Company Website:
http://www.sunocologistics.com
PHILADELPHIA -- (Business Wire)
Sunoco Logistics Partners L.P. (NYSE: SXL) (the “Partnership”) today
announced net income attributable to owners for the fourth quarter 2011
of $76 million ($0.60 per unit diluted), compared with $59 million
($0.47 per unit diluted) for the fourth quarter 2010. Net income for the
fourth quarter 2011 includes a $42 million charge to impair certain
assets and account for regulatory obligations associated with the
Partnership’s assets which could be negatively impacted by Sunoco,
Inc.’s (“Sunoco”) announced exit from its refining operations. Excluding
the charge, the Partnership had net income of $118 million ($0.99 per
unit diluted). Highlights of the fourth quarter and full year 2011
include:
-
Adjusted EBITDA for the quarter rose to a record level of $165 million
and $544 million for the full year
-
Record distributable cash flow of $110 million for the quarter and
$388 million for the full year
-
Continued to focus on growth: $665 million of expansion capital
spending, including major acquisitions
-
Completed a three-for-one unit split on December 2, 2011
Sunoco Partners LLC, the general partner of the Partnership, declared a
cash distribution for the fourth quarter 2011 of $0.42 per common unit
($1.68 annualized) to be paid on February 14, 2012 to unit holders of
record on February 8, 2012. This represents the twenty-seventh
consecutive quarterly distribution increase and resulted in a 2.0 times
coverage ratio for the quarterly cash distribution.
“The Partnership had a record year in 2011,” said Lynn L. Elsenhans,
chairman and chief executive officer. “The West Texas crude oil market
and developing shale production areas provided many opportunities for us
to optimize our assets to generate additional cash flow. In addition, we
continue to grow our ratable business which was up 14 percent year over
year. 2011 expansion capital was $665 million, including $494 million of
major acquisitions. Our acquisitions and organic projects over the past
year are in alignment with our goal of creating long-term, sustainable
growth.”
In looking towards expectations for the future, Elsenhans said,
“Although we do not expect market opportunities to be as strong as 2011,
we are excited about the potential to grow our fee-based businesses. Our
Mariner West project with MarkWest Energy to deliver ethane to Canada is
underway. This project is backed by long-term shipper commitments and is
expected to be operational by July 2013. We continue to develop our West
Texas crude expansion project, which is expected to be on-line in the
first quarter of 2013. For 2012, we plan to increase organic capital
spending to approximately $300 million in order to capture more value
from existing assets such as Eagle Point, Nederland and our patented
butane blending technology, as well as Mariner West and the West Texas
crude expansion.”
DETAILS OF FOURTH QUARTER SEGMENT RESULTS
During 2011, the Partnership realigned its reporting segments. Prior to
this date, the Partnership’s Crude Oil Pipeline segment included its
crude oil pipeline and crude oil acquisition and marketing operations.
The Partnership has determined that it is more meaningful to segregate
these into different reporting segments given the growth in the crude
oil acquisition and marketing business. For the purpose of
comparability, certain prior year amounts have been recast to conform to
the current year presentation. Such recasts have no impact on previously
reported consolidated net income.
|
| |
| |
| |
| |
| | | Three Months Ended |
| | | December 31, |
| | | 2011 | | 2010 | | Variance |
| | | (in millions) |
| | | | | | |
|
|
Refined Products Pipelines
| |
$
|
9
| | |
$
|
10
| |
$
|
(1
|
)
|
|
Terminal Facilities
| | |
(11
|
)
| | |
21
| | |
(32
|
)
|
|
Crude Oil Pipelines
| | |
52
| | | |
36
| | |
16
| |
|
Crude Oil Acquisition and Marketing
| |
|
62
|
| |
|
16
| |
|
46
|
|
| | | | | | |
|
| Operating Income | |
$
|
112
| | |
$
|
83
| |
$
|
29
| |
| | | | | | |
|
|
Interest expense, net
| | |
26
| | | |
19
| | |
7
| |
|
Provision for income taxes
| |
|
7
|
| |
|
4
| |
|
3
|
|
| | | | | | |
|
| Net Income | |
$
|
79
| | |
$
|
60
| |
$
|
19
| |
|
Net income attributable to noncontrolling interests
| |
|
3
|
| |
|
1
| |
|
2
|
|
| | | | | | |
|
| Net income attributable to Sunoco Logistics Partners L.P. | |
$
|
76
|
| |
$
|
59
| |
$
|
17
|
|
| | | | | | | | | | | |
|
Refined Products Pipelines
Operating income for the fourth quarter 2011 decreased compared to the
prior year period due primarily to higher operating expenses and
decreased equity income from the Partnership’s joint ventures. Higher
operating expenses were due largely to increased property taxes and
reduced pipeline operating gains. Contributions from the 2011
acquisition of a controlling financial interest in the Inland pipeline
system partially offset these reductions in operating income.
