Energy Transfer Operating (ET+E) 8-K Regulation FD Disclosure

Sunoco Logistics Partners L.P.

UBS 2008 MLP Conference

September 2008

Exhibit 99.1

Forward-Looking Statements

Statements

made

in

this

presentation

that

are

not

historical

facts

are

forward-looking

statements.

We

believe

the

assumptions

underlying

these

statements

are

reasonable,

but

caution

you

that

such

forward-looking

statements

involve

risks

that

may

affect

our

prospects

and

performance,

causing

actual

results

to

differ

from

those

discussed

here.

Such

risks

and

uncertainties

include:

our

ability

to

consummate

announced

acquisitions

and

integrate

them

into

existing

operations;

our

ability

to

complete

internal

growth

projects;

the

ability

of

such

acquisitions

and

internal

growth

projects

to

be

cash-flow

accretive;

increased

competition;

changes

in

demand

for

crude

oil

we

buy

and

sell,

as

well

as

for

crude

oil

and

refined

products

we

store

and

distribute;

the

loss

of

a

major

customer;

changes

in

our

tariff

rates;

changes

in

throughput

of

third-party

pipelines

connected

to

our

pipelines

and

terminals;

changes

in

levels

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

terrorists

acts

and

international

hostilities.

These

and

other

applicable

risks

and

uncertainties

are

described

more

fully

in

our

2008

Form

10-Q

(filed

with

the

Securities

and

Exchange

Commission

on

August

6,

2008).

We

undertake

no

obligation

to

update

publicly

any

forward-

looking

statements

in

this

presentation,

whether

as

a

result

of

new

information

or

future

events.

This

presentation

includes

certain

non-GAAP

financial

measures

intended

to

supplement,

not

substitute

for,

comparable

GAAP

measures. 

Reconciliations

of

non-GAAP

financial

measures

to

GAAP

financial

measures

are

provided

in

the

appendix

at

the

end

of

this

presentation.

2

Sunoco Logistics –

Asset Overview

3

-1,700 miles of refined product pipelines

-3,800 miles of crude trunk pipelines

-36 refined product terminals

-23.4 million barrels of crude oil storage capacity (including 16.5  million

barrels at Nederland)

-Ownership interest  in 6 product and crude oil pipelines

Key Business Attributes

Stable fee based revenue –

limited

commodity risk

–

12.4% LP Distribution CAGR since 2002 IPO

–

LP distribution increased in 20 of last 21 quarters

Geographically

diverse

assets

–

expanded

asset

footprint

–

Serve key U.S. refining and production centers in U.S. Northeast,

Midwest, and Gulf Coast

–

Provide transportation and storage services to meet growing

requirements from foreign crude into the Texas Gulf region

–

Successful completion and integration of 12 acquisitions since 2002

–

MagTex

will be the 13

th

acquisition

Key strategic relationship with Sunoco

4

Key Business Attributes

Strong business fundamentals

Refined product and crude oil pipelines

Growth driven by:

–

Demand driven throughput increases

–

Tariff increases (PPI influenced)

–

Increased terminal services

Crude Oil Marine Terminal

Growth driven by:

–

Shortage of storage infrastructure creates supply demand imbalance

–

Rising

tank

construction

costs

make

existing

storage

assets

more

valuable

–

Continuation of capacity expansion plan

Long term contracts

Flexible capital structure to support growth

Strong, stable investment grade credit rating

Debt to EBITDA at 2.2x’s among the lowest in the midstream MLP

sector

5

Financial Performance

Financial & Operational Measures

7

Total EBITDA $239 MM

2002 EBITDA

Eastern Pipeline

Terminals

Western Pipeline

$15 MM

$ 42 MM

$40 MM

Total EBITDA $97 MM

LTM 6/30/08 EBITDA

Eastern Pipeline

Terminals

Western

Pipeline

$100 MM

$64 MM

$75 MM

EBITDA & Free Cash Flow*

50

70

90

110

130

150

170

190

210

230

250

2003

2004

2005

2006

2007

LTM

6/30/08

            EBITDA

            Free Cash Flow

8

CAGR 16%

CAGR 22%

*    For a reconciliation of EBITDA & free cash flow to net income see slide 39.

