Partnership $ 65 — 65 Millions of Dollars Three Months Ended March 31, 2017 Phillips 66 Acquired Bakken Pipeline/MSLP Predecessor Consolidated Cash Flows From Operating Activities Net income $ 97 13 110 Adjustments to reconcile net income to net cash provided by operating activities Depreciation 26 2 28 Undistributed equity earnings (4 ) — (4 ) Other 3 (1 ) 2 Working capital adjustments Decrease (increase) in accounts receivable 10 — 10 Decrease (increase) in materials and supplies (1 ) — (1 ) Decrease (increase) in prepaid expenses and other current assets 1 1 2 Increase (decrease) in accounts payable (1 ) (1 ) (2 ) Increase (decrease) in accrued interest 2 2 4 Increase (decrease) in deferred revenues 4 — 4 Increase (decrease) in other accruals 2 — 2 Net Cash Provided by Operating Activities 139 16 155 Cash Flows From Investing Activities Restricted cash received from combination of business — 318 318 Collection of loan receivable — 3 3 Cash capital expenditures and investments (57 ) (5 ) (62 ) Return of investment from equity affiliates 8 — 8 Net Cash Provided by (Used in) Investing Activities (49 ) 316 267 Cash Flows From Financing Activities Net contributions to Phillips 66 from Predecessors — (209 ) (209 ) Issuance of debt 712 — 712 Repayment of debt (765 ) — (765 ) Issuance of common units 40 — 40 Quarterly distributions to common unitholders—public (24 ) — (24 ) Quarterly distributions to common unitholder—Phillips 66 (36 ) — (36 ) Quarterly distributions to General Partner—Phillips 66 (28 ) — (28 ) Other cash contributions from Phillips 66 10 — 10 Net Cash Used in Financing Activities (91 ) (209 ) (300 ) Net Change in Cash, Cash Equivalents and Restricted Cash (1 ) 123 122 Cash, cash equivalents and restricted cash at beginning of period 2 — 2 Cash, Cash Equivalents and Restricted Cash at End of Period $ 1 123 124

Equity Investments (Tables)

Equity Investments (Tables)	3 Months Ended
	Mar. 31, 2018
Equity Method Investments and Joint Ventures [Abstract]
Schedule of Equity Investments	The following table summarizes the carrying value of our equity investments. Millions of Dollars Percentage Ownership March 31 December 31 Bakken Pipeline 25.00 % $ 612 621 Bayou Bridge Pipeline, LLC (Bayou Bridge) 40.00 181 173 DCP Sand Hills Pipeline, LLC (Sand Hills) 33.34 537 515 DCP Southern Hills Pipeline, LLC (Southern Hills) 33.34 209 209 Explorer Pipeline Company (Explorer) 21.94 124 118 Paradigm Pipeline LLC (Paradigm) 50.00 138 131 Phillips 66 Partners Terminal LLC (Phillips 66 Partners Terminal) 70.00 72 53 STACK Pipeline LLC (STACK) 50.00 113 112 Total equity investments $ 1,986 1,932 Earnings (losses) from our equity investments were as follows: Millions of Dollars Three Months Ended 2018 2017 Bakken Pipeline $ 32 — Bayou Bridge 5 2 Explorer 16 5 Paradigm 2 (1 ) Phillips 66 Partners Terminal 9 2 Sand Hills 25 17 Southern Hills 7 7 STACK 2 1 Total equity in earnings of affiliates $ 98 33

Properties, Plants and Equipm25

Properties, Plants and Equipment (Tables)	3 Months Ended
	Mar. 31, 2018
Property, Plant and Equipment [Abstract]
Summary of Property, Plant and Equipment	Our investment in properties, plants and equipment (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 * 1,377 1,372 Terminals and related assets * 683 671 Rail racks and related assets * 137 137 Processing and related assets * 840 837 Caverns and related assets * 584 583 Construction-in-progress 61 47 Gross PP&E 3,789 3,754 Less: Accumulated depreciation 864 836 Net PP&E $ 2,925 2,918 *Assets for which we are the lessor.

