e8vk
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 21, 2006
SUNOCO LOGISTICS PARTNERS L.P.
(Exact name of registrant as specified in its charter)
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Delaware
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1-31219
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23-3096839 |
(State or other jurisdiction
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(Commission
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(IRS employer |
of incorporation)
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file number)
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identification no.) |
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Ten Penn Center, 1801 Market Street, Philadelphia, PA
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19103-1699 |
(Address of principal executive offices)
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(Zip Code) |
866-248-4344
Registrants telephone number, including area code
NOT APPLICABLE
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant
to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
TABLE OF CONTENTS
Item 2.02. Results of Operations and Financial Condition.
The press release announcing the financial results for Sunoco Logistics Partners L.P.s (the
Partnership) 2006 first quarter is attached as Exhibit 99.1 and is incorporated herein by
reference.
The information in this report, being furnished pursuant to Item 2.02 and 7.01 of Form 8-K, shall
not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, as
amended (the Exchange Act), or otherwise subject to the liabilities of that Section, and is not
incorporated by reference in any filing under the Securities Act of 1933, as amended, or the
Exchange Act, except as expressly set forth by specific reference in such filing.
Item 7.01. Regulation FD Disclosure.
On
April 20, 2006, the Partnership issued a press release announcing its financial results for the
first quarter 2006. Additional information concerning the Partnerships first quarter earnings was
presented to investors in a teleconference call April 21, 2006. A copy of the slide presentation is
attached as Exhibit 99.2 and is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
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(c)
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Exhibit |
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99.1 Press release dated April 20, 2006. |
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99.2 Slide presentation given April 21, 2006 during investor teleconference. |
Forward-Looking Statement
Statements contained in the exhibits to this report that state the Partnerships or its
managements expectations or predictions of the future are forward-looking statements. The
Partnerships actual results could differ materially from those projected in such forward-looking
statements. Factors that could affect those results include those mentioned in the documents that
the Partnership has filed with the Securities and Exchange Commission.
2 of 6
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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SUNOCO LOGISTICS PARTNERS L.P. |
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By: Sunoco Partners LLC, its General Partner |
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(Registrant) |
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Date April 21, 2006 |
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/s/ Jennifer L. Andrews |
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Jennifer L. Andrews |
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Comptroller |
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(Principal Accounting Officer) |
3 of 6
EXHIBIT INDEX
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Exhibit Number |
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Exhibit |
Exhibit 99.1
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Press Release dated April 20,
2006 |
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Exhibit 99.2
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Slide presentation given
April 21, 2006 during investor teleconference. |
4 of 6
exv99w1
Exhibit 99.1
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News
Release
Sunoco Logistics Partners L.P.
1735 Market Street
Philadelphia, Pa. 19103-7583 |
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For further information contact:
Jerry Davis (media) 215-977-6298
Colin Oerton (investors) 866-248-4344
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For release: 4:15 p.m. April 20, 2006 |
No. 9
SUNOCO LOGISTICS PARTNERS L.P. REPORTS FIRST QUARTER 2006 RESULTS
AND DECLARES INCREASED FIRST QUARTER DISTRIBUTION
PHILADELPHIA,
April 20, 2006, Sunoco Logistics Partners L.P. (NYSE: SXL) today announced
net income for the first quarter ended March 31, 2006 of $18.4 million, or $0.66 per limited
partner unit on a diluted basis, compared with $15.3 million for the first quarter 2005, or $0.59
per limited partner unit on a diluted basis. The 20.4 percent quarter over quarter increase of
$3.1 million was due mainly to the operating results of acquisitions completed in 2005, higher
Western Pipeline System lease acquisition margins, and an increase in total shipments in the
Eastern Pipeline System, partially offset by $2.9 million of costs related to the relocation of the
Western area headquarters from Tulsa, Oklahoma to Sugar Land, Texas, which was substantially
completed during the quarter.
Sunoco Partners LLC, the general partner of Sunoco Logistics Partners L.P., also declared an
increased cash distribution for the first quarter 2006 of $0.75 per common and subordinated
partnership unit ($3.00 annualized) payable May 15, 2006 to unitholders of record on May 8, 2006,
an increase of $0.0375 per partnership unit over the preceding quarter ($0.15 annualized increase).