Terminal Facilities
Operating income for the fourth quarter 2011 decreased compared to the
prior year period due to a $42 million charge to impair certain terminal
assets and recognize the associated regulatory obligations discussed
below. Excluding the charge, operating income increased compared to the
prior year period due primarily to expansion of the Partnership’s
refined products acquisition and marketing activities, which include
butane blending services, as well as contributions from the acquisition
of the Eagle Point tank farm in 2011.
Crude Oil Pipelines
Operating income for the fourth quarter 2011 increased from the prior
year period to a record level due primarily to higher pipeline fees
which benefited from tariff increases from the prior year period and
increased demand for West Texas crude oil. Lower operating expenses,
driven primarily by increased pipeline operating gains and lower
environmental expenses, further contributed to the improved performance.
Crude Oil Acquisition and Marketing
Operating income for the fourth quarter 2011 increased from the prior
year period to a record level due primarily to expanded crude oil
volumes and margins, which benefited from market-related opportunities.
Operating results were further improved by increased volumes from the
recently acquired crude oil acquisition and marketing assets from Texon
L.P.
Financing Update
Net interest expense increased compared to the prior year period. Higher
interest expense related to the third quarter 2011 offering of $600
million of Senior Notes was partially offset by decreased borrowings
under the Partnership’s revolving credit facilities compared to 2010. At
December 31, the Partnership’s total debt balance was $1.7 billion, with
no borrowings under its revolving credit facilities. In the fourth
quarter 2011, the Partnership repaid the $100 million promissory note to
Sunoco, Inc. using cash flows from operations.
Impairment Charge and Related Matters
In the third quarter 2011, Sunoco announced its intention to sell its
Philadelphia and Marcus Hook, PA refineries. If arrangements for a sale
cannot be made, Sunoco intends to idle the facilities by July 2012.
During the fourth quarter 2011, Sunoco indefinitely idled its Marcus
Hook refinery. The Partnership assessed the impact that Sunoco’s
intention to exit the refining business will have on the Partnership’s
assets and recognized a $42 million charge in the fourth quarter 2011
for certain terminal assets which could be negatively impacted if the
refineries are permanently idled. The charge included a $31 million
non-cash impairment for asset write-downs and $11 million for regulatory
obligations which could be required if certain terminal assets were
idled.
UNIT SPLIT
On December 2, 2011, the Partnership completed a three-for-one split of
the Partnership’s common units and Class A units. The unit split
resulted in the issuance of two additional common and Class A units for
every one unit owned as of the record date of November 18, 2011. The
Partnership had 99.4 million limited partnership units and 3.9 million
Class A units outstanding at December 31, 2011.
CAPITAL EXPENDITURES |
| |
| |
|
| | | | | |
| | | Twelve Months Ended |
| | | December 31, |
| | | 2011 | | 2010 |
| | | (in millions) |
| | | | |
|
|
Maintenance capital expenditures
| |
$
|
42
| |
$
|
37
|
|
Expansion capital expenditures
| | |
171
| | |
137
|
|
Major acquisitions (1) | |
|
494
| |
|
252
|
| | | | |
|
| Total | |
$
|
707
| |
$
|
426
|
| | | | | | |
|
|
(1)
|
|
Includes July 2011 acquisition of the Eagle Point tank farm from
Sunoco for $100 million, consisting of: Class A (deferred
distribution) units with a fair value of $98 million and $2 million
in cash. This related party transaction was recorded at Sunoco’s
carrying value of $22 million under generally accepted accounting
principles.
|
| |
|
The Partnership’s expansion capital spending for the twelve months ended
December 31, 2011 includes projects to expand upon the Partnership’s
butane blending services, increase tankage at the Nederland facility,
increase connectivity of the crude oil pipeline assets in Texas and
increase the Partnership’s crude oil trucking fleet to meet the demand
for transportation services in the southwest United States. Major
acquisitions during the twelve months ended December 31, 2011 include a
crude oil acquisition and marketing business, a controlling financial
interest in the Inland refined products pipeline system, the Eagle Point
tank farm, and a refined products terminal in East Boston. The
Partnership expects to invest approximately $300 million in expansion
capital during 2012, excluding major acquisitions. In addition, the
Partnership expects its maintenance capital spending to be approximately
$50 million in 2012.