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Schedule of Debt	Millions of Dollars March 31 2018 December 31 2.646% Senior Notes due 2020 $ 300 300 3.605% Senior Notes due 2025 500 500 3.550% Senior Notes due 2026 500 500 3.750% Senior Notes due 2028 500 500 4.680% Senior Notes due 2045 450 450 4.900% Senior Notes due 2046 625 625 Tax-exempt bonds at 1.92% and 1.94% at March 31, 2018, and December 31, 2017, respectively 100 100 Total 2,975 2,975 Net unamortized discounts and debt issuance costs (29 ) (30 ) Total debt 2,946 2,945 Less: Short-term debt 25 25 Long-term debt $ 2,921 2,920

Operating Revenues (Tables)

Operating Revenues (Tables)	3 Months Ended
	Mar. 31, 2018
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	Total operating revenues disaggregated by type of service were as follows: Millions of Dollars Three Months Ended March 31, 2018 Pipelines $ 102 Terminals 39 Storage, processing and other revenues 115 Total operating revenues $ 256

Net Income Per Limited Partne28

Net Income Per Limited Partner Unit (Tables)	3 Months Ended
	Mar. 31, 2018
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 2018 2017 Net income attributable to the Partnership $ 172 97 Less: General partner’s distribution declared (including IDRs)* 51 32 Limited partners’ distributions declared on preferred units* 9 — Limited partners’ distribution declared on common units* 88 63 Distributions less than net income attributable to the Partnership $ 24 2 *Distribution declared attributable to the indicated periods. Limited Partners’ Common Units General Partner (including IDRs) Limited Partners’ Preferred Units Total Three Months Ended March 31, 2018 Net income attributable to the Partnership (millions) : Distribution declared $ 88 51 9 148 Distributions less than net income attributable to the Partnership 22 2 — 24 Net income attributable to the Partnership (basic) 110 53 9 172 Dilutive effect of preferred units* 7 Net income attributable to the Partnership (diluted) $ 117 Weighted-average units outstanding—basic 121,609,520 Dilutive effect of preferred units* 13,819,791 Weighted-average units outstanding—diluted 135,429,311 Net income attributable to the Partnership per limited partner unit—basic ( dollars) $ 0.91 Net income attributable to the Partnership per limited partner unit—diluted (dollars) 0.87 * The dilutive effect of preferred units assumes the reallocation of net income to the limited and general partners, including a reallocation associated with IDRs, pursuant to the available cash formula in the partnership agreement. Limited Partners’ Common Units General Partner (including IDRs) Total Three Months Ended March 31, 2017 Net income attributable to the Partnership (millions) : Distribution declared $ 63 32 95 Distributions less than net income attributable to the Partnership 2 — 2 Net income attributable to the Partnership $ 65 32 97 Weighted-average units outstanding—basic and diluted 107,400,037 Net income attributable to the Partnership per limited partner unit—basic and dilutive (dollars) $ 0.60

Cash Flow Information (Tables)

Cash Flow Information (Tables)	3 Months Ended
	Mar. 31, 2018
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 2018 2017* Cash capital expenditures and investments $ 74 62 Change in capital expenditure accruals (5 ) (4 ) Total capital expenditures and investments $ 69 58 *Prior-period financial information has been retrospectively adjusted for acquisitions of businesses under common control. Millions of Dollars Three Months Ended 2018 2017 Capital expenditures and investments attributable to the Partnership $ 69 53 Capital expenditures and investments attributable to Predecessors* — 5 Total capital expenditures and investments* $ 69 58 *Prior-period financial information has been retrospectively adjusted for acquisitions of businesses under common control.

