Slide 1: Investor Update April 2015
INVESTOR UPDATE — April 2015
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Some of the statements in this presentation constitute “forward-looking statements” about Sunoco LP (“SUN”) and Energy Transfer Partners, L.P. (“ETP”) and their respective affiliates that involve risks, uncertainties and assumptions, including without limitation, our discu
Slide 3: Non-GAAP Measures and Explanatory Note Regarding Presentation Scope and Format
NON-GAAP MEASURES AND EXPLANATORY NOTE REGARDING PRESENTATION SCOPE AND FORMAT This document includes certain non-GAAP financial measures as defined under SEC Regulation G. A reconciliation of those measures to the most directly comparable GAAP measures is provided in the appendix to this presentati
Slide 4: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS Leading Position in Sunoco owns and represents some of the most iconic brands in the motor fuels industry an Attractive Industry wide non-fuel retail sales are strong and growing Industry Channel and geographic diversity has increased the stability of cash flows in th
Slide 5: The SUN Transformation Is Well Underway
THE SUN TRANSFORMATION IS WELL UNDERWAY August 29, 2014: ETP acquired Susser Holdings (“SUSS”), announced plan to drop SUSS and Sunoco Inc. businesses into SUN September 25, 2014: SUN closed a new 5-year, $1.25 billion Credit Facility. April 10, 2015: SUN amended its Credit Facility and expanded agg
Slide 6: SUN Is Well Positioned for Long-Term Success
SUN IS WELL POSITIONED FOR LONG-TERM SUCCESS Diversified Business and Geography Mitigates Risk and Volatility Strong Track Leading Record of Market Stable Cash Position with Flows Iconic Brands Robust Drop Down Pipeline Supportive with Potential and Dedicated to Augment General Scale and Partners St
Slide 7: Geographically Diverse Platform for Future Drop Down Growth at SUN
GEOGRAPHICALLY DIVERSE PLATFORM FOR FUTURE DROP DOWN GROWTH AT SUN ETP Consolidated SUN + MACS + Aloha + 31.6% Additional Potential Retail Marketing 68.4% of Sunoco LLC of Sunoco LLC Future Growth Segment (1) 12/31/14 EBITDA ($MM): $307 (2) $210 N/A N/A 12/31/14 Motor 2,762 (2)(3) 2,881 (3) 2,122 7,
Slide 8: Significant Additional Scale Opportunity for SUN
SIGNIFICANT ADDITIONAL SCALE OPPORTUNITY FOR SUN Site Count as of December 31, 2014 SUN Sites (SUN + MACS / 68.4% Sunoco Remaining ETP Retail Total Tiger + Aloha + LLC(2) Marketing Segment(3) 31.6% Sunoco LLC) Company 155 - 1,096 1,251 Operated Dealer & Distributor 2,222 3,093 84 5,399 Operated Tota
Slide 9: Drop Down #2: Sunoco LLC Business Overview
DROP DOWN #2: SUNOCO LLC BUSINESS OVERVIEW Sunoco LLC is primarily engaged in the wholesale distribution of motor Geographic Footprint (1) fuels across more than 26 states throughout the East Coast and Southeast regions of the U.S. from Maine to Florida and from Florida to Louisiana Sunoco LLC’s
Slide 10: Diversified Sales Channels Provide a Strong Business Profile
DIVERSIFIED SALES CHANNELS PROVIDE A STRONG BUSINESS PROFILE SUN Pro Forma Gallons Sold by Channel (1) Wholesale “Company Owned (2) / Dealer Operated” - Earn fuel margin and rental income from long-term fuel supply and lease arrangement. Dealer operates under Sunoco or other major fuel brand. Deal
Slide 11: Organic Growth, Acquisitions and Drop Downs Have Increased Cash Flow, Scale and Diversity
ORGANIC GROWTH, ACQUISITIONS AND DROP DOWNS HAVE MEANINGFULLY INCREASED CASH FLOW, SCALE AND DIVERSITY Adjusted EBITDA ($MM) Gallons Sold (MM) SUN MACS & Aloha 31.6% Sunoco LLC 4,145 97 1,666 2,479 1,676 645 645 210 210 105 122 1,834 1,834 1,312 1,450 1,571 32 52 24 (1) (2) 2011 2012 2013 Actual 201
Slide 12: SUN Will Look to Deliver Unitholder Value While Increasing Scale
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 acquisition opportunities Growth expected to be achieved in
Slide 13: Retail Marketing Asset Drop Downs
RETAIL MARKETING ASSET DROP DOWNS ETP previously announced its intent to drop down the existing businesses in its retail marketing segment into SUN in a series of drop down transactions Dropdowns of the existing businesses into SUN provide a clear path for ETP to segregate its retail marketing s
Slide 14: SUN Will Target Prudent Growth via Acquisitions
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 following criteria: Financial hurdles Geography Market marg
Slide 15: Multiple Avenues for Organic Growth
MULTIPLE AVENUES FOR ORGANIC GROWTH New to Industry (“NTI”) Raze & Rebuilds Targeted in high growth markets with favorable Increases returns on existing sites with attractive demographics volume and customer traffic NTI growth allows for more open and modern store Frequently in established m
Slide 16: SUN Has Consistently Grown Distributions Since 2012 IPO
