Slide 1: Investor Presentation
INVESTOR PRESENTATION September 2016
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”), and their respective affiliates that involve risks, uncertainties and assumptions, including, without limitation, our di
Slide 3: Company Overview
COMPANY OVERVIEW * Retail Fuel Convenience Store / Merchandise Retail operations at ~1,340 locations in: Pro forma merchandise sales of $2.2 billion in 2015 Southwest – TX, OK, NM, LA 27 consecutive years of Nashville, TN same store sales growth in East Coast – Maine to Florida, covering
Slide 4: SUN Offers Compelling Investment Highlights
SUN OFFERS COMPELLING INVESTMENT HIGHLIGHTS Leading Position SUN owns and represents some of the most iconic brands in the motor fuels industry in Attractive Industry wide non-fuel retail merchandise sales are strong and growing Industry Fuel margins have been resilient across numerous economi
Slide 5: Dropdowns Have Rapidly Increased Scale and Diversity
DROPDOWNS HAVE RAPIDLY INCREASED SCALE AND DIVERSITY SUN (1) MACS / 31.58% of Susser 68.42% of Sunoco, Tigermarket Sunoco, LLC Holdings Corp LLC & 100% Sunoco Retail LLC Date August 29, 2014 October 1, 2014 April 1, July 31, March 31, 2015 2015 2016 Description Wholesale fuel Retail network Legacy S
Slide 6: Nearly $500 Million in Retail & Wholesale Fuel Distribution M&A Since December 2014
NEARLY $500 MILLION IN RETAIL & WHOLESALE FUEL DISTRIBUTION M&A SINCE DECEMBER 2014 Rattlers Aloha Pico Aziz Quick Hawaii Northeast Stores & Valentine Denny Oil Petroleum Petroleum Stops Sites Distributor Kolkhorst Stores (Not Closed) Petroleum Acquired Acquired December 2014 Acquired June Expected
Slide 7: Emerge Acquisition Overview
EMERGE ACQUISITION OVERVIEW Transaction & Asset Overview Purchase Price: $167.7 Million (1) Closed on August 31, 2016 Assets located in Dallas / Ft Worth, TX and Birmingham, AL markets: DFW Terminal - processes up to 7,000 bbls/day w/ storage of ~300,000 bbls Birmingham Terminal - processe
Slide 8: SUN Will Continue to Leverage Organic Growth Opportunities
SUN WILL CONTINUE TO LEVERAGE ORGANIC GROWTH OPPORTUNITIES 40 new-build Stripes stores completed in 2015 in high growth markets with favorable demographics utilizing land bank inventory Building ~35 new-builds in 2016 in high growth areas outside of the oil New to producing regions Industry Al
Slide 9: New "Big Box" Stores Drive Cash Flow Growth
NEW “BIG BOX” STORES DRIVE CASH FLOW GROWTH • New stores produce 2-3X cash flows of smaller legacy stores • Nearly all new builds are 6,800 sq ft • 20% of all Stripes are over 6,800 sq ft 130,000 Sq Ft Lot 20,000 Sq Ft Lot vs. 6,800 Sq Ft Store 2,600 Sq Ft Store 9
Slide 10: Real Estate Portfolio Summary as of 6/30/16
REAL ESTATE PORTFOLIO SUMMARY AS OF 6/30/16 Fee Leased Total Retail 834 510 1,344 Wholesale 551 235 786 Terminal 3 3 6 Total (1) 1,388 748 2,136 (1) Excludes warehouses, offices, and other facilities that fall outside of the standard “retail”, “wholesale” and “terminal” categories 10
Slide 11: SUN's Unique Value Drivers
SUN’S UNIQUE VALUE DRIVERS Fuel Convenience Food Land Bank Typically 40-60 parcels in queue for future development 11
Slide 12: Diversified Lines of Business Generate a Portfolio of Stable Cash Flows
DIVERSIFIED LINES OF BUSINESS GENERATE A PORTFOLIO OF STABLE CASH FLOWS Gross Profit Contribution By Channel (FYE 2015) SUN Pro Forma (1) Gallon Breakdown 5% 2% 33% 67% 30% 13% 18% 39% 9% Fuel Gross Profit 37% 26% 63% Total = $1,946 million 59% Retail Fuel Wholesale Fuel Merch & Other C-Store Rent O
Slide 13: Wholesale and Retail Margins Are Resilient Through Commodity Cycles
WHOLESALE AND RETAIL MARGINS ARE RESILIENT THROUGH COMMODITY CYCLES Cents/gal $/bbl 30 150 25 130 20 110 15 90 10 70 5 50 0 30 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 WTI ($/bbl) Retail Margin (cents/gal) Wholesale Margin (cents/gal) Note: Both Wholesale and Retail Margins reflect existing
Slide 14: 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 only two fuel brands in the top 100 Unique sponsorships provide a
Slide 15: Financial Strategy
FINANCIAL STRATEGY Financial Flexibility Distribution Growth Currently rated Ba2/BB stable Target long-term distribution coverage of ~1.1x Target long-term leverage ratio of 4.0x-4.5x Preserve liquidity under revolving credit facility Rating Agency Comments Debt-to-EBITDA leverage is high
