Attached files
| file | filename |
|---|---|
| 8-K - SUNOCO LOGISTICS PARTNERS LP--FORM 8-K - Energy Transfer Operating, L.P. | d8k.htm |
| EX-99.1 - PRESS RELEASE - Energy Transfer Operating, L.P. | dex991.htm |
 First Quarter 2011
Earnings Conference Call
April 26, 2011
Sunoco Logistics Partners L.P.
Exhibit 99.2 |
 Forward-Looking Statements
2
You should review this slide presentation in conjunction with the first
quarter 2011 earnings conference call for Sunoco Logistics Partners
L.P., held on April 26 at 5:00 p.m. ET. You may listen to the
audio portion of the conference call on our website at
www.sunocologistics.com or by dialing (USA toll-free)
888-889-4955. International callers should dial
312-470-0130. Please enter Conference ID “Sunoco
Logistics.” 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 866-400-
9639. International callers should dial
203-369-0544.
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 that 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. Such risks
and uncertainties include economic, business, competitive and/or
regulatory factors affecting our business, as well as uncertainties related to the
outcomes of pending or future litigation. Sunoco Logistics
Partners L.P. has included in its Annual Report on Form 10-K
for the year ended December 31, 2010, and in its subsequent Form 8-K filings, cautionary
language identifying important 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 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 a 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 this presentation. |
 Q1 2011 Assessment
Distributable cash flow of $63 million, a $9 million
increase from 1Q10
Increased distribution for 24
th
consecutive quarter
Benefits of 2010 acquisitions:
•
Mid-Valley & West Texas Gulf
•
Butane Blending
Challenging refined products pipeline quarter
3 |
 Crude Expansion –
Organic Growth
West Texas Gulf Pipeline Expansion:
•
Minimum 100 MBPD increase
•
Existing crude pipeline
•
Multiple market destinations possible
•
Fee-based income
•
3Q12 target start-up
Nederland Terminal Expansion:
•
2 new tanks on-line in 1Q11
•
2 tanks under construction
4Q11/1Q12 target start-up
Capacity will be 22MMB
•
Fee-based income
4 |
 Refined Products/NGL: Growth & Optimization
Marcellus Shale Ethane Solutions:
•
Mariner West—3Q12 target
Sarnia, Canada market
•
Mariner East—mid-2013 target
Gulf Coast & International markets
•
SXL utilizing existing pipeline
•
No commodity risk / fee-based model
Big Sandy Terminal:
•
Convert crude pipeline to products
•
Product distribution to Longview
•
Enhances MagTex system
•
Fee-based income
•
Mid-2011 target start-up
5 |
 Crude Oil Contango
Backwardation
Contango
6
WTINYMEX Month 2 vs. Month 1
-1
0
1
2
3
4
5
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2010
2011 |
 Q1 2011 Financial Highlights
($ in millions, unaudited)
7
Three Months Ended
March 31,
2011
2010
Sales and other operating revenue
2,258
$
1,680
$
Other income
2
8
Total revenues
2,260
1,688
Cost of products sold and operating expenses
2,145
1,594
Depreciation and amortization expense
18
15
Selling, general and administrative expenses
22
21
Total costs and expenses
2,185
1,630
Operating income
75
58
Interest cost and debt expense
21
16
Capitalized interest
(1)
(1)
Income before provision for income taxes
55
43
Provision for income taxes
5
-
Net Income
50
$
43
$
Net income attributable to noncontrolling
interests
2
-
Net Income attributable to Sunoco Logistics
Partners L.P.
48
$
43
$
|
  Q1 2011 Financial Highlights
8
(amounts in millions, except unit and per unit amounts, unaudited)
Three Months Ended
March 31,
2011
2010
Calculation of Limited Partners' interest:
Net Income attributable to Sunoco Logistics
Partners L.P.
48
$
43
$
Less: General Partner's interest
(12)
(10)
Limited Partners' interest in Net Income
36
$
33
$
Net Income per Limited Partner unit:
Basic
1.09
$
1.06
$
Diluted
1.08
$
1.06
$
Weighted Average Limited Partners' units
outstanding (in millions):
Basic
33.1
31.0
Diluted
33.3
31.2
|
 Refined Products Pipeline System
($ in millions, unaudited)
9
Three Months Ended
March 31,
2011
2010
Financial Highlights
Sales and other operating revenue
27
$
30
$
Other income
2
2
Total revenues
29
32
Operating expenses
13
13
Depreciation and amortization expense
4
4
Selling, general and administrative
expenses 7
7
Operating income
5
$
8
$
|
 Terminal Facilities
($ in millions, unaudited)
10
Three Months Ended
March 31,
2011
2010
Financial Highlights
Sales and other operating revenue
87
$
55
$
Cost of products sold and operating expenses
43
20
Depreciation and amortization expense
8
6
Selling, general and administrative
expenses 7
7
Operating income
29
$
22
$
|
 Crude Oil Pipeline System
11
($ in millions, unaudited)
Three Months Ended
March 31,
2011
2010
Financial Highlights
Sales and other operating revenue
2,144
$
1,595
$
Other income
-
6
Total revenues
2,144
1,601
Cost of products sold and operating expenses
2,089
1,561
Depreciation and amortization expense
6
5
Selling, general and administrative
expenses 8
7
Operating income
41
$
28
$
|
 Q1 2011 Operating Highlights
12
Three Months Ended
March 31,
2011
2010
Operating highlights (unaudited)
Refined Products Pipeline System:
Refined products pipeline throughput (thousands of bpd)
(1)
410
456
Revenue per barrel of pipeline throughput
(cents) 71.8
70.9
Terminal Facilities:
Refined products terminals throughput (thousands of bpd)
478
459
Nederland terminal throughput (thousands of
bpd) 696
726
Refinery terminals throughput (thousands of
bpd) 389
498
Crude Oil Pipeline System:
Crude oil pipeline throughput (thousands of bpd)
(2)
1,493
837
Crude oil purchases at wellhead (thousands of
bpd) 189
184
Gross margin per barrel of pipeline throughput
(cents) (2)(3)
35.9
40.1
Average crude oil price (per barrel)
94.25
$
78.79
$
(1)
Excludes amounts attributable to equity ownership interests which are
not consolidated. (2)
(3)
Represents total segment sales and other operating revenue minus cost
of products sold and operating expenses and depreciation and amortization divided by pipeline
throughput.