SUN HAS CONSISTENTLY GROWN DISTRIBUTIONS SINCE 2012 IPO Distributions / Unit +3.5% 20% DPU CAGR $0.60 $0.60 $0.55 $0.52 $0.50 $0.50 $0.49 $0.47 $0.45 $0.44 $0.40 $0.30 +10% $0.20 +5% $0.10 +3.5% +3.5% +3.5% +3.5% +3.5% $- Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Future Distrib
Slide 17: Energy Transfer Is Heavily Vested in the Long Term Success of SUN
ENERGY TRANSFER IS HEAVILY VESTED IN THE LONG TERM SUCCESS OF SUN Energy Transfer’s Interests are Clearly Aligned with SUN’s Provides Experienced Flexibility Team that has Around Capital Managed Structure and Acquisitions, Future Drop ETP owns Integrations, Down SUN’s GP + Transitions Consideration
Slide 18: Investment Summary
INVESTMENT SUMMARY Stability Visible Growth • Significant amount of long-term, • Meaningful growth achievable fee-based contracts through significant inventory of drops from ETP • Historical stability of fuel margins • Ability to pursue combined retail / • Strong and resilient industry wholesale ass
Slide 19: Appendix
APPENDIX 19
Slide 20: Summary Org Structure
SUMMARY ORG STRUCTURE Publicly Traded MLP Energy Transfer Equity, L.P. (NYSE: ETE) Public Unitholders Energy Transfer Partners, L.P. 55.9% LP (NYSE: ETP) Interest 44.1% LP Interest (1) 100% GP Interest, IDRs ETP Retail Marketing Segment Sunoco LP (2) (NYSE: SUN) Susser Sunoco Inc. Holdings Corp Non-
Slide 21: Sunoco LP Is a Key Player in the Motor Fuels Value Chain
SUNOCO LP IS A KEY PLAYER IN THE MOTOR FUELS VALUE CHAIN Crude Oil Refining Storage and Wholesale Retail Production Transportation Distribution SUN operates within the wholesale and retail distribution segments of the motor fuels value chain Largely generating profit margin by distributing motor
Slide 22: SUN Wholesale Margins Are Resilient Through Commodity Cycles
SUN WHOLESALE MARGINS ARE RESILIENT THROUGH COMMODITY CYCLES $/bbl cents/gal $105 20 $100 $95 15 $90 $85 $80 10 $75 $70 5 $65 $60 $55 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 WTI ($/bbl) Third-Party Wholesale (cpg) Note: Reflects existing SUN business Pro Forma for acquisition of 31.6% of Suno
Slide 23: Brand Portfolio with Powerful Reach and Strength
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) Second among fuel brands Unique sponsorships provide a powerful growth platform
Slide 24: SUN LP Capital Structure
SUN LP CAPITAL STRUCTURE ($ in Thousands) Historical 12/31/14 (1) As Adjusted 12/31/14 (1) (2) Cash $ 67,151 $ 67,151 Debt (1) Revolver 683,378 671,878 2023 Notes - 800,000 Notes Payable 3,552 3,552 Capital Lease Obligations 493 493 Total Debt 687,423 1,475,923 Unitholder's Equity 1,136,732 919,273
Slide 25: Q4 2014 Update
Q4 2014 UPDATE Sunoco LP (All dollars and gallons in millions) Quarter Ending Quarter Ending % Change FYE Dec 2013 FYE Dec 2014 % Change Dec 2013 Dec 2014 Total Fuel Gallons 416 607 46% 1,571 2,012 28% Average Fuel Margin cents/gallon 3.8 13.0 242% 3.7 7.0 89% Merchandise Sales 0 10 N/A - 83 N/A Adj
Slide 26: Real Estate Summary as of December 31, 2014
REAL ESTATE SUMMARY AS OF DECEMBER 31, 2014 Properties Controlled by SUN Fee Leased Total Retail 67 88 155 (1) Wholesale 207 110 317 Total Operating Sites 274 198 472 Properties Controlled by Sunoco LLC Fee Leased Total Retail 0 0 0 Wholesale 326 99 425 Total Operating Sites 326 99 425 (1) Includes
Slide 27: SUN LP Poised to Hold a Leading Position in a Stable & Thriving C-Store Industry
SUN LP POISED TO HOLD A LEADING 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 improved foodservice offerings continues to drive merchandise sales g
Slide 28: Fragmented Convenience Store Industry Offers Attractive Acquisition Opportunities
FRAGMENTED CONVENIENCE STORE INDUSTRY OFFERS ATTRACTIVE ACQUISITION OPPORTUNITIES Industry is highly fragmented with almost Ownership of ~ 128,000 Convenience 60% of the industry comprising single- Stores Selling Fuel (1) store owners We continually evaluate acquisition opportunities 501+ Stores
Slide 29: Fuel Distribution Produces Significant Qualifying Income
FUEL DISTRIBUTION PRODUCES SIGNIFICANT QUALIFYING INCOME Qualifying Non-Qualifying Wholesale supply of fuel to related Sales of fuel products to retail party, independent dealers or lessee customers dealers, and most 3rd parties Merchandise sales Real property rental income from Rental inc
Slide 30: SUN Reconciliation of Adjusted EBITDA to Net Income
SUN RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME ($ in Thousands) Predecessor Successor Pro Forma Pro Forma Combined Actual Combined Fiscal Year Fiscal Year Fiscal Year Results for the Results for the Ended Ended Ended Twelve Months Twelve Months Fiscal Year December 31, December 31, December 31,
Slide 31: Sunoco LLC Reconciliation of Adjusted EBITDA to Net Income
SUNOCO LLC RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME ($ in Thousands) Year Ended December 31, Year Ended December 31, 2013 2014 Net income (loss) $134,413 $36,732 Depreciation, amortization and accretion 48,091 50,547 Income tax expense 64,744 44,862 EBITDA 248,278 132,141 Non-cash unit based