Phillips 66 Partners (PSXP) 10-Q 1 May 20 2020 Q1 Quarterly report Financial data

Cover Page

Cover Page	3 Months Ended
	Mar. 31, 2020shares
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2020
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	228,340,146
Amendment Flag	false
Entity Central Index Key	0001572910
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020

Consolidated Statement of Incom

Consolidated Statement of Income - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenues and Other Income
Operating revenues	$ 267	$ 302
Equity in earnings of affiliates	136	119
Other income	1	2
Total revenues and other income	404	423
Costs and Expenses
Operating and maintenance expenses	88	139
Depreciation	30	29
General and administrative expenses	17	18
Taxes other than income taxes	11	11
Interest and debt expense	29	27
Other expenses	2	0
Total costs and expenses	177	224
Income before income taxes	227	199
Income tax expense	1	1
Net Income	226	198
Less: Preferred unitholders’ interest in net income	10	10
Less: General partner’s interest in net income	0	69
Limited partners’ interest in net income	$ 216	$ 119
Common Units
Net Income Per Limited Partner Unit (dollars)
Common units - basic (in dollars per share)	$ 0.95	$ 0.96
Common units - diluted (in dollars per share)	$ 0.93	$ 0.92
Weighted-Average Limited Partner Units Outstanding (thousands)
Common units—basic (in shares)	228,312,261	124,257,933
Common units—diluted (in shares)	242,132,000	138,078,000
Affiliated Entity
Revenues and Other Income
Operating revenues	$ 258	$ 296
Third Party
Revenues and Other Income
Operating revenues	$ 9	$ 6

Consolidated Statement of Compr

Consolidated Statement of Comprehensive Income - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 226	$ 198
Defined benefit plans
Plan sponsored by equity affiliates, net of income taxes	0	0
Other comprehensive income	0	0
Comprehensive Income	$ 226	$ 198

Consolidated Balance Sheet

Consolidated Balance Sheet - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Assets
Cash and cash equivalents	$ 92	$ 286
Accounts receivable—related parties	91	101
Accounts receivable—third parties	4	4
Materials and supplies	13	13
Prepaid expenses and other current assets	14	10
Total current assets	214	414
Equity investments	3,136	2,961
Net properties, plants and equipment	3,410	3,349
Goodwill	185	185
Other assets	52	52
Total Assets	6,997	6,961
Liabilities
Accounts payable—related parties	24	19
Accounts payable—third parties	75	84
Accrued interest	46	42
Deferred revenues	19	16
Short-term debt	25	25
Accrued property and other taxes	12	10
Other current liabilities	3	3
Total current liabilities	204	199
Long-term debt	3,491	3,491
Obligation from equity interest transfer	356	343
Other liabilities	93	94
Total Liabilities	4,144	4,127
Equity
Accumulated other comprehensive loss	(1)	(1)
Total Equity	2,853	2,834
Total Liabilities and Equity	6,997	6,961
Public | Preferred Units
Equity
Preferred unitholders (2020 and 2019—13,819,791 units issued and outstanding)	747	746
Total Equity	747	746
Public | Common Units
Equity
Common unitholders	2,723	2,717
Total Equity	2,723	2,717
Non-public | Common Units | Phillips 66
Equity
Common unitholders	(616)	(628)
Total Equity	$ (616)	$ (628)

Consolidated Balance Sheet (Par

Consolidated Balance Sheet (Parenthetical) - shares	Mar. 31, 2020	Dec. 31, 2019
General partner—Phillips 66 units issued (in shares)	0	0
General partner—Phillips 66 units outstanding (in shares)	0	0
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)	58,580,009	58,539,439
Units outstanding (in shares)	58,580,009
Common Units | Non-public | Phillips 66
Units issued (in shares)	169,760,137	169,760,137
Units outstanding (in shares)	169,760,137	169,760,137

Consolidated Statement of Cash

Consolidated Statement of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash Flows From Operating Activities
Net income	$ 226	$ 198
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation	30	29
Undistributed equity earnings	4	2
Other	2	10
Working capital adjustments
Accounts receivable	10	4
Prepaid expenses and other current assets	(4)	9
Accounts payable	(3)	(4)
Accrued interest	4	(5)
Deferred revenues	3	(40)
Other accruals	2	2
Net Cash Provided by Operating Activities	274	205
Cash Flows From Investing Activities
Cash capital expenditures and investments	(236)	(634)
Liberty acquisition	(75)
Return of investment from equity affiliates	38	20
Proceeds from sale of equity interest	0	81
Net Cash Used in Investing Activities	(273)	(533)
Cash Flows From Financing Activities
Net proceeds from equity interest transfer	12	341
Issuance of debt	0	725
Repayment of debt	0	(585)
Issuance of common units	2	32
Other distributions to Phillips 66	0	(4)
Net Cash Provided by (Used in) Financing Activities	(195)	329
Net Change in Cash and Cash Equivalents	(194)	1
Cash and cash equivalents at beginning of period	286	1
Cash and Cash Equivalents at End of Period	92	2
Preferred Units
Cash Flows From Financing Activities
Quarterly distributions to unitholders	(9)	(9)
Public | Common Units
Cash Flows From Financing Activities
Quarterly distributions to unitholders	(51)	(46)
General Partner
Cash Flows From Financing Activities
Quarterly distributions to unitholders	0	(67)
Phillips 66 | Non-public | Common Units
Cash Flows From Financing Activities
Quarterly distributions to unitholders	$ (149)	$ (58)

