Sunoco 8-K Sunoco Reports Third Quarter 2007 Results

3Q07 Earnings Conference Call

November 1, 2007

1

Exhibit 99.2

Safe Harbor Statement

2

This

slide

presentation

should

be

reviewed

in

conjunction

with

Sunoco’s

Third

Quarter

2007

earnings

conference

call

held

on

November

1,

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#19447898.

Statements

in

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

assumptions

by

Sunoco

concerning

future

conditions,

any

or

all

of

which

ultimately

may

prove

to

be

inaccurate,

and

upon

the

current

knowledge,

beliefs

and

expectations

of

Sunoco

management.

These

forward-looking

statements

are

not

guarantees

of

future

performance.

Forward-looking

statements

are

inherently

uncertain

and

involve

significant

risks

and

uncertainties

that

could

cause

actual

results

to

differ

materially

from

those

described

during

this

presentation.

Such

risks

and

uncertainties

include

economic,

business,

competitive

and/or

regulatory

factors

affecting

Sunoco's

business,

as

well

as

uncertainties

related

to

the

outcomes

of

pending

or

future

litigation.

In

accordance

with

the

safe

harbor

provisions

of

the

Private

Securities

Litigation

Reform

Act

of

1995,

Sunoco

has

included

in

its

Annual

Report

on

Form

10-K

for

the

year

ended

December

31,

2006,

and

in

its

subsequent

Form

10-Q

and

Form

8-K

filings,

cautionary

language

identifying

important

factors

(though

not

necessarily

all

such

factors)

that

could

cause

future

outcomes

to

differ

materially

from

those

set

forth

in

the

forward-looking

statements.

For

more

information

concerning

these

factors,

see

Sunoco's

Securities

and

Exchange

Commission

filings,

available

on

Sunoco's

website

at

www.SunocoInc.com.

Sunoco

expressly

disclaims

any

obligation

to

update

or

alter

its

forward-looking

statements,

whether

as

a

result

of

new

information,

future

events

or otherwise.

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

the

presentation.

Investors

are

urged

to

consider

carefully

the

comparable

GAAP

measures

and

the

reconciliations

to

those

measures

provided

in

the

Appendix,

or

on

our

website

at

www.SunocoInc.com.

Income Before Special Items*, MM$

1Q06

2Q06

3Q06

4Q06

1Q07

2Q07

3Q07

Refining & Supply

  73

409

273

126

  76

482

171

Non-Refining

  34

  40

  98

  33

  36

  59

  65

Corp. & Net Fin.

  (28)

(23)

(20)

  (36)

  (27)

  (32)

  (20)

   Income Before 

     Special Items

  79

426

351

123

  85

509

216

EPS (Diluted),

Before Special Items

0.59

3.22

2.76

1.00

0.70

4.20

1.81

3

216

509

85

123

351

426

79

$0

$100

$200

$300

$400

$500

$600

* For reconciliation to Net Income, see slide 12.

Non-Refining Business Income* –

3Q07

4

Retail Marketing ($31MM)

Moderating wholesale prices supported retail gasoline

margins for most of the quarter

Chemicals ($13MM)

Strong operating performance and higher sales volumes with

modest margin expansion

Logistics ($14MM)

Earnings higher than prior periods due to strong operations

and lease crude acquisition results

Coke ($7MM)

Earnings reflect unfavorable $6MM after-tax adjustment due

to estimated year-to-date phase-out of alternative fuel tax

credits due to high crude oil prices

* Business Unit Net Income after tax. For reconciliation to Net Income, see slide 12.

