Phillips 66 Partners (PSXP) 10-Q 26 Jul 19 2019 Q2 Quarterly report Financial data

Cover Page

Cover Page	6 Months Ended
	Jun. 30, 2019shares
Cover page.
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2019
Document Transition Report	false
Entity File Number	001-36011
Entity Registrant Name	Phillips 66 Partners LP
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	38-3899432
Entity Address, Address Line One	2331 CityWest Blvd
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77042
City Area Code	855
Local Phone Number	283-9237
Title of 12(b) Security	Common Units, Representing Limited Partnership Interests
Trading Symbol	PSXP
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	124,938,423
Amendment Flag	false
Entity Central Index Key	0001572910
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019

Consolidated Statement of Incom

Consolidated Statement of Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenues and Other Income
Operating revenues	$ 263	$ 254	$ 565	$ 510
Equity in earnings of affiliates	137	100	256	198
Other income	1	0	3	1
Total revenues and other income	401	354	824	709
Costs and Expenses
Operating and maintenance expenses	85	85	224	182
Depreciation	29	29	58	57
General and administrative expenses	17	16	35	32
Taxes other than income taxes	9	9	20	19
Interest and debt expense	27	29	54	59
Total costs and expenses	167	168	391	349
Income before income taxes	234	186	433	360
Income tax expense	1	0	2	2
Net Income	233	186	431	358
Less: Preferred unitholders’ interest in net income	9	10	19	19
Less: General partner’s interest in net income	71	55	140	108
Limited partners’ interest in net income	$ 153	$ 121	$ 272	$ 231
Common Units
Net Income Attributable to the Partnership Per Limited Partner Unit
Common units—basic (in dollars per share)	$ 1.23	$ 0.99	$ 2.19	$ 1.89
Common units—diluted (in dollars per share)	$ 1.15	$ 0.94	$ 2.07	$ 1.80
Weighted-Average Limited Partner Units Outstanding
Common units—basic (in shares)	124,824,010	122,188,646	124,542,536	121,900,683
Common units—diluted (in shares)	138,644,000	136,008,000	138,362,000	135,720,000
Service revenues
Revenues and Other Income
Operating revenues	$ 49	$ 111	$ 94	$ 223
Affiliated Entity | Service revenues
Revenues and Other Income
Operating revenues	256	244	552	493
Third Party | Service revenues
Revenues and Other Income
Operating revenues	$ 7	$ 10	$ 13	$ 17

Consolidated Statement of Compr

Consolidated Statement of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 233	$ 186	$ 431	$ 358
Defined benefit plans
Plan sponsored by equity affiliates, net of income taxes	0	0	0	0
Other comprehensive income	0	0	0	0
Comprehensive Income	$ 233	$ 186	$ 431	$ 358

Consolidated Balance Sheet

Consolidated Balance Sheet - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Assets
Cash and cash equivalents	$ 130	$ 1
Accounts receivable—third parties	88	95
Materials and supplies	13	13
Prepaid expenses and other current assets	9	20
Total current assets	240	129
Equity investments	2,912	2,448
Net properties, plants and equipment	3,158	3,052
Goodwill	185	185
Other assets	49	5
Total Assets	6,544	5,819
Liabilities
Accounts payable—related parties	19	22
Accounts payable—third parties	74	88
Accrued interest	37	36
Deferred revenues	17	60
Short-term debt	150	50
Accrued property and other taxes	18	9
Other current liabilities	2	5
Total current liabilities	317	270
Long-term debt	3,174	2,998
Obligation from equity interest transfer	341	0
Other liabilities	96	42
Total Liabilities	3,928	3,310
Equity
General partner—Phillips 66 (2019 and 2018—2,480,051 units issued and outstanding)	(1,310)	(1,313)
Accumulated other comprehensive loss	(1)	(1)
Total Equity	2,616	2,509
Total Liabilities and Equity	6,544	5,819
Public | Preferred Units
Equity
Preferred unitholders (2019 and 2018—13,819,791 units issued and outstanding)	746	746
Total Equity	746	746
Public | Common Units
Equity
Unitholders	2,555	2,485
Total Equity	2,555	2,485
Non-public | Common Units | Phillips 66
Equity
Unitholders	626	592
Total Equity	626	592
Affiliated Entity
Assets
Accounts receivable—related parties	85	90
Third Party
Assets
Accounts receivable—third parties	$ 3	$ 5

Consolidated Balance Sheet (Par

Consolidated Balance Sheet (Parenthetical) - shares	Jun. 30, 2019	Dec. 31, 2018
General partner—Phillips 66 units issued (in shares)	2,480,051
General partner—Phillips 66 units outstanding (in shares)		2,480,051
Public
Preferred units, issued (in shares)	13,819,791
Preferred units, outstanding (in shares)		13,819,791
Common Units | Public
Units outstanding (in shares)	56,178,286	55,343,918
Common Units | Non-public | Phillips 66
Units issued (in shares)	68,760,137
Units outstanding (in shares)		68,760,137

Consolidated Statement of Cash

Consolidated Statement of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash Flows From Operating Activities
Net income	$ 431	$ 358
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation	58	57
Undistributed equity earnings	3	(7)
Other liabilities	12	(38)
Working capital adjustments
Accounts receivable	6	(3)
Prepaid expenses and other current assets	12	0
Accounts payable	(3)	(3)
Accrued interest	0	2
Deferred revenues	(46)	30
Other accruals	8	1
Net Cash Provided by Operating Activities	481	397
Cash Flows From Investing Activities
Cash capital expenditures and investments	(759)	(234)
Advances/loans—related party	(95)	0
Collection of advances/loans—related party	95	0
Return of investment from equity affiliates	35	22
Proceeds from sale of equity interest	81	0
Net Cash Used in Investing Activities	(643)	(212)
Cash Flows From Financing Activities
Proceeds from equity interest transfer	341	0
Issuance of debt	860	0
Repayment of debt	(585)	0
Issuance of common units	42	67
Other distributions to Phillips 66	(3)	0
Net Cash Provided by (Used in) Financing Activities	291	(219)
Net Change in Cash and Cash Equivalents	129	(34)
Cash and cash equivalents at beginning of period	1	185
Cash and Cash Equivalents at End of Period	130	151
Preferred Units
Cash Flows From Financing Activities
Quarterly distributions to unitholders	(19)	(18)
Public | Common Units
Cash Flows From Financing Activities
Quarterly distributions to unitholders	(93)	(74)
General Partner
Cash Flows From Financing Activities
Quarterly distributions to unitholders	(136)	(98)
Phillips 66 | Non-public | Common Units
Cash Flows From Financing Activities
Quarterly distributions to unitholders	$ (116)	$ (96)

Consolidated Statement of Chang

Consolidated Statement of Changes in Equity - USD ($) $ in Millions	Total	Accum. Other Comprehensive Loss	General Partner	Preferred UnitsPublic	Common UnitsPublic	Common UnitsNon-publicPhillips 66
Beginning Balance at Dec. 31, 2017	$ 2,161	$ (1)	$ (1,345)	$ 746	$ 2,274	$ 487
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common units	67				67
Net income attributable to the Partnership	358		108	19	101	130
Quarterly cash distributions to unitholders and General Partner	(286)		(98)	(18)	(74)	(96)
Other contributions from Phillips 66	2		2
Ending Balance at Jun. 30, 2018	$ 2,333	(1)	$ (1,332)	$ 747	$ 2,381	$ 538
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)	1,340,934				1,340,934
Ending balance, Units (in shares) at Jun. 30, 2018	139,212,735		2,480,051	13,819,791	54,152,756	68,760,137
Beginning Balance at Mar. 31, 2018	$ 2,234	(1)	$ (1,338)	$ 746	$ 2,308	$ 519
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common units	58				58
Net income attributable to the Partnership	186		55	10	53	68
Quarterly cash distributions to unitholders and General Partner	(148)		(51)	(9)	(38)	(50)
Other contributions from Phillips 66	2		2
Ending Balance at Jun. 30, 2018	$ 2,333	(1)	$ (1,332)	$ 747	$ 2,381	$ 538
Beginning balance, Units (in shares) at Mar. 31, 2018	138,060,616		2,480,051	13,819,791	53,000,637	68,760,137
Units Outstanding [Roll Forward]
Units issued in public equity offerings (in shares)	1,152,119				1,152,119
Ending balance, Units (in shares) at Jun. 30, 2018	139,212,735		2,480,051	13,819,791	54,152,756	68,760,137
Beginning Balance at Dec. 31, 2018	$ 2,509	(1)	$ (1,313)	$ 746	$ 2,485	$ 592
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common units	42				42
Net income attributable to the Partnership	431		140	19	122	150
Quarterly cash distributions to unitholders and General Partner	(364)		(136)	(19)	(93)	(116)
Other contributions from Phillips 66	(1)		(1)
Ending Balance at Jun. 30, 2019	$ 2,616	(1)	$ (1,310)	$ 746	$ 2,555	$ 626
Beginning balance, Units (in shares) at Dec. 31, 2018	140,403,897		2,480,051	13,819,791	55,343,918	68,760,137
Units Outstanding [Roll Forward]
Units issued in public equity offerings (in shares)	834,368				834,368
Ending balance, Units (in shares) at Jun. 30, 2019	141,238,265		2,480,051	13,819,791	56,178,286	68,760,137
Beginning Balance at Mar. 31, 2019	$ 2,554	(1)	$ (1,315)	$ 747	$ 2,523	$ 600
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common units	10				10
Net income attributable to the Partnership	233		71	9	69	84
Quarterly cash distributions to unitholders and General Partner	(184)		(69)	(10)	(47)	(58)
Other contributions from Phillips 66	3		3
Ending Balance at Jun. 30, 2019	$ 2,616	$ (1)	$ (1,310)	$ 746	$ 2,555	$ 626
Beginning balance, Units (in shares) at Mar. 31, 2019	141,025,929		2,480,051	13,819,791	55,965,950	68,760,137
Units Outstanding [Roll Forward]
Units issued in public equity offerings (in shares)	212,336				212,336
Ending balance, Units (in shares) at Jun. 30, 2019	141,238,265		2,480,051	13,819,791	56,178,286	68,760,137

