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Sunoco Logistics Reports Earnings for the Third Quarter 2013 and Fourth Consecutive 5 Percent Quarterly Distribution Increase

  Sunoco Logistics Reports Earnings for the Third Quarter 2013 and Fourth
  Consecutive 5 Percent Quarterly Distribution Increase

Business Wire

PHILADELPHIA -- November 5, 2013

Sunoco Logistics Partners L.P. (NYSE: SXL) (the “Partnership”) today announced
its results for the third quarter ended September 30, 2013. Adjusted EBITDA
for the three months ended September 30, 2013 decreased $23 million to $181
million compared to the third quarter 2012. Net income attributable to
partners for the third quarter 2013 was $78 million ($0.45 per limited partner
unit diluted), compared with $134 million ($1.09 per limited partner unit
diluted) for the third quarter 2012. Additional highlights include:

  *Distributable cash flow of $121 million for the third quarter 2013
  *Twenty-two percent distribution increase to $2.52 (annualized), compared
    to the third quarter 2012 of $2.07 (annualized)
  *Ended the quarter with a Debt to Adjusted EBITDA ratio of 2.5x
  *Completed a successful open season for Granite Wash Extension crude oil
    pipeline project
  *Commenced an open season for the Permian Express 2 crude oil pipeline
    project

“As we continue to execute our growth plan, new assets are generating
increasing ratable, long-term cash flow to help offset the recent market
decline in our crude margin business,” said Michael J. Hennigan, president and
chief executive officer. “The third quarter was an excellent quarter
financially for our base, ratable businesses. But as we predicted, softening
market conditions in our crude oil acquisition and marketing business reduced
our market related earnings.”

On the Partnership's recently announced distribution, Hennigan added, “We were
pleased to announce our fourth consecutive 5 percent quarter over quarter
increase. This also represents the thirty-fourth successive quarter that we
have increased our distribution. We are committed to growing stable, ratable
cash flow for the Partnership and distributing that cash to our owners.”

As an update to recently announced open seasons, Hennigan said, “We are
pleased to announce our tenth successful open season since 2011 as our Granite
Wash Extension pipeline has received sufficient commitments to proceed as
planned. This pipeline will provide Granite Wash producers the ability to
deliver their rapidly growing crude production to various markets and
refineries in Texas, on the Gulf Coast and in the MidContinent.”

Hennigan continued, “In addition, our Permian Express 2 open season is
currently in progress. This pipeline will provide needed takeaway capacity
from the rapidly developing Permian Basin region to multiple markets on the
Gulf Coast, including our Nederland terminal, and in the MidContinent.
Production forecasts remain very robust for the Permian Basin and we believe
our Permian Express 2 provides a very attractive, flexible, and economic
transportation option for producers.”

On the Partnership’s 2013 capital program, Hennigan noted, “With the success
of our 2013 open seasons: Mariner South, Eaglebine Express and Granite Wash
Extension, we have increased our current year expansion capital forecast to
approximately $900 million, excluding the $60 million acquisition of the
Marcus Hook facility which we continue to convert to a world-class natural gas
liquid terminal only 300 miles from the Marcellus and Utica shales.”


DETAILS OF THIRD QUARTER SEGMENT ADJUSTED EBITDA

                                                  Three Months Ended
                                               
                                                  September 30,
                                                  2013    2012    Variance
                                                  (in millions)
Crude Oil Pipelines                               $ 98      $ 73      $  25
Crude Oil Acquisition and Marketing                 18        54         (36 )
Terminal Facilities                                 47        52         (5  )
Refined Products Pipelines                         18       25        (7  )
Adjusted earnings before interest, taxes,
depreciation and amortization expense             $ 181     $ 204     $  (23 )
(“Adjusted EBITDA”) ^(1)
                                                                             

       The Partnership’s definition of Adjusted EBITDA was revised beginning
       in the fourth quarter 2012. Prior period results have been recast to
^(1)  conform to the current presentation. For a detailed definition of the
       components included within Adjusted EBITDA, see the Non-GAAP Financial
       Measures table for a reconciliation to the applicable generally
       accepted accounting principle (“GAAP”) metric.
       

