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Wells Fargo Securities 2014 Energy Symposium – Sunoco Logistics Partners L.P.

Sunoco Logistics Partners L.P. · Dec 9, 2014 · 39 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. Wells Fargo Securities 2014 Energy Symposium – Sunoco Logistics Partners L.P. – slide 1
    WELLS FARGO SECURITIES 2014 ENERGY SYMPOSIUM December 9, 2014
  2. Wells Fargo Securities 2014 Energy Symposium – Sunoco Logistics Partners L.P. – slide 2
    JUMP STARTING TRANSFORMATION ETP acquires Susser Holdings, announces plan to drop SUSS and Sunoco Inc. businesses into Susser Petroleum Partners now Sunoco LP (NYSE: SUN) SUN closes new 1.25 billion revolving credit facility that…
  3. Wells Fargo Securities 2014 Energy Symposium – Sunoco Logistics Partners L.P. – slide 3
    THE COMBINED RETAIL MARKETING SEGMENT HAS A DOMINANT NATIONAL FOOTPRINT WITH OVER 6,500 SITES Site Count as of September 30, 2014 SUN Sites Remaining Retail Marketing (SUSP + MACS / Segment Total Tiger+ Aloha) (1) (Sunoco + SUSS) (2)…
  4. Wells Fargo Securities 2014 Energy Symposium – Sunoco Logistics Partners L.P. – slide 4
    COMBINED RETAIL OPERATIONS CREATES A STRONGER AND MORE DIVERSIFIED RETAIL MARKETING SEGMENT Growth Opportunities from SUSS & Sunoco Expected to Deliver a Reliable and Growing Cash Flow Stream One of the largest retail footprints…
  5. Wells Fargo Securities 2014 Energy Symposium – Sunoco Logistics Partners L.P. – slide 5
    GEOGRAPHICALLY DIVERSE PLATFORM FOR FUTURE DROP DOWN GROWTH AT SUN ETP Retail Marketing SUN + MACS + Aloha Potential Future Growth Segment LTM 9/30/14 PF Motor Fuel Sales (MM Gallons): 2,465 5,331 7,795 (1) (2) Total Sites…
  6. Wells Fargo Securities 2014 Energy Symposium – Sunoco Logistics Partners L.P. – slide 6
    DIVERSIFIED SOURCES OF CASH FLOW Pro Forma Gallons Sold by Channel(1) Channel Description Retail Sale of retail fuel and merchandise through company-operated sites 13% Company Operated: Operate convenience store and sell fuel 30%…
  7. Wells Fargo Securities 2014 Energy Symposium – Sunoco Logistics Partners L.P. – slide 7
    THE COMBINED RETAIL MARKETING SEGMENT REPRESENTS A LEADING RETAIL PLATFORM LTM EBITDA (mm) Total Fuel Sales (millions of gallons) 7,795 (1) (2) 30 378 361 (3) 591 333 3,914 194 1,726 1,842 1,655 ETP RMS Casey's Murphy USA…
  8. Wells Fargo Securities 2014 Energy Symposium – Sunoco Logistics Partners L.P. – slide 8
    RECENT DEVELOPMENTS MACS Drop Down Acquisition Aloha Acquisition On October 1, 2014, SUN closed the acquisition of Mid-Atlantic SUN has also agreed to acquire Honolulu-based Aloha Petroleum, Convenience Stores, LLC from ETP in a…
  9. Wells Fargo Securities 2014 Energy Symposium – Sunoco Logistics Partners L.P. – slide 9
    SUN WILL LOOK TO DELIVER UNITHOLDER VALUE WHILE INCREASING SCALE SUN will continue to use multiple avenues to execute its growth strategy: Drop down growth Wholesale growth Same-store sales growth New store growth Third party…
  10. Wells Fargo Securities 2014 Energy Symposium – Sunoco Logistics Partners L.P. – slide 10