Description of the Business

Description of the Business	6 Months Ended
	Jun. 30, 2019
Description of Business [Abstract]
Description of the Business	Note 1—Description of the Business 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. We are a growth-oriented master limited partnership formed to own, operate, develop and acquire primarily fee-based midstream assets. Our operations consist of crude oil, refined petroleum products and natural gas liquids (NGL) transportation, terminaling, processing 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 fractionation services to Phillips 66 and other customers. Our equity affiliates primarily generate revenue from transporting and terminaling crude oil, refined petroleum products and NGL. Since we do not own any of the crude oil, refined petroleum products and NGL we handle and do not engage in the trading of crude oil, refined petroleum products and NGL, 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.

Interim Financial Information

Interim Financial Information	6 Months Ended
	Jun. 30, 2019
Interim Financial Information [Abstract]
Interim Financial Information	Note 2— Interim Financial Information The unaudited interim financial information presented in the financial statements included in this report is prepared in accordance with generally accepted accounting principles in the United States (GAAP) 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 2018 Annual Report on Form 10-K. The results of operations for the three and six months ended June 30, 2019 , are not necessarily indicative of the results to be expected for the full year. Certain prior period financial information has been recast to reflect the current year’s presentation.

Changes in Accounting Principle

Changes in Accounting Principles	6 Months Ended
	Jun. 30, 2019
Changes in Accounting Principles [Abstract]
Changes in Accounting Principles	Note 3—Changes in Accounting Principles Effective January 1, 2019, we early adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which amends the impairment model to utilize an expected loss methodology in place of the incurred loss methodology for financial instruments and off-balance sheet credit exposures. The amendment requires entities to consider a broader range of information to estimate expected credit losses, which may result in earlier recognition of losses. The adoption of the ASU did not have a material impact on our consolidated financial statements. Effective January 1, 2019, we adopted ASU 2016-02, “Leases (Topic 842)” using the modified retrospective transition method. The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and corresponding lease liability on the consolidated balance sheet for all operating leases with terms longer than 12 months. Leases will continue to be classified as either finance or operating, with classification affecting the pattern of expense recognition in the consolidated income statement. We elected the package of practical expedients that allowed us to carry forward the determination of whether an arrangement contains a lease and lease classification, as well as our accounting for initial direct costs for existing contracts. We recorded a noncash cumulative effect adjustment to our opening consolidated balance sheet as of January 1, 2019, to record an aggregate operating lease ROU asset and a corresponding lease liability of $45 million . See Note 5—Lease Assets and Liabilities , for the new lease disclosures required by this ASU for lessees. For arrangements where we are the lessor, effective for periods after January 1, 2019, we elected to account for lease and service elements of contracts classified as leases on a combined basis under the provisions of ASU No. 2016-02, except for leases of processing-type assets, which contain non-ratable fees related to turnaround activity. For these types of leases, we continued to separate the lease and service elements based on relative standalone prices and applied the new lease standard to the lease element and the revenue standard to the service element. We recorded a noncash cumulative effect adjustment of $1 million to decrease our opening equity balance as of January 1, 2019. See Note 4—Operating Revenues

Operating Revenues

Operating Revenues	6 Months Ended
	Jun. 30, 2019
Revenue from Contract with Customer [Abstract]
Operating Revenues	Note 4—Operating Revenues Operating revenues are primarily generated from long-term pipeline transportation, terminaling, storage, processing and fractionation lease and service agreements, mainly with Phillips 66. These agreements typically include escalation clauses to adjust transportation tariffs and terminaling and storage fees to reflect changes in price indices. In addition, most of these agreements contain renewal options, which typically require the mutual consent of both our customers and us. Total operating revenues disaggregated by asset type were as follows: Millions of Dollars Three Months Ended Six Months Ended 2019 2018 2019 2018 Pipelines $ 117 111 226 213 Terminals 39 38 79 77 Storage, processing and other revenues 107 105 260 220 Total operating revenues $ 263 254 565 510 The majority of our agreements with Phillips 66 are considered operating leases under GAAP. For reporting periods prior to our adoption of the new lease accounting standard, ASU No. 2016-02, as of January 1, 2019, the lease and service elements included in these contracts were separated with the lease element recognized in accordance with the existing lease accounting standard and the service element recognized in accordance with the revenue accounting standard. Effective for periods after January 1, 2019, we elected to account for lease and service elements of contracts classified as leases on a combined basis under the provisions of ASU No. 2016-02, except for leases of processing-type assets, which contain non-ratable fees related to turnaround activity. For these types of leases, we continued to separate the lease and service elements based on relative standalone prices and applied the new lease standard to the lease element and the revenue standard to the service element. As a result of our change in accounting policy, our lease and service revenues, lease and service accounts receivable and lease and service deferred revenues reported for the three and six months ended June 30, 2019, are not prepared on the same basis as the amounts reported for the three and six months ended June 30, 2018. Total operating revenues disaggregated by lease and service revenues were as follows: Millions of Dollars Three Months Ended Six Months Ended 2019 2018 2019 2018 Lease revenues $ 214 143 471 287 Service revenues 49 111 94 223 Total operating revenues $ 263 254 565 510 Accounts Receivable We bill our customers, mainly Phillips 66, under our lease and service contracts generally on a monthly basis. Total accounts receivable by revenue type was as follows: Millions of Dollars June 30 2019 December 31 2018 Lease receivables $ 69 53 Service receivables 19 41 Other receivables — 1 Total accounts receivables $ 88 95 Deferred Revenues Our deferred revenues represent payments received from our customers, mainly Phillips 66, in advance of the period in which lease and service contract performance obligations have been fulfilled. The majority of our deferred revenues relate to a tolling agreement and a storage agreement that are classified as leases. The remainder of our deferred revenues relate to lease and service agreements that contain minimum volume commitments with recovery provisions. Our deferred revenues are recorded in the “Deferred revenues” and “Other liabilities” lines on our consolidated balance sheet. Total deferred revenues under our lease and service agreements were as follows: Millions of Dollars June 30 2019 December 31 2018 Deferred lease revenues $ 42 73 Deferred service revenues 1 6 Total deferred revenues $ 43 79 Future Minimum Lease Payments from Customers At June 30, 2019 , future minimum payments to be received under our lease agreements with customers were estimated to be: Millions of Dollars Remainder of 2019 $ 325 2020 644 2021 639 2022 627 2023 585 Remaining years 1,570 Total future minimum lease payments from customers $ 4,390 Remaining Service Performance Obligations We typically have long-term service contracts with our customers, of which the original durations range from 5 to 15 years. The weighted-average remaining duration of these contracts is 11 years. These contracts include both fixed and variable transaction price components. At June 30, 2019 , future service revenues expected to be recognized for the fixed component of the transaction price of our remaining performance obligations from service contracts with our customers that have an original expected duration of greater than one year were: Millions of Dollars Remainder of 2019 $ 72 2020 139 2021 131 2022 130 2023 130 Remaining years 754 Total future service revenues $ 1,356

