Merrill Lynch
Global Energy Conference

                Lynn L. Elsenhans
                President & CEO
                ...
Safe Harbor Statement
Statements in this presentation that are not historical facts are forward-looking statements intende...
Sunoco Operations
     Capital Employed, MM$
             6/30/08


             Corp.                                    ...
Income (Loss) Before Special Items*, MM$

    $1,200
                                                       1,012
        ...
Market Environment

      Weak refining market in 1H08, particularly for
  g
      gasoline
      0 Lower gasoline demand ...
Crude Oil Prices, $/B

        150
                                      7/14 = $145




                        2008
    ...
Implied U.S. Gasoline Demand Growth, %

     3%
                                                                       U.S...
Northeast Gasoline Refining Margins, $/B
                                 Jan 2006 – Sep 2008
        30
                 ...
Sunoco Response

      Optimize refining operations to match the market
  g
      environment

      0 Maximize benefit of...
Northeast Refining Operations
                                                Northeast
                                  ...
MidContinent Refining Operations

                                                      MidContinent
                     ...
Nigerian Crude Purchases*, MB/D


 400
                  356
                                      337
 350               ...
Retail Marketing

                                                    2003 2004 2005    2006   2007   1H08
     Income, MM...
Chemicals

                                                    2003   2004    2005   2006   2007   1H08
      Income, MM$ ...
Logistics Cash To Sunoco, Inc.*, MM$

      $100
                     LP Distribution                                     ...
SunCoke Energy Operations
                                Coke
                              Capacity
                    ...
Coke Outlook – Net Income

      250
                                                       210       210
                ...
Financial Flexibility
                                Net Debt-to-Capital Ratio*, %
    60%

                42%          ...
Key Takeaways

     Fundamental supply/demand outlook for refined products
 g
     remains challenging

     Sunoco respon...
Appendix
Long-Term Consistent Strategy
                           Cumulative Cash Spending
                          (Billions of $...
Summary of Results

                                                        2003   2004    2005   2006    2007      1H08

...
Earnings Profile
                                   2003    2004    2005     2006   2007   1H08
Income (Loss), MM$ after t...
Financial Ratios, MM$ (except ratios)
                                                                     Period-End

   ...
EBITDA Reconciliation to Net Income (Loss), MM$


                              2003                                      ...
Capital Program by Business Unit, MM$
                                                                         Proj.
     ...
Capital Program by Category, MM$

                                                                                       P...
Share Repurchase Activity
                       Shares       Total    Average
                     Repurchased    Cost   ...
Dividend Increases


                                                     $1.20
      Annualized Dividend                 ...
Refining & Supply

                                                       2003       2004    2005 2006 2007 1H08
  Income ...
Refining & Supply Capital Program, MM$

                                             Proj.
                               ...
2007 Refining Capital Projects
      Philadelphia FCC Expansion / Resid Processing
 g

       0 Completed April 2007; Tota...
Major 2008-2009 Refining Projects

    Philadelphia Hydrocracker Conversion (Est. Completion: 2009)
g

     0 Estimated Ca...
Refining Product Yield – 1H08
                              Other
          Petrochemicals
                               ...
Refining Product Yield – 1H08

                                                                Total
                     ...
Sunoco Crude Supply – 1H08

                   USA, 19%



   North Sea, 1%
                                          Nige...
Sweet* Crude Availability to Sunoco
  Western Canadian                                                          Caspian
  ...
Retail Marketing

                                                      2003    2004    2005    2006   2007    1H08
  Inco...
Retail Marketing Channels


        Gasoline Volume              Retail Site Count
             1H08                      ...
Chemicals

                              2003    2004    2005    2006    2007    1H08
 Income, MM$                     53 ...
Chemicals
                                                          North America
Capital Employed: $975 Million          ...
Sunoco Logistics Partners L.P. (SXL)
                         SXL Market Capitalization
  MM$
                            ...
SXL Distributions

                                                                                                       ...
Coke
           Business distinct from oil industry
      g

            0 Metallurgical grade coke for steel industry
   ...
SunCoke Energy Plants
                                                                Coke
                               ...
Coke Outlook – EBITDA*, MM$


400
                                                                                        ...
Coke EBITDA Reconciliation to Net Income, $MM
                               (excludes any net financing costs )



 Total...
SunCoke Energy Ovens




                       A28
SunCoke Energy Oven Battery (Indiana Harbor)




