Sunoco Logistics Reports Record Full Year Earnings for 2013 and Fifth Consecutive 5 Percent Quarterly Distribution Increase

  Sunoco Logistics Reports Record Full Year Earnings for 2013 and Fifth
  Consecutive 5 Percent Quarterly Distribution Increase

Business Wire

PHILADELPHIA -- February 19, 2014

Sunoco Logistics Partners L.P. (NYSE: SXL) (the "Partnership") today announced
its results for the fourth quarter ended December 31, 2013. Adjusted EBITDA
for the three months ended December 31, 2013 was $210 million, which
contributed to record full year Adjusted EBITDA of $871 million. Adjusted
EBITDA was $219 million for the three months ended December 31, 2012. Net
income attributable to partners for the fourth quarter 2013 was $102 million
($0.63 per limited partner unit diluted), compared with $139 million ($1.10
per limited partner unit diluted) for the fourth quarter 2012. Additional
highlights include:

  *Distributable cash flow of $155 million for the fourth quarter 2013
  *Twenty-two percent distribution increase to $2.65 (annualized) compared to
    the fourth quarter 2012
  *Ended the quarter with a Debt to Adjusted EBITDA ratio of 2.7x
  *Replaced existing credit facilities with a $1.5 billion credit facility
  *Commenced operations on the Mariner West pipeline project which delivers
    ethane from the Marcellus Shale Basin to Sarnia, Canada
  *Completed a successful open season for the Permian Express 2 crude oil
    pipeline project
  *Commenced an open season for the Mariner East 2 natural gas liquids
    ("NGL") pipeline project

"2013 was another record earnings year for our Partnership," said Michael J.
Hennigan, president and chief executive officer. "In addition, our organic
growth capital reached new highs as we commenced operations on three major
growth projects and successfully developed four additional major organic
expansion projects that will position us to continue increasing ratable,
fee-based cash flows for 2014 and beyond."

Speaking on the record earnings in 2013, Hennigan said, "Our ratable,
fee-based cash flows grew approximately 20 percent versus 2012. The growth was
driven by the start-up of three major projects combined with our ongoing
organic program to expand services at our existing assets, such as our
Nederland terminal on the Gulf Coast."

Discussing the start-up on Mariner West, Hennigan said, "Operations for our
Mariner West pipeline began in the fourth quarter of 2013 at approximately
20,000 barrels per day. This pipeline is providing key ethane takeaway
capacity out of the Marcellus with delivery to Sarnia, Canada. We expect this
pipeline to be fully operational at approximately 50,000 barrels per day by
the end of the second quarter of 2014 in conjunction with origin and
destination processing equipment start ups."

Commenting on the open season for the Permian Express 2 pipeline project,
Hennigan said, "We are pleased to announce another successful open season for
our Partnership. Permian Express 2 has received sufficient commitments to
proceed and will provide approximately 200,000 barrels per day of needed
takeaway capacity from the rapidly developing Permian Basin region to multiple
markets beginning in 2015."

In regard to organic expansion, Hennigan said, "We completed an additional
four successful open seasons during 2013: Mariner South NGL pipeline, and
three crude pipeline projects targeting growing production areas - Eaglebine
Express, Granite Wash Extension and Permian Express 2. These projects will
provide additional takeaway capacity out of key domestic production areas and
will generate long-term ratable cash flows for the Partnership. We are
currently projecting a 2014 organic capital program of at least $1.3 billion
which would exceed our record 2013 organic growth of $965 million."

DETAILS OF FOURTH QUARTER SEGMENT ADJUSTED EBITDA

                                             
                                               Three Months Ended December 31,
                                               2013        2012     Variance
                                               (in millions)
Crude Oil Pipelines                            $  102       $ 72      $  30
Crude Oil Acquisition and Marketing            33           81        (48    )
Terminal Facilities                            62           52        10
Refined Products Pipelines                     13          14       (1     )
Adjusted earnings before interest, taxes,
depreciation and amortization expense          $  210      $ 219    $  (9  )
("Adjusted EBITDA") ^(1)

     
       For a detailed definition of the components included within Adjusted
^(1)   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 $30 million due
primarily to higher throughput volumes largely attributable to expansion
projects which began operating during 2013 and strong demand for West Texas
crude oil.

