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Analyst Day – Sunoco Logistics Partners L.P.

Sunoco Logistics Partners L.P. · Nov 18, 2014 · 67 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Analyst Day – Sunoco Logistics Partners L.P. – slide 1
    Sunoco Logistics Partners L.P. NYSE SXL Analyst Day November 2014
  2. Analyst Day – Sunoco Logistics Partners L.P. – slide 2
    Agenda Sunoco Logistics Overview p. 4 Crude Market Summary p. 15 Crude Projects p. 22 Refined Products Projects p. 25 NGL Market Summary p. 27 NGL Projects p. 30 Mariner East 2 PDH Overview Summary p. 48 Appendix p. 52
  3. Analyst Day – Sunoco Logistics Partners L.P. – slide 3
    Sunoco Logistics Overview
  4. Analyst Day – Sunoco Logistics Partners L.P. – slide 4
    Sunoco Logistics Assets 5
  5. Analyst Day – Sunoco Logistics Partners L.P. – slide 5
    Sunoco Logistics and Energy Transfer Assets 6
  6. Analyst Day – Sunoco Logistics Partners L.P. – slide 6
    Energy Transfer Family of Companies ENERGY TRANSFER EQUITY, L.P. (NYSE: ETE) LP Interest, GP Interest, IDRs, Class H Units(1) LP Interest, GP Interest, IDRs ENERGY TRANSFER LP Interest, GP Interest, IDRs REGENCY ENERGY PARTNERS,…
  7. Analyst Day – Sunoco Logistics Partners L.P. – slide 7
    Recent Highlights 3Q14 Results: EBITDA 246MM 2nd biggest quarter ever 10th consecutive 5% quarter-over-quarter distribution increase 2 Additional Successful Open Seasons: Mariner East 2 Permian Longview & Louisiana Extension…
  8. Analyst Day – Sunoco Logistics Partners L.P. – slide 8
    EBITDA by Segment (MM) 2010 2011 2012 2013 LTM* Crude Oil Pipeline 156 207 275 349 394 Crude Oil Acq. & Mktg. 39 148 239 233 164 Terminal Facilities 127 149 225 233 306 Products Pipeline 77 69 71 56 80 Total EBITDA 399 573 810 871…
  9. Analyst Day – Sunoco Logistics Partners L.P. – slide 9
    Adjusted EBITDA: Ratable and Market Related 1,200 Maximize asset base by 1,000 taking advantage of 871 944 Adjusted EBITDA (MM) market opportunities 800 810 600 573 Distributions based on 399 400 ratable cash 200…
  10. Analyst Day – Sunoco Logistics Partners L.P. – slide 10
    10 Consecutive Quarters of 5% Distribution Growth Guidance 5% quarter over quarter increases in 2014 Note: Values adjusted for the two-for-one unit split completed on June 12, 2014 11
  11. Analyst Day – Sunoco Logistics Partners L.P. – slide 11
    Major Organic Projects 13 Successful Open Seasons: 3 West Texas Crude expansion projects (crude oil) Permian Express 1 (crude oil) Permian Express 2 (crude oil) Eaglebine Express (crude oil) Granite Wash Extension (crude oil)…
  12. Analyst Day – Sunoco Logistics Partners L.P. – slide 12
    Organic Capital 2,500 2,000 Investment (MM) 1,500 1,000 500 0 2010 2011 2012 2013 2014P 2015P Organic Expansion Capital 13
  13. Analyst Day – Sunoco Logistics Partners L.P. – slide 13
    Acquisitions 600 500 Investment (MM) 400 300 200 100 0 2010 2011 2012 2013 2014* Acquisition Capital *SXL does not comment on future acquisitions *Includes the acquisition of an additional 3.9% interest in…
  14. Analyst Day – Sunoco Logistics Partners L.P. – slide 14
    Crude Market Summary
  15. Analyst Day – Sunoco Logistics Partners L.P. – slide 15
    Dated Brent Daily Price 2008 - Present /bbl 160 140 120 100 80 60 40 20 16
  16. Analyst Day – Sunoco Logistics Partners L.P. – slide 16
    World Non-OPEC Liquids Supply Growth Change Year-Over-Year Source: PIRA 17