In July 2010, the Partnership acquired additional interests in the
Mid-Valley and West Texas Gulf crude oil pipelines, which previously had been recorded as equity
investments. The Partnership obtained a controlling financial
interest as a result of these acquisitions and began accounting for these entities as consolidated subsidiaries
from their respective acquisition dates. Volumes for the three
months ended March 31, 2011 of 656 thousand bpd, and the related gross margin, have been included in the
crude oil pipeline throughput and gross margin per barrel of
throughput. The amounts presented for the three month period ended March 31, 2010 exclude amounts
attributable to these systems. |
 Q1 2011 Financial Highlights
13
($ in millions, unaudited)
Three Months Ended
March 31,
2011
2010
Capital Expenditure Data:
Maintenance capital expenditures
3
$
4
$
Expansion capital expenditures
25
23
Total
28
$
27
$
March 31,
December 31,
2011
2010
Balance Sheet Data (at period end):
Cash and cash equivalents
2
$
2
$
Total debt
(1)
1,280
$
1,229
$
Equity
Sunoco Logistics Partners L.P. Equity
963
$
965
$
Noncontrolling interests
78
77
Total Equity
1,041
$
1,042
$
(1)
Total debt at March 31, 2011 and December 31, 2010 includes the $100
million promissory note to Sunoco, Inc.
|
 Non-GAAP Financial Measures
($ in millions, unaudited)
14
Non-GAAP Financial Measures
(1)
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.
EBITDA and distributable cash flow do not represent and should not be considered an
alternative 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. Reconciliations of these measures to the comparable GAAP measure are provided in
the tables accompanying this release.
2011
2010
Add: Interest expense, net
20
15
Add: Depreciation and amortization
expense 18
15
Add: Provision for income taxes
5
-
EBITDA
(1)
91
73
Less: Interest expense, net
(20)
(15)
Less: Maintenance capital expenditures
(3)
(4)
Less: Provision for income taxes
(5)
-
Distributable cash flow
(1)
63
$
54
$
Three Months Ended
March 31,
43
$
48
$
Net Income attributable to Sunoco Logistics
Partners L.P. |
 Historical Operating Highlights
15
2007
2008
2011
Total
Total
1st
2nd
3rd
4th
1st
2nd
3rd
4th
1st
Operating highlights (unaudited)
Refined Products Pipeline System:
Refined product pipeline throughput (thousands of bpd)
(1)
491
510
583
568
578
576
456
519
452
442
410
Revenue per barrel of pipeline throughput (cents)
54.8
55.4
59.9
60.4
60.2
62.4
70.9
66.5
71.4
71.7
71.8
Terminal Facilities:
Refined products terminals throughput (thousands of bpd)
434
436
460
464
465
466
459
487
505
502
478
Nederland terminal throughput (thousands of bpd)
507
526
653
646
560
531
726
684
780
724
696
Refinery terminals throughput (thousands of bpd)
696
653
583
600
609
573
498
471
459
434
389
Crude Oil Pipeline System:
Crude oil pipeline throughput (thousands of bpd)
(1)(2)
674
683
664
670
611
687
837
906
1,387
1,592
1,493
Crude oil purchases at wellhead (thousands of bpd)
178
178
191
181
177
177
184
191
188
192
189
Gross margin per barrel of pipeline throughput (cents)
(3)
31.9
63.0
103.9
80.4
46.4
60.4
40.1
35.7
43.8
39.9
35.9
Average crude oil price (per barrel)
72.40
$
99.65
$
43.21
$
59.61
$
68.29
$
76.17
$
78.79
$
77.99
$
76.21
$
85.18
$
94.25
$
(1)
Excludes amounts attributable to equity ownership interests which are
not consolidated. (2)
(3)
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.
Gross margin and throughput volumes for Mid-Valley Pipeline Company
and West Texas Gulf Pipe Line Company have been included from the acquisition date.
In July 2010, the Partnership acquired additional interests in the
Mid-Valley and West Texas Gulf crude oil pipelines, which previously had been recorded as equity investments. The
Partnership obtained a controlling financial interest as a result of
these acquisitions and began accounting for these entities as consolidated subsidiaries from their respective acquisition dates.
Volumes for the three months ended March 31, 2011 of 656 thousand bpd,
and the related gross margin, have been included in the crude oil pipeline throughput and gross margin per barrel of
throughput. The amounts presented for the periods prior to the
third quarter 2010 exclude amounts attributable to these systems.
2009
2010 |