Stephens Spring Investment Conference June 3-4 2014
Evolution of Our Business Past and Present Wholesale Dealer Site Retail Stripes Site 3
Evolution of Our Business Future April 27, 2014 - Susser Holdings (SUSP parent) agreed to be purchased by Energy Transfer Partners, L.P. (ETP) April 28 Joint announcement and investor conference call* SUSP will remain a separate,…
Current Susser Footprint 5
We are a Key Player in the Motor Fuels Value Chain Motor Fuels Value Chain Crude Oil Refining Storage and Wholesale Retail Production Transportation Distribution We operate within the wholesale distribution segment of the…
Diverse and Stable Sources of Cash Flow Gallons Sold by Channel (1) We distribute 1.6 billion gallons of Commercial motor fuel annually to: 630 Stripes and Sac-N-Pac 14% convenience stores (exclusive supplier) 100 third party…
Our Strong, Long-Term Supplier Relationships Key Brands Overview Valuable supply contracts with major oil companies and refiners More than 20 branded and unbranded suppliers Long-term relationships with 2014 Volumes by…
Recent Results 2014 Q1 Highlights: Grew gallons by 18% over Q1 2013 Gross profit increased by 42% over Q1 2013 Gross profit margin increased from 3.6 cents to 4.0 cents/gallon Added 27 new contracted dealers 8 organic 19 acquired…
SUSP Distributable Cash Flow Distributions Grown by 3.5% Last Four Quarters While Increasing Coverage DCF and Distributions / Unit Distribution Coverage 0.70 1.30 0.64 0.60 0.58 0.58 1.27X 0.54 1.25 1.23X 0.50 0.48 1.22X 0.45…
Delivering Organic Growth 2012 2013 2014 Q1 Total Gallons Growth 10.5% 8.4% 18.1% Retail Same Store 6.6% 3.0% 1.9% Merchandise Sales Growth New Stripes Stores 25 29 2* New Wholesale Contracted 39 32 8* Dealer Sites New…
Organic Wholesale Customer Growth Amigo Mart 2 Zippys Zippys Food Food Mart Mart Houston, TX Killeen, Killeen, TX TX Fresh Start 1 Porter, TX Edge Mart One Stop Bucker Katy, TX Dallas, TX New Wholesale Growth 2009…
Delivering Growth through Acquisitions Acquired Gainesville Fuel, Inc. in September 2013 60 million diesel gallons annual volume Customers are oil & gas producers in North Texas and Oklahoma 2014 expected accretion: SUSP: 0.05 to…
Strategic Flexibility to Pursue Acquisitions Highly fragmented industry dominated by single store operators Oklahoma 2,648 Continued consolidation of 911 smaller, less efficient players New Mexico We supply 5% of convenience…
SUSP - Multiple Drivers of Growth Rapid Stripes motor fuel volume growth Dropdown and Existing locations Organic Growth New locations Through Significant sale/leaseback opportunities with 75 store option Relationship with SUSS…
Our Parent Susser Holdings Corporation One of largest combined retail / wholesale footprints in the fast-growing Southwest 1,250 locations (retail, consignment and contracted branded dealers, including SUSP) Strong financial…
Our Parent Superior Track Record and Market Position Locations Susser vs. the Industry (1) 1,251 1200 1,138 1,171 Cigarettes % of 1,106 Average Store Size Merchandise Sales 1000 915 957 891 884 617 591 (square feet) 35% 32.8%…
Fuel Margin History Pro Forma for MLP Retail Margin per Gallon(1) SUSP Avg Margin per Gallon(2) (cents per gallon) (cents per gallon) 25 4.0 23.2 19.9 - 22.6 0.8 19.9 PF 3.5 16.9 Rpt 20 5.5 18.4 21.5 5.5 19.0 PF 3.0 - 3.0…
Our Parent Embedded Growth Prudent Organic Growth Accelerating Retail Store Growth Accelerating new store openings with our largest New Stores Opened(1) 35 customer, SUSS 29 30 New stores generate 2-3x the 25 25 average store…