First quarter earnings were a record level of $18.4 million, a 20.4 percent increase over the
prior years first quarter, said Deborah M. Fretz, President and Chief Executive Officer.
Contributions from recent acquisitions combined with continued ratable earnings from the base
business resulted in the record performance. The acquisition of two crude oil pipeline systems
during the quarter represents a significant addition to our Western System investment platform. As
a result, we announced a 5.3 percent increase in our distribution to unitholders, representing the
eleventh distribution increase in the past twelve quarters. This also represents a 20.0 percent
increase over the first quarter of 2005. We will continue to execute our growth program, and we
recently announced an agreement to acquire a 50 percent interest in a refined products terminal in
Syracuse, New York, which we expect will close within the next 60 days.
During the first quarter 2006, the Partnership completed the acquisitions of two Texas crude
oil pipeline systems for a total of $109.5 million. The Amdel Pipeline and the White Oil Pipeline
systems, acquired from Alon USA Energy, Inc. for $68.0 million, consist of a total of 528 miles of
crude oil pipelines, originating at the Partnerships Nederland, Texas Terminal, and terminating at
Midland, Texas and Alon USAs Big Spring, Texas refinery. Alon USA has agreed to ship a minimum of
15,000 barrels per day under a 10-year, throughput and deficiency agreement on the pipelines. These
pipelines, currently idled, are scheduled to be returned to service on June 1, 2006. The
Partnership also expects to complete an approximate $12 million capital program to expand capacity
on the Amdel Pipeline from 27,000 to 40,000 barrels per day, and to construct new tankage at the
Nederland Terminal to service these new volumes by the end of 2006.
The system acquired from Black Hills Energy, Inc. for $41.5 million consists of (a) the
Millennium Pipeline, a 200-mile, 12-inch crude oil pipeline with 65,000 barrels per day operating
capacity, originating near the Partnerships Nederland Terminal and terminating at Longview, Texas;
(b) the Kilgore Pipeline, a 190-mile, 10-inch crude oil pipeline with 35,000 barrels per day of
operating capacity originating in Kilgore, Texas and terminating at refineries in the Houston,
Texas region; (c) approximately 800,000 shell barrels of storage capacity at Kilgore and Longview,
Texas, 340,000 of which are active; (d) a lease acquisition marketing business; and (e) crude oil
line fill and working inventory. The Partnership also anticipates undertaking an approximate $19.5
million capital program, expected to be completed by the middle of 2007, to connect the Millennium
pipeline to the Nederland Terminal where new tankage will be constructed.
Segmented First Quarter Results
Eastern Pipeline System
Operating income for the Eastern Pipeline System increased $1.2 million to $9.9 million for
the first quarter 2006 from $8.7 million for the first quarter 2005. This increase was primarily
the result of a $1.8 million increase in sales and other operating revenue and a $0.6 million
decrease in selling, general and administrative expenses, partially offset by a $1.1 million
decrease in other income. Sales and other operating revenue increased from $23.5 million for the
prior years quarter to $25.3 million for the first quarter 2006 mainly due to an increase in total
shipments partially offset by a decrease in revenue per barrel mile. The increase in shipments was
due principally to higher throughput on the Marysville to Toledo crude oil pipeline due to
increased production at two third-party Canadian synthetic crude oil plants which experienced
reduced production in 2005 as a result of fire damage, and higher demand due to expansion of a
Detroit refinery served by the Marysville pipeline. Other income decreased $1.1 million to $2.0
million for the first quarter 2006, due principally to reduced pipeline volumes experienced by one
of the Partnerships joint venture interests.
Terminal Facilities
The Terminal Facilities business segment had operating income of $9.4 million for the first
quarter 2006, as compared to $9.5 million for the prior years first quarter. Total revenues
increased $1.2 million from the prior years first quarter to $29.1 million for the first quarter
2006 due primarily to an increase in revenues at the Partnerships Nederland Terminal. Operating
expenses increased $1.5 million from the prior years first quarter to $12.6 million for the first
quarter 2006 due principally to timing of scheduled maintenance activity and higher utilities
costs.