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, 2018	$ 2,509	$ (1)	$ (1,313)	$ 746	$ 2,485	$ 592
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common units	32				32
Net income	198		69	10	53	66
Quarterly cash distributions to unitholders and General Partner	(180)		(67)	(9)	(46)	(58)
Other contributions to Phillips 66	(4)		(4)
Ending Balance at Mar. 31, 2019	$ 2,554	(1)	$ (1,315)	$ 747	$ 2,523	$ 600
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)	622,032				622,032
Ending balance, Units (in shares) at Mar. 31, 2019	141,025,929		2,480,051	13,819,791	55,965,950	68,760,137
Beginning Balance at Dec. 31, 2019	$ 2,834	(1)	$ 0	$ 746	$ 2,717	$ (628)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common units	2				2
Net income	226			10	55	161
Quarterly cash distributions to unitholders and General Partner	(209)		$ 0	(9)	(51)	(149)
Ending Balance at Mar. 31, 2020	$ 2,853	$ (1)		$ 747	$ 2,723	$ (616)
Beginning balance, Units (in shares) at Dec. 31, 2019	242,119,367		0	13,819,791	58,539,439	169,760,137
Units Outstanding [Roll Forward]
Units issued in public equity offerings (in shares)	40,570				40,570
Ending balance, Units (in shares) at Mar. 31, 2020	242,159,937		0	13,819,791	58,580,009	169,760,137

Consolidated Statement of Cha_2

Consolidated Statement of Changes in Equity (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Stockholders' Equity [Abstract]
Cash distributions per common unit (in dollars per share)	$ 0.875	$ 0.835

Description of the Business

Description of the Business	3 Months Ended
	Mar. 31, 2020
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. Our operations consist of one reportable segment. 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	3 Months Ended
	Mar. 31, 2020
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 2019 Annual Report on Form 10-K. The results of operations for the three months ended March 31, 2020

Operating Revenues

Operating Revenues	3 Months Ended
	Mar. 31, 2020
Revenue from Contract with Customer [Abstract]
Operating Revenues	Note 3—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 2020 2019 Pipelines $ 111 109 Terminals 43 40 Storage, processing and other revenues 113 153 Total operating revenues $ 267 302 The majority of our agreements with Phillips 66 are considered operating leases under GAAP. The lease’s classification as either an operating or financing lease requires judgment in assessing the contract’s lease and service components and in determining the asset’s fair value. We have elected to account for lease and service elements of contracts classified as leases on a combined basis, except for leases of processing-type assets, which contain non-ratable fees related to turnaround activity. For these types of leases, we continue 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. Total operating revenues disaggregated by lease and service revenues were as follows: Millions of Dollars Three Months Ended 2020 2019 Lease revenues $ 218 257 Service revenues 49 45 Total operating revenues $ 267 302 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 March 31 December 31 Lease receivables $ 74 87 Service receivables 20 18 Other receivables 1 — Total accounts receivable $ 95 105 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” line items on our consolidated balance sheet. Total deferred revenues under our lease and service agreements were as follows: Millions of Dollars March 31 December 31 Deferred lease revenues $ 41 41 Deferred service revenues 2 1 Total deferred revenues $ 43 42 Future Minimum Lease Payments from Customers At March 31, 2020 , future minimum payments to be received under our lease agreements with customers were estimated to be: Millions of Dollars Remainder of 2020 $ 527 2021 698 2022 685 2023 642 2024 521 Remaining years 1,386 Total future minimum lease payments from customers $ 4,459 Remaining 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 March 31, 2020 , 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 2020 $ 109 2021 137 2022 136 2023 136 2024 116 Remaining years 671 Total future service revenues $ 1,305

