EX-99.1 2 dex991.htm SLIDE PRESENTATION Slide Presentation
1
Investor Meeting
Philadelphia, PA 
December 13, 2006
Exhibit 99.1


2
Safe Harbor Statement
Those statements made by representatives of Sunoco during the course of this presentation that are not historical facts are
forward-looking statements intended to be covered by the safe harbor provisions of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are based upon a number of assumptions
by Sunoco concerning future conditions, any or all of which may ultimately prove to be inaccurate.  Forward-looking statements
are inherently uncertain and necessarily involve risks that may affect Sunoco's business prospects and performance, causing
actual
results
to
differ
materially
from
those
discussed
during
this
presentation.
Such
risks
and
uncertainties
include,
by
way
of
example and not of limitation: general economic, financial and business conditions which could affect Sunoco’s financial
condition and results of operations; changes in competition and competitive practices, including the impact of foreign imports;
effects of weather conditions and natural disasters on the Company’s operating facilities and on product supply and demand;
changes in refined product and chemical margins; variation in petroleum-based commodity prices and availability of crude oil and
feedstock supply or transportation; effects of transportation disruptions; changes in the price differentials between light-sweet
and heavy-sour crude oils; changes in the marketplace which may affect supply and demand for Sunoco’s products; changes in
the level of operating expenses; changes in product specifications; availability and pricing of ethanol; changes in the expected
level of environmental capital, operating or remediation expenditures; age of, and changes in the reliability, efficiency and
capacity of, the Company’s operating facilities or those of third parties; effects of adverse events relating to the operation of the
Company’s facilities and to the transportation and storage of hazardous materials (including equipment malfunction, explosions,
fires, spills and the effects of severe weather conditions); risks related to labor relations and workplace safety; changes in
applicable statutes and government regulations or their interpretations, including those relating to the environment and global
warming;
changes
in
tax
laws
or
their
interpretations,
including
pension
funding
requirements;
ability
to
identify
acquisitions,
execute them under favorable terms and integrate them into the Company’s existing businesses; ability to enter into joint
ventures and other similar arrangements under favorable terms; delays and/or costs related to construction, improvements,
and/or repairs of facilities (including shortages of skilled labor, the issuance of applicable permits and inflation); non-performance
by or disputes with major customers, suppliers, dealers, distributors or other business partners; changes in financial markets
impacting pension expense and funding requirements; political and economic conditions in the markets in which the Company,
its suppliers and customers operate, including the impact of potential terrorist acts and international hostilities; military conflicts
between, or internal instability in, one or more oil producing countries, governmental actions and other disruptions in the ability to
obtain crude oil; and changes in the status of, or initiation of, new litigation, arbitration or other proceedings to which the
Company is a party or liability resulting from such litigation, arbitration or other proceedings, including natural resource damage
claims.
These
and
other
applicable
risks
and
uncertainties
have
been
described
more
fully
in
Sunoco's
Third
Quarter
2006
Form
10-Q
filed
with
the
Securities
and
Exchange
Commission
on
November
2,
2006.
Other
factors
not
discussed
herein
also
could
materially and adversely affect Sunoco’s business prospects and/or performance.  All forward-looking statements included in this
presentation are expressly qualified in their entirety by the foregoing cautionary statements.
Sunoco undertakes no obligation to update any forward-looking statements whether as a result of new information or future
events.


3
Agenda
Opening Comments
Jack Drosdick
Refining & Supply
Joel Maness
Other Businesses and Financial Overview
Tom Hofmann 


4
Sunoco Representatives
Jack Drosdick
Chairman and CEO
Tom Hofmann
SVP Finance and CFO
Joel Maness
EVP Refining & Supply
Mike Hennigan
SVP Supply, Trading, Sales & Transportation
Vince Kelley
SVP Refining
Bob Owens
SVP Retail Marketing
Bruce Fischer
SVP Chemicals
Debbie Fretz
CEO Sunoco Logistics Partners
Mike Dingus
SVP Sun Coke
Terry Delaney
VP Investor Relations and Planning 


5
Opening Comments
Jack Drosdick


6
Refining & Supply
Joel Maness


7
Refining & Supply Performance
Continued focus on extracting full value of existing
assets through Operational Excellence
Safe
Environmentally Sound
Reliable
Solomon Pacesetter
Optimization


