Sunoco Logistics Partners L.P. held an earnings conference call on May 7, 2014 to discuss their first quarter 2014 results. During the call, they provided highlights including an 8th consecutive quarter of distribution growth over 5% and updated 2014 organic capital guidance of approximately $1.7 billion. They also discussed major organic projects including expansions of several crude oil pipelines and natural gas liquids pipelines and terminals.
1. Sunoco Logistics Partners L.P.
First Quarter 2014
Earnings Conference CallEarnings Conference Call
May 7, 2014
2. Forward-Looking Statements
You should review this slide presentation in conjunction with the first quarter 2014 earningsYou should review this slide presentation in conjunction with the first quarter 2014 earnings
conference call for Sunoco Logistics Partners L.P., held on May 7, 2014 at 8:30 a.m. ET (7:30 a.m. CT).
You may listen to the audio portion of the conference call on our website at www.sunocologistics.com
or by dialing (USA toll-free) 1-800-369-2171. International callers should dial 1-517-308-9315. Please
enter Conference ID “Sunoco Logistics.” Audio replays of the conference call will be available for two
k ft th f ll b i i i t l h f ll i th l ti f th llweeks after the conference call beginning approximately one hour following the completion of the call.
To access the replay, dial 1-800-839-1156. International callers should dial 1-402-998-0972.
During the call, those statements we make that are not historical facts are forward-looking
statements. These forward-looking statements are not guarantees of future performance. Although we
believe the assumptions underlying these statements are reasonable, investors are cautioned thatp y g
such forward-looking statements involve risks and uncertainties that may affect our business and
cause actual results to differ materially from those discussed during the conference call or in the slide
presentation. Such risks and uncertainties include economic, business, competitive and/or regulatory
factors affecting our business, as well as uncertainties related to the outcomes of any pending or
future litigation. Sunoco Logistics Partners L.P. has included in its Annual Report on Form 10-K forg g p
the year ended December 31, 2013, and in its subsequent SEC filings, cautionary language identifying
important risk factors (though not necessarily all such factors) that could cause future outcomes to
differ materially from those set forth in the forward-looking statements. For more information about
these risk factors, see our SEC filings, available on our website at www.sunocologistics.com. We
expressly disclaim any obligation to update or alter these forward-looking statements, whether as ap y y g p g ,
result of new information, future events or otherwise.
This presentation includes certain non-GAAP financial measures intended to supplement, not
substitute for, comparable GAAP measures. Reconciliations of non-GAAP financial measures to GAAP
financial measures are provided in the slides at the end of the presentation. You should consider
carefully the comparable GAAP measures and the reconciliations to those measures provided in thiscarefully the comparable GAAP measures and the reconciliations to those measures provided in this
presentation.
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3. 1Q Highlights
Di t ib ti Distributions:
8th consecutive quarter over quarter increase of at least 5%
• 36th consecutive increase overall
• Guidance ~5% quarter over quarter increases in 2014
1Q increase: $2.65/unit to $2.78/unit (annualized)
21% increase over 1Q13 distribution of $2.29/unit (annualized)
Capital:
2013 i it l f $965 illi2013 organic capital of $965 million
2014 updated organic capital guidance of ~ $1.7 billion
2014 maintenance capital guidance of ~ $70 million2014 maintenance capital guidance of $70 million
Financing:
Successfully completed $1.0 billion of debt financing in Aprily p g p
Established a $250 million at-the-market (ATM) equity program
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4. 8 Consecutive Quarters of at Least 5% Distribution Growth
Guidance ~5% quarter over quarter increases in 2014
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5. Major Organic Projects
11 Successful Open Seasons:
3 West Texas Crude expansion projects (crude oil)
Permian Express 1 (crude oil)Permian Express 1 (crude oil)
Permian Express 2 (crude oil)
Eaglebine Express (crude oil)