INVESTOR CALL
An investor call with management regarding the Partnership’s fourth
quarter results is scheduled for Thursday January 26 at 4:30 pm ET.
Those wishing to listen can access the call by dialing (USA toll free)
888-790-3592; International (USA toll) 517-308-9379 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. Individuals wishing to listen to the call on the
Partnership’s web site will need Windows Media Player, which can be
downloaded free of charge from Microsoft or from Sunoco Logistics
Partners’ conference call page. Please allow at least fifteen minutes to
complete the download. Audio replays of the conference call will be
available for two weeks after the conference call beginning
approximately two hours following the completion of the call. To access
the replay, dial 888-282-0036. International callers should dial
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 pipeline, terminalling and crude oil acquisition and
marketing assets. The Refined Products Pipelines segment consists of
approximately 2,500 miles of refined products pipelines located in the
northeast, midwest and southwest United States, and equity interests in
four refined products pipelines. The Crude Oil Pipelines segment
consists of approximately 5,400 miles of crude oil pipelines, located
principally in Oklahoma and Texas. The Terminal Facilities segment
consists of approximately 42 million shell barrels of refined products
and crude oil terminal capacity (including approximately 22 million
shell barrels of capacity at the Nederland Terminal on the Gulf Coast of
Texas and approximately 5 million shell barrels of capacity at the Eagle
Point terminal on the banks of the Delaware River in New Jersey). The
Crude Oil Acquisition and Marketing segment consists of acquisition and
marketing of crude oil and is principally conducted in the midcontinent
and consists of approximately 140 crude oil transport trucks and
approximately 110 crude oil truck unloading facilities.
This release is intended to be a qualified notice under Treasury
Regulation Section 1.1446-4(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 Form 10-K filed with the Securities and Exchange
Commission on February 23, 2011. 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, |
| | 2011 | | 2010 | | Variance |
| | (in millions) |
| Income Statement: | | | | | | |
|
Sales and other operating revenue
| |
$
|
3,376
| | |
$
|
2,223
| | |
$
|
1,153
| |
|
Other income
| |
|
4
|
| |
|
5
|
| |
|
(1
|
)
|
| | | | | |
|
|
Total revenues
| | |
3,380
| | | |
2,228
| | | |
1,152
| |
|
Cost of products sold and operating expenses
| | |
3,178
| | | |
2,103
| | | |
1,075
| |
|
Depreciation and amortization expense
| | |
25
| | | |
19
| | | |
6
| |
|
Impairment charge and related matters
| | |
42
| | | |
3
| | | |
39
| |
|
Selling, general and administrative expenses
| |
|
23
|
| |
|
20
|
| |
|
3
|
|
| | | | | |
|
|
Total costs and expenses
| | |
3,268
| | | |
2,145
| | | |
1,123
| |
| | | | | |
|
| Operating Income | | |
112
| | | |
83
| | | |
29
| |
|
Interest cost and debt expense
| | |
28
| | | |
21
| | | |
7
| |
|
Capitalized interest
| |
|
(2
|
)
| |
|
(2
|
)
| |
|
—
|
|
| | | | | |
|
| Income Before Provision for Income Taxes | | |
86
| | | |
64
| | | |
22
| |
| | | | | |
|
|
Provision for income taxes
| |
|
7
|
| |
|
4
|
| |
|
3
|
|
| | | | | |
|
| Net Income | | |
79
| | | |
60
| | | |
19
| |
|
Net Income attributable to noncontrolling interests
| |
|
3
|
| |
|
1
|
| |
|
2
|
|
| | | | | |
|
| Net Income attributable to Sunoco Logistics Partners L.P. | |
$
|
76
|
| |
$
|
59
|
| |
$
|
17
|
|
| | | | | |
|
| | | | | |
|
| Calculation of Limited Partners’ interest: | | | | | | |
|
Net Income attributable to Sunoco Logistics Partners L.P.