Lease Assets and Liabilities

Lease Assets and Liabilities	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
Lease Assets and Liabilities	Note 5—Lease Assets and Liabilities We have agreements with Phillips 66 to lease land underlying or associated with certain of our assets that are classified as operating leases. Due to the economic infeasibility of canceling these leases, we consider them non-cancellable. Certain leases include escalation clauses for adjusting rental payments to reflect changes in price indices. There are no significant restrictions imposed on us in our lease agreements with regards to distribution payments, asset dispositions or borrowing ability. Effective with our implementation of ASU No. 2016-02, we elected to discount lease obligations using our incremental borrowing rate. For all leases, we elected the practical expedient to not separate service and lease costs. Our right-of-way agreements in effect prior to January 1, 2019, were not accounted for as leases as they were not initially determined to be leases at their commencement dates. However, modifications to these agreements or new agreements will be assessed and accounted for accordingly under ASU No. 2016-02. For short-term leases, which are leases that, at the commencement date, have a lease term of 12 months or less and do not include an option to purchase the underlying asset that is reasonably certain to be exercised, we elected to not recognize the ROU asset and corresponding lease liability on our consolidated balance sheet. Operating lease ROU assets are recorded in the “Other assets” line and lease liabilities are recorded in the “Other current liabilities” and “Other liabilities” lines on our consolidated balance sheet. At June 30, 2019 , the total operating lease ROU asset was $44 million . Future minimum lease payments and recorded short- and long-term lease liabilities at June 30, 2019 , for operating leases were: Millions of Dollars Remainder of 2019 $ 2 2020 3 2021 3 2022 3 2023 3 Remaining years 93 Future minimum lease payments 107 Amount representing interest or discounts (63 ) Total lease liabilities 44 Short-term lease liabilities (1 ) Long-term lease liabilities $ 43 Operating lease costs and operating cash outflows for the three and six months ended June 30, 2019 , were $1 million . The weighted-average remaining lease term for our operating leases as of June 30, 2019 , was 36 years. The weighted-average discount rate for our operating leases as of June 30, 2019 , was 5.9%
Lease Assets and Liabilities	Note 5—Lease Assets and Liabilities We have agreements with Phillips 66 to lease land underlying or associated with certain of our assets that are classified as operating leases. Due to the economic infeasibility of canceling these leases, we consider them non-cancellable. Certain leases include escalation clauses for adjusting rental payments to reflect changes in price indices. There are no significant restrictions imposed on us in our lease agreements with regards to distribution payments, asset dispositions or borrowing ability. Effective with our implementation of ASU No. 2016-02, we elected to discount lease obligations using our incremental borrowing rate. For all leases, we elected the practical expedient to not separate service and lease costs. Our right-of-way agreements in effect prior to January 1, 2019, were not accounted for as leases as they were not initially determined to be leases at their commencement dates. However, modifications to these agreements or new agreements will be assessed and accounted for accordingly under ASU No. 2016-02. For short-term leases, which are leases that, at the commencement date, have a lease term of 12 months or less and do not include an option to purchase the underlying asset that is reasonably certain to be exercised, we elected to not recognize the ROU asset and corresponding lease liability on our consolidated balance sheet. Operating lease ROU assets are recorded in the “Other assets” line and lease liabilities are recorded in the “Other current liabilities” and “Other liabilities” lines on our consolidated balance sheet. At June 30, 2019 , the total operating lease ROU asset was $44 million . Future minimum lease payments and recorded short- and long-term lease liabilities at June 30, 2019 , for operating leases were: Millions of Dollars Remainder of 2019 $ 2 2020 3 2021 3 2022 3 2023 3 Remaining years 93 Future minimum lease payments 107 Amount representing interest or discounts (63 ) Total lease liabilities 44 Short-term lease liabilities (1 ) Long-term lease liabilities $ 43 Operating lease costs and operating cash outflows for the three and six months ended June 30, 2019 , were $1 million . The weighted-average remaining lease term for our operating leases as of June 30, 2019 , was 36 years. The weighted-average discount rate for our operating leases as of June 30, 2019 , was 5.9%

Equity Investments and Loans

Equity Investments and Loans	6 Months Ended
	Jun. 30, 2019
Equity Method Investments and Joint Ventures [Abstract]
Equity Investments and Loans	Note 6—Equity Investments and Loans Equity Investments The following table summarizes the carrying value of our equity investments: Millions of Dollars Percentage Ownership June 30 December 31 Dakota Access, LLC and Energy Transfer Crude Oil Company, LLC (Bakken Pipeline) 25.00 % $ 590 608 Bayou Bridge Pipeline, LLC (Bayou Bridge) 40.00 296 277 DCP Sand Hills Pipeline, LLC (Sand Hills) 33.34 600 601 DCP Southern Hills Pipeline, LLC (Southern Hills) 33.34 209 206 Explorer Pipeline Company (Explorer) 21.94 107 115 Gray Oak Pipeline, LLC (Gray Oak) 65.00 745 288 Paradigm Pipeline LLC (Paradigm) 50.00 145 145 Phillips 66 Partners Terminal LLC (Phillips 66 Partners Terminal) 70.00 70 71 South Texas Gateway Terminal LLC (South Texas Gateway Terminal) 25.00 36 20 STACK Pipeline LLC (STACK) 50.00 114 117 Total equity investments $ 2,912 2,448 Earnings from our equity investments were as follows: Millions of Dollars Three Months Ended Six Months Ended 2019 2018 2019 2018 Bakken Pipeline $ 58 39 109 71 Bayou Bridge 8 3 12 8 Sand Hills 38 31 74 56 Southern Hills 11 9 24 16 Explorer 11 8 14 24 Gray Oak — — — — Paradigm 3 2 6 4 Phillips 66 Partners Terminal 6 6 12 15 South Texas Gateway Terminal — — — — STACK 2 2 5 4 Total equity in earnings of affiliates $ 137 100 256 198 Gray Oak In April 2018, we entered into a Purchase and Sale Agreement with Phillips 66 PDI to acquire its 100% interest in Gray Oak Holdings LLC (Holdings LLC), a limited liability company that, at that time, owned a 100% interest in Gray Oak. Gray Oak is developing and constructing the Gray Oak Pipeline which, upon completion, will provide crude oil transportation from the Permian and Eagle Ford to destinations in Corpus Christi, Texas, and the Sweeny, Texas, area, including the Phillips 66 Sweeny Refinery. The pipeline system is anticipated to be in service by the end of 2019. We accounted for the acquisition of Holdings LLC as an acquisition of assets under common control accounting. Also in April 2018, a co-venturer acquired a 25% interest in Gray Oak, along with sufficient voting rights over key governance provisions such that we no longer could assert control over Gray Oak. As a result, we (through our consolidated subsidiary Holdings LLC) began using the equity method of accounting for our investment in Gray Oak at that time. In December 2018, a third party exercised its option to acquire a 35% interest in Holdings LLC. Because Holdings LLC’s sole asset was its 75% ownership interest in Gray Oak, which is considered a financial asset, and because certain restrictions were placed on the third party’s ability to transfer or sell its interest in Holdings LLC during the construction of the Gray Oak Pipeline, the legal sale of the 35% interest did not qualify as a sale under GAAP. Rather, the third party’s cash contributions to Holdings LLC in 2019 to fund its share of previously incurred and future construction costs plus a premium to us are reflected as a long-term obligation in the “Obligation from equity interest transfer” line on our consolidated balance sheet and financing cash inflows in the “Proceeds from equity interest transfer” line on our consolidated statement of cash flows. After construction of the Gray Oak Pipeline is fully completed, these restrictions expire, and the sale will be recognized under GAAP. We will continue to control and consolidate Holdings LLC after sale recognition, and therefore the third party’s 35% interest will be recharacterized from a long-term obligation to a noncontrolling interest on our consolidated balance sheet at that time. Also at that time, the premium paid will be recharacterized from a long-term obligation to a gain in our consolidated statement of income. During the six months ended June 30, 2019 , the third party contributed an aggregate of $341 million into Holdings LLC, which Holdings LLC used to fund its portion of Gray Oak’s cash calls. In February 2019, Holdings LLC transferred a 10% interest in Gray Oak to a third party that exercised a purchase option, for proceeds of $81 million . This transfer was accounted for as a sale and resulted in a decrease in Holdings LLC’s ownership interest in Gray Oak from 75% to 65% and the recognition of an immaterial gain. The proceeds received from this sale are reflected as an investing cash inflow in the “Proceeds from sale of equity interest” line on our consolidated statement of cash flows. At June 30, 2019 , our effective ownership interest in the Gray Oak Pipeline was 42.25% . In June 2019 , Gray Oak entered into a third-party term loan facility with an initial borrowing capacity of $1,230 million , which was increased in July 2019 to $1,317 million . Borrowings under the facility are due on June 3, 2022 . We and our co-venturers provided a guarantee through an equity contribution agreement requiring proportionate equity contributions to Gray Oak up to the total outstanding loan amount. Under the agreement, our maximum potential amount of future obligations is $556 million , plus any accrued interest and associated fees, which would be required if the term loan facility is fully utilized and Gray Oak defaults on its obligations. At June 30, 2019 , Gray Oak had borrowings of $551 million outstanding, and our 42.25% proportionate exposure was $233 million . The net proceeds from the term loan were used by Gray Oak for construction of the Gray Oak Pipeline and repayment of amounts borrowed under a related party loan agreement that we and our co-venturers executed in March 2019 and terminated upon the repayment by Gray Oak in June. Our total related party loan to and repayment received from Gray Oak was $95 million during the second quarter of 2019. Gray Oak is considered a variable interest entity because it does not have sufficient equity at risk to fully fund the construction of all assets required for principal operations. We have determined we are not the primary beneficiary because we and our co-venturers jointly direct the activities of Gray Oak that most significantly impact economic performance. At June 30, 2019 , our maximum exposure to loss was $978 million , which represented our guarantee of the third-party term loan facility of $233 million and the aggregate book value of our equity method investment in Gray Oak of $745 million . Bakken Pipeline In March 2019, a wholly owned subsidiary of Dakota Access, LLC (Dakota Access) closed on an offering of $2,500 million aggregate principal amount of unsecured senior notes. The net proceeds from the issuance of these notes were used to repay amounts outstanding under existing credit facilities of Dakota Access and Energy Transfer Crude Oil Company, LLC (ETCO). Dakota Access and ETCO have guaranteed repayment of the notes. In addition, we and our co-venturers provided a Contingent Equity Contribution Undertaking (CECU) in conjunction with the notes offering. Under the CECU, if Dakota Access receives an unfavorable court ruling related to certain disputed construction permits and Dakota Access determines that an equity contribution trigger event has occurred, the venturers may be severally required to make proportionate equity contributions to Dakota Access and ETCO up to an aggregate maximum of approximately $2,525 million . Our share of the maximum potential equity contributions under the CECU is approximately $631 million .