                                               A29
For More Information



     Media releases and SEC filings are available
     on our website at www.SunocoInc.com

      ...
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sunoco Merrill Lynch Global Energy Mid and Small Cap Conference Presentation

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sunoco Merrill Lynch Global Energy Mid and Small Cap Conference Presentation

  1. 1. Merrill Lynch Global Energy Conference Lynn L. Elsenhans President & CEO October 1, 2008
  2. 2. Safe Harbor Statement Statements in 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 assumptions by Sunoco concerning future conditions, any or all of which ultimately may prove to be inaccurate, and upon the current knowledge, beliefs and expectations of Sunoco management. These forward-looking statements are not guarantees of future performance. Forward-looking statements are inherently uncertain and involve significant risks and uncertainties that could cause actual results to differ materially from those described during this presentation. Such risks and uncertainties include economic, business, competitive and/or regulatory factors affecting Sunoco's business, as well as uncertainties related to the outcomes of pending or future litigation. In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Sunoco has included in its Annual Report on Form 10-K for the year ended December 31, 2007, and in its subsequent Form 10-Q and 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 concerning these factors, see Sunoco's Securities and Exchange Commission filings, available on Sunoco's website at www.SunocoInc.com. Sunoco expressly disclaims any obligation to update or alter its 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 Appendix at the end of the presentation. Investors are urged to consider carefully the comparable GAAP measures and the reconciliations to those measures provided in the Appendix, or on our website at www.SunocoInc.com. 2
  3. 3. Sunoco Operations Capital Employed, MM$ 6/30/08 Corp. Toledo 440 Refining & Coke Supply 490 1,215 Logistics Frankford 500 Eagle Point Indiana Retail Philadelphia Harbor Haverhill Marketing Marcus Hook Chemicals 620 Neal Refinery 975 Jewell Marcus Hook Polypropylene Tulsa Refineries Chemical Plants Coke Plants Terminal Retail Marketing Western Pipeline System La Porte Eastern Pipeline System Bayport Nederland 3
  4. 4. Income (Loss) Before Special Items*, MM$ $1,200 1,012 979 $1,000 833 $800 629 $600 335 $400 $200 2 $0 ($200) 2003 2004 2005 2006 2007 1H08 Non-Refining Refining & Supply Total Sunoco * For reconciliation to Net Income, see slide A5. 4
  5. 5. Market Environment Weak refining market in 1H08, particularly for g gasoline 0 Lower gasoline demand (economy/price level) 0 More ethanol supply 0 Rising crude oil prices and premiums for light/sweet grades Falling oil prices in 3Q08 helpful but fundamental g refined product supply/demand outlook remains extremely volatile and challenging 5
  6. 6. Crude Oil Prices, $/B 150 7/14 = $145 2008 125 1/2 = $100 100 9/29 = $96 75 2007 50 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: NYMEX - WTI 6
  7. 7. Implied U.S. Gasoline Demand Growth, % 3% U.S. Gasoline Demand 2007 vs 2006 2% 2007: + 0.8% 2008 YTD: - 1.7% 1% 0% -1% 2008 vs. 2007 -2% -3% -4% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: Energy Information Administration, U.S. Department of Energy 7
  8. 8. Northeast Gasoline Refining Margins, $/B Jan 2006 – Sep 2008 30 2008 2007 2006 25 20 15 $/B 10 5 0 -5 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Source: - Wholesale Gasoline – New York Harbor Unleaded 87 Regular - Crude Oil – Dated Brent 8