| |
$
|
76
| | |
$
|
59
| | |
$
|
17
| |
|
Less: General Partner’s interest
| |
|
(14
|
)
| |
|
(12
|
)
| |
|
(2
|
)
|
| | | | | |
|
|
Limited Partners’ interest in Net Income
| |
$
|
62
|
| |
$
|
47
|
| |
$
|
15
|
|
| | | | | |
|
| Net Income per Limited Partner unit: | | | | | | |
|
Basic
| |
$
|
0.60
|
| |
$
|
0.47
|
| | |
| | | | | |
|
|
Diluted
| |
$
|
0.60
|
| |
$
|
0.47
|
| | |
| | | | | |
|
| Weighted Average Limited Partners’ units outstanding: (1) | | | | | | |
|
Basic
| |
|
103.3
|
| |
|
99.2
|
| | |
| | | | | |
|
|
Diluted
| |
|
103.8
|
| |
|
99.7
|
| | |
| | | | | | | | | |
|
| (1) |
|
Amounts reflect the fourth quarter 2011 three-for-one unit split.
|
|
|
| Sunoco Logistics Partners L.P. |
| Financial Highlights |
| (unaudited) |
|
| |
| |
| |
| | Twelve Months Ended |
| | December 31, |
| |
| 2011 |
| |
| 2010 |
| | Variance |
| | (in millions) |
| Income Statement: | | | | | | |
|
Sales and other operating revenue
| |
$
|
10,905
| | |
$
|
7,808
| | |
$
|
3,097
| |
|
Other income
| |
|
13
|
| |
|
30
|
| |
|
(17
|
)
|
| | | | | |
|
|
Total revenues
| | |
10,918
| | | |
7,838
| | | |
3,080
| |
|
Cost of products sold and operating expenses
| | |
10,264
| | | |
7,398
| | | |
2,866
| |
|
Depreciation and amortization expense
| | |
86
| | | |
64
| | | |
22
| |
|
Impairment charge and related matters
| | |
42
| | | |
3
| | | |
39
| |
|
Selling, general and administrative expenses
| |
|
90
|
| |
|
72
|
| |
|
18
|
|
| | | | | |
|
|
Total costs and expenses
| | |
10,482
| | | |
7,537
| | | |
2,945
| |
| | | | | |
|
| Operating Income | | |
436
| | | |
301
| | | |
135
| |
|
Interest cost and debt expense
| | |
96
| | | |
78
| | | |
18
| |
|
Capitalized interest
| | |
(7
|
)
| | |
(5
|
)
| | |
(2
|
)
|
|
Gain on investments in affiliates
| |
|
—
|
| |
|
128
|
| |
|
(128
|
)
|
| | | | | |
|
| Income Before Provision for Income Taxes | | |
347
| | | |
356
| | | |
(9
|
)
|
| | | | | |
|
|
Provision for income taxes
| |
|
25
|
| |
|
8
|
| |
|
17
|
|
| | | | | |
|
| Net Income | | |
322
| | | |
348
| | | |
(26
|
)
|
|
Net Income attributable to noncontrolling interests
| |
|
9
|
| |
|
2
|
| |
|
7
|
|
| | | | | |
|
| Net Income attributable to Sunoco Logistics Partners L.P. | |
$
|
313
|
| |
$
|
346
|
| |
$
|
(33
|
)
|
| | | | | |
|
| | | | | |
|
| Calculation of Limited Partners’ interest: | | | | | | |
|
Net Income attributable to Sunoco Logistics Partners L.P.
| |
$
|
313
| | |
$
|
346
| | |
$
|
(33
|
)
|
|
Less: General Partner’s interest
| |
|
(54
|
)
| |
|
(48
|
)
| |
|
(6
|
)
|
| | | | | |
|
|
Limited Partners’ interest in Net Income
| |
$
|
259
|
| |
$
|
298
|
| |
$
|
(39
|
)
|
| | | | | |
|
| Net Income per Limited Partner unit: | | | | | | |
|
Basic
| |
$
|
2.56
|
| |
$
|
3.13
|
| | |
| | | | | |
|
|
Diluted
| |
$
|
2.54
|
| |
$
|
3.11
|
| | |
| | | | | |
|
| Weighted Average Limited Partners’ units outstanding: (1) | | | | | | |
|
Basic
| |
|
101.3
|
| |
|
95.2
|
| | |
| | | | | |
|
|
Diluted
| |
|
101.8
|
| |
|
95.7
|
| | |
| (1) |
|
Amounts reflect the fourth quarter 2011 three-for-one unit split.
