Sunoco Logistics Partners LP--Form 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of report: July 22, 2009

(Date of earliest event reported): July 21, 2009

 

 

SUNOCO LOGISTICS PARTNERS L.P.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   1-31219   23-3096839

(State or other jurisdiction

of incorporation)

  (Commission file number)  

(IRS employer

identification number)

 

1735 Market Street, Suite LL, Philadelphia, PA   19103-7583
(Address of principal executive offices)   (Zip Code)

(215) 977-3000

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Item 2.02. Results of Operations and Financial Condition.

On July 21, 2009, Sunoco Logistics Partners L.P. (the “Partnership”) issued a press release announcing its financial results for the second quarter of 2009. A copy of this press release is attached as Exhibit 99.1 and is incorporated herein by reference.

 

Item 7.01. Regulation FD Disclosure.

On July 21, 2009, the Partnership issued a press release announcing its financial results for the second quarter 2009. Additional information concerning the Partnership’s second quarter earnings was presented in a slide presentation to investors during a teleconference on July 22, 2009. A copy of the slide presentation is attached as Exhibit 99.2 and is incorporated herein by reference.

The information in this report, being furnished pursuant to Items 2.02, 7.01, and 9.01 related thereto, of Form 8-K, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, and is not incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

 

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

 

Exhibit No.

 

Exhibit

99.1   Press release dated July 21, 2009 announcing financial results for second quarter 2009.
99.2   Slide presentation given July 22, 2009 during investor teleconference.

Forward-Looking Statement

Statements contained in the exhibits to this report that state the Partnership’s or its management’s expectations or predictions of the future are forward-looking statements. The Partnership’s actual results could differ materially from those projected in such forward-looking statements. Factors that could affect those results include those mentioned in the documents that the Partnership has filed with the Securities and Exchange Commission.


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

SUNOCO LOGISTICS PARTNERS LP.
By:  

Sunoco Partners LLC,

    its General Partner

By:  

/s/    NEAL E. MURPHY

 

Neal E. Murphy

Vice President and Chief Financial Officer

July 22, 2009

Philadelphia, PA


EXHIBIT INDEX

 

Exhibit No.

  

Exhibit

99.1    Press release dated July 21, 2009 announcing financial results for second quarter 2009.
99.2    Slide presentation given July 22, 2009 during investor teleconference.
Press Release

Exhibit 99.1

 

LOGO    News Release
   Sunoco Logistics Partners L.P.
   1735 Market Street
   Philadelphia, Pa. 19103-7583

 

For further information contact:    For release: 5:00 p.m. July 21, 2009
Thomas Golembeski (media) 215-977-6298   
Neal Murphy (investors) 215-977-6322   

No. 16

SUNOCO LOGISTICS PARTNERS L.P. REPORTS A 30 PERCENT INCREASE IN NET INCOME

FOR THE SECOND QUARTER 2009 AND DECLARES SECOND QUARTER DISTRIBUTION

PHILADELPHIA, July 21, 2009 – Sunoco Logistics Partners L.P. (NYSE: SXL) (the “Partnership”) today announced net income for the second quarter ended June 30, 2009 of $66.6 million, or $1.74 per limited partner unit on a diluted basis, compared with $51.3 million, or $1.47 per limited partner unit on a diluted basis, for the second quarter ended June 30, 2008. Operating income for the second quarter ended June 30, 2009 increased by $18.9 million, or 31.9 percent, from the prior year’s second quarter. The improvement was driven by higher lease acquisition results, increased crude oil pipeline and storage revenues and the November 2008 acquisition of the MagTex refined products pipeline and terminals system. The increase in operating income was partially offset by a $3.6 million increase in interest expense associated with higher borrowings for asset acquisitions and organic growth opportunities. Distributable cash flow for the quarter increased 24.8 percent to $71.8 million compared to the second quarter of 2008.

For the six months ended June 30, 2009, net income increased to $147.5 million compared to $88.8 million for the first six months of 2008. Operating income for the first half of 2009 increased $64.2 million, or 61.4 percent, when compared to the prior year period. The increase was the result of significant improvements in the lease acquisition business, contribution from the MagTex acquisition and increased crude oil pipeline and storage revenues. Increased interest expense partially offset the increase in operating income, leading to an improvement of $58.7 million to net income. Distributable cash flow for the first half of 2009 increased 49.5 percent to $161.6 million compared to the prior year period.

Sunoco Partners LLC, the general partner of Sunoco Logistics Partners L.P., declared a cash distribution for the second quarter of 2009 of $1.04 per common partnership unit ($4.16 annualized), which is an 11.2 percent increase over the second quarter of 2008 and a 2.5 percent increase over the prior quarter. The distribution is payable August 14, 2009 to unit holders of record on August 7, 2009. It is the twenty-fourth distribution increase in the past twenty-five quarters.