  9. 9. Sunoco Response Optimize refining operations to match the market g environment 0 Maximize benefit of 2007 refining capital investment to improve operating flexibility and product yield 0 Reduce purchases of higher-cost Nigerian-sourced crude in 3Q08 Maximize value of non-refining businesses g Maintain financial flexibility and liquidity g 9
  10. 10. Northeast Refining Operations Northeast % of Net Production 40% 12.0% 11.5% 37.8% 11.0% 38% 36.3% 10.5% Distillate % Distillate 35.5% % Resid 35.1% 10.0% 36.1% 34.5% 35% 9.7% 9.5% 9.6% 9.0% 9.1% 8.7% 33% 8.5% 8.2% 8.0% 7.5% Residual Fuel 30% 7.5% 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 Less low-valued residual fuel and more high- g valued distillate Helped by 2007 expansion and modification of g Philadelphia catalytic cracking unit 10
  11. 11. MidContinent Refining Operations MidContinent % of Net Production 53% 51.2% 50% 48% 46.2% % Gasoline, Distillate 48.3% 47.6% 46.6% 45% 43% Gasoline 42.2% 40% 39.9% 38% 34.7% 35% Distillate 33.0% 32.3% 30.8% 33% 32.6% 30% 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 Less gasoline and more high-valued distillate g Helped by 2007 debottleneck of Toledo crude unit g 11
  12. 12. Nigerian Crude Purchases*, MB/D 400 356 337 350 319 306 300 250 200 150 90 100 50 0 2006 2007 1Q08 2Q08 3Q08 Proj * For use in the Northeast Refining system 12
  13. 13. Retail Marketing 2003 2004 2005 2006 2007 1H08 Income, MM$ 91 68 30 76 69 26 EBITDA, MM$* 244 217 155 233 221 96 Avg. Capital Employed, MM$ 565 574 569 549 539 583 Performance: g Margins and earnings volatile within the year but relatively stable income and cash generation g Recent declines in wholesale gasoline prices leading to improvement in retail gasoline margins Strategic View: g Integrated with Sunoco’s refinery gasoline production g Continue to structure retail portfolio for optimum return 13 * For reconciliation to Net Income, see Slide A5.
  14. 14. Chemicals 2003 2004 2005 2006 2007 1H08 Income, MM$ 53 94 94 43 26 21 EBITDA, MM$* 149 223 223 135 115 67 Avg. Capital Employed, MM$ 934 1,012 1,029 1,043 1,031 987 Performance: g Rising feedstock costs have squeezed margins in soft end-use markets Strategic View: g Consistent free cash flow generation g Pursuing strategic opportunities to improve returns and maximize value 14 * For reconciliation to Net Income, see Slide A5.
  15. 15. Logistics Cash To Sunoco, Inc.*, MM$ $100 LP Distribution 80 $80 GP Distribution 63 $60 50 39 39 35 $40 21 $20 $0 2002 2003 2004 2005 2006 2007 Current Annualized HH2 HH2 HH2 HH2 Existing 43% ownership interest (12.1 MM L.P. units plus 100% of general g Existing Existing partner) in Sunoco LogisticsExisting Partners L.P. (NYSE: SXL) Existing Existing Implied value of Sunoco’s SXL General and Limited Partner g interests of approximately $1.2 billion Expectations for continued growth g * Excludes cash related to sales of Limited Partner units: $96MM in 2002, $83MM in 2004 and $99MM in 2005. 15
  16. 16. SunCoke Energy Operations Coke Capacity Mtons Indiana Jew ell 700 Harbor Indiana Harbor 1,250 Haverhill I 550 Middletown Vitória, Brazil 1,700 Haverhill 1 & 2 Haverhill II (2H08) 550 Existing Assets 4,750 Jewell Coal Jewel Coke Granite City (4Q09) 650 Middletow n (2010) 550 Knoxville Announced Grow th 1,750 Granite City Existing facilities Brazil Announced facilities Headquarters Vitória 16
  17. 17. Coke Outlook – Net Income 250 210 210 195 185 200 AK Middletown 150 Granite City $MM Haverhill 2 110 100 Pre-2008 Base 29 50 0 2007 2008 2009 2010 2011 2012 17