Related Party Transactions (Tab

Related Party Transactions (Tables)	3 Months Ended
	Mar. 31, 2018
Related Party Transactions [Abstract]
Summary of Related Party Transactions	Significant related party transactions included in our total costs and expenses were: Millions of Dollars Three Months Ended 2018 2017* Operating and maintenance expenses $ 65 40 General and administrative expenses 15 16 Total $ 80 56 *Prior-period financial information has been retrospectively adjusted for acquisitions of businesses under common control. Other related party balances in our consolidated balance sheet consisted of the following, all of which were related to Phillips 66: Millions of Dollars March 31 December 31 Deferred rentals and other assets $ 5 5 Deferred revenues 58 33 Deferred revenues and other liabilities 22 61

Business and Basis of Present31

Business and Basis of Presentation (Details)	Mar. 31, 2018refinery
Phillips 66
Property, Plant and Equipment [Line Items]
Number of refineries	9

Changes in Accounting Princip32

Changes in Accounting Principles (Details) $ in Millions	Dec. 31, 2017USD ($)
Changes in Accounting Principles [Abstract]
Cumulative effect of accounting change	$ 30

Acquisitions (Narrative) (Detai

Acquisitions (Narrative) (Details) - USD ($) $ in Millions	Oct. 06, 2017	May 31, 2016	Mar. 31, 2018	Dec. 31, 2017
Bakken Pipeline and MSLP Acquisition | Phillips 66 | Phillips 66
Business Acquisition [Line Items]
Historical carrying value of assets transferred		$ 729
Common Control Transaction | Phillips 66
Business Acquisition [Line Items]
General partner interest, percent	2.00%
Common Control Transaction | Merey Sweeny | Phillips 66 | Phillips 66
Business Acquisition [Line Items]
Controlling interest acquired, percentage	100.00%
Common Control Transaction | Bakken Pipeline and MSLP Acquisition | Phillips 66 | Common Units
Business Acquisition [Line Items]
Business acquisition, equity interest issued or issuable (in shares)	4,713,113
Common Control Transaction | Bakken Pipeline and MSLP Acquisition | Phillips 66 | General Partner Units
Business Acquisition [Line Items]
Business acquisition, equity interest issued or issuable (in shares)	292,665
Common Control Transaction | Bakken Pipeline and MSLP Acquisition | Phillips 66 | Phillips 66
Business Acquisition [Line Items]
Business combination, consideration transferred	$ 1,650
Cash consideration transferred for assets	372
Noncurrent liabilities, other	$ 53
Bakken Pipeline
Business Acquisition [Line Items]
Percentage Ownership	25.00%		25.00%	25.00%
Promissory Notes | Common Control Transaction | Bakken Pipeline and MSLP Acquisition | Phillips 66 | Phillips 66
Business Acquisition [Line Items]
Liabilities incurred	$ 588
Loans Payable | Common Control Transaction | Bakken Pipeline and MSLP Acquisition | Phillips 66 | Phillips 66
Business Acquisition [Line Items]
Liabilities incurred	$ 450