Granite Wash Extension (crude oil)
Allegheny Access (refined products)
Mariner West (natural gas liquids)Mariner West (natural gas liquids)
Mariner East 1 (natural gas liquids)
Mariner South (natural gas liquids)
Actively developing:
Mariner East 2 (natural gas liquids)*
* Open Season Launched 5
8. Crude Projects
Granite Wash Extension
Granite Wash Crude to multiple markets
P i E 1
West Texas Crude
Expansions Permian Express 1
Permian Crude to Nederland
Expansions
Permian Crude to multiple
markets
Permian Express 2
Permian Crude to multiple markets
Eaglebine Express
Eaglebine / Woodbine Crude to Nederland
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9. Mariner Franchise
Mariner East 1
Ethane / Propane from Houston to Marcus Hook
Mariner West
Ethane from Houston to Sarnia
Mariner South Mariner East 2Mariner South
Propane / Butane from Mont Belvieu to Nederland
Mariner East 2
NGLs from Shales to Marcus Hook
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10. Mariner West & East – Comprehensive Marcellus Solution
Mariner West
Ethane from Houston to Sarnia
Mariner East 1
Ethane / Propane from Houston to Marcus HookEthane from Houston to Sarnia Ethane / Propane from Houston to Marcus Hook
Mariner East 2
NGLs from Shales to Marcus Hook
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11. Marcus Hook – Natural Gas Liquids
Acquired from Sunoco, Inc. – $60MM
Continued commitment to growth in natural
gas liquids
Anchors Mariner East
Located near the Marcellus and Utica Located near the Marcellus and Utica
shales, the site offers many features:
Five underground caverns for storing
NGLs
D b h il k Deep water berths, rail access, truck
capability and advantageous pipeline
infrastructure
A northeast NGL hub, capable of
handling a broad array of NGLs and
located <300 miles from the Marcellus,
is very attractive to producers as well
as local and overseas consumers.
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14. SXL Q1 2014 Financial Highlights
(amounts in millions) Three Months Ended
March 31,
2014 2013
Sales and other operating revenue 4,477$ 3,512$
Cost of products sold 4,210 3,224
Operating expenses 34 26
Selling general and administrative expenses 37 33Selling, general and administrative expenses 37 33
Depreciation and amortization expense 69 64
Total costs and expenses 4,350 3,347
Operating income 127 165
I t t t d d bt t (26) (24)Interest cost and debt expense, net (26) (24)
Capitalized interest 10 5
Other income 4 2
Income before provision for income taxes 115 148
Provision for income taxes (5) (6)
Net Income 110 142
Net income attributable to noncontrolling interests (3) (2)
Net Income attributable to Sunoco
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Logistics Partners L.P. 107$ 140$
15. SXL Q1 2014 Financial Highlights
(amounts in millions, except per unit amounts)
Three Months Ended
March 31,
2014 20132014 2013
Calculation of Limited Partners' interest:
Net Income attributable to Sunoco Logistics Partners L.P. 107$ 140$
Less: General Partner's interest (38) (27)
Li it d P t ' i t t i N t I 69$ 113$Limited Partners' interest in Net Income 69$ 113$
Net Income per Limited Partner unit:p
Basic 0.66$ 1.09$
Diluted 0.66$ 1.09$
Weighted Average Limited Partners' units outstanding:
Basic 104.0 103.8
Diluted 104 5 104 1Diluted 104.5 104.1
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16. SXL Q1 2014 Financial Highlights
( i illi )(amounts in millions)
Three Months Ended
March 31,
2014 2013
Capital Expenditures:p p
Expansion 465$ 136$
Maintenance 18 4
Investment in joint venture interests 42 -Investment in joint venture interests 42
Total 525$ 140$
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17. SXL Q1 2014 Financial Highlights
( i illi )(amounts in millions)
March 31, December 31,
2014 2013
Balance Sheet Data:
Cash and cash equivalents 140$ 39$Cash and cash equivalents 140$ 39$
Advances to affiliated companies 14$ 239$
Revolving credit facilities (1)
985$ 235$Revolving credit facilities ( )
985$ 235$
Senior Notes 1,975 2,150
Unamortized fair value adjustments (2)
116 120
Unamortized bond discount (3) (2)
Total debt 3 073$ 2 503$Total debt 3,073$ 2,503$
Equity:
Sunoco Logistics Partners L.P. Equity 6,207$ 6,204$
N t lli i t t 122 121Noncontrolling interests 122 121
Total Equity 6,329$ 6,325$
(1) In April 2014, the Partnership repaid the outstanding balance under its $1.50 billion credit facility using proceeds from the April 2014 senior
notes offering.