8
Operational Excellence Focus
OSHA Recordable Injury Rate
0.00
0.30
0.60
0.90
1.20
1.50
2001
2002
2003
2004
2005
Oct06
YTD
Employees
Contractors
SAFE


9
Operational Excellence Focus
*   Represents '98-'00 Average
** Acquired Eagle Point January 2004
ENVIRONMENTALY
SOUND
Total Environmental Incidents
0
200
400
600
800
1000
1200
1400
1998-
2000*
2001
2002
2003
2004**
2005
Oct06
YTD
Air
Water
Spills


10
Operational Excellence Focus
RELIABLE
Utilization, % of Capacity
85%
90%
95%
100%
105%
2000
2001
2002
2003
2004
2005
Oct06
YTD
Crude Units
Conversion  Units
2006 reflects combined effect of
opportunistic maintenance and
scheduled/unscheduled work


11
Operational Excellence Focus
Solomon Indicators
80
83
86
89
92
95
2001
2002
2003
2004*
2005
Oct06
YTD
UEDC
EII
* Acquired Eagle Point January 2004
SOLOMON
PACESETTER


12
Operational Excellence Focus
Product Revenues vs. Benchmark
MM$ (pre-tax)
200
400
600
800
1000
1200
2004
2005
2006 Est.
Increased residual fuel cracking
Optimized value-added capability (e.g. RBOB, ULSD,
and jet/kero)
Captured attractive market spreads
OPTIMIZATION


13
Refining & Supply Market Environment
Market fundamentals still constructive over next 3-5
years
continued strength for transportation fuels
(particularly ULSD and jet/kero)
perhaps slightly lower for BTU-based products
(e.g. heating oil and fuel oil)
Environment for engineering, construction and
fabrication has extended schedules and significantly
increased costs for capital projects


14
Refining & Supply Action Plan
Continued focus on extracting full value of existing
assets through Operational Excellence
Sunoco capital spending program focuses on high-
value product upgrading rather than high-cost
expansions
particular focus on upgrading residual fuel
and      
continuing to improve diesel capability
Maintain spending discipline and keep projects in
manageable scope


15
Est.
Total
2005
2006
2007
2008
2006-2008
Clean Fuels
404
120
-
-
120
Section 114
/ Other Environmental
2
105
173
227
505
Base Infrastructure
/ Turnarounds
188
215
313
334
862
Sub-Total
594
440
486
561
1,487
Income Improvement
93
243
306
244
793
Total
687
683
792
805
2,280
Dec. 2005*
703
616
675
588
1,879
2005-2008 Capital Program, MM$
* Estimates presented at Dec. 2005 Investor Meeting


16
2005-2008 Capital Program, MM$
$793MM over 2006-2008 timeframe targeted for income
improvement projects…
Current
2006-2008
Expand Capacity / Flexibility
222
Improved Product Value
521
Energy Efficiency
50
Total
793


17
2007 Projects
Philadelphia Refinery –
FCC Expansion / Resid
Upgrading
-
$400MM cost estimate
-
15 MB/D expansion (70     85 MB/D)
-
Enable up to 25 MB/D upgrade of resid
to light products
-
Broaden feedstock choices


18
Lifting Cat Cooler 200 Tons
Phila. Refinery -
FCC Expansion / Resid
Processing


19
L-Structure
Phila. Refinery -
FCC Expansion / Resid
Processing


20
New Regenerator Head
Phila. Refinery -
FCC Expansion / Resid
Processing


21
Lampson Crane
Phila. Refinery -
FCC Expansion / Resid
Processing


22
Wet Gas Scrubber Tower
Phila. Refinery -
FCC Expansion / Resid
Processing


23
New Reactor Head
Phila. Refinery -
FCC Expansion / Resid
Processing


24
Phila. Refinery -
FCC Expansion / Resid
Processing
Key Project Metrics
* Assumes residual fuel to gasoline/distillate upgrade of  
$25/B
Capital Spending, MM$
Section 114
80
Base Infrastructure & T/A
50
Income Improvement
270
Total Spending
400
Financial Metrics *
Start-up Date
1H07
NIAT, MM$/yr
85
IRR % (all-in capital)
25
IRR % (growth capital only)
40


