Sunoco Lp · NYSE:SUN
Sunoco Lp — Investor Presentation (November 2014)
28 slides from Sunoco Lp's investor presentation, November 2014
Slide 1: Sunoco LP Investor Update November 2014
SUNOCO LP INVESTOR UPDATE November 2014
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Some of the statements in this presentation constitute “forward-looking statements” about Sunoco LP and Energy Transfer Partners, L.P. and its affiliates that involve risks, uncertainties and assumptions, including without limitation, our discussion and analysis of our fin
Slide 3: Non-GAAP Measures
NON-GAAP MEASURES 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 final slide to this presentation. We define EBITDA as net income before net interest exp
Slide 4: Table of Contents
TABLE OF CONTENTS Business Updates Business Overview Financial Overview Appendix 4
Slide 5: Business Updates
BUSINESS UPDATES 5
Slide 6: The New Sunoco LP
THE NEW SUNOCO LP Ticker Symbol NYSE: SUN Distributor of motor fuel to convenience stores, independent dealers, commercial customers and distributors in 9 states, Business including more than 645 Stripes® and Sac-N-Pac™ convenience stores. Operator of more than 100 convenience stores. SUN is a publi
Slide 7: We Are a Key Player in the Motor Fuels Value Chain
WE ARE A KEY PLAYER IN THE MOTOR FUELS VALUE CHAIN 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
Slide 8: Recent Developments
RECENT DEVELOPMENTS MACS Drop Down Acquisition Aloha Acquisition On October 1, 2014, SUN closed the acquisition of Mid- SUN has also agreed to acquire Honolulu-based Aloha Atlantic Convenience Stores, LLC from ETP in a transaction Petroleum, Ltd. for approximately $240 million in cash, valued at
Slide 9: Evolution of SUSS / SUSP and Sunoco
EVOLUTION OF SUSS / SUSP AND SUNOCO 2014: 2012: SUN acquires MACS from Susser Petroleum Partners IPO; ETP; Purchases Aloha; formed from SUSS wholesale Formal name change to 1988-2001: business Sunoco LP (NYSE: SUN) SUSS acquired over 326 retail stores and nearly 234 dealer sites 2014: Today: 2006: S
Slide 10: Proposed Dropdowns of SUSS and Sunoco Create a Stronger Platform
PROPOSED DROPDOWNS OF SUSS AND SUNOCO ARE EXPECTED TO CREATE A STRONGER AND MORE DIVERSIFIED PLATFORM Growth Opportunities from SUSS & Sunoco Expected to Deliver a Reliable and Growing Cash Flow Stream • One of the largest retail footprints in the fast • Established East Coast and Southeast presence
Slide 11: Geographically Diverse Platform for Future Growth
GEOGRAPHICALLY DIVERSE PLATFORM FOR FUTURE GROWTH SUN + MACS / Tiger + Aloha Potential Future Growth 2013 PF Motor Fuel 2,262 5,357 7,619 Sales (MM Gallons): LTM 6/30/14 PF Motor Fuel Sales (MM Gallons): 2,400 5,389 7,789 (1) (2) (3) Total Sites (9/30/14): 945 5,650 6,595 TX, NM, OK, LA, VA, TN, 26
Slide 12: Multiple Avenues for Organic Growth
MULTIPLE AVENUES FOR ORGANIC GROWTH New to Industry (“NTI”) Raze & Rebuilds Targeted in high growth markets with favorable Increases returns on existing sites with attractive demographics volume and customer traffic NTI growth allows for more open and modern store designs to increase customer
Slide 13: Opportunities for Prudent Growth via Acquisitions
OPPORTUNITIES FOR PRUDENT GROWTH VIA ACQUISITIONS Acquisition Criteria Potential Dropdown Growth SUN will continue to look to opportunistically The dropdown of MACS / Tigermarket acquire strong performing retail and wholesale locations represent the first step in ETP’s businesses / assets in att
Slide 14: Fragmented Convenience Store Industry Offers Acquisition Opportunities
FRAGMENTED CONVENIENCE STORE INDUSTRY OFFERS ATTRACTIVE ACQUISITION OPPORTUNITIES Industry is highly fragmented with almost 60% of the industry comprising single-store Ownership of ~ 155,000 Convenience owners Stores Selling Fuel (1) We continually evaluate acquisition opportunities 501+ Stores