  17. Analyst Day – Sunoco Logistics Partners L.P. – slide 17
    Top 20 Crude Producers November 2014 (MMBPD) Source: PIRA OPEC Non-OPEC 18
  18. Analyst Day – Sunoco Logistics Partners L.P. – slide 18
    Shale is the Lowest Cost Barrel Today Approximate /BBL Breakeven Price 100 80 60 40 Oil Sands Offshore Deepwater Shale 2010 2015 Source: PIRA 19
  19. Analyst Day – Sunoco Logistics Partners L.P. – slide 19
    WTI Oil Breakeven by Basin /BBL 100 72 73 75 66 62 53 50 46 32 25 0 Source: Credit Suisse 20
  20. Analyst Day – Sunoco Logistics Partners L.P. – slide 20
    Permian Basin Output *** About 200 MBPD growth projected in 2014 Source: PIRA *** Actual Growth now estimated at over 300 MBPD 21
  21. Analyst Day – Sunoco Logistics Partners L.P. – slide 21
    Crude Projects
  22. Analyst Day – Sunoco Logistics Partners L.P. – slide 22
    Crude Projects: 8 Successful Open Seasons (1 in progress) 3 West Texas Crude Expansions Granite Wash Extension Permian Crude to multiple markets Granite Wash Crude to multiple markets 2012 - 2014 4Q 2014 Permian Express 1…
  23. Analyst Day – Sunoco Logistics Partners L.P. – slide 23
    Nederland Terminal 24
  24. Analyst Day – Sunoco Logistics Partners L.P. – slide 24
    Refined Products Projects
  25. Analyst Day – Sunoco Logistics Partners L.P. – slide 25
    Allegheny Access Refined Products Allegheny Access Ohio Products to Pittsburgh 4Q 2014* Committed Fee-based Income *Expected Start-up 26
  26. Analyst Day – Sunoco Logistics Partners L.P. – slide 26
    NGL Market Summary
  27. Analyst Day – Sunoco Logistics Partners L.P. – slide 27
    Top 20 NGL Producers 2014 (MMBPD) Source: PIRA OPEC Non-OPEC 28
  28. Analyst Day – Sunoco Logistics Partners L.P. – slide 28
    Marcellus / Utica NGL Forecast 1,400,000 Over 800 MBPD liquids by 2016 1,200,000 1,000,000 BPD 800,000 600,000 400,000 200,000 - 2012 2013 2014 2015 2016 2017 2018 2019 2020 Propane Normal Butane Isobutane Nat…
  29. Analyst Day – Sunoco Logistics Partners L.P. – slide 29
    NGL Projects
  30. Analyst Day – Sunoco Logistics Partners L.P. – slide 30
    Mariner Franchise Mariner East 1 Ethane / Propane from Houston to Marcus Hook 4Q 2014* Mariner West Ethane from Houston to Sarnia 4Q 2013 Mariner South Mariner East 2 Propane / Butane from Mont Belvieu to Nederland NGLs…
  31. Analyst Day – Sunoco Logistics Partners L.P. – slide 31
    Mariner South Natural Gas Liquids Mariner South Propane / Butane from Mont Belvieu to Nederland End of 2014* SXL Terminal Lone Star Fractionators Committed Fee-based Income *Expected Start-up 32
  32. Analyst Day – Sunoco Logistics Partners L.P. – slide 32
    Mariner South at Nederland Terminal 33
  33. Analyst Day – Sunoco Logistics Partners L.P. – slide 33
    Nederland Terminal 34
  34. Analyst Day – Sunoco Logistics Partners L.P. – slide 34
    Mariner West and East Natural Gas Liquids Mariner West Mariner East 1 Ethane from Houston to Sarnia E/P from Houston to Marcus Hook 4Q 2013 End of year 2014* Mariner East 2 NGLs to Marcus Hook 4Q 2016* Committed…
  35. Analyst Day – Sunoco Logistics Partners L.P. – slide 35
    Mariner East 2
  36. Analyst Day – Sunoco Logistics Partners L.P. – slide 36
    Mariner East 275,000 B/D Initial Capacity 345,000 B/D including ME 1 Connecting to 4 Fractionator Origin Locations in the Basin World-Class NGL Facility at Marcus Hook Industrial Complex 37 37
  37. Analyst Day – Sunoco Logistics Partners L.P. – slide 37