Equity Investments and Loans

Equity Investments and Loans	3 Months Ended
	Mar. 31, 2020
Equity Method Investments and Joint Ventures [Abstract]
Equity Investments and Loans	Note 4—Equity Investments and Loans Equity Investments The following table summarizes the carrying value of our equity investments: Millions of Dollars Percentage Ownership March 31 December 31 Dakota Access, LLC and Energy Transfer Crude Oil Company, LLC (Bakken Pipeline) 25.00 % $ 595 592 Bayou Bridge Pipeline, LLC (Bayou Bridge) 40.00 296 294 DCP Sand Hills Pipeline, LLC (Sand Hills) 33.34 598 595 DCP Southern Hills Pipeline, LLC (Southern Hills) 33.34 218 215 Explorer Pipeline Company (Explorer) 21.94 102 105 Gray Oak Pipeline, LLC 65.00 799 759 Liberty Pipeline LLC (Liberty) 50.00 103 — Paradigm Pipeline LLC (Paradigm) 50.00 143 143 Phillips 66 Partners Terminal LLC (Phillips 66 Partners Terminal) 70.00 67 70 South Texas Gateway Terminal LLC (South Texas Gateway Terminal) 25.00 102 74 STACK Pipeline LLC (STACK) 50.00 113 114 Total equity investments $ 3,136 2,961 Earnings from our equity investments were as follows: Millions of Dollars Three Months Ended 2020 2019 Bakken Pipeline $ 57 51 Bayou Bridge 10 4 Sand Hills 41 36 Southern Hills 11 13 Explorer 7 3 Gray Oak Pipeline, LLC 5 — Liberty — — Paradigm 4 3 Phillips 66 Partners Terminal — 6 South Texas Gateway Terminal — — STACK 1 3 Total equity in earnings of affiliates $ 136 119 Liberty In February 2020, we entered into a Purchase and Sale Agreement with Phillips 66 PDI to acquire its 50% interest in the Liberty Pipeline joint venture for $75 million . The purchase price reflected the reimbursement of project costs incurred by Phillips 66 prior to the effective date of the transaction. The transaction was funded through a combination of cash on hand and our revolving credit facility and closed on March 2, 2020. Liberty was formed to develop and construct the Liberty Pipeline system which, upon completion, will transport crude oil from the Rockies and Bakken production areas to Cushing, Oklahoma. On March 24, 2020, we and our co-venturer announced we are deferring the development and construction of the Liberty Pipeline system as a result of the current challenging business environment. Liberty is considered a variable interest entity (VIE) 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-venturer jointly direct the activities of Liberty that most significantly impact economic performance. At March 31, 2020, our maximum exposure to loss was $103 million , which represented the aggregate book value of our equity investment in Liberty. At March 31, 2020, Phillips 66 had an outstanding guarantee of $113 million to vendors for our proportionate share of the payment of certain purchase obligations of Liberty. Gray Oak Pipeline, LLC We have a consolidated holding company that owns 65% of Gray Oak Pipeline, LLC. After deducting a co-venturer’s pending acquisition of a 35% interest in the consolidated holding company, we have an effective ownership interest of 42.25% in Gray Oak Pipeline, LLC. Gray Oak Pipeline, LLC was formed to develop and construct the Gray Oak Pipeline which transports crude oil from the Permian and Eagle Ford to Texas Gulf Coast destinations that include Corpus Christi and the Sweeny area, including the Phillips 66 Sweeny Refinery, as well as access to the Houston market. On April 1, 2020, the Gray Oak Pipeline commenced full operations from West Texas to Texas Gulf Coast destinations. The Eagle Ford segment of the pipeline commenced operations later in April. Accordingly, the co-venturer’s 35% interest in the holding company is expected to be recharacterized from a long-term obligation to a noncontrolling interest on our consolidated balance sheet in the second quarter. Also at that time, the premium paid by the co-venturer will be recharacterized from a long-term obligation to a gain in our consolidated statement of income. For the three months ended March 31, 2020 , the co-venturer contributed an aggregate of $23 million to the holding company to fund its portion of Gray Oak Pipeline, LLC’s cash calls. Gray Oak Pipeline, LLC has a third-party term loan facility with a borrowing capacity of $1,379 million , inclusive of accrued interest. 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 Pipeline, LLC up to the total outstanding loan amount, plus any additional accrued interest and associated fees, if the term loan facility is fully utilized and Gray Oak Pipeline, LLC defaults on certain of its obligations thereunder. At March 31, 2020 , the term loan facility was fully utilized by Gray Oak Pipeline, LLC and our 42.25% proportionate exposure under the equity contribution agreement was $583 million . Gray Oak Pipeline, LLC is considered a VIE 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 Pipeline, LLC that most significantly impact economic performance. At March 31, 2020 , our maximum exposure to loss was $1,382 million , which represented our guarantee of the third-party term loan facility of $583 million and the aggregate book value of our equity method investment in Gray Oak Pipeline, LLC of $799 million . Bakken Pipeline In March 2019, a wholly owned subsidiary of Dakota Access, LLC (Dakota Access) closed an offering of $2,500 million aggregate principal amount of unsecured senior notes. Dakota Access and Energy Transfer Crude Oil Company, LLC (ETCO) have guaranteed repayment of the notes. In addition, we and our co-venturers in Dakota Access provided a Contingent Equity Contribution Undertaking (CECU) in conjunction with the notes offering. Under the CECU, if Dakota Access receives an unfavorable court ruling in the litigation related to certain disputed construction permits and Dakota Access determines that an equity contribution trigger event has occurred, the co-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 at March 31, 2020 . In March 2020, the court in such litigation requested an Environmental Impact Statement from the U.S. Army Corps of Engineers, and requested additional information to make a further decision regarding whether the Dakota Access Pipeline should be shut down while the Environmental Impact Statement is being prepared. Currently, this ruling does not have any immediate impact on the operations of Dakota Access and ETCO. Summarized financial information for 100% of Dakota Access is as follows: Millions of Dollars Three Months Ended 2020 2019 Revenues $ 258 236 Income before income taxes 186 157 Net income 186 157

Net Income Per Limited Partner

Net Income Per Limited Partner Unit	3 Months Ended
	Mar. 31, 2020
Partners' Capital Notes [Abstract]
Net Income Per Limited Partner Unit	Note 5—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. Prior to August 1, 2019 , we had more than one class of participating securities and used the two-class method to calculate net income per unit applicable to the limited partners. The classes of participating securities prior to August 1, 2019 , included common units, general partner units and incentive distribution rights (IDRs). Effective August 1, 2019 , common units are the only participating securities. For the three months ended March 31, 2020 and 2019 , 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 classes of participating securities 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. To the extent net income exceeds or is less than cash distributions declared, 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 2020 2019 Net income $ 226 198 Less: General partner’s distributions declared (including IDRs)* — 69 Limited partners’ distributions declared on preferred units* 10 10 Limited partners’ distributions declared on common units* 199 105 Distributions less than net income $ 17 14 *Distributions declared are attributable to the indicated periods. Limited Partners’ Common Units Limited Partners’ Preferred Units Total Three Months Ended March 31, 2020 Net income (millions) : Distributions declared $ 199 10 209 Distributions less than (more than) net income 17 — 17 Net income (basic) 216 10 226 Dilutive effect of preferred units 10 Net income (diluted) $ 226 Weighted-average units outstanding—basic 228,312,261 Dilutive effect of preferred units 13,819,791 Weighted-average units outstanding—diluted 242,132,052 Net income per limited partner unit—basic (dollars) $ 0.95 Net income per limited partner unit—diluted (dollars) 0.93 Limited Partners’ General Partner Limited Partners’ Total Three Months Ended March 31, 2019 Net income (millions) : Distributions declared $ 105 69 10 184 Distributions less than net income 14 — — 14 Net income (basic) 119 69 10 198 Dilutive effect of preferred units* 8 Net income (diluted) $ 127 Weighted-average units outstanding—basic 124,257,933 Dilutive effect of preferred units* 13,819,791 Weighted-average units outstanding—diluted 138,077,724 Net income per limited partner unit—basic (dollars) $ 0.96 Net income per limited partner unit—diluted (dollars) 0.92 *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 April 21, 2020 , the Board of Directors of our General Partner declared a quarterly cash distribution of $0.875 per common unit which, excluding distributions to holders of our preferred units, will result in a total distribution of $199 million attributable to the first quarter of 2020. This distribution is payable on May 14, 2020 , to unitholders of record as of May 1, 2020

