Sunoco 8-K Sunoco Reports Second Quarter 2008 Results

2Q08 Earnings Conference Call

August 7, 2008

1

Exhibit 99.2

Income (Loss) Before Special Items*, MM$

1Q07

2Q07

3Q07

4Q07

1Q08

2Q08

Refining & Supply

  76

482

171

  43

(123)

32

Non-Refining

  36

  59

  65

   9

84

47

Corp. & Net Fin.

  (27)

  (32)

  (20)

  (29)

(20)

(18)

   Income (Loss)   

   Before Special Items

  85

509

216

  23

(59)

61

EPS (Diluted), Before

Special Items

0.70

4.20

1.81

0.20

(0.50)

0.52

2

* For reconciliation to Net Income (Loss), see slide 15.

2Q08 Summary

3

Net Income excluding special items of $61MM* ($0.52/share)

Refining & Supply earnings of $32MM

Weak gasoline market

Rising crude oil prices negatively impacted margins and

refinery fuel costs

Production limited to approximately 84% utilization due to

maintenance and economics…

but production mix improved

with more distillate and less gasoline / residual fuel.

Non-Refining earnings of $47MM

Rising feedstock costs for Retail Marketing and Chemicals

Solid contributions from Logistics and Coke

* For reconciliation to Net Income, see slide 15.

Refining & Supply Summary –

2Q08

4

2Q08 earnings* of $32MM

Weak gasoline demand/margins limited normal

seasonal improvement

Rising/higher crude oil prices and marine

transportation costs reduced realized margins and

capture versus benchmarks

Operations

Net

refinery

production

of

76

MMB

(840

MB/D)…

84%

of

rated

capacity…

limited

by

maintenance

activity

and

optimization efforts

Improved production mix to produce more distillate

and less residual fuel

Operating expenses increased due to higher fuel and

utility costs

* Business Unit Net Income after tax. For reconciliation to Net Income, see slide 15.

5

Refining & Supply Production Mix

37.8%

36.1%

36.3%

35.5%

34.5%

35.1%

7.5%

8.2%

8.7%

9.7%

9.1%

9.6%

30%

33%

35%

38%

40%

1Q07

2Q07

3Q07

4Q07

1Q08

2Q08

7.5%

8.0%

8.5%

9.0%

9.5%

10.0%

10.5%

11.0%

11.5%

12.0%

Northeast

% of Net Production

Distillate

Residual Fuel

MidContinent

% of Net Production

42.2%

39.9%

46.2%

46.6%

47.6%

51.2%

48.3%

32.6%

34.7%

33.0%

30.8%

32.3%

30%

33%

35%

38%

40%

43%

45%

48%

50%

53%

1Q07

2Q07

3Q07

4Q07

1Q08

2Q08

Distillate

Gasoline

2Q08 Comments:

Less low-valued residual fuel and

more high-valued distillate

2Q08 Comments:

Less gasoline and more high-valued

distillate

Northeast Refining Margins

6

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

Benchmark. For definition, see slide 23.

Realized Margin vs. Benchmark, $/B

1Q07

2Q07

3Q07

4Q07

1Q08

2Q08

Northeast Refining:

Realized Margin

5.25

12.32

6.35

5.55

3.50

7.13

6-3-2-1  VA*

8.16

14.15

8.46

6.99

5.78

10.78

Differential

(2.91)

(1.83)

(2.11)

(1.44)

(2.28)

(3.65)

Actual vs.   

Benchmark:

Crude

(2.24)

(1.66)

(2.14)

(2.40)

(2.92)

(5.81)

Product

(0.67)

(0.17)

0.03

0.96

0.64

2.16

Differential

(2.91)

(1.83)

(2.11)

(1.44)

(2.28)

(3.65)

2.24

1.66

2.14

2.40

2.92

5.81

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

1Q07

2Q07

3Q07

4Q07

1Q08

2Q08

7

Crude Cost vs. Dated Brent +$1.25/B

2Q08 Comments:

Higher transportation costs

Negative timing impact of ~$40/B rise

in crude oil prices from the beginning

to the end of the quarter on ~2.5 MMB

Higher premiums for West African

crudes

offset by increased volumes

of other lower-cost grades

2.16

0.64

0.96

0.03

(0.17)

(0.67)

-1.50

-1.00

-0.50

0.00

0.50

1.00

1.50

2.00

2.50

3.00

1Q07

2Q07

3Q07

4Q07

1Q08

2Q08

Products vs. VA Benchmark, $/B

Northeast Refining Margins

2Q08 Comments:

Favorable production mix versus the

marker (more distillate, less residual

fuel)

Partially offset by rising net cost of

internally produced fuel

MidContinent

Refining Margins

1Q07

2Q07

3Q07

4Q07

1Q08

2Q08

MidCont Refining:

   Realized Margin

11.42

22.14

13.10

7.10

3.21

   6.80

   3-2-1 Benchmark*

11.06

28.30

17.02

7.71

6.12

12.02

      Differential

+0.36

(6.16)

(3.92)

(0.61)

(2.91)

(5.22)

Actual vs.    

