Slide 1: Investor Update
INVESTOR UPDATE September 2015
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Some of the statements in this presentation constitute “forward-looking statements” about Sunoco LP (“SUN”), Energy Transfer Equity (“ETE”), Energy Transfer Partners, L.P. (“ETP”) and their respective affiliates that involve risks, uncertainties and assumptions, including,
Slide 3: Non-GAAP Measures and Explanatory Note Regarding Presentation Scope and Format
NON-GAAP MEASURES AND EXPLANATORY NOTE REGARDING PRESENTATION SCOPE AND FORMAT This presentation 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 appendix to this presen
Slide 4: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS Leading Position in SUN owns and represents some of the most iconic brands in the motor fuels industry an Attractive Industry wide non-fuel retail sales are strong and growing Industry Channel and geographic diversity has increased the stability of cash flows in the r
Slide 5: The SUN Transformation Is Well Underway
THE SUN TRANSFORMATION IS WELL UNDERWAY August 29, 2014: ETP acquired Susser Holdings (“Susser”), announced plan to drop Susser and Sunoco Inc. businesses into SUN September 25, 2014: SUN closed a new 5-year, $1.25 billion Credit Facility. April 10, 2015: SUN amended its Credit Facility and expanded
Slide 6: Significant Drop Down and Acquisition Activity Driving Strategic Growth at SUN
SIGNIFICANT DROP DOWN AND ACQUISITION ACTIVITY DRIVING STRATEGIC GROWTH AT SUN… SUN (1) MACS / Aloha 31.58% of Susser Holdings SUN Today Tigermarket Petroleum, Ltd. Sunoco LLC Corp Date August 29, October 1, December 16, April 1, 2015 July 31, 2015 2014 2014 2014 Description Wholesale fuel Retail Le
Slide 7: With a Diverse Platform for Future Growth
… WITH A DIVERSE PLATFORM FOR FUTURE GROWTH Additional Potential Current SUN Future Growth Drop #3: Susser 68.42% of SUN at 6/30/15 Sunoco Inc. SUN Pro Forma Holdings (1) Sunoco LLC FYE 12/31/14 Adjusted $307 (2) $161 $210 (3) N/A N/A EBITDA ($MM): LTM 6/30/15 Motor 2,957 (2) 1,234 2,515 1,064 7,770
Slide 8: Significant Additional Scale Opportunity for SUN
SIGNIFICANT ADDITIONAL SCALE OPPORTUNITY FOR SUN Site Count as of June 30, 2015 SUN Sites (SUN + MACS / Assets Held at Company Operated Susser ETP (1) Total Tiger + Aloha + 31.58% Sunoco LLC) Dealer / Distributor Operated Coop 155 679 440 1,274 6 SUN Terminals Third Party 2,248 85 3,155 5,488 Total
Slide 9: SUN Will Look to Deliver Unitholder Value While Increasing Scale
SUN WILL LOOK TO DELIVER UNITHOLDER VALUE WHILE INCREASING SCALE SUN will continue to use multiple avenues to execute its growth strategy: Drop Downs Organic Growth Third Party Acquisitions Growth expected to be achieved in a manner that is both accretive to unitholders as well as supportive of
Slide 10: Organic Growth Opportunities
ORGANIC GROWTH OPPORTUNITIES New to Industry (“NTI”) Raze & Rebuilds Purchase and leaseback approximately 40 new Increases returns on existing sites with attractive volume convenience stores that Stripes plans to build in 2015 and customer traffic Targeted in high growth markets with favorable
Slide 11: SUN Will Target Prudent Growth via Acquisitions
SUN WILL TARGET PRUDENT GROWTH VIA ACQUISITIONS SUN will continue to look to opportunistically acquire strong performing retail and wholesale businesses / assets in attractive markets SUN evaluates potential acquisitions through the following criteria: Financial hurdles Geography Market ma
Slide 12: Drop Down #3: Susser Holdings Corporation
DROP DOWN #3: SUSSER HOLDINGS CORPORATION Closed July 31, 2015 Overview Geographic Footprint at 6/30/15 Susser engages in the operation of convenience stores, wholesale consignment sales and transportation in Texas, Oklahoma and New Mexico 679 retail sites, mostly Stripes branded Among the lea
Slide 13: Stripes: Strong Track Record of Same Store Sales Growth
