Sunoco (SUN) Investor Presentation summary

Investment highlights and strategic positioning

• Largest independent fuel distributor in the Americas, distributing over 15 billion gallons annually across 32 countries and territories, with a network of ~11,000 contracted locations and more than 160 owned terminals.

• Recent acquisition of Parkland Corporation has strengthened the foundation, adding midstream assets in the Greater Caribbean, Canada, and the U.S., and is expected to deliver over 10% accretion to distributable cash flow per unit by year three.

• Diversified portfolio spans fuel distribution, midstream, and refinery operations, supporting stable cash flow and consistent value creation for unitholders.

• Consistent growth in distributable cash flow per unit for eight consecutive years, with a ~7% CAGR from 2017 to TTM 2Q25.

• Attractive distribution yield of ~7%, with a history of maintaining or increasing distributions since IPO in 2012 and a strong balance sheet with ample liquidity.

Business segments and operational strengths

• Fuel distribution segment benefits from scale, proprietary brands, and a diverse network, enabling stable margins and long-term supply contracts.

• Terminal operations span the U.S., Europe, Greater Caribbean, Canada, and Hawaii, with vertical integration maximizing utilization and supply cost optimization.

• Pipeline systems include ~6,000 miles each of refined product and crude oil pipelines, plus 2,000 miles of ammonia pipeline, with joint ventures enhancing efficiency in key regions.

• Burnaby refinery in British Columbia provides a price-advantaged supply and consistently delivers positive cash flow, accounting for ~5% of total AEBITDA in 2024.

• Geographic diversity across the U.S., Canada, Greater Caribbean, and Europe creates stability and growth opportunities, with higher sustained margins in select markets.

Financial performance and capital allocation

• Market capitalization of ~$11 billion and enterprise value of ~$26 billion, with pro forma revenue of ~$41 billion.

• Maintained a distribution coverage ratio >1.8x since 2022, with annual distribution increases and a transition to quarterly increases in 2025, targeting at least 5% annual growth.

• Strong credit profile, multiple rating upgrades since 2017, and a commitment to a 4.0x long-term leverage target.

• Proven capital allocation strategy, deploying $19 billion in growth and acquisition capital since 2017, increasing DCF per unit by ~60%.

• Outperformed the S&P 500 and AMZI in total return since 2017, while trading at attractive valuations and maintaining a top decile dividend yield.