EX-99.1 2 dex991.htm PRESENTATION Presentation
Sunoco Logistics Partners L.P.
UBS 2008 MLP Conference
September 2008
Exhibit 99.1

Forward-Looking Statements
Statements
made
in
this
presentation
that
are
not
historical
facts
are
forward-looking
statements.
We
believe
the
assumptions
underlying
these
statements
are
reasonable,
but
caution
you
that
such
forward-looking
statements
involve
risks
that
may
affect
our
prospects
and
performance,
causing
actual
results
to
differ
from
those
discussed
here.
Such
risks
and
uncertainties
include:
our
ability
to
consummate
announced
acquisitions
and
integrate
them
into
existing
operations;
our
ability
to
complete
internal
growth
projects;
the
ability
of
such
acquisitions
and
internal
growth
projects
to
be
cash-flow
accretive;
increased
competition;
changes
in
demand
for
crude
oil
we
buy
and
sell,
as
well
as
for
crude
oil
and
refined
products
we
store
and
distribute;
the
loss
of
a
major
customer;
changes
in
our
tariff
rates;
changes
in
throughput
of
third-party
pipelines
connected
to
our
pipelines
and
terminals;
changes
in
levels
of
environmental
remediation
spending;
potential
equipment
malfunction;
potential
labor
relations
problems;
the
legislative
or
regulatory
environment;
plant
construction/repair
delays;
and
political
and
economic
conditions,
including
the
impact
of
potential
terrorists
acts
and
international
hostilities.
These
and
other
applicable
risks
and
uncertainties
are
described
more
fully
in
our
2008
Form
10-Q
(filed
with
the
Securities
and
Exchange
Commission
on
August
6,
2008).
We
undertake
no
obligation
to
update
publicly
any
forward-
looking
statements
in
this
presentation,
whether
as
a
result
of
new
information
or
future
events.
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
appendix
at
the
end
of
this
presentation.
2

Sunoco Logistics –
Asset Overview
3
-1,700 miles of refined product pipelines
-3,800 miles of crude trunk pipelines
-36 refined product terminals
-23.4 million barrels of crude oil storage capacity (including 16.5  million
barrels at Nederland)
-Ownership interest  in 6 product and crude oil pipelines

Key Business Attributes
Stable fee based revenue –
limited
commodity risk
–
12.4% LP Distribution CAGR since 2002 IPO
–
LP distribution increased in 20 of last 21 quarters
Geographically
diverse
assets
–
expanded
asset
footprint
–
Serve key U.S. refining and production centers in U.S. Northeast,
Midwest, and Gulf Coast
–
Provide transportation and storage services to meet growing
requirements from foreign crude into the Texas Gulf region
–
Successful completion and integration of 12 acquisitions since 2002
–
MagTex
will be the 13
th
acquisition
Key strategic relationship with Sunoco
4

Key Business Attributes
Strong business fundamentals
Refined product and crude oil pipelines
Growth driven by:
–
Demand driven throughput increases
–
Tariff increases (PPI influenced)
–
Increased terminal services
Crude Oil Marine Terminal
Growth driven by:
–
Shortage of storage infrastructure creates supply demand imbalance
–
Rising
tank
construction
costs
make
existing
storage
assets
more
valuable
–
Continuation of capacity expansion plan
Long term contracts
Flexible capital structure to support growth
Strong, stable investment grade credit rating
Debt to EBITDA at 2.2x’s among the lowest in the midstream MLP
sector
5

Financial Performance

Financial & Operational Measures
7
Total EBITDA $239 MM
2002 EBITDA
Eastern Pipeline
Terminals
Western Pipeline
$15 MM
$ 42 MM
$40 MM
Total EBITDA $97 MM
LTM 6/30/08 EBITDA
Eastern Pipeline
Terminals
Western
Pipeline
$100 MM
$64 MM
$75 MM

EBITDA & Free Cash Flow*
50
70
90
110
130
150
170
190
210
230
250
2003
2004
2005
2006
2007
LTM
6/30/08
            EBITDA
            Free Cash Flow
8
CAGR 16%
CAGR 22%
*    For a reconciliation of EBITDA & free cash flow to net income see slide 39.

