Sunoco 8-K Sunoco Reports First Quarter Results

1Q07 Earnings Conference Call

May 3, 2007

1

Exhibit 99.2

*             *

*

*

Safe Harbor Statement

This

slide

presentation

should

be

reviewed

in

conjunction

with

Sunoco’s

First

Quarter

2007

earnings

conference

call,

held

on

May

3,

2007

at

3:00

p.m.

ET.

You

may

listen

to

the

audio

portion

of

the

conference

call

on

the

website

or

an

audio

recording

will

be

available

after

the

call’s

completion

by

calling

1-800-642-1687

and

entering

conference

ID#4720037.

Those

statements

made

by

representatives

of

Sunoco

during

the

course

of

this

presentation

that

are

not

historical

facts

are

forward-

looking

statements

intended

to

be

covered

by

the

safe

harbor

provisions

of

Section

27A

of

the

Securities

Act

of

1933

and

Section

21E

of

the

Securities

Exchange

Act

of

1934.

These

forward-looking

statements

are

based

upon

a

number

of

assumptions

by

Sunoco

concerning

future

conditions,

any

or

all

of

which

may

ultimately

prove

to

be

inaccurate.

Forward-looking

statements

are

inherently

uncertain

and

necessarily

involve

risks

that

may

affect

Sunoco's

business

prospects

and

performance,

causing

actual

results

to

differ

materially

from

those

discussed

during

this

presentation.

Such

risks

and

uncertainties

include,

by

way

of

example

and

not

of

limitation:

general

economic,

financial

and

business

conditions

which

could

affect

Sunoco’s

financial

condition

and

results

of

operations;

changes

in

competition

and

competitive

practices,

including

the

impact

of

foreign

imports;

effects

of

weather

conditions

and

natural

disasters

on

the

Company’s

operating

facilities

and

on

product

supply

and

demand;

changes

in

refining,

marketing

and

chemical

margins;

variation

in

petroleum-based

commodity

prices

and

availability

of

crude

oil

and

feedstock

supply

or

transportation;

effects

of

transportation

disruptions;

changes

in

the

price

differentials

between

light-sweet

and

heavy-

sour

crude

oils;

changes

in

the

marketplace

which

may

affect

supply

and

demand

for

Sunoco’s

products;

changes

in

the

level

of

capital

expenditures

or

operating

expenses;

changes

in

product

specifications;

availability

and

pricing

of

ethanol;

changes

in

the

expected

level

of

environmental

capital,

operating

or

remediation

expenditures;

age

of,

and

changes

in,

the

reliability,

efficiency

and

capacity

of,

the

Company’s

operating

facilities

or

those

of

third

parties;

effects

of

adverse

events

relating

to

the

operation

of

the

Company’s

facilities

and

to

the

transportation

and

storage

of

hazardous

materials

(including

equipment

malfunction,

explosions,

fires,

spills

and

the

effects

of

severe

weather

conditions);

risks

related

to

labor

relations

and

workplace

safety;

changes

in,

or

new,

statutes

and

government

regulations

or

their

interpretations,

including

those

relating

to

the

environment

and

global

warming;

changes

in

tax

laws

or

their

interpretations,

including

pension

funding

requirements;

ability

to

identify

acquisitions,

execute

them

under

favorable

terms

and

integrate

them

into

the

Company’s

existing

businesses;

ability

to

enter

into

joint

ventures

and

other

similar

arrangements

under

favorable

terms;

delays

and/or

costs

related

to

construction,

improvements

and/or

repairs

of

facilities

(including

shortages

of

skilled

labor,

issuance

of

applicable

permits

and

inflation);

the

changes

in

the

availability

and

cost

of

debt

and

equity

financings;

changes

in

the

credit

ratings

assigned

to

the

Company’s

debt

securities

or

credit

facilities;

changes

in

insurance

markets

impacting

costs

and

the

level

and

types

of

coverage

available;

nonperformance

or

force

majeure

by,

or

disputes

with,

major

customers,

suppliers,

dealers,

distributors

or

other

business

partners;

changes

in

financial

markets

impacting

pension

expense

and

funding

requirements;

political

and

economic

conditions

in

the

markets

in

which

the

Company,

its

suppliers

or

customers

operate,

including

the

impact

of

potential

terrorist

acts

and

international

hostilities;

military

conflicts

between,

or

internal

instability

in,

one

or

more

oil

producing

countries,

governmental

actions

and

other

disruptions

in

the

ability

to

obtain

crude

oil;

ability

to

conduct

business

effectively

in

the

event

of

an

information

system

failure;

claims

of

the

Company’s

non-compliance

with

statutory

and

regulatory

requirements;

and

changes

in

the

status

of,

or

initiation

of

new,

litigation,

arbitration

or

other

proceedings

to

which

the

Company

is

a

party

or

liability

resulting

from

such

litigation,

arbitration

or

other

proceedings,

including

natural

resource

damage

claims.

