Slide 1: Investor Presentation
INVESTOR PRESENTATION December 2018
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 re
Slide 3: Company Snapshot
COMPANY SNAPSHOT SUN is one of the nation's largest wholesale distributors of motor fuels Refining Storage & Wholesale Retail Transportation Distribution • SUN distributes more than 10 fuel brands across 30 states throughout the East Coast, Midwest, South Central and Southeast regions of the contine
Slide 4: 2018: A Transformative Year in Review
2018: A TRANSFORMATIVE YEAR IN REVIEW SUN successfully completed its financial and operational transformation in 2018… January Completed the divestiture December of retail assets to 7-Eleven, April August Expected close of acquisition debt refinancing and unit Superior Plus Sandford Oil of refined p
Slide 5: Compelling Investment Opportunity
KEY INVESTMENT HIGHLIGHTS Significant Economies of Runway of Scale in an COMPELLING Diversified Attractive INVESTMENT Growth Sector OPPORTUNITY • Consistent Income from Stable Unit Distributions • Value Creation Portfolio of Through Appreciation Disciplined Stable Income in Unit Price Financial Stre
Slide 6: Significant Economies of Scale to Thrive in an Attractive Fuel Distribution and Logistics Sector
SIGNIFICANT ECONOMIES OF SCALE TO THRIVE IN AN ATTRACTIVE FUEL DISTRIBUTION AND LOGISTICS SECTOR U.S. Motor Fuel Volumes Wholesale Fuel Margins Remain Robust Remain Strong and Stable • 2016 and 2017 U.S. gasoline demand was highest • Fuel distribution and retail companies are on record at 9.3 millio
Slide 7: Balanced Portfolio of Stable Income Streams
BALANCED PORTFOLIO OF STABLE INCOME STREAMS Fuel Income Rental Income Other Income Diversified Channels of Control of Real Estate Yields Other Services and Operations Distribution Drive Strong and Long-Term, Ratable Source of Contribute Additional Stable Stable Fuel Margins Income Income Streams • D
Slide 8: Proven Runway of Diversified Growth
PROVEN RUNWAY OF DIVERSIFIED GROWTH Grow Core Further Expand Manage Fuel Logistics and Midstream Business Organic Growth Distribution Business • Consolidation opportunities in • Addition of traditional • Leverage Sunoco brand as well as a highly fragmented sector midstream assets to drive other majo
Slide 9: 2018 Acquisitions
2018 ACQUISITIONS Superior Plus Sandford Oil BRENCO AMID Terminals (Closed 4/3/18) (Closed 8/1/18) (Closed 10/16/18) (Expected Close Dec 2018) Wholesale fuels business Wholesale fuels business Wholesale fuels business Refined products terminalling that distributes ~95 that distributes ~200 that dist
Slide 10: Disciplined Financial Strategy
DISCIPLINED FINANCIAL STRATEGY Maintain Balanced Disciplined Distribution Disciplined Financing Capital and Liquidity Coverage Leverage Profile Strategy Expense Model Long-Term Invest in Projects Maintain Credit Target ~1.2x Maintain Cost Target That Support Facility Distribution Efficient Model ~4.
Slide 11: 2019 Business Outlook and Guidance
2019 BUSINESS OUTLOOK AND GUIDANCE Fuel Volumes and Margins Operating Expenses Capital Expenditures Expect Total 2019 Expect 2019 Fuel Volume to be 8.0-8.2 Operating Expenses to be 2019 Growth Capital ~$90+ Million Billion Gallons with Annual Margins Approximately Flat to 2019 Maintenance Capital ~$
Slide 12: Appendix
APPENDIX SUNOCO
Slide 13: Capital Structure and Liquidity
CAPITAL STRUCTURE AND LIQUIDITY ($ in millions) Maturity Rate 9/30/2018 $1.5B Revolving Credit Facility 7/27/2023 L + 200 bps $493 4.875% Senior Notes due 2023 1/15/2023 4.875% 1,000 5.500% Senior Notes due 2026 2/15/2026 5.500% 800 5.875% Senior Notes due 2028 3/15/2028 5.875% 400 Sale Leaseback Ob
Slide 14: Q3 2018 Highlights: Continued Strength in Business and Financial Results
Q3 2018 HIGHLIGHTS: CONTINUED STRENGTH IN BUSINESS AND FINANCIAL RESULTS • Consolidated Q3 2018 Adjusted EBITDA of $208 million • Included $2 million of transaction-related expenses and a one-time cash benefit of approximately $25 million • Leverage of 4.27x compared to 5.59x a year ago and 4.52x in
Slide 15: Q3 2018 Reconciliation
Q3 2018 RECONCILIATION Reconciliation of Adjusted EBITDA to net income and Adjusted EBITDA to Distributable Cash Flow, as adjusted Segment Adjusted EBITDA $ in millions Fuel distribution and marketing $183 All other 25 Total 208 Depreciation, amortization and accretion (42) Interest expense, net (35