Properties, Plants and Equipmen

Properties, Plants and Equipment	3 Months Ended
	Mar. 31, 2020
Property, Plant and Equipment [Abstract]
Properties, Plants and Equipment	Note 6—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 94 94 Pipelines and related assets * 1,447 1,424 Terminals and related assets * 761 741 Rail racks and related assets * 137 137 Processing and related assets * 1,047 1,041 Caverns and related assets * 585 585 Construction-in-progress 409 367 Gross PP&E 4,499 4,408 Accumulated depreciation (1,089 ) (1,059 ) Net PP&E $ 3,410 3,349 *Assets for which we are the lessor.

Debt

Debt	3 Months Ended
	Mar. 31, 2020
Debt Disclosure [Abstract]
Debt	Note 7—Debt Millions of Dollars March 31 December 31 2.450% Senior Notes due December 2024 $ 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 3.150% Senior Notes due December 2029 600 600 4.680% Senior Notes due February 2045 450 450 4.900% Senior Notes due October 2046 625 625 Tax-exempt bonds due April 2020 and April 2021 at 1.465% and 1.85% at 75 75 Debt at face value 3,550 3,550 Net unamortized discounts and debt issuance costs (34 ) (34 ) Total debt 3,516 3,516 Short-term debt (25 ) (25 ) Long-term debt $ 3,491 3,491 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 was $3,083 million and $3,650 million at March 31, 2020 , and December 31, 2019 , respectively. The fair value of our floating-rate debt approximated carrying value of $75 million at March 31, 2020 , and December 31, 2019 . At March 31, 2020 , and December 31, 2019 , no amount had been directly drawn under our $750 million revolving credit facility; however, $3 million and $1 million in letters of credit had been issued under this facility at March 31, 2020 , and December 31, 2019 , respectively. On April 1, 2020, we repaid at maturity a $25 million tranche of tax-exempt bonds that was included in short-term debt at March 31, 2020 .

Contingencies

Contingencies	3 Months Ended
	Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Note 8—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, 2020 , and December 31, 2019 , 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.

Equity

Equity	3 Months Ended
	Mar. 31, 2020
Equity [Abstract]
Equity	Note 9—Equity ATM Programs We have authorized an aggregate of $750 million under three $250 million continuous offerings of common units, or at-the-market (ATM) programs. The first two programs concluded in June 2018 and December 2019, respectively. For the three months ended March 31, 2020 , on a settlement date basis, we issued an aggregate of 40,570 common units under our ATM programs, generating net proceeds of $2 million . For the three months ended March 31, 2019 , we issued an aggregate of 622,032 common units under our ATM programs, generating net proceeds of $32 million . Since inception in June 2016 through March 31, 2020 , we issued an aggregate of 9,487,055 common units under our ATM programs, and generated net proceeds of $494 million , after broker commissions of $5 million and other costs of $3 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.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2020
Related Party Transactions [Abstract]
Related Party Transactions	Note 10—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 under an agreement, 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 provided 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. 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 pay Phillips 66 an operational and administrative support fee under the terms of our amended omnibus agreement in the amount of $8 million per month. 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. 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 2020 2019 Operating and maintenance expenses $ 48 105 General and administrative expenses 17 17 Total $ 65 122 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 March 31 December 31 Prepaid expenses and other current assets $ 12 7 Other assets 48 44 Deferred revenues 18 16 Other current liabilities 1 1 Other liabilities 68 70 Equity Affiliate Arrangements In March 2019, we and our co-venturers in Dakota Access provided a CECU in conjunction with an unsecured senior notes offering. See Note 4—Equity Investments and Loans , for additional information. In June 2019, we issued a guarantee through an equity contribution agreement for 42.25% of the third-party term loan facility for Gray Oak Pipeline, LLC. See Note 4—Equity Investments and Loans , for additional information.

Cash Flow Information

Cash Flow Information	3 Months Ended
	Mar. 31, 2020
Supplemental Cash Flow Information [Abstract]
Cash Flow Information	Note 11—Cash Flow Information Capital Expenditures and Investments Our capital expenditures and investments consisted of: Millions of Dollars Three Months Ended 2020 2019 Cash capital expenditures and investments $ 236 634 Change in capital expenditure accruals (2 ) (2 ) Total capital expenditures and investments $ 234 632

Net Income Per Limited Partne_2

Net Income Per Limited Partner Unit (Policies)	3 Months Ended
	Mar. 31, 2020
Partners' Capital Notes [Abstract]
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. Prior to August 1, 2019 , we had more than one class of participating securities and used the two-class method to calculate net income per unit applicable to the limited partners. The classes of participating securities prior to August 1, 2019 , included common units, general partner units and incentive distribution rights (IDRs). Effective August 1, 2019 , common units are the only participating securities. For the three months ended March 31, 2020 and 2019 , our preferred units are potentially dilutive securities and were dilutive to net income per limited partner unit.