These

and

other

applicable

risks

and

uncertainties

have

been

described

more

fully

in

Sunoco's

2006

Form

10-K

filed

with

the

Securities

and

Exchange

Commission

on

February

26,

2007.

Other

factors

not

discussed

herein

also

could

materially

and

adversely

affect

Sunoco’s

business

prospects

and/or

performance.

All

forward-looking

statements

included

in

this

presentation

are

expressly

qualified

in

their

entirety

by

the

foregoing

cautionary

statements.

Sunoco

undertakes

no

obligation

to

update

any

forward-looking

statements

whether

as

a

result

of

new

information

or

future

events.

2

Earnings Profile

3

1Q07

Net Income (MM$ after tax):

Refining & Supply

76

Retail Marketing

7

Chemicals

9

Logistics

9

Coke

11

Corporate Expenses

(15)

Net Financing Expenses & Other

(12)

Income Before Special Items

85

Special

Items

90

Total Net Income

175

EPS (Diluted), Before Special Items

0.70

EPS (Diluted), Net Income

1.44

Income Before Special Items*, MM$

1Q06

2Q06

3Q06

4Q06

1Q07

Refining & Supply

  73

409

273

126

76

Non-Refining

  34

  40

  98

  33

36

Corp. & Net Fin.

  (28)

(23)

(20)

  (36)

(27)

   Income Before 

     Special Items

  79

426

351

123

85

EPS (Diluted),

Before Special Items

0.59

3.22

2.76

1.00

0.70

4

$85

$123

$351

$426

$79

$0

$100

$200

$300

$400

$500

* For reconciliation to Net Income, see slide 14.

Non-Refining Businesses –

1Q07

5

Retail Marketing

Margins improved from 1Q/4Q06 but limited by impact of

rising wholesale gasoline prices

Strong year-over-year volume growth

$3MM after-tax charge for litigation settlement

Chemicals

Margin environment similar to 4Q06

Feedstock availability issues reduced sales volumes

Logistics

Improvement.

from

1Q06

due

to

acquisition.

growth and

higher terminalling earnings

Coke

4Q06 contained $5MM after-tax in favorable tax-credit

adjustments

Higher mining expenses at Jewell coal operations

Refining & Supply –

1Q07 Operations

6

Philadelphia Refinery Turnaround and Expansion Project

Turnaround of crude unit and project to expand/upgrade fluid

catalytic cracking unit

Approximately

two months

from

mid-February.

through

mid-April

1Q07 production loss: approximately 9 MMB

All

units

on-line…

facility

returning

to

normal

operations

Marcus Hook Power Outage

Loss of steam due to third-party power disruption resulted in

refinery shutdown

Impacted operations for approximately 2 weeks in second half of

February

1Q07 impact: approximately 1 MMB (estimated $9MM after-tax)

Tulsa Maintenance

Mechanical integrity and pre-turnaround work

Approximately one week in mid-February

1Q07 impact: approximately 0.4 MMB (estimated $4MM after-tax)

Turnaround planned for June

Northeast Refining

7

* For definition, see slide 21.

Realized Margin vs. Benchmark, $/B

1Q06

2Q06

3Q06

4Q06

1Q07

Northeast Refining:

Realized Margin

5.35

11.56

8.35

6.23

5.25

6-3-2-1 Benchmark *

4.49

8.76

5.29

3.68

7.14

Differential

+0.86

+2.80

+3.06

+2.55

(1.89)

Actual Costs vs.   

Benchmark:

Crude

(1.19)

(1.06)

(0.58)

(0.26)

(2.24)

Product

2.05

3.86

3.64

2.81

0.35

Differential

+0.86

+2.80

+3.06

+2.55

(1.89)

8

1.19

1.06

0.58

0.26

2.24

0.00

0.50

1.00

1.50

2.00

2.50

1Q06

2Q06

3Q06

4Q06

1Q07

Crude Cost vs. Dated Brent +$1.25/B

1Q07 vs. 4Q06:

Absence of 4Q06 LIFO inventory gain

Lower volumes of discounted high-

acid crudes

due to turnaround

Higher premiums for West African

crudes

Unfavorable timing versus calendar-

day average

2.05

3.86

3.64

2.81

0.35

0.00

1.00

2.00

3.00

4.00

5.00

1Q06

2Q06

3Q06

4Q06

1Q07

Products vs. Benchmarks, $/B

1Q07 vs. 4Q06:

Lower value-added premiums for

diesel fuel over heating oil

Unfavorable timing versus

calendar-day average

Unfavorable effect of reduction

in residual fuel inventories

Northeast Refining

MidContinent

Refining

9

* For definition, see slide 21.