Our Parent Embedded Growth Prudent Organic Growth Retail Motor Fuel Gallons Sold (in millions) Retail strategies to drive 1,200 fuel volume growth 1,000 936 963 853 786 Superior facilities and real 800 677 720 736 estate…
Highly Attractive, Growing Markets Texas Market Long-Term Job Growth (1) Texas economy outperforming U.S. Ranked 1 for job growth Michigan (121, 000) Relatively strong housing market California Lower unemployment than the U.S.…
Key Investment Highlights SUSP STABILITY VISIBLE GROWTH Long-term, fee-based contracts Embedded growth with Parent 75 Stripes store dropdown option (45 10-year fixed fee contract with the completed since IPO) Parent 12 in 2014…
Helping communities grow and thrive for over 75 years 24
Appendix
Real Estate Summary As of March 31, 2013 Controlled by Operating: Fee Leased Franchisee Total Sites Retail 304 326 - 630 Wholesale- SPC 9 26 35 Wholesale- SUSP 87 12 522 621 Stripes stores owned by SUSP (1) (40) (40) Total…
Key Financial Results Fiscal Year 2011 2012 2013 2013 Q1 2014 Q1 Merchandise Same Store Sales Growth 6.0% 6.6% 3.0% 4.2% 1.9% Merchandise Margin, Net of Shortages 33.7% 33.9% 33.9% 33.1% 33.9% Retail Average Per-Store Gallons…
Retail Growth Spring 6,844 sq. ft. Carrizo Springs 6,844 sq. ft. Del Rio 6,844 sq. ft. Plus Lube Center Rosenburg 6,844 sq. ft. Karnes City 6,844 sq. ft. New Retail Store Growth Plus Truck Diesel Island 2009 2010 2011…
New Big Box Stores Drive Cash Flow Growth New stores produce 2-3X cash flows of legacy stores 130,000 Sq Ft Lot 20,000 Sq Ft Lot 6,800 Sq Ft Store vs. 2,600 Sq Ft Store 29
Proprietary Restaurant Service Differentiates Susser 406 locations with a restaurant concept 369 Laredo Taco Company locations Authentic Mexican food catering to both Hispanic and non-Hispanic customers Wide variety of…
Widening the Gap (in 000s, based on LTM data) Average Per-Store Merchandise Sales 1,882 1,889 1,792 1,800 1,661 1,540 1,488 1,500 1,437 1,270 1,230 1,223 1,230 1,2371,241 1,217 1,214 1,172 1,173 1,200 1,142 1,127 1,150…
Delivering Best in Class Volume Growth (in 000s, based on LTM data) Average Per-Store Gallons 1,856 1,847 1,855 1,820 1,817 1,825 1,819 1,830 1,797 1,800 1,763 1,725 1,669 1,578 1,600 1,491 1,421 1,388 1,400 1,355 1,319…
Retail Quarterly Volatility Consistent on LTM Basis, Wholesale Margins Even More Stable Quarterly Fuel Margin Cents per Gallon (1) 35.0 31.2 32.4 5 year: 30.0 27.7 Pro 24.8 24.1 25.0 22.8 Actual Forma 20.1 21.2 21.2 19.7 19.6…
Fuel Margin History Before credit Card Fees After Deducting Credit Card Fees Retail Fuel Margin Retail Fuel Margin, net of Credit Cards As Reported As Reported Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD 2006 9.3 15.4 21.1 9.2 13.7 2006 6.6…
Fuel Margin History Wholesale Third Party Fuel Margin (2) Total Consolidated Fuel Margin Total Consolidated Fuel Margin, net of Credit Cards Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD 2006 4.8 5.9 6.9 4.8 5.6 2006 7.0 10.3 13.4…
Post-MLP Organization Structure Susser Holdings Corporation and subsidiaries (Parent) What is at the Parent Common Units Retail operations Subordinated Units 100% Ownership Stripes c-stores Interest Incentive Distribution Rights…
Omnibus Agreement Summary SUSP has an exclusive distribution agreement to distribute all motor fuel volumes purchased by SUSS on existing Stripes and consignment locations for 10 years at a fixed profit margin of 3 per gallon Fuel…