Distribution

(per unit)

Distribution Summary

Current distribution of $3.74 (7.7% yield as of 8/29/08)

Latest 12 month distribution growth 11.6%

Distribution CAGR Q1 2002 –

Q1 2008 –

12.4%

50 / 50

75 / 25

85 / 15

98 / 2

LP/GP

Split (%)

9

$1.60

$1.80

$2.00

$2.20

$2.40

$2.60

$2.80

$3.00

$3.20

$3.40

$3.60

$3.80

Over the last 4 years distribution growth has been top quartile among our competitive group.

108% Distribution Growth

Financial Summary

10

Growth Capex

& Acquisitions

Investment since IPO:  $1B

Growth Capex/Acquisitions ($MM)

0

50

100

150

200

250

300

350

2002

2003

2004

2005

2006

2007

2008P

Organic

Acquisitions

SXL Asset Base ($MM)

1,000

1,200

1,400

1,600

1,800

2,000

2,200

2,400

2,600

2002

2003

2004

2005

2006

2007

Total Asset Growth:  129%

Financial Summary

11

FCF per LP Unit Growth:   129%

FCF per LP Unit Growth since 2004:   110%

FCF per Limited Partner Unit ($)

2.25

2.75

3.25

3.75

4.25

4.75

5.25

5.75

2002

2003

2004

2005

2006

2007

LTM

6/30/08

Other Financial Metrics

Debt-EBITDA ratio at 6/30/08

2.2

Debt/Total Capital at 6/30/08

45%

Unutilized revolver capacity at 6/30/08

$410 MM

Distribution coverage -twelve months

ended 6/30/08

1.47x

Stable investment grade rating

BBB/Baa2 (S&P, Moody’s)