Distribution
(per unit)
Distribution Summary
Current distribution of $3.74 (7.7% yield as of 8/29/08)
Latest 12 month distribution growth 11.6%
Distribution CAGR Q1 2002 –
Q1 2008 –
12.4%
50 / 50
75 / 25
85 / 15
98 / 2
LP/GP
Split (%)
9
$1.60
$1.80
$2.00
$2.20
$2.40
$2.60
$2.80
$3.00
$3.20
$3.40
$3.60
$3.80
Over the last 4 years distribution growth has been top quartile among our competitive group.
108% Distribution Growth

Financial Summary
10
Growth Capex
& Acquisitions
Investment since IPO:  $1B
Growth Capex/Acquisitions ($MM)
0
50
100
150
200
250
300
350
2002
2003
2004
2005
2006
2007
2008P
Organic
Acquisitions
SXL Asset Base ($MM)
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
2,600
2002
2003
2004
2005
2006
2007
Total Asset Growth:  129%

Financial Summary
11
FCF per LP Unit Growth:   129%
FCF per LP Unit Growth since 2004:   110%
FCF per Limited Partner Unit ($)
2.25
2.75
3.25
3.75
4.25
4.75
5.25
5.75
2002
2003
2004
2005
2006
2007
LTM
6/30/08

Other Financial Metrics
Debt-EBITDA ratio at 6/30/08
2.2
Debt/Total Capital at 6/30/08
45%
Unutilized revolver capacity at 6/30/08
$410 MM
Distribution coverage -twelve months
ended 6/30/08
1.47x
Stable investment grade rating
BBB/Baa2 (S&P, Moody’s)
Year ended 12/31/07 Revenues
$7,406 MM
12

Growth Opportunities

Growth Opportunities
Increased Asset Utilization
-
Increased terminalling
services
-
Expanded capability of lease acquisition marketing group
-
Demand driven throughput growth
-
Acquisition integration
14

Growth Opportunities
Increased Asset Utilization
Margin Improvement
-
FERC tariffs, market based tariffs
-
Crude oil storage infrastructure shortage
-
Additional terminalling
services
15

Growth Opportunities
16
Increased Asset Utilization
Margin Improvement
Asset Base Expansion
-
MagTex
refined products pipeline & terminals acquisition and
integration
-
Nederland build out
-
Motiva Pipeline project
-
Other organic growth

Growth Opportunities
17
Estimated Annual Free Cash Flow Growth After Financing
2008 –
2010
$20 MM -
$40 MM
Increased Asset Utilization
Margin Improvement
Asset Base Expansion

MagTex
Pipeline System
18
•472 mile refined product pipeline
system in Texas
•6 refined product terminals
•Connected to ExxonMobil’s
Beaumont Refinery and Motiva’s
Port Arthur Refinery
•Connected to 3   party terminals
in Houston
MagTex
Acquisition from ExxonMobil
rd

MagTex
Strategic Rationale
Establishes refined product platform for SXL in the Western Region
Connected to expanding refineries on the Gulf Coast
Supplies growing Houston market
Synergies with existing operations
Provides opportunities for organic growth projects
19

MagTex
Transaction
Purchase price of $200 MM
-
Support of $5.5 MM from the GP (Sunoco) over 4 years to provide
accretion to Limited Partners
Acquisition will be debt financed
Continuing to work through conditions to closing, with close expected
in Q4 2008
20
Immediately Accretive Plus Growth Opportunities

Western Pipeline System
21
Post

Western Crude Oil System
22

Sunoco Logistics -
Nederland Terminal
23
•Canadian Crude Oil
•Offshore domestic pipeline
•Strategic Petroleum Reserve
•Foreign Crude Oil
•Close to refining centers
-Houston
-Lake Charles
-Port Arthur
Crude Oil Tank Capacity:  16.5 million barrels

Nederland Terminal –
Key Drivers of Crude Oil Tank Demand
Increased
foreign
imports
into
the
Gulf
–
Waterborne
and
Canadian
Refinery Expansions
-
Increasing regulations governing inspections, repair, modification
and construction have led to greater outsourcing, more tanks
taken out of service
Segregation of increasing number of crude grades
Tankage
provides a logistics buffer during current period of tight
worldwide supply and demand
24

Nederland Terminal Build Out
Shell Capacity
MM BBLS
January 2008
14.7
2008 Construction
1.8
Motiva Project –
2009 -
2010
2.0
Additional Buildout Capability
12.0
Total Potential Capacity
30.5
25
Expect
to
Increase
Capacity
by
2
-
3
MM
Barrels
per
year
2008 -
2010