“Our strong second quarter performance is a combination of stable cash flows in our base business along with crude oil market opportunities resulting from a contango market structure,” said Deborah M. Fretz, President and Chief Executive Officer. “We utilized our crude oil marketing expertise in conjunction with our crude oil pipeline network and the Nederland Terminal to take advantage of the contango market.”

“Additionally, we continue to see forward growth in the base business. Last year’s acquisition of the Texas MagTex refined products system as well as the investment in new tankage at Nederland are contributing to growth in cash flow. Despite continued pressure on refiner margins, and the weak economy, our geographic and business diversification has served us well. We continue to invest in organic growth opportunities like the ongoing Nederland capacity expansion, marketing terminal optimization, the 2009 completion of a pipeline from Nederland to Port Arthur and extensions of the MagTex pipeline system. All of these projects will contribute to future cash flow growth. Our conservative balance sheet and access to liquidity have us well positioned to further expand our business platform.”


Segmented Second Quarter Results

Refined Products Pipeline System

Operating income for the Refined Products Pipeline System increased $2.0 million to $10.6 million for the second quarter ended June 30, 2009 compared to the prior year’s second quarter. Sales and other operating revenue increased by $7.6 million to $31.2 million due primarily to results from the Partnership’s acquisition of the MagTex refined products pipeline and terminals system in November 2008 and increased pipeline fees. Operating expenses increased $4.5 million to $15.3 million for the second quarter 2009 due primarily to the MagTex acquisition and a reduction in refined product operating gains. Depreciation and amortization expense increased for the three months ended June 30, 2009 primarily due to the MagTex acquisition.

Terminal Facilities

Operating income for the Terminal Facilities segment increased by $3.3 million to $21.2 million for the second quarter ended June 30, 2009 compared to the prior year’s second quarter. Sales and other operating revenue increased by $7.6 million to $46.9 million due primarily to increased throughput, higher fees and additional tankage Nederland terminal facility, as well as results from the MagTex acquisition. Other income increased $0.6 million from the prior year’s second quarter as a result of an insurance recovery associated with the Partnership’s refinery terminals. Cost of goods sold and operating expenses increased by $3.7 million to $17.6 million for the second quarter of 2009 due primarily to the MagTex acquisition and lower operating gains. Depreciation and amortization expense increased to $4.6 million for the second quarter of 2009 due to the MagTex acquisition and increased tankage at the Nederland facility. Selling, general and administrative expenses increased to $4.9 million compared to $4.2 million in the prior year period due to increased employee costs, along with an insurance recovery recorded in the second quarter of 2008.

Crude Oil Pipeline System

Operating income for the Crude Oil Pipeline system increased $13.7 million to $46.6 million for the second quarter of 2009 compared to the prior year’s second quarter due primarily to significantly higher lease acquisition results and optimization of crude oil storage capabilities as the crude oil markets remained in contango during the second quarter of 2009. Increased pipeline fees associated with resolution of a $6.8 million prior year tariff adjustment also contributed to the improved operating performance. Other income decreased $1.6 million compared to the prior year’s quarter due primarily to decreased equity income associated with the Partnership’s joint venture interests and an insurance gain recognized during the second quarter of 2008. Selling, general and administrative expenses increased to $5.8 million compared to $5.0 million in the prior year period due to increased general employee costs.

Lower crude oil prices were a key driver of the overall decrease in total revenue, cost of products sold and operating expenses from the prior year’s quarter. The average price of West Texas Intermediate crude oil at Cushing, Oklahoma decreased to $59.61 per barrel for the second quarter of 2009 from $124.00 per barrel for the second quarter of 2008.


Segmented Six Month Results

Refined Products Pipeline System

Operating income for the Refined Products Pipeline System increased $5.9 million to $21.2 million for the six months ended June 30, 2009 compared to the prior year period. Sales and other operating revenue increased by $14.7 million to $62.6 million due primarily to results from the MagTex acquisition described above, along with increased pipeline fees. Other income increased $1.1 million compared to the prior year period as a result of an increase in equity income associated with the Partnership’s joint venture interests. Operating expenses increased by $6.8 million to $29.3 million due primarily to the MagTex acquisition and a reduction in refined products operating gains. Depreciation and amortization expense increased $2.0 million during the first half of 2009 due primarily to the MagTex acquisition. Selling, general and administrative expenses increased to $11.1 million compared to $9.9 million in the prior year period due to increased incentive compensation expense and general employee costs.