Operating Revenues (Tables)

Operating Revenues (Tables)	3 Months Ended
	Mar. 31, 2020
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	Total operating revenues disaggregated by asset type were as follows: Millions of Dollars Three Months Ended 2020 2019 Pipelines $ 111 109 Terminals 43 40 Storage, processing and other revenues 113 153 Total operating revenues $ 267 302 Total operating revenues disaggregated by lease and service revenues were as follows: Millions of Dollars Three Months Ended 2020 2019 Lease revenues $ 218 257 Service revenues 49 45 Total operating revenues $ 267 302
Accounts Receivable	Total accounts receivable by revenue type was as follows: Millions of Dollars March 31 December 31 Lease receivables $ 74 87 Service receivables 20 18 Other receivables 1 — Total accounts receivable $ 95 105
Deferred Revenues	Total deferred revenues under our lease and service agreements were as follows: Millions of Dollars March 31 December 31 Deferred lease revenues $ 41 41 Deferred service revenues 2 1 Total deferred revenues $ 43 42
Schedule of Future Minimum Payments Receivable	At March 31, 2020 , future minimum payments to be received under our lease agreements with customers were estimated to be: Millions of Dollars Remainder of 2020 $ 527 2021 698 2022 685 2023 642 2024 521 Remaining years 1,386 Total future minimum lease payments from customers $ 4,459
Expected Timing of Satisfaction	At March 31, 2020 , 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 2020 $ 109 2021 137 2022 136 2023 136 2024 116 Remaining years 671 Total future service revenues $ 1,305

Equity Investments and Loans (T

Equity Investments and Loans (Tables)	3 Months Ended
	Mar. 31, 2020
Equity Method Investments and Joint Ventures [Abstract]
Schedule of Equity Investments	Summarized financial information for 100% of Dakota Access is as follows: Millions of Dollars Three Months Ended 2020 2019 Revenues $ 258 236 Income before income taxes 186 157 Net income 186 157 The following table summarizes the carrying value of our equity investments: Millions of Dollars Percentage Ownership March 31 December 31 Dakota Access, LLC and Energy Transfer Crude Oil Company, LLC (Bakken Pipeline) 25.00 % $ 595 592 Bayou Bridge Pipeline, LLC (Bayou Bridge) 40.00 296 294 DCP Sand Hills Pipeline, LLC (Sand Hills) 33.34 598 595 DCP Southern Hills Pipeline, LLC (Southern Hills) 33.34 218 215 Explorer Pipeline Company (Explorer) 21.94 102 105 Gray Oak Pipeline, LLC 65.00 799 759 Liberty Pipeline LLC (Liberty) 50.00 103 — Paradigm Pipeline LLC (Paradigm) 50.00 143 143 Phillips 66 Partners Terminal LLC (Phillips 66 Partners Terminal) 70.00 67 70 South Texas Gateway Terminal LLC (South Texas Gateway Terminal) 25.00 102 74 STACK Pipeline LLC (STACK) 50.00 113 114 Total equity investments $ 3,136 2,961 Earnings from our equity investments were as follows: Millions of Dollars Three Months Ended 2020 2019 Bakken Pipeline $ 57 51 Bayou Bridge 10 4 Sand Hills 41 36 Southern Hills 11 13 Explorer 7 3 Gray Oak Pipeline, LLC 5 — Liberty — — Paradigm 4 3 Phillips 66 Partners Terminal — 6 South Texas Gateway Terminal — — STACK 1 3 Total equity in earnings of affiliates $ 136 119

Net Income Per Limited Partne_3

Net Income Per Limited Partner Unit (Tables)	3 Months Ended
	Mar. 31, 2020
Partners' Capital Notes [Abstract]
Schedule of Distributions Declared, Partners Interest in Partnership Net Income and Net Income per Unit by Class	Net income earned by the Partnership is allocated between the classes of participating securities 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. To the extent net income exceeds or is less than cash distributions declared, 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 2020 2019 Net income $ 226 198 Less: General partner’s distributions declared (including IDRs)* — 69 Limited partners’ distributions declared on preferred units* 10 10 Limited partners’ distributions declared on common units* 199 105 Distributions less than net income $ 17 14 *Distributions declared are attributable to the indicated periods. Limited Partners’ Common Units Limited Partners’ Preferred Units Total Three Months Ended March 31, 2020 Net income (millions) : Distributions declared $ 199 10 209 Distributions less than (more than) net income 17 — 17 Net income (basic) 216 10 226 Dilutive effect of preferred units 10 Net income (diluted) $ 226 Weighted-average units outstanding—basic 228,312,261 Dilutive effect of preferred units 13,819,791 Weighted-average units outstanding—diluted 242,132,052 Net income per limited partner unit—basic (dollars) $ 0.95 Net income per limited partner unit—diluted (dollars) 0.93 Limited Partners’ General Partner Limited Partners’ Total Three Months Ended March 31, 2019 Net income (millions) : Distributions declared $ 105 69 10 184 Distributions less than net income 14 — — 14 Net income (basic) 119 69 10 198 Dilutive effect of preferred units* 8 Net income (diluted) $ 127 Weighted-average units outstanding—basic 124,257,933 Dilutive effect of preferred units* 13,819,791 Weighted-average units outstanding—diluted 138,077,724 Net income per limited partner unit—basic (dollars) $ 0.96 Net income per limited partner unit—diluted (dollars) 0.92 *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)	3 Months Ended
	Mar. 31, 2020
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 94 94 Pipelines and related assets * 1,447 1,424 Terminals and related assets * 761 741 Rail racks and related assets * 137 137 Processing and related assets * 1,047 1,041 Caverns and related assets * 585 585 Construction-in-progress 409 367 Gross PP&E 4,499 4,408 Accumulated depreciation (1,089 ) (1,059 ) Net PP&E $ 3,410 3,349 *Assets for which we are the lessor.