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(2) In connection with the application of push-down accounting, the Partnership’s senior notes were adjusted to fair value upon the closing of the
acquisition of the Partnership’s general partner by Energy Transfer Partners, L.P. on October 5, 2012.
18. SXL Non-GAAP Financial Measures
( i illi )(amounts in millions)
Three Months Ended
March 31,
2014 2013
142$110$Net Income
Interest expense, net 16 19
Depreciation and amortization expense 69 64
Provision for income taxes 5 6
Non-cash compensation expense 5 4
Unrealized gains on commodity risk management activities (1) (3)
142$110$Net Income
Unrealized gains on commodity risk management activities (1) (3)
Proportionate share of unconsolidated affiliates' interest, depreciation
and provision for income taxes 4 4
Adjusted EBITDA
(1)
208 236
Interest expense, net (16) (19)p ( ) ( )
Provision for income taxes (5) (6)
Amortization of fair value adjustments on long-term debt (4) (6)
Distributions versus Adjusted EBITDA of unconsolidated affiliates (6) (3)
Maintenance capital expenditures (18) (4)
Distributable Cash Flow attributable to noncontrolling interests (4) (3)
(1) Management of the Partnership believes Adjusted EBITDA and distributable cash flow information enhances an investor's understanding of a
business’s ability to generate cash for payment of distributions and other purposes Adjusted EBITDA and distributable cash flow do not
Distributable Cash Flow attributable to noncontrolling interests (4) (3)
Contributions attributable to acquisition from affiliate 3 -
Distributable Cash Flow
(1)
158$ 195$
business s ability to generate cash for payment of distributions and other purposes. Adjusted EBITDA and distributable cash flow do not
represent and should not be considered alternatives to net income or cash flows from operating activities as determined under United States
generally accepted accounting principles (GAAP) and may not be comparable to other similarly titled measures of other businesses.
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19. SXL Crude Oil Pipelines
(financial amounts in millions)
Three Months Ended
March 31,
2014 2013
Financial Highlights
Sales and other operating revenue 131$ 95$
Adjusted EBITDA 93$ 61$
Operating Highlights
Pipeline throughput (thousands of bpd) 2,041 1,582
Pipeline revenue per barrel (cents) 71.6 67.0
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(1) Amounts exclude earnings attributable to noncontrolling interests.
20. SXL Crude Oil Acquisition and Marketing
(financial amounts in millions) Three Months Ended
March 31,
2014 2013
Financial Highlights
Sales and other operating revenue 4,094$ 3,259$p g
Adjusted EBITDA 12$ 112$
Operating Highlights
Crude oil purchases (thousands of bpd) 840 750p ( p )
Gross margin per barrel purchased (cents) (1)
21.1 172.0
Average crude oil price (per barrel) $98.61 $94.34
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(1) Represents total segment sales and other operating revenue less cost of products sold and operating expenses, divided by total crude oil
purchases.
21. SXL Terminal Facilities
(financial amounts in millions) Three Months Ended
March 31,
2014 2013
Financial Highlights
Sales and other operating revenue 287$ 183$Sales and other operating revenue 287$ 183$
Adjusted EBITDA 86$ 54$
Operating Highlights
Terminal throughput (thousands of bpd):Terminal throughput (thousands of bpd):
Refined products terminals 413 414
Nederland terminal 1,322 850
Refinery terminals 226 325
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Refinery terminals 226 325
22. SXL Refined Products Pipelines
(financial amounts in millions)
2014 2013
March 31,
Three Months Ended
2014 2013
Financial Highlights
S l d th ti 41$ 30$Sales and other operating revenue 41$ 30$
Adjusted EBITDA 17$ 9$
Operating Highlights (1)
Pipeline throughput (thousands of bpd) 521 522
Pipeline revenue per barrel (cents) 88.3 62.9
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(1) Amounts exclude earnings attributable to noncontrolling interests.
(2) Excludes amounts attributable to equity interests which are not consolidated.