Western Pipeline System
Operating income for the Western Pipeline System increased $3.1 million to $5.4 million for
the first quarter 2006 from $2.3 million for the first quarter 2005. The increase was primarily
the result
of higher lease acquisition margins, and higher crude oil pipeline volumes, including the results
from the Corsicana to Wichita Falls, Texas crude oil pipeline system acquired in August 2005. The
increased revenues were partially offset by increases in operating expenses, depreciation and
selling, general administrative expenses. Total revenues and cost of products sold and operating
expenses increased in the first quarter 2006 compared with the prior years quarter due principally
to an increase in the price of crude oil. The average price of West Texas Intermediate crude oil
at Cushing, Oklahoma, increased to an average price of $63.53 per barrel for the first quarter 2006
from $49.90 per barrel for the first quarter 2005. Depreciation and amortization increased by $1.2
million due principally to the acquisitions of the Corsicana to Wichita Falls, Texas crude oil
pipeline in August 2005 and the Millennium and Kilgore, Texas crude oil pipeline system in March
2006. Selling, general and administrative expenses increased $3.5 million due principally to $2.9
million of costs related to the Western area headquarters relocation from Tulsa to Sugar Land, as
well as increased costs associated with the acquired assets. The relocation to Sugar Land was
substantially completed in the first quarter 2006.
Other Analysis
Financing Costs
Net interest expense increased $1.0 million to $6.2 million for the first quarter 2006 from
$5.2 million for the prior years quarter due to increased borrowings and higher interest rates on
borrowings under the Partnerships credit facility, partially offset by a $0.6 million increase in
capitalized interest. Total debt outstanding at March 31, 2006 of $465.1 million consists of
$249.0 million of the Senior Notes and $216.1 million of borrowings under the Partnerships credit
facility. The Partnership increased the borrowings under its credit facility by $109.5 million
during the first quarter 2006 to fund the acquisitions of the Millennium and Kilgore pipelines and
the Amdel and White Oil pipelines in March 2006.
Capital Expenditures
Maintenance capital expenditures increased $1.5 million from the first quarter of 2005 to $6.4
million for the first quarter 2006 due primarily to $2.8 million in capital expenditures related to
the Western area headquarters relocation, partially offset by a decrease in scheduled maintenance
activity due to differences in timing compared to the prior year. Management anticipates
maintenance capital expenditures to be approximately $25.0 million for the year ended December 31,
2006, excluding the $2.8 million related to the Western area headquarters relocation.
Expansion capital expenditures in the first quarter of 2006 include the acquisitions of the
Millennium and Kilgore pipelines and the Amdel and White Oil pipelines in March 2006, continuing
construction at Nederland of two new crude oil storage tanks with total capacity of approximately
1.1 million barrels, and installation of ethanol blending facilities at a number of refined product
terminals.
Sunoco Logistics Partners L.P.
Financial Highlights
(in thousands, except units and per unit amounts)
(unaudited)
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Three Months Ended |
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March 31, |
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2006 |
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2005 |
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Income Statement |
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Sales and other operating revenue |
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$ |
1,260,971 |
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$ |
1,011,849 |
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Other income |
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2,391 |
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3,627 |
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Total Revenues |
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1,263,362 |
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1,015,476 |
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Cost of products sold and operating expenses |
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1,214,786 |
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974,911 |
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Depreciation and amortization |
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8,946 |
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8,122 |
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Selling, general and administrative expenses |
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15,003 |
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11,917 |
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Total costs and expenses |
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1,238,735 |
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994,950 |
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Operating income |
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24,627 |
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20,526 |
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Net interest expense |
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6,203 |
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5,228 |
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Net Income |
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$ |
18,424 |
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$ |
15,298 |
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Calculation of Limited Partners interest: |
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Net Income |
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$ |
18,424 |
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$ |
15,298 |
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Less: General Partners interest |
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(1,344 |
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(922 |
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Limited Partners interest in Net Income |
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$ |
17,080 |
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$ |
14,376 |
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Net Income per Limited Partner unit: |
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Basic |
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$ |
0.66 |
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$ |
0.60 |
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Diluted |
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$ |
0.66 |
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$ |
0.59 |
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Weighted average Limited Partners units
outstanding: |
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Basic |
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25,819,210 |
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24,090,548 |
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Diluted |
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25,944,752 |
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24,288,379 |
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Capital Expenditure Data: |
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Maintenance capital expenditures |
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$ |
6,439 |
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$ |
4,901 |
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Expansion capital expenditures |
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116,913 |
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2,940 |
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Total |
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$ |
123,352 |
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$ |
7,841 |
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March 31, |
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December 31, |
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2006 |
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2005 |
Balance Sheet Data (at period end): |
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Cash and cash equivalents |
$ |
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4,951 |
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$ |
21,645 |
Total debt |
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465,116 |
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355,573 |
Total partners capital |
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520,878 |
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523,411 |
Sunoco Logistics Partners L.P.