Realized Margin vs. Benchmark, $/B

1Q06

2Q06

3Q06

4Q06

MidContinent

Refining:

Realized Margin

8.38

15.00

14.90

11.32

3-2-1 Benchmark *

7.92

18.63

14.13

8.58

Differential

+0.46

(3.63)

+0.77

+2.74

Actual Costs vs.   

Benchmark:

Crude

0.67

0.58

0.25

1.55

Product

(0.21)

(4.21)

0.52

1.19

1Q07

11.42

11.06

+0.36

(0.36)

0.72

46

Differential

+0.

(3.63)

+0.77

+2.74

+0.36

10

(0.21)

(4.21)

0.52

1.19

0.72

-5.00

-4.00

-3.00

-2.00

-1.00

0.00

1.00

2.00

1Q06

2Q06

3Q06

4Q06

1Q07

Products vs. Benchmarks, $/B

1Q07 vs. 4Q06:

Lower value-added premiums for

fuels and lubricant base oils

(0.67)

(0.58)

(0.25)

(1.55)

0.36

-2.00

-1.00

0.00

1.00

1Q06

2Q06

3Q06

4Q06

1Q07

Crude Cost vs. WTI +$0.75, $/B

1Q07 vs. 4Q06:

Higher premiums for Canadian

Syncrude

run at Toledo refinery

MidContinent

Refining

Refining & Supply –

2Q07 Operations Outlook

11

Philadelphia Refinery Turnaround and Expansion Project

Restart of units progressed through April

2Q07 production loss: approximately 2 MMB

Additional 15-20 MB/D upgrade of residual fuel to gasoline

and distillate

Toledo Debottleneck

Project

Project to increase throughput by 20 MB/D

Final tie-in work scheduled to begin in May with

completion by end of 2Q07

2Q07 production loss expected to be minimal

Tulsa Refinery Turnaround

Planned maintenance turnaround

Scheduled for 5 weeks beginning in June

2Q07 production loss: approximately 2.4 MMB

Summary

12

1Q07 significantly impacted by major turnaround

and expansion project work in our Northeast

Refining Complex…now completed and in

operation

Expect to complete additional expansion project

at the Toledo Refinery in 2Q07

2Q07 refined product market very constructive

as we enter the summer driving season

No major turnaround activity scheduled in the

second half of 2007

Appendix

13

*          *

*

*

Earnings Profile

14

1Q06

2Q06

3Q06

4Q06

1Q07

Net Income (MM$ after tax):

Refining & Supply

73

409

273

126

76

Retail Marketing

-

10

77

(11)

7

Chemicals

14

8

5

16

9

Logistics

6

12

7

11

9

Coke

14

10

9

17

11

Corporate

Expenses

(16)

(11)

(11)

(20)

(15)

Net Financing Expenses & Other

(12)

(12)

(9)

(16)

(12)

Income Before Special Items

79

426

351

123

85

Special Items

-

-

-

-

90

Total Net Income

79

426

351

123

175

EPS (Diluted), Before Special Items

0.59

3.22

2.76

1.00

0.70

EPS (Diluted), Net Income

0.59

3.22

2.76

1.00

1.44

Earnings Profile

15

1Q07

1Q06

4Q06

Net Income

(MM$ after tax):

Refining & Supply

73

3

126

(50)

Retail Marketing

-

7

(11)

18

Chemicals

14

(5)

16

(7)

Logistics

6

3

11

(2)

Coke

14

(3)

17

(6)

Corporate Expenses

(16)

1

(20)

5

Net Financing

Expenses & Other

(12)

-

(16)

4

Income Before

Special Items

79

6

123

(38)

Special Items

-

90

-

90

Total Net Income

79

96

123

52

EPS (Diluted),

Before

Special Items

0.59

0.11

1.00

(0.30)

EPS

(Diluted), Net Income

76

7

9

9

11

(15)

(12)

85

90

175

0.70

1.44

0.59

0.85

1.00

0.44

Key Margin Indicators

1Q06

2Q06

3Q06

4Q06

1Q07

Refining & Supply, $/B

   Realized Northeast

  5.35

11.56

  8.35

  6.23

  5.25

   Realized MidContinent

  8.38

15.00

14.90

11.32

11.42

      Realized Total R&S

  6.13

12.41

10.13

  7.51

  6.98

Retail Marketing, cpg

   Gasoline

  6.8

  8.4

17.3

  6.8

  8.3

   Distillate 

12.0

  8.7

10.4

13.5

16.3

Chemicals, cpp

   Phenol and Related

  9.1

  7.1

  7.0

8.7

  8.8

   Polypropylene

13.2

11.1

12.2

12.9

12.7

      Total Chemicals

10.9

  8.8

  9.3

10.5

10.5

Dated Brent Crude Oil, $/B

61.88

69.65

69.41

59.74

57.28

Natural Gas, $/DT

  7.88

  6.67

  6.14

  7.26

  7.18

16

Key Volume Indicators

1Q06

2Q06

3Q06

4Q06

1Q07

Refining & Supply

   Northeast:

     Crude Throughputs, MB/D

610

640

612

603

539

     % Capacity

  93

  98

  93

  92

  82

     Net Prod. Available for Sale, MB/D

664

698

658

662

599

   MidContinent:

     Crude Throughputs, MB/D

225

224

238

211

223

     % Capacity

  92

  92

  97

86

  91

     Net Prod. Available for Sale, MB/D

233

231

246

221

232

   Total Refining & Supply:

     Crude Throughputs, MB/D

835

864

850

814

762

     % Capacity

  93

  96

  94

  90

  85

     Net Prod. Available for Sale, MB/D

897

928

904

883

831

     Net Prod. Available for Sale, MMB

  81

  84

  83

  81

  75

17

Key Volume Indicators

18

1Q06

2Q06

3Q06

4Q06

1Q07

Retail Marketing

Gasoline Sales, MM gal

1,086

1,181

1,202

1,179

1,131

Middle Distillate Sales, MM gal

176

158

158

165

177

Total Sales, MM gal

1,262

1,339

1,360

1,344

1,308

Gasoline and Diesel

Throughput

(M

gal/Site/Month)

(Company owned or leased outlets)

132

143

150

149

142

Merchandise Sales (M$/Store/Month)

71

82

87

80

76

Chemicals

Phenol and Related Sales, MM#

633

663

607

632

592

Polypropylene Sales, MM#

562

569

550

562

548

Other Sales, MM#

21

21

21

25

20

Total, MM#

1,216

1,253

1,178

1,219

1,160

Coke

Production

, M tons

631

627

620

632

642

Financial Ratios

3/31/06

6/30/06

9/30/06

12/31/06

3/31/07

Total Debt (GAAP Basis)

1,524

1,438

1,497

1,987

2,086

Plus: Debt Guarantees

       6

       6

      6

       5

       5

Less: Cash

   (361)

   (600)

   (218)

    (263)

   (222)

Net Debt (Revolver Covenant Basis)

1,169

   844

1,285

1,729

1,869

Shareholders’ Equity (GAAP Basis)

2,027

2,295

2,126

2,075

2,159

SXL * Minority Interest

   394

   506

   502

   503

   349

Equity (Revolver Covenant Basis)

2,421

2,801

2,628

2,578

2,508

Debt / Capital (GAAP Basis)

43%

39%

41%

49%

49%

Net Debt / Capital ** 

(Revolver Covenant Basis)

33%

23%

33%

40%

43%

*

Sunoco

Logistics

Partners

L.P.

(NYSE:

SXL)

**

The

Net

Debt

/

Capital

ratio

is

used.

by

Sunoco

management.

in

its

internal.

financial

analysis

and

by

investors.

and

creditors.

in

the

assessment.

of

Sunoco’s.

financial.

position.

19

Refining & Supply -

1Q07 Gasoline and Distillate Production

Northeast

Refining

MidContinent

Refining

Total

Refining 

& Supply

Gasoline Production, MB/D

289.3

112.1

401.4

   RFG

51%

   0%

37%

   Conventional

49%

100%

63%

Distillate Production, MB/D

210.1

75.3

285.4

   On-Road Diesel Fuel

55%

38%

51%

   Heating Oil / Off-Road Diesel

25%

28%

26%

   Jet Fuel

16%

34%

21%

   Kerosene / Other

  4%

  0%

  2%

20

Marker Crack Spread Definition

Northeast 6-3-2-1 Benchmark

6 Dated Brent Crude: Platt’s Mid + $1.25 for transportation

3 Unleaded Regular Gasoline: NY Harbor Barge Platt’s Low

2 No. 2 Fuel Oil (Heating Oil): NY Harbor Barge Platt’s Low

1 No. 6 0.3% Sulfur High Pour Resid: NY Harbor Barge Platt’s Low

MidContinent

3-2-1 Benchmark

3 WTI Crude: NYMEX futures L1 Close + $0.75 for transportation

2 Unleaded Regular Gasoline: Chicago Pipeline Platt’s Low

1 No. 2 Low Sulfur (Low Sulfur Diesel): Fuel Oil Chicago Pipeline

Platt’s Low

21

For More Information

22

Media

releases

and

SEC

filings

are

available

on

our

website

at

www.Sunocolnc.com

Contact

for

more

information:

Terry Delaney

(215) 977-6106

Tom Harr

(215) 977-6764