    RETAIL MARKETING ASSET DROP DOWNS ETP previously announced its intent to drop down the existing Sunoco and SUSS retail marketing businesses into SUN in a series of synchronized drop down transactions for newly issued SUN common units…
  11. Wells Fargo Securities 2014 Energy Symposium – Sunoco Logistics Partners L.P. – slide 11
    MULTIPLE AVENUES FOR ORGANIC GROWTH New to Industry (NTI) Raze & Rebuilds Targeted in high growth markets with favorable demographics Increases returns on existing sites with attractive volume and NTI growth allows for more open and…
  12. Wells Fargo Securities 2014 Energy Symposium – Sunoco Logistics Partners L.P. – slide 12
    SUN WILL TARGET PRUDENT GROWTH VIA ACQUISITIONS SUN will continue to look to opportunistically acquire strong performing retail and wholesale businesses / assets in attractive markets We evaluate potential acquisitions through the…
  13. Wells Fargo Securities 2014 Energy Symposium – Sunoco Logistics Partners L.P. – slide 13
    GROWING TO THE GOAL: 1 BILLION IN EBITDA Adjusted EBITDA (MM) 30 494 428 441 389 333 426 258 325 622 261 269 241 120 167 183 169 166 92 2009 2010 2011 2012 2013 LTM 6/30/2014 (1) (2) (3) Susser Sunoco ETP…
  14. Wells Fargo Securities 2014 Energy Symposium – Sunoco Logistics Partners L.P. – slide 14
    OUR RETAIL MARKETING SEGMENT CONSISTENTLY DELIVERS STABLE & GROWING OPERATING AND FINANCIAL PERFORMANCE Fuel Volumes (millions of gallons) Fuel Margin ( mm) Third Party Operated Company Operated Third Party Operated Company Operated…
  15. Wells Fargo Securities 2014 Energy Symposium – Sunoco Logistics Partners L.P. – slide 15
    FUEL DISTRIBUTION PRODUCES SIGNIFICANT QUALIFYING INCOME Qualifying Non-Qualifying Wholesale supply of fuel to related party, Sales of fuel products to retail customers independent dealers or lessee dealers, and Merchandise sales…
  16. Wells Fargo Securities 2014 Energy Symposium – Sunoco Logistics Partners L.P. – slide 16
    COMBINED SEGMENT GENERATES STABLE CASH FLOWS FROM DIVERSIFIED LINES OF BUSINESS Gross Profit Contribution From Segment Stable Average Motor Fuel Margin (Cents per Gallon) (LTM 9/30/14)(1) FY2010 FY2011 FY2012 FY2013 9/30/14 LTM…
  17. Wells Fargo Securities 2014 Energy Symposium – Sunoco Logistics Partners L.P. – slide 17
    Q3 2014 UPDATE ETP Retail Marketing Segment Sunoco LP Y TD Sept 2013 Y TD Sept 2014 Change Y TD Sept 2013 Y TD Sept 2014 Change Total fuel gallons 3,995 4,470 12% Total fuel gallons 1,155 1,364 18% Average fuel margin cents/gallon…
  18. Wells Fargo Securities 2014 Energy Symposium – Sunoco Logistics Partners L.P. – slide 18
    SUN HAS CONSISTENTLY GROWN DISTRIBUTIONS SINCE 2012 IPO Distributions / Unit 16% DPU CAGR 0.60 0.55 0.55 0.52 0.50 0.50 0.49 0.47 0.45 0.45 0.44 0.40 +5% 0.35 +3.5% +3.5% +3.5% +3.5% +3.5% 0.30 Q1 2013 Q2 2013 Q3 2013 Q4…
  19. Wells Fargo Securities 2014 Energy Symposium – Sunoco Logistics Partners L.P. – slide 19
    LEVERAGING THE RELATIONSHIP WITH ENERGY TRANSFER ETPs interests are clearly aligned with SUNs Experienced team Strong track that has managed record of acquisitions, creating value for ETP owns integrations, unitholders SUNs…
  20. Wells Fargo Securities 2014 Energy Symposium – Sunoco Logistics Partners L.P. – slide 20