Acquisitions (Schedule of Resul

Acquisitions (Schedule of Results of Operations Giving Effect to Common Control Acquisitions) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenues and Other Income
Operating revenues—related parties	$ 249	$ 210	[1]
Operating revenues—third parties	7	10	[1]
Equity in earnings of affiliates	98	33	[1]
Other income	1	9	[1]
Total revenues and other income	355	262	[1]
Costs and Expenses
Operating and maintenance expenses	97	74	[1]
Depreciation	28	28	[1]
General and administrative expenses	16	17	[1]
Taxes other than income taxes	10	9	[1]
Interest and debt expense	30	24	[1]
Total costs and expenses	181	152	[1]
Income before income taxes	174	110	[1]
Income tax expense	2	0	[1]
Net Income	172	110	[1]
Less: Net income attributable to Predecessors	0	13	[1]
Net income attributable to the Partnership	172	97	[1]
Less: General partner’s interest in net income attributable to the Partnership	53	32	[1]
Limited partners’ interest in net income attributable to the Partnership	$ 110	65	[1]
Phillips 66 Partners LP (As Previously Reported)
Revenues and Other Income
Operating revenues—related parties		184
Operating revenues—third parties		10
Equity in earnings of affiliates		33
Other income		7
Total revenues and other income		234
Costs and Expenses
Operating and maintenance expenses		62
Depreciation		26
General and administrative expenses		16
Taxes other than income taxes		9
Interest and debt expense		24
Total costs and expenses		137
Income before income taxes		97
Income tax expense		0
Net Income		97
Less: Net income attributable to Predecessors		0
Net income attributable to the Partnership		97
Less: General partner’s interest in net income attributable to the Partnership		32
Limited partners’ interest in net income attributable to the Partnership		65
Acquired Assets Predecessor | Bakken Pipeline and MSLP Acquisition | Phillips 66 | Phillips 66
Revenues and Other Income
Operating revenues—related parties		26
Operating revenues—third parties		0
Equity in earnings of affiliates		0
Other income		2
Total revenues and other income		28
Costs and Expenses
Operating and maintenance expenses		12
Depreciation		2
General and administrative expenses		1
Taxes other than income taxes		0
Interest and debt expense		0
Total costs and expenses		15
Income before income taxes		13
Income tax expense		0
Net Income		13
Less: Net income attributable to Predecessors		13
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, 2018	Mar. 31, 2017
Cash Flows From Operating Activities
Net income	$ 172	$ 110	[1]
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation	28	28	[1]
Undistributed equity earnings	(8)	(4)	[1]
Other	0	2	[1]
Working capital adjustments
Decrease (increase) in accounts receivable	(5)	10	[1]
Decrease (increase) in materials and supplies	0	(1)	[1]
Decrease (increase) in prepaid expenses and other current assets	(3)	2	[1]
Increase (decrease) in accounts payable	(4)	(2)	[1]
Increase (decrease) in accrued interest	(2)	4	[1]
Increase (decrease) in deferred revenues	29	4	[1]
Increase (decrease) in other accruals	2	2	[1]
Net Cash Provided by Operating Activities	171	155	[1]
Cash Flows From Investing Activities
Restricted cash received from combination of business	0	318	[1]
Collection of loan receivable	0	3	[1]
Cash capital expenditures and investments	(74)	(62)	[1]
Return of investment from equity affiliates	14	8	[1]
Net Cash Provided by (Used in) Investing Activities	(60)	267	[1]
Cash Flows From Financing Activities
Net contributions to Phillips 66 from Predecessors	0	(209)	[1]
Issuance of debt	0	712	[1]
Repayment of debt	0	(765)	[1]
Issuance of common units	9	40	[1]
Other cash contributions from Phillips 66	0	10	[1]
Net Cash Used in Financing Activities	(129)	(300)	[1]
Net Change in Cash, Cash Equivalents and Restricted Cash	(18)	122	[1]
Cash, cash equivalents and restricted cash at beginning of period	185	2	[1]
Cash, Cash Equivalents and Restricted Cash at End of Period	167	124	[1]
Phillips 66 Partners LP (As Previously Reported)
Cash Flows From Operating Activities
Net income		97
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation		26
Undistributed equity earnings		(4)
Other		3
Working capital adjustments
Decrease (increase) in accounts receivable		10
Decrease (increase) in materials and supplies		(1)
Decrease (increase) in prepaid expenses and other current assets		1
Increase (decrease) in accounts payable		(1)
Increase (decrease) in accrued interest		2
Increase (decrease) in deferred revenues		4
Increase (decrease) in other accruals		2
Net Cash Provided by Operating Activities		139