Earnings Contribution by Business Segment
(in thousands, unaudited)
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Three Months Ended |
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March 31, |
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2006 |
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2005 |
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Eastern Pipeline System: |
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Sales and other operating revenue |
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$ |
25,276 |
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$ |
23,504 |
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Other income |
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1,972 |
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3,071 |
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Total Revenues |
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27,248 |
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26,575 |
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Operating expenses |
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10,649 |
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10,617 |
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Depreciation and amortization |
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2,650 |
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2,599 |
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Selling, general and administrative
expenses |
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4,068 |
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4,659 |
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Operating Income |
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$ |
9,881 |
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$ |
8,700 |
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Terminal Facilities: |
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Total Revenues |
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$ |
29,120 |
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$ |
27,928 |
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Operating expenses |
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12,557 |
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11,039 |
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Depreciation and amortization |
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3,700 |
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4,084 |
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Selling, general and administrative
expenses |
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3,473 |
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3,268 |
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Operating Income |
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$ |
9,390 |
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$ |
9,537 |
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Western Pipeline System: |
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Sales and other operating revenue |
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$ |
1,206,582 |
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$ |
960,418 |
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Other income |
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412 |
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555 |
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Total Revenues |
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1,206,994 |
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960,973 |
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Cost of products sold and operating
expenses |
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1,191,580 |
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953,255 |
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Depreciation and amortization |
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2,596 |
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1,439 |
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Selling, general and administrative
expenses |
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7,462 |
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3,990 |
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Operating Income |
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$ |
5,356 |
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$ |
2,289 |
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Sunoco Logistics Partners L.P.
Operating Highlights
(unaudited)
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Three Months Ended |
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March 31, |
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2006 |
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2005 |
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Eastern Pipeline System: (1) |
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Total shipments (barrel miles per day) (2) |
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60,988,946 |
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55,600,671 |
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Revenue per barrel mile (cents) |
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0.460 |
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0.470 |
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Terminal Facilities: |
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Terminal throughput (bpd): |
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Refined product terminals |
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383,233 |
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396,022 |
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Nederland terminal |
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489,667 |
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491,911 |
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Refinery terminals (3) |
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693,677 |
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689,789 |
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Western Pipeline System: (1)(4) |
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Crude oil pipeline throughput (bpd) |
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485,007 |
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317,970 |
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Crude oil purchases at wellhead (bpd) |
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181,413 |
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194,848 |
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Gross margin per barrel of pipeline throughput
(cents) (5) |
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28.4 |
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20.0 |
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(1) |
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Excludes amounts attributable to equity ownership interests in the corporate joint
ventures. |
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(2) |
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Represents total average daily pipeline throughput multiplied by the number of miles of
pipeline through which each barrel has been shipped. |
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(3) |
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Consists of the Partnerships Fort Mifflin Terminal Complex, the Marcus Hook Tank Farm and
the Eagle Point Dock. |
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(4) |
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Includes results from the Partnerships purchases of an undivided joint interest in the
Mesa Pipe Line system, the Corsicana to Wichita Falls, Texas pipeline system, and the
Millennium and Kilgore pipeline system from the acquisition dates. |
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(5) |
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Represents total segment sales and other operating revenue minus cost of products sold and
operating expenses and depreciation and amortization divided by crude oil pipeline
throughput. |
An investor call with management regarding our first-quarter results is scheduled for
Friday morning, April 21 at 9:00 am EDT. Those wishing to listen can access the call by dialing
(USA toll free) 1-877-297-3442; International (USA toll) 1-706-643-1335 and requesting Sunoco
Logistics Partners Earnings Call, Conference Code 7070521. 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 Partnerships 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
1-800-642-1687. International callers should dial 1-706-645-9291. Please enter Conference ID
#7070521.