Terminal Facilities

Operating income for the Terminal Facilities segment increased by $13.3 million to $42.4 million for the six months ended June 30, 2009 compared to the prior year period. Sales and other operating revenue increased by $14.5 million to $93.2 million due primarily to the increased throughput, higher fees and additional tankage at the Nederland terminal facility, along with the MagTex acquisition. Other income increased $0.6 million from the first six months of 2009 as a result of the insurance recovery discussed above. Cost of goods sold and operating expenses increased by $5.1 million to $32.7 million for the period ended June 30, 2009 due primarily to the MagTex acquisition. Depreciation and amortization expense increased to $9.3 million for the first half of 2009 due to the MagTex acquisition and increased tankage at the Nederland facility. During 2008, a $5.7 million non-cash impairment charge was recognized related to the Partnership’s decision to discontinue efforts to expand LPG storage capacity at its Inkster, Michigan facility. Selling, general and administrative expenses increased $1.0 million to $10.1 million during the first half of 2009 due to increased incentive compensation expense, general employee costs and an insurance recovery recorded in second quarter of 2008.

Crude Oil Pipeline System

Operating income for the Crude Oil Pipeline system increased $45.0 million to $105.2 million for the first six months of 2009 compared to the prior year period due primarily to significantly higher lease acquisition results and increased pipeline fees described above. Other income decreased $2.7 million compared to the prior year’s quarter due primarily to decreased equity income associated with the Partnership’s joint venture interests and an insurance gain recognized during the second quarter of 2008. Selling, general and administrative expenses increased to $11.7 million compared to $10.5 million in the prior year period due to increased incentive compensation expense, along with general employee and legal costs.

Lower crude oil prices were a key driver of the overall decrease in total revenue, cost of products sold and operating expenses from the prior year period. The average price of West Texas Intermediate crude oil at Cushing, Oklahoma decreased to $51.46 per barrel for the first six months of 2009 from $110.98 per barrel for the first six months of 2008.


Other Analysis

Financing Costs

Net interest expense increased $5.5 million to $21.2 million for the six months ended June 30, 2009, compared to the prior year period. The increase was due primarily to higher borrowings associated with the $185.4 million MagTex acquisition, increased contango inventory positions and organic growth projects.

At June 30, 2009, the Partnership had total debt outstanding of $860.3 million, which consisted of $599.4 million of Senior Notes and $260.9 million of borrowings under the Partnership’s credit facilities as compared to $747.6 million at December 31, 2008. The Partnership had available borrowing capacity of $196.6 million under its credit facilities as of June 30, 2009 and a Debt to EBITDA ratio of 2.4x for the twelve months ended June 30, 2009.

In April and May 2009, the Partnership completed a public offering of 2.25 million common units. Net proceeds of $109.5 million were used to reduce outstanding borrowings under the Partnership’s $400 million revolving credit facility and for general partnership purposes. In connection with these offerings, the general partner contributed $2.3 million to the Partnership to maintain its 2.0 percent general partner interest.

Capital Expenditures

Maintenance capital expenditures for the six months ended June 30, 2009 were $9.0 million. The Partnership expects that maintenance capital spending will be approximately $30.0 million for the full year.

Expansion capital expenditures for the first six months of 2009 were $61.4 million compared to $44.5 million for the first six months of 2008. Expansion capital for 2009 includes construction in progress, pursuant to an agreement with Motiva Enterprises LLC, of three crude oil storage tanks at its Nederland terminal and a crude oil pipeline from Nederland to Motiva’s Port Arthur, Texas refinery. Expansion capital also includes refined products terminal optimization and construction of two additional crude oil storage tanks at Nederland, which are expected to be placed into service during the second half of 2009. These two crude oil storage tanks will have a total capacity of approximately 1.2 million shell barrels.


Sunoco Logistics Partners L.P.

Financial Highlights

(in thousands, except units and per unit amounts)

(unaudited)

 

     Three Months Ended
June 30,
    Six Months Ended
June 30,
 
     2009     2008     2009     2008  

Income Statement

        

Sales and other operating revenue

   $ 1,282,697      $ 3,315,421      $ 2,320,730      $ 5,709,810   

Other income

     7,774       8,783       12,539       13,609  
                                

Total Revenues

     1,290,471       3,324,204       2,333,269       5,723,419  
                                

Cost of products sold and operating expenses

     1,184,794       3,240,861       2,108,488       5,564,111  

Depreciation and amortization

     11,508       9,830       23,088       19,489  

Selling, general and administrative expenses

     15,842       14,126       32,916       29,557  

Impairment Charge

     —          —          —          5,674  
                                

Total costs and expenses

     1,212,144       3,264,817       2,164,492       5,618,831  
                                

Operating income

     78,327       59,387       168,777       104,588  

Interest cost and debt expense, net

     12,692        8,928        23,686       17,398  

Capitalized interest

     (1,008     (864     (2,458     (1,636
                                

Net Income

   $ 66,643      $ 51,323      $ 147,549      $ 88,826   
                                

Calculation of Limited Partners’ interest:

        

Net Income

   $ 66,643      $ 51,323      $ 147,549      $ 88,826   

Less: General Partner’s interest (1)

     (12,988     (8,919     (25,517     (16,461
                                

Limited Partners’ interest in Net Income

   $ 53,655      $ 42,404      $ 122,032      $ 72,365   
                                

Net Income per Limited Partner unit (1)

        