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2020
Debt Disclosure [Abstract]
Schedule of Debt	Millions of Dollars March 31 December 31 2.450% Senior Notes due December 2024 $ 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 3.150% Senior Notes due December 2029 600 600 4.680% Senior Notes due February 2045 450 450 4.900% Senior Notes due October 2046 625 625 Tax-exempt bonds due April 2020 and April 2021 at 1.465% and 1.85% at 75 75 Debt at face value 3,550 3,550 Net unamortized discounts and debt issuance costs (34 ) (34 ) Total debt 3,516 3,516 Short-term debt (25 ) (25 ) Long-term debt $ 3,491 3,491

Related Party Transactions (Tab

Related Party Transactions (Tables)	3 Months Ended
	Mar. 31, 2020
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 2020 2019 Operating and maintenance expenses $ 48 105 General and administrative expenses 17 17 Total $ 65 122 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 March 31 December 31 Prepaid expenses and other current assets $ 12 7 Other assets 48 44 Deferred revenues 18 16 Other current liabilities 1 1 Other liabilities 68 70

Cash Flow Information (Tables)

Cash Flow Information (Tables)	3 Months Ended
	Mar. 31, 2020
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 2020 2019 Cash capital expenditures and investments $ 236 634 Change in capital expenditure accruals (2 ) (2 ) Total capital expenditures and investments $ 234 632

Description of the Business (De

Description of the Business (Details)	3 Months Ended
	Mar. 31, 2020refinerysegment
Property, Plant and Equipment [Line Items]
Number of reportable segments | segment	1
Phillips 66
Property, Plant and Equipment [Line Items]
Number of refineries | refinery	9

Operating Revenues (Revenues Di

Operating Revenues (Revenues Disaggregated) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Operating revenues	$ 267	$ 302
Pipelines
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Operating revenues	111	109
Terminals
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Operating revenues	43	40
Storage, processing and other revenues
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Operating revenues	$ 113	$ 153

Operating Revenues (Operating R

Operating Revenues (Operating Revenues) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Operating revenues	$ 267	$ 302
Lease revenues
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Operating revenues	218	257
Service revenues
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Operating revenues	$ 49	$ 45

Operating Revenues (Accounts Re

Operating Revenues (Accounts Receivable) (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Revenue from External Customer [Line Items]
Total accounts receivable	$ 95	$ 105
Lease receivables
Revenue from External Customer [Line Items]
Total accounts receivable	74	87
Service revenues
Revenue from External Customer [Line Items]
Total accounts receivable	20	18
Other receivables
Revenue from External Customer [Line Items]
Total accounts receivable	$ 1	$ 0

Operating Revenues (Deferred Re

Operating Revenues (Deferred Revenue) (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Revenue from External Customer [Line Items]
Total deferred revenues	$ 43	$ 42
Lease revenues
Revenue from External Customer [Line Items]
Total deferred revenues	41	41
Service revenues
Revenue from External Customer [Line Items]
Total deferred revenues	$ 2	$ 1

Operating Revenues (Schedule of

Operating Revenues (Schedule of Future Minimum Operating Lease Income) (Details) $ in Millions	Mar. 31, 2020USD ($)
Revenue from Contract with Customer [Abstract]
Remainder of 2020	$ 527
2021	698
2022	685
2023	642
2024	521
Remaining years	1,386
Total future minimum lease payments from customers	$ 4,459

Operating Revenues (Narrative)

Operating Revenues (Narrative) (Details)	3 Months Ended
	Mar. 31, 2020
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 (Performance

Operating Revenues (Performance Obligations) (Details) $ in Millions	Mar. 31, 2020USD ($)
Revenue from Contract with Customer [Abstract]
Remaining performance obligation, amount	$ 1,305
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation, amount	$ 109
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period	9 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation, amount	$ 137
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
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 from Contract with Customer [Abstract]
Remaining performance obligation, amount	$ 136
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
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 from Contract with Customer [Abstract]
Remaining performance obligation, amount	$ 136
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
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 from Contract with Customer [Abstract]
Remaining performance obligation, amount	$ 116
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation, amount	$ 671
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period

Equity Investments and Loans (S

Equity Investments and Loans (Schedule of Carrying Value Equity Investments) (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019	Feb. 28, 2019
Schedule of Equity Method Investments [Line Items]
Carrying Value	$ 3,136	$ 2,961
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	$ 595	592
Bayou Bridge Pipeline, LLC (Bayou Bridge)
Schedule of Equity Method Investments [Line Items]
Percentage Ownership	40.00%
Carrying Value	$ 296	294
DCP Sand Hills Pipeline, LLC (Sand Hills)
Schedule of Equity Method Investments [Line Items]
Percentage Ownership	33.34%
Carrying Value	$ 598	595
DCP Southern Hills Pipeline, LLC (Southern Hills)
Schedule of Equity Method Investments [Line Items]
Percentage Ownership	33.34%
Carrying Value	$ 218	215
Explorer Pipeline Company (Explorer)
Schedule of Equity Method Investments [Line Items]
Percentage Ownership	21.94%
Carrying Value	$ 102	105
Gray Oak Pipeline, LLC
Schedule of Equity Method Investments [Line Items]
Percentage Ownership	65.00%		65.00%
Carrying Value	$ 799	759
Liberty Pipeline LLC (Liberty)
Schedule of Equity Method Investments [Line Items]
Percentage Ownership	50.00%
Carrying Value	$ 103	0
Paradigm Pipeline LLC (Paradigm)
Schedule of Equity Method Investments [Line Items]
Percentage Ownership	50.00%
Carrying Value	$ 143	143
Phillips 66 Partners Terminal LLC (Phillips 66 Partners Terminal)
Schedule of Equity Method Investments [Line Items]
Percentage Ownership	70.00%
Carrying Value	$ 67	70
South Texas Gateway Terminal LLC (South Texas Gateway Terminal)
Schedule of Equity Method Investments [Line Items]
Percentage Ownership	25.00%
Carrying Value	$ 102	74
STACK Pipeline LLC (STACK)
Schedule of Equity Method Investments [Line Items]
Percentage Ownership	50.00%
Carrying Value	$ 113	$ 114

