7-25-2016

Phillips 66 Partners Announces Acquisition of Incremental Interest in Explorer Pipeline

HOUSTON--(BUSINESS WIRE)-- Phillips 66 Partners LP (NYSE: PSXP) (the “Partnership”) announced today that it has agreed to acquire an additional 2.5 percent equity interest in Explorer Pipeline Company (Explorer). This acquisition will result in the Partnership having a total ownership interest of approximately 22 percent.

Explorer is recognized as one of the nation’s leading petroleum products transporters serving more than 70 major cities in 16 states. Its 1,830-mile pipeline transports gasoline, diesel, fuel oil and jet fuel with an average flow of more than 600,000 barrels per day.

The acquisition is expected to be immediately accretive to unitholders and funded with cash and borrowings under the Partnership’s revolving credit facility. The terms of the acquisition were approved by the board of directors of the general partner of the Partnership, and the acquisition is expected to close in August 2016 subject to regulatory approvals. Terms of the agreement are not being disclosed.

About Phillips 66 Partners

Headquartered in Houston, Phillips 66 Partners is a growth-oriented master limited partnership formed by Phillips 66 to own, operate, develop and acquire primarily fee-based crude oil, refined petroleum product and natural gas liquids pipelines and terminals and other transportation and midstream assets. For more information, visit www.phillips66partners.com.

CAUTIONARY STATEMENTS

This press release contains forward-looking statements as defined under the federal securities laws, including projections, plans and objectives. Although Phillips 66 Partners believes that expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct. In addition, these statements are subject to certain risks, uncertainties and other assumptions that are difficult to predict and may be beyond Phillips 66 Partners’ control. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, actual results may vary materially from what Phillips 66 Partners anticipated, estimated, projected or expected. The key risk factors that may have a direct bearing on the forward-looking statements are described in the filings that Phillips 66 Partners makes with the Securities and Exchange Commission. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than as described. All forward-looking statements in this release are made as of the date hereof and Phillips 66 Partners undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Source: Phillips 66 Partners LP

Phillips 66 Partners LP

Rosy Zuklic (investors), 832-765-2297

rosy.zuklic@p66.com

or

C.W. Mallon (investors), 832-765-2297

c.w.mallon@p66.com

or

Dennis Nuss (media), 832-765-1850

dennis.h.nuss@p66.com