Slide 15: Leadership Position in a Stable and Thriving C-Store Industry
THE PROPOSED COMBINED PLATFORM WILL HAVE A LEADERSHIP POSITION IN A STABLE & THRIVING C-STORE INDUSTRY Resilient industry growth ‒ 2013 marks the 11th consecutive year of industry-wide merchandise sales growth Increasing demand for convenience and improved foodservice offerings continues to driv
Slide 16: Dropdown of Non-Qualifying Income to Propco
DROPDOWN OF NON-QUALIFYING INCOME TO PROPCO(1) ALLOWS SUN TO MAINTAIN >90% 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 prop
Slide 17: Business Overview
BUSINESS OVERVIEW 17
Slide 18: Simplified SUN Org Structure
SIMPLIFIED SUN ORG STRUCTURE Publicly Traded MLP Energy Transfer Equity, L.P. (1) (NYSE: ETE) General Partner/Parent Company Energy Transfer Partners, L.P. (NYSE: ETP) Public Unitholders 55.8% LP 44.2% LP Interest (2) Sunoco GP LLC Sunoco Qualifying / Susser Holdings Corp Interest (2) Non Qualifying
Slide 19: Sunoco LP Overview – Pro Forma for MACS and Aloha
SUNOCO LP OVERVIEW – PRO FORMA FOR MACS DROP DOWN AND ALOHA ACQUISITION Stability Significant amount of long-term, fee-based contracts Historical stability of fuel margins De minimis direct commodity risk Strong and resilient industry fundamentals Large-cap investment grade sponsor in ETP
Slide 20: Combined Platform with Dominant National Footprint, Over 6,500 Sites
POTENTIAL COMBINED PLATFORM WILL HAVE A DOMINANT NATIONAL FOOTPRINT WITH OVER 6,500 SITES Site Count as of September 30, 2014 SUN Pro Forma Sites Potential Future Sites (SUSP + MACS / Total (Sunoco + SUSS) Tiger+ Aloha) Company Operated 153 1,084 1,237 Dealer & Distributor 792 4,566 5,358 Operated T
Slide 21: Financial Overview
FINANCIAL OVERVIEW 21
Slide 22: Strong Financial and Operating Performance
STRONG FINANCIAL AND OPERATING PERFORMANCE SUN Fuel Volumes + Sunoco, Inc. SUN Adjusted EBITDA (1) Drop Down Potential(1) 180 Six Months 8,000 7,784 7,033 160 147 Ended June 7,000 6,322 6,407 30, 2014 140 (million gallons) 6,000 ($millions) 120 5,389 5,000 100 84 5,462 4,000 5,009 4,957 80 52 3,000
Slide 23: SUN Has Consistently Grown Distributions Since IPO
SUN HAS CONSISTENTLY GROWN DISTRIBUTIONS SINCE IPO DCF and Distributions / Unit $0.70 14.3% DPU CAGR $0.64 $0.64 $0.60 $0.58 $0.58 $0.54 $0.50 $0.48 $0.40 $0.30 $0.50 $0.52 $0.47 $0.49 $0.44 $0.45 $0.20 $0.10 $- Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Distribution / Unit DCF / Unit Long-Term
Slide 24: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS Stability Visible Growth Significant amount of long-term, Meaningful growth achievable fee-based contracts through significant inventory of drops from sponsor Minimal direct commodity risk Organic growth through same- Historical stability of fuel margins store sal
Slide 25: Appendix
APPENDIX 25
Slide 26: Real Estate Summary as of September 30, 2014
REAL ESTATE SUMMARY AS OF SEPTEMBER 30, 2014 Properties Controlled by SUN (1) Operating Fee Leased Total Retail 68 85 153 Wholesale 167 89 256 Total Operating Sites 235 174 409 (1) Reflects current operating locations for SUN including sites associated with the MACs drop down and Aloha Petroleum acq
Slide 27: SUN Reconciliation of Net Income to EBITDA, Adjusted EBITDA and DCF
SUN RECONCILIATION OF NET INCOME TO EBITDA, ADJUSTED EBITDA AND DISTRIBUTABLE CASH FLOW Historical Pro Forma Six Months Fiscal Year Ended Six Months Ended Year Ended Ended December 31, June 30, December 31, June 30, (1) (1) 2011 2012 2013 2013 2014 2013 2014 (in thousands) Net income $ 10,598 $ 17,5
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