|
| |
|
|
|
| Sunoco Logistics Partners L.P. |
| Financial Highlights |
| (unaudited) |
|
| |
|
|
| |
| | December 31, |
| |
| 2011 | | | |
| 2010 |
| | (in millions) |
| | | | | |
|
| Balance Sheet Data: | | | | | | |
| | | | | |
|
|
Cash and cash equivalents
| |
$
|
5
| | | |
$
|
2
|
| | | | | |
|
| | | | | |
|
|
Revolving credit facilities (1) | |
$
|
—
| | | |
$
|
31
|
|
Note from affiliate - due May 2013
| | |
—
| | | | |
100
|
|
Senior Notes (net of discounts)
| |
|
1,698
| | | |
|
1,098
|
| | | | | |
|
|
Total Debt
| |
$
|
1,698
| | | |
$
|
1,229
|
| | | | | |
|
| | | | | |
|
|
Sunoco Logistics Partners L.P. Partners’ equity
| |
$
|
1,096
| | | |
$
|
965
|
|
Noncontrolling interests
| |
|
98
| | | |
|
77
|
| | | | | |
|
|
Total Equity
| |
$
|
1,194
| | | |
$
|
1,042
|
| (1) |
|
As of December 31, 2011, the Partnership had available borrowing
capacity of $550 million under its revolving credit facilities.
|
| |
|
|
|
| Sunoco Logistics Partners L.P. |
Selected Financial Data by Business Segment(1) |
| (unaudited) |
|
|
|
| Three Months Ended |
| Twelve Months Ended |
| | December 31, | | December 31, |
| |
| 2011 |
|
|
| 2010 |
|
| Variance | |
| 2011 |
|
|
| 2010 |
|
| Variance |
| | (in millions) | | (in millions) |
| Sales and other operating revenue | | | | |
| | | | | |
| |
|
Refined Products Pipelines (2) | |
$
|
37
| | |
$
|
29
| | |
$
|
8
| | |
$
|
130
| | |
$
|
120
| | |
$
|
10
| |
|
Terminal Facilities (3) | | |
156
| | | |
99
| | | |
57
| | | |
435
| | | |
287
| | | |
148
| |
|
Crude Oil Pipelines (4) | | |
86
| | | |
76
| | | |
10
| | | |
319
| | | |
221
| | | |
98
| |
|
Crude Oil Acquisition and Marketing (5) | | |
3,135
| | | |
2,048
| | | |
1,087
| | | |
10,163
| | | |
7,282
| | | |
2,881
| |
|
Intersegment eliminations
| |
|
(38
|
)
| |
|
(29
|
)
| |
|
(9
|
)
| |
|
(142
|
)
| |
|
(102
|
)
| |
|
(40
|
)
|
| | | | | | | | | | | |
|
|
Total sales and other revenue
| |
$
|
3,376
|
| |
$
|
2,223
|
| |
$
|
1,153
|
| |
$
|
10,905
|
| |
$
|
7,808
|
| |
$
|
3,097
|
|
| | | | | | | | | | | |
|
| | | | | | | | | | | |
|
| Operating income | | | | | | | | | | | | |
|
Refined Products Pipelines (2) | |
$
|
9
| | |
$
|
10
| | |
$
|
(1
|
)
| |
$
|
33
| | |
$
|
44
| | |
$
|
(11
|
)
|
|
Terminal Facilities (3) | | |
(11
|
)
| | |
21
| | | |
(32
|
)
| | |
85
| | | |
95
| | | |
(10
|
)
|
|
Crude Oil Pipelines (4) | | |
52
| | | |
36
| | | |
16
| | | |
181
| | | |
126
| | | |
55
| |
|
Crude Oil Acquisition and Marketing (5) | |
|
62
|
| |
|
16
|
| |
|
46
|
| |
|
137
|
| |
|
36
|
| |
|
101
|
|
| | | | | | | | | | | |
|
|
Total operating income
| |
$
|
112
|
| |
$
|
83
|
| |
$
|
29
|
| |
$
|
436
|
| |
$
|
301
|
| |
$
|
135
|
|
| | | | | | | | | | | |
|
| | | | | | | | | | | |
|
| Depreciation and amortization | | | | | | | | | | | | |
|
Refined Products Pipelines (2) | |
$
|
4
| | |
$
|
3
| | |
$
|
1
| | |
$
|
17
| | |
$
|
15
| | |
$
|
2
| |
|
Terminal Facilities (3) | | |
10
| | | |
8
| | | |
2
| | | |
34
| | | |
26
| | | |
8
| |
|
Crude Oil Pipelines (4) | | |
6
| | | |