Crude Oil Acquisition and Marketing

Adjusted EBITDA for the Crude Oil Acquisition and Marketing segment decreased
$48 million primarily due to lower crude oil margins driven by crude
differentials which have contracted compared 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 increased $10 million due
primarily to improved contributions from the Partnership's Nederland and Eagle
Point terminals. These increases were partially offset by decreased operating
results from the Partnership's refined products acquisition and marketing
activities, which was negatively impacted by inventory timing.

Refined Products Pipelines

Adjusted EBITDA for the Refined Products Pipelines segment decreased $1
million to $13 million for the fourth quarter 2013 compared to the prior year
period. The decrease was driven by lower pipeline revenue on reduced
throughput volumes.

Financing Update

Net interest expense increased $5 million to $19 million for the fourth
quarter 2013 compared to the prior year period. Higher interest expense
associated with the Partnership’s $700 million senior notes offering in
January 2013 was partially offset by higher capitalized interest related to
expansion projects. At December 31, 2013, the Partnership's total debt balance
was $2.38 billion, excluding $120 million of unamortized fair value
adjustments. At December 31, 2013, the Partnership had available borrowing
capacity of $1.3 billion under its revolving credit facilities and $239
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

                                 
                                   Twelve Months Ended December 31,
                                   2013               2012
                                   (in millions)
Expansion capital expenditures     $   965             $   324
Maintenance capital expenditures   53                  50
Major acquisitions                 60                 —         
Total                              $   1,078          $   374   
                                                                 

The Partnership's expansion capital spending for the twelve months ended
December 31, 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 twelve months ended December 31, 2013 included the Partnership's
acquisition of the Marcus Hook Facility from Sunoco for $60 million. The
Partnership expects total expansion capital, excluding major acquisitions, to
be at least $1.3 billion in 2014. Maintenance capital is expected to be
approximately $70 million in 2014. These expenditures will be funded from cash
provided by operations, proceeds from debt and equity offerings, and proceeds
from borrowings under our credit facilities.

INVESTOR CALL

The Partnership will host a conference call regarding fourth quarter results
on Thursday, February 20, 2014 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 one hour following the completion of
the call. To access the replay, dial 1-888-282-0036. International callers
should dial 1-203-369-3022.

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 December 31,
                              2013               2012           Variance
                              (in millions, except units and per unit amounts)
Income Statement:
Sales and other operating     $   4,288           $  3,189        $  1,099
revenue
                                                                  
Cost of products sold         4,040               2,885           1,155
Operating expenses            30                  48              (18       )
Selling, general and          23                  34              (11       )
administrative expenses
Depreciation and              69                 63             6         
amortization expense
Total costs and expenses      4,162               3,030           1,132
Operating Income              126                 159             (33       )
Net interest cost to          (1          )       —               (1        )
affiliates
Interest cost and debt        (25         )       (18       )     (7        )
expense, net
Capitalized interest          7                   4               3
Other income                  5                  5              —         
Income Before Provision for   112                 150             (38       )
Income Taxes
Provision for income taxes    (7          )       (8        )     1         
Net Income                    105                 142             (37       )
Less: Net Income
attributable to               (3          )       (3        )     —         
noncontrolling interests
Net Income Attributable to    $   102            $  139         $  (37    )
Partners
                                                                  
Calculation of Limited
Partners' interest:
Net Income attributable to    $   102             $  139          $  (37    )
Partners
Less: General Partner's       (36         )       (24       )     (12       )
interest
Limited Partners' interest    $   66             $  115         $  (49    )
in Net Income
                                                                  