  18. 18. Financial Flexibility Net Debt-to-Capital Ratio*, % 60% 42% 40% 37% 37% 40% 27% 17% 20% 0% Gateway Gateway 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 6/30/08 HH2 HH2 BBB investment-grade credit g Existing Existing Existing $2 billion of committed liquidity Existing g Existing Existing 0$1.3 billion revolving credit agreement – Sunoco ($1.2 billion through Aug 2012 and $0.1 billion through Aug 2011) 0$0.2 billion A/R Securitization – Sunoco (through Aug 2009) 0$0.5 billion revolving credit agreement – SXL ($0.4 billion through Nov 2012 and $0.1 billion through May 2009) 18 * Revolver Covenant basis. For calculation, see Slide A4.
  19. 19. Key Takeaways Fundamental supply/demand outlook for refined products g remains challenging Sunoco responding to market environment g 0 Optimize refinery operations 0 Maximize the value of the non-refining businesses 0 Maintain financial flexibility and liquidity Committed to maximizing shareholder value g 19
  20. 20. Appendix
  21. 21. Long-Term Consistent Strategy Cumulative Cash Spending (Billions of $ - 2000 to 1H08) 14 Get more from existing assets g 12 Opportunistically upgrade the asset base g Share Return cash to the shareholders g 10 $3.7 B Buyback & Dividends Maintain financial strength g 8 Growth $2.6 B Capital & 6 Acquisitions 4 Capital $5.4 B Expenditures 2 0 2000 2001 2002 2003 2004 2005 2006 2007 1H08 A1
  22. 22. Summary of Results 2003 2004 2005 2006 2007 1H08 Income before Special Items, MM$ * 335 629 1,012 979 833 2 Income before Special Items, $/share * 2.16 4.20 7.36 7.59 6.94 0.02 ROCE, % ** 13.2 21.7 32.4 28.3 21.0 0.9 Debt / Capital, % (GAAP Basis) 51 48 41 49 41 43 Debt / Capital, % (Revolver Basis)*** 42 37 17 40 27 37 Share Repurchase, MM$ 136 568 435 871 300 49 Shares O/S @ Period-end, MM 150.8 138.7 133.1 121.3 117.6 116.9 Share Price @ Period-end, $/share 25.58 40.86 78.38 62.36 72.44 40.69 * Reconciliation of Income before Special Items to Net Income provided on Slide A5. ** Calculated using Income before Special Items. *** Revolver covenant calculation. See reconciliation on Slide A6. A2
  23. 23. Earnings Profile 2003 2004 2005 2006 2007 1H08 Income (Loss), MM$ after tax: Refining & Supply 261 541 947 881 772 (91) Retail Marketing 91 68 30 76 69 26 Chemicals 53 94 94 43 26 21 Logistics 26 31 22 36 45 36 Coke 43 40 48 50 29 48 Corporate Expenses (40) (67) (84) (58) (67) (28) Net Financing Expenses & Other (99) (78) (45) (49) (41) (10) Income Before Special Items 335 629 1,012 979 833 2 (24) (38) - 58 21 Special Items (23) Net Income 312 605 974 979 891 23 EPS (Diluted): Income before Special Items 2.16 4.20 7.36 7.59 6.94 0.02 Special Items (0.15) (0.16) (0.28) - 0.49 0.18 Net Income 2.01 4.04 7.08 7.59 7.43 0.20 A3
  24. 24. Financial Ratios, MM$ (except ratios) Period-End 2003 2004 2005 2006 2007 6/30/08 Total Debt (GAAP Basis) 1,601 1,482 1,411 1,987 1,728 1,826 Plus: Debt Guarantees 12 11 7 5 3 3 Less: Cash 431 405 919 263 648 214 Net Debt (Revolver Covenant Basis) 1,182 1,088 499 1,729 1,083 1,615 Shareholders’ Equity (GAAP Basis) 1,556 1,607 2,051 2,075 2,533 2,414 232 397 503 356 367 SXL * Minority Interest 104 Equity (Revolver Covenant Basis) 1,660 1,839 2,448 2,578 2,889 2,781 Debt / Capital (GAAP Basis) 51% 48% 41% 49% 41% 43% Net Debt / Capital ** (Revolver Covenant Basis) 42% 37% 17% 40% 27% 37% * Sunoco Logistics Partners L.P. (NYSE: SXL). ** The Net Debt / Capital ratio is used by Sunoco management in its internal financial analysis and by investors and creditors in the assessment of Sunoco’s financial position. A4
