Investments, Loans and Long-Term Receivables

6 Months Ended

Jun. 30, 2016

Equity Method Investments and Joint Ventures [Abstract]

Investments, Loans and Long-Term Receivables

Equity Investments

Summarized 100 percent financial information for WRB Refining LP (WRB) and Chevron Phillips Chemical Company LLC (CPChem) was as follows:



	Millions of Dollars
	Three Months Ended June 30			Six Months Ended June 30
	2016		2015	2016	2015

Revenues	$	4,778	5,920	8,468	10,826
Income before income taxes	598		1,038	944	1,730
Net income	575		1,024	904	1,696

Dakota Access, LLC/Energy Transfer Crude Oil Company, LLC

DAPL and ETCOP are two 25 percent owned joint ventures with Energy Transfer Equity L.P. and Energy Transfer Partners L.P. In May 2016, we and our co-venturer executed agreements to loan DAPL up to $2,256 million and ETCOP up to $227 million through 2018. As of June 30, 2016, DAPL and ETCOP have borrowed $382 million and $46 million, respectively. Our 25 percent share of those loans was $95 million and $12 million, respectively. At June 30, 2016, the book values of our investments in DAPL and ETCOP were $391 million and $129 million, respectively.

Other

MSLP owns a delayed coker and related facilities at the Sweeny Refinery. MSLP processes long residue, which is produced from heavy sour crude oil, for a processing fee. Fuel-grade petroleum coke is produced as a by-product and becomes the property of MSLP. Prior to August 28, 2009, MSLP was owned 50/50 by ConocoPhillips and PDVSA. Under the agreements that govern the relationships between the partners, certain defaults by PDVSA with respect to supply of crude oil to the Sweeny Refinery triggered the right to acquire PDVSA’s 50 percent ownership interest in MSLP, which was exercised on August 28, 2009. PDVSA initiated arbitration with the International Chamber of Commerce challenging the exercise of the call right and claiming it was invalid. The arbitral tribunal held hearings on the merits of the dispute in December 2012, and post-hearing briefs were exchanged in March 2013. The arbitral tribunal issued its ruling in April 2014, which upheld the exercise of the call right and the acquisition of the 50 percent ownership interest. In July 2014, PDVSA filed a petition in U.S. district court to vacate the tribunal’s ruling, and in September 2015, the petition was denied. In January 2016, PDVSA filed an appeal in the appellate court to vacate this ruling. Following the Separation, Phillips 66 generally indemnifies ConocoPhillips for liabilities, if any, arising out of the exercise of the call right or otherwise with respect to the joint venture or the refinery. Until all legal challenges are resolved, we will continue to use the equity method of accounting for our investment in MSLP.