Slide 1: Investor Update June 2015
INVESTOR UPDATE June 2015
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Some of the statements in this presentation constitute “forward-looking statements” about Sunoco LP (“SUN”) and Energy Transfer Partners, L.P. (“ETP”) and their respective affiliates that involve risks, uncertainties and assumptions, including without limitation, our discu
Slide 3: Non-GAAP Measures and Explanatory Note Regarding Presentation Scope and Format
NON-GAAP MEASURES AND EXPLANATORY NOTE REGARDING PRESENTATION SCOPE AND FORMAT This document includes certain non-GAAP financial measures as defined under SEC Regulation G. A reconciliation of those measures to the most directly comparable GAAP measures is provided in the appendix to this presentati
Slide 4: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS Leading Position in Sunoco owns and represents some of the most iconic brands in the motor fuels industry an Attractive Industry wide non-fuel retail sales are strong and growing Industry Channel and geographic diversity has increased the stability of cash flows in th
Slide 5: The SUN Transformation Is Well Underway
THE SUN TRANSFORMATION IS WELL UNDERWAY August 29, 2014: ETP acquired Susser Holdings (“SUSS”), announced plan to drop SUSS and Sunoco Inc. businesses into SUN September 25, 2014: SUN closed a new 5-year, $1.25 billion Credit Facility. April 10, 2015: SUN amended its Credit Facility and expanded agg
Slide 6: SUN Is Well Positioned for Long-Term Success
SUN IS WELL POSITIONED FOR LONG-TERM SUCCESS Diversified Business and Geography Mitigates Risk and Volatility Strong Track Leading Record of Market Stable Cash Position with Flows Iconic Brands Robust Drop Down Pipeline Supportive with Potential and Dedicated to Augment General Scale and Partners St
Slide 7: SUN Has Consistently Grown Distributions Since 2012 IPO
SUN HAS CONSISTENTLY GROWN DISTRIBUTIONS SINCE 2012 IPO $ / Unit $0.70 $0.65 22% DPU CAGR $0.65 $0.60 $0.60 $0.55 $0.55 $0.50 $0.52 $0.50 $0.49 $0.45 $0.47 $0.45 2.0 $0.40 1.5 $0.35 1.0 0.5 $0.30 0.0 2Q 2014 3Q 2014 4Q 2014 1Q 2015 $0.25 Coverage - LTM $0.20 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3
Slide 8: Geographically Diverse Platform for Future Drop Down Growth at SUN
GEOGRAPHICALLY DIVERSE PLATFORM FOR FUTURE DROP DOWN GROWTH AT SUN ETP Consolidated SUN + MACS + Aloha + 31.6% of Assets Intended to be Dropped Retail Marketing Sunoco LLC Down (1) Segment FYE 12/31/14 Adjusted $307 (2) -- N/A EBITDA ($MM): LTM 3/31/15 Motor 4,909(3) 5,020 7,778(4) Fuel Sales (MM Ga
Slide 9: Sunoco LP Closed on 31.6% of Sunoco LLC on April 1, 2015
SUNOCO LP CLOSED ON 31.6% OF SUNOCO LLC ON APRIL 1, 2015 Sunoco LLC is primarily engaged in the wholesale distribution of motor fuels across more than 26 states throughout the East Coast and Southeast Geographic Footprint (1) regions of the U.S. from Maine to Florida and from Florida to Louisiana
Slide 10: SUN Wholesale Margins Are Resilient Through Commodity Cycles
SUN WHOLESALE MARGINS ARE RESILIENT THROUGH COMMODITY CYCLES $/bbl cents/gal $105 20 $95 15 $85 $75 10 $65 5 $55 $45 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 1QLTM WTI ($/bbl) Third-Party Wholesale (cpg) Note: Reflects existing SUN business pro forma for acquisition of 31.6% of Sunoco LLC. All
Slide 11: Diversified Sales Channels Provide a Strong Business Profile