Sunoco Logistics Partners L.P. (NYSE: SXL), headquartered in Philadelphia, is a master limited
partnership formed to acquire, own and operate refined product and crude oil pipelines and terminal
facilities, including those of Sunoco, Inc. The Eastern Pipeline System consists of approximately
1,787 miles of primarily refined product pipelines and interests in four refined products
pipelines, consisting of a 9.4 percent interest in Explorer Pipeline Company, a 31.5 percent
interest in Wolverine Pipe Line Company, a 12.3 percent interest in West Shore Pipe Line Company
and a 14.0 percent interest in Yellowstone Pipe Line Company. The Terminal Facilities consist of
8.9 million barrels of refined product terminal capacity and 19.4 million barrels of crude oil
terminal capacity (including 12.5 million barrels of capacity at the Texas Gulf Coast Nederland
Terminal). The Western Pipeline System consists of approximately 3,635 miles of crude oil
pipelines, located principally in Oklahoma and Texas, a 43.8 percent interest in the West Texas
Gulf Pipe Line Company and a 37.0 percent undivided interest in the Mesa Pipe Line System. For
additional information visit Sunoco Logistics web site at www.sunocologistics.com.
Although Sunoco Logistics Partners L.P. (the Partnership) 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 Partnerships
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 Partnerships Form 10-K filed with the Securities and
Exchange Commission on March 1, 2006. The Partnership undertakes no obligation to update any
forward-looking statements in this release, whether as a result of new information or future
events.
- END -
exv99w2
Exhibit 99.2
First Quarter 2006
Earnings Conference Call
April 21, 2006
Sunoco Logistics Partners L.P.
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Forward-Looking Statement
You should review this slide presentation in conjunction with the first quarter 2006 earnings
conference call for Sunoco Logistics Partners L.P., held on April 21 at 9:00 a.m. EDT. You may listen to
the audio portion of the conference call on our website at www.sunocologistics.com or by dialing (USA toll-
free) 1-877-297-3442. International callers should dial 1-706-643-1335. Please enter Conference ID
#7070521.
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 1-800-642-1687.
International callers should dial 1-706-645-9291. Please enter Conference ID #7070521.
During the call, those statements we make that are not historical facts are forward-looking
statements. Although we believe the assumptions underlying these statements are reasonable, investors are
cautioned that such forward-looking statements involve risks that may affect our business prospects and
performance, causing actual results to differ from those discussed during the conference call. Such risks
and uncertainties include, among other things: our ability to successfully consummate announced
acquisitions and integrate them into existing business operations; the ability of announced acquisitions to be
cash-flow accretive; increased competition; changes in the demand both for crude oil that we buy and sell,
as well as for crude oil and refined products that we store and distribute; the loss of a major customer;
changes in our tariff rates; changes in throughput of third-party pipelines that connect to our pipelines and
terminals; changes in operating conditions and costs; changes in the level 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 terrorist acts and international hostilities.
These and other applicable risks and uncertainties are described more fully in our Form 10-K, filed
with the Securities and Exchange Commission on March 1, 2006. We undertake no obligation to update
publicly any forward-looking statements whether as a result of new information or future events.
2
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Q1 2006 Milestones
First quarter 2006 net income of $18.4 million or $0.66 per L.P. unit, as compared to
$15.3 million or $0.59 per L.P. unit in the prior year's quarter
Net income adversely impacted by $2.9 million of costs related to the Western
headquarters' move
Total increased distribution of $0.0375 ($0.15 annualized) per unit to $0.75 ($3.00
annualized), a 5.3 percent increase over the prior quarter's distribution
Eleventh distribution increase over the past twelve quarters
20.0 percent increase over prior year's first quarter distribution
Completed the acquisitions of two Texas crude oil pipeline systems for $109.5
million in March 2006
Announced on April 17, 2006 the acquisition of a 50% interest in a refined products
