Slide 1: Investor Presentation August 2018
INVESTOR PRESENTATION August 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: Company Snapshot
COMPANY SNAPSHOT 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 United
Slide 4: Recent Highlights
RECENT HIGHLIGHTS ● Consolidated Q2 2018 Adjusted EBITDA of $140 million • Included $7 million of transaction-related expenses • Q2 leverage of 4.5x compared to 6.0x in prior year ● Q2 2018 Distributable Cash Flow, as adjusted, of $106 million • Q2 coverage of 1.24x • Trailing twelve months coverage
Slide 5: Updated 2018 Guidance with Impact of Two Acquisitions
UPDATED 2018 GUIDANCE WITH IMPACT OF TWO ACQUISITIONS Other Operating Rent Cents Per Maintenance Growth G&A Expense Expense Expense Gallon Capital Capital Annual average ~$325 million ~$140 million ~$75 million ~$30 million ~$65 million 9 to 10 CPG • Unchanged • Unchanged • Unchanged • Converted to
Slide 6: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS 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 Fuel Income Historical Trailing Twelve Months Fuel Margins(1) ● Historically stable profit margins achieved 12.0¢ through: Average : 9.3¢ Minimum : 8.8¢ • Optimization of margin/volume mix 8.0¢ • Diversified channels of distribution • 7-Eleven: 15-year take or pa
Slide 9: Lean Capital and Expense Structure with a Disciplined Financial Strategy
4 LEAN CAPITAL AND EXPENSE STRUCTURE WITH A DISCIPLINED FINANCIAL STRATEGY Maintain Capital And Disciplined Distribution Balanced Financing Overhead Light Liquidity Leverage Profile Coverage Strategy Model Invest In Projects Maintain Credit Target Target ~1.1x Maintain Cost That Support Facility Ava
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: Recent Acquisitions - Superior Plus and Sandford Oil
5 RECENT ACQUISITIONS - SUPERIOR PLUS AND SANDFORD OIL Superior Plus Sandford Oil Acquisition Overview Wholesale fuels business that distributes ~200 Wholesale fuels business that distributes ~115 million gallons of fuel annually. Includes million gallons of fuel annually to exploration, terminals w
Slide 12: Capital Structure and Liquidity
CAPITAL STRUCTURE AND LIQUIDITY Actual ($ in millions) Maturity Rate 6/30/2018 Cash and Cash Equivalents $19 $1.5B Revoling Credit Facility 7/27/2023 L + 175 bps 320 Sale Leaseback Obligations 110 4.875% Senior Notes due 2023 1/15/2023 4.875% 1,000 5.500% Senior Notes due 2026 2/15/2026 5.500% 800 5
Slide 13: Appendix
Appendix SUNOCO 3
Slide 14: Q2 2018 Reconciliation
Q2 2018 RECONCILIATION Reconciliation of Adjusted EBITDA to net income (loss) and Adjusted EBITDA to Distributable Cash Flow, as adjusted ($ in millions) Segment Adjusted EBITDA Fuel distribution and marketing $132 All other 8 Total 140 Depreciation, amortization and accretion (41) Interest expense,