  25. 25. EBITDA Reconciliation to Net Income (Loss), MM$ 2003 2006 Refining Retail Refining Retail & Supply Marketing Chemicals Coke & Supply Marketing Chemicals Coke EBITDA 581 244 149 79 EBITDA 1,692 233 135 70 Less: Depreciation 165 99 65 13 Less: Depreciation 225 104 74 18 Less: Income Tax 155 54 31 23 Less: Income Tax 586 53 18 2 Net Income 261 91 53 43 Net Income 881 76 43 50 2004 2007 Refining Retail Refining Retail & Supply Marketing Chemicals Coke & Supply Marketing Chemicals Coke EBITDA 1,096 217 223 71 EBITDA 1,495 221 115 34 Less: Depreciation 188 106 70 13 Less: Depreciation 240 108 75 20 Less: Income Tax 367 43 59 18 Less: Income Tax 483 44 14 (15) Net Income 541 68 94 40 Net Income 772 69 26 29 2005 1H08 Refining Retail Refining Retail & Supply Marketing Chemicals Coke & Supply Marketing Chemicals Coke EBITDA 1,783 155 223 85 EBITDA (21) 96 67 73 Less: Depreciation 201 105 71 16 Less: Depreciation 131 52 33 11 Less: Income Tax 635 20 58 21 Less: Income Tax (61) 18 13 14 Net Income 947 30 94 48 Net Income (Loss) (91) 26 21 48 A5
  26. 26. Capital Program by Business Unit, MM$ Proj. 2006 2007 2008 Refining & Supply 712 700 734 Retail Marketing 112 111 149 Chemicals 62 66 52 Logistics* 119 120 144 182 316 Coke* 14 Total 1,019 1,179 1,395 * Excludes $109MM of Logistics acquisitions and $155MM for the acquisition of the minority interest in Jewell Coke in 2006, a $39MM investment in Brazilian cokemaking operations in 2007 and $200MM of Logistics acquisitions in 2008. Includes Logistics and Coke organic growth spending as follows: 2006 2007 2008 Logistics Organic Growth 89 94 117 Coke (Haverhill II) - 165 81 Coke (Granite City, IL) - - 145 Coke (Middletown, OH) - - 67 A6
  27. 27. Capital Program by Category, MM$ Proj. 2006 2007 2008 Base Maintenance / 350 455 550 Turnaround Regulatory / Required 282 230 260 632 685 810 Income Improvement* 387 494 585 Total 1,019 1,179 1,395 * Includes Sunoco Logistics and Coke organic growth investments. For detail, see slide A6. A7
  28. 28. Share Repurchase Activity Shares Total Average Repurchased Cost 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 12.2 871 71.13 2007 4.0 300 75.35 1H08 0.8 49 63.27 Total 77.2 2,896 37.46 Net Share Reduction since Jan 2000 = 35% Shares O/S at 6/30/08 = 116.9MM Remaining Authorization at 6/30/08 = $600MM A8
  29. 29. Dividend Increases $1.20 Annualized Dividend $1.10 $1.00 $0.80 $0.60 $0.50 $0.55 3Q03 4Q03 3Q04 2Q05 2Q06 2Q07 2Q08 140% increase over past six years A9
  30. 30. Refining & Supply 2003 2004 2005 2006 2007 1H08 Income (Loss), MM$ 261 541 947 881 772 (91) EBITDA, MM$* 581 1,096 1,783 1,692 1,495 (21) Total Prod. Available for Sale, MB/D Northeast 523 676 692 670 673 622 MidContinent 231 227 235 233 233 222 Total Refining & Supply 754 903 927 903 906 844 Realized Gross Margin, $/B Northeast 4.63 6.36 8.35 7.92 7.38 5.28 MidContinent 5.05 6.12 9.54 12.46 13.17 5.07 Total Refining & Supply 4.76 6.30 8.65 9.09 8.87 5.23 Avg. Capital Employed, MM$ 793 797 809 1,231 1,394 1,182 ROCE, % 33% 68% 117% 72% 55% (8%) A10 * For reconciliation to Net Income (Loss), see Slide A5.
  31. 31. Refining & Supply Capital Program, MM$ Proj. 2006 2007 2008 Base Infrastructure 135 184 209 Turnarounds 65 97 115 Sub-Total Sustaining 200 281 324 Major Projects 512 419 410 Total 712 700 734 A11