7
| | | |
(1
|
)
| | |
25
| | | |
21
| | | |
4
| |
|
Crude Oil Acquisition and Marketing (5) | |
|
5
|
| |
|
1
|
| |
|
4
|
| |
|
10
|
| |
|
2
|
| |
|
8
|
|
| | | | | | | | | | | |
|
|
Total depreciation and amortization
| |
$
|
25
|
| |
$
|
19
|
| |
$
|
6
|
| |
$
|
86
|
| |
$
|
64
|
| |
$
|
22
|
|
| | | | | | | | | | | |
|
| | | | | | | | | | | |
|
| Adjusted earnings before interest, taxes, depreciation and
amortization (Adjusted EBITDA) (6) | | | | | | | | | | | | |
|
Refined Products Pipelines (2) | |
$
|
12
| | |
$
|
13
| | |
$
|
(1
|
)
| |
$
|
49
| | |
$
|
59
| | |
$
|
(10
|
)
|
|
Terminal Facilities (3) | | |
30
| | | |
32
| | | |
(2
|
)
| | |
150
| | | |
124
| | | |
26
| |
|
Crude Oil Pipelines (4) | | |
56
| | | |
42
| | | |
14
| | | |
198
| | | |
145
| | | |
53
| |
|
Crude Oil Acquisition and Marketing (5) | |
|
67
|
| |
|
17
|
| |
|
50
|
| |
|
147
|
| |
|
38
|
| |
|
109
|
|
| | | | | | | | | | | |
|
|
Total Adjusted EBITDA
| |
$
|
165
|
| |
$
|
104
|
| |
$
|
61
|
| |
$
|
544
|
| |
$
|
366
|
| |
$
|
178
|
|
| (1) |
|
In the third quarter 2011, the Partnership realigned its reporting
segments. The updated reporting segments are: Refined Products
Pipelines, Terminal Facilities, Crude Oil Pipelines and Crude Oil
Acquisition and Marketing. The difference in the new reporting is
the separation of the crude oil pipelines and the crude oil
acquisition and marketing operations. For comparative purposes, all
prior period amounts have been recast to reflect the new segment
reporting.
|
| (2) | |
In May 2011, the Partnership acquired a controlling financial
interest in the Inland refined products pipeline. As a result of
this acquisition, the Partnership accounted for this entity as a
consolidated subsidiary. Results from this acquisition are included
from the acquisition date.
|
| (3) | |
In July and August 2011, the Partnership acquired the Eagle Point
tank farm and related assets and a refined products terminal located
in East Boston, Massachusetts, respectively. Results from these
acquisitions are included from their respective acquisition dates.
|
| (4) | |
In July 2010, the Partnership acquired additional interests in
Mid-Valley Pipe Line Company (“Mid-Valley”) and West Texas Gulf
Pipeline Company (“West Texas Gulf”), which previously has been
recorded as equity investments. The Partnership obtained a
controlling financial interest as a result of these acquisitions and
began accounting for these entities as consolidated subsidiaries
from their respective acquisition dates.
|
| (5) | |
In August 2011, the Partnership acquired a crude oil acquisition and
marketing business from Texon L.P. Results from this acquisition are
included from the acquisition date.
|
| (6) | |
Amounts exclude earnings attributable to noncontrolling interests
and include an $11 million charge for regulatory obligations
recognized in the fourth quarter 2011 in connection with the
Partnership’s impairment assessment of certain assets affected by
Sunoco’s announcement to exit its refining operations.