Basic

   $ 1.76      $ 1.48      $ 4.12      $ 2.53   
                                

Diluted

   $ 1.74      $ 1.47      $ 4.09      $ 2.51   
                                

Weighted average Limited Partners’ units outstanding:

        

Basic

     30,551,349        28,657,485        29,628,856        28,642,571   
                                

Diluted

     30,756,024        28,840,262        29,829,994        28,823,146   
                                

Capital Expenditure Data:

        

Maintenance capital expenditures

   $ 6,372      $ 4,449      $ 9,022      $ 7,771   

Expansion capital expenditures

     30,281        24,915        61,377        44,724   
                                

Total

   $ 36,653      $ 29,364      $ 70,399      $ 52,495   
                                

 

     June 30,
2009
   December 31,
2008

Balance Sheet Data (at period end):

     

Cash and cash equivalents

   $ 2,000    $ 2,000

Total Debt

     860,324      747,631

Total Partners’ Capital

     848,920      669,900

 

(1) Effective January 1, 2009, the Partnership adopted the requirements of EITF 07-04, “Application of the Two-Class Method under FASB Statement No. 128, Earnings per Share, to Master Limited Partnerships.” EITF 07-04 requires undistributed earnings to be allocated to the limited partner and general partner interests in accordance with the Partnership agreement. Prior period amounts have been restated for comparative purposes. This change resulted in an increase in net income per diluted LP unit of $0.27 and $0.34 for the three and six months ended June 30, 2008 respectively.


Sunoco Logistics Partners L.P.

Earnings Contribution by Business Segment

(in thousands, unaudited)

 

     Three Months Ended
June 30,
   Six Months Ended
June 30,
     2009    2008    2009    2008

Refined Products Pipeline System:

           

Sales and other operating revenue

   $ 31,216    $ 23,608    $ 62,616    $ 47,893

Other income

     3,030      2,971      5,347      4,250
                           

Total Revenues

     34,246      26,579      67,963      52,143
                           

Operating expenses

     15,349      10,882      29,322      22,506

Depreciation and amortization

     3,182      2,242      6,392      4,434

Selling, general and administrative expenses

     5,145      4,866      11,087      9,936
                           

Operating Income

   $ 10,570    $ 8,589    $ 21,162    $ 15,267
                           

Terminal Facilities:

           

Sales and other operating revenues

   $ 46,904    $ 39,272    $ 93,191    $ 78,656

Other Income

     1,391      825      1,392      825
                           

Total Revenues

     48,295      40,097      94,583      79,481
                           

Cost of products sold and operating expenses

     17,613      13,913      32,724      27,601

Depreciation and amortization

     4,613      4,056      9,338      7,993

Selling, general and administrative expenses

     4,878      4,218      10,086      9,093

Impairment Charge

     —        —        —        5,674
                           

Operating Income

   $ 21,191    $ 17,910    $ 42,435    $ 29,120
                           

Crude Oil Pipeline System:

           

Sales and other operating revenue

   $ 1,204,577    $ 3,252,541    $ 2,164,923    $ 5,583,261

Other income

     3,353      4,987      5,800      8,534
                           

Total Revenues

     1,207,930      3,257,528      2,170,723      5,591,795
                           

Cost of products sold and operating expenses

     1,151,832      3,216,066      2,046,442      5,514,004

Depreciation and amortization

     3,713      3,532      7,358      7,062

Selling, general and administrative expenses

     5,819      5,042      11,743      10,528
                           

Operating Income

   $ 46,566    $ 32,888    $ 105,180    $ 60,201
                           


Sunoco Logistics Partners L.P.

Operating Highlights

(unaudited)

 

     Three Months Ended
June 30,
   Six Months Ended
June 30,
     2009    2008    2009    2008

Refined Products Pipeline System: (1)(2)(3)

           

Total shipments (barrel miles per day) (4)

   58,066,789    43,138,696    58,805,197    44,310,512

Revenue per barrel mile (cents)

   0.591    0.601    0.586    0.594

Terminal Facilities:

           

Terminal throughput (bpd):

           

Refined product terminals (3)

   463,611    428,704    461,831    423,662

Nederland terminal

   646,368    526,350    649,501    539,702

Refinery terminals (5)

   599,503    622,011    591,179    648,604

Crude Oil Pipeline System: (1)(2)

           

Crude oil pipeline throughput (bpd)

   670,133    694,124    667,156    684,808

Crude oil purchases at wellhead (bpd)

   181,496    177,414    186,302    174,436

Gross margin per barrel of pipeline throughput (cents) (6)

   80.4    51.2    92.0    49.8

 

(1) Excludes amounts attributable to equity ownership interests in corporate joint ventures.
(2) Effective January 1, 2009, the Partnership realigned its operating segments as discussed above. Prior period amounts have been recast to reflect the current operating segments.
(3) Includes results from the Partnership’s purchase of the MagTex refined products pipeline and terminals system from the acquisition date.
(4) Represents total average daily pipeline throughput multiplied by the number of miles of pipeline through which each barrel has been shipped.
(5) Consists of the Partnership’s Fort Mifflin Terminal Complex, the Marcus Hook Tank Farm and the Eagle Point Dock.
(6) Represents total segment sales minus cost of products sold and operating expenses and depreciation and amortization divided by crude oil pipeline throughput.