  32. 32. 2007 Refining Capital Projects Philadelphia FCC Expansion / Resid Processing g 0 Completed April 2007; Total Cost: $525MM 0 Expands capacity to upgrade residual fuel and adds crude slate flexibility for Northeast system 0 In 2008: Capture full-year benefit of $85MM net income* and continue to optimize operations Toledo Crude Unit Debottleneck g 0 Completed in July 2007; Total Cost: $53MM 0 Expanded refining capacity and increased jet fuel production 0 In 2008: Capture current full-year benefit of $30MM net income** and resolve fouling issues * Assumes $25/B upgrade included in project economics from residual fuel to gasoline/distillate on 17 MB/D. ** Assumes average light product margins included in project economics of $15/B over crude on 10 MB/D. A12
  33. 33. Major 2008-2009 Refining Projects Philadelphia Hydrocracker Conversion (Est. Completion: 2009) g 0 Estimated Capital: $285MM 0 Replace approximately 35 MB/D of LSD currently sold into fuels market under Temporary Compliance Order (500 ppm sulfur) 0 Upgrade approximately 10 MB/D of heating oil to ULSD 0 Full-year benefit of $55MM net income (25% IRR) (assumes $6.50/B uplift included in project economics from heating oil to ULSD on 45 MB/D) Toledo Hydrocracker Conversion (Est. Completion: 2008) g 0 Estimated Capital: $1MM 0 Expand hydrocracker by 3-5 MB/D Toledo Environmental New Source Review (Est. Completion: 2009) g 0 Estimated Capital: $450MM 0 Comply with environmental agreement and enable potential refinery expansion in the future A13
  34. 34. Refining Product Yield – 1H08 Other Petrochemicals 5% & Lubricants 5% Residual Fuel 6% Gasoline 47% Distillate 37% Total Production Available for Sale = 844 MB/D A14
  35. 35. Refining Product Yield – 1H08 Total Northeast MidContinent Refining Refining Refining & Supply Gasoline Production, MB/D 295.4 98.1 393.5 RFG 57% 0% 42% Conventional 43% 100% 58% Distillate Production, MB/D 229.1 81.1 310.2 On-Road Diesel Fuel 53% 29% 47% Heating Oil / Off-Road Diesel 29% 29% 29% Jet Fuel 16% 42% 22% Kerosene / Other 2% 0% 2% A15
  36. 36. Sunoco Crude Supply – 1H08 USA, 19% North Sea, 1% Nigeria, 41% Former Soviet Union, 6% Venezuela, 3% Canada, 8% Other Africa, Chad, 10% 12% A16
  37. 37. Sweet* Crude Availability to Sunoco Western Canadian Caspian North Sea Sweet 0.8 MMB/D 3.5 MMB/D 1.0 MMB/D Eastern Canada 0.4 MMB/D U.S. 0.7 MMB/D North Africa 2.8 MMB/D West Africa 5.0 MMB/D South America 20 17.2 0.5 MMB/D 14.7 16 Columbia / Venezuela MMB/D 10.7 12 8 4 0 2005 Current 2009 Estimate * <0.5% sulfur Source: Sunoco estimates A17
  38. 38. Retail Marketing 2003 2004 2005 2006 2007 1H08 Income, MM$ 91 68 30 76 69 26 EBITDA, MM$* 244 217 155 233 221 96 Retail Gasoline Margin, cpg 10.3 9.8 8.1 9.9 9.3 9.2 Retail Gasoline Sales, MMgal 4,239 4,555 4,573 4,648 4,614 2,210 Acquisition Capital, MM$ 162 181 - - - - Divestment Proceeds, MM$ 74 193 50 46 65 8 Total Retail Outlets (at period end) 4,528 4,804 4,763 4,691 4,684 4,714 Convenience Stores (at period end) 813 757 746 739 728 710 Avg. Capital Employed, MM$ 565 574 569 549 539 583 ROCE, % 16% 12% 5% 14% 13% 4% * For reconciliation to Net Income, see Slide A5. A18
  39. 39. Retail Marketing Channels Gasoline Volume Retail Site Count 1H08 6/30/08 Co-ops Co-ops 538 23% Dealers Distributors Distributors 44% 1,143 3,033 Dealers 33% Total: 4,714 sites Total: 2.2 billion gallons A19
  40. 40. Chemicals 2003 2004 2005 2006 2007 1H08 Income, MM$ 53 94 94 43 26 21 Avg. Chemicals Margin, cpp 9.5 11.0 12.1 9.9 9.8 9.9 Sales Volume, MMlbs Phenol & Related 2,629 2,615 2,579 2,535 2,508 1,190 Polypropylene 2,248 2,239 2,218 2,243 2,297 1,131 Acquisition Capital, MM$ 198 40 - - - - Divestment Proceeds, MM$ - 105 - - - - Avg. Capital Employed, MM$ 934 1,012 1,029 1,043 1,031 987 ROCE, % 6% 9% 9% 4% 3% 2% A20
