Attached files
| file | filename |
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| EX-99.1 - PRESS RELEASE - Energy Transfer Operating, L.P. | d247190dex991.htm |
| 8-K - SUNOCO LOGISTICS PARTNERS L.P. -- FORM 8-K - Energy Transfer Operating, L.P. | d247190d8k.htm |
 Third Quarter 2011
Earnings Conference Call
October 25, 2011
Sunoco Logistics Partners L.P.
Exhibit 99.2 |
 Forward-Looking Statements
2
You should review this slide presentation in conjunction with the third
quarter 2011 earnings conference call for Sunoco Logistics
Partners L.P., held on October 25 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)
888-790-3592. International callers should dial 517-308-9379. 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 866-490-
5849. International callers should dial
203-369-1705.
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 SEC 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. |
 Highlights
Record quarterly performance:
•
$150 million EBITDA
•
$109 million Distributable Cash Flow
•
$95 million Net Income
Increased distribution for 26
th
consecutive quarter
Completed three acquisitions during the quarter for a year to date
spend of $494 million Announced a three-for-one common
unit and Class A unit split (1)
Issued guidance for increasing the Partnership’s cash distribution
by 7 percent in 2012 Realigned the Partnership’s
reporting segments. (1)
All unit and per unit information presented herein is on a
pre-split basis. 3 |
 Record Acquisition Growth
Almost $500MM in major acquisitions year to date…
(1)
Includes inventory
Texon Crude Business
222
$
(1)
Eagle Point Tank Farm
100
Inland Pipeline (84% interest)
99
East Boston Terminal
73
(1)
Total
494
$
(in millions)
4 |
 5
2011 Acquisitions
Texon Crude Business w/exposure to shales in:
Bakken, Granite Wash, Permian & Eagleford
Eagle Point Tank Farm
Inland Pipeline (84% interest)
East Boston Products Terminal |
 Unit Split
3-for-1 unit split declared
Distribution of 2 additional units for every 1 unit outstanding
•
Record date—November 18, 2011
•
Effective date—December 2, 2011
Impact to units outstanding:
Targeted distribution levels will be cut to 1/3
rd
of current levels for incentive
distribution rights (IDRs); no impact to distribution
“splits” November 14, 2011 distribution of $1.24 per
common unit not impacted 6
Class of Unit
09/30/11
Pro Forma
Common
33,128,767
99,386,301
Class A
1,313,145
3,939,435 |
 Segments Realigned
Previously,
Crude
Oil
Pipeline
segment
included
crude
oil
pipeline
and
crude
oil
acquisition
and
marketing
businesses
Currently,
Crude
Oil
Pipelines
and
Crude
Oil
Acquisition
and
Marketing
are
segregated
into
separate
reporting
segments
Prior-year
amounts
have
been
restated
to
conform
No
impact
on
consolidated
results
7 |
 Former Segments
2007
2008
2009
2010
YTD
2011
Refined Products Pipeline
40
44
58
59
37
Terminal Facilities
68
81
103
124
120
Crude Oil Pipeline
85
166
182
183
222
Total EBITDA
193
291
343
366
379
Current Segments
2007
2008
2009
2010
YTD
2011
Refined Products Pipeline
40
44
58
59
37
Terminal Facilities
68
81
103
124
120
Crude Oil Pipeline
74
126
137
145
142
Crude Oil Acquisition and Marketing
11
40
45
38
80
Total EBITDA
193
291
343
366
379
Segment EBITDA: Segment Change 2007-2011YTD
Segment
Change
2007
-
2011YTD
(1)
Earnings before interest, taxes, depreciation and amortization (EBITDA)
in millions of dollars by segment (1)
2011 YTD = Nine months ended September 30, 2011.
8
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$ |
 Q3 2011 Financial Highlights
($ in millions, unaudited)
9
Three Months Ended
Nine Months Ended
September 30,
September 30,
2011
2010
2011
2010
Sales and other operating revenue
2,847
$
1,876
$
7,529
$
5,585
$
Other income
3
7
9
25
Total revenues
2,850
1,883
7,538
5,610
Cost of products sold and operating expenses
2,675
1,762
7,086
5,295
Depreciation and amortization
24
16
61
45
Selling, general and administrative expenses
23
15
67
52
Total costs and expenses
2,722
1,793
7,214
5,392
Operating income
128
90
324
218
Interest cost and debt expense
26
21
68
57
Capitalized interest
(2)
(1)
(5)
(3)
Gain on investments in affiliates
-
128
-
128
Income before provision for income taxes
104
198
261
292
Provision for income taxes
7
4
18
4
Net Income
97
194
243
288
Net income attributable to noncontrolling
interests
2
1
6
1
Net Income attributable to Sunoco Logistics
Partners L.P.