Net Income Per Limited Partner

Net Income Per Limited Partner Unit	6 Months Ended
	Jun. 30, 2019
Partners' Capital Notes [Abstract]
Net Income Per Limited Partner Unit	Note 7—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 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 June 30, 2019 , the classes of participating securities included common units, general partner units and incentive distribution rights (IDRs). For the three and six months ended June 30, 2019 and 2018 , our preferred units are potentially dilutive securities and were dilutive to net income per limited partner unit. 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 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. Millions of Dollars Three Months Ended Six Months Ended 2019 2018 2019 2018 Net income $ 233 186 431 358 Less: General partner’s distributions declared (including IDRs)* 70 57 139 108 Limited partners’ distributions declared on preferred units* 9 10 19 19 Limited partners’ distributions declared on common units* 107 91 212 179 Distributions less than net income $ 47 28 61 52 *Distributions declared attributable to the indicated periods. Limited Partners’ Common Units General Partner (including IDRs) Limited Partners’ Preferred Units Total Three Months Ended June 30, 2019 Net income (millions) : Distributions declared $ 107 70 9 186 Distributions less than net income 46 1 — 47 Net income (basic) 153 71 9 233 Dilutive effect of preferred units* 6 Net income (diluted) $ 159 Weighted-average units outstanding—basic 124,824,010 Dilutive effect of preferred units* 13,819,791 Weighted-average units outstanding—diluted 138,643,801 Net income per limited partner unit—basic (dollars) $ 1.23 Net income per limited partner unit—diluted (dollars) 1.15 Three Months Ended June 30, 2018 Net income (millions) : Distributions declared $ 91 57 10 158 Distributions less than (more than) net income 30 (2 ) — 28 Net income (basic) 121 55 10 186 Dilutive effect of preferred units* 7 Net income (diluted) $ 128 Weighted-average units outstanding—basic 122,188,646 Dilutive effect of preferred units* 13,819,791 Weighted-average units outstanding—diluted 136,008,437 Net income per limited partner unit—basic (dollars) $ 0.99 Net income per limited partner unit—diluted (dollars) 0.94 *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) Limited Partners’ Preferred Units Total Six Months Ended June 30, 2019 Net income (millions) : Distributions declared $ 212 139 19 370 Distributions less than net income 60 1 — 61 Net income (basic) 272 140 19 431 Dilutive effect of preferred units* 14 Net income (diluted) $ 286 Weighted-average units outstanding—basic 124,542,536 Dilutive effect of preferred units* 13,819,791 Weighted-average units outstanding—diluted 138,362,327 Net income per limited partner unit—basic (dollars) $ 2.19 Net income per limited partner unit—diluted (dollars) 2.07 Six Months Ended June 30, 2018 Net income (millions) : Distributions declared $ 179 108 19 306 Distributions less than net income 52 — — 52 Net income (basic) 231 108 19 358 Dilutive effect of preferred units* 14 Net income (diluted) $ 245 Weighted-average units outstanding—basic 121,900,683 Dilutive effect of preferred units* 13,819,791 Weighted-average units outstanding—diluted 135,720,474 Net income per limited partner unit—basic (dollars) $ 1.89 Net income per limited partner unit—diluted (dollars) 1.80 *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. On July 17, 2019 , the Board of Directors of our General Partner declared a quarterly cash distribution of $0.855 per common unit attributable to the second quarter of 2019. This distribution is payable on August 13, 2019 , to unitholders of record as of July 31, 2019

Properties, Plants and Equipmen

Properties, Plants and Equipment	6 Months Ended
	Jun. 30, 2019
Property, Plant and Equipment [Abstract]
Properties, Plants and Equipment	Note 8—Properties, Plants and Equipment Our investment in properties, plants and equipment (PP&E), with the associated accumulated depreciation, was: Millions of Dollars June 30 December 31 Land $ 19 19 Buildings and improvements 92 89 Pipelines and related assets * 1,405 1,398 Terminals and related assets * 717 710 Rail racks and related assets * 137 137 Processing and related assets * 889 842 Caverns and related assets * 585 584 Construction-in-progress 314 216 Gross PP&E 4,158 3,995 Accumulated depreciation (1,000 ) (943 ) Net PP&E $ 3,158 3,052 *Assets for which we are the lessor.

Debt

Debt	6 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
Debt	Note 9—Debt Millions of Dollars June 30 December 31 2.646% Senior Notes due February 2020 $ 300 300 3.605% Senior Notes due February 2025 500 500 3.550% Senior Notes due October 2026 500 500 3.750% Senior Notes due March 2028 500 500 4.680% Senior Notes due February 2045 450 450 4.900% Senior Notes due October 2046 625 625 Term loans due March 2020 at 3.167% at June 30, 2019 400 — Tax-exempt bonds due April 2020 and April 2021 at 2.105% and 1.885% at June 30, 2019, and December 31, 2018, respectively 75 75 Revolving credit facility due January 2019 at 3.669% at December 31, 2018 — 125 Debt at face value 3,350 3,075 Net unamortized discounts and debt issuance costs (26 ) (27 ) Total debt 3,324 3,048 Short-term debt (150 ) (50 ) Long-term debt $ 3,174 2,998 On March 22, 2019, we entered into a senior unsecured term loan facility with a borrowing capacity of $400 million that matures on March 20, 2020. At June 30, 2019 , term loans totaling $400 million were outstanding under this facility. Borrowings under this facility bear interest at a floating rate based on either the Eurodollar rate or the reference rate, plus a margin determined by our credit ratings. Proceeds from term loans made under this facility were used for general partnership purposes, including repayment of amounts borrowed under our $750 million revolving credit facility. As of June 30, 2019 , no amount had been directly drawn under our $750 million revolving credit facility; however, $1 million in letters of credit had been issued that were supported by this facility. As of December 31, 2018 , we had an aggregate of $125 million borrowed and outstanding under the credit facility. At June 30, 2019 , $575 million of debt due within a year was classified as long-term debt based on our intent to refinance the obligation on a long-term basis and ability to do so under our revolving credit facility. 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 $2,962 million and $2,660 million at June 30, 2019 , and December 31, 2018 , respectively. The fair value of our floating-rate debt approximated carrying value of $475 million and $200 million at June 30, 2019 , and December 31, 2018 , respectively.

Equity

Equity	6 Months Ended
	Jun. 30, 2019
Equity [Abstract]
Equity	Note 10—Equity ATM Programs Our initial $250 million continuous offering of common units, or at-the-market (ATM) program, was completed in June 2018. At that time, we commenced issuing common units under our second $250 million ATM program. For the three and six months ended June 30, 2019 , on a settlement date basis, we issued an aggregate of 212,336 and 834,368 common units under our ATM programs, generating net proceeds of $10 million and $42 million , respectively. For the three and six months ended June 30, 2018 , we issued an aggregate of 1,152,119 and 1,340,934 common units under our ATM programs, generating net proceeds of $58 million and $67 million , respectively. Since inception in June 2016 through June 30, 2019 , we issued an aggregate of 7,085,332 common units under our ATM programs, generating net proceeds of $361 million , after broker commissions of $4 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.