    Marcus Hook Industrial Complex Mariner Infrastructure 38
  38. Analyst Day – Sunoco Logistics Partners L.P. – slide 38
    Marcus Hook Terminal Build-Out 39
  39. Analyst Day – Sunoco Logistics Partners L.P. – slide 39
    Marcus Hook Natural Gas Liquids 40
  40. Analyst Day – Sunoco Logistics Partners L.P. – slide 40
    Marcus Hook Natural Gas Liquids 41
  41. Analyst Day – Sunoco Logistics Partners L.P. – slide 41
    PDH at Marcus Hook In Development
  42. Analyst Day – Sunoco Logistics Partners L.P. – slide 42
    Global Propylene Supply and Demand - Global Propylene market is expected to grow by 33MM Metric Tons by 2020 - Lighter feed to crackers - PDH is a preferred choice 43
  43. Analyst Day – Sunoco Logistics Partners L.P. – slide 43
    Propylene Supply and Demand 44
  44. Analyst Day – Sunoco Logistics Partners L.P. – slide 44
    Why PDH in Marcus Hook Perfect location for local demand Better logistics Perfect location for propylene export to North West Europe Advantaged shipping and logistics costs Delivered cash cost competitive with international…
  45. Analyst Day – Sunoco Logistics Partners L.P. – slide 45
    Propylene Propane Spread 2000 2014 /mt Source: IHS Global 46
  46. Analyst Day – Sunoco Logistics Partners L.P. – slide 46
    Marcus Hook Industrial Complex PROPOSED PDH Mariner Infrastructure 47
  47. Analyst Day – Sunoco Logistics Partners L.P. – slide 47
    Summary
  48. Analyst Day – Sunoco Logistics Partners L.P. – slide 48
    Key SXL Takeaways Recent History Strategic Focus on Crude and Natural Gas Liquids First Mover First West Texas crude projects on line since the shale boom First Marcellus ethane pipeline on line First waterborne propane exports from…
  49. Analyst Day – Sunoco Logistics Partners L.P. – slide 49
    Scheduled Project Start-up 50
  50. Analyst Day – Sunoco Logistics Partners L.P. – slide 50
    Key SXL Takeaways Going Forward Commitment to Growth 14th Open Season in progress New phase of growth in processing at Marcus Hook Opportunities within the Energy Transfer family M&A - Actively looking for right, strategic…
  51. Analyst Day – Sunoco Logistics Partners L.P. – slide 51
    Appendix
  52. Analyst Day – Sunoco Logistics Partners L.P. – slide 52
    SXL Non-GAAP Financial Measures Twelve Months Ended December 31, 2010 2011 2012 2013 LTM* (MM) Net Income 348 322 531 474 530 Interest expense, net 73 89 79 77 70 Depreciation and amortization expense 64 86 139 265 289 Impairment…
  53. Analyst Day – Sunoco Logistics Partners L.P. – slide 53
    Historical Financial Results (MM) 2010 2011 2012 2013 LTM* Crude Oil Pipelines 156 207 275 349 394 Crude Oil Acquisition & Marketing 39 148 239 233 164 Terminal Facilities 127 149 225 233 306 Refined Products Pipelines 77 69 71 56…
  54. Analyst Day – Sunoco Logistics Partners L.P. – slide 54
    Joint Venture Ownership Consolidated JV's: West Texas Gulf Mid-Valley Inland SXL 60.3% SXL 91.0% SXL 83.8% Chevron 28.3% Chevron 9.0% Citgo 16.2% Citgo 11.4% Equity Interest JV's: Explorer* West Shore Wolverine** Yellowstone…
  55. Analyst Day – Sunoco Logistics Partners L.P. – slide 55
    Crude Oil Pipeline System 42% of total EBITDA for the twelve months ended September 30, 2014 Approximately 5,300 miles of crude oil trunk lines located in the Southwest and Midwest U.S. Approximately 500 miles of gathering lines…
  56. Analyst Day – Sunoco Logistics Partners L.P. – slide 56
