Slide 1: Investor Presentation May 2023
Investor Presentation May 2023
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: America's Largest Independent Fuel Distributor
America’s Largest Independent Fuel Distributor • ~8 billion gallons distributed Sunoco’s Fuel Distribution and across 40 states and territories Logistics Infrastructure Platform • ~7,400 dealer, distributor, and Wholesale / Retail Sites commission agent customers Fuel Terminals • ~1,600 commercial c
Slide 4: Key Financial Stats
Key Financial Stats Sunoco LP (NYSE: SUN) • Revenue (FY 2022): $26 billion • Credit Ratings: • Adjusted EBITDA (FY 2022): $919 million(1) – Moody’s: Ba3 (Stable) • Market Capitalization: ~$3.6 billion(2) – S&P: BB (Stable) • Enterprise Value: ~$7.1 billion(2) – Fitch: BB+ (Stable) • Distribution: •
Slide 5: A Compelling Investment Case
A Compelling Investment Case Strong Yield, Stability, and Growth Sustainable Distribution with an Attractive Yield • Greater than a 7% yield(1) • Strong coverage ratio underpins sustainability of distribution • Preserved distribution through significant market turbulence (e.g. COVID, Ukraine, Inflat
Slide 6: Revised 2023 Business Outlook and Guidance
Revised 2023 Business Outlook and Guidance Original Revised Key Metric Outlook / Outlook / Key Points Guidance Guidance ~7.8 • Fuel volume and margin are interrelated billion gallons Fuel Volume / Margin No Change • Industry breakeven margins continue to move higher • Proven track record of optimizi
Slide 7: Gross Profit Stability
Gross Profit Stability COVID Ukraine, $1,200 Inflation $1,000 12.8 Gross Profit ($MM) 11.9 11.2 $800 10.1 $600 8.2 7.7 7.1 7.5 $400 $200 $- 2019 2020 2021 2022 CPG Volume (BN Gal) Gross Profit ($MM) • Long-term take-or-pay supply agreement with 7-Eleven provides stable foundation of gross profit Fue
Slide 8: Cost Efficient Model Drives EBITDA Growth
Cost Efficient Model Drives EBITDA Growth $1,000 COVID Ukraine, Inflation $919 Since 2019, Total $750 $739 $754 Operating Expenses(2) have grown by < 1.5% $665 annually… $MM $500 $501 $521 $448 $438 …While Adjusted $250 EBITDA(1) has grown by ~10% annually $- 2019 2020 2021 2022 Adjusted EBITDA(1) T
Slide 9: Stability Amid Economic and Geopolitical Volatility
Stability Amid Economic and Geopolitical Volatility History of Delivering Strong and Stable Performance in Challenging Environments Ukraine, ($ MM) Inflation $900 $919 6 11% CPI-U (Y/Y % Change) COVID 5 9% RBOB ($ / Gal) 4 $754 7% $739 3 5% $665 2 3% 1 1% $500 0 -1% 01/01/19 2019 2020 2021 2022 (1)
Slide 10: Capital Allocation Strategy
Capital Allocation Strategy Maintain a Stable and Secure Distribution Secure • Coverage target of at least 1.4x Distribution • 10+ years without a distribution reduction (since inception in 2012) • Distribution increases will be evaluated and announced in the first quarter of each year, balancing le
Slide 11: Track Record of Successful Acquisitions
Track Record of Successful Acquisitions Pre-2019 Disciplined M&A – A Key Component of Growth $1,000 4.6x 4.2x 4.2x $919 3.8x $800 IPT INTERNATIONAL PETROLEUM TRADERS, INC. $739 $754 $665 $600 $650 $MM $542 $517 $400 $453 1.9x 1.6x 1.5x $200 1.3x $0 2019 2020 2021 2022 (1) (1) Adjusted EBITDA DCF, as
Slide 12: Industry Transition Will Occur Over Decades
Industry Transition Will Occur Over Decades Third Party Transition Scenarios 100% 100% • EVs achieve < 60% penetration by 2040 in BloombergNEF scenario… far less in EIA scenario 80% 80% • Fleet transition will span decades given low starting point, EV sales (only 3.2% in 2021(1)), and the high EV %
Slide 13: Total Shareholder Return
Strong Yield, Stability, and Growth SUN’s Strategy Has Delivered Superior Returns 275% COVID Ukraine, Inflation 225% Since April 2017, SUN has outperformed the S&P 500 by In April 2017, SUN over 140% ... Total Shareholder Return 175% announced a new strategic SUN +234%(1) direction focusing on fuel
Slide 14: Committed to Corporate Responsibility
Committed to Corporate Responsibility Demonstrating Environmental Behaving Responsibly in the Building and Maintaining a Awareness and Performance Workplace and the Community Culture of Responsibility Effective Environmental Protocols Responsible Work Environment Starts at the Top • Redundant leak d
Slide 15: Reconciliation of Adjusted EBITDA and DCF, As Adjusted to Net Income
Reconciliation of Adjusted EBITDA and DCF, As Adjusted to Net Income(1) Year Ended December 31, 2022 2021 2020 2019 (in millions) Net income and comprehensive income $ 475 $ 524 $ 212 $ 313 Depreciation, amortization and accretion 193 177 189 183 Interest expense, net 182 163 175 173 Non-cash unit-b