STRIPES: STRONG TRACK RECORD OF SAME STORE SALES GROWTH Overview Food Service Sales (1) 26 straight years of same store sales growth $300 $250 Above industry average inside-sales business $200 Laredo Taco Company helps drive same $150 $285 store sales growth through customer $243 $100 $166 $18
Slide 14: Generating Growth Through Integration and Execution of Strategy
GENERATING GROWTH THROUGH INTEGRATION AND EXECUTION OF STRATEGY Key Drivers Average Fuel Gallons Sold per Susser Retail Store (000s) Leveraging powerful fuel brands 1,800 1,705 1,700 1,669 Significant scale in procurement 1,578 1,600 1,491 New large-scale store format enables growth 1,500 1,42
Slide 15: Track Record of Consistent Growth
TRACK RECORD OF CONSISTENT GROWTH Merchandise Same Store Sales Growth (1) 8.0% 7.4% 6.7% 5.6% 5.8% 5.8% 5.8% 6.1% 5.0% 4.2% 4.0% 4.4% 3.9% 3.4% 3.1% 2.2% 2.4% 1.9% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2011 2012 2013 2014 2015 Annual Growth 26.0% 29.0% 12.8% 22.0% Average Retail Gall
Slide 16: SUN Has Consistently Grown Distributions Since 2012 IPO
SUN HAS CONSISTENTLY GROWN DISTRIBUTIONS SINCE 2012 IPO Proven History of Strong Distribution Growth at 9 Consecutive Quarters and Counting $ / Unit $0.80 $0.70 23% DPU CAGR $0.69 $0.65 $0.60 $0.60 $0.55 $0.50 $0.52 $0.50 $0.49 2.0 $0.45 $0.47 $0.44 1.5 $0.40 1.0 0.5 0.0 $0.30 3Q 2014 4Q 2014 1Q 201
Slide 17: SUN LP Capital Structure & Liquidity
SUN LP CAPITAL STRUCTURE & LIQUIDITY ($ in Millions) Historical 6/30/15 As Adjusted 6/30/15 (1) Cash $ 63 $ 63 Debt $1.5 Billion Revolver 725 886 6.375% Senior Notes Due 2023 800 800 5.5% Senior Notes Due 2020 - 600 Other Debt 183 183 Total Debt 1,708 2,470 Market Capitalization(2) 1,339 2,779 Total
Slide 18: SUN Pro Forma Wholesale and Retail Margins Are Resilient Through Commodity Cycles
SUN PRO FORMA WHOLESALE AND RETAIL MARGINS ARE RESILIENT THROUGH COMMODITY CYCLES Cents/gal $/bbl 30 150 25 130 20 110 15 90 10 70 5 50 0 30 2006 2007 2008 2009 2010 2011 2012 2013 2014 WTI ($/bbl) Susser (cents/gal) Pro Forma SUN Retail Margins (cents/gal) Wholesale Margin (cents/gal) Fuel Margins
Slide 19: Diversified Lines of Business Generate a Portfolio of Stable Cash Flows
DIVERSIFIED LINES OF BUSINESS GENERATE A PORTFOLIO OF STABLE CASH FLOWS… Gross Profit Contribution By Channel (LTM 6/30/15) Current SUN (1) SUN Pro Forma (2) 13% 16% 7% 2% 24% 13% 13% 18% 42% 9% 27% 58% Total = $582 million Total = $1,314 million 59% Retail Fuel Wholesale Fuel Merch & Other C-Store
Slide 20: Diversified Sales Channels Provide a Strong Business Profile
…WHILE DIVERSIFIED SALES CHANNELS PROVIDE A STRONG BUSINESS PROFILE SUN Pro Forma Gallons Sold by Channel (1) Wholesale “Company Owned (2) / Dealer Operated” - Earn fuel margin and rental income from long-term fuel supply and lease arrangement. Dealer operates under Sunoco or other major fuel bran
Slide 21: Organic Growth, Acquisitions and Drop Downs Have Meaningfully Increased Cash Flow, Scale and Diversity
ORGANIC GROWTH, ACQUISITIONS AND DROP DOWNS HAVE MEANINGFULLY INCREASED CASH FLOW, SCALE AND DIVERSITY Adjusted EBITDA ($MM) Gallons Sold (MM) SUN MACS & Aloha 31.58% Sunoco LLC Susser SUN MACS & Aloha 31.58% Sunoco LLC Susser 468 4,158 1,157 161 3,001 97 1,666 1,666 1,335 656 656 656 210 122 679 67
Slide 22: SUN Is Well Positioned for Long-Term Growth in Unitholder Value
SUN IS WELL POSITIONED FOR LONG-TERM GROWTH IN UNITHOLDER VALUE Diversified Business and Geography Mitigates Risk and Volatility Strong Track Leading Record of Market Stable Cash Position with Flows Iconic Brands Robust Drop Down Pipeline Supportive with Potential and Dedicated to Augment General Sc
Slide 23: Investment Summary
INVESTMENT SUMMARY Stability Visible Growth • Significant amount of long-term fuel • Meaningful growth achievable through supply agreements significant inventory of drops from ETP • Historical stability of fuel margins • Ability to pursue combined retail / • Fuel margins are not commodity price whol