Crude Oil Pipelines

Adjusted EBITDA for the Crude Oil Pipelines segment increased $25 million due
primarily to higher throughput volumes largely attributable to expansion
projects which began operating during the second quarter of 2013, strong
demand for West Texas crude oil and higher pipeline tariffs. These
improvements were partially offset by higher operating expenses which included
lower pipeline operating gains, increased utility expenses associated with
higher throughput volumes and higher maintenance costs.

Crude Oil Acquisition and Marketing

Adjusted EBITDA for the Crude Oil Acquisition and Marketing segment decreased
$36 million primarily due to lower crude oil margins driven by crude
differentials which have contracted relative to the prior year period. This
impact was partially offset by increased crude oil volumes resulting from the
expansion in our crude oil trucking fleet and higher market demand.

Terminal Facilities

Adjusted EBITDA for the Terminal Facilities segment decreased $5 million due
primarily to decreased operating results from the Partnership's refined
products acquisition and marketing activities, which in 2012 included prior
period inventory adjustments, and volume reductions at the Partnership’s
refined products terminals. Partially offsetting these decreases were improved
results from the Partnership’s Eagle Point and Nederland terminals and
contributions from the Marcus Hook facility.

Refined Products Pipelines

Adjusted EBITDA for the Refined Products Pipelines segment decreased $7
million to $18 million for the third quarter 2013 compared to the prior year
period. Results for 2012 included a $6 million non-recurring gain recognized
by one of the Partnership's joint venture interests. Excluding this item,
Adjusted EBITDA decreased $1 million compared to the prior year period. Higher
integrity management costs and increased selling, general and administrative
expenses were largely offset by higher pipeline tariffs.

Financing Update

Net interest expense increased $2 million to $22 million for the third quarter
2013 compared to the prior year period. The current period includes $5 million
related to the non-cash amortization of the fair value adjustments recorded on
the Partnership’s long-term debt. Excluding this amount, net interest expense
increased $7 million compared to the prior year period primarily attributable
to higher interest expense associated with the Partnership’s $700 million
senior notes offering in January 2013. At September 30, 2013, the
Partnership’s total debt balance was $2.18 billion, excluding $126 million of
unamortized fair value adjustments. At September 30, 2013, the Partnership had
available borrowing capacity of $550 million under its revolving credit
facilities and $182 million of advances to affiliated companies, which
represents the Partnership’s cash held by Sunoco in accordance with the
Partnership’s participation in Sunoco’s cash management program.


CAPITAL EXPENDITURES

                                     Nine Months Ended
                                  
                                     September 30,
                                     2013      2012
                                     (in millions)
Expansion capital expenditures       $  598      $ 206
Maintenance capital expenditures        37         29
Major acquisitions                     60        —
Total                                $  695      $ 235
                                                   

The Partnership’s expansion capital spending for the nine months ended
September 30, 2013 included projects to: invest in the Partnership’s crude oil
infrastructure by increasing its pipeline capabilities through previously
announced expansion capital projects in Texas and Oklahoma; expand upon
refined products acquisition and marketing services; upgrade the service
capabilities at the Eagle Point and Nederland terminals; and invest in the
previously announced Mariner and Allegheny Access projects. Major acquisitions
for the nine months ended September 30, 2013 included the Partnership's
acquisition of the Marcus Hook Facility from Sunoco for $60 million. The
Partnership expects to invest approximately $900 million in expansion capital
during 2013, excluding major acquisitions, which will be largely funded by the
$700 million senior notes offering in January 2013 and excess operating cash
flows. Maintenance capital spending is estimated to be approximately $65
million in 2013.