  41. 41. Chemicals North America Capital Employed: $975 Million Effective Annual Industry Capacity, billion lbs (as of 06/30/08) Phenol Polypropylene LyondellBasell 3.2 Sunoco 1.8* ExxonMobil 2.7 Shell 1.3 Sunoco 2.5 Ineos 1.3 Total 2.5 Mount Vernon 0.7 Phenol & Ineos 2.3 (Sabic/Citgo/JLM) Related Polypropylene Formosa 1.8 Dow/Carbide 0.6 Dow 0.9 Georgia Gulf 0.5 Others 5.1 Others 0.2 Total 21.0 Total 6.4 Source: 2008 Chemical Data & Sunoco Estimates * Includes 750 MM lbs long-term cost-based contract to Honeywell A21
  42. 42. Sunoco Logistics Partners L.P. (SXL) SXL Market Capitalization MM$ (LP Interest Only) 1,800 As of 9/29/08: $1,260MM 1,600 1,442 1,432 1,344 1,400 1,200 1,032 1,000 1,000 840 800 546 Value to Sunoco, Inc. 600 461 Current LP Distribution: $3.74/unit annualized g Sunoco LP Ownership: 12.1 MM units 400 Current GP Distribution: $9MM per quarter g 200 Sunoco 100% owner of GP 0 2/8/02 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 6/30/2008 (IPO) A22
  43. 43. SXL Distributions LP/GP Distribution Split (%) (per unit) th Grow ion tribut $3.60 50 / 50 Dis 108% $3.20 $2.80 75 / 25 $2.40 85 / 15 $2.00 98 / 2 $1.60 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 Current annual distribution of $3.74/unit (approximate 8% yield) g and approximately $80MM of LP/GP distributions to Sunoco A23
  44. 44. Coke Business distinct from oil industry g 0 Metallurgical grade coke for steel industry 0 Long-term contracts 0 15% IRR targets 0 Coal costs contractually passed on to customers 0 Growing profitability from company-owned coal operations Strong demand for new plants g 0 Reliable supply of quality coke using environmentally superior technology Growing income contribution g 0 2008 net income expected to be $110-115MM (EBITDA of $165-170MM*) 0 End-of-2010 net income run rate of approximately $210MM (EBITDA of $350MM*) A24 44 * For reconciliation to Net Income, see Slide A27.
  45. 45. SunCoke Energy Plants Coke Investm ent Capacity Energy MM$ Mtons Generation Jew ell N/A 700 N/A Indiana Harbor 195 1,250 steam Haverhill I 150 550 steam 41* Vitória, Brazil 1,700 pow er Haverhill II 250 550 pow er** Existing Assets 636 4,750 Granite City 300 650 steam Middletow n 350 550 pow er** Announced Grow th 650 1,750 * Represents equity ownership interests. ** Haverhill II and Middletown will have Sunoco-owned co-generation facilities, A25 each capable of generating 46 MW of power per year.
  46. 46. Coke Outlook – EBITDA*, MM$ 400 350 350 350 315 AK Middletown 300 AK Middletown AK Middletown 1 New Project (200 Oven) 235 250 AK MiddletownCity Granite Granite City Gateway Haverhill 2 200 165 AK Middletown AK Middletown Haverhill 2 Gateway 150 Gateway Gateway 100 HH2 HH2 HH2 Pre-2008 Base 34 Existing Existing 50 Existing Existing Existing 0 2007 2008 2009 2010 2011 2012 A26 * For reconciliation to Net Income, see Slide A27.
  47. 47. Coke EBITDA Reconciliation to Net Income, $MM (excludes any net financing costs ) Total SunCoke Energy 2007 2008 2009* 2010* 2011* 2012* EBITDA 34 165 235 315 350 350 Less: Depreciation 20 25 37 49 50 51 Less: Income Tax 3 47 68 95 105 100 65 ** Plus: Tax Credits 18 17 14 15 11 Net Income 29 110 195 185 210 210 * Assumes average contract coal price $125/T…each +/- $25/T price change ~approximately $20MM net income A27 ** Includes (one time) Section 48B credit of approximately $40MM
  48. 48. SunCoke Energy Ovens A28
  49. 49. SunCoke Energy Oven Battery (Indiana Harbor) A29
  50. 50. For More Information Media releases and SEC filings are available on our website at www.SunocoInc.com Contact for more information: Tom Harr Investor Relations 1-215-977-6764 tmharr@sunocoinc.com A30
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