Equity Investments and Loans _2

Equity Investments and Loans (Schedule of Equity Investment Earnings (Losses) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Schedule of Equity Method Investments [Line Items]
Total equity in earnings of affiliates	$ 136	$ 119
Dakota Access, LLC and Energy Transfer Crude Oil Company, LLC (Bakken Pipeline)
Schedule of Equity Method Investments [Line Items]
Total equity in earnings of affiliates	57	51
Bayou Bridge Pipeline, LLC (Bayou Bridge)
Schedule of Equity Method Investments [Line Items]
Total equity in earnings of affiliates	10	4
DCP Sand Hills Pipeline, LLC (Sand Hills)
Schedule of Equity Method Investments [Line Items]
Total equity in earnings of affiliates	41	36
DCP Southern Hills Pipeline, LLC (Southern Hills)
Schedule of Equity Method Investments [Line Items]
Total equity in earnings of affiliates	11	13
Explorer Pipeline Company (Explorer)
Schedule of Equity Method Investments [Line Items]
Total equity in earnings of affiliates	7	3
Gray Oak Pipeline, LLC
Schedule of Equity Method Investments [Line Items]
Total equity in earnings of affiliates	5	0
Liberty Pipeline LLC (Liberty)
Schedule of Equity Method Investments [Line Items]
Total equity in earnings of affiliates	0	0
Paradigm Pipeline LLC (Paradigm)
Schedule of Equity Method Investments [Line Items]
Total equity in earnings of affiliates	4	3
Phillips 66 Partners Terminal LLC (Phillips 66 Partners Terminal)
Schedule of Equity Method Investments [Line Items]
Total equity in earnings of affiliates	0	6
South Texas Gateway Terminal LLC (South Texas Gateway Terminal)
Schedule of Equity Method Investments [Line Items]
Total equity in earnings of affiliates	0	0
STACK Pipeline LLC (STACK)
Schedule of Equity Method Investments [Line Items]
Total equity in earnings of affiliates	$ 1	$ 3

Equity Investments and Loans (N

Equity Investments and Loans (Narrative) (Details) - USD ($)	1 Months Ended	3 Months Ended
	Feb. 29, 2020	Mar. 31, 2020	Jan. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Feb. 28, 2019	Dec. 31, 2018
Schedule of Equity Method Investments [Line Items]
Equity investments		$ 3,136,000,000		$ 2,961,000,000
Gray Oak Pipeline, LLC
Schedule of Equity Method Investments [Line Items]
Maximum equity contribution, co-venture			$ 1,379,000,000
Dakota Access, LLC | Senior Notes
Schedule of Equity Method Investments [Line Items]
Debt instrument, face amount					$ 2,500,000,000
Third Party | Gray Oak Holdings LLC
Schedule of Equity Method Investments [Line Items]
Aggregate contribution		$ 23,000,000
Liberty Pipeline LLC (Liberty)
Schedule of Equity Method Investments [Line Items]
Ownership interest acquired, percentage		50.00%
Maximum loss exposure, amount		$ 103,000,000
Guarantor obligations, current carrying value		113,000,000
Equity investments		$ 103,000,000		0
Liberty Pipeline LLC (Liberty) | Common Control Transaction | Phillips 66 | Phillips 66 PDI
Schedule of Equity Method Investments [Line Items]
Controlling interest acquired, percentage	50.00%
Business combination, consideration transferred	$ 75,000,000
Gray Oak Pipeline, LLC
Schedule of Equity Method Investments [Line Items]
Ownership interest acquired, percentage		65.00%				65.00%
Effective ownership interest		42.25%
Maximum exposure		$ 583,000,000
Maximum loss exposure, amount		1,382,000,000
Guarantor obligations, current carrying value		583,000,000
Equity investments		799,000,000		$ 759,000,000
Gray Oak Holdings LLC | Third Party
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
Maximum exposure, undiscounted		$ 631,000,000

Equity Investments and Loans _3

Equity Investments and Loans (Schedule of Dakota Access) (Details) - Dakota Access, LLC - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Schedule of Equity Method Investments [Line Items]
Revenues	$ 258	$ 236
Income before income taxes	186	157
Net income	$ 186	$ 157

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
	Mar. 31, 2020	Mar. 31, 2019
Limited Partners' Capital Account [Line Items]
Net income	$ 226	$ 198
Less:
Distributions declared	209	184
Distributions less than net income	17	14
General Partner
Limited Partners' Capital Account [Line Items]
Net income		69
Less:
Distributions declared	0	69
Preferred Units | Limited Partner
Limited Partners' Capital Account [Line Items]
Net income	10	10
Less:
Distributions declared	10	10
Common Units | Limited Partner
Limited Partners' Capital Account [Line Items]
Net income	216	119
Less:
Distributions declared	$ 199	$ 105

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
	Mar. 31, 2020	Mar. 31, 2019
Limited Partners' Capital Account [Line Items]
Distributions declared	$ 209	$ 184
Distributions less than (more than) net income	17	14
Net income (basic)	$ 226	$ 198
Common Units
Limited Partners' Capital Account [Line Items]
Weighted-average units outstanding—basic (in shares)	228,312,261	124,257,933
Dilutive effect of preferred units (in shares)	13,819,791	13,819,791
Weighted-average units outstanding—diluted (in shares)	242,132,052	138,077,724
Net income per limited partner unit—basic (in dollars per share)	$ 0.95	$ 0.96
Net income per limited partner unit—diluted (in dollars per share)	$ 0.93	$ 0.92
Limited Partner | Common Units
Limited Partners' Capital Account [Line Items]
Distributions declared	$ 199	$ 105
Distributions less than (more than) net income	17	14
Net income (basic)	216	119
Dilutive effect of preferred units	10	8
Net income (diluted)	226	127
Limited Partner | Preferred Units
Limited Partners' Capital Account [Line Items]
Distributions declared	10	10
Distributions less than (more than) net income	0	0
Net income (basic)	10	10
General Partner
Limited Partners' Capital Account [Line Items]
Distributions declared	$ 0	69
Distributions less than (more than) net income		0
Net income (basic)		$ 69