INVESTOR CALL

The Partnership will host a conference call regarding third quarter results on
Wednesday, November 6, 2013 at 8:30am ET (7:30am CT). Those wishing to listen
can access the call by dialing (USA toll free) 1-800-369-2171; International
(USA toll) 1-517-308-9315 and request “Sunoco Logistics Partners Earnings
Call, Conference Code: Sunoco Logistics.” 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. 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 1-800-419-2889. International callers
should dial 1-203-369-0767.

ABOUT SUNOCO LOGISTICS

Sunoco Logistics Partners L.P. (NYSE: SXL), headquartered in Philadelphia, is
a master limited partnership that owns and operates a logistics business
consisting of a geographically diverse portfolio of complementary crude oil
and refined products pipeline, terminalling, and acquisition and marketing
assets. SXL’s general partner is a consolidated subsidiary of Energy Transfer
Partners, L.P. (NYSE: ETP). For more information, visit the Sunoco Logistics
Partners L.P. web site at www.sunocologistics.com.

This release is intended to be a qualified notice under Treasury Regulation
Section1.1446-4(b). Brokers and nominees should treat one hundred percent
(100%)of distributions by Sunoco Logistics Partners L.P. to non-U.S.
investors as being attributable to income that is effectively connected with a
United States trade or business. Accordingly, distributions by Sunoco
Logistics Partners L.P. to non-U.S. investors are subject to federal income
tax withholding at the highest applicable effective tax rate.

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 Annual
Report on Form 10-K filed with the Securities and Exchange Commission on
March1, 2013, and in the Partnership’s subsequent Form 10-Q and Form 8-K
filings. The Partnership undertakes no obligation to update any
forward-looking statements in this release, whether as a result of new
information or future events.


Sunoco Logistics Partners L.P.
Financial Highlights
(unaudited)


                            Three Months Ended September 30,
                              2013             2012             Variance
                              (in millions, except units and per unit amounts)
Income Statement:
Sales and other operating     $  4,528          $  3,207          $  1,321 
revenue
Total revenues                   4,528              3,207              1,321
Cost of products sold            4,287              2,958              1,329
Operating expenses               36                 39                 (3    )
Selling, general and             33                 30                 3
administrative expenses
Depreciation and                68               26               42    
amortization expense
Total costs and expenses         4,424              3,053              1,371
Operating Income                 104                154                (50   )
Interest cost and debt           (25    )           (24    )           (1    )
expense, net
Capitalized interest             3                  4                  (1    )
Other income                    7                11               (4    )
Income Before Provision          89                 145                (56   )
for Income Taxes
Provision for income            (8     )          (8     )          —     
taxes
Net Income                       81                 137                (56   )
Less: Net Income
attributable to                 (3     )          (3     )          —     
noncontrolling interests
Net Income attributable       $  78             $  134            $  (56   )
to Partners
                                                                             
Calculation of Limited
Partners’ interest:
Net Income attributable       $  78              $  134             $  (56   )
to Partners
Less: General Partner’s         (31    )          (21    )          (10   )
interest
Limited Partners’             $  47             $  113            $  (66   )
interest in Net Income
                                                                             
Net Income per Limited
Partner unit:
Basic                         $  0.45           $  1.09   
                                                                             
Diluted                       $  0.45           $  1.09   
                                                                             
Weighted Average Limited
Partners’ units
outstanding:
Basic                           103.8            103.6  
                                                                             
Diluted                         104.3            103.9  
                                                                             


Sunoco Logistics Partners L.P.
Financial Highlights
(unaudited)


                            Nine Months Ended September 30,
                              2013              2012             Variance
                              (in millions, except units and per unit amounts)
Income Statement:
Sales and other operating     $  12,351           $  9,921           $ 2,430
revenue
Gain on divestments and         —                 11              (11   )
related matters
Total revenues                   12,351              9,932             2,419
Cost of products sold            11,534              9,214             2,320
Operating expenses               87                  97                (10   )
Selling, general and             100                 86                14
administrative expenses
Depreciation and                 196                 76                120
amortization expense
Impairment charge and           —                 (1     )         1     
related matters
Total costs and expenses         11,917              9,472             2,445
Operating Income                 434                 460               (26   )
Interest cost and debt           (72     )           (73    )          1
expense, net
Capitalized interest             14                  8                 6
Other income                    16                18              (2    )
Income Before Provision          392                 413               (21   )
for Income Taxes
Provision for income            (23     )          (24    )         1     
taxes
Net Income                       369                 389               (20   )
Less: Net Income
attributable to                 (8      )          (8     )         —     
noncontrolling interests
Net Income attributable       $  361             $  381            $ (20   )
to Partners
                                                                             
