EX-99.2 3 w20065exv99w2.htm SLIDE PRESENTATION GIVEN APRIL 21, 2006 DURING INVESTOR TELECONFERENCE exv99w2
 

Exhibit 99.2
First Quarter 2006 Earnings Conference Call April 21, 2006 Sunoco Logistics Partners L.P.


 

Forward-Looking Statement You should review this slide presentation in conjunction with the first quarter 2006 earnings conference call for Sunoco Logistics Partners L.P., held on April 21 at 9:00 a.m. EDT. You may listen to the audio portion of the conference call on our website at www.sunocologistics.com or by dialing (USA toll- free) 1-877-297-3442. International callers should dial 1-706-643-1335. Please enter Conference ID #7070521. Audio replays of the conference call will be available for two weeks after the conference call beginning approximately two hours following the completion of the call. To access the replay, dial 1-800-642-1687. International callers should dial 1-706-645-9291. Please enter Conference ID #7070521. During the call, those statements we make that are not historical facts are forward-looking statements. Although we believe the assumptions underlying these statements are reasonable, investors are cautioned that such forward-looking statements involve risks that may affect our business prospects and performance, causing actual results to differ from those discussed during the conference call. Such risks and uncertainties include, among other things: our ability to successfully consummate announced acquisitions and integrate them into existing business operations; the ability of announced acquisitions to be cash-flow accretive; increased competition; changes in the demand both for crude oil that we buy and sell, as well as for crude oil and refined products that we store and distribute; the loss of a major customer; changes in our tariff rates; changes in throughput of third-party pipelines that connect to our pipelines and terminals; changes in operating conditions and costs; changes in the level 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 terrorist acts and international hostilities. These and other applicable risks and uncertainties are described more fully in our Form 10-K, filed with the Securities and Exchange Commission on March 1, 2006. We undertake no obligation to update publicly any forward-looking statements whether as a result of new information or future events. 2


 

Q1 2006 Milestones First quarter 2006 net income of $18.4 million or $0.66 per L.P. unit, as compared to $15.3 million or $0.59 per L.P. unit in the prior year's quarter Net income adversely impacted by $2.9 million of costs related to the Western headquarters' move Total increased distribution of $0.0375 ($0.15 annualized) per unit to $0.75 ($3.00 annualized), a 5.3 percent increase over the prior quarter's distribution Eleventh distribution increase over the past twelve quarters 20.0 percent increase over prior year's first quarter distribution Completed the acquisitions of two Texas crude oil pipeline systems for $109.5 million in March 2006 Announced on April 17, 2006 the acquisition of a 50% interest in a refined products terminal located in Syracuse, New York with terminal storage of approximately 550 thousand barrels 3


 

Q1 2006 Financial Highlights ($ in millions, unaudited) 4 Three Months Ended March 31, Three Months Ended March 31, Three Months Ended March 31, 2006 2005 Sales and other operating revenue Other income $ 1,261.0 2.4 $1,011.9 3.6 Total Revenues 1,263.4 1,015.5 Cost of products sold and operating expenses Depreciation and amortization Selling, general and administrative expenses Total costs and expenses 1,214.8 9.0 15.0 1,238.8 974.9 8.1 11.9 995.0 Operating income Net interest expense 24.7 6.2 20.5 5.2 Net Income $ 18.4 $ 15.3


 

Q1 2006 Financial Highlights 5 (amounts in millions, except unit and per unit amounts, unaudited) Three Months Ended March 31, Three Months Ended March 31, Three Months Ended March 31, 2006 2005 Calculation of Limited Partners' interest: Net Income Less: General Partner's interest $ 18.4 (1.3) $ 15.3 (0.9) Limited Partners' interest in Net Income $ 17.1 $ 14.4 Net Income per Limited Partner unit: Basic $ 0.66 $ 0.60 Diluted $ 0.66 $ 0.59 Weighted average Limited Partners' units outstanding (in thousands): Basic 25,819 24,091 Diluted 25,945 24,288


 

Eastern Pipeline System (amounts in millions, unless otherwise noted, unaudited) 6 Three Months Ended March 31, Three Months Ended March 31, Three Months Ended March 31, 2006 2005 Financial Highlights Sales and other operating revenue Other income $ 25.3 2.0 $ 23.5 3.1 Total Revenues 27.3 26.6 Operating expenses Depreciation and amortization Selling, general and administrative expenses 10.6 2.7 4.1 10.6 2.6 4.7 Operating income $ 9.9 $ 8.7 Operating Highlights(1) Total shipments (mm barrel miles per day) (2) Revenue per barrel mile (cents) 61.0 0.46 55.6 0.47 (1) Excludes amounts attributable to equity ownership interests in the corporate joint ventures. (2) Represents total average daily pipeline throughput multiplied by the number of miles of pipeline through which each barrel has been shipped.


 

Terminal Facilities (amounts in millions, unless otherwise noted, unaudited) 7 Three Months Ended March 31, Three Months Ended March 31, Three Months Ended March 31, 2006 2005 Financial Highlights Total Revenues $ 29.1 $ 27.9 Operating expenses Depreciation and amortization Selling, general and administrative expenses 12.6 3.7 3.4 11.0 4.1 3.3 Operating income $ 9.4 $ 9.5 Operating Highlights Terminal throughput (000's bpd) Refinery terminals(1) Nederland terminal Refined product terminals 693.7 489.7 383.2 689.8 491.9 396.0 (1) Consists of the Partnership's Fort Mifflin Terminal Complex, the Marcus Hook Tank Farm and the Eagle Point Dock.


 

Western Pipeline System 8 Excludes amounts attributable to equity ownership interest in the corporate joint venture. Includes results from the Partnerships' purchase of an undivided joint interest in the Mesa Pipe Line system, the Corsicana to Wichita Falls, Texas pipeline system, and the Millennium and Kilgore pipeline system from the acquisition dates. Represents total segment sales and other operating revenue minus cost of products sold and operating expenses and depreciation and amortization divided by crude oil pipeline throughput. (amounts in millions, unless otherwise noted, unaudited) Three Months Ended March 31, Three Months Ended March 31, Three Months Ended March 31, 2006 2005 Financial Highlights Sales and other operating revenue Other income $ 1,206.6 0.4 $ 960.4 0.6 Total Revenues 1,207.0 961.0 Cost of products sold and operating expenses 1,191.6 953.3 Depreciation and amortization 2.6 1.4 Selling, general and administrative expenses 7.4 4.0 Operating income $ 5.4 $ 2.3 Operating Highlights(1)(2) Crude oil pipeline throughput (000's bpd) 485.0 318.0 Crude oil purchases at wellhead (000's bpd) 181.4 194.8 Gross margin per barrel of pipeline throughput (cents)(3) 28.4 20.0


 

Q1 2006 Financial Highlights 9 (amounts in millions, unaudited) Three Months Ended March 31, Three Months Ended March 31, Three Months Ended March 31, 2006 2005 Capital Expenditure Data Maintenance capital expenditures $ 6.4 $ 4.9 Expansion capital expenditures 117.0 2.9 Total $ 123.4 $ 7.8 March 31, 2006 December 31, 2005 Balance Sheet Data (at period end) (Audited) Cash and cash equivalents $ 5.0 $ 21.6 Total debt 465.1 355.6 Total Partners' Capital 520.9 523.4