Contingencies

Contingencies	6 Months Ended
	Jun. 30, 2019
Contingencies [Abstract]
Contingencies	Note 11—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 June 30, 2019 , and December 31, 2018 , we did not have any material accrued contingent liabilities associated with litigation matters. Indemnification and Excluded Liabilities Under our amended omnibus agreement and pursuant to the terms of various agreements under which we acquired assets from Phillips 66, Phillips 66 will indemnify us, or assume responsibility, for certain environmental liabilities, tax liabilities, litigation and any other liabilities attributable to the ownership or operation of the assets contributed to us and that arose prior to the effective date of each acquisition. These indemnifications and exclusions from liability have, in some cases, time limits and deductibles. When Phillips 66 performs under any of these indemnifications or exclusions from liability, we recognize noncash expenses and associated noncash capital contributions from our General Partner, as these are considered liabilities paid for by a principal unitholder.

Cash Flow Information

Cash Flow Information	6 Months Ended
	Jun. 30, 2019
Supplemental Cash Flow Information [Abstract]
Cash Flow Information	Note 12—Cash Flow Information Capital Expenditures and Investments Our capital expenditures and investments consisted of: Millions of Dollars Six Months Ended 2019 2018 Cash capital expenditures and investments $ 759 234 Change in capital expenditure accruals (13 ) 14 Total capital expenditures and investments $ 746 248

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2019
Related Party Transactions [Abstract]
Related Party Transactions	Note 13—Related Party Transactions Commercial Agreements We have entered into long-term, fee-based commercial agreements with Phillips 66 to provide transportation, terminaling, storage, stevedoring, fractionation, processing, and rail terminal services. Under these agreements, Phillips 66 commits to provide us with minimum transportation, throughput or storage volumes, or minimum monthly service fees. If Phillips 66 does not meet its minimum volume commitments, Phillips 66 pays 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 certain operational services 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 Six Months Ended 2019 2018 2019 2018 Operating and maintenance expenses $ 50 50 155 115 General and administrative expenses 16 15 33 30 Total $ 66 65 188 145 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 in support of our operating assets. Additionally, we pay Phillips 66 for insurance services provided to us, and recoveries under these policies are recorded as an offset to our expenses. Operating and maintenance expenses also include volumetric gains and losses associated with volumes transported by Phillips 66. Other related party balances were included in the following line items on our consolidated balance sheet, all of which were related to commercial agreements with Phillips 66: Millions of Dollars June 30 December 31 Prepaid expenses and other current assets $ 4 4 Other assets 44 — Deferred revenues 16 60 Other current liabilities 1 — Other liabilities 70 18 Equity Affiliate Guarantee In June 2019, we issued a guarantee for 42.25% of the third-party term loan facility for Gray Oak. See Note 6—Equity Investments and Loans , for additional information.

Subsequent Event

Subsequent Event	6 Months Ended
	Jun. 30, 2019
Subsequent Events [Abstract]
Subsequent Event	Note 14—Subsequent Event On July 24, 2019, we executed a definitive agreement to eliminate all of Phillips 66’s IDRs and its general partner economic interest in exchange for 101 million newly issued common units. Pursuant to the definitive agreement, the IDRs will be eliminated and the general partner economic interest will be converted into a non-economic general partner interest. After the transaction closes, Phillips 66 will own approximately 170 million PSXP common units, representing approximately 75% of our outstanding common units. As a result of the transaction, the General Partner’s negative equity balance of approximately $1.3 billion will transfer to Phillips 66’s limited partner equity account. The transaction is scheduled to close on August 1, 2019.

Changes in Accounting Princip_2

Changes in Accounting Principles (Policies)	6 Months Ended
	Jun. 30, 2019
Changes in Accounting Principles [Abstract]
New Accounting Pronouncements	Effective January 1, 2019, we early adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which amends the impairment model to utilize an expected loss methodology in place of the incurred loss methodology for financial instruments and off-balance sheet credit exposures. The amendment requires entities to consider a broader range of information to estimate expected credit losses, which may result in earlier recognition of losses. The adoption of the ASU did not have a material impact on our consolidated financial statements. Effective January 1, 2019, we adopted ASU 2016-02, “Leases (Topic 842)” using the modified retrospective transition method. The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and corresponding lease liability on the consolidated balance sheet for all operating leases with terms longer than 12 months. Leases will continue to be classified as either finance or operating, with classification affecting the pattern of expense recognition in the consolidated income statement. We elected the package of practical expedients that allowed us to carry forward the determination of whether an arrangement contains a lease and lease classification, as well as our accounting for initial direct costs for existing contracts. We recorded a noncash cumulative effect adjustment to our opening consolidated balance sheet as of January 1, 2019, to record an aggregate operating lease ROU asset and a corresponding lease liability of $45 million . See Note 5—Lease Assets and Liabilities , for the new lease disclosures required by this ASU for lessees. For arrangements where we are the lessor, effective for periods after January 1, 2019, we elected to account for lease and service elements of contracts classified as leases on a combined basis under the provisions of ASU No. 2016-02, except for leases of processing-type assets, which contain non-ratable fees related to turnaround activity. For these types of leases, we continued to separate the lease and service elements based on relative standalone prices and applied the new lease standard to the lease element and the revenue standard to the service element. We recorded a noncash cumulative effect adjustment of $1 million to decrease our opening equity balance as of January 1, 2019. See Note 4—Operating Revenues

Net Income Per Limited Partne_2

Net Income Per Limited Partner Unit (Policies)	6 Months Ended
	Jun. 30, 2019
Partners' Capital Notes [Abstract]
Earnings Per Share	Net income per limited partner unit applicable to common units is computed by dividing the limited partners’ interest in net income 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 June 30, 2019 , the classes of participating securities included common units, general partner units and incentive distribution rights (IDRs). For the three and six months ended June 30, 2019 and 2018 , our preferred units are potentially dilutive securities and were dilutive to net income per limited partner unit.

Operating Revenues (Tables)

Operating Revenues (Tables)	6 Months Ended
	Jun. 30, 2019
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	Millions of Dollars Three Months Ended Six Months Ended 2019 2018 2019 2018 Pipelines $ 117 111 226 213 Terminals 39 38 79 77 Storage, processing and other revenues 107 105 260 220 Total operating revenues $ 263 254 565 510 Millions of Dollars Three Months Ended Six Months Ended 2019 2018 2019 2018 Lease revenues $ 214 143 471 287 Service revenues 49 111 94 223 Total operating revenues $ 263 254 565 510
Accounts Receivable	Millions of Dollars June 30 2019 December 31 2018 Lease receivables $ 69 53 Service receivables 19 41 Other receivables — 1 Total accounts receivables $ 88 95
Deferred Revenues	Millions of Dollars June 30 2019 December 31 2018 Deferred lease revenues $ 42 73 Deferred service revenues 1 6 Total deferred revenues $ 43 79
Schedule of Future Minimum Payments Receivable	Millions of Dollars Remainder of 2019 $ 325 2020 644 2021 639 2022 627 2023 585 Remaining years 1,570 Total future minimum lease payments from customers $ 4,390
Expected Timing of Satisfaction	Millions of Dollars Remainder of 2019 $ 72 2020 139 2021 131 2022 130 2023 130 Remaining years 754 Total future service revenues $ 1,356

Lease Assets and Liabilities (T

Lease Assets and Liabilities (Tables)	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
Operating lease, liability	Millions of Dollars Remainder of 2019 $ 2 2020 3 2021 3 2022 3 2023 3 Remaining years 93 Future minimum lease payments 107 Amount representing interest or discounts (63 ) Total lease liabilities 44 Short-term lease liabilities (1 ) Long-term lease liabilities $ 43

Equity Investments and Loans (T

Equity Investments and Loans (Tables)	6 Months Ended
	Jun. 30, 2019
Equity Method Investments and Joint Ventures [Abstract]
Schedule of Equity Investments	Millions of Dollars Three Months Ended Six Months Ended 2019 2018 2019 2018 Bakken Pipeline $ 58 39 109 71 Bayou Bridge 8 3 12 8 Sand Hills 38 31 74 56 Southern Hills 11 9 24 16 Explorer 11 8 14 24 Gray Oak — — — — Paradigm 3 2 6 4 Phillips 66 Partners Terminal 6 6 12 15 South Texas Gateway Terminal — — — — STACK 2 2 5 4 Total equity in earnings of affiliates $ 137 100 256 198 Millions of Dollars Percentage Ownership June 30 December 31 Dakota Access, LLC and Energy Transfer Crude Oil Company, LLC (Bakken Pipeline) 25.00 % $ 590 608 Bayou Bridge Pipeline, LLC (Bayou Bridge) 40.00 296 277 DCP Sand Hills Pipeline, LLC (Sand Hills) 33.34 600 601 DCP Southern Hills Pipeline, LLC (Southern Hills) 33.34 209 206 Explorer Pipeline Company (Explorer) 21.94 107 115 Gray Oak Pipeline, LLC (Gray Oak) 65.00 745 288 Paradigm Pipeline LLC (Paradigm) 50.00 145 145 Phillips 66 Partners Terminal LLC (Phillips 66 Partners Terminal) 70.00 70 71 South Texas Gateway Terminal LLC (South Texas Gateway Terminal) 25.00 36 20 STACK Pipeline LLC (STACK) 50.00 114 117 Total equity investments $ 2,912 2,448