Calculation of Limited
Partners’ interest:
Net Income attributable       $  361              $  381             $ (20   )
to Partners
Less: General Partner’s         (88     )          (55    )         (33   )
interest
Limited Partners’
interest in Net Income        $  273             $  326            $ (53   )
^(1)
                                                                             
Net Income per Limited
Partner unit:
Basic                         $  2.63            $  3.15   
                                                                             
Diluted                       $  2.62            $  3.14   
                                                                             
Weighted Average Limited
Partners’ units
outstanding:
Basic                           103.8             103.5  
                                                                             
Diluted                         104.3             103.9  
                                                                             

     
^(1)   Includes interest in net income attributable to Class A units, which
       were converted to common units in July 2012.
       


Sunoco Logistics Partners L.P.
Financial Highlights
(unaudited)
                                                          
                                      September 30, 2013    December 31, 2012
                                      (in millions)
Balance Sheet Data:
Cash and cash equivalents             $       2             $      3
                                                             
Advances to affiliated companies      $       182           $      56
                                                             
Revolving credit facilities ^(1)      $       35             $      139
Senior Notes                          2,150                  1,450
Unamortized fair value adjustments    126                   143
^(2)
Total Debt                            $       2,311         $      1,732
                                                             
Sunoco Logistics Partners L.P.        $       6,195          $      6,072
Partners’ equity
Noncontrolling interests              124                   123
Total Equity                          $       6,319         $      6,195
                                                             
Debt to Adjusted EBITDA Ratio:
Total Debt                            $       2,311
Less: Unamortized fair value          (126               )
adjustments ^(2)
                                      $       2,185      
                                                             
Adjusted EBITDA (Twelve months        880
ended September 30, 2013)
Debt to Adjusted EBITDA Ratio         2.5                x
                                                             

^(1)  As of September 30, 2013, the Partnership had available borrowing
       capacity of $550 million under its revolving credit facilities.
       In connection with the application of push-down accounting, the
       Partnership’s senior notes were adjusted to fair value upon the closing
       of the acquisition of the Partnership’s general partner by Energy
^(2)   Transfer Partners, L.P. on October 5, 2012. At September 30, 2013,
       there was $126 million of unamortized fair value adjustments remaining.
       Interest expense for the three and nine months ended September 30, 2013
       is net of $5 and $17 million, respectively, of amortization of the fair
       value adjustments.
       


Sunoco Logistics Partners L.P.
Financial and Operating Statistics
(unaudited)
                                                     
                               Three Months Ended       Nine Months Ended
                               September 30,            September 30,
                               2013        2012        2013        2012
                               (in millions)
Sales and other operating
revenue
Crude Oil Pipelines            $ 139        $ 108       $ 356        $ 288
Crude Oil Acquisition and      4,244        3,010       11,550       9,258
Marketing
Terminal Facilities            177          101         536          406
Refined Products Pipelines     34           33          96           96
Intersegment eliminations      (66      )   (45     )   (187     )   (127    )
Total sales and other          $ 4,528     $ 3,207    $ 12,351    $ 9,921 
operating revenue
                                                                     
                               Three Months Ended       Nine Months Ended
                               September 30,            September 30,
                               2013         2012        2013         2012
                               (in millions)
Adjusted EBITDA
Crude Oil Pipelines            $ 98         $ 73        $ 247        $ 203
Crude Oil Acquisition and      18           54          200          158
Marketing
Terminal Facilities            47           52          171          173
Refined Products Pipelines     18          25         43          57      
Total Adjusted EBITDA          $ 181       $ 204      $ 661       $ 591   
                                                                     