Sunoco Logistics Partners L.P.

Non-GAAP Financial Measures

(in thousands, unaudited)

 

Distributable Cash Flow (“DCF”)    Three Months
Ended

June 30, 2009
    Three Months
Ended
June 30, 2008
    Six Months
Ended

June 30, 2009
    Six Months
Ended
June 30, 2008
 

Net Income

   $ 66,643      $ 51,323      $ 147,549      $ 88,826   

Add: Interest cost and debt expense; net

     11,684        8,064        21,228        15,762   

Add. Depreciation and amortization

     11,508        9,830       23,088       19,489  

Add: Impairment charge

     —          —          —          5,674  
                                

EBITDA

     89,835        69,217        191,865        129,751   

Less: Interest cost and debt expense; net

     (11,684     (8,064     (21,228     (15,762

Less: Maintenance Capital

     (6,372     (4,449     (9,022     (7,771

Add: Sunoco reimbursements

     —          782        —          1,851   
                                

Distributable Cash Flow (“DCF”)

   $ 71,779      $ 57,486      $ 161,615      $ 108,069   
                                

 

Earnings before interest, taxes, depreciation

and amortization (“EBITDA”)

   Twelve Months Ended
June 30, 2009
 

Net Income

   $ 273,203   

Add: Interest cost and debt expense, net

     41,255   

Less: Capitalized interest

     (4,677

Add: Depreciation and amortization

     43,653   
        

EBITDA

   $ 353,434   
        

Total Debt as of June 30, 2009

   $ 860,324   

Total Debt to EBITDA Ratio

     2.4x   


An investor call with management regarding the second-quarter results is scheduled for Wednesday morning, July 22 at 9:00 am EDT. Those wishing to listen can access the call by dialing (USA toll free) 1-877-297-3442; International (USA toll) 1-706-643-1335 and request “Sunoco Logistics Partners Earnings Call, Conference Code 18196313”. This event may also be accessed by a webcast, which will be available at www.sunocologistics.com. A number of presentation slides will accompany the audio portion of the call and will be available to be viewed and printed shortly before the call begins. Individuals wishing to listen to the call on the Partnership’s web site will need Windows Media Player, which can be downloaded free of charge from Microsoft or from Sunoco Logistics Partners’ conference call page. Please allow at least fifteen minutes to complete the download.

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 #18196313.

Sunoco Logistics Partners L.P. (NYSE: SXL), headquartered in Philadelphia, is a master limited partnership formed to acquire, own and operate refined product and crude oil pipelines and terminal facilities. The Refined Products Pipeline System consists of approximately 2,200 miles of refined product pipelines located in the Northeastern and Midwestern United States, the recently acquired MagTex Pipeline System, and interests in four refined products pipelines, consisting of a 9.4 percent interest in Explorer Pipeline Company, a 31.5 percent interest in Wolverine Pipe Line Company, a 12.3 percent interest in West Shore Pipe Line Company and a 14.0 percent interest in Yellowstone Pipe Line Company. The Terminal Facilities consist of approximately 9.7 million shell barrels of refined products terminal capacity and approximately 21.2 million shell barrels of crude oil terminal capacity (including approximately 17.8 million shell barrels of capacity at the Texas Gulf Coast Nederland Terminal). The Crude Oil Pipeline System consists of approximately 3,800 miles of crude oil pipelines, located principally in Oklahoma and Texas, a 55.3 percent interest in Mid-Valley Pipeline Company, a 43.8 percent interest in the West Texas Gulf Pipe Line Company and a 37.0 percent interest in the Mesa Pipe Line System. For additional information visit Sunoco Logistics’ web site at www.sunocologistics.com.

Portions of this document constitute forward-looking statements as defined by federal law. Although Sunoco Logistics Partners L.P. believes that the assumptions underlying these statements are reasonable, investors are cautioned that such forward-looking statements are inherently uncertain and necessarily involve risks that may affect the Partnership’s business prospects and performance causing actual results to differ from those discussed in the foregoing release. Such risks and uncertainties include, by way of example and not of limitation: whether or not the transactions described in the foregoing news release will be cash flow accretive; increased competition; changes in demand for crude oil and refined products that we store and distribute; changes in operating conditions and costs; changes in the level of environmental remediation spending; potential equipment malfunction; potential labor issues; the legislative or regulatory environment; plant construction/repair delays; nonperformance by major customers or suppliers; and political and economic conditions, including the impact of potential terrorist acts and international hostilities. These and other applicable risks and uncertainties have been described more fully in the Partnership’s Form 10-Q filed with the Securities and Exchange Commission on May 6, 2009. The Partnership undertakes no obligation to update any forward-looking statements in this release, whether as a result of new information or future events.

