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WELCOMETO OUR
2012 CUSTOMER CONFERENCE
WHERE WE VALUEOUR CUSTOMERS!
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OPENING REMARKS
MIKE SCHMIDTMANAGER, PRODUCT MOVEMENT
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SXL LEGAL DISCLAIMERStatements 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 anduncertainties that may affect our business and cause actual results to differ materiallyfrom those discussed in this presentation. Such risks and uncertainties includeeconomic, business, competitive and/or regulatory factors affecting our business, aswell as uncertainties related to the outcomes of pending or future litigation. SunocoLogistics Partners L.P. has included in its Annual Report on Form 10-K for the yearended December 31, 2011 cautionary language identifying important factors (thoughnot necessarily all such factors) that could cause future outcomes to differ materiallyfrom those set forth in the forward-looking statements. For more information aboutthese 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 tosupplement, not substitute for, comparable GAAP measures. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided in the appendixto this presentation. You should consider carefully the comparable GAAP measuresand the reconciliations to those measures provided in this presentation.
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OVERVIEW OFSUNOCO LOGISTICS SYSTEMS
Pipeline – George DikemanNederland – Brian Hudgins
Butane – Laura OlahEnergy Transfer – Luke Fletcher
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CRUDE OIL PIPELINE SYSTEMg Approximately 4,900 miles of crude oil trunk lines located in
the Southwest and Midwest U.S.
0 Approximately 500 miles of gathering lines
g 60.3% interest in West Texas Gulf Pipeline, a 580-mile crude oil pipeline
g 91.0% interest in Mid-Valley Pipeline, a 990-mile crude oil pipeline
g 37.0% undivided interest in Mesa Pipeline
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REFINED PRODUCTS PIPELINE SYSTEM Refined products pipeline system (approximately 2,500
miles), located in the Northeast, Midwest and Southwest U.S.
Equity interest in four product pipelines
0 Explorer (9.4%)0 West Shore (17.1%)0 Wolverine (31.5%)0 Yellowstone (14.0%)
83.8% interest in Inland Pipeline, a 350-mile refined products pipeline system
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MAJOR ORGANIC PROJECTS IN 2012g Successful Open Seasons
0 West Texas Crude expansion (crude oil)
0 Permian Express Phase I (crude oil)
0 Allegheny Access (refined products)
0 Mariner West (natural gas liquids)
0 Mariner East (natural gas liquids)
g Actively developing Permian Express Phase II (crude oil)
g Continued development and expansion at Eagle Point Terminal
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NEDERLAND OVERVIEWBRIAN HUDGINS
TERMINAL SUPERVISOR
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NEDERLAND MARINE TERMINAL
68 Crude Storage Tanks 70 Lube Storage Tanks Provide Bunker Service Railcar offload Facility 5 Ship Docks 3 Barge Docks
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CRUDE STORAGE CAPACITY
• 68 Crude Oil Storage Tanks
Total Shell Capacity ~21.6Mbbls.
Max Fill Capacity ~18.1Mbbls.
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RAILCAR FACILITY
Able to receive a 112 railcar unit train Able to offload unit train in ~ 4 days
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RAILCAR CAPABILITIES 30 Crude unloading
spots. 6 positive
displacement pumps rated at 1,050 bbl/hr each.
4.5 hr pump time for 30 cars.
Daily switches via KCS.
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SUNOCONEDERLANDTERMINAL
Midland
To Big Springs
SXL 10"
From Patoka IL.