|
| |
|
| Sunoco Logistics Partners L.P. |
Financial and Operating Statistics (1) |
| (unaudited) |
|
| |
| |
| |
| |
| | Three Months Ended | | Twelve Months Ended |
| | December 31, | | December 31, |
| | 2011 | | 2010 | | 2011 | | 2010 |
| | (in millions) |
| Operating Income | | | | | | | | |
| | | | | | | |
|
|
Refined Products Pipelines
| |
$
|
9
| | |
$
|
10
| |
$
|
33
| |
$
|
44
|
|
Terminal Facilities
| | |
(11
|
)
| | |
21
| | |
85
| | |
95
|
|
Crude Oil Pipelines
| | |
52
| | | |
36
| | |
181
| | |
126
|
|
Crude Oil Acquisition and Marketing
| |
|
62
|
| |
|
16
| |
|
137
| |
|
36
|
| | | | | | | |
|
|
Total Operating Income
| |
$
|
112
|
| |
$
|
83
| |
$
|
436
| |
$
|
301
|
| | | | | | | |
|
| | | |
|
| | Three Months Ended | | Twelve Months Ended |
| | December 31, | | December 31, |
| | 2011 | | 2010 | | 2011 | | 2010 |
| Operating Highlights | | | | | | | | |
| | | | | | | |
|
| Refined Products Pipelines:(2)(3) | | | | | | | | |
|
Pipeline throughput (thousands of bpd)
| | |
599
| | | |
442
| | |
522
| | |
468
|
|
Pipeline revenue per barrel (cents)
| | |
67.5
| | | |
71.7
| | |
68.3
| | |
70.0
|
| | | | | | | |
|
| Terminal Facilities:(4) | | | | | | | | |
|
Terminal throughput (thousands of bpd):
| | | | | | | | |
|
Refined products terminals
| | |
514
| | | |
502
| | |
492
| | |
488
|
|
Nederland terminal
| | |
692
| | | |
724
| | |
757
| | |
729
|
|
Refinery terminals
| | |
505
| | | |
434
| | |
443
| | |
465
|
| | | | | | | |
|
| Crude Oil Pipelines:(2)(5) | | | | | | | | |
|
Pipeline throughput (thousands of bpd)
| | |
1,577
| | | |
1,592
| | |
1,587
| | |
1,183
|
|
Pipeline revenue per barrel (cents)
| | |
58.9
| | | |
50.9
| | |
55.0
| | |
50.7
|
| | | | | | | |
|
| Crude Oil Acquisition and Marketing: (6)(7) | | | | | | | | |
|
Crude oil purchases (thousands of bpd)
| | |
690
| | | |
606
| | |
663
| | |
638
|
|
Gross margin per barrel purchased (cents) (8) | | |
103.4
| | | |
35.6
| | |
61.9
| | |
20.0
|
|
Average crude oil price (per barrel)
| |
$
|
94.02
| | |
$
|
85.18
| |
$
|
95.14
| |
$
|
79.55
|
| | | | | | | | | | | | |
|
|
| Sunoco Logistics Partners L.P. |
| | Financial and Operating Statistics Notes |
| | (unaudited) |
| |
|
| (1) | |
During 2011, the Partnership realigned its reporting segments. The
updated reporting segments are: Refined Products Pipelines, Terminal
Facilities, Crude Oil Pipelines and Crude Oil Acquisition and
Marketing. The difference in the new reporting is the separation of
the crude oil pipeline and the crude oil acquisition and marketing
operations. For comparative purposes, all prior period amounts have
been recast to reflect the new segment reporting.
|
| (2) | |
Excludes amounts attributable to equity interests which are not
consolidated.
|
| (3) | |
In May 2011, the Partnership acquired a controlling financial
interest in the Inland refined products pipeline. As a result of
this acquisition, the Partnership accounted for this entity as a
consolidated subsidiary from the acquisition date. Volumes for the
twelve months ended December 31, 2011 of 88 thousand bpd and the
related revenue per barrel, have been included in the consolidated
total. From the date of acquisition, this pipeline had actual
throughput of approximately 140 thousand bpd for the twelve months
ended December 31, 2011.
|
| (4) | |
In July 2011 and August 2011, the Partnership acquired the Eagle
Point tank farm and a refined products terminal located in East
Boston, Massachusetts, respectively. Volumes and revenues for these
acquisitions are included from their acquisition dates.
