Slide 1: Investor Presentation
Investor Presentation December 2020 ©2020 SunocoLP. All Rights Reserved.
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: Sunoco LP At A Glance
Sunoco LP At A Glance The Nation’s Largest Independent Fuel Distributor: • ~8 billion gallons distributed in 2019 • ~7,300 dealer, distributor, and commission agent customers • ~2,600 commercial customers • 77 company-operated locations in Hawaii and on the New Jersey Turnpike • Long-term 7-Eleven t
Slide 4: Key Investment Highlights
Key Investment Highlights Fuel distribution SUN is the largest Favorable sector and logistics is and most diverse fundamentals a highly independent + attractive sector operator within SUN’s competitive within the the sector with advantages energy value scale and an chain iconic brand = Continued str
Slide 5: Highly Attractive Fuel Distribution and Logistics Sector
Highly Attractive Fuel Distribution and Logistics Sector Sector has proven to be resilient in Strong fuel margins underpinned by various supply and demand scenarios favorable industry dynamics • Fuel gross profit is durable, as proven by the • Domestic refining production length provides consistency
Slide 6: Industry Transition Expected to Occur Over Decades, Not Years
Industry Transition Expected to Occur Over Decades, Not Years Consumer Choice Has Transitioned to Trucks, CUVs & SUVs • Fuel efficiency of the U.S. fleet continues to $5.00 100% improve; however, demand decrease has been largely offset by consumers choosing heavier U.S. Avg. Retail Gas Price % of Ne
Slide 7: SUN's Competitive Advantages
SUN’s Competitive Advantages Refining Retail Storage & Transportation Wholesale Distribution Expanding midstream portfolio Scale allows for greater purchasing power, • Recently announced acquisition of a ~350,000 cost efficiencies, and opportunities for growth barrel refined products waterborne term
Slide 8: A Proven History of Delivering Results: Cost Efficiency and Strong Bottom Line
A Proven History of Delivering Results: Cost Efficiency and Strong Bottom Line Cost Efficient Business Model Total Operating Expenses(1) • Post retail divestiture in January 2018, SUN has $1,600 operated a lean, efficient business model even $1,200 -58% with M&A-driven growth in 2018 and organic gro
Slide 9: A Proven History of Delivering Results: Improved Leverage and Coverage
A Proven History of Delivering Results: Improved Leverage and Coverage Improved Leverage Leverage Ratio • Long-term leverage ratio target of 4.0x, revised 6.00x down from a previous range of 4.5x to 4.75x 5.50x • Well laddered debt maturities with ample 5.00x liquidity on revolving credit facility 4
Slide 10: Continued Strong Performance – 2021 Business Outlook and Guidance
Continued Strong Performance – 2021 Business Outlook and Guidance Outlook / Key Metric Highlights Guidance • Although the exact shape of the U.S. motor fuel demand 7.25 – 7.75 Fuel Volume recovery is still not clear, expect continued year-over-year billion gallons volume improvements • Lower than hi
Slide 11: Supportive Environment to Execute on Diversified Growth Strategy
Supportive Environment to Execute on Diversified Growth Strategy Organic Growth Fuel Distribution Midstream • Leverage Sunoco brand as well as other • Midstream organic projects connected to fuel major fuel brands to sign up new customers distribution footprint furthers goal of and retain existing p
Slide 12: Track Record of Acquisitions
Track Record of Acquisitions • C-store, • Wholesale • Wholesale • Wholesale • Wholesale • Refined • Wholesale wholesale fuels fuels fuels fuels products fuels business fuels business business business business terminalling primarily business and and located in located in in North located in New and
Slide 13: Environmental, Social and Governance
Environmental, Social and Governance Sunoco is committed to… … Operational … Socially Responsible … Effective Excellence Behavior Governance Rigorous Environmental Safe, Socially Responsible Starts at the Top Protocols Work Environment • Diverse board with three • Redundant leak detection • Stringen
Slide 14: Appendix
Appendix 14
Slide 15: Reconciliation of Adjusted EBITDA to Net Income
Reconciliation of Adjusted EBITDA to Net Income ($ in millions) 2019 2018 2017 Fuel distribution and marketing $545 $554 $346 All other 120 84 386 Total Adjusted EBITDA 665 638 732 Depreciation, amortization and accretion (183) (182) (203) Interest expense, net (173) (146) (245) Non-cash compensatio