Slide 1: Investor Presentation May 2018
INVESTOR PRESENTATION May 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: Laying the Foundation for the Future
LAYING THE FOUNDATION FOR THE FUTURE ● Executed business transformation • Divested the majority of company-operated retail sites to 7-Eleven • Includes ~2 billion gallons sold under 15-year, take-or-pay fuel supply agreement that grows an additional 500 million gallons over four years • Converted 20
Slide 4: Q1 2018 Continuing Operations Reconciliation
Q1 2018 CONTINUING OPERATIONS RECONCILIATION Reconciliation of Net Income To Adjusted EBITDA Q1 2018 Q1 2018 Consolidated Continuing (1) (2) ($ in millions) Operations Operations Income (loss) from continuing operations ($78) ($78) Loss from discontinued operations, net of income taxes (237) (3) Net
Slide 5: Guidance on the New Business Model
GUIDANCE ON THE NEW BUSINESS MODEL Operating G&A Rent Cents Per Maintenance Growth Expenses Expenses Expenses Gallon Capital Capital ~$325 million ~$140 million ~$75 million 8.0 to 9.5 range ~$40 million ~$90 million • We expect a • The • We expect • Our range • Maintenance • Growth significant elim
Slide 6: Key Investment Highlights of the New Business Model
KEY INVESTMENT HIGHLIGHTS OF THE NEW BUSINESS MODEL 2 3 Significant Portfolio Of Economies Of Stable Income Scale Streams 1 Attractive Fuel Distribution Sector 5 4 Lean Capital Runway Of And Expense Diversified Structure With Growth A Disciplined Financial Strategy 6
Slide 7: Significant Economies of Scale to Thrive in an Attractive Fuel Distribution Sector
SIGNIFICANT ECONOMIES OF SCALE TO THRIVE IN AN 1 & 2 ATTRACTIVE FUEL DISTRIBUTION SECTOR ● Fuel distribution sector remains robust • Fuel distribution margins have been attractive and stable • 2016 and 2017 U.S. gasoline demand was highest on record at 9.3 MBD (1) ● SUN is well positioned to capital
Slide 8: Portfolio of Stable Income Streams
3 PORTFOLIO OF STABLE INCOME STREAMS Portfolio of Diversified Channels 12.0¢ • 7-Eleven: 15-year take or pay Average : 9.3¢ Minimum : 8.1¢ • Dealers • Commission agents 8.0¢ • Distributors Fuel • Commercial accounts ~ % of Gross Profit ~70%(1) 4.0¢ • Transmix operations • Other fuel sales (Aloha, tu
Slide 9: Lean Capital and Expense Structure with a Disciplined Financial Strategy
4 LEAN CAPITAL AND EXPENSE STRUCTURE WITH A DISCIPLINED FINANCIAL STRATEGY Maintain Distribution Balanced Capital And Liquidity Disciplined Coverage Financing Overhead Light Leverage Profile Strategy Model Target Target ~1.1x Invest In Projects Maintain Cost Maintain Credit ~4.5x – 4.75x Distributio
Slide 10: Runway of Diversified Growth
5 RUNWAY OF DIVERSIFIED GROWTH Grow Core Manage Expand Into Fuels Logistics And Organic Growth Adjacent Sectors Distribution Business • Consolidation opportunities in • Obtain incremental business • Diversify into adjacent sectors a highly fragmented sector from existing customers to drive further i
Slide 11: Liquidity and Capital Structure
LIQUIDITY AND CAPITAL STRUCTURE Pro Forma Maturity Profile(1) ($ in millions) ● Strong liquidity position: $1.5 billion of undrawn commitments under revolving credit facility ● January 2018 refinancing activity strengthened balance sheet • Extended maturity profile by four years and lowered cost of