Slide 24: Appendix
APPENDIX 24
Slide 25: Summary Org Structure
SUMMARY ORG STRUCTURE Publicly Traded MLP Energy Transfer Equity, L.P. (NYSE: ETE) Public 100% GP Interest, IDRs Unitholders Energy Transfer Partners, L.P. 34.4% LP (NYSE: ETP) Interest (1) 50.8% LP Interest (1) ETP Retail Marketing Segment Sunoco LP (2) (NYSE: SUN) Susser Petroleum Operating Compan
Slide 26: Energy Transfer Is Heavily Vested in the Long Term Success of SUN
ENERGY TRANSFER IS HEAVILY VESTED IN THE LONG TERM SUCCESS OF SUN Energy Transfer’s Interests are Clearly Aligned with SUN’s Provides Experienced Flexibility Team that has Around Capital Managed Structure and Acquisitions, Future Drop Down ETE owns SUN’s Integrations, GP + IDRs. Transitions Consider
Slide 27: Susser Acquisition Provides Platform for Significant Growth
SUSSER ACQUISITION PROVIDES PLATFORM FOR SIGNIFICANT GROWTH Organic and Acquired Growth Stripes Rolling Store Count • Robust organic growth through new-to- • 3-year cumulative annualized growth rate of industry store build program Stripes locations projected to be 8.3% by year- end 2015 • Successful
Slide 28: Drop Down #2: 31.58% of Sunoco LLC - Wholesale Distribution
DROP DOWN #2: 31.58% of SUNOCO LLC- WHOLESALE DISTRIBUTION Closed on April 1, 2015 Distributed motor fuels to more than 26 states in the East Geographic Footprint (1) Coast and Southeast regions of the U.S. from Maine to Florida and Florida to Louisiana. Sunoco LLC distributes to: Sunoco, Inc. f
Slide 29: SUN LP Poised to Hold a Leading Position in a Stable & Thriving C-Store Industry
SUN LP POISED TO HOLD A LEADING POSITION IN A STABLE & THRIVING C-STORE INDUSTRY Resilient industry growth ‒ 2014 marked the 12th consecutive year of industry-wide merchandise sales growth Increasing demand for convenience and improved foodservice offerings continues to drive merchandise sales g
Slide 30: Fragmented Convenience Store Industry Offers Attractive Acquisition Opportunities
FRAGMENTED CONVENIENCE STORE INDUSTRY OFFERS ATTRACTIVE ACQUISITION OPPORTUNITIES Industry is highly fragmented with over Ownership of ~ 128,000 Convenience 47,000 stores comprising chain operators Stores Selling Fuel (1) with greater than ten locations in their portfolio SUN continually evaluat
Slide 31: Fuel Distribution Produces Significant Qualifying Income
FUEL DISTRIBUTION PRODUCES SIGNIFICANT 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 property rental income from Rental inc
Slide 32: SUN Reconciliation of Adjusted EBITDA to Net Income
SUN RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME ($ in Thousands) Predecessor Successor Pro Forma Pro Forma Combined Actual Combined Fiscal Year Fiscal Year Fiscal Year Results for the Results for the Ended Ended Ended Twelve Months Twelve Months Fiscal Year December 31, December 31, December 31,
Slide 33: SUN Reconciliation of Adjusted EBITDA to Net Income
SUN RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME ($ in Thousands) Fiscal Year Ended 1Q Ended March 31, December 31, 2014 2013 2014 Net Income (loss) $57,786 $10,132 $17,918 Depreciation, amortization and accretion 26,955 3,326 17,566 Interest expense, net 14,329 1,502 8,197 Income tax expense 2,3
Slide 34: Sunoco LLC Reconciliation of Adjusted EBITDA to Net Income
SUNOCO LLC RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME ($ in Thousands) Fiscal Year Ended December 31, 2013 2014 Net income (loss) $134,413 $36,732 Depreciation, amortization and accretion 48,091 50,547 Income tax expense 65,774 44,862 EBITDA 248,278 132,141 Non-cash unit based compensation 777
Slide 35: Susser Reconciliation of Net Income to Adjusted EBITDA
SUSSER RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA ($ in Thousands) Historical (1) Pro Forma Adjustments Pro Forma Memo - EBITDA and DCF reconciliation Susser SUN (2) Adjustments (3) Susser Fiscal Year Ended Fiscal Year Ended Fiscal Year Ended December 31, December 31, December 31, 2014 2014 201