25
2007 Projects
Philadelphia Refinery –
FCC Expansion / Resid
Upgrading
-
$400MM cost estimate
-
15 MB/D expansion (70
85 MB/D)
-
Enable up to 25 MB/D upgrade of resid
to light products
-
Broaden feedstock choices
Toledo Refinery –
Crude Unit Debottleneck
-
$40MM cost estimate
-
Expand refining capacity by 20 MB/D (from 160 MB/D)
-
Incremental production primarily jet fuel


26
Toledo Crude Debottleneck
Start-up Date
1H07
NIAT, MM$/yr
45
IRR %
>100
Key Project Metrics:
*
Assumes average jet fuel margins of    $15/B over crude


27
Additional Projects Under Development
Toledo Hydrocracker
Conversion
-
converts and expands hydrocracker
by 5-10 MB/D
-
$10-20MM estimated cost range
-
targeted completion by end of 2008
-
NIAT = $15-30MM; IRR = >80%*
Philadelphia (Pt. Breeze) Hydrocracker
Conversion
-
restart idle hydrocracker
and convert to diesel
hydro-desulfurization…
enable 40-50 MB/D upgrade of 
heating oil to ULSD
-
$225-275MM estimated cost range
-
targeted completion by early 2009
-
NIAT = $55-65MM; IRR = 25-35%*
* Toledo assumes $15/B margin from crude to ULSD
Philadelphia assumes $8/B uplift from heating oil to ULSD
Still early in FEL process but
returns are very attractive


28
Refining & Supply Capital Summary
2007 income improvement projects on target and
will provide significant upgrading capability
Future spending on projects in development will
enable further upgrades to high-valued
transportation fuels
By 2008, crude run capacity expanding from 900 to
930 MB/D…
conversion unit capacity from 372 to
430 MB/D
2006-2008 projects targeted to contribute after-tax
profit of approximately $200MM (~$1.00/B pre-tax)


29
Other Businesses and Financial Overview
Tom Hofmann


30
Capital Program by Business Unit*, MM$
* Excludes Sunoco Logistics and Coke growth investments
2005
Est.
2006
2007
2008
Total
2006-2008
Refining & Supply
687
683
792
805
2,280
Retail Marketing
117
129
139
130
398
Chemicals
55
68
79
81
228
Logistics*
33
26
27
29
82
Coke*
8
17
20
16
53
Total
900
923
1,057
1,061
3,041
Dec 2005**
975
880
934
838
2,652
**
Estimates
presented
at
Dec.
2005
Investor
Meeting


31
Capital Program by Category, MM$
* Excludes Sunoco Logistics and Coke growth investments
200
5
Est.
2006
2007
2008
Total
2006
-2008
Base
Maintenance
/
Turnaround
309
431
549
562
1,542
Regulatory / Required
498
225
174
226
625
807
656
723
788
2,167
Income Improvement*
93
267
334
273
874
Total
900
923
1,057
1,061
3,041


Consistent Strategy
0
1
2
3
4
5
6
7
8
9
10
2000
2001
2002
2003
2004
2005
9M06
Capital
Expenditures
Cumulative Cash Spending
$3.8 B
32


Consistent Strategy
0
1
2
3
4
5
6
7
8
9
10
2000
2001
2002
2003
2004
2005
9M06
Growth
Capital &
Acquisitions
Capital
Expenditures
Cumulative Cash Spending
$2.1 B
$3.8 B
33


34
Consistent Strategy
0
1
2
3
4
5
6
7
8
9
10
2000
2001
2002
2003
2004
2005
9M06
Share
Buyback &
Dividends
Growth
Capital &
Acquisitions
Capital
Expenditures
Cumulative Cash Spending
$3.0 B
$2.1 B
$3.8 B


35
Dividend Increases
100% increase over past three years
Annualized Dividend
$1.00
$0.80
$0.60
$0.55
$0.50
3Q03
4Q03
3Q04
2Q05
2Q06


36
Share Reduction Program
Net Share Reduction = 32%
Remaining Authorization at 12/8/06 = $992MM
(year-end)
122
151
100
120
140
160
180
1999
2000
2001
2002
2003
2004
2005
12/8/06


37
122
151
1.62
0.89
1.06
100
120
140
160
180
1999
2000
2001
2002
2003
2004
2005
12/8/06
$0.50
$0.75
$1.00
$1.25
$1.50
$1.75
Meaningful Leverage to Refining
82% increase in per share leverage to
a $1.00/B change in refining margins
(year-end)