95
$
193
$
237
$
287
$
|
 Q3 2011 Financial Highlights
(amounts in millions, except per unit amounts, unaudited)
10
Three Months Ended
Nine Months Ended
September 30,
September 30,
2011
2010
2011
2010
Calculation of Limited Partners' interest:
Net Income attributable to Sunoco Logistics Partners L.P.
95
$
193
$
237
$
287
$
Less: General Partner's interest
(14)
(15)
(40)
(36)
Limited Partners' interest in Net Income
81
$
178
$
197
$
251
$
Net Income per Limited Partner unit:
(1)
Basic
2.35
$
5.60
$
5.86
$
8.03
$
Diluted
2.34
$
5.57
$
5.85
$
7.99
$
Weighted Average Limited Partners' units outstanding:
(1)
Basic
34.4
31.8
33.6
31.3
Diluted
34.6
32.0
33.7
31.5
(1) Amounts do not reflect the announced unit split.
|
 Refined Products Pipelines
($ in millions, unaudited)
11
Three Months Ended
Nine Months Ended
September 30,
September 30,
2011
2010
2011
2010
Financial Highlights
Sales and other operating revenue
37
$
30
$
93
$
91
$
Operating income
11
13
24
34
Depreciation and amortization expense
5
4
13
12
Earnings before interest, taxes, depreciation and
amortization (EBITDA)
16
17
37
45
Operating Highlights
Pipeline throughput (thousands of bpd)
(1)
605
452
496
476
Pipeline revenue per barrel (cents)
66.2
71.4
68.6
69.5
(1)
In May 2011, the Partnership acquired a controlling financial interest
in the Inland refined products pipeline. As a result of this acquisition, the Partnership
accounted for this entity as a consolidated subsidiary from the
acquisition date. Volumes for the three and nine months ended September 30, 2011 of 137 and 70
thousand bpd, respectively, and the related revenue per barrel, have
been included in the consolidated totals. From the date of acquisition, this pipeline had
actual
throughput
of
approximately
139
thousand
bpd
for
the
nine
months
ended
September
30,
2011. |
 Terminal Facilities
($ in millions, unaudited)
12
Three Months Ended
Nine Months Ended
September 30,
September 30,
2011
2010
2011
2010
Financial Highlights
Sales and other operating revenue
94
$
64
$
279
$
188
$
Operating income
33
24
96
74
Depreciation and amortization expense
8
7
24
18
EBITDA
41
31
120
93
Operating Highlights
Terminal throughput (thousands of bpd):
(1)
Refined products terminals
497
505
485
484
Nederland terminal
869
780
779
731
Refinery terminals
483
459
422
476
(1)
In July 2011 and August 2011, the Partnership acquired the Eagle
Point tank farm and a refined products terminal located in East
Boston Massachusetts,
respectively. Volumes and revenues for these acquisitions are
included from their acquisition dates. |
 Crude Oil Pipelines
($ in millions, unaudited)
13
Three Months Ended
Nine Months Ended
September 30,
September 30,
2011
2010
2011
2010
Financial Highlights
Sales and other operating revenue
81
$
61
$
233
$
145
$
Operating income
43
34
129
90
Depreciation and amortization expense
7
5
19
14
EBITDA
48
38
142
103
Operating Highlights
Pipeline throughput (thousands of bpd)
(1)
1,637
1,387
1,591
1,045
Pipeline revenue per barrel (cents)
54.0
47.3
53.7
50.5
(1)
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 and the related revenues for the three and nine months ended September 30,
2010 of 353 and 119 thousand bpd have been included in the crude oil
pipeline throughput and revenue per barrel. From the date of acquisition, these
pipelines had actual throughput of approximately 602 thousand bpd for
the three and nine months ended September 30, 2010. The amounts presented for
the three and nine month periods ended September 30, 2011 include
amounts attributable to these systems for the entire period. |
 Crude Oil Acquisition and Marketing
($ in millions, unaudited)
14
Three Months Ended
Nine Months Ended
September 30,
September 30,
2011
2010
2011
2010
Financial Highlights
Sales and other operating revenue
2,671
$
1,748
$
7,028
$
5,234
$
Operating income
41
19
75
20
Depreciation and amortization expense
4
-
5
1
EBITDA
45
19
80
21
Operating Highlights
(1)(2)
Crude oil purchases (thousands of bpd)
(1)
723
662
654
649
Gross margin per barrel purchased (cents)
(2)
66.3
34.3
47.2
15.0
Average crude oil price (per barrel)
$89.81
$76.21
$95.52
$77.65
(1)
(2)
Includes results from the crude oil acquisition and marketing business
acquired from Texon L.P. in August 2011 from the acquisition date.
