Slide 1: Investor Presentation
Investor Presentation December 2022
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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, the expected future performance of SUN (including expected r
Slide 3: America's Largest Independent Fuel Distributor
America’s Largest Independent Fuel Distributor • ~7.7 billion gallons distributed Sunoco’s Fuel Distribution and across 40 states and territories Logistics Infrastructure Platform • ~7,300 dealer, distributor, and Wholesale / Retail Sites commission agent customers Fuel Terminals • ~2,800 commercial
Slide 4: Key Financial Stats
Key Financial Stats Sunoco LP (NYSE: SUN) • Revenue (TTM 3Q22): $25 billion • Credit Ratings: • Adjusted EBITDA (TTM 3Q22): $879 million(1) – Moody’s: Ba3 (Stable) • Market Capitalization: ~$3.6 billion(2) – S&P: BB (Stable) • Enterprise Value: ~$6.8 billion(2) – Fitch: BB+ (Stable) • Distribution:
Slide 5: A Compelling Investment Case
A Compelling Investment Case Strong Yield, Stability, and Growth Attractive and Sustainable Distribution • Nearly an 8% yield(1) • 1.8x coverage ratio at 3Q22 underpins the sustainability of $3.30 / unit annual distribution • Preserved distribution through significant market turbulence (e.g. COVID,
Slide 6: Continued Strong Performance: 2023 Business Outlook and Guidance
Continued Strong Performance: 2023 Business Outlook and Guidance Outlook / Key Metric Key Points Guidance ~7.8 • Fuel volume and margin are interrelated billion gallons Fuel Volume / Margin • Industry breakeven margins continue to move higher • Proven track record of optimizing gross profit ~12 CPG
Slide 7: Gross Profit Stability
Gross Profit Stability COVID Ukraine, $1,200 Inflation 12.7 Gross Profit ($MM) $1,000 11.9 11.2 $800 10.1 $600 8.2 7.1 7.5 7.6 $400 $200 $- 2019 2020 2021 TTM 3Q22 CPG Volume (BN Gal) Gross Profit ($MM) • Long-term take-or-pay supply agreement with 7-Eleven provides stable foundation of gross profit
Slide 8: Cost Efficient Model Drives EBITDA Growth
Cost Efficient Model Drives EBITDA Growth $1,000 COVID Ukraine, Inflation $879 Since 2019, Total $750 $739 $754 Operating Expenses(2) have grown by < 0.5% $665 annually… $MM $500 $501 $506 $448 $438 …While Adjusted $250 EBITDA(1) has grown by ~10% annually $- 2019 2020 2021 TTM 3Q22 Adjusted EBITDA(
Slide 9: Stability Amid Economic and Geopolitical Volatility
Stability Amid Economic and Geopolitical Volatility History of Delivering Strong and Stable Performance in Challenging Environments Ukraine, Inflation COVID (1) SUN’s Stable Portfolio of Income Recession • Long-term take-or-pay supply agreement with 7-Eleven provides stable foundation of gross profi
Slide 10: Capital Allocation Strategy
Capital Allocation Strategy Maintain a Stable and Secure Distribution Secure • Coverage target of at least 1.4x Distribution • 10+ years without a distribution reduction (since inception in 2012) Protect Balance Sheet Strong • Long-term leverage target of 4.0x Balance • No debt maturities until 2027
Slide 11: Track Record of Successful Acquisitions
Track Record of Successful Acquisitions Pre-2019 Disciplined M&A – A Key Component of Growth $1,000 4.6x 4.2x 4.2x $879 3.7x $800 IPT INTERNATIONAL PETROLEUM TRADERS, INC. $739 $754 $600 $665 $640 $MM $542 $517 $400 $453 1.8x 1.6x 1.5x $200 1.3x $0 2019 2020 2021 TTM 3Q22 (1) (1) Adjusted EBITDA DCF
Slide 12: Industry Transition Will Occur Over Decades
Industry Transition Will Occur Over Decades Third Party Transition Scenarios 100% 100% • EVs achieve < 60% penetration by 2040 in BloombergNEF scenario… far less in EIA scenario 80% 80% • Fleet transition will span decades given low starting point, EV sales (only 3.2% in 2021(1)), and the high EV %
Slide 13: Total Shareholder Return
Strong Yield, Stability, and Growth SUN’s Strategy Has Delivered Superior Returns COVID Ukraine, 225% Inflation Since April 2017, SUN has 175% outperformed the S&P 500 by In April 2017, SUN SUN +222%(1) over 130% ... Total Shareholder Return announced a new strategic (23% annual return) 125% directi
Slide 14: Committed to Corporate Responsibility
Committed to Corporate Responsibility Demonstrating Environmental Behaving Responsibly in the Building and Maintaining a Awareness and Performance Workplace and the Community Culture of Responsibility Effective Environmental Protocols Responsible Work Environment Starts at the Top • Redundant leak d
Slide 15: Reconciliation of Adjusted EBITDA and DCF, As Adjusted to Net Income
Reconciliation of Adjusted EBITDA and DCF, As Adjusted to Net Income(1) TTM 9/30/22 2021 2020 2019 ($ in millions) Fuel distribution and marketing $ 765 $ 672 $ 654 $ 545 All other 114 82 85 120 Total Adjusted EBITDA 879 754 739 665 Depreciation, amortization and accretion (193) (177) (189) (183) In