Slide 16: SUN Capital Structure
SUN CAPITAL STRUCTURE ($ in Millions) As Reported 3/31/16 As Reported 6/30/16 Cash $ 77 $ 83 Debt $1.5 Billion Revolver $ 675 $ 675 6.375% Senior Notes Due 2023 800 800 6.25% Senior Notes Due 2021 - 800 5.5% Senior Notes Due 2020 600 600 Other Debt 125 121 Term Loan A 2,035 1,243 Total Debt $ 4,235
Slide 17: Second Quarter 2016 Operating Performance
SECOND QUARTER 2016 OPERATING PERFORMANCE Three Months Ended Three Months Ended June 30, 2016 June 30, 2015 Gallons Sold (in thousands): Retail 641,198 639,148 Wholesale 1,315,728 1,285,041 Total Gallons 1,956,926 1,924,189 Motor Fuel Gross Profit (cents/gallon) Retail 24.0 21.4 Wholesale 8.8 8.6 Vo
Slide 18: First Half 2016 Operating Performance
FIRST HALF 2016 OPERATING PERFORMANCE Six Months Ended Six Months Ended June 30, 2016 June 30, 2015 Gallons Sold (in thousands): Retail 1,249,339 1,228,276 Wholesale 2,548,327 2,604,581 Total Gallons 3,797,666 3,832,857 Motor Fuel Gross Profit (cents/gallon) Retail 22.7 23.3 Wholesale 10.0 7.5 Volum
Slide 19: Appendix
APPENDIX 19
Slide 20: Summary Organizational Structure
SUMMARY ORGANIZATIONAL STRUCTURE Publicly Traded MLP Energy Transfer Equity, L.P. (NYSE: ETE) Public 100% GP Interest, IDRs Unitholders 2% LP Interest (1) Energy Transfer Partners, L.P. 52% LP (NYSE: ETP) Interest (1) 46% LP Interest (1) Sunoco LP (NYSE: SUN) Susser Petroleum Operating Company LLC (
Slide 21: 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 ‒ 2015 marked the 13th consecutive year of industry-wide merchandise sales growth Increasing demand for convenience and improved foodservice offerings continues to drive merchandise sales g
Slide 22: Fragmented Convenience Store Industry Offers Attractive Acquisition Opportunities
FRAGMENTED CONVENIENCE STORE INDUSTRY OFFERS ATTRACTIVE ACQUISITION OPPORTUNITIES Industry is highly fragmented with nearly Ownership of ~ 124,000 Convenience Stores 80,000 stores having operators with less than Selling Fuels 10 locations in their portfolio Smaller operators under continued pres
Slide 23: Wholesale Segment Overview
WHOLESALE SEGMENT OVERVIEW Highly complementary with Retail Highlights of the Wholesale Business Increases purchasing power / De minimis direct diversification Wholesale Volume by Channel commodity risk Increases strategic flexibility to 19% Long term contracts 35% rationalize sites between
Slide 24: The Combined Platform Is One of the Leading Retail Platforms
THE COMBINED PLATFORM IS ONE OF THE LEADING RETAIL PLATFORMS Market Capitalization ($mm) US States with Operations EBITDA – Last Fiscal Year End ($mm) $33,187 43 $2,289 5,147 $715 30 3,260 24 $482 $2,855 2,921 $422 $343 14 14 (1) (2) SUN CST Couche Murphys Casey's SUN CST Couche Murphys Casey's SUN
Slide 25: Reconciliation of Adjusted EBITDA to Net Income, Second Quarter Results
SUN RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME, SECOND QUARTER RESULTS ($ in Thousands) For the Three Months Ended June 30, 2016 2015 Net income (loss) $72,137 $93,534 Depreciation, amortization and accretion 78,724 70,200 Interest Expense, net 50,587 21,198 Income tax expense 1,468 8,926 EBITD
Slide 26: Reconciliation of Adjusted EBITDA to Net Income, First Half Results
SUN RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME, FIRST HALF RESULTS ($ in Thousands) For the Six Months Ended June 30, 2016 2015 Net income (loss) $134,146 $142,840 Depreciation, amortization and accretion 156,790 136,943 Interest Expense, net 78,276 29,175 Income tax expense 3,580 16,989 EBITDA
Slide 27: Reconciliation of Adjusted EBITDA to Net Income, Previous Fiscal Years
SUN RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME, PREVIOUS FISCAL YEARS ($ in Thousands) Predecessor Fiscal Year Fiscal Year Fiscal Year Ended Ended Ended Twelve Months Fiscal Year Ended December 31, December 31, December 31, Ended December December 31, 2011 2012 2013 31, 2014 2015 Net income (lo
Slide 28: Pro Forma Reconciliation of Adjusted EBITDA to Net Income
PRO FORMA RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME ($ in Thousands) Fiscal Year Ended December 31, 2015 Total Net income (loss) $194,068 Depreciation, amortization and accretion 278,309 Interest Expense, net 87,575 Income tax expense 51,689 EBITDA 611,642 Non-cash unit based compensation 7,98