    KEY INVESTMENT HIGHLIGHTS Stability Visible Growth Significant amount of long-term, Meaningful growth achievable fee-based contracts through significant inventory of Historical stability of fuel margins drops from ETP Strong and…
  21. Wells Fargo Securities 2014 Energy Symposium – Sunoco Logistics Partners L.P. – slide 21
    APPENDIX 23
  22. Wells Fargo Securities 2014 Energy Symposium – Sunoco Logistics Partners L.P. – slide 22
    SIMPLIFIED SUN ORG STRUCTURE Publicly Traded MLP Energy Transfer Equity, L.P. (1) (NYSE: ETE) General Partner/Parent Company Public Unitholders Energy Transfer Partners, L.P. (NYSE: ETP) 55.8% LP Interest 44.2% LP Interest 100%…
  23. Wells Fargo Securities 2014 Energy Symposium – Sunoco Logistics Partners L.P. – slide 23
    SUNOCO LP IS A KEY PLAYER IN THE MOTOR FUELS VALUE CHAIN Motor Fuels Value Chain Crude Oil Refining Storage and Wholesale Retail Production Transportation Distribution SUN operates within the wholesale and retail distribution…
  24. Wells Fargo Securities 2014 Energy Symposium – Sunoco Logistics Partners L.P. – slide 24
    SUNOCO LP IS A KEY PLAYER IN THE MOTOR FUELS VALUE CHAIN (CONT.) Motor Fuels Value Chain Crude Oil Refining Storage and Wholesale Retail Production Transportation Distribution The recent acquisition of our parent company, SUSS,…
  25. Wells Fargo Securities 2014 Energy Symposium – Sunoco Logistics Partners L.P. – slide 25
    THE COMBINED SEGMENT OCCUPIES A LEADERSHIP POSITION IN A STABLE & THRIVING C-STORE INDUSTRY Resilient industry growth 2013 marked the 11th consecutive year of industry-wide merchandise sales growth Increasing demand for convenience and…
  26. Wells Fargo Securities 2014 Energy Symposium – Sunoco Logistics Partners L.P. – slide 26
    FRAGMENTED CONVENIENCE STORE INDUSTRY OFFERS ATTRACTIVE ACQUISITION OPPORTUNITIES Industry is highly fragmented with almost 60% of Ownership of 151,000 Convenience Stores the industry comprising single-store owners Selling Fuel (1) We…
  27. Wells Fargo Securities 2014 Energy Symposium – Sunoco Logistics Partners L.P. – slide 27
    HISTORICAL CRUDE PRICES SUN MARGINS dollars/barrel cents/gallon 115.0 40.0 Dated Brent 35.0 105.0 30.0 95.0 25.0 85.0 20.0 15.0 75.0 10.0 65.0 5.0 55.0 - 2006 2007 2008 2009 2010 2011 2012 2013 9/30/14 YTD Dated…
  28. Wells Fargo Securities 2014 Energy Symposium – Sunoco Logistics Partners L.P. – slide 28
    WIDENING THE GAP IN PER STORE MERCHANDISE SALES (IN 000S, BASED ON LTM DATA) 1,800 Average Per-Store Merchandise Sales 1,637 1,578 1,485 1,500 1,438 1,407 1,217 1,230 1,223 1,237 1,234 1,172 1,200 1,134 1,150 1,162 1,088…
  29. Wells Fargo Securities 2014 Energy Symposium – Sunoco Logistics Partners L.P. – slide 29
    DELIVERING BEST-IN-CLASS VOLUME GROWTH (IN 000S, BASED ON LTM DATA) Average Per-Store Gallons 2,000 1,911 1,856 1,847 1,862 1,855 1,819 1,808 1,823 1,800 1,755 1,641 1,600 1,400 1,269 1,255 1,200 1,152 1,117 1,083 1,000…
  30. Wells Fargo Securities 2014 Energy Symposium – Sunoco Logistics Partners L.P. – slide 30
