Phillips 66 Partners Announces 5 Percent Increase in Quarterly Cash Distribution

Phillips 66 Partners LP (NYSE:PSXP) announces the board of directors of its general partner declared a third-quarter 2014 cash distribution of $0.3168 per limited partnership unit. This quarter’s distribution represents an increase of 5 percent over the previous quarterly distribution of $0.3017 per unit and a 49 percent increase over the minimum quarterly distribution. The distribution is payable Nov. 13, 2014, to unitholders of record as of Nov. 4, 2014.

About Phillips 66 Partners

Headquartered in Houston, Phillips 66 Partners is a growth-oriented traditional 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.

TAX CONSIDERATIONS

This release is intended to be a qualified notice to nominees as provided for under Treasury Regulation Section 1.1446-4(b)(4) and (d). Please note that 100 percent of Phillips 66 Partners LP’s distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, all of Phillips 66 Partners LP’s distributions to foreign investors are subject to federal income tax withholding at the highest applicable effective tax rate. Nominees, and not Phillips 66 Partners LP, are treated as the withholding agents responsible for withholding on the distributions received by them on behalf of foreign investors.