Tracking the Texas Economy Key Economic Indicators Yearly Totals Median Sales Price Value of Active Gasoline Diesel Existing Auto Crude Oil Natural Gas Oil & Gas (Millions of (Millions of Single Sales Net Packages Produced…
Tracking the Texas Economy Key Economic Indicators Monthly Totals Median Sales Price Value of Value of Active Gasoline Diesel Existing Auto Cigarette Crude Oil Natural Gas Oil & Gas (Millions of (Millions of Single Sales Net…
40 Source: Texas A&M Real Estate Center Transportation, Warehousing, Government & Utilities Manufacturing Trade Education Government & Health Services Texas Employment by Industry Professional Information Business…
Susser Holdings Corporation Reconciliation of Net Income to EBITDA, Adjusted EBITDA and Adjusted EBITDAR Fiscal Year Ended Twelve Months Ended January 3, January 2, January 1, December 30, December 29, March 31, March 30, 2010 2011…
Susser Petroleum Partners Reconciliation of Net Income to EBITDA, Adjusted EBITDA and Distributable Cash Flow Year Ended Three Months Ended December 31, December 31, December 31, Mar 31, Mar 31, 2011 2012 2013 2013 2014…
ENERGY TRANSFER PARTNERS INVESTOR CONFERENCE CALL Acquisition of Susser Holdings Corporation Monday, April 28th, 2014
INTRODUCTIONS Speakers: Martin Salinas Chief Financial Officer, ETP Jamie Welch Group Chief Financial Officer & Head of Corp. Development, ETE Bob Owens President & Chief Executive Officer, Sunoco Participants: Kelcy…
TRANSACTION TERMS Energy Transfer Partners, L.P. (ETP) will acquire 100% of Susser Holdings Corp. (SUSS) outstanding common stock for a total consideration of approximately 1.8 billion Acquisition of SUSS shares funded with ETP…
TRANSACTION MATRIX Action Plan Why Susser Full integration is expected to take place in several Sussers business model capitalizes on the strong steps: economy and favorable demographic trends in Texas and surrounding states…
ILLUSTRATIVE TRANSACTION SUMMARY Step 1: Step 2: Step 3: ETP acquires Susser Holdings Dropdown of all retail assets to SUSP SUSP GP and IDR interests moved to ETE ETP acquires 100% of Susser for 80.25 per share Over time, ETPs…
SUSSER BUSINESS OVERVIEW One of Largest Combined Susser Holdings Retail Operations Retail / Wholesale Footprints in the Corporation Sale of Motor Fuel Fast Growing Southwest (SUSS) at Consignment Locations C-Stores 630 100%…
COMBINATION OF TWO HIGHLY COMPLEMENTARY BUSINESSES WILL CREATE A STRONGER AND MORE DIVERSIFIED RETAIL PLATFORM Sunoco Susser Established East Coast and Southeast One of the largest retail/wholesale footprints presence with over 5,000…
INTEGRATION CONSIDERATIONS Achieve buying power synergies related to fuel, convenience merchandise and other procurement activities Sunoco will be able to capitalize on its fuel sourcing expertise over a much larger portfolio The…
SIGNIFICANT, TANGIBLE ANNUAL SYNERGIES HAVE BEEN IDENTIFIED Synergy opportunities are 70 13 expected to well exceed 70 million annually G&A / Shared Services 17 Model Large Contract Purchases, Improved Margin in Prepared…
Illustrative Transaction Timeline TIMING AND STEPS 3 - 4 months expected timing from announcement to closing 6 weeks Subject to Susser shareholder vote & April 2014 customary regulatory approvals 3Q 2014: Week of April 28th 3 4…
CONCLUSION Smart transaction for ETP Anticipated drop downs of the existing Sunoco and Susser retail businesses into SUSP provide a clear path for ETP to segregate the retail business into a dedicated vehicle with its own…
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