Represents
total
segment
sales
and
other
operating
revenue
minus
cost
of
products
sold
and
operating
expenses
and
depreciation
and
amortization
divided
by
total crude purchases. |
 Q3 2011 Financial Highlights
($ in millions, unaudited)
15
Three Months Ended
Nine Months Ended
September 30,
September 30,
2011
2010
2011
2010
Capital Expenditure Data:
Maintenance capital expenditures
10
$
11
$
20
$
25
$
Expansion capital expenditures
43
26
102
88
Major Acquisitions
395
243
494
243
Total
448
$
280
$
616
$
356
$
September 30,
December 31,
2011
2010
Balance Sheet Data (at period end):
Cash and cash equivalents
8
$
2
$
Total debt
(1)
1,798
$
1,229
$
Equity
Sunoco Logistics Partners L.P. Equity
1,081
$
965
$
Noncontrolling interests
101
77
Total Equity
1,182
$
1,042
$
(1)
Total debt at September 30, 2011 and December 31, 2010 includes
the $100 million promissory note to
Sunoco, Inc. |
 Non-GAAP Financial Measures
($ in millions, unaudited)
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.
16
Three Months Ended
Nine Months Ended
September 30,
September 30,
2011
2010
2011
2010
Add: Interest expense, net
24
20
63
54
Add: Depreciation and amortization expense
24
16
61
45
Add: Provision for income taxes
7
4
18
4
Less: Gain on investments in affiliates
-
(128)
-
(128)
EBITDA
(1)
150
105
379
262
Less: Interest expense, net
(24)
(20)
(63)
(54)
Less: Maintenance capital expenditures
(10)
(11)
(20)
(25)
Less: Provision for income taxes
(7)
(4)
(18)
(4)
Distributable cash flow
(1)
109
$
70
$
278
$
179
$
237
$
287
$
193
$
95
$
Net Income attributable to Sunoco Logistics
Partners L.P. |
 Historical Financial Highlights
17
2007
2008
Total
Total
1st
2nd
3rd
4th
Total
1st
2nd
3rd
4th
Total
1st
2nd
3rd
Financial highlights (in millions)
Sales and other operating revenue
Refined Products Pipelines
98
$
104
$
32
$
31
$
32
$
33
$
128
$
30
$
31
$
30
$
29
$
120
$
27
$
29
$
37
$
Terminal Facilities
148
171
49
52
50
56
207
60
64
64
99
287
93
92
94
Crude Oil Pipelines
122
171
48
42
43
185
43
41
61
76
221
71
81
81
Crude Oil Acquisition and Marketing
7,066
9,762
938
1,178
1,321
1,553
4,990
1,570
1,916
1,748
2,048
7,282
2,098
2,259
2,671
Intersegment eliminations
(56)
(96)
(29)
(30)
(25)
(24)
(108)
(23)
(23)
(27)
(29)
(102)
(31)
(37)
(36)
Total sales and other revenue
7,378
$
10,112
$
1,038
$
1,283
$
1,420
$
1,661
$
5,402
$
1,680
$
2,029
$
1,876
$
2,223
$
7,808
$
2,258
$
2,424
$
2,847
$
Operating income
Refined Products Pipelines
32
34
11
11
13
10
45
8
13
13
10
44
5
8
11
Terminal Facilities
53
58
21
21
21
21
84
22
28
24
21
95
29
34
33
Crude Oil Pipelines
63
115
33
36
27
27
123
30
26
34
36
126
39
47
43
Crude Oil Acquisition and Marketing
8
38
26
11
(2)
8
43
(2)
3
19
16
36
2
32
41
Total operating income
156
$
245
$
91
$
79
$
59
$
66
$
295
$
58
$
70
$
90
$
83
$
301
$
75
$
121
$
128
$
Depreciation and amortization
Refined Products Pipelines
8
$
9
$
3
$
3
$
3
$
4
$
13
$
4
$
4
$
4
$
3
$
15
$
4
$
4
$
5
$
Terminal Facilities
15
16
5
5
5
4
19
6
5
7
8
26
8
8
8
Crude Oil Pipelines
12
13
4
3
3
4
14
5
4
5
7
21
6
6
7
Crude Oil Acquisition and Marketing
2
2
-
-
1
1
2
-
1
-
1
2
-
1
4
Total depreciation and amortization
37
$
40
$
12
$
11
$
12
$
13
$
48
$
15
$
14
$
16
$
19
$
64
$
18
$
19
$
24
$
Refined Products Pipelines
40
44
14
14
16
14
58
12
17
17
13
59
9
12
16
Terminal Facilities
68
81
26
26
26
25
103
28
33
31
32
124
37
42
41
Crude Oil Pipelines
74
126
37
39
30
31
137
35
30
38
42
145
43
51
48
Crude Oil Acquisition and Marketing
11
40
26
11
(1)
9
45
(2)
4
19
17
38
2
33
45
Total EBITDA
193
$
291
$
103
$
90
$
71
$
79
$