                               Three Months Ended       Nine Months Ended
                               September 30,            September 30,
                               2013         2012        2013         2012
Operating Highlights
                                                                     
Crude Oil Pipelines:
Pipeline throughput            1,976        1,601       1,817        1,546
(thousands of bpd)
Pipeline revenue per barrel    76.3         73.6        71.7         68.0
(cents)
                                                                     
Crude Oil Acquisition and
Marketing:
Crude oil purchases            716          692         754          674
(thousands of bpd)
Gross profit per barrel        33.9         91.5        103.0        92.8
purchased (cents) ^(1)
Average crude oil price (per   $ 105.82     $ 92.19     $ 98.17      $ 96.20
barrel)
                                                                     
Terminal Facilities:
Terminal throughput
(thousands of bpd):
Refined products terminals     432          495         434          499
Nederland terminal             968          721         917          703
Refinery terminals             495          381         421          369
                                                                     
Refined Products Pipelines:
^(2)
Pipeline throughput            577          576         566          565
(thousands of bpd)
Pipeline revenue per barrel    64.3         62.2        62.0         62.2
(cents)
                                                                             


Sunoco Logistics Partners L.P.
Financial and Operating Statistics Notes
(unaudited)
     
       Represents total segment sales and other operating revenue less cost of
^(1)   products sold and operating expenses divided by total crude oil
       purchases.
^(2)   Excludes amounts attributable to equity interests which are not
       consolidated.
       


Sunoco Logistics Partners L.P.
Non-GAAP Financial Measures
(unaudited)
                                                          
                                        Three Months Ended   Nine Months Ended
                                        September 30,        September 30,
                                        2013      2012      2013     2012
                                        (in millions)
Net Income                              $  81      $ 137     $ 369     $ 389
Interest expense, net                   22         20        58        65
Depreciation and amortization expense   68         26        196       76
Impairment charge ^(1)                  —          —         —         9
Provision for income taxes              8          8         23        24
Non-cash compensation expense           4          1         10        6
Unrealized (gains) losses on            (8     )   3         (12   )   6
commodity risk management activities
Amortization of excess joint venture    —          —         1         —
investment
Proportionate share of unconsolidated
affiliates’ interest, depreciation      6         9        16       16    
and provision for income taxes
Adjusted EBITDA ^(2)                    181        204       661       591
Interest expense, net                   (22    )   (20   )   (58   )   (65   )
Provision for income taxes              (8     )   (8    )   (23   )   (24   )
Amortization of fair value              (5     )   —         (17   )   —
adjustments on long-term debt
Distributions versus Adjusted EBITDA    (10    )   (16   )   (21   )   (25   )
of unconsolidated affiliates
Maintenance capital expenditures        (15    )   (11   )   (37   )   (29   )
Distributable cash flow attributable    (3     )   (3    )   (11   )   (9    )
to noncontrolling interests
Contributions attributable to           3         —        6        —     
acquisition from affiliate
Distributable Cash Flow ^(2)            $  121    $ 146    $ 500    $ 439 

     
       In the first quarter 2012, the Partnership recognized a non-cash
^(1)   impairment charge related to a cancelled software project for the crude
       oil acquisition and marketing business and a refined products pipeline
       project in Texas.
       Management of the Partnership believes Adjusted EBITDA and
       Distributable cash flow information enhances an investor’s
       understanding of a business’s ability to generate cash for payment of
       distributions and other purposes. Adjusted EBITDA and Distributable
^(2)   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 GAAP and may not be comparable to other similarly
       titled measures of other businesses. Historical amounts presented have
       been recast to conform to current period presentation.
       

Contact:

Sunoco Logistics Partners L.P.
Jeffrey Shields (media) 215-977-6056
or
Peter Gvazdauskas (investors) 215-977-6322
 
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