Cash Flows From Investing Activities
Restricted cash received from combination of business		0
Collection of loan receivable		0
Cash capital expenditures and investments		(57)
Return of investment from equity affiliates		8
Net Cash Provided by (Used in) Investing Activities		(49)
Cash Flows From Financing Activities
Net contributions to Phillips 66 from Predecessors		0
Issuance of debt		712
Repayment of debt		(765)
Issuance of common units		40
Other cash contributions from Phillips 66		10
Net Cash Used in Financing Activities		(91)
Net Change in Cash, Cash Equivalents and Restricted Cash		(1)
Cash, cash equivalents and restricted cash at beginning of period		2
Cash, Cash Equivalents and Restricted Cash at End of Period		1
Bakken Pipeline and MSLP Acquisition | Phillips 66 | Phillips 66 | Acquired Assets Predecessor
Cash Flows From Operating Activities
Net income		13
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation		2
Undistributed equity earnings		0
Other		(1)
Working capital adjustments
Decrease (increase) in accounts receivable		0
Decrease (increase) in materials and supplies		0
Decrease (increase) in prepaid expenses and other current assets		1
Increase (decrease) in accounts payable		(1)
Increase (decrease) in accrued interest		2
Increase (decrease) in deferred revenues		0
Increase (decrease) in other accruals		0
Net Cash Provided by Operating Activities		16
Cash Flows From Investing Activities
Restricted cash received from combination of business		318
Collection of loan receivable		3
Cash capital expenditures and investments		(5)
Return of investment from equity affiliates		0
Net Cash Provided by (Used in) Investing Activities		316
Cash Flows From Financing Activities
Net contributions to Phillips 66 from Predecessors		(209)
Issuance of debt		0
Repayment of debt		0
Issuance of common units		0
Other cash contributions from Phillips 66		0
Net Cash Used in Financing Activities		(209)
Net Change in Cash, Cash Equivalents and Restricted Cash		123
Cash, cash equivalents and restricted cash at beginning of period		0
Cash, Cash Equivalents and Restricted Cash at End of Period		123
Common Units | Public
Cash Flows From Financing Activities
Quarterly distributions to unitholders	(36)	(24)	[1]
Common Units | Public | Phillips 66 Partners LP (As Previously Reported)
Cash Flows From Financing Activities
Quarterly distributions to unitholders		(24)
Common Units | Public | Bakken Pipeline and MSLP 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		(36)
Common Units | Non-public | Phillips 66 Partners LP (As Previously Reported)
Cash Flows From Financing Activities
Quarterly distributions to unitholders		(36)
Common Units | Non-public | Phillips 66
Cash Flows From Financing Activities
Quarterly distributions to unitholders	(46)	(36)	[1]
Common Units | Non-public | Bakken Pipeline and MSLP 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	$ (47)	(28)	[1]
General Partner | Phillips 66 Partners LP (As Previously Reported)
Cash Flows From Financing Activities
Quarterly distributions to unitholders		(28)
General Partner | Bakken Pipeline and MSLP 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 Carrying Value Equity Investments) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017	Oct. 06, 2017
Schedule of Equity Method Investments [Line Items]
Carrying Value	$ 1,986	$ 1,932
Bakken Pipeline
Schedule of Equity Method Investments [Line Items]
Percentage Ownership	25.00%	25.00%	25.00%
Carrying Value	$ 612	$ 621
Bayou Bridge Pipeline, LLC (Bayou Bridge)
Schedule of Equity Method Investments [Line Items]
Percentage Ownership	40.00%	40.00%
Carrying Value	$ 181	$ 173
DCP Southern Hills Pipeline, LLC (Southern Hills)
Schedule of Equity Method Investments [Line Items]
Percentage Ownership	33.34%	33.34%
Carrying Value	$ 537	$ 515
DCP Southern Hills Pipeline, LLC (Southern Hills)
Schedule of Equity Method Investments [Line Items]
Percentage Ownership	33.34%	33.34%
Carrying Value	$ 209	$ 209
Explorer Pipeline Company (Explorer)
Schedule of Equity Method Investments [Line Items]
Percentage Ownership	21.94%	21.94%
Carrying Value	$ 124	$ 118
Paradigm Pipeline LLC (Paradigm)
Schedule of Equity Method Investments [Line Items]
Percentage Ownership	50.00%	50.00%
Carrying Value	$ 138	$ 131
Phillips 66 Partners Terminal LLC (Phillips 66 Partners Terminal)
Schedule of Equity Method Investments [Line Items]
Percentage Ownership	70.00%	70.00%
Carrying Value	$ 72	$ 53
STACK Pipeline LLC (STACK)
Schedule of Equity Method Investments [Line Items]
Percentage Ownership	50.00%	50.00%
Carrying Value	$ 113	$ 112