terminal located in Syracuse, New York with terminal storage of approximately 550
thousand barrels
3
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Q1 2006 Financial Highlights
($ in millions, unaudited)
4
Three Months Ended
March 31, Three Months Ended
March 31, Three Months Ended
March 31,
2006 2005
Sales and other operating revenue
Other income $ 1,261.0
2.4 $1,011.9
3.6
Total Revenues 1,263.4 1,015.5
Cost of products sold and operating expenses
Depreciation and amortization
Selling, general and administrative expenses
Total costs and expenses 1,214.8
9.0
15.0
1,238.8 974.9
8.1
11.9
995.0
Operating income
Net interest expense 24.7
6.2 20.5
5.2
Net Income $ 18.4 $ 15.3
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Q1 2006 Financial Highlights
5
(amounts in millions, except unit and per unit amounts, unaudited)
Three Months Ended
March 31, Three Months Ended
March 31, Three Months Ended
March 31,
2006 2005
Calculation of Limited Partners' interest:
Net Income
Less: General Partner's interest $ 18.4
(1.3) $ 15.3
(0.9)
Limited Partners' interest in Net Income $ 17.1 $ 14.4
Net Income per Limited Partner unit:
Basic $ 0.66 $ 0.60
Diluted $ 0.66 $ 0.59
Weighted average Limited Partners' units
outstanding (in thousands):
Basic 25,819 24,091
Diluted 25,945 24,288
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Eastern Pipeline System
(amounts in millions, unless otherwise noted, unaudited)
6
Three Months Ended
March 31, Three Months Ended
March 31, Three Months Ended
March 31,
2006 2005
Financial Highlights
Sales and other operating revenue
Other income $ 25.3
2.0 $ 23.5
3.1
Total Revenues 27.3 26.6
Operating expenses
Depreciation and amortization
Selling, general and administrative expenses 10.6
2.7
4.1 10.6
2.6
4.7
Operating income $ 9.9 $ 8.7
Operating Highlights(1)
Total shipments (mm barrel miles per day) (2)
Revenue per barrel mile (cents) 61.0
0.46 55.6
0.47
(1) Excludes amounts attributable to equity ownership interests in the corporate joint ventures.
(2) Represents total average daily pipeline throughput multiplied by the number of miles of pipeline through which each barrel has
been shipped.
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Terminal Facilities
(amounts in millions, unless otherwise noted, unaudited)
7
Three Months Ended
March 31, Three Months Ended
March 31, Three Months Ended
March 31,
2006 2005
Financial Highlights
Total Revenues $ 29.1 $ 27.9
Operating expenses
Depreciation and amortization
Selling, general and administrative expenses
12.6
3.7
3.4
11.0
4.1
3.3
Operating income $ 9.4 $ 9.5
Operating Highlights
Terminal throughput (000's bpd)
Refinery terminals(1)
Nederland terminal
Refined product terminals
693.7
489.7
383.2 689.8
491.9
396.0
(1) Consists of the Partnership's Fort Mifflin Terminal Complex, the Marcus Hook Tank Farm and the Eagle Point Dock.
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Western Pipeline System
8
Excludes amounts attributable to equity ownership interest in the corporate joint venture.
Includes results from the Partnerships' purchase of an undivided joint interest in the Mesa Pipe Line system, the Corsicana to Wichita
Falls, Texas pipeline system, and the Millennium and Kilgore pipeline system from the acquisition dates.
Represents total segment sales and other operating revenue minus cost of products sold and operating expenses and depreciation and
amortization divided by crude oil pipeline throughput.
(amounts in millions, unless otherwise noted, unaudited) Three Months Ended
March 31, Three Months Ended
March 31, Three Months Ended
March 31,
2006 2005
Financial Highlights
Sales and other operating revenue
Other income $ 1,206.6
0.4 $ 960.4
0.6
Total Revenues 1,207.0 961.0
Cost of products sold and operating expenses 1,191.6 953.3
Depreciation and amortization 2.6 1.4
Selling, general and administrative expenses 7.4 4.0
Operating income $ 5.4 $ 2.3
Operating Highlights(1)(2)
Crude oil pipeline throughput (000's bpd) 485.0 318.0
Crude oil purchases at wellhead (000's bpd) 181.4 194.8
Gross margin per barrel of pipeline throughput (cents)(3) 28.4 20.0
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Q1 2006 Financial Highlights
9
(amounts in millions, unaudited)
Three Months Ended
March 31, Three Months Ended
March 31, Three Months Ended
March 31,
2006 2005
Capital Expenditure Data
Maintenance capital expenditures $ 6.4 $ 4.9
Expansion capital expenditures 117.0 2.9
Total $ 123.4 $ 7.8
March 31,
2006
December 31, 2005
Balance Sheet Data (at period end) (Audited)
Cash and cash equivalents $ 5.0 $ 21.6
Total debt 465.1 355.6
Total Partners' Capital 520.9 523.4
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