Nederland Terminal –
Motiva Port Arthur Project
Provide crude oil logistics for Motiva Port Arthur refinery expansion
Construct
1.8
million
barrels
of
tankage
at
Nederland
Terminal
and
8.1 mile pipeline to refinery
-
Estimated cost:
$90 MM
-
Completion Date:
2009-
2010
Increases Nederland’s extensive connectivity to Gulf Coast and inland
refineries
-
Additional capacity available on pipeline
Immediately accretive upon completion
26

NEDERLAND
TERMINAL
MOTIVA
MILLER TANK FARM
NEDERLAND
T0 MOTIVA
30”
PL
Nederland Project
•
Nederland Terminal
-
(3) 660 MBBL Tanks
-
Pump Station @ 8,000 HP
-
Piping & Manifold Modifications
-
Delivery Meters
•
Pipeline
-
8.1 Miles of 30”
-
Delivery Meters
Motiva Project Map
27

Summary

Sunoco Logistics Forward Guidance
Estimated Annual
2008 -
2010
Capital Expenditures
Maintenance
$26 MM
Organic Growth
$100-$150 MM
Increased Free Cash Flow
(after financing)
$20-$40 MM
2008 Earnings per LP unit are expected to be comparable to first
half level of $2.17
Targeting 2009 distribution growth at 10% or higher
29

Sunoco Logistics Partners
Summary
Conservative balance sheet, stable & diversified cash flows
–
Debt/EBITDA at 2.5x as of June 30, 2008 among the lowest in
Midstream MLP group
Geographically diverse, flexible assets
–
opportunities for increased utilization / capacity expansion
–
well positioned for  accretive organic growth projects and
acquisitions
Key
relationship
with
Sunoco,
Inc.
-
largest
investor
and
largest
customer
Diversified customer base and expanded business platform from recent
acquisitions
Experienced, growth oriented management team
Strong, consistent financial performance
30

Appendix

Sunoco Logistics Partners
Sunoco Logistics
Sunoco Logistics
Partners
Partners
Western Pipeline
Western Pipeline
System
System
Terminal
Terminal
Facilities
Facilities
Eastern Pipeline
Eastern Pipeline
System
System
32%*
32%*
27%*
27%*
41%*
41%*
Sunoco, Inc.
Sunoco, Inc.
Public
Public
43.3%
43.3%
56.7%
56.7%
*
*
EBITDA % for the 12 months ended June 30, 2008
EBITDA % for the 12 months ended June 30, 2008
32
32

SXL
NEDERLAND
TERMINAL
Midland and           
Big Springs
SXL 
10"
From Patoka IL.
Canadian Crude
To Longview                   
Mid-Valley PL to Ohio,  
Red River PL to Cushing,
McMurry PL to Tyler
To Wortham / Corsicana                    
1.Sunoco PL to Ringold and Wichita Falls
Basin to Cushing                                               
To Longview                                               
2.Mid-Valley PL to Ohio Red river PL to
Cushing, McMurry PL to Tyler
Citgo 20”
24”
Exxon Mobil            
Beaumont
5 Ship Docks   
3BargeDocks 
DOE 42”
Shell 22”
SPR        
Big Hill
ExxonMobil              
Baytown
Shell 20”
OTI            
Houston
OTI 24”
Shell      
Deer Park
Lyondell             
Houston
Shell PL           
East Houston
Shell 16”
BP26”
BP Amoco           
Texas City
NEDERLAND TERMINAL DISTRIBUTION SYSTEM
OCS
XOM 20”
Waterborne Transport
SXL 30”
Motiva     
Port Arthur
SPR West Hackberry
33
(Under Construction)