Equity Investments Equity Inves

Equity Investments Equity Investments (Schedule of Equity Investment Earnings (Losses)) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Schedule of Equity Method Investments [Line Items]
Equity in earnings (losses) of affiliates	$ 98	$ 33	[1]
Bakken Pipeline
Schedule of Equity Method Investments [Line Items]
Equity in earnings (losses) of affiliates	32
Bayou Bridge Pipeline, LLC (Bayou Bridge)
Schedule of Equity Method Investments [Line Items]
Equity in earnings (losses) of affiliates	5	2
Explorer Pipeline Company (Explorer)
Schedule of Equity Method Investments [Line Items]
Equity in earnings (losses) of affiliates	16	5
Paradigm Pipeline LLC (Paradigm)
Schedule of Equity Method Investments [Line Items]
Equity in earnings (losses) of affiliates	2	(1)
Phillips 66 Partners Terminal LLC (Phillips 66 Partners Terminal)
Schedule of Equity Method Investments [Line Items]
Equity in earnings (losses) of affiliates	9	2
DCP Southern Hills Pipeline, LLC (Southern Hills)
Schedule of Equity Method Investments [Line Items]
Equity in earnings (losses) of affiliates	25	17
DCP Southern Hills Pipeline, LLC (Southern Hills)
Schedule of Equity Method Investments [Line Items]
Equity in earnings (losses) of affiliates	7	7
STACK Pipeline LLC (STACK)
Schedule of Equity Method Investments [Line Items]
Equity in earnings (losses) of affiliates	$ 2	$ 1
[1]	Prior-period financial information has been retrospectively adjusted for acquisitions of businesses under common control.

Properties, Plants and Equipm38

Properties, Plants and Equipment (Details) - USD ($) $ in Millions		Mar. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Gross PP&E		$ 3,789	$ 3,754
Less: Accumulated depreciation		864	836
Net PP&E		2,925	2,918
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]	1,377	1,372
Terminals and related assets
Property, Plant and Equipment [Line Items]
Gross PP&E	[1]	683	671
Rail racks and related assets
Property, Plant and Equipment [Line Items]
Gross PP&E	[1]	137	137
Processing and related assets
Property, Plant and Equipment [Line Items]
Gross PP&E	[1]	840	837
Caverns and related assets
Property, Plant and Equipment [Line Items]
Gross PP&E	[1]	584	583
Construction-in-progress
Property, Plant and Equipment [Line Items]
Gross PP&E		$ 61	$ 47
[1]	Assets for which we are the lessor.

Debt (Summary of Long-Term Debt

Debt (Summary of Long-Term Debt) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Long-term debt, gross	$ 2,975	$ 2,975
Net unamortized discounts and debt issuance costs	(29)	(30)
Total Debt	2,946	2,945
Short-term debt	25	25
Long-term debt	2,921	2,920
Tax-exempt bonds
Debt Instrument [Line Items]
Long-term debt, gross	$ 100	$ 100
Interest rate, stated percentage	1.92%	1.94%
Senior Notes | 2.646% Senior Notes due 2020
Debt Instrument [Line Items]
Long-term debt, gross	$ 300	$ 300
Interest rate, stated percentage	2.646%	2.646%
Senior Notes | 3.605% Senior Notes due 2025
Debt Instrument [Line Items]
Long-term debt, gross	$ 500	$ 500
Interest rate, stated percentage	3.605%	3.605%
Senior Notes | 3.550% Senior Notes due 2026
Debt Instrument [Line Items]
Long-term debt, gross	$ 500	$ 500
Interest rate, stated percentage	3.55%	3.55%
Senior Notes | 3.750% Senior Notes due 2028
Debt Instrument [Line Items]
Long-term debt, gross	$ 500	$ 500
Interest rate, stated percentage	3.75%	3.75%
Senior Notes | 4.680% Senior Notes due 2045
Debt Instrument [Line Items]
Long-term debt, gross	$ 450	$ 450
Interest rate, stated percentage	4.68%	4.68%
Senior Notes | 4.900% Senior Notes due 2046
Debt Instrument [Line Items]
Long-term debt, gross	$ 625	$ 625
Interest rate, stated percentage	4.90%	4.90%

