Slide 1: Investor Presentation
INVESTOR PRESENTATION June 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 ~1,338 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: Retail Acquisition Completes Transition of Retail Assets from ETP
RETAIL ACQUISITION COMPLETES TRANSITION OF RETAIL ASSETS FROM ETP Completed Retail Acquisition 68.42% of 100% of Sunoco SUN, prior to Retail Acquisition (1) SUN Pro Forma Sunoco, LLC Retail LLC FYE 12/31/15 Adjusted (2) $460 $154 $90 $703 EBITDA ($MM): FYE 2015 Motor 3,770 2,775 1,074 7,620 Fuel Sal
Slide 7: 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 68% LLC + Sunoco R&M SUN 31.58% Sunoco LLC SHC 68.42% Sunoco LLC + Sunoco R&M 7,620 $703 3,849 $244 3,770 1,280 1,280 2,490 $460 (1) 1,281 1,281 1,281 1,
Slide 8: Over $350 Million in Third Party M&A Since December 2014
OVER $350 MILLION IN THIRD PARTY M&A SINCE DECEMBER 2014 Aloha Pico Aziz Quick Hawaii Northeast Petroleum Petroleum Stops Sites Distributor Acquired Acquired December 2014 Acquired April Acquired July December 2015 2015 2015 from Alta East, Acquired Inc. October 2015 Hawaii-based 55 million gallons
Slide 9: 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 35-40 new-builds in 2016 in high growth areas outside of the oil New to producing regions Industry
Slide 10: 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 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: 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 13: 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% 30% 67% 13% 18% 39% 9% Fuel Gross Profit 37% 26% 63% Total = $1,946 million 59% Retail Fuel Wholesale Fuel Merch & Other C-Store Rent O
Slide 14: Brand Portfolio with Powerful Reach and Strength
BRAND PORTFOLIO WITH POWERFUL REACH AND STRENGTH Brand equity and presence spans fuel, food service and convenience store platforms Sunoco ranks in the top 100 U.S. brands in both familiarity and favorability (1) Second among only two fuel brands in the top 100 Unique sponsorships provide a
Slide 15: Financial Strategy
FINANCIAL STRATEGY Financial Flexibility Distribution Growth Currently rated Ba2/BB stable Target long-term distribution coverage of ~1.1x Target long-term leverage ratio of 4.0x-4.5x Preserve liquidity under revolving credit facility Rating Agency Comments Debt-to-EBITDA leverage is high
Slide 16: SUN Capital Structure
SUN CAPITAL STRUCTURE ($ in Millions) 3/31/16 As Adjusted 3/31/16 (1) Cash $ 77 $ 77 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 125 125 Term Loan A 2,035 1,243 Total Debt $ 4,235 $ 4,243
Slide 17: 1Q 2016 Operating Performance
1Q 2016 OPERATING PERFORMANCE Three Months Ended Three Months Ended March 31, 2015 March 31, 2016 Gallons Sold (in thousands): Retail 589,096 608,141 Wholesale 1,296,575 1,232,599 Total Gallons 1,885,671 1,840,740 Motor Fuel Gross Profit (cents/gallon) Retail 18.6 21.3 Wholesale 9.6 11.4 Volume-Weig
Slide 18: Appendix
APPENDIX 18
Slide 19: 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 20: SUN LP Poised to Hold a Leading Position in a Stable and 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 21: 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 ten locations in their portfolio Smaller operators under continued pre
Slide 22: 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 23: 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) $33,019 43 $1,913 $4,455 $703 30 $3,159 24 $482 $2,929 $2,585 $422 $343 14 14 (1) (2) SUN CST Couche Murphys Casey's SUN CST Couche Murphys Casey's S
Slide 24: Retail Acquisition Overview
RETAIL ACQUISITION OVERVIEW On March 31, 2016, SUN completed its acquisition of the remaining wholesale fuel and retail assets from ETP for a total purchase price of $2.226 billion The transaction is expected to be immediately accretive to both DCF and distributions per unit for 2016 and beyond,
Slide 25: SUN Reconciliation of Adjusted EBITDA to Net Income
SUN RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME ($ 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 (loss) $10,598 $17,570 $37
Slide 26: Pro Forma Reconciliation of Adjusted EBITDA to Net Income
PRO FORMA RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME ($ in Thousands) Fiscal Year Ended December 31, 2015 Legacy SUN, prior to Retail 68.42% Sunoco Pro Forma Acquisition Sunoco LLC Retail LLC Financing Total Net income (loss) $183,605 -- $10,465 $(92,886) $101,184 Depreciation, amortization and