Canadian Crude
To Longview Mid-Valley PL to Ohio, Red River PL to Cushing, McMurry PL to Tyler
ETX
10”
To Wortham / Corsicana 1.Sunoco PL to Ringold and Wichita Falls Basin to Cushing To Longview 2.Mid-Valley PL to Ohio Red river PL to Cushing, McMurry PL to Tyler
WTG
26”
Conoco Phillips Lake Charles
Citgo Lake Charles24” Exxon Mobil
Beaumont
5 Ship Docks 3BargeDocks
DOE 42” to W. Hackberry
Shell 22”
Total Pt Arthur
SPR Big Hill
20”
Motiva Pt ArthurValero
Port Arthur
DO
E 3
6” Lucas
32”
4-V
aler
o 10
”
ExxonMobil Baytown
Shell 20”
OTI Houston
OTI 24”
Shell Deer Park
Lyondell Houston
Shell PL East Houston
Shell 16”
BP26”
Texas City Refineries
Terminal Distribution System—Currently 18 Connections
OCS
SXL
12”
XOM 20”
Ships/Barges
SXL 8” Orange 6”
East TX Production
Proposed Lake Charles
Valero
Petrobras
Citgo 20” Calcasieu Lake Charles
Receipts
Deliveries
Bi-Directional
Keystone
Pipeline
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FIVE SHIP DOCKS &
THREE BARGE DOCKS
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BUTANE OVERVIEWLAURA OLAH
BUSINESS DEVELOPMENT
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Butane Blending Program
SXL owns and operates the only U.S. patented Automated Butane Blending System
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WHY BLEND?
Distribution System Many products
Complex refining
Long-haul pipelines
Gasoline Volatility SpecificationsGeographically diverse
Multiple seasonal changes
Pipeline vs Retail Specifications
1/1
1/19 2/
62/
243/
14 4/1
4/19 5/
75/
256/
126/
307/
18 8/5
8/23
9/10
9/28
10/1
611
/311
/21
12/9
12/2
78.0
8.5
9.0
9.5
10.0
10.5
11.0
11.5
12.0
12.5
13.0
13.5
14.0
14.5
15.0
15.5
TN RVP SPEC Product In Tank
Blend period
RV
P
Butane Blend OpportunityDirect to rack or pipelineMaximizing Profitability
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Standard & Customized
Design
Financial Options
Butane Supply
Regulatory Compliance
Proprietary Blending Systems
Customer Service
Full, Turn-Key Program
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Tailored Design
Complex design and permitting
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Designed for Performance
Commitment to safety & reliability
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Commitment to Readiness
Training and Commencement
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Butane Supply
Certification & Compliance
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Operational Excellence
Focus on optimization
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Communication & Reporting
Dynamic Analysis, Trending
Daily Report
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ENERGY TRANSFER OVERVIEWLUKE FLETCHER
VP, COMMERCIAL OPERATIONS
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THE CHANGING ENVIRONMENT OF PIPELINE SAFETY REGULATION
LARRY SHELTONMANAGER, ASSET INTEGRITY
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BACKGROUND
High Profile Events
NTSB/Congress Criticism of PHMSA
Secretary LaHood’s Call to Action
Pipeline Safety, Regulatory Certainty, and
Jobs Creation Act of 2011
Performance-Based Regulations
Mixed Results in 10 Years of IMP Rule
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SO, WHAT’S COMING? ……
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ASSET INTEGRITY
Low Stress Phase II Implementation
Gathering
New Repair Requirements
Expand Requirements beyond HCAs
More ILI Tools
Non-Pipeline Facilities
“Fitness for Service”
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DESIGN & CONSTRUCTION
Mill QC
Construction Inspections Advance Notice
Cost Recovery
Operator Qualification
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DATA REQUIREMENTS
Records Verification
ILI as an As-Built Verification Tool
Sophisticated Data Integration
More Data Layers for Risk Modeling
Risk Quantification (vs. Qualification)
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DAMAGE PREVENTION
Evaluate State One Call Programs
Face-to-Face with Emergency Responders
Train & Drill with Emergency Responders
NTSB Putting Onus on Agencies to Seek Out
Training from Operators
Closer Liaison with 911
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REGULATORS
More PHMSA Inspectors
More State Inspectors
More Inspections
Broader Interpretations
Stricter Enforcement
Higher Penaltie$
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BOTTOM LINE
Improved Technology
More Repairs & MOP Restrictions
Higher Expectations
Greater Scrutiny
Tougher Penalties
Smoother Sailing
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