Refining & Supply Summary –

3Q07

5

3Q07 Earnings of $171MM

Lower realized margins and earnings than 3Q06 or 2Q07

due primarily to higher crude acquisition costs in both

Northeast and MidContinent

systems…

partially offset by

higher production volumes

Operations

3Q07 net production of 943 MB/D was near record levels

Full quarter of recently expanded and modified fluid catalytic

cracker provided flexibility in volatile Northeast market

Strong MidContinent

production despite completion of Tulsa

turnaround in early July and minor unscheduled downtime

at Toledo refinery

Refining & Supply Project Update

6

Philadelphia Catcracker

Expansion and Modification

3Q07 unit rate of 84 MB/D with residual fuel input

approximately 23 MB/D

Increased crude slate flexibility

Toledo Crude Unit Debottleneck

Project

All project hardware modifications working as designed

3Q07 crude throughput near historical highs with record

level of jet fuel production

Unplanned refinery outages limited 3Q07 production by

about 5 MB/D and offset much of the project benefit

Crude unit throughput currently limited to 165-170 MB/D

due to fouling issues…

expect 7-8 MB/D of additional light

product production vs. the targeted increase of 15 MB/D

Northeast Refining Margins

7

* Northeast 6-3-2-1 Value-Added

Benchmark. For definition, see slide 19.

Realized Margin vs. Benchmark, $/B

1Q06

2Q06

3Q06

4Q06

1Q07

2Q07

3Q07

Northeast Refining:

Realized Margin

5.35

11.56

8.35

6.23

5.25

12.32

6.35

6-3-2-1  VA*

5.41

12.28

8.00

5.12

8.16

14.15

8.46

Differential

(0.06)

(0.72)

+0.35

+1.11

(2.91)

(1.83)

(2.11)

Actual vs.   

Benchmark:

Crude

(1.19)

(1.06)

(0.58)

(0.26)

(2.24)

(1.66)

(2.14)

Product

1.13

0.3

4

0.93

1.37

(0.67)

(0.17)

0.03

Differential

(0.06)

(0.72)

+0.35

+1.11

(2.91)

(1.83)

(2.11)

1.19

1.06

0.58

0.26

2.24

1.66

2.14

0.00

0.50

1.00

1.50

2.00

2.50

3.00

1Q06

2Q06

3Q06

4Q06

1Q07

2Q07

3Q07

8

Crude Cost vs. Dated Brent +$1.25/B

3Q07 vs. 2Q07(+$0.48/B):

Higher premiums for West African

crudes

partially offset by lower

transportation costs

1.13

0.34

0.93

1.37

(0.67)

(0.17)

0.03

-1.00

-0.50

0.00

0.50

1.00

1.50

2.00

1Q06

2Q06

3Q06

4Q06

1Q07

2Q07

3Q07

Products vs. VA Benchmark, $/B

3Q07 vs. 2Q07 (+$0.20/B):

Improved production mix

partially offset by lower value-

added petrochemical margins

Northeast Refining Margins

MidContinent

Refining Margins

9

Realized Margin vs. Benchmark, $/B

* MidContinent

3-2-1 Benchmark. For definition, see slide 19.

1Q06

2Q06

3Q06

4Q06

1Q07

2Q07

3Q07

MidCont

Refining:

Realized Margin

8.38

15.00

14.90

11.32

11.42

22.14

13.10

3-2-1

Benchmark*

7.92

18.63

14.13

8.58

11.06

28.30

17.02

Differential

+0.46

(3.63)

+0.77

+2.74

+0.36

(6.16)

(3.92)

Actual vs.   

Benchmark:

Crude

0.67

0.58

0.25

1.55

(0.36)

(2.17)

(1.84)

Product

(0.21)

(4.21)

0.52

1.19

0.72

(3.99)

(2.08)

Differential

+0.46

(3.63)

+0.77

+2.74

+0.36

(6.16)

(3.92)

(0.67)

(0.58)

(0.25)

(1.55)

0.36

2.17

1.84

-2.50

-1.50

-0.50

0.50

1.50

2.50

1Q06

2Q06

3Q06

4Q06

1Q07

2Q07

3Q07

10

(0.21)

(4.21)

0.52

1.19

0.72

(3.99)

(2.08)

-5.00

-4.00

-3.00

-2.00

-1.00

0.00

1.00

2.00

1Q06

2Q06

3Q06

4Q06

1Q07

2Q07

3Q07

Products vs. Benchmark, $/B

3Q07 vs. 2Q07 (+$1.91/B):

Improvement primarily related to

actual gasoline production yield

(48%) vs. marker assumption (67%)

in lower margin environment

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

3Q07 vs. 2Q07 (-$0.33/B):