343
$
73
$
84
$
105
$
104
$
366
$
91
$
138
$
150
$
Earnings before interest, taxes, depreciation
and amortization
2009
2010
2011
52
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$ |
 Historical Operating Highlights
18
2007
2008
Total
Total
1st
2nd
3rd
4th
1st
2nd
3rd
4th
1st
2nd
3rd
Operating
highlights
(1)
(unaudited)
Refined
Products
Pipelines:
Pipeline
throughput
(thousands of
bpd)
(2)(3)
491
510
583
568
578
576
456
519
452
442
410
471
605
Pipeline revenue per barrel (cents)
54.8
55.4
59.9
60.4
60.2
62.4
70.9
66.5
71.4
71.7
71.8
69.1
66.2
Terminal
Facilities:
(4)
Refined
products
terminals
throughput
(thousands
of
bpd)
434
436
460
464
465
466
459
487
505
502
478
479
497
Nederland
terminal
throughput
(thousands
of
bpd)
507
526
653
646
560
531
726
684
780
724
696
771
869
Refinery
terminals
throughput
(thousands
of
bpd)
696
654
583
599
609
574
498
471
459
434
389
393
483
Crude Oil Pipelines:
Pipeline
throughput
(thousands
of
bpd)
(5)
674
683
664
670
611
687
837
906
1,387
1,592
1,493
1,641
1,637
Pipeline
revenue
per
barrel
(cents)
(5)
49.6
68.5
81.0
86.2
74.3
68.5
57.2
49.5
47.3
50.9
52.7
54.2
54.0
Crude Oil Acquisition and Marketing:
Crude oil purchases (thousands of bpd)
578
579
637
656
539
540
603
681
662
606
601
637
723
Gross
margin
per
barrel
purchased
(cents)
(6)
8.0
21.9
48.5
21.3
1.4
22.3
2.7
6.8
34.3
35.6
8.4
61.6
66.3
Average crude oil price (per barrel)
2009
2010
2011
72.40
$
99.65
$
43.21
$
59.61
$
68.29
$
76.17
$
78.79
$
77.99
$
76.21
$
85.18
$
94.25
$
102.55
$
89.81
$
(1)
In the third quarter 2011, the Partnership realigned its reporting
segments. The updated reporting segments are: Refined Products Pipeline, Crude Oil Pipeline, Terminal Facilities, and Crude Oil Acquisition and
Marketing. The primary difference in the new reporting is the
segregation of the crude oil pipeline and the crude oil acquisition and marketing operations. For comparative purposes, all prior period amounts have
been recast to reflect the new segment reporting. The change does
not impact consolidated net income. (2) Excludes amounts attributable to
equity ownership interests which are not consolidated. (3) In May 2011, the Partnership
acquired a controlling financial interest in the Inland refined products pipeline. As a result of this acquisition, the Partnership accounted for this entity as a consolidated subsidiary from
the acquisition date. Volumes for the three months ended September 30,
2011 of 137 thousand bpd and the related revenue per barrel, have been included in the refined products pipeline throughput and revenue per
barrel.
(4)
In July 2011 and August 2011, the Partnership acquired the Eagle Point
tank farm and a refined products terminal located in East Boston Massachusetts, respectively. Volumes and revenues for these acquisitions are
included from their acquisition dates.
(5)
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 and the related revenues for the three
months ended September 30, 2010 of 353 thousand bpd have been included
in the crude oil pipeline throughput and revenue per barrel. From the date of acquisition, these pipelines had actual throughput of
approximately 602 thousand bpd for the three months ended September 30,
2010. The amounts presented for the three month period ended September 30, 2011 include amounts attributable to these systems for the
entire period.
(6)
Represents total segment sales and other operating revenue minus
cost of products sold and operating expenses and depreciation and amortization divided by total crude purchases.
|