    BRAND PORTFOLIO WITH POWERFUL REACH AND STRENGTH Brand equity and presence spans fuel, food service and convenience store platforms Sunoco ranks in the top 100 U.S. brands in both familiarity and favorability(1) 2nd among fuel…
  31. Wells Fargo Securities 2014 Energy Symposium – Sunoco Logistics Partners L.P. – slide 31
    REAL ESTATE SUMMARY AS OF SEPTEMBER 30, 2014 Properties Controlled by SUN (1) Fee Leased Total Retail 68 85 153 Wholesale 167 89 256 Total Operating Sites 235 174 409 Properties Controlled by ETPs Retail Marketing Segment Fee…
  32. Wells Fargo Securities 2014 Energy Symposium – Sunoco Logistics Partners L.P. – slide 32
    2014 & 2015 CAPEX OUTLOOK in millions 2014 Forecast 2015 Estimate Low High Low High ETP Retail Marketing Maintenance 60 75 95 125 ETP Retail Marketing Growth 205 255 350 450 ETP Retail Marketing Total Capex (including SUN) (1) 265…
  33. Wells Fargo Securities 2014 Energy Symposium – Sunoco Logistics Partners L.P. – slide 33
    ALOHA PETROLEUM LTD. OVERVIEW SUN has agreed to acquire Aloha Petroleum 240 million base with an 8 year earn out structure at 50 / 50 for margins above 68 million Aloha Petroleum Ltd. Aloha, formed in 1977 by Easy Serve (TX), operates…
  34. Wells Fargo Securities 2014 Energy Symposium – Sunoco Logistics Partners L.P. – slide 34
    HAWAIIAN MARKET OVERVIEW The Fundamentals Of The Hawaii Economy, Supported In Part By The Tourism Industry, Drive Growth For Fuel And C-store Retailers Hawaii Market Overview Population Growth Hawaii is serviced by over 300 gas…
  35. Wells Fargo Securities 2014 Energy Symposium – Sunoco Logistics Partners L.P. – slide 35
    ETP RETAIL MARKETING SEGMENT OPERATING RESULTS T hree Months Ended Nine Months Ended In USD millions September 30, September 30, 2014 2013 Change 2014 2013 Change Retail gasoline outlets, end of period: T otal 6,497 4,972 1,525 6,497…
  36. Wells Fargo Securities 2014 Energy Symposium – Sunoco Logistics Partners L.P. – slide 36
    ETP RETAIL MARKETING SEGMENT/SUNOCO INC. RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME In Millions 2009 2010 2011 2012 2013 (1) 6/30/14 LTM (1) Net Income 86 110 169 83 204 283 Taxes 60 70 - - - - Depreciation 92 90 90 100 114 140…
  37. Wells Fargo Securities 2014 Energy Symposium – Sunoco Logistics Partners L.P. – slide 37
    SUSSER HOLDINGS CONSOLIDATED RECONCILIATION OF EBITDA TO NET INCOME In Thousands 2009 2010 2011 2012 2013 6/30/14 LTM(1) Net income attributable to Susser Holdings Corporation 2,068 786 47,457 46,725 14,331 29,325 Net income…
  38. Wells Fargo Securities 2014 Energy Symposium – Sunoco Logistics Partners L.P. – slide 38
    SUNOCO LP, RECONCILIATION OF ADJUSTED EBITDA AND DISTRIBUTABLE CASH FLOW TO NET INCOME In Thousands Predecessor Successor September 1, 2014 Combined Results for Twelve Months Nine Months January 1, 2014 through the Nine Months ended…
  39. Wells Fargo Securities 2014 Energy Symposium – Sunoco Logistics Partners L.P. – slide 39
    ALOHA PETROLEUM RECONCILIATION OF EBITDA TO NET INCOME In Thousands 6/30/14 LTM (1) Net income 10,523 Depreciation, amortization and accretion 10,009 Interest expense, net 2,832 Income tax expense 6,387 EBITDA 29,751 Loss…

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