Year ended 12/31/07 Revenues

$7,406 MM

12

Growth Opportunities

Growth Opportunities

Increased Asset Utilization

-

Increased terminalling

services

-

Expanded capability of lease acquisition marketing group

-

Demand driven throughput growth

-

Acquisition integration

14

Growth Opportunities

Increased Asset Utilization

Margin Improvement

-

FERC tariffs, market based tariffs

-

Crude oil storage infrastructure shortage

-

Additional terminalling

services

15

Growth Opportunities

16

Increased Asset Utilization

Margin Improvement

Asset Base Expansion

-

MagTex

refined products pipeline & terminals acquisition and

integration

-

Nederland build out

-

Motiva Pipeline project

-

Other organic growth

Growth Opportunities

17

Estimated Annual Free Cash Flow Growth After Financing

2008 –

2010

$20 MM -

$40 MM

Increased Asset Utilization

Margin Improvement

Asset Base Expansion

MagTex

Pipeline System

18

•472 mile refined product pipeline

system in Texas

•6 refined product terminals

•Connected to ExxonMobil’s

Beaumont Refinery and Motiva’s

Port Arthur Refinery

•Connected to 3   party terminals

in Houston

MagTex

Acquisition from ExxonMobil

rd

MagTex

Strategic Rationale

Establishes refined product platform for SXL in the Western Region

Connected to expanding refineries on the Gulf Coast

Supplies growing Houston market

Synergies with existing operations

Provides opportunities for organic growth projects

19

MagTex

Transaction

Purchase price of $200 MM

-

Support of $5.5 MM from the GP (Sunoco) over 4 years to provide

accretion to Limited Partners

Acquisition will be debt financed

Continuing to work through conditions to closing, with close expected

in Q4 2008

20

Immediately Accretive Plus Growth Opportunities

Western Pipeline System

21

Post

Western Crude Oil System

22

Sunoco Logistics -

Nederland Terminal

23

•Canadian Crude Oil

•Offshore domestic pipeline

•Strategic Petroleum Reserve

•Foreign Crude Oil

•Close to refining centers

-Houston

-Lake Charles

-Port Arthur

Crude Oil Tank Capacity:  16.5 million barrels

Nederland Terminal –

Key Drivers of Crude Oil Tank Demand

Increased

foreign

imports

into

the

Gulf

–

Waterborne

and

Canadian

Refinery Expansions

-

Increasing regulations governing inspections, repair, modification

and construction have led to greater outsourcing, more tanks

taken out of service

Segregation of increasing number of crude grades

Tankage

provides a logistics buffer during current period of tight

worldwide supply and demand

24

Nederland Terminal Build Out

Shell Capacity

MM BBLS

January 2008

14.7

2008 Construction

1.8

Motiva Project –

2009 -

2010

2.0

Additional Buildout Capability

12.0

Total Potential Capacity

30.5

25

Expect

to

Increase

Capacity

by

2

-

3

MM

Barrels

per

year

2008 -

2010

Nederland Terminal –

Motiva Port Arthur Project

Provide crude oil logistics for Motiva Port Arthur refinery expansion

Construct

1.8

million

barrels

of

tankage

at

Nederland

Terminal

and

8.1 mile pipeline to refinery

-

Estimated cost:

$90 MM

-

Completion Date:

2009-

2010

Increases Nederland’s extensive connectivity to Gulf Coast and inland

refineries

-

Additional capacity available on pipeline

Immediately accretive upon completion

26

NEDERLAND

TERMINAL

MOTIVA

MILLER TANK FARM

NEDERLAND

T0 MOTIVA

30”

PL

Nederland Project

•

Nederland Terminal

-

(3) 660 MBBL Tanks

-

Pump Station @ 8,000 HP

-

Piping & Manifold Modifications

-

Delivery Meters

•

Pipeline

-

8.1 Miles of 30”

-

Delivery Meters

Motiva Project Map

27

Summary

Sunoco Logistics Forward Guidance

Estimated Annual

2008 -

2010

Capital Expenditures

Maintenance

$26 MM

Organic Growth

$100-$150 MM

Increased Free Cash Flow

(after financing)

$20-$40 MM

2008 Earnings per LP unit are expected to be comparable to first

half level of $2.17

Targeting 2009 distribution growth at 10% or higher

29

Sunoco Logistics Partners

Summary

Conservative balance sheet, stable & diversified cash flows

–

Debt/EBITDA at 2.5x as of June 30, 2008 among the lowest in

Midstream MLP group

Geographically diverse, flexible assets

–

opportunities for increased utilization / capacity expansion

–

well positioned for  accretive organic growth projects and

acquisitions

Key

relationship

with

Sunoco,

Inc.

-

largest

investor

and

largest

customer

Diversified customer base and expanded business platform from recent

acquisitions

Experienced, growth oriented management team

Strong, consistent financial performance

30

Appendix

Sunoco Logistics Partners

Sunoco Logistics

Sunoco Logistics

Partners

Partners

Western Pipeline

Western Pipeline

System

System

Terminal

Terminal

Facilities

Facilities

Eastern Pipeline

Eastern Pipeline

System

System

32%*

32%*

27%*

27%*

41%*

41%*

Sunoco, Inc.

Sunoco, Inc.

Public

Public

43.3%

43.3%

56.7%

56.7%

*

*

EBITDA % for the 12 months ended June 30, 2008

EBITDA % for the 12 months ended June 30, 2008

32

32

SXL

NEDERLAND

TERMINAL

Midland and           

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

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

Citgo 20”

24”

Exxon Mobil            

Beaumont

5 Ship Docks   

3BargeDocks 

DOE 42”

Shell 22”

SPR        

Big Hill

ExxonMobil              

Baytown

Shell 20”

OTI            

Houston

OTI 24”

Shell      

Deer Park

Lyondell             

Houston

Shell PL           

East Houston

Shell 16”

BP26”

BP Amoco           

Texas City

NEDERLAND TERMINAL DISTRIBUTION SYSTEM

OCS

XOM 20”

Waterborne Transport

SXL 30”

Motiva     

Port Arthur

SPR West Hackberry

33

(Under Construction)