Net Income Per Limited Partne_3

Net Income Per Limited Partner Unit (Tables)	6 Months Ended
	Jun. 30, 2019
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 Six Months Ended 2019 2018 2019 2018 Net income $ 233 186 431 358 Less: General partner’s distributions declared (including IDRs)* 70 57 139 108 Limited partners’ distributions declared on preferred units* 9 10 19 19 Limited partners’ distributions declared on common units* 107 91 212 179 Distributions less than net income $ 47 28 61 52 *Distributions declared attributable to the indicated periods. Limited Partners’ Common Units General Partner (including IDRs) Limited Partners’ Preferred Units Total Three Months Ended June 30, 2019 Net income (millions) : Distributions declared $ 107 70 9 186 Distributions less than net income 46 1 — 47 Net income (basic) 153 71 9 233 Dilutive effect of preferred units* 6 Net income (diluted) $ 159 Weighted-average units outstanding—basic 124,824,010 Dilutive effect of preferred units* 13,819,791 Weighted-average units outstanding—diluted 138,643,801 Net income per limited partner unit—basic (dollars) $ 1.23 Net income per limited partner unit—diluted (dollars) 1.15 Three Months Ended June 30, 2018 Net income (millions) : Distributions declared $ 91 57 10 158 Distributions less than (more than) net income 30 (2 ) — 28 Net income (basic) 121 55 10 186 Dilutive effect of preferred units* 7 Net income (diluted) $ 128 Weighted-average units outstanding—basic 122,188,646 Dilutive effect of preferred units* 13,819,791 Weighted-average units outstanding—diluted 136,008,437 Net income per limited partner unit—basic (dollars) $ 0.99 Net income per limited partner unit—diluted (dollars) 0.94 *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) Limited Partners’ Preferred Units Total Six Months Ended June 30, 2019 Net income (millions) : Distributions declared $ 212 139 19 370 Distributions less than net income 60 1 — 61 Net income (basic) 272 140 19 431 Dilutive effect of preferred units* 14 Net income (diluted) $ 286 Weighted-average units outstanding—basic 124,542,536 Dilutive effect of preferred units* 13,819,791 Weighted-average units outstanding—diluted 138,362,327 Net income per limited partner unit—basic (dollars) $ 2.19 Net income per limited partner unit—diluted (dollars) 2.07 Six Months Ended June 30, 2018 Net income (millions) : Distributions declared $ 179 108 19 306 Distributions less than net income 52 — — 52 Net income (basic) 231 108 19 358 Dilutive effect of preferred units* 14 Net income (diluted) $ 245 Weighted-average units outstanding—basic 121,900,683 Dilutive effect of preferred units* 13,819,791 Weighted-average units outstanding—diluted 135,720,474 Net income per limited partner unit—basic (dollars) $ 1.89 Net income per limited partner unit—diluted (dollars) 1.80 *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.

Properties, Plants and Equipm_2

Properties, Plants and Equipment (Tables)	6 Months Ended
	Jun. 30, 2019
Property, Plant and Equipment [Abstract]
Summary of Property, Plant and Equipment	Millions of Dollars June 30 December 31 Land $ 19 19 Buildings and improvements 92 89 Pipelines and related assets * 1,405 1,398 Terminals and related assets * 717 710 Rail racks and related assets * 137 137 Processing and related assets * 889 842 Caverns and related assets * 585 584 Construction-in-progress 314 216 Gross PP&E 4,158 3,995 Accumulated depreciation (1,000 ) (943 ) Net PP&E $ 3,158 3,052 *Assets for which we are the lessor.

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
Schedule of Debt	Millions of Dollars June 30 December 31 2.646% Senior Notes due February 2020 $ 300 300 3.605% Senior Notes due February 2025 500 500 3.550% Senior Notes due October 2026 500 500 3.750% Senior Notes due March 2028 500 500 4.680% Senior Notes due February 2045 450 450 4.900% Senior Notes due October 2046 625 625 Term loans due March 2020 at 3.167% at June 30, 2019 400 — Tax-exempt bonds due April 2020 and April 2021 at 2.105% and 1.885% at June 30, 2019, and December 31, 2018, respectively 75 75 Revolving credit facility due January 2019 at 3.669% at December 31, 2018 — 125 Debt at face value 3,350 3,075 Net unamortized discounts and debt issuance costs (26 ) (27 ) Total debt 3,324 3,048 Short-term debt (150 ) (50 ) Long-term debt $ 3,174 2,998

Cash Flow Information (Tables)

Cash Flow Information (Tables)	6 Months Ended
	Jun. 30, 2019
Supplemental Cash Flow Information [Abstract]
Summary of Capital Expenditures and Noncash Investing and Financing Activities	Millions of Dollars Six Months Ended 2019 2018 Cash capital expenditures and investments $ 759 234 Change in capital expenditure accruals (13 ) 14 Total capital expenditures and investments $ 746 248

Related Party Transactions (Tab

Related Party Transactions (Tables)	6 Months Ended
	Jun. 30, 2019
Related Party Transactions [Abstract]
Summary of Related Party Transactions	Millions of Dollars June 30 December 31 Prepaid expenses and other current assets $ 4 4 Other assets 44 — Deferred revenues 16 60 Other current liabilities 1 — Other liabilities 70 18 Millions of Dollars Three Months Ended Six Months Ended 2019 2018 2019 2018 Operating and maintenance expenses $ 50 50 155 115 General and administrative expenses 16 15 33 30 Total $ 66 65 188 145

Description of the Business (De

Description of the Business (Details)	Jun. 30, 2019refinery
Phillips 66
Property, Plant and Equipment [Line Items]
Number of refineries	9

Changes in Accounting Princip_3

Changes in Accounting Principles (Details) - USD ($) $ in Millions	Jun. 30, 2019	Jan. 01, 2019	Apr. 01, 2018	Jan. 01, 2018
Item Effected [Line Items]
ROU asset	$ 44	$ 45
Lease, liability	$ 44	45
Cumulative effect of accounting change		(1)	$ 1	$ 31
Accounting Standards Update 2014-09
Item Effected [Line Items]
Cumulative effect of accounting change		$ (1)

Operating Revenues (Revenues Di

Operating Revenues (Revenues Disaggregated) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Operating revenues	$ 263	$ 254	$ 565	$ 510
Pipelines
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Operating revenues	117	111	226	213
Terminals
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Operating revenues	39	38	79	77
Storage, processing and other revenues
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Operating revenues	$ 107	$ 105	$ 260	$ 220

Operating Revenues (Narrative)

Operating Revenues (Narrative) (Details)	Jun. 30, 2019	Jun. 30, 2019
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Customer contracts, average remaining duration	11 years
Minimum
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Customer contracts, term		5 years
Maximum
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Customer contracts, term		15 years

Operating Revenues (Operating R

Operating Revenues (Operating Revenues) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Operating revenues	$ 263	$ 254	$ 565	$ 510
Lease revenues
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Operating revenues	214	143	471	287
Service revenues
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Operating revenues	$ 49	$ 111	$ 94	$ 223

Operating Revenues (Accounts Re

Operating Revenues (Accounts Receivable) (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Revenue from External Customer [Line Items]
Accounts receivable—third parties	$ 88	$ 95
Lease receivables
Revenue from External Customer [Line Items]
Accounts receivable—third parties	69	53
Service revenues
Revenue from External Customer [Line Items]
Accounts receivable—third parties	19	41
Other receivables
Revenue from External Customer [Line Items]
Accounts receivable—third parties	$ 0	$ 1

Operating Revenues (Deferred Re

Operating Revenues (Deferred Revenue) (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Revenue from External Customer [Line Items]
Total deferred revenues	$ 43	$ 79
Lease revenues
Revenue from External Customer [Line Items]
Total deferred revenues	42	73
Service revenues
Revenue from External Customer [Line Items]
Total deferred revenues	$ 1	$ 6

Operating Revenues (Schedule of

Operating Revenues (Schedule of Future Minimum Operating Lease Income) (Details) $ in Millions	Jun. 30, 2019USD ($)
Revenue from Contract with Customer [Abstract]
Remainder of 2019	$ 325
2020	644
2021	639
2022	627
2023	585
Remaining years	1,570
Total future minimum lease payments from customers	$ 4,390