38
Strategy for Non-Refining Businesses
Relatively stable earnings and cash flow


Non-Refining Earnings*, MM$
233
194
172
200
196
123
213
$0
$50
$100
$150
$200
$250
$300
$350
$400
2000
2001
2002
2003
2004
2005
9M06
2000-05 Avg
*
Includes operating income (after-tax) from Retail Marketing, Chemicals, Logistics
and Coke business units.  For detail and reconciliation to Net Income, see slide A4.
39


40
Non-Refining Earnings*, MM$
233
194
172
200
196
123
213
$0
$50
$100
$150
$200
$250
$300
$350
$400
2000
2001
2002
2003
2004
2005
9M06
2000-05 Avg
EPS Impact of $200MM of Earnings:
2000 = $1.14/share
2006 
$1.50/share
*
Includes operating income (after–tax) from Retail Marketing, Chemicals, Logistics
and Coke business units.  For detail and reconciliation to Net Income, see slide A4.


Strategy for Non-Refining Businesses
Relatively stable earnings and cash flow
Natural extensions of Sunoco’s refining business
~60% of refinery gasoline production sold through
Retail Marketing
~50% of Chemicals raw materials requirements
from Sunoco’s refineries
Highly integrated with Sunoco Logistics
41


42
Strategy for Non-Refining Businesses
Relatively stable earnings and cash flow
Natural extensions of Sunoco’s refining business
~60% of refinery gasoline production sold through
Retail Marketing
~50% of Chemicals raw materials requirements
from Sunoco’s refineries
Highly integrated with Sunoco Logistics
Competitively positioned with discrete growth
opportunities


43
Retail Marketing
Upgraded asset portfolio
Selective, high-value acquisitions
Retail Portfolio Management (RPM) program
Maintained capital employed at ~$600MM
Retail gasoline margins largely dependent on direction
and magnitude of wholesale prices changes
Build on value of Sunoco brand (e.g. NASCAR)


44
Chemicals
Rising feedstock costs and weak demand
squeezed
margins in 2006
Ongoing efficiency efforts:
Optimize supply chain management
Improve raw material yield
Decrease energy costs
Evaluate strategic opportunities in changing
competitive landscape


45
Logistics
43% ownership interest (including 100% of general
partner) in Sunoco Logistics Partners L.P. (NYSE: SXL)
Focus on organic and acquisition growth opportunities
Significant growth in imbedded value to Sunoco
through LP unit ownership and GP position in “high
splits”


46
SXL Distribution Summary
Current distribution of $3.15 (approximate 6.5% yield)
2006 cash to Sunoco: approximately $50MM of LP/GP distributions
50 / 50
75 / 25
85 / 15
98 / 2
Distribution
(per unit)
LP/GP
Split (%)
$1.60
$1.80
$2.00
$2.20
$2.40
$2.60
$2.80
$3.00
$3.20


47
Sunoco Logistics Partners L.P.
461
546
840
1,032
1,000
1,389
0
200
400
600
800
1,000
1,200
1,400
2/8/02
12/31/02
12/31/03
12/31/04
12/31/05
12/8/06
MM$
SXL Market Capitalization
Value to Sunoco, Inc.
$245MM special distribution (Feb. 2002)
$182MM L.P. unit redemptions since Feb. 2002
$587MM value of Sunoco’s L.P. interest at 12/8/06
PLUS: General Partner interest
(IPO)
(current)


48
Coke Strategic Approach
Worldwide opportunities for new coke plants in either
wholly-owned or joint-venture structures
Long term take-or-pay contracts with steel producers that
provide steady income and a ratable return
Economic drivers for steel producers:
replacement of aging coke plants
coke supply for new blast furnaces
value of energy from heat recovery process
Expect to acquire additional 19% interest in Brazil
project…
expected start of production in 1Q07
Goal
annual earnings of $150MM by 2009


49
Strategy for Non-Refining Businesses
Relatively stable earnings and cash flow
Natural extensions of Sunoco’s refining business
~60% of refinery gasoline production sold through
Retail Marketing
~50% of Chemicals raw materials requirements
from Sunoco’s refineries
Highly integrated with Sunoco Logistics
Competitively positioned with discrete growth
opportunities
Goal
annual earnings of $400MM by 2009