|
| (5) | |
In July 2010, the Partnership acquired additional interests in the
Mid-Valley and West Texas Gulf crude oil pipelines, which previously
had been recorded as equity investments. The Partnership obtained a
controlling financial interest as a result of these acquisitions and
began accounting for these entities as consolidated subsidiaries
from their respective acquisition dates. Volumes for the twelve
months ended December 31, 2010 of 278 thousand bpd have been
included in the consolidated total. From the date of acquisition,
these pipelines had actual throughput of approximately 696 thousand
bpd for the twelve months ended December 31, 2010. The amounts
presented for the twelve month periods ended December 31, 2011
include amounts attributable to these systems for the entire period.
|
| (6) | |
Includes results from the crude oil acquisition and marketing
business acquired from Texon L.P. in August 2011 from the
acquisition date.
|
| (7) | |
The Crude Oil Acquisition and Marketing segment gathers,
purchases, markets and sells crude oil principally in Oklahoma and
Texas. The segment consists of approximately 140 crude oil
transport trucks; and approximately 110 crude oil truck unloading
facilities.
|
| (8) | |
Represents total segment sales and other operating revenue minus
cost of products sold and operating expenses and depreciation and
amortization divided by total crude purchases.
|
| |
|
| Sunoco Logistics Partners L.P. |
| Non-GAAP Financial Measures |
| (unaudited) |
|
| |
| |
| |
| |
| | Three Months Ended | | Twelve Months Ended |
| | December 31, | | December 31, |
| | 2011 | | 2010 | | 2011 | | 2010 |
| | (in millions) |
| Net Income attributable to Sunoco Logistics Partners L.P. | |
$
|
76
| | |
$
|
59
| | |
$
|
313
| | |
$
|
346
| |
|
Add: Interest expense, net
| | |
26
| | | |
19
| | | |
89
| | | |
73
| |
|
Add: Depreciation and amortization
| | |
25
| | | |
22
| | | |
86
| | | |
67
| |
|
Add: Impairment charge: non-cash (1) | | |
31
| | | |
—
| | | |
31
| | | |
—
| |
|
Add: Provision for income taxes
| | |
7
| | | |
4
| | | |
25
| | | |
8
| |
|
Less: Gain on investments in affiliates
| |
|
—
|
| |
|
—
|
| |
|
—
|
| |
|
(128
|
)
|
| Adjusted EBITDA(2) | | |
165
| | | |
104
| | | |
544
| | | |
366
| |
|
Less: Interest expense, net
| | |
(26
|
)
| | |
(19
|
)
| | |
(89
|
)
| | |
(73
|
)
|
|
Less: Maintenance capital expenditures
| | |
(22
|
)
| | |
(12
|
)
| | |
(42
|
)
| | |
(37
|
)
|
|
Less: Provision for income taxes
| |
|
(7
|
)
| |
|
(4
|
)
| |
|
(25
|
)
| |
|
(8
|
)
|
| Distributable cash flow(2) | |
$
|
110
|
| |
$
|
69
|
| |
$
|
388
|
| |
$
|
248
|
|
| | | | | | | |
|
| (1) |
|
In the third quarter 2011, Sunoco announced its intention to sell
its Philadelphia and Marcus Hook, PA refineries. If arrangements for
a sale cannot be made Sunoco intends to idle the facilities by July
2012. During the fourth quarter 2011, Sunoco indefinitely idled its
Marcus Hook refinery. The Partnership assessed the impact that
Sunoco’s intention to exit the refining business will have on the
Partnership’s assets and recognized a $42 million charge in the
fourth quarter 2011 for assets which could be negatively impacted if
the refineries are permanently idled. The charge included a $31
million non-cash impairment for asset write-downs and an $11 million
accrual for regulatory obligations which could be required if
certain terminal assets were idled. The accrual for regulatory
obligations was included in the Adjusted EBITDA calculation detailed
above.
|
| (2) | |
Management of the Partnership believes Adjusted 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. 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 generally accepted accounting
principles (GAAP) and may not be comparable to other similarly
titled measures of other businesses.
|
Contacts:
Sunoco Logistics Partners L.P.
Thomas Golembeski (media),
215-977-6298
Peter Gvazdauskas (investors), 215-977-6322
Source: Sunoco Logistics Partners L.P.
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