Slide 1: Divestiture of Retail Operations in Continental U.S.
INVESTOR CONFERENCE CALL DIVESTITURE OF RETAIL OPERATIONS IN CONTINENTAL U.S. April 6, 2017
Slide 2: Forward-Looking Statements and Non-GAAP Measures
FORWARD-LOOKING STATEMENTS AND NON-GAAP MEASURES Some of the statements in this presentation constitute “forward-looking statements” about Sunoco LP (“SUN”, “we”, “our, and “us”) that involve risks, uncertainties and assumptions, including, without limitation, statements regarding SUN’s proposed sal
Slide 3: Deal Terms Overview
DEAL TERMS OVERVIEW • Sunoco LP (“SUN”) entered into a definitive agreement to sell approximately 1,110 convenience stores to 7-Eleven, Inc. (“7-Eleven”) for a purchase price of $3.3 billion in cash, plus fuel, merchandise, supplies and other inventories at close • Assets divested: Approximately 1,1
Slide 4: First Step in Strategic Decision to Divest Convenience Stores in Continental U.S.
FIRST STEP IN STRATEGIC DECISION TO DIVEST CONVENIENCE STORES IN CONTINENTAL U.S. • 7-Eleven is a logical buyer of majority of SUN’s retail assets in the continental U.S. • SUN has retained J.P. Morgan to market the remaining convenience stores in the continental U.S., including assets in North and
Slide 5: Finished Product Company Within the Energy Transfer Family
FINISHED PRODUCT COMPANY WITHIN THE ENERGY TRANSFER FAMILY Highlights of the Wholesale Business • Limited direct commodity risk given fixed-fee nature Pro Forma Wholesale Volume by Channel • Long-term contracts with blue-chip counterparties provide 29% 26% enhanced and stable cash flows • Reliabilit
Slide 6: Improved Financial State with New Long-Term Leverage Target
IMPROVED FINANCIAL STATE WITH NEW LONG-TERM LEVERAGE TARGET • Transaction proceeds will allow SUN to 7.00x reduce leverage, placing it within a range of 4.50-4.75x, and to target a long-term 6.50x distribution coverage ratio of 1.1x • Year 1 will be impacted by transaction-related 6.00x expenses 5.5
Slide 7: Illustrative Timing and Steps
ILLUSTRATIVE TIMING AND STEPS Expected Timing From Announcement To Closing: 3 – 6 Months April 2017 Q2-Q3 2017 By Q4 2017 Week of April 2nd – Sign Asset Purchase Regulatory and Expected Agreement And Counterparty Transaction Announce The Approvals Close Transaction April 2017 Summer 2017 By Q4 2017
Slide 8: Key Takeaways
KEY TAKEAWAYS • First step in strategic shift away from convenience stores toward focus on MLP Pivotal first step in qualifying businesses transforming to a • Concentrated business model allows for greater focus on fuel supply operations premier nationwide • SUN benefits from size, lower costs, and