DIVERSIFIED SALES CHANNELS PROVIDE A STRONG BUSINESS PROFILE SUN Pro Forma Gallons Sold by Channel (1) Wholesale “Company Owned (2) / Dealer Operated” - Earn fuel margin and rental income from long-term fuel supply and lease arrangement. Dealer operates under Sunoco or other major fuel brand. Deal
Slide 12: 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 MACS & Aloha 31.6% Sunoco LLC 97 2% 1,666 13% 18% 645 645 210 210 105 9% 122 1,834 1,834 1,312 1,450 1,571 32 52 24 (1) (2) 2011 2012 2013 Actual 2014 Pr
Slide 13: Significant Additional Scale Opportunity for SUN
SIGNIFICANT ADDITIONAL SCALE OPPORTUNITY FOR SUN Site Count as of March 31, 2015 SUN Sites (SUN + MACS / Assets Held at ETP(1) Total Tiger + Aloha + 31.6% Sunoco LLC) Company 155 1,103 1,258 Operated Dealer & Distributor 2,228 3,197 5,425 Operated Total Sites 2,383(2) 4,300 6,683 Hawaii Company Oper
Slide 14: SUN Will Look to Deliver Unitholder Value While Increasing Scale
SUN WILL LOOK TO DELIVER UNITHOLDER VALUE WHILE INCREASING SCALE SUN will continue to use multiple avenues to execute its growth strategy: Drop down growth Wholesale growth Same-store sales growth New store growth Third party acquisition opportunities Growth expected to be achieved in
Slide 15: Retail Marketing Asset Drop Downs
RETAIL MARKETING ASSET DROP DOWNS ETP previously announced its intent to drop down the existing businesses in its retail marketing segment into SUN in a series of drop down transactions Dropdowns of the existing businesses into SUN provide a clear path for ETP to segregate its retail marketing s
Slide 16: SUN Will Target Prudent Growth via Acquisitions
SUN WILL TARGET PRUDENT GROWTH VIA ACQUISITIONS SUN will continue to look to opportunistically acquire strong performing retail and wholesale businesses / assets in attractive markets We evaluate potential acquisitions through the following criteria: Financial hurdles Geography Market marg
Slide 17: Multiple Avenues for Organic Growth
MULTIPLE AVENUES FOR ORGANIC GROWTH New to Industry (“NTI”) Raze & Rebuilds Purchase and leaseback 30 to 40 new convenience Increases returns on existing sites with attractive stores that Stripes plans to build in 2015 volume and customer traffic Targeted in high growth markets with favorable
Slide 18: Energy Transfer Is Heavily Vested in the Long Term Success of SUN
ENERGY TRANSFER IS HEAVILY VESTED IN THE LONG TERM SUCCESS OF SUN Energy Transfer’s Interests are Clearly Aligned with SUN’s Provides Experienced Flexibility Team that has Around Capital Managed Structure and Acquisitions, Future Drop ETP owns Integrations, Down SUN’s GP + Transitions Consideration
Slide 19: Investment Summary
INVESTMENT SUMMARY Stability Visible Growth • Significant amount of long-term, • Meaningful growth achievable fee-based contracts through significant inventory of drops from ETP • Historical stability of fuel margins • Ability to pursue combined retail / • Strong and resilient industry wholesale ass
Slide 20: Appendix
APPENDIX 20
Slide 21: Summary Org Structure
SUMMARY ORG STRUCTURE Publicly Traded MLP Energy Transfer Equity, L.P. (NYSE: ETE) Public Unitholders Energy Transfer Partners, L.P. 55.9% LP (NYSE: ETP) Interest 44.1% LP Interest (1) 100% GP Interest, IDRs ETP Retail Marketing Segment Sunoco LP (2) (NYSE: SUN) Susser Sunoco Inc. Holdings Corp Non-
Slide 22: Sunoco LP Is a Key Player in the Motor Fuels Value Chain