50
Key Takeaways
Good leverage to constructive refining margins
Disciplined capital spending approach in Refining &
Supply focused on product upgrades
Non-refining businesses provide opportunities to
add significant shareholder value
Financial capacity to pursue opportunistic
investments and additional share repurchases


Appendix


A1
Sunoco Dimensions
Refining
1,470
Chemicals
1,030
Marketing
580
Coke
135
Logistics
310
Total = $3.6 billion
Corporate
115
340 MMB / yr. refining
production
Over 5.0 B gal. / yr. retail fuel
sales
Approximately 5.0 B lbs / yr.
chemical merchant sales
Logistics MLP (NYSE:SXL)
owned 43% by Sunoco
Coke for steel business . . .
significant growth
opportunities
123.1 MM shares outstanding
as of 9/30/06
Capital Employed, MM$
9/30/06


A2
Sunoco Geography
Refineries
Chemical Plants
Coke Plants
Terminal
Retail Marketing
Western Pipeline System
Eastern Pipeline System
Philadelphia
Marcus Hook
Tulsa
Vansant
Indiana
Harbor
Haverhill
Neal
Toledo
Neville
Island
Frankford
Epsilon
La Porte
Nederland
Bayport
Eagle Point


A3
Summary of Results
2001
2002
2003
2004
2005
9M06
Income (Loss) before Special Items, MM$ *
380
(25)
335
629
1,012
856
Income (Loss) before Special Items EPS, $/share *
2.32
(0.16)
2.16
4.20
7.36
6.53
ROCE, % **
14.8
1.6
13.2
21.7
32.4
25.2
Debt / Capital, % (net of cash)***
49
45
42
37
17
33
Share Repurchase, MM$
393
    
--
136
568
435
734
Shares O/S @ Period-end, MM
151.1
152.9
150.8
138.7
133.1
123.1
Share Price @ Period-end, $/share
18.67
16.59
25.58
40.86
78.38
62.19
*      Reconciliation of Income (Loss) before Special Items to Net Income (Loss) provided on Slide A4.
**    Calculated using Income (Loss) before Special Items.
***    Revolver covenant calculation.


Earnings Profile, MM$
2000
2001
2002
2003
2004
2005
9M06
Net Income (Loss) (MM$ after tax):
   Refining & Supply
317
290
(31)
261
541
   947
755
   Retail Marketing
  77
  87
20
  91
  68
     30
  87
   Chemicals
  16
    6
28
  53
  94
     94
  27
   Logistics
  46
  42
33
  26
  31
     22
  25
   Coke
  61
  61
42
  43
  40
     48
  33
   Corporate Expenses
  (23)
  (24)
(26)
  (40)
  (67)
     (84)
  (38)
   Net Financing Expenses & Other
  (56)
  (82)
(91)
  (99)
  (78)
     (45)
  (33)
    Income (Loss) Before Special Items
438
380
(25)
335
629
1,012
856
        Special Items
  (16)
  18
(22)
  (23)
  (24)
   (38)
    -
    Total Net Income (Loss)
422
398
(47)
312
605
   974
856
EPS (Diluted): 
Income (Loss) before Special Items
2.50
2.32
(0.16)
2.16
4.20
7.36
6.53
Special Items
(0.09)
0.11
(0.15)
(0.15)
(0.16)
(0.28)
     -
Net Income (Loss)
2.41
2.43
(0.31)
2.01
4.04
7.08
6.53
A4


A5
Share Repurchase
Shares
Repurchased
Total
Cost
Average
Price     
(MM)
(MM$)
($/share)
2000
10.4
   144
13.87
2001
21.4
   393
18.32
2002
--
     --
--
2003
  5.8
   136
23.36
2004
15.9
   568
35.68
2005 
  6.7
   435
64.57
2006 (through 12/8)
11.4
   818
71.54
   Total
71.6
2,494
34.77
Net Share Reduction since Jan 2000 = 32%
Shares O/S at 12/8/06 = 121.9MM
Remaining Authorization at 12/8/06 = $992MM


A6
Net Debt to Capital –
Revolver Covenant
33%
17%
37%
42%
45%
12/31/02
12/31/03
12/31/04
12/31/05
9/30/06