Completed Transaction History

$610mm in acquisitions since IPO

Columbus, Ohio product terminal from Certified Oil for $8mm

Texas crude oil pipeline from ExxonMobil for $100mm

37% interest in Mesa crude oil pipeline from Sunoco/Chevron

for $7mm

Texas crude oil pipelines from Black Hills for $41mm

Texas crude oil pipelines from Alon for $68mm

55.3% interest in Mid-Valley Pipeline Company from Sunoco for $65 MM

50% undivided interest in Syracuse, New York refined products terminal from

Exxon Mobil for $13mm

Purchase

Agreement

to

acquire

Texas

refined

product

pipelines

and

terminals

from

Exxon

Mobil

for

$200mm

–

anticipated

closing

July

2008

Nov. 2004

Aug. 2005

Dec. 2005

March 2006

August 2006

June 2007

April 2008

Additional 1/3 interest in Harbor Pipeline from El Paso for $7mm, increasing

interest to 2/3

rds

June 2004

2 product terminals from ConocoPhillips for $12mm:  Baltimore/Manassas

April 2004

Logistics assets of Eagle Point refinery from Sunoco, Inc. for $20.0mm

March 2004

Additional 3.1% interest in West Shore for $4mm: now own 12.3%

Sept. 2003

JV interest from Sunoco/ Unocal in West Texas Gulf for $11mm

Nov. 2002

JV interests in 3 product pipelines from Unocal, for $54.0mm

-

Wolverine (31.5%), West Shore (9.2%), and Yellowstone (14.0%)

Nov. 2002

34

Financial Summary

35

Total Unit Price Growth:   108%

Unit Price CAGR:   12%

Quarterly SXL Earnings per LP Unit ($)

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

2002

2003

2004

2005

2006

2007

2008

Total EPU Growth:   210%

EPU CAGR:   17%

SXL Unit Price

0

10

20

30

40

50

60

70

2002

2003

2004

2005

2006

2007

2008

Est.

2002

2003

2004

2005

2006

2007

2008

Organic           12

6

18

43

87        82

120

Acquisitions    65

4

47

106

174        13

200

Total               77

10       65

149      261        95

320

Sunoco Logistics –

Growth Capital

($mm)

36

Capitalization

($ millions)

As of 6/30/08

Debt

7.25% Notes (matures 2012)

250      fixed

6.125% Senior Notes (matures 2016)

175

fixed

$400 MM Revolver (matures 2012)

90      floating

$100 MM Revolver (matures 2009)

-

floating

Cash

(2)

Net Debt

513

Debt / Total Capital

45%

Debt / EBITDA

2.2x

EBITDA / Interest

7.3x

Rating:

BBB / Baa2 (S&P, Moody’s)

Stable, Investment Grade

37

Historical Financial Results

($millions)

6/30/08

EBITDA

2003

2004

2005

2006

2007

LTM

East

48              45

43

54

58

64

Terminals

41              48

51

54

68

75

West

18

16

23

47

67

100

Total EBITDA

107            109

117

155

193

239

Interest Expense

(20)           (20)          (22)

(28)

(35)

(33)

Maintenance Capex

(26)           (24)          (23)

(24)

(24)

(23)

Unusual Events

-

-

10

-

-

-

Free Cash Flow

61             65

82

103

134

183

GP Interest

(1)

(3)

(4)

(14)

(22)

(26)

Net to LPs

60              62

78

89

112

157

Yearly Distribution

($/unit)                               $1.99         $2.32       $2.56

$3.03      $3.33

$3.45

Coverage Ratio     

1.33x         1.14x

1.22x

1.05x      1.15x

1.47x

38

EBITDA Reconciliation

Management of the Partnership believes EBITDA and distributable cash flow information enhances 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 $400 million and $100 million 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 distributable cash flow do not represent and should not be

considered alternatives to net income, operating income or cash flows from operating activities as determined under United

States generally accepted accounting principles and may not be comparable to other similarly titled measures of other

businesses.

(1)  Earnings before interest, taxes, depreciation and amortization

39

(1)

2003

2004

2005

2006

2007

LTM

6/30/08

Net Income

60

57

61

90

121

162

Interest Expense

20

20

22

28

35

33

Depreciation and amortization

27

32

34

37

37

44

EBITDA

107

109

117

155

193

239

Interest Expense

(20)

(20)

(22)

(28)

(35)

(33)

Maintenance Capex

(26)

(24)

(23)

(24)

(24)

(25)

Unusual Events

-

-

10

-

-

-

Free Cash Flow

61

65

82

103

134

181