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Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P.

Sunoco Logistics Partners L.P. · Dec 9, 2014 · 57 slides

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Slides

  1. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 1
    Sunoco Logistics Partners L.P. Wells Fargo Securities NYSE Energy Symposium SXL December 9, 2014
  2. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 2
    Sunoco Logistics Assets 3
  3. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 3
    Sunoco Logistics and Energy Transfer Assets 4
  4. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 4
    Energy Transfer Family of Companies LP Interest, GP Interest, IDRs ENERGY TRANSFER EQUITY, L.P. LP Interest, GP Interest, IDRs (NYSE: ETE) LP Interest, GP Interest, IDRs Class H Units(1) LP Interest, GP ENERGY TRANSFER ENERGY…
  5. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 5
    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…
  6. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 6
    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…
  7. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 7
    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…
  8. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 8
    10 Consecutive Quarters of 5% Distribution Growth g Guidance 5% quarter over quarter increases in 2014 Note: Values adjusted for the two-for-one unit split completed on June 12, 2014 9
  9. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 9
    Major Organic Projects g 13 Successful Open Seasons: 03 West Texas Crude expansion projects (crude oil) 0Permian Express 1 (crude oil) 0Permian Express 2 (crude oil) 0Eaglebine Express (crude oil) 0Granite Wash Extension (crude oil)…
  10. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 10
    Scheduled Project Start-up 11
  11. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 11
    Organic Expansion Capital 2,500 2,000 Investment (MM) 1,500 1,000 500 0 2010 2011 2012 2013 2014P 2015P Organic Expansion Capital 12
  12. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 12
    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…
  13. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 13
    Dated Brent Daily Price 2008 - Present /bbl 160 140 120 100 80 60 40 20 14
  14. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 14
    World Non-OPEC Liquids Supply Growth Change Year-Over-Year Source: PIRA 15
  15. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 15
    Top 20 Crude Producers November 2014 (MMBPD) Source: PIRA OPEC Non-OPEC 16
  16. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 16
    Permian Basin Output *** About 200 MBPD growth projected in 2014 Source: PIRA *** Actual Growth now estimated at over 300 MBPD 17
  17. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 17
    Crude Projects 3 West Texas Crude Expansions Permian Crude to multiple markets 2012 - 2014 Houston Committed Fee-based Income 18
  18. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 18
    Crude Projects 3 West Texas Crude Expansions Permian Crude to multiple markets 2012 - 2014 Permian Express 1 Permian Crude to Nederland 2Q 2013 Houston Committed Fee-based Income 19
  19. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 19
    Crude Projects 3 West Texas Crude Expansions Permian Crude to multiple markets 2012 - 2014 Permian Express 1 Permian Crude to Nederland 2Q 2013 Permian Express 2 Permian Crude to multiple markets Houston Mid-2015*…
  20. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 20
    Crude Projects 3 West Texas Crude Expansions Permian Crude to multiple markets 2012 - 2014 Permian Express 1 Permian Crude to Nederland 2Q 2013 Permian Express 2 Permian Crude to multiple markets Houston Mid-2015*…
  21. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 21
    Crude Projects 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 Permian Crude to Nederland 2Q 2013 Permian…
  22. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 22
    Crude Projects 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 Permian Crude to Nederland 2Q 2013 Permian…
  23. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 23
    Crude Projects 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 Permian Crude to Nederland 2Q 2013 Permian…
  24. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 24
    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…
  25. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 25
    Allegheny Access: Successful Open Season Allegheny Access Ohio Products to Pittsburgh 4Q 2014* Committed Fee-based Income *Expected Start-up 26
  26. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 26
    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…
  27. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 27
    Mariner Franchise: 4 Successful Open Seasons 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…
  28. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 28
    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 29
  29. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 29
    Mariner South at Nederland Terminal 30
  30. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 30
    Nederland Terminal 31
  31. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 31
    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…
  32. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 32
    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 33 33
  33. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 33
    Marcus Hook Industrial Complex Mariner Infrastructure 34
  34. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 34
    Marcus Hook Terminal Build-Out 35
  35. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 35
    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 36
  36. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 36
    Propylene Supply and Demand 37
  37. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 37
    Why PDH in Marcus Hook Perfect location for local demand 0Better logistics Perfect location for propylene export to North West Europe 0Advantaged shipping and logistics costs 0Delivered cash cost competitive with international…
  38. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 38
    Marcus Hook Industrial Complex PROPOSED PDH Mariner Infrastructure 39
  39. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 39
    Key SXL Takeaways Recent History g Strategic Focus on Crude and Natural Gas Liquids g First Mover 0 First West Texas crude projects on line since the shale boom 0 First Marcellus ethane pipeline on line 0 First waterborne propane…
  40. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 40
    Key SXL Takeaways Going Forward g Commitment to Growth 0 14th Open Season in progress 0 New phase of growth in processing at Marcus Hook 0 Opportunities within the Energy Transfer family 0 M&A - Actively looking for right, strategic…
  41. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 41
    Appendix
  42. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 42
    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…
  43. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 43
    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 Products Pipelines 77 69 71 56 80…
  44. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 44
    Joint Venture Ownership Bold - denotes operator * Operated by Explorers employees ** Operated by Wolverines employees 45
  45. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 45
    Crude Oil Pipeline System g 42% of total EBITDA for the twelve months ended September 30, 2014 g Approximately 5,300 miles of crude oil trunk lines located in the Southwest and Midwest U.S. 0Approximately 500 miles of gathering lines…
  46. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 46
    Crude Oil Acquisition and Marketing g 17% of total EBITDA for the twelve months ended September 30, 2014 g Crude truck fleet of over 300 trucks g Purchase crude oil at the wellhead from producers and in bulk from aggregators at major…
  47. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 47
    Terminal Facilities g 32% of total EBITDA for the twelve months ended September 30, 2014 g Nederland, TX Crude Oil Terminal - One of the largest onshore crude facilities in U.S. 022 million barrel capacity currently g Eagle Point, NJ…
  48. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 48
    Products Pipeline System J 9% of total EBITDA for the twelve months ended September 30, 2014 J Refined products pipeline system (approximately 2,300 miles), located in the Northeast, Midwest and Southwest U.S. J Equity interest in…
  49. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 49
    Distribution History Average Annual Distribution (per LP unit) LP/GP Split (%) 2.00 g 10 consecutive quarter over quarter distribution increases 1.50 1.53 50/50 of 5% g 38 consecutive 1.06 1.00 quarterly distribution…
  50. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 50
    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…
  51. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 51
    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…
  52. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 52
    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…
  53. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 53
    Debt Maturity Schedule at 11/30/2014 (MM) 900 800 800 700 700 600 500 500 400 350 350 300 300 300 250 250 200 175 100 6.13% 5.50% 4.65% 3.45% 4.25% 6.85% 6.10% 4.95% 5.30% 5.35% 0 '16 - '20 '21 '22 '23 '24 - '40 '41…
  54. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 54
    Acquisition History (1.5B Since IPO) November 2002 g Joint-venture interests in 3 refined product pipelines from Unocal, for 54MM 0Wolverine (31.5%), West Shore (9.2%), and Yellowstone (14.0%) November 2002 g 43.8% joint-venture…
  55. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 55
    Acquisition History (1.5B Since IPO), Continued September 2009 g 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 g Butane…
  56. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 56
    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…
  57. Wells Fargo Securities Energy Symposuim – Sunoco Logistics Partners L.P. – slide 57
    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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