Operating Revenues (Performance

Operating Revenues (Performance Obligations) (Details) $ in Millions	Jun. 30, 2019USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, amount	$ 72
Revenue, remaining performance obligation, expected timing of satisfaction, period	6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, amount	$ 139
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]
Remaining performance obligation, amount	$ 131
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]
Remaining performance obligation, amount	$ 130
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, amount	$ 130
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, amount	$ 1,356
Revenue, remaining performance obligation, expected timing of satisfaction, period

Lease Assets and Liabilities (N

Lease Assets and Liabilities (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019	Jan. 01, 2019
Leases [Abstract]
ROU asset	$ 44	$ 44	$ 45
Operating lease cost	$ 1	$ 1
Weighted average remaining lease term	36 years	36 years
Weighted average discount rate	5.90%	5.90%

Lease Assets and Liabilities (F

Lease Assets and Liabilities (Future Minimum Lease Payments) (Details) - USD ($) $ in Millions	Jun. 30, 2019	Jan. 01, 2019
Leases [Abstract]
Remainder of 2019	$ 2
2020	3
2021	3
2022	3
2023	3
Remaining years	93
Future minimum lease payments	107
Amount representing interest or discounts	(63)
Total lease liabilities	44	$ 45
Short-term lease liabilities	(1)
Long-term lease liabilities	$ 43

Equity Investments and Loans (S

Equity Investments and Loans (Schedule of Carrying Value Equity Investments) (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Schedule of Equity Method Investments [Line Items]
Carrying Value	$ 2,912	$ 2,448
Dakota Access, LLC and Energy Transfer Crude Oil Company, LLC (Bakken Pipeline)
Schedule of Equity Method Investments [Line Items]
Percentage Ownership	25.00%
Carrying Value	$ 590	608
Bayou Bridge Pipeline, LLC (Bayou Bridge)
Schedule of Equity Method Investments [Line Items]
Percentage Ownership	40.00%
Carrying Value	$ 296	277
DCP Sand Hills Pipeline, LLC (Sand Hills)
Schedule of Equity Method Investments [Line Items]
Percentage Ownership	33.34%
Carrying Value	$ 600	601
DCP Southern Hills Pipeline, LLC (Southern Hills)
Schedule of Equity Method Investments [Line Items]
Percentage Ownership	33.34%
Carrying Value	$ 209	206
Explorer Pipeline Company (Explorer)
Schedule of Equity Method Investments [Line Items]
Percentage Ownership	21.94%
Carrying Value	$ 107	$ 115
Gray Oak Pipeline, LLC (Gray Oak)
Schedule of Equity Method Investments [Line Items]
Percentage Ownership	65.00%	75.00%
Carrying Value	$ 745	$ 288
Paradigm Pipeline LLC (Paradigm)
Schedule of Equity Method Investments [Line Items]
Percentage Ownership	50.00%
Carrying Value	$ 145	145
Phillips 66 Partners Terminal LLC (Phillips 66 Partners Terminal)
Schedule of Equity Method Investments [Line Items]
Percentage Ownership	70.00%
Carrying Value	$ 70	71
South Texas Gateway Terminal LLC (South Texas Gateway Terminal)
Schedule of Equity Method Investments [Line Items]
Percentage Ownership	25.00%
Carrying Value	$ 36	20
STACK Pipeline LLC (STACK)
Schedule of Equity Method Investments [Line Items]
Percentage Ownership	50.00%
Carrying Value	$ 114	$ 117

Equity Investments and Loans _2

Equity Investments and Loans (Schedule of Equity Investment Earnings (Losses) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Schedule of Equity Method Investments [Line Items]
Equity in earnings (losses) of affiliates	$ 137	$ 100	$ 256	$ 198
Dakota Access, LLC and Energy Transfer Crude Oil Company, LLC (Bakken Pipeline)
Schedule of Equity Method Investments [Line Items]
Equity in earnings (losses) of affiliates	58	39	109	71
Bayou Bridge Pipeline, LLC (Bayou Bridge)
Schedule of Equity Method Investments [Line Items]
Equity in earnings (losses) of affiliates	8	3	12	8
DCP Sand Hills Pipeline, LLC (Sand Hills)
Schedule of Equity Method Investments [Line Items]
Equity in earnings (losses) of affiliates	38	31	74	56
DCP Southern Hills Pipeline, LLC (Southern Hills)
Schedule of Equity Method Investments [Line Items]
Equity in earnings (losses) of affiliates	11	9	24	16
Explorer Pipeline Company (Explorer)
Schedule of Equity Method Investments [Line Items]
Equity in earnings (losses) of affiliates	11	8	14	24
Gray Oak Pipeline, LLC (Gray Oak)
Schedule of Equity Method Investments [Line Items]
Equity in earnings (losses) of affiliates	0	0	0	0
Paradigm Pipeline LLC (Paradigm)
Schedule of Equity Method Investments [Line Items]
Equity in earnings (losses) of affiliates	3	2	6	4
Phillips 66 Partners Terminal LLC (Phillips 66 Partners Terminal)
Schedule of Equity Method Investments [Line Items]
Equity in earnings (losses) of affiliates	6	6	12	15
South Texas Gateway Terminal LLC (South Texas Gateway Terminal)
Schedule of Equity Method Investments [Line Items]
Equity in earnings (losses) of affiliates	0	0	0	0
STACK Pipeline LLC (STACK)
Schedule of Equity Method Investments [Line Items]
Equity in earnings (losses) of affiliates	$ 2	$ 2	$ 5	$ 4

Equity Investments and Loans (N

Equity Investments and Loans (Narrative) (Details) - USD ($)	2 Months Ended	6 Months Ended		37 Months Ended
	Feb. 28, 2019	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jul. 26, 2019	Mar. 31, 2019	Dec. 31, 2018	Apr. 30, 2018
Schedule of Equity Method Investments [Line Items]
Proceeds for other financing activities		$ 341,000,000	$ 0
Proceeds from sale of equity interest		81,000,000	$ 0
Proceeds from related party debt				$ 95,000,000
Equity investments		$ 2,912,000,000		$ 2,912,000,000			$ 2,448,000,000
Gray Oak Pipeline, LLC (Gray Oak)
Schedule of Equity Method Investments [Line Items]
Co-venture ownership interest								25.00%
Ownership interest acquired, percentage		65.00%		65.00%			75.00%
Effective ownership interest		42.25%		42.25%
Equity investments		$ 745,000,000		$ 745,000,000			$ 288,000,000
Dakota Access and ETCO
Schedule of Equity Method Investments [Line Items]
Maximum exposure, undiscounted						$ 631,000,000
South Texas Gateway Terminal LLC (South Texas Gateway Terminal)
Schedule of Equity Method Investments [Line Items]
Ownership interest acquired, percentage		25.00%		25.00%
Equity investments		$ 36,000,000		$ 36,000,000			$ 20,000,000
Common Control Transaction | Gray Oak Holdings LLC | Phillips 66 PDI | Gray Oak Pipeline, LLC (Gray Oak) | Phillips 66
Schedule of Equity Method Investments [Line Items]
Controlling interest acquired, percentage								100.00%
Gray Oak Pipeline, LLC (Gray Oak)
Schedule of Equity Method Investments [Line Items]
Maximum equity contribution, co-venture		1,230,000,000		$ 1,230,000,000
Third Party | Gray Oak Pipeline, LLC (Gray Oak)
Schedule of Equity Method Investments [Line Items]
Percentage of ownership	10.00%
Third Party | Gray Oak Holdings LLC
Schedule of Equity Method Investments [Line Items]
Percentage of ownership							35.00%
Dakota Access and ETCO
Schedule of Equity Method Investments [Line Items]
Maximum exposure, undiscounted, co-venturers						2,525,000,000
Gray Oak Holdings LLC | Third Party
Schedule of Equity Method Investments [Line Items]
Proceeds for other financing activities		$ 341,000,000
Proceeds from sale of equity interest	$ 81,000,000
Variable Interest Entity, Primary Beneficiary | Gray Oak Pipeline, LLC (Gray Oak)
Schedule of Equity Method Investments [Line Items]
Ownership interest acquired, percentage		42.25%		42.25%
Maximum exposure		$ 556,000,000		$ 556,000,000
Guarantor Obligations, Current Carrying Value		233,000,000		233,000,000
Maximum loss exposure, amount		978,000,000		978,000,000
Equity investments		745,000,000		745,000,000
Variable Interest Entity, Primary Beneficiary | Gray Oak Pipeline, LLC (Gray Oak) | Gray Oak Pipeline, LLC (Gray Oak)
Schedule of Equity Method Investments [Line Items]
Guarantor Obligations, Current Carrying Value		$ 551,000,000		$ 551,000,000
Subsequent Event | Gray Oak Pipeline, LLC (Gray Oak)
Schedule of Equity Method Investments [Line Items]
Maximum equity contribution, co-venture					$ 1,317,000,000
Senior Notes | Dakota Access, LLC
Schedule of Equity Method Investments [Line Items]
Debt instrument, face amount						$ 2,500,000,000