- END -

Slide Presentation
Second Quarter 2009
Earnings Conference Call
July 22, 2009
Sunoco Logistics Partners L.P.
Exhibit 99.2


Forward-Looking Statement
You should review this slide presentation in conjunction with the second quarter 2009 earnings
conference
call
for
Sunoco
Logistics
Partners
L.P.,
held
on
July
22
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 #18196313.
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 #18196313.
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 organic growth projects 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-Q,
filed
with the Securities and Exchange Commission on May 6, 2009.  We undertake no obligation to update
publicly any forward-looking statements whether as a result of new information or future events.
2


Q2 2009 Assessment
Net income for the second quarter 2009 increased 29.9% to $66.6 million
compared to $51.3 million in the prior year’s quarter
Earnings per L.P. unit were $1.74 per L.P. unit compared to $1.47 per L.P. unit
in the prior year’s quarter
Distributable cash flow increased to $71.8 million, a 24.8% increase from
second quarter 2008
Increased total distribution to $1.04 ($4.16 annualized) per unit, an 11.2 percent
increase over the prior year’s distribution
Represents the twenty-fourth distribution increase in the past twenty-five
quarters
Debt to EBITDA ratio of 2.4x for the last twelve months
3


Refined Products
Terminals
Crude Oil
$198 MM
$40 MM
$72 MM
Total Operating Income
$310 MM
Total Operating Income
$66 MM
2009 LTM
2002
Western System (pipeline and Lease Acquisition) has grown from 15% to 64% 
of consolidated Operating Income
4
Sunoco Logistics Operating Income
Refined Products
Terminals
Crude Oil
$
10 MM
$ 27 MM
$29 MM


Q2 2009 Financial Highlights
5
($ in millions, unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2009
2008
2009
2008
Sales and operating revenue
1,282.7
$  
3,315.4
$  
2,320.7
$  
5,709.8
$  
Other income
7.8
           
8.8
           
12.5
         
13.6
         
Total revenues
1,290.5
    
3,324.2
    
2,333.2
    
5,723.4
    
Cost of products sold and other operating expenses
1,184.8
    
3,240.9
    
2,108.5
    
5,564.1
    
Depreciation and amortization
11.5
         
9.8
           
23.1
         
19.5
         
Selling, general and administrative expenses
15.9
         
14.1
         
32.9
         
29.5
         
Impairment charge
-
              
-
              
-
              
5.7
           
Total costs and expenses
1,212.2
    
3,264.8
    
2,164.5
    
5,618.8
    
Operating income
78.3
         
59.4
         
168.7
       
104.6
       
Interest cost and debt expense, net
12.7
         
8.9
           
23.7
         
17.4
         
Capitalized interest
(1.0)
          
(0.8)
          
(2.5)
          
(1.6)
          
Net Income
66.6
$       
51.3
$       
147.5
$     
88.8
$       


Q2 2009 Financial Highlights
6
(amounts in millions, except unit and per share unit amounts, unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2009
2008
2009
2008
Calculation of Limited Partners' interest:
Net Income
66.6
$        
51.3
$        
147.5
$      
88.8
$        
Less: General Partners' interest
(13.0)
(8.9)
(25.5)
(16.5)
Limited Partners' interest in Net Income
53.6
$        
42.4
$        
122.0
$      
72.3
$        
Net Income per Limited Partner unit:
Basic
(1)
1.76
$        
1.48
$        
4.12
$        
2.53
$        
Diluted
(1)
1.74
$        
1.47
$        
4.09
$        
2.51
$        
Weighted Average Limited Partners' units
outstanding (in thousands):
Basic
30,551
28,657
29,629
28,643
Diluted
30,756
28,840
29,830
28,823
(1) Effective
January
1,
2009,
the
Partnership
adopted
the
requirements
of
EITF
07-04,
“Application
of
the
Two-Class
Method
under
FASB
Statement
No.
128,
Earnings
per
Share,
to
Master
Limited
Partnerships.”
EITF
07-04
requires
undistributed
earnings
to
be
allocated
to
the
limited
partner
and
general
partner
interests
in
accordance
with
the
Partnership
agreement.
Prior
period
amounts
have
been
restated
for
comparative
purposes.
This
change
resulted
in
an
increase
in
net
income
per
diluted
LP
unit
of
$0.27
and
$0.34
for
the
three
and
six
months
ended
June
30,
2008,
respectively.