A7
Refining & Supply
2001
2002
2003
2004
2005
9M06
Net Income (Loss), MM$
290
(31)
261
541
947
755
Five refineries with crude oil refining capacity of
900MB/D and annual net production of approximately
340MMB
Largest U.S. East Coast refiner with 655MB/D
integrated refining complex in Philadelphia area
Continued opportunities to further upgrade assets


A8
Estimated Refining Capacity Changes
Conversion Unit Capacity, MB/D
430
372
307
2003
2006
2008 *
Crude Run Capacity, MB/D
930
900
730
2003
2006
2008 *
+ 10 MB/D in Northeast
+ 20 MB/D in Mid-Continent
* Targeted Capacity by year-end 2008
+ 25 MB/D in Northeast
+ 33 MB/D in Mid-Continent


A9
Refining Product Yield –
3Q06
Gasoline
49 %
Distillate
33 %
Resid
8 %
Total Production Available for Sale = 904MB/D
Petrochemicals
& Lubricants
6 %
Other
4 %


A10
Refining Product Yield –
3Q06
Northeast
Refining
MidContinent
Refining
Total Refining
& Supply
Gasoline Production, MB/D
318.7
123.9
442.6
   RFG (RBOB-blended gasoline)
50%
    0%
36%
   Conventional
50%
100%
64%
Distillate Production, MB/D
220.9
76.6
297.5
   On-Road Diesel Fuel
54% 
36%
49%
   Heating Oil / Off-Road Diesel
26%
30%
27%
   Jet Fuel
16%
34%
21%
   Kerosene / Other
  4%
  0%
  3%
Significant leverage to gasoline and
distillate “value-added”
margins


Nigeria, 45%
Chad, 8%
Other Africa,
13%
Canada, 9%
Venezuela, 3%
Former Soviet
Union, 2%
North Sea, 1%
USA, 19%
Sunoco Crude Supply
A11


Growing Sweet Crude Production
A12
East Coast Canada
White Rose
Nigeria
Capacity is already
close to 3 MMBD
Sudan
Dar Blend /
Sanctions
Caspian
(ex BTC)
Brazil
At record levels
of production
Angola
2 MMBD by 2008
Libya
Oasis group growth
Lifting of sanctions
Canadian
Syncrude


A13
World Crude Production by Quality, MMB/D
54
59
29
35
0
20
40
60
80
100
2005
2010
Sour Crude
Sweet Crude
Source: EIA / Sunoco estimates


A14
Availability of Sunoco Crudes
by Producing Area, MMB/D
0
2
4
6
8
10
12
14
16
2005
2010
North America
Latin America
Europe
Africa
FSU
10.7
15.0
Source: EIA / Sunoco estimates


A15
Retail Marketing
2001
2002
2003
2004
2005
9M06
Net Income, MM$
87
20
91
68
30
87
Approximately 4,700 retail gasoline outlets,
including about 750 convenience stores in 24
states, primarily East Coast and Midwest
Sales in excess of 5 billion gallons of gasoline
and diesel fuel and approximately $700MM of
merchandise per year
Official Fuel of NASCAR®
Portfolio optimization has generated $350MM in
cash, enabling $426MM in acquisition growth
since 2001 to expand and upgrade our asset
portfolio


A16
Retail Marketing Channels
32%
25%
43%
2,892
590
1,212
Co-ops
Dealers
Distributors
Co-ops
Dealers
Distributors
Gasoline Volume
2005
Retail Site Count
9/30/06
Total: 4.6 Bgal
Total: 4,694 sites


A17
Chemicals
2001
2002
2003
2004
2005
9M06
Net Income, MM$
6
28
53
94
94
27
Production at 9 U.S. facilities
Total annual sales of approximately 5 billion pounds
Major participant in polypropylene, phenol &
bisphenol-A markets; used in the manufacture of
many customer and industrial products
Ongoing efficiency efforts to optimize supply chain
management, improve raw material yield and
decrease energy costs