   Benchmark:

   Crude

(0.36)

(2.17)

(1.84)

(0.30)

(1.56)

(3.01)

   Product

  0.72

(3.99)

(2.08)

(0.31)

(1.35)

(2.21)

      Differential

+0.36

(6.16)

(3.92)

(0.61)

(2.91)

(5.22)

8

Realized Margin vs. Benchmark, $/B

* MidContinent

3-2-1 Benchmark. For definition, see slide 23.

0.36

2.17

1.84

0.30

1.56

3.01

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

1Q07

2Q07

3Q07

4Q07

1Q08

2Q08

9

0.72

(3.99)

(2.08)

(0.31)

(1.35)

(2.21)

-5.00

-4.00

-3.00

-2.00

-1.00

0.00

1.00

2.00

1Q07

2Q07

3Q07

4Q07

1Q08

2Q08

Products vs. Benchmark, $/B

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

MidContinent

Refining Margins

2Q08 Comments:

Higher costs for Canadian sweet

synthetic crude vs. WTI marker

2Q08 Comments:

Lower realizations on products not

directly linked with higher crude oil

prices

Partially offset by favorable production

mix versus the marker (more distillate,

less gasoline)

230

240

250

260

270

280

290

300

310

320

330

340

350

Retail Marketing –

Breakeven

Retail gasoline margins squeezed in April and May due to

rising wholesale prices

Sales volume decline of 3% vs. 2Q07 on weaker driving

demand

Chemicals –

Earnings of $3MM

Margin contraction vs. 1Q08 on higher feedstock costs

Non-Refining Business Income* -

2Q08

10

* Business

Unit

Net

Income

after

tax.

For

reconciliation

to

Net

Income,

see

slide

15.

Wholesale Gasoline Price, cpg

(87 Regular New York Harbor)

Apr-08

52

54

56

58

60

62

64

66

68

70

72

Mar-08

Apr-08

May-08

Jun-08

Propylene Price, cpp

(Refinery Grade)

May-08

Jun-08

11

Retail Marketing –

Breakeven

Retail gasoline margins squeezed in April and May due to

rising wholesale prices

Sales volume decline of 3% vs. 2Q07 on weaker driving

demand

Chemicals –

Earnings of $3MM

Margin contraction vs. 1Q08 on higher feedstock costs

Logistics –

Earnings of $21MM

Second consecutive record quarter for Sunoco Logistics

Partners L.P. (NYSE: SXL)

Coke –

Earnings of $23MM

Higher price realizations from coal and coke production at

Jewell operations

Ongoing construction projects continue to progress…

Haverhill 2 facility starting production in 3Q08

Expect full-year 2008 net income to be $110-115MM

Non-Refining Business Income* -

2Q08

*

Business

Unit

Net

Income

after

tax.

For

reconciliation

to

Net

Income,

see

slide

15.

3Q08 Outlook

12

Refining & Supply

Refining margins, particularly for gasoline, continue to be

weak

in July

3Q08 refinery utilization expected to reflect the current

challenging market conditions…

optimize crude and

product slate

Non-Refining Businesses

Retail gasoline margins expanded in July due to falling

wholesale prices

Chemical margins continue to be under pressure from

rising propylene feedstock costs

Coke and Logistics earnings relatively stable versus 2Q08

Nigerian Crude Purchases*, MB/D

90

306

319

337

356

0

50

100

150

200

250

300

350

400

2006

2007

1Q08

2Q08

3Q08 Proj

13

* For use in the Northeast Refining system

Appendix

14

Earnings Profile

1Q07

2Q07

3Q07

4Q07

1Q08

2Q08

Net Income (Loss) (MM$ after tax):

   Refining & Supply

    76

482

171

43

(123)

  32

   Retail Marketing

      7

31

  1

  26

  -

   Chemicals

      9

     6

13

  (2)

  18

  3

   Logistics

      9

14

  15

  21

   Coke

    11

13

     7

  (2)

  25

  23

   Corporate Expenses

    (15)

(18)

(11)

(23)

  (17)

  (11)

   Net Financing Expenses & Other

(12)

(14)

   (9)

  (6)

   (3)

   (7)

     Income(Loss) Before Special Items

85

509

216

23

  (59)