Net Income Per Limited Partne_4

Net Income Per Limited Partner Unit (Schedule of Earnings Per unit of our Limited Partners) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Limited Partners' Capital Account [Line Items]
Net income attributable to the Partnership	$ 233	$ 186	$ 431	$ 358
Distributions declared	186	158	370	306
Distributions less than net income	47	28	61	52
General Partner
Limited Partners' Capital Account [Line Items]
Net income attributable to the Partnership	71	55	140	108
Distributions declared	70	57	139	108
Preferred Units | Limited Partner
Limited Partners' Capital Account [Line Items]
Net income attributable to the Partnership	9	10	19	19
Distributions declared	9	10	19	19
Common Units | Limited Partner
Limited Partners' Capital Account [Line Items]
Net income attributable to the Partnership	153	121	272	231
Distributions declared	$ 107	$ 91	$ 212	$ 179

Net Income Per Limited Partne_5

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		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Partners' Capital [Abstract]
Distributions declared	$ 186	$ 158	$ 370	$ 306
Distributions less than net income	47	28	61	52
Net income (basic)	$ 233	$ 186	$ 431	$ 358
Dilutive effect of preferred units (in shares)	13,819,791	13,819,791	13,819,791	13,819,791
Common Units
Partners' Capital [Abstract]
Weighted-average units outstanding—basic (in shares)	124,824,010	122,188,646	124,542,536	121,900,683
Weighted-average units outstanding—diluted (in shares)	138,643,801	136,008,437	138,362,327	135,720,474
Net income attributable to the Partnership per limited partner unit—basic (in dollars per share)	$ 1.23	$ 0.99	$ 2.19	$ 1.89
Net income attributable to the Partnership per limited partner unit—diluted (in dollars per share)	$ 1.15	$ 0.94	$ 2.07	$ 1.80
General Partner
Partners' Capital [Abstract]
Distributions declared	$ 70	$ 57	$ 139	$ 108
Distributions less than net income	1	(2)	1	0
Net income (basic)	71	55	140	108
Limited Partner
Partners' Capital [Abstract]
Dilutive effect of preferred units	6	7	14	14
Limited Partner | Common Units
Partners' Capital [Abstract]
Distributions declared	107	91	212	179
Distributions less than net income	46	30	60	52
Net income (basic)	153	121	272	231
Net income (diluted)	159	128	286	245
Limited Partner | Preferred Units
Partners' Capital [Abstract]
Distributions declared	9	10	19	19
Distributions less than net income	0	0	0	0
Net income (basic)	$ 9	$ 10	$ 19	$ 19

Net Income Per Limited Partne_6

Net Income Per Limited Partner Unit (Narrative) (Details)	Jul. 17, 2019$ / shares
Common Units | Cash Distribution | Subsequent Event
Subsequent Events [Abstract]
Quarterly cash distribution declared per limited partner unit (in dollars per share)	$ 0.855

Properties, Plants and Equipm_3

Properties, Plants and Equipment (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Gross PP&E	$ 4,158	$ 3,995
Accumulated depreciation	(1,000)	(943)
Net PP&E	3,158	3,052
Land
Property, Plant and Equipment [Line Items]
Gross PP&E	19	19
Buildings and improvements
Property, Plant and Equipment [Line Items]
Gross PP&E	92	89
Pipelines and related assets
Property, Plant and Equipment [Line Items]
Gross PP&E	1,405	1,398
Terminals and related assets
Property, Plant and Equipment [Line Items]
Gross PP&E	717	710
Rail racks and related assets
Property, Plant and Equipment [Line Items]
Gross PP&E	137	137
Processing and related assets
Property, Plant and Equipment [Line Items]
Gross PP&E	889	842
Caverns and related assets
Property, Plant and Equipment [Line Items]
Gross PP&E	585	584
Construction-in-progress
Property, Plant and Equipment [Line Items]
Gross PP&E	$ 314	$ 216

Debt (Summary of Long-Term Debt

Debt (Summary of Long-Term Debt) (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Debt at face value	$ 3,350	$ 3,075
Net unamortized discounts and debt issuance costs	(26)	(27)
Total debt	3,324	3,048
Short-term debt	(150)	(50)
Long-term debt	3,174	2,998
Term Loan Due March 2020
Debt Instrument [Line Items]
Term loan	$ 400	0
Interest rate, stated percentage	3.167%
Tax-Exempt Bonds
Debt Instrument [Line Items]
Long-term debt, gross	$ 75	$ 75
Interest rate, stated percentage	2.105%	1.885%
Senior Notes | 2.646% Senior Notes due February 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 February 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 October 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 March 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 February 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 October 2046
Debt Instrument [Line Items]
Long-term debt, gross	$ 625	$ 625
Interest rate, stated percentage	4.90%	4.90%
Revolving Credit Facility
Debt Instrument [Line Items]
Long-term line of credit	$ 0	$ 125
Debt, weighted average interest rate		3.669%

Debt (Narrative) (Details)

Debt (Narrative) (Details) - USD ($)	Jun. 30, 2019	Mar. 22, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Long-term debt	$ 3,174,000,000		$ 2,998,000,000
Fair Value, Inputs, Level 2 | Senior Notes
Debt Instrument [Line Items]
Debt instrument, fair value disclosure	2,962,000,000		2,660,000,000
Term Loan Due March 2020
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 400,000,000
Long-term debt	400,000,000		0
Senior Notes and Term Loan Due 2020 | Senior Notes
Debt Instrument [Line Items]
Long-term debt	575,000,000
Tax-Exempt Bonds | Fair Value, Inputs, Level 2
Debt Instrument [Line Items]
Debt instrument, fair value disclosure	475,000,000		200,000,000
Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity	750,000,000
Line of credit facility, outstanding	0		$ 125,000,000
Line of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 1,000,000

Equity (Details)

Equity (Details) - USD ($)	3 Months Ended		6 Months Ended		37 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019
Limited Partners' Capital Account [Line Items]
Number of common units issued in public offering (in shares)	212,336	1,152,119	834,368	1,340,934
At The Market Offering Program | Common Units
Limited Partners' Capital Account [Line Items]
Number of common units issued in public offering (in shares)	212,336	1,152,119	834,368	1,340,934	7,085,332
Issuance of common units	$ 10,000,000	$ 58,000,000	$ 42,000,000	$ 67,000,000	$ 361,000,000
Brokers commissions					4,000,000
Maximum | At The Market Offering Program | Common Units
Limited Partners' Capital Account [Line Items]
Maximum aggregate amount of continuous units issuance authorized	$ 250,000,000	$ 250,000,000	$ 250,000,000	$ 250,000,000	$ 250,000,000

Cash Flow Information (Details)

Cash Flow Information (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Capital Expenditures And Investments [Abstract]
Cash capital expenditures and investments	$ 759	$ 234
Change in capital expenditure accruals	(13)	14
Total capital expenditures and investments	$ 746	$ 248

Related Party Transactions (Sum

Related Party Transactions (Summary of Related Party Transactions) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Related Party Transactions [Abstract]
Operating and maintenance expenses	$ 50	$ 50	$ 155	$ 115
General and administrative expenses	16	15	33	30
Total	$ 66	$ 65	$ 188	$ 145

Related Party Transactions (Nar

Related Party Transactions (Narrative) (Details) $ in Millions	6 Months Ended
	Jun. 30, 2019USD ($)
Phillips 66 | Amended Omnibus Agreement | Phillips 66
Related party agreements and fees
Monthly operational and administrative support fee	$ 8
Gray Oak Pipeline, LLC (Gray Oak)
Related party agreements and fees
Effective ownership interest	42.25%

Related Party Transactions (Oth

Related Party Transactions (Other Related Party Balances) (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Related Party Transaction [Line Items]
Prepaid expenses and other current assets	$ 9	$ 20
Other assets	49	5
Deferred revenues	17	60
Other current liabilities	2	5
Other liabilities	96	42
Phillips 66
Related Party Transaction [Line Items]
Prepaid expenses and other current assets	4	4
Other assets	44	0
Deferred revenues	16	60
Other current liabilities	1	0
Other liabilities	$ 70	$ 18

Subsequent Event (Details)

Subsequent Event (Details) - Common Units - Forecast $ in Billions	Aug. 01, 2019USD ($)shares
Subsequent Event [Line Items]
Shares, issued (in shares)	101,000,000
Issuance of common units | $	$ 1.3
Phillips 66
Subsequent Event [Line Items]
Ownership interest (in shares)	170,000,000
Percentage of ownership	75.00%

Uncategorized Items - mlp-20196

Label	Element	Value
General Partner [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 1,000,000
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	0
Common Units [Member] | Public Designator [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	13,000,000
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	(1,000,000)
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	0
Common Units [Member] | Non-public Designator [Member] | Majority Shareholder [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	1,000,000
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 17,000,000