Slide 1: Investor Presentation March 2019
INVESTOR PRESENTATION March 2019
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: Overview of Sunoco LP
OVERVIEW OF SUNOCO LP 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 co
Slide 4: Compelling Investment Opportunity: Key Investment Highlights
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 5: 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 through 2018 U.S. gasoline demand was • Fuel distribution and retail companies are highest on record at 9.3 mi
Slide 6: 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 7: 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 8: 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 9: Recent Acquisitions
RECENT ACQUISITIONS April August October December December • Wholesale fuels • Wholesale fuels • Wholesale fuels • Refined products • Wholesale fuels business and business located business located in terminalling business business primarily terminals located in Texas and Central and East located in
Slide 10: 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 11: Appendix
APPENDIX SUNOCO
Slide 12: Capital Structure and Liquidity
CAPITAL STRUCTURE AND LIQUIDITY ($ in millions) Maturity Rate 12/31/2018 $1.5B Revolving Credit Facility 7/27/2023 L + 200 bps $700 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 O
Slide 13: Q4 2018 Highlights: Continued Strength in Business and Financial Results
Q4 2018 HIGHLIGHTS: CONTINUED STRENGTH IN BUSINESS AND FINANCIAL RESULTS • Consolidated Q4 2018 Adjusted EBITDA of $180 million • Leverage of 4.16x compared to 5.58x a year ago and 4.27x in Q3 2018 • Q4 2018 Distributable Cash Flow, as adjusted, of $114 million • Coverage of 1.33x compared to 1.03x
Slide 14: Q4 2018 Reconciliation
Q4 2018 RECONCILIATION Reconciliation of Adjusted EBITDA to net income and Adjusted EBITDA to Distributable Cash Flow, as adjusted Segment Adjusted EBITDA ($ in millions) Fuel distribution and marketing $159 All other 21 Total 180 Depreciation, amortization and accretion (50) Interest expense, net (