Refined Products Pipeline System
7
(amounts in millions, unless otherwise noted, unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2009
(4)
2008
(3)
2009
(4)
2008
(3)
Financial Highlights
Sales and operating revenue
31.2
$      
23.6
$      
62.6
$      
47.9
$      
Other income
3.0
3.0
5.4
4.2
Total revenues
34.2
26.6
68.0
52.1
Operating expenses
15.3
10.9
29.3
22.5
Depreciation and amortization
3.2
2.2
6.4
4.4
Selling, general and administrative expenses
5.1
4.9
11.1
9.9
Operating income
10.6
$      
8.6
$        
21.2
$      
15.3
$      
Operating
Highlights
(1)
Total
shipments
(mm
barrel
miles
per
day)
(2)
58.1
43.1
58.8
44.3
Revenue per barrel mile (cents)
0.591
0.601
0.586
0.594
(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.
(3) On January 1, 2009 the reporting segments were realigned. All prior period reporting segment results were recast for comparative purposes.
(4) Includes
results
from
the
Partnership's
purchase
of
the
MagTex
refined
products
terminals
from
the
date
of
acquisition.


Terminal Facilities
8
(amounts in millions, unless otherwise noted, unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2009
2008
2009
2008
Financial Highlights
Sales and operating revenue
46.9
$      
39.3
$      
93.2
$      
78.7
$      
Other income
1.4
0.8
1.4
0.8
Total revenues
48.3
40.1
94.6
79.5
Cost of goods sold and operating expenses
17.6
13.9
32.7
27.6
Depreciation and amortization
4.6
4.1
9.4
8.0
Selling, general and administrative expenses
4.9
4.2
10.1
9.1
Impairment charge
-
-
-
5.7
Operating income
21.2
$      
17.9
$      
42.4
$      
29.1
$      
Operating Highlights
Terminal throughput (000's bpd)
Refined
product
terminals
(2)
463.6
428.7
461.8
423.7
Nederland terminal
646.4
526.4
649.5
539.7
Refinery
terminals
(1)
599.5
622.0
591.2
648.6
(1) Consists of the Partnership Fort Mifflin Terminal Complex, the Marcus Hook Tank Farm and the Eagle Point Dock.
(2)
Includes
results
from
the
Partnership's
purchase
of
the
MagTex
refined
products
terminals
from
the
date
of
acquisition.


Crude Oil Pipeline System
9
(amounts in millions, unless otherwise noted, unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2009
2008
(3)
2009
2008
(3)
Financial Highlights
Sales and operating revenue
1,204.6
3,252.5
2,164.9
5,583.3
Other income
3.3
5.0
5.8
8.5
Total revenues
1,207.9
3,257.5
2,170.7
5,591.8
Cost of products sold and other operating expenses
1,151.8
3,216.0
2,046.4
5,514.0
Depreciation and amortization
3.7
3.6
7.3
7.1
Selling, general and administrative expenses
5.8
5.0
11.8
10.5
Operating income
46.6
$      
32.9
$      
105.2
$    
60.2
$      
Operating
Highlights
(1)
Terminal throughput (000's bpd)
Crude oil pipeline throughput (000's bpd)
670.1
694.1
667.2
684.8
Crude oil purchases at wellhead (000's bpd)
181.5
177.4
186.3
174.4
Gross
margin
per
barrel
of
pipeline
throughput
(cents)
(2)
80.4
51.2
92.0
49.8
(1) Excludes amounts attributable to equity ownership interests in the corporate joint ventures.
(2) 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.
(3) On January 1, 2009 the reporting segments were realigned. All prior period reporting segment results were recast for comparative purposes.


Q2 2009 Financial Highlights
10
( $ in millions, unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2009
2008
2009
2008
Capital Expenditure Data:
Maintenance capital expenditures
6.4
$              
4.4
$              
9.0
$              
7.8
$              
Expansion capital expenditures
30.3
24.9
61.4
44.7
Total
36.7
$           
29.3
$           
70.4
$           
52.5
$           
June 30,
December 31,
2009
2008
Balance Sheet Data (at period end):
Cash and cash equivalents
2.0
$              
2.0
$              
Toatl
debt
860.3
747.6
Total Partners' Capital
848.9
669.9


Q2 2009 Financing Update
11
($ in millions, unaudited)
Balance as of:
June 30, 2009
December 31, 2008
Revolving
Credit
Facilities
(1)
:
$400 million -
due November 2012
(2)
229,723
$                       
323,385
$                       
$62.5 million -
due September 2011
31,250
-
Senior Notes:
7.25% Senior Notes -
due 2012
250,000
250,000
6.125% Senior Notes -
due 2016
175,000
175,000
8.75% Senior Notes -
due 2014
175,000
-
Less: unamortized bond discount
(649)
(754)
Total Debt
860,324
$                     
747,631
$                     
(1) As of June 30, 2009, the Partnership has unutilized borrowing capacity of $196.6 million under its
revolving credit facilities.
(2) In April and May 2009, the Partnership issued 2.25 million common units representing a limited
partnership interest in Sunoco Logistics Partners LP.  Net proceeds of approximately $109.5 million
were used to reduce outstanding borrowings under the $400 million revolving credit facility and
for general partnership purposes.