Net Income per Limited
Partner unit:
Basic                         $   0.64           $  1.11   
                                                                  
Diluted                       $   0.63           $  1.10   
                                                                  
Weighted Average Limited
Partners' units
outstanding:
Basic                         103.8              103.8     
                                                                  
Diluted                       104.4              104.1     

                            
Sunoco Logistics Partners L.P.
Financial Highlights
(unaudited)
                              
                              Twelve Months Ended December 31,
                              2013              2012            Variance
                              (in millions, except units and per unit amounts)
Income Statement:
Sales and other operating     $   16,639         $  13,110        $  3,529
revenue
Gain on divestments and       —                 11              (11       )
related matters
Total revenues                16,639             13,121           3,518
Cost of products sold         15,574             12,099           3,475
Operating expenses            117                145              (28       )
Selling, general and          123                120              3
administrative expenses
Depreciation and              265                139              126
amortization expense
Impairment charge and         —                 (1         )     1         
related matters
Total costs and expenses      16,079             12,502           3,577
Operating Income              560                619              (59       )
Net interest cost to          (1           )     —                (1        )
affiliates
Interest cost and debt        (97          )     (91        )     (6        )
expense, net
Capitalized interest          21                 12               9
Other income                  21                23              (2        )
Income Before Provision for   504                563              (59       )
Income Taxes
Provision for income taxes    (30          )     (32        )     2         
Net Income                    474                531              (57       )
Less: Net Income
attributable to               (11          )     (11        )     —         
noncontrolling interests
Net Income Attributable to    $   463           $  520          $  (57    )
Partners
                                                                  
Calculation of Limited
Partners' interest:
Net Income attributable to    $   463            $  520           $  (57    )
Partners
Less: General Partner's       (124         )     (79        )     (45       )
interest
Limited Partners' interest    $   339           $  441          $  (102   )
in Net Income ^(1)
                                                                  
Net Income per Limited
Partner unit:
Basic                         $   3.27          $  4.26    
                                                                  
Diluted                       $   3.25          $  4.24    
                                                                  
Weighted Average Limited
Partners' units
outstanding:
Basic                         103.8             103.6      
                                                                  
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)
                                                                             
                                                         December 31,
                                                         2013       2012
                                                         (in millions)
Balance Sheet Data:
Cash and cash equivalents                                $ 39       $ 3     
                                                                             
Advances to affiliated companies                         $ 239      $ 56    
                                                                             
Revolving credit facilities ^(1)                         $ 235       $ 139
Senior Notes                                             2,150       1,450
Unamortized fair value adjustments ^(2)                  120         143
Unamortized bond discount                                (2      )   —       
Total Debt                                               $ 2,503    $ 1,732 
                                                                             
Sunoco Logistics Partners L.P. Partners' equity          $ 6,204     $ 6,072
Noncontrolling interests                                 121        123     
Total Equity                                             $ 6,325    $ 6,195 
                                                                             
Debt to Adjusted EBITDA Ratio:
Total Debt                                               $ 2,503
Less: Unamortized fair value adjustments ^(2)            (120    )
Less: Unamortized bond discount                          2       
                                                         $ 2,385 
                                                                             
Adjusted EBITDA (Twelve months ended December 31,        871
2013)
Debt to Adjusted EBITDA Ratio                            2.7x

     
^(1)   As of December 31, 2013, the Partnership had available borrowing
       capacity of $1.3 billion 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 December 31, 2013, there
       was $120 million of unamortized fair value adjustments remaining.
       Interest expense for the three and twelve months ended December 31,
       2013 is net of $6 and $23 million, respectively, of amortization of the
       fair value adjustments.