SUNOCO LP IS A KEY PLAYER IN THE MOTOR FUELS VALUE CHAIN Crude Oil Refining Storage and Wholesale Retail Production Transportation Distribution SUN operates within the wholesale and retail distribution segments of the motor fuels value chain Largely generating profit margin by distributing motor
Slide 23: Q1 2015 Update
Q1 2015 UPDATE (All dollars and gallons in millions) Quarter Ending Quarter Ending % Change LTM Dec 2014 LTM Mar 2015 % Change Mar 2014 Mar 2015 Total Fuel Gallons 433.4 606.8 40% 1,970.2 2,143.6 9% Retail 0.0 67.8 Wholesale third-party 155.6 234.7 51% Wholesale affiliated 277.8 304.3 10% Average Fu
Slide 24: 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 fuel brands Unique sponsorships provide a powerful growth platform
Slide 25: SUN LP Capital Structure
SUN LP CAPITAL STRUCTURE ($ in Thousands) As of 3/31/15 (1) As Adjusted 3/31/15 (1) (2) Cash $ 50,971 $ 50,971 Debt (1) Revolver 684,775 673,275 2023 Notes - 800,000 Notes Payable 3,543 3,543 Capital Lease Obligations 461 461 Total Debt 688,779 1,477,279 Unitholder's Equity 1,136,021 918,562 Total C
Slide 26: Real Estate Summary as of March 31, 2015
REAL ESTATE SUMMARY AS OF MARCH 31, 2015 Properties Controlled by SUN Fee Leased Total Retail 68 87 155 (1) Wholesale 216 107 323 Total Operating Sites 284 194 478 Properties Controlled by Sunoco LLC Fee Leased Total Retail 0 0 0 Wholesale 325 96 421 Total Operating Sites 325 96 421 (1) Includes 72
Slide 27: 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 ‒ 2014 marked the 12th consecutive year of industry-wide merchandise sales growth Increasing demand for convenience and improved foodservice offerings continues to drive merchandise sales g
Slide 28: Fragmented Convenience Store Industry Offers Attractive Acquisition Opportunities
FRAGMENTED CONVENIENCE STORE INDUSTRY OFFERS ATTRACTIVE ACQUISITION OPPORTUNITIES Industry is highly fragmented with over Ownership of ~ 128,000 Convenience 47,000 stores comprising chain operators Stores Selling Fuel (1) with greater than ten locations in their portfolio We continually evaluate
Slide 29: Fuel Distribution Produces Significant Qualifying Income
FUEL DISTRIBUTION PRODUCES SIGNIFICANT QUALIFYING INCOME Qualifying Non-Qualifying Wholesale supply of fuel to related Sales of fuel products to retail party, independent dealers or lessee customers dealers, and most 3rd parties Merchandise sales Real property rental income from Rental inc
Slide 30: SUN Reconciliation of Adjusted EBITDA to Net Income
SUN RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME ($ in Thousands) Predecessor Successor Pro Forma Pro Forma Combined Actual Combined Fiscal Year Fiscal Year Fiscal Year Results for the Results for the Ended Ended Ended Twelve Months Twelve Months Fiscal Year December 31, December 31, December 31,
Slide 31: SUN Reconciliation of Adjusted EBITDA to Net Income
SUN RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME ($ in Thousands) Fiscal Year Ended 1Q Ended March 31, December 31, 2014 2013 2014 Net Income (loss) $57,786 $10,132 $17,918 Depreciation, amortization and accretion 26,955 3,326 17,566 Interest expense, net 14,329 1,502 8,197 Income tax expense 2,3
Slide 32: Sunoco LLC Reconciliation of Adjusted EBITDA to Net Income
SUNOCO LLC RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME ($ in Thousands) Fiscal Year Ended December 31, 2013 2014 Net income (loss) $134,413 $36,732 Depreciation, amortization and accretion 48,091 50,547 Income tax expense 65,774 44,862 EBITDA 248,278 132,141 Non-cash unit based compensation 777