Debt (Narrative) (Details)

Debt (Narrative) (Details) - Fair Value, Inputs, Level 2 - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Senior Notes
Debt Instrument [Line Items]
Debt instrument, fair value disclosure	$ 2,815	$ 2,918
Tax-exempt bonds
Debt Instrument [Line Items]
Debt instrument, fair value disclosure	$ 100

Equity (Details)

Equity (Details)	3 Months Ended		22 Months Ended
	Mar. 31, 2018USD ($)offeringshares	Mar. 31, 2017USD ($)shares	Mar. 31, 2018USD ($)offeringshares
Limited Partners' Capital Account [Line Items]
Equity offering program, number of offerings | offering	2		2
Number of common units issued in public offering (in shares) | shares	188,815	744,968
Issuance of common units	$ 9,000,000	$ 40,000,000
At The Market Offering Program | Common Units
Limited Partners' Capital Account [Line Items]
Number of common units issued in public offering (in shares) | shares	188,815	744,968	3,907,683
Issuance of common units	$ 9,000,000	$ 40,000,000	$ 201,000,000
Maximum | At The Market Offering Program | Common Units
Limited Partners' Capital Account [Line Items]
Maximum aggregate amount of continuous units issuance authorized	$ 500,000,000		$ 500,000,000

Operating Revenues (Narrative)

Operating Revenues (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Operating Leases, Income Statement, Lease Revenue	$ 144
Revenue from contract with customer	112
Contract with customer, asset	38	$ 37
Deferred Revenue	84	93
Contract with customer, liability	14	13
Contract with customer, liability, revenue recognized	4
Lease Agreements
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Receivables, Net, Current	$ 53	$ 49
Maximum
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Customer contracts, term	15 years

Operating Revenues (Revenues Di

Operating Revenues (Revenues Disaggregated) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018USD ($)
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	$ 256
Pipelines
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	102
Terminals
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	39
Storage, processing and other revenues
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	$ 115

Operating Revenues (Performance

Operating Revenues (Performance Obligations) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 487
Revenue, remaining performance obligation, expected timing of satisfaction, period	9 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 572
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 568
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 557
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 546
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 4,400
Lease Agreements | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 4,100

Net Income Per Limited Partne45

Net Income Per Limited Partner Unit (Schedule of Earnings Per unit of our Limited Partners) (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2018	Mar. 31, 2017
Limited Partners' Capital Account [Line Items]
Net income attributable to the Partnership		$ 172	$ 97	[1]
Distribution declared		148	95
Distributions less than net income attributable to the Partnership		24	2
General Partner
Limited Partners' Capital Account [Line Items]
Net income attributable to the Partnership		53	32
Distribution declared	[2]	51	32
Preferred Units | Limited Partner
Limited Partners' Capital Account [Line Items]
Net income attributable to the Partnership		9
Distribution declared	[2]	9	0
Common Units | Limited Partner
Limited Partners' Capital Account [Line Items]
Net income attributable to the Partnership		110	65
Distribution declared	[2]	$ 88	$ 63
[1]	Prior-period financial information has been retrospectively adjusted for acquisitions of businesses under common control.
[2]	Distribution declared attributable to the indicated periods.