                                                    
Sunoco Logistics Partners L.P.
Financial and Operating Statistics
(unaudited)
                                                       
                               Three Months Ended      Twelve Months Ended
                               December 31,            December 31,
                               2013       2012        2013        2012
                               (in millions)
Sales and other operating
revenue
Crude Oil Pipelines            $ 139       $ 110       $ 495        $ 398
Crude Oil Acquisition and      3,968       2,888       15,518       12,146
Marketing
Terminal Facilities            215         206         751          612
Refined Products Pipelines     34          35          130          131
Intersegment eliminations      (68     )   (50     )   (255     )   (177     )
Total sales and other          $ 4,288    $ 3,189    $ 16,639    $ 13,110 
operating revenue
                                                                    
                               Three Months Ended      Twelve Months Ended
                               December 31,            December 31,
                               2013        2012        2013         2012
                               (in millions)
Adjusted EBITDA
Crude Oil Pipelines            $ 102       $ 72        $ 349        $ 275
Crude Oil Acquisition and      33          81          233          239
Marketing
Terminal Facilities            62          52          233          225
Refined Products Pipelines     13         14         56          71       
Total Adjusted EBITDA          $ 210      $ 219      $ 871       $ 810    
                                                                    
                               Three Months Ended      Twelve Months Ended
                               December 31,            December 31,
                               2013        2012        2013         2012
Operating Highlights
                                                                    
Crude Oil Pipelines:
Pipeline throughput            2,009       1,584       1,866        1,556
(thousands of bpd)
Pipeline revenue per barrel    75.2        75.6        72.7         69.9
(cents)
                                                                    
Crude Oil Acquisition and
Marketing:
Crude oil purchases            734         669         749          673
(thousands of bpd)
Gross profit per barrel        55.9        138.0       91.4         104.1
purchased (cents) ^(1)
Average crude oil price (per   $ 97.50     $ 88.20     $ 98.00      $ 94.19
barrel)
                                                                    
Terminal Facilities:
Terminal throughput
(thousands of bpd):
Refined products terminals     422         451         431          487
Nederland terminal             977         787         932          724
Refinery terminals             324         411         397          380
                                                                    
Refined Products Pipelines:
^(2)
Pipeline throughput            586         601         571          582
(thousands of bpd)
Pipeline revenue per barrel    63.9        63.0        62.5         61.6
(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   Twelve Months Ended
                                      December 31,         December 31,
                                      2013      2012      2013       2012
                                      (in millions)
Net Income                            $  105     $ 142     $  474      $ 531
Interest expense, net                 19         14        77          79
Depreciation and amortization         69         63        265         139
expense
Impairment charge ^(1)                —          —         —           9
Provision for income taxes            7          8         30          32
Non-cash compensation expense         4          2         14          8
Unrealized (gains) losses on
commodity risk management             11         (3    )   (1      )   3
activities
Amortization of excess joint          1          —         2           —
venture investment
Proportionate share of
unconsolidated affiliates’            4          5         20          21
interest, depreciation and
provision for income taxes
Non-cash accrued liability            (10    )   —         (10     )   —
adjustment
Adjustments to commodity hedges
resulting from "push-down"            —         (12   )   —          (12   )
accounting
Adjusted EBITDA ^(2)                  210        219       871         810
Interest expense, net                 (19    )   (14   )   (77     )   (79   )
Provision for income taxes            (7     )   (8    )   (30     )   (32   )
Amortization of fair value            (6     )   (6    )   (23     )   (6    )
adjustments on long-term debt
Distributions versus Adjusted         (6     )   (3    )   (27     )   (28   )
EBITDA of unconsolidated affiliates
Maintenance capital expenditures      (16    )   (21   )   (53     )   (50   )
Distributable cash flow
attributable to noncontrolling        (4     )   (2    )   (15     )   (11   )
interests
Contributions attributable to         3         —        9          —     
acquisition from affiliate
Distributable Cash Flow ^(2)          $  155    $ 165    $  655     $ 604 
                                                                             

       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
^(2)   distributions and other purposes. Adjusted EBITDA and distributable
       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.
       

Contact:

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