Modest reduction in premium for

Canadian Syncrude

partially

offset by higher-cost WTI time

structure (backwardation)

MidContinent

Refining Margins

Appendix

11

Earnings Profile

12

1Q06

2Q06

3Q06

4Q06

1Q07

2Q07

3Q07

Net Income (MM$ after tax):

Refining & Supply

73

409

273

126

76

482

171

Retail Marketing

-

10

77

(11)

7

30

31

Chemicals

14

8

5

16

9

6

13

Logistics

6

12

7

11

9

10

14

Coke

14

10

9

17

11

13

7

Corporate Expenses

(16)

(11)

(11)

(20)

(15)

(18)

(11)

Net Financing Expenses & Other

(12)

(12)

(9)

(16)

(12)

(14)

(9)

Income Before Special Items

79

426

351

123

85

509

216

Special Items

-

-

-

-

90

-

-

Total Net Income

79

426

351

123

175

509

216

EPS (Diluted), Before Special Items

0.59

3.22

2.76

1.00

0.70

4.20

1.81

EPS (Diluted), Net Income

0.59

3.22

2.76

1.00

1.44

4.20

1.81

Key Margin Indicators

1Q06

2Q06

3Q06

4Q06

1Q07

2Q07

3Q07

Refining & Supply, $/B

   Realized Northeast

  5.35

11.56

  8.35

  6.23

  5.25

12.32

  6.35

   Realized MidContinent

  8.38

15.00

14.90

11.32

11.42

22.14

13.10

      Realized Total R&S

  6.13

12.41

10.13

  7.51

  6.98

14.70

  8.06

Retail Marketing, cpg

   Gasoline

  6.8

  8.4

17.3

6.8

  8.3

10.1

11.1

   Distillate 

12.0

  8.7

10.4

  13.5

16.3

  9.5

  8.1

Chemicals, cpp

   Phenol and Related

  9.1

  7.1

  7.0

    8.7

  8.8

  8.5

  8.7

   Polypropylene

13.2

11.1

12.2

  12.9

12.7

11.4

11.7

      Total Chemicals

10.9

  8.8

  9.3

  10.5

10.5

  9.7

10.0

Dated Brent Crude Oil, $/B

61.88

69.65

69.41

59.74

57.28

68.77

74.84

Natural Gas, $/DT

  7.88

  6.67

  6.14

  7.26

  7.18

  7.65

  6.24

13

Key Volume Indicators

1Q06

2Q06

3Q06

4Q06

1Q07

2Q07

3Q07

Refining & Supply

   Northeast:

     Crude Throughputs, MB/D

610

640

612

603

539

614

643

     % Capacity

  93

  98

  93

  92

  82

  94

  98

     Net Prod. Available for Sale, MB/D

664

698

658

662

599

671

703

   MidContinent:

     Crude Throughputs, MB/D

225

224

238

211

223

205

230

     % Capacity

  92

  92

  97

86

  91

  84

  90 

     Net Prod. Available for Sale, MB/D

233

231

246

221

232

215

240

   Total Refining & Supply:

     Crude Throughputs, MB/D

835

864

850

814

762

819

873

     % Capacity

  93

  96

  94

  90

  85

  91

  96

     Net Prod. Available for Sale, MB/D

897

928

904

883

831

886

943

     Net Prod. Available for Sale, MMB

  81

  84

  83

  81

  75

  81

  87

14

Key Volume Indicators

1Q06

2Q06

3Q06

4Q06

1Q07

2Q07

3Q07

Retail Marketing

   Gasoline Sales, MM gal

1,086

1,181

1,202

1,179

1,131

1,175

1,170

   Middle Distillate Sales, MM gal

   176

   158

   158

   165

   177

   152

   144

      Total Sales, MM gal

1,262

1,339

1,360

1,344

1,308

1,327

1,314

   Gasoline and Diesel Throughput 

     (Company-owned or leased outlets)

     (M gal/Site/Month)

  132

  143

  150

   149

   142

   152

   154

   Merchandise Sales (M$/Store/Month)

