FINANCIAL STATEMENTS ROCKIES EXPRESS PIPELINE LLC For the years ended December 31, 2019, 2018 and 2017 INDEPENDENT AUDITORS' REPORT To the Board of Directors of Rockies Express Pipeline LLC We have audited the accompanying financial statements of Rockies Express Pipeline LLC (the "Company"), which comprise the balance sheet as of December 31, 2019, and the related statements of income, members’ equity, and cash flows for the year then ended, and the related notes to the financial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Rockies Express Pipeline, LLC as of December 31, 2019, and the results of its operations and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Notes 2 and 8 to the financial statements, in 2019, the Company adopted new accounting guidance related to leases. Our opinion is not modified with respect to this matter. Denver, Colorado February 12, 2020 ROCKIES EXPRESS PIPELINE LLC BALANCE SHEETS December 31, 2019 2018 (in millions) ASSETS Current Assets: Cash and cash equivalents..................................................................................... $ 42.7 $ 1.1 Accounts receivable, net........................................................................................ 58.5 76.8 Gas imbalances...................................................................................................... 5.1 7.4 Current portion of contract asset ........................................................................... 38.2 31.8 Other current assets ............................................................................................... 1.1 3.6 Total Current Assets.......................................................................................... 145.6 120.7 Property, plant and equipment, net............................................................................. 5,631.4 5,759.0 Contract asset ............................................................................................................. 129.2 157.0 Right of use asset........................................................................................................ 184.3 — Deferred charges and other assets .............................................................................. 10.0 15.2 Total Noncurrent Assets.................................................................................... 5,954.9 5,931.2 Total Assets................................................................................................................. $ 6,100.5 $ 6,051.9 LIABILITIES AND EQUITY Current Liabilities: Accounts payable................................................................................................... $ 9.6 $ 21.0 Accrued interest..................................................................................................... 44.1 39.0 Accrued taxes ........................................................................................................ 80.2 81.8 Current portion of long-term debt ......................................................................... — 525.0 Current portion of lease liability............................................................................ 18.5 — Accrued other current liabilities ............................................................................ 30.7 23.6 Total Current Liabilities.................................................................................... 183.1 690.4 Long-term Liabilities and Deferred Credits: Long-term debt, net ............................................................................................... 2,036.6 1,492.7 Long term lease liability........................................................................................ 165.8 — Other long-term liabilities and deferred credits..................................................... 9.1 10.2 Total Long-term Liabilities and Deferred Credits ............................................ 2,211.5 1,502.9 Commitments and Contingencies Members' Equity: Members' equity .................................................................................................... 3,705.9 3,858.6 Total Liabilities and Members' Equity ....................................................................... $ 6,100.5 $ 6,051.9 The accompanying notes are an integral part of these financial statements. 1 ROCKIES EXPRESS PIPELINE LLC STATEMENTS OF INCOME Years Ended December 31, 2019 2018 2017 (in millions) Revenues: Transportation services........................................................................ $ 893.3 $ 907.7 $ 839.6 Natural gas sales.................................................................................. 2.3 6.9 9.6 Total Revenues................................................................................ 895.6 914.6 849.2 Operating Costs and Expenses: Cost of transportation services ............................................................ 28.9 32.3 29.8 Cost of natural gas sales ...................................................................... 4.5 5.0 7.3 Operations and maintenance................................................................ 28.7 27.0 25.3 Depreciation and amortization ............................................................ 220.4 219.6 218.4 General and administrative.................................................................. 30.4 28.2 30.5 Taxes, other than income taxes............................................................ 101.2 85.3 65.3 Total Operating Costs and Expenses .............................................. 414.1 397.4 376.6 Operating Income..................................................................................... 481.5 517.2 472.6 Other (Expense) Income: Interest expense, net ............................................................................ (121.0) (150.0) (168.0) Gain on litigation settlement ............................................................... — — 150.0 Other income, net ................................................................................ 16.0 2.3 3.4 Total Other Expense, net................................................................. (105.0) (147.7) (14.6) Net Income ............................................................................................... $ 376.5 $ 369.5 $ 458.0 The accompanying notes are an integral part of these financial statements. 2 ROCKIES EXPRESS PIPELINE LLC STATEMENTS OF MEMBERS' EQUITY Rockies Express TEP REX Phillips 66 Total Holdings, LLC Holdings, LLC Company (in millions) Members' Equity: Balance at January 1, 2017 ............................... $ 3,430.0 $ 1,715.0 $ 857.5 $ 857.5 Net Income...................................................... 458.0 131.1 212.4 114.5 Contributions from Members ......................... 92.0 29.7 39.3 23.0 Distributions to Members ............................... (669.9) (197.6) (304.8) (167.5) Transfer of equity interest (see Note 1) .......... — (850.3) 850.3 — Balance at December 31, 2017 ......................... $ 3,310.1 $ 827.9 $ 1,654.7 $ 827.5 Cumulative effect of ASC 606 implementation ............................................... 125.2 51.0 42.9 31.3 Net Income...................................................... 369.5 44.9 232.2 92.4 Contributions from Members ......................... 576.5 1.6 430.7 144.2 Distributions to Members ............................... (522.7) (63.7) (328.4) (130.6) Transfer of equity interest (see Note 1) .........