A18
Chemicals
Polypropylene
Phenol
Basell
3.5
Sunoco
2.1*
INEOS
2.8
Shell
1.3
ExxonMobil
2.7
Ineos
1.3
Sunoco
2.5
Mount Vernon
0.7
Total
2.4
  (GE/Citgo/JLM)
Formosa
1.6
Dow/Carbide
0.6
Dow
1.5
Georgia Gulf
0.5
Huntsman
1.1
Others
0.3
Others
2.6
Total
6.8
Total
20.7
Capital Employed: $1.0 Billion
(as of 09/30/06)
Polypropylene
Phenol
Effective Annual Industry Capacity, B lbs
Source: 2006 Chemical Data
* Includes 0.3 B lbs mothballed Haverhill line


A19
Logistics
2001
2002
2003
2004
2005
9M06
Net Income, MM$
42
33
26
31
22
25
43% ownership interest (including 100% of general partner
interest) in Sunoco Logistics Partners L.P. (NYSE: SXL)
Interest in almost 5,400 miles of crude oil and refined
product pipelines; 38 terminals including Nederland, TX
Most product-related assets located in Northeast and
Midwest U.S.
Since Sunoco Logistics IPO in February 2002:
SXL acquisition capital spending of $395MM
Annualized limited partnership distributions increased
from $1.80  to $3.15 / unit (+75%)


Logistics
Public
57%
Sunoco Logistics
Partners, L.P.
Eastern Pipeline
System
Western Pipeline
System
Terminal
Facilities
Sunoco, Inc.
43%*
* Including the 2% General Partner interest
A20


A21
Coke
2001
2002
2003
2004
2005
9M06
Net Income, MM$
61
42
43
40
48
33
Annual production of over 2.5 MM tons, 15% of total U.S.
supply of metallurgical-grade coke
Proven, proprietary, advanced technology
Minority joint-venture interest in 1.7 MM ton production
facility under construction in Vitória, Brazil
projected to be operational 1Q07
expect to exercise option to increase ownership from
1% to 20% for approximately $35MM
Further opportunity to grow through new plant
construction


A22
Sun Coke Oven


A23
2007 Cash Flow Model
Assumptions:
Based on assets currently owned
First Call consensus earnings estimate . . .
not guidance by Sunoco
Estimated cash tax rate of 30%
No change in working capital
Required debt payments are refinanced
Voluntary pension contribution of $100MM
No share repurchase / option exercises


A24
2007 Cash Flow Model, MM$
Income before Special Items
         850 *
Non-Cash / Deferred / Other
     585 **
Capital Expenditures - Base 
(723)
Dividend
(120)
    Free Cash Flow
592
Divestment Proceeds
   45
Income Improvement Capital
(334)
Pension Contribution
(100)
   Net Cash Flow
203
*  First Call consensus as of December 4, 2006
** See
reconciliation
to
GAAP
amounts
in
Appendix
A25
and
A26


A25
Reconciliation of Non-GAAP Cash Flow, MM$
* Excludes voluntary pension contribution of $100 MM.
2007
Model
Miscellaneous GAAP Cash Flow Items:
Non-cash reduction in minority interest in coke operations
(40)
Depreciation, depletion and amortization
455
Deferred income tax expense
145
Payments less than (in excess of) expe
nse
for retirement plans
*
55
Other operating items
50
Cash distributions to investors in cokemaking
and logistics operations
(80)
Non-Cash/Deferred/Other
(refer to slides A23
& A24
)
585


A26
Cash Flow Statement (GAAP Basis), MM$
Cash Flow from Operating Activities
2007
Model *
   Net Income
  850
      Adjustments to reconcile net income to net cash
      provided by operating activities:
         Non-cash reduction in minority interest in coke operations
    (40)
         Depreciation, depletion and amortization
    455
         Deferred income tax expense
     145
         Payments less than (in excess of) expense for retirement plans
      (45)
         Other
      50
Net cash provided by operating activities
  1,415
Cash Flows from Investing Activities
   Capital expenditures and acquisitions
(1,057)
   Proceeds from divestments
     45
Net cash used in investing activities
(1,012)
Cash Flows from Financing Activities
   Cash distributions to investors in cokemaking and logistics operations
     (80)
   Cash dividend payments
   (120)
Net cash used in financing activities
  
(200)
Net increase in cash and cash equivalents
  
203
* See 2007 cash flow model assumptions on slide A23.


A27
For More Information
Media releases and SEC filings are available
on our website at www.SunocoInc.com
Contact for more information:
Tom Harr
(215) 977-6764
Investor Relations