Slide 1: Investor Presentation November 2016
INVESTOR PRESENTATION November 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: Overview of Sunoco LP
OVERVIEW OF SUNOCO LP* Sunoco LP (NYSE: SUN) is a master limited partnership with retail and wholesale operations spanning more than 30 states, headquartered in Dallas, TX and a part of the Energy Transfer family of companies Retail Segment Wholesale Segment • Retail operations at ~1,340 locations •
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: History of the Partnership
HISTORY OF THE PARTNERSHIP Sunoco opened its first service station in 1920 PA 1925 Sunoco becomes listed on the NYSE Susser started operations in Corpus Christi, 1930s TX Sunoco becomes the official fuel of 2004 NASCAR 2012 Susser Petroleum Partners (SUSP) IPO Sunoco acquired by ETP 2014 Susser Hold
Slide 6: Over $500 Million in Retail & Wholesale Fuel Distribution M&A Since December 2014
OVER $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 Petroleum Acquired Acquired December 2014 Acquired April Acquired July December
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 9/30/16
REAL ESTATE PORTFOLIO SUMMARY AS OF 9/30/16 Fee Leased Total Retail 838 515 1,353 Wholesale 553 233 786 Terminal 5 3 8 Total (1) 1,396 751 2,147 (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 Real Estate ~1,400 owned properties spanning over 30 states 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 = $1,946 million 59% Retail Fuel Wholesale Fuel Merch & Other C-Store Rent O
Slide 13: Brand Portfolio with Powerful Reach and Strength
BRAND PORTFOLIO WITH POWERFUL REACH AND STRENGTH Sunoco ranks in the top 100 U.S. brands in both familiarity and favorability (1) Second among only two fuel brands in the top 100 Unique sponsorships provide a powerful growth platform ─ Official fuel of NASCAR ─ Official fuel of NHRA Sunoco h
Slide 14: Sunoco LP Merchandising Overview
SUNOCO LP MERCHANDISING OVERVIEW Sunoco Retail Brands • ~700 locations in TX, OK, NM & LA • ~500 locations in eastern 13 states • ~52 locations on four main Hawaiian • Value-oriented customer • Quality store facilities with an attractive islands • Hispanic male consumer 18-34 image • Strong local as
Slide 15: Stripes – New Store Concept
STRIPES – NEW STORE CONCEPT Laredo Taco Company restaurants differentiate Sunoco stores and are a key traffic driver with LTC guests coming more than twice as often. This was the driver behind the new Stripes Store design that is currently under construction to continue to elevate Laredo Taco’s bran
Slide 16: SUN Liquidity and Capital Structure
SUN LIQUIDITY AND CAPITAL STRUCTURE ($ in Millions) As Reported As Reported 6/30/16 9/30/16 • ~$285 million decrease in liquidity from Revolver Capacity $1,500 $1,500 Q2 to Q3 2016 largely driven by Emerge Less: Total Borrowings ($675) ($958) acquisition and growth capital spend Less: Letters of Cre
Slide 17: Debt Maturity & Interest Rate Exposure
DEBT MATURITY & INTEREST RATE EXPOSURE ($ in Millions) Debt Maturity Schedule Current Interest Rate Exposure $3,000 $519 SUN will seek out opportunities $2,500 Undrawn to term out remaining balance of Revolver term loan $2,000 $958 51% 49% Drawn Revolver $1,500 $2,201 in 2019 6.25% Senior $1,000 mat
Slide 18: Third Quarter 2016 Operating Performance
THIRD QUARTER 2016 OPERATING PERFORMANCE Three Months Ended Three Months Ended Sept 30, 2016 Sept 30, 2015 Gallons Sold (in thousands): Retail 651,386 639,824 Wholesale 1,371,236 1,308,814 Total Gallons 2,022,622 1,948,638 Motor Fuel Gross Profit (cents/gallon) Retail 27.5 31.2 Wholesale 10.0 12.5 V
Slide 19: 9/30/2016 YTD Operating Performance
9/30/2016 YTD OPERATING PERFORMANCE Nine Months Ended Nine Months Ended Sept 30, 2016 Sept 30, 2015 Gallons Sold (in thousands): Retail 1,890,590 1,868,100 Wholesale 3,929,697 3,913,395 Total Gallons 5,820,287 5,781,495 Motor Fuel Gross Profit (cents/gallon) Retail 23.5 26.0 Wholesale 10.0 9.3 Volum
Slide 20: Appendix
APPENDIX 20
Slide 21: 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 22: SUN's Scale and Diversity: Dropdowns Rapidly Increased
DROPDOWNS RAPIDLY INCREASED SUN’S SCALE AND DIVERSITY Drop 1 Drop 2 Drop 3 Drop 4 Susser Holdings 68.42% of Sunoco, LLC & MACS / Tigermarket 31.58% of Sunoco, LLC Corporation 100% of Sunoco Retail LLC 10/1/2014 4/1/2015 7/31/2016 3/31/2016 $768 million $816 million $1.9 billion $2.2 billion Maryland
Slide 23: 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 24: 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 25: 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 26: 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 27: 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) $36,154 43 $2,289 $4,687 $715 30 $3,636 24 $482 $2,766 $2,974 $422 $343 14 14 (1) (2) SUN CST Couche Murphys Casey's SUN CST Couche Murphys Casey's S
Slide 28: Reconciliation of Adjusted EBITDA to Net Income, Third Quarter Results
SUN RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME, THIRD QUARTER RESULTS ($ in Thousands) For the Three Months Ended Sept 30, 2016 2015 Net income (loss) $44,551 $34,711 Depreciation, amortization and accretion 77,628 65,984 Interest Expense, net 54,289 28,517 Income tax expense 5,310 30,124 EBITD
Slide 29: Reconciliation of Adjusted EBITDA to Net Income, Nine Months Ended Sept 30, 2016
SUN RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME, NONE MONTHS ENDED SEPT 30, 2016 ($ in Thousands) For the Nine Months Ended Sept 30, 2016 2015 Net income (loss) $178,697 $177,551 Depreciation, amortization and accretion 234,418 202,927 Interest Expense, net 132,565 57,692 Income tax expense 8,89
Slide 30: Reconciliation of Adjusted EBITDA to Net Income, Previous Fiscal Years
SUN RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME, PREVIOUS FISCAL YEARS ($ 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 31: 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