Net Income Per Limited Partne46

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, 2018	Mar. 31, 2017
Partners' Capital [Abstract]
Distribution declared		$ 148	$ 95
Distributions less than net income attributable to the Partnership		(24)	(2)
Net income attributable to the Partnership		$ 172	$ 97	[1]
Common Units
Partners' Capital [Abstract]
Weighted-average units outstanding—basic (in shares)		121,609,520	107,400,000	[1]
Dilutive effect of preferred units (in shares)	[2]	13,819,791
Weighted-average units outstanding—diluted (in shares)		135,429,311
Weighted-average units outstanding—basic and diluted (in shares)			107,400,037
Net income attributable to the Partnership per limited partner unit—basic (in dollars per share)		$ 0.91	$ 0.60	[1]
Net income attributable to the Partnership per limited partner unit—diluted (in dollars per share)		$ 0.87	0.60	[1]
Net income attributable to the Partnership per limited partner unit—basic and dilutive (in dollars per share)			$ 0.60
General Partner
Partners' Capital [Abstract]
Distribution declared	[3]	$ 51	$ 32
Distributions less than net income attributable to the Partnership		(2)
Net income attributable to the Partnership		53	32
Limited Partner | Common Units
Partners' Capital [Abstract]
Distribution declared	[3]	88	63
Distributions less than net income attributable to the Partnership		(22)	(2)
Net income attributable to the Partnership		110	65
Dilutive effect of preferred units	[2]	7
Net income attributable to the Partnership (diluted)		117
Limited Partner | Preferred Units
Partners' Capital [Abstract]
Distribution declared	[3]	9	$ 0
Distributions less than net income attributable to the Partnership		0
Net income attributable to the Partnership		$ 9
[1]	Prior-period financial information has been retrospectively adjusted for acquisitions of businesses under common control.
[2]	The dilutive effect of preferred units assumes the reallocation of net income to the limited and general partners, including a reallocation associated with IDRs, pursuant to the available cash formula in the partnership agreement.
[3]	Distribution declared attributable to the indicated periods.

Net Income Per Limited Partne47

Net Income Per Limited Partner Unit (Narrative) (Details)	Apr. 18, 2018$ / shares
Common Units | Cash Distribution | Subsequent Event
Subsequent Events [Abstract]
Quarterly cash distribution declared per limited partner unit (in dollars per share)	$ 0.714

Cash Flow Information (Capital

Cash Flow Information (Capital Expenditures and Investments) (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2018	Mar. 31, 2017
Capital Expenditures And Investments [Abstract]
Cash capital expenditures and investments		$ 74	$ 62	[1]
Change in capital expenditure accruals		(5)	(4)	[1]
Total capital expenditures and investments	[1]	69	58
Capital expenditures and investments attributable to the Partnership		69	53
Capital expenditures and investments attributable to Predecessors		$ 0	$ 5	[1]
[1]	Prior-period financial information has been retrospectively adjusted for acquisitions of businesses under common control.

Cash Flow Information (Narrativ

Cash Flow Information (Narrative) (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Cash and Cash Equivalents [Abstract]
Restricted cash	$ 0	$ 0

Related Party Transactions (Sum

Related Party Transactions (Summary of Related Party Transactions) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	[1]
Related Party Transactions [Abstract]
Operating and maintenance expenses	$ 65	$ 40
General and administrative expenses	15	16
Total	$ 80	$ 56
[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, 2018USD ($)
Phillips 66 | Amended Omnibus Agreement | Phillips 66
Related party agreements and fees
Monthly operational and administrative support fee	$ 8

Related Party Transactions (Oth

Related Party Transactions (Other Related Party Balances) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Related Party Transaction [Line Items]
Deferred revenues	$ 60	$ 35
Deferred revenues and other liabilities	28	66
Phillips 66
Related Party Transaction [Line Items]
Deferred rentals and other assets	5	5
Deferred revenues	58	33
Deferred revenues and other liabilities	$ 22	$ 61