     71

82

     87

    80

     76

     87

     91

Chemicals

   Phenol and Related Sales, MM#

   633

   663

   607

  632

   592

   644

   633

   Polypropylene Sales, MM#

   562

   569

   550

  562

   548

   576

   623

   Other Sales, MM#

     21

     21

     21

    25

     20

     22

     19

      Total, MM#

1,216

1,253

1,178

1,219

1,160

1,242

1,275

Coke

   Production, M tons:

      United States

   631

  627

  620

  632

   611

   620

   621

      Brazil

   - 

   -

   -

   -

     32

   237

   403

15

Share Repurchase Activity

Shares

Repurchased

Total

Cost

Average

Price     

(MM)

(MM$)

($/share)

2000

10.4

   144

13.87

2001

21.4

   393

18.32

2002

  --  

   --

--

2003

  5.8

   136

23.36

2004

15.9

   568

35.68

2005 

  6.7

   435

64.57

2006

12.2

   871

71.13

1H07

  1.2

   100

83.19

3Q07

  2.8

   200

71.96

   Total

76.4

2,847

37.20

At 9/30/07:

Shares O/S = 117.6 MM

Net Share Reduction in 2007 = 3%

Remaining Authorization = $649MM

16

Financial Ratios

3/31/06

6/30/06

9/30/06

12/31/06

3/31/07

6/30/07

9/30/07

Total Debt (GAAP Basis)

1,524

1,438

1,497

1,987

2,086

1,973

2,039

Plus: Debt Guarantees

       6

       6

      6

    5

       5

       4

       3

Less: Cash

   (361)

   (600)

  (218)

  (263)

   (222)

   (240)

   (263)

Net Debt (Revolver Covenant Basis)

1,169

   844

1,285

1,729

1,869

1,737

1,779

Shareholders’ Equity (GAAP Basis)

2,027

2,295

2,126

2,075

2,159

2,576

2,566

SXL * Minority Interest

   394

   506

   502

   503

   349

   348

   353

Equity (Revolver Covenant Basis)

2,421

2,801

2,628

2,578

2,508

2,924

2,919

Debt / Capital (GAAP Basis)

43%

39%

41%

49%

49%

43%

44%

Net Debt / Capital ** 

(Revolver Covenant Basis)

33%

23%

33%

40%

43%

37%

38%

*

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.

17

Refining & Supply -

3Q07 Gasoline and Distillate Production

Northeast

Refining

MidContinent

Refining

Total

Refining 

& Supply

Gasoline Production, MB/D

342.7

114.2

456.9

   RFG

53%

   0%

40%

   Conventional

47%

100%

60%

Distillate Production, MB/D

249.8

79.2

329.0

   On-Road Diesel Fuel

57%

35%

52%

   Heating Oil / Off-Road Diesel

27%

25%

26%

   Jet Fuel

14%

40%

20%

   Kerosene / Other

  2%

  0%

  2%

18

Sunoco Refinery Benchmark Margins

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

19

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

Northeast 6-3-2-1 Value-Added Benchmark

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

3 Gasoline: 50% Unleaded RBOB NY Harbor Barge Platt's Low

50% Unleaded Regular Gasoline NY Harbor Barge Platt's Low

2 Distillate: 55% ULSD/LSD NY Harbor Barge Platt's Low

20% Jet/Kero

NY Harbor Barge Platt's Low

25% No.2 Fuel Oil NY Harbor Barge Platt's Low

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

1Q06

2Q06

3Q06

4Q06

1Q07

2Q07

3Q07

Northeast Refining:

   6-3-2-1 Benchmark

  4.49

   8.76

  5.29

  3.68

7.14

11.59

6.96

   6-3-2-1 Value-Added

Benchmark

  5.41

12.28

  8.00

  5.12

8.16

14.15

8.46

1Q06

2Q06

3Q06

4Q06

1Q07

2Q07

3Q07

MidContinent Refining:

   3-2-1 Benchmark

  7.92

18.63

14.13

  8.58

11.06

28.30

17.02

For More Information

20

Media releases and SEC filings are available

on our website at www.SunocoInc.com

Contact for more information:

Terry Delaney

(215) 977-6106

Tom Harr

(215) 977-6764