    Crude Oil Acquisition and Marketing 17% of total EBITDA for the twelve months ended September 30, 2014 Crude truck fleet of over 300 trucks Purchase crude oil at the wellhead from producers and in bulk from aggregators at major…
  57. Analyst Day – Sunoco Logistics Partners L.P. – slide 57
    Terminal Facilities 32% of total EBITDA for the twelve months ended September 30, 2014 Nederland, TX Crude Oil Terminal - One of the largest onshore crude facilities in U.S. 22 million barrel capacity currently Eagle Point, NJ Crude…
  58. Analyst Day – Sunoco Logistics Partners L.P. – slide 58
    Refined Products Pipeline System 9% of total EBITDA for the twelve months ended September 30, 2014 Refined products pipeline system (approximately 2,300 miles), located in the Northeast, Midwest and Southwest U.S. Equity interest…
  59. Analyst Day – Sunoco Logistics Partners L.P. – slide 59
    Distribution History Average Annual Distribution (per LP unit) LP/GP Split (%) 2.00 10 consecutive quarter over quarter distribution increases 1.50 1.53 50/50 of 5% 38 consecutive 1.06 1.00 quarterly distribution…
  60. Analyst Day – Sunoco Logistics Partners L.P. – slide 60
    1.5 Billion Revolving Credit Facility (MM) Facility Facility 100MM Lenders Allocation 40.5MM Lenders Allocation (1) 100.0 Bank of Nova Scotia 40.5 Citibank Barclays Bank 100.0 BNP Paribas 40.5 Bank of Tokyo-Mitsubishi UFJ 100.0…
  61. Analyst Day – Sunoco Logistics Partners L.P. – slide 61
    Debt to Adjusted EBITDA December 31, (MM) 2009 2010 2011 2012 2013 Debt to Adjusted EBITDA Ratio Total Debt 868 1,229 1,698 1,732 2,503 Less: Unamortized FV adjustments, net(1) - - - 143 120 868 1,229 1,698 1,589 2,383 Adjusted…
  62. Analyst Day – Sunoco Logistics Partners L.P. – slide 62
    Capitalization (MM) As of 9/30/14 Debt Senior Notes, net 2,975 fixed Unamortized fair value adjustments, net(1) 105 1.5 B SXL Revolver (matures November 2018)(2) 525 floating 35 MM WTG Revolver (matures April 2015) 35 floating…
  63. Analyst Day – Sunoco Logistics Partners L.P. – slide 63
    Debt Maturity Schedule at 9/30/2014 (MM) 6.13% 5.50% 4.65% 3.45% 4.25% 6.85% 6.10% 4.95% 5.30% Note: Excludes borrowings under the revolvers 64
  64. Analyst Day – Sunoco Logistics Partners L.P. – slide 64
    Acquisition History (1.5B Since IPO) November 2002 Joint-venture interests in 3 refined product pipelines from Unocal, for 54MM Wolverine (31.5%), West Shore (9.2%), and Yellowstone (14.0%) November 2002 43.8% joint-venture interest…
  65. Analyst Day – Sunoco Logistics Partners L.P. – slide 65
    Acquisition History (1.5B Since IPO), Continued September 2009 Oklahoma crude oil pipeline from Excel Pipeline LLC and Romulus, MI refined products terminal facility from R.K.A. Petroleum LLC for an aggregate 50MM July 2010 Butane…
  66. Analyst Day – Sunoco Logistics Partners L.P. – slide 66
    SXL Key Financial and Operating Statistics 2010 2011 2012 2013 2014 Total Total 1st 2nd 3rd 4th Total 1st 2nd 3rd 4th Total 1st 2nd 3rd Total Financial highlights (in millions) Sales and other operating revenue Crude Oil…
  67. Analyst Day – Sunoco Logistics Partners L.P. – slide 67
    SXL Key Financial and Operating Statistics 2010 2011 2012 2013 2014 Total Total 1st 2nd 3rd 4th Total 1st 2nd 3rd 4th Total 1st 2nd 3rd Total Reconciliation of Segment Operating Income to Net Income Attributable to Sunoco Logistics…

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