Non-GAAP Financial Measures
($ in thousands, unaudited)
12
Three Months Ended
Six Months Ended
June 30,
June 30,
2009
2008
2009
2008
Net Income
66,643
$          
51,323
$          
147,549
$        
88,826
$          
Add: Interest cost and debt expense, net
11,684
            
8,064
               
21,228
            
15,762
            
Add: Depreciation and amortization
11,508
            
9,830
               
23,088
            
19,489
            
Add: Impairment charge
-
                  
-
                  
-
                  
5,674
               
EBITDA
89,835
$          
69,217
$          
191,865
$        
129,751
$        
Less: Interest expense
11,684
            
8,064
               
21,228
            
15,762
            
Less: Maintenance capital
6,372
               
4,449
               
9,022
               
7,771
               
Add: Sunoco reimbursements
-
                  
782
                  
-
                  
1,851
               
Distributable Cash Flow ("DCF")
71,779
$          
57,486
$          
161,615
$        
108,069
$        


(1) In this release, the Partnership’s EBITDA and DCF references are not presented in accordance with generally accepted accounting principles (“GAAP”) and
are not intended to be used in lieu of GAAP presentations of net income.  Management of the Partnership believes EBITDA and DCF information enhance an
investor's understanding of a business’ ability to generate cash for payment of distributions and other purposes.  In addition, EBITDA is also used as a measure
in the Partnership's revolving credit facilities in determining its compliance with certain covenants.  However, there may be contractual, legal, economic or other
reasons which may prevent the Partnership from satisfying principal and interest obligations with respect to indebtedness and may require the Partnership to
allocate funds for other purposes.  EBITDA and DCF do not represent and should not be considered an alternative to net income or operating income as
determined under United States GAAP and may not be comparable to other similarly titled measures of other businesses.
Non-GAAP Financial Measures
($ in thousands, unaudited)
13
Earnings before interest, taxes, depreciation
Twelve months ended
and amortization ("EBITDA")
June 30, 2009
Net Income
273,203
$                     
Add: Interest cost and debt expense
41,255
                          
Less: Capitalized interest
(4,677)
                           
Add: Depreciation and amortization
43,653
                          
EBITDA
353,434
$                     
Total Debt as of June 30, 2009
860,324
$                     
Total Debt to EBITDA Ratio
2.4
                                
Non-GAAP Financial Measures


Refined Products Pipeline System Recast
(amounts in millions, unless otherwise noted, unaudited)
14
43.1
0.601
45.5
0.587
Total
shipments
(mm
barrel
miles
per
day)
(3)
Revenue per barrel mile (cents)
Operating Highlights
(1)(2)
10.9
2.2
4.9
$    8.6
11.6
2.2
5.1
$     6.7
Operating expenses
Depreciation and amortization
Selling, general and administrative expenses
Operating income
$    23.6
3.0
26.6
$     24.3
1.3
25.6
Sales and other operating revenue
Other income
Total revenues
Financial Highlights
(1)
Q2 2008
Q1 2008
(1) On January 1, 2009 the reporting segments were realigned.  All prior period reporting segment results were recast for comparative purposes.
(2) Excludes amounts attributable to equity ownership interests in the corporate joint ventures.
(3) Represents total average daily pipeline throughput multiplied by the number of miles of pipeline through which each barrel has
been shipped.
Q3 2008
$    25.7
2.2
27.9
11.1
2.2
5.1
$    9.5
Q4 2008
14.8
2.7
4.7
$    9.7
$    29.9
2.0
31.9
43.8
0.638
55.0
0.590


Crude Oil Pipeline System Recast
(amounts in millions, unless otherwise noted, unaudited)
15
694.1
177.4
51.2
675.5
171.5
48.5
Crude oil pipeline throughput (000’s bpd)
Crude oil purchases at wellhead (000’s bpd)
Gross
margin
per
barrel
of
pipeline
throughput
(cents)
(3)
Operating
Highlights
(1)(2)
3,216.0
3.6
5.0
$    32.9
2,298.0
3.5
5.5
$     27.3
Operating expenses
Depreciation and amortization
Selling, general and administrative expenses
Operating income
$ 3,252.5
5.0
3,257.5
$2,330.7
3.6
2,334.3
Sales and other operating revenue
Other income
Total revenues
Financial
Highlights
(1)
Q2 2008
Q1 2008
(1) On January 1, 2009 the reporting segments were realigned.  All prior period reporting segment results were recast for comparative purposes.
(2) Excludes amounts attributable to equity ownership interests in the corporate joint ventures.
(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.
Q3 2008
$ 2,763.2
4.0
2,767.2
2,723.6
3.6
5.4
$    34.6
Q4 2008
1,435.7
3.6
5.3
$    57.8
$ 1,500.0
2.4
1,502.4
649.3
176.7
57.2
711.6
185.0
93.4