Completed Transaction History
$610mm in acquisitions since IPO
Columbus, Ohio product terminal from Certified Oil for $8mm
Texas crude oil pipeline from ExxonMobil for $100mm
37% interest in Mesa crude oil pipeline from Sunoco/Chevron
for $7mm
Texas crude oil pipelines from Black Hills for $41mm
Texas crude oil pipelines from Alon for $68mm
55.3% interest in Mid-Valley Pipeline Company from Sunoco for $65 MM
50% undivided interest in Syracuse, New York refined products terminal from
Exxon Mobil for $13mm
Purchase
Agreement
to
acquire
Texas
refined
product
pipelines
and
terminals
from
Exxon
Mobil
for
$200mm
–
anticipated
closing
July
2008
Nov. 2004
Aug. 2005
Dec. 2005
March 2006
August 2006
June 2007
April 2008
Additional 1/3 interest in Harbor Pipeline from El Paso for $7mm, increasing
interest to 2/3
rds
June 2004
2 product terminals from ConocoPhillips for $12mm:  Baltimore/Manassas
April 2004
Logistics assets of Eagle Point refinery from Sunoco, Inc. for $20.0mm
March 2004
Additional 3.1% interest in West Shore for $4mm: now own 12.3%
Sept. 2003
JV interest from Sunoco/ Unocal in West Texas Gulf for $11mm
Nov. 2002
JV interests in 3 product pipelines from Unocal, for $54.0mm
-
Wolverine (31.5%), West Shore (9.2%), and Yellowstone (14.0%)
Nov. 2002
34

Financial Summary
35
Total Unit Price Growth:   108%
Unit Price CAGR:   12%
Quarterly SXL Earnings per LP Unit ($)
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
2002
2003
2004
2005
2006
2007
2008
Total EPU Growth:   210%
EPU CAGR:   17%
SXL Unit Price
0
10
20
30
40
50
60
70
2002
2003
2004
2005
2006
2007
2008

Est.
2002
2003
2004
2005
2006
2007
2008
Organic           12
6
18
43
87        82
120
Acquisitions    65
4
47
106
174        13
200
Total               77
10       65
149      261        95
320
Sunoco Logistics –
Growth Capital
($mm)
36

Capitalization
($ millions)
As of 6/30/08
Debt
7.25% Notes (matures 2012)
250      fixed
6.125% Senior Notes (matures 2016)
175
fixed
$400 MM Revolver (matures 2012)
90      floating
$100 MM Revolver (matures 2009)
-
floating
Cash
(2)
Net Debt
513
Debt / Total Capital
45%
Debt / EBITDA
2.2x
EBITDA / Interest
7.3x
Rating:
BBB / Baa2 (S&P, Moody’s)
Stable, Investment Grade
37

Historical Financial Results
($millions)
6/30/08
EBITDA
2003
2004
2005
2006
2007
LTM
East
48              45
43
54
58
64
Terminals
41              48
51
54
68
75
West
18
16
23
47
67
100
Total EBITDA
107            109
117
155
193
239
Interest Expense
(20)           (20)          (22)
(28)
(35)
(33)
Maintenance Capex
(26)           (24)          (23)
(24)
(24)
(23)
Unusual Events
-
-
10
-
-
-
Free Cash Flow
61             65
82
103
134
183
GP Interest
(1)
(3)
(4)
(14)
(22)
(26)
Net to LPs
60              62
78
89
112
157
Yearly Distribution
($/unit)                               $1.99         $2.32       $2.56
$3.03      $3.33
$3.45
Coverage Ratio     
1.33x         1.14x
1.22x
1.05x      1.15x
1.47x
38

EBITDA Reconciliation
Management of the Partnership believes EBITDA and distributable cash flow information enhances an investor's
understanding of a business’
ability to generate cash for payment of distributions and other
purposes.  In addition, EBITDA is
also used as a measure in the Partnership's $400 million and $100 million revolving credit facilities in determining its
compliance with certain covenants.  However, there may be contractual, legal, economic or other reasons which may prevent
the Partnership from satisfying principal and interest obligations with respect to indebtedness and may require the
Partnership to allocate funds for other purposes.  EBITDA and distributable cash flow do not represent and should not be
considered alternatives to net income, operating income or cash flows from operating activities as determined under United
States generally accepted accounting principles and may not be comparable to other similarly titled measures of other
businesses.
(1)  Earnings before interest, taxes, depreciation and amortization
39
(1)
2003
2004
2005
2006
2007
LTM
6/30/08
Net Income
60
57
61
90
121
162
Interest Expense
20
20
22
28
35
33
Depreciation and amortization
27
32
34
37
37
44
EBITDA
107
109
117
155
193
239
Interest Expense
(20)
(20)
(22)
(28)
(35)
(33)
Maintenance Capex
(26)
(24)
(23)
(24)
(24)
(25)
Unusual Events
-
-
10
-
-
-
Free Cash Flow
61
65
82
103
134
181