Net Income Per Limited Partne_6

Net Income Per Limited Partner Unit (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions	Apr. 21, 2020	Aug. 01, 2019
Common Units | Cash Distribution | Subsequent Event
Subsequent Event [Line Items]
Quarterly cash distribution declared per limited partner unit (in dollars per share)	$ 0.875
Distribution made to limited partner, cash distributions declared	$ 199
Phillips 66 Company
Subsequent Event [Line Items]
General partner interest, percent		2.00%

Properties, Plants and Equipm_3

Properties, Plants and Equipment (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Gross PP&E	$ 4,499	$ 4,408
Accumulated depreciation	(1,089)	(1,059)
Net PP&E	3,410	3,349
Land
Property, Plant and Equipment [Line Items]
Gross PP&E	19	19
Buildings and improvements
Property, Plant and Equipment [Line Items]
Gross PP&E	94	94
Pipelines and related assets
Property, Plant and Equipment [Line Items]
Gross PP&E	1,447	1,424
Terminals and related assets
Property, Plant and Equipment [Line Items]
Gross PP&E	761	741
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	1,047	1,041
Caverns and related assets
Property, Plant and Equipment [Line Items]
Gross PP&E	585	585
Construction-in-progress
Property, Plant and Equipment [Line Items]
Gross PP&E	$ 409	$ 367

Debt (Summary of Long-Term Debt

Debt (Summary of Long-Term Debt) (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Debt at face value	$ 3,550	$ 3,550
Net unamortized discounts and debt issuance costs	(34)	(34)
Total debt	3,516	3,516
Short-term debt	(25)	(25)
Long-term debt	3,491	3,491
Tax-exempt bonds due April 2020 and April 2021 at 1.465% and 1.85% at March 31, 2020, and December 31, 2019, respectively
Debt Instrument [Line Items]
Long-term debt, gross	$ 75	$ 75
Interest rate, stated percentage	1.465%	1.85%
Senior Notes | 2.450% Senior Notes due December 2024
Debt Instrument [Line Items]
Long-term debt, gross	$ 300	$ 300
Interest rate, stated percentage	2.45%
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%
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%
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%
Senior Notes | 3.150% Senior Notes due December 2029
Debt Instrument [Line Items]
Long-term debt, gross	$ 600	600
Interest rate, stated percentage	3.15%
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%
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%

Debt (Narrative) (Details)

Debt (Narrative) (Details) - USD ($)	Apr. 01, 2020	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Jul. 30, 2019
Debt Instrument [Line Items]
Short-term debt		$ 25,000,000		$ 25,000,000
Letters of credit outstanding, amount		3,000,000		1,000,000
Repayments of Debt		0	$ 585,000,000
Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit facility, outstanding		0		0
Tax-Exempt Bonds
Debt Instrument [Line Items]
Repayments of Debt	$ 25,000,000
Credit Agreement | Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity					$ 750,000,000
Fair Value, Inputs, Level 2 | Tax-Exempt Bonds
Debt Instrument [Line Items]
Debt instrument, fair value disclosure		75,000,000
Fair Value, Inputs, Level 2 | Senior Notes
Debt Instrument [Line Items]
Debt instrument, fair value disclosure		$ 3,083,000,000		$ 3,650,000,000

Equity (Details)

Equity (Details)	3 Months Ended		46 Months Ended
	Mar. 31, 2020USD ($)offeringshares	Mar. 31, 2019USD ($)shares	Mar. 31, 2020USD ($)offeringshares
Limited Partners' Capital Account [Line Items]
Number of common units issued in public offering (in shares) | shares	40,570	622,032
At The Market Offering Program
Limited Partners' Capital Account [Line Items]
Aggregate authorized amount	$ 750,000,000
Common Units | At The Market Offering Program
Limited Partners' Capital Account [Line Items]
Number of continuous offerings | offering	3		3
Authorized amount per program	$ 250,000,000
Number of common units issued in public offering (in shares) | shares	40,570	622,032	9,487,055
Issuance of common units	$ 2,000,000	$ 32,000,000	$ 494,000,000
Brokers commissions			5,000,000
Other costs			$ 3,000,000

Related Party Transactions (Nar

Related Party Transactions (Narrative) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2020USD ($)
Gray Oak Pipeline, LLC
Related Party Transaction [Line Items]
Effective ownership interest (as a percent)	42.25%
Phillips 66 | Phillips 66 | Amended Omnibus Agreement
Related Party Transaction [Line Items]
Monthly operational and administrative support fee	$ 8

Related Party Transactions (Sum

Related Party Transactions (Summary of Related Party Transactions) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Related Party Transactions [Abstract]
Operating and maintenance expenses	$ 48	$ 105
General and administrative expenses	17	17
Total	$ 65	$ 122

Related Party Transactions (Oth

Related Party Transactions (Other Related Party Balances) (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Related Party Transaction [Line Items]
Prepaid expenses and other current assets	$ 14	$ 10
Other assets	52	52
Deferred revenues	19	16
Other current liabilities	3	3
Other liabilities	93	94
Phillips 66
Related Party Transaction [Line Items]
Prepaid expenses and other current assets	12	7
Other assets	48	44
Deferred revenues	18	16
Other current liabilities	1	1
Other liabilities	$ 68	$ 70

Cash Flow Information (Details)

Cash Flow Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Supplemental Cash Flow Information [Abstract]
Cash capital expenditures and investments	$ 236	$ 634
Change in capital expenditure accruals	(2)	(2)
Total capital expenditures and investments	$ 234	$ 632

Uncategorized Items - mlp-20203

Label	Element	Value
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ (1,000,000)
Common Units [Member] | Public Designator [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ (1,000,000)