  61

         Special Items 

90

  - 

     -

(32)

    -

  21

    Total Net Income (Loss)

175

509

216

(59)

82

  EPS (Diluted), Income (Loss) Before 

     Special Items 

0.70

4.20

1.81

0.20

(0.50)

0.52

  EPS (Diluted), Net Income (Loss)

1.44

4.20

1.81

(0.08) 

(0.50)

0.70

15

10

30

12

(9)

Key Margin Indicators

1Q07

2Q07

3Q07

4Q07

1Q08

2Q08

Refining & Supply, $/B

   Realized Northeast

  5.25

12.32

  6.35

  5.55

  3.50

    7.13

   Realized MidContinent

11.42

22.14

13.10

  7.10

  3.21

    6.80

      Realized Total R&S

  6.98

14.70

  8.06

  5.95

  3.43

    7.04

Retail Marketing, cpg

   Gasoline

    8.3

  10.1

  11.1

    7.7

  11.1

      7.4

   Distillate 

  16.3

    9.5

    8.1

  13.3

  17.0

    11.3

Chemicals, cpp

   Phenol and Related

    8.8

    8.5

    8.7

    7.9

    9.2

      7.5

   Polypropylene

  12.7

  11.4

  11.7

  10.4

  12.5

    11.2

      Total Chemicals

  10.5

    9.7

  10.0

    8.9

  10.6

      9.1

Dated Brent Crude Oil, $/B

57.28

68.77

74.84

88.69

96.90

121.38

Natural Gas, $/DT

  7.18

  7.65

  6.24

  7.39

  8.75

  11.48

16

Key Volume Indicators

1Q07

2Q07

3Q07

4Q07

1Q08

2Q08

Refining & Supply

   Northeast:

     Crude Throughputs, MB/D

539

614

643

647

570

544

     % Capacity

  82

  94

  98

  99

  87

  83

     Net Prod. Available for Sale, MB/D

599

671

703

716

633

610

   MidContinent:

     Crude Throughputs, MB/D

223

205

230

236

208

222

     % Capacity

  91

  84

  90 

  93 

  82

  87

     Net Prod. Available for Sale, MB/D

232

215

240

246

215

230

   Total Refining & Supply:

     Crude Throughputs, MB/D

762

819

873

883

778

766

     % Capacity

  85

  91

  96

  97

  85

  84

     Net Prod. Available for Sale, MB/D

831

886

943

962

848

840

     Net Prod. Available for Sale, MMB

  75

  81

  87

  88

  77

  76

17

Refining & Supply –

Products Manufactured

18

1Q07

2Q07

3Q07

4Q07

1Q08

2Q08

Northeast

Net Production, MB/D

598.9

670.7

703.3

715.5

633.1

610.4

Gasoline

48%

49%

49%

48%

47%

49%

Middle Distillates

35%

34%

36%

36%

36%

38%

Residual Fuel

10%

9%

10%

9%

8%

8%

Petrochemicals

4%

4%

4%

4%

4%

5%

Other

7%

8%

6%

7%

10%

5%

Less Refinery Fuel

-4%

-4%

-5%

-4%

-5%

-5%

MidContinent

Net Production, MB/D

232.4

215.3

239.5

246.5

215.2

229.7

Gasoline

48%

51%

48%

47%

46%

42%

Middle Distillates

32%

31%

33%

35%

33%

40%

Residual Fuel

2%

2%

2%

2%

2%

2%

Petrochemicals

4%

4%

4%

3%

3%

3%

Lubricants

6%

5%

5%

5%

6%

5%

Other

13%

12%

13%

13%

15%

13%

Less Refinery Fuel

-5%

-5%

-5%

-5%

-5%

-5%

Total Refining & Supply

Net Production, MB/D

831.3

886.0

942.8

962.0

848.3

840.1

Gasoline

48%

49%

48%

48%

46%

47%

Middle Distillates

34%

34%

35%

36%

35%

38%

Residual Fuel

7%

7%

8%

7%

7%

6%

Petrochemicals

4%

4%

4%

4%

4%

4%

Lubricants

2%

1%

1%

1%

2%

1%

Other

10%

10%

9%

9%

11%

8%

Less Refinery Fuel

-5%

-5%

-5%

-5%

-5%

-4%

Refining & Supply -

Gasoline and Distillate Production

19

1Q07

2Q07

3Q07

4Q07

1Q08

2Q08

Northeast

Gasoline Production, MB/D

289.3

327.8

342.7

344.8

294.2

296.7

RFG

51%

52%

53%

55%

56%

57%

Conventional

49%

48%

47%

45%

44%

43%

Distillate Production, MB/D

210.1

231.0

249.8

259.7

228.4

229.7

On-Road Diesel Fuel

55%

61%

57%

55%

51%

56%

Heating Oil / Off-Road Diesel

25%

23%

27%

28%

31%

26%

Jet Fuel

16%

14%

14%

15%

15%

17%

Kerosene/Other

4%

2%

2%

2%

3%

1%

MidContinent

Gasoline Production, MB/D

112.1

110.3

114.2

114.8

99.3

96.8

RFG

0%

0%

0%

0%

0%

0%

Conventional

100%

100%

100%

100%

100%

100%

Distillate Production, MB/D

75.3

66.3

79.2

85.4

70.2

92.1

On-Road Diesel Fuel

38%

40%

35%

35%

23%

34%

Heating Oil / Off-Road Diesel

28%

24%

25%

26%

32%

26%

Jet Fuel

34%

36%

40%

39%

45%

40%

Kerosene/Other

0%

0%

0%

0%

0%

0%

Total Refining & Supply

Gasoline Production, MB/D

401.4

438.1

456.9

459.6

393.5

393.5

RFG

37%

39%

40%

41%

42%

43%

Conventional

63%

61%

60%

59%

58%

57%

Distillate Production, MB/D

285.4

297.3

329.0

345.1

298.6

321.8

On-Road Diesel Fuel

51%

56%

52%

50%

44%

50%

Heating Oil / Off-Road Diesel

26%

23%

26%

28%

32%

26%

Jet Fuel

21%

19%

20%

21%

22%

23%

Kerosene/Other

2%

2%

2%

1%

2%

1%

Key Volume Indicators

1Q07

2Q07

3Q07

4Q07

1Q08

2Q08

Retail Marketing

   Gasoline Sales, MM gal

1,131

1,175

1,170

1,138

1,070

1,140

   Middle Distillate Sales, MM gal

   177

   152

   144

   149

   145

   143

      Total Sales, MM gal

1,308

1,327

1,314

1,287

1,215

1,283

   Gasoline and Diesel Throughput 

     (Company-owned or leased outlets) 

     (M gal/Site/Month)

   142

   152

   154

   152

  143

  152

   Merchandise Sales (M$/Store/Month)

     76

     87

     91

     85

   77

   86

Chemicals

   Phenol and Related Sales, MM#

   592

   644

   633

   639

  599

  591

   Polypropylene Sales, MM#

   548

   576

   623

   550

  569

  562

   Other Sales, MM#

     20

     22

     19

     19

    24

    19

      Total, MM#

1,160

1,242

1,275

1,208

1,192

1,172

Coke

   Production, M tons:

      United States

   611

   620

   621

   617

613

614

      Brazil

     32

   237

   403

   419

    388

    404

20

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

2007

  4.0

   300

75.35

1H08

  0.8

     49

63.27

   Total

77.2

2,896

37.46

At 6/30/08:

Shares O/S = 116.9MM

Remaining Authorization = $600MM

21

Financial Ratios

3/31/07

6/30/07

9/30/07

12/31/07

3/31/08

6/30/08

Total Debt (GAAP Basis)

2,086

1,973

2,039

1,728

1,686

1,826

Plus: Debt Guarantees

       5

       4

       3

       3

       3

       3

Less: Cash

   222

   240

   263

   648

   347

   214

Net Debt (Revolver Covenant Basis)

1,869

1,737

1,779

1,083

1,342

1,615

Shareholders’ Equity (GAAP Basis)

2,159

2,576

2,566

2,533

2,367

2,414

SXL * Minority Interest

   349

   348

   353

   356

   359

   367

Equity (Revolver Covenant Basis)

2,508

2,924

2,919

2,889

2,726

2,781

Debt / Capital (GAAP Basis)

49%

43%

44%

41%

  42%

  43%

Net Debt / Capital ** 

(Revolver Covenant Basis)

43%

37%

38%

27%

33%

37%

*

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.

22

Sunoco Refinery Benchmark Margins

23

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

1Q07

2Q07

3Q07

4Q07

1Q08

2Q08

Northeast Refining:

   6-3-2-1 Value-Added

Benchmark

8.16

14.15

8.46

6.99

5.78

10.78

1Q07

2Q07

3Q07

4Q07

1Q08

2Q08

MidContinent Refining:

   3-2-1 Benchmark

11.06

28.30

17.02

7.71

6.12

12.02

For More Information

24

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

Safe Harbor Statement

25

This

slide

presentation

should

be

reviewed

in

conjunction

with

Sunoco’s

Second

Quarter

2008

earnings

conference

call

held

on

August

7,

2008

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#55206089.

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,

2007,

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.