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: April 26, 2011
(Date of earliest event reported): April 26, 2011
SUNOCO LOGISTICS PARTNERS L.P.
(Exact name of registrant as specified in its charter)
| Delaware | 1-31219 | 23-3096839 | ||
| (State or other jurisdiction of incorporation) |
(Commission file number) |
(IRS employer identification number) | ||
| 1818 Market Street, Suite 1500, Philadelphia, PA | 19103-7583 | |||
| (Address of principal executive offices) | (Zip Code) | |||
(215) 977-3000
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| Item 2.02. | Results of Operations and Financial Condition. |
On April 26, 2011, Sunoco Logistics Partners L.P. (the “Partnership”) issued a press release announcing its financial results for the first quarter 2011. A copy of this press release is attached as Exhibit 99.1 and is incorporated herein by reference.
| Item 7.01. | Regulation FD Disclosure. |
On April 26, 2011, the Partnership issued a press release announcing its financial results for the first quarter 2011. Additional information concerning the Partnership’s first quarter earnings was presented in a slide presentation to investors during a teleconference on April 26, 2011. A copy of the slide presentation is attached as Exhibit 99.2 and is incorporated herein by reference.
The information in this report, being furnished pursuant to Items 2.02, 7.01, and 9.01 related thereto, 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 9.01. | Financial Statements and Exhibits. |
(d) Exhibits
| Exhibit No. |
Exhibit | |
| 99.1 | Press release dated April 26, 2011. | |
| 99.2 | Slide presentation given April 26, 2011 during investor teleconference. | |
Forward-Looking Statements
Statements contained in the exhibits to this report that state the Partnership’s or its management’s expectations or predictions of the future are forward-looking statements. The Partnership’s 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.
SIGNATURE
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 thereunto duly authorized.
| SUNOCO LOGISTICS PARTNERS LP. | ||||
| By: | Sunoco Partners LLC, its General Partner | |||
| By: | /S/ MICHAEL D. GALTMAN | |||
| Michael D. Galtman | ||||
| Controller | ||||
April 26, 2011
Philadelphia, PA
EXHIBIT INDEX
| Exhibit No. |
Exhibit | |
| 99.1 | Press release dated April 26, 2011. | |
| 99.2 | Slide presentation given April 26, 2011 during investor teleconference. | |
Exhibit 99.1
|
News Release | |||||
| Sunoco Logistics Partners L.P. | ||||||
| 1818 Market Street | ||||||
| Philadelphia, Pa. 19103-3615 |
| For further information contact: | For release: Immediately |
Thomas Golembeski (media) 215-977-6298
Peter Gvazdauskas (investors) 215-977-6322
No. 6
Sunoco Logistics Partners L.P. Increases Distribution and Reports
Earnings for First Quarter 2011
PHILADELPHIA, April 26, 2011 – Sunoco Logistics Partners L.P. (NYSE: SXL) (the “Partnership”) today announced net income attributable to owners for the first quarter 2011 of $48 million ($1.08 per unit diluted), compared with $43 million ($1.06 per unit diluted) for the first quarter 2010. Highlights of the first quarter 2011 include:
| • | Distributable cash flow of $63 million for the quarter compared to $54 million for the prior year period |
| • | Finished the quarter with a Debt to EBITDA ratio of 3.3x |
| • | Announced the development of Project Mariner West, an expansion of Project Mariner to Canadian markets |
| • | Announced the capacity expansion on West Texas Gulf pipeline to meet crude transportation demand from the Permian Basin |
Sunoco Partners LLC, the general partner of the Partnership, declared a cash distribution for the first quarter 2011 of $1.195 per limited partnership unit ($4.78 annualized) to be paid on May 13, 2011 to unit holders of record on May 9, 2011. This represents the twenty-fourth consecutive quarterly distribution increase and resulted in a 1.2 times coverage ratio for the quarterly cash distribution.
“We had a strong quarter in our crude pipeline system and terminals facilities. There was high utilization on West Texas Gulf and Mid-Valley as demand for west Texas crude oil takeaway capacity has been exceptional,” said Lynn L. Elsenhans, Chairman and Chief Executive Officer. “At our refined products terminals, we are seeing the benefits of our growth programs to expand terminalling services, including butane blending, at our facilities. However, it was a challenging quarter for our refined products pipeline system due to significant unplanned refinery outages in the Northeast and general lower demand across our system.”
Speaking on recently announced growth projects, Elsenhans said: “We are excited about the projects currently in development which use our existing pipelines to meet customer need for takeaway capacity in Pennsylvania and Texas. Our Mariner West project, which is expected to come online by the third quarter 2012, is a great complement to our original Project Mariner as we will be able to provide greater ethane market access to Marcellus producers. Our West Texas Gulf joint venture’s expansion plan will provide necessary capacity to transport growing Permian Basin crude oil production to several end-user markets. We believe the flexibility to reach multiple markets is a key value driver for these projects.”
1
DETAILS OF FIRST QUARTER SEGMENT RESULTS
| Three Months
Ended March 31, |
||||||||||||
| 2011 | 2010 | Variance | ||||||||||
| (in millions) | ||||||||||||
| Refined Products Pipeline System |
$ | 5 | $ | 8 | $ | (3 | ) | |||||
| Terminal Facilities |
29 | 22 | 7 | |||||||||
| Crude Oil Pipeline System |
41 | 28 | 13 | |||||||||
| Operating Income |
$ | 75 | $ | 58 | $ | 17 | ||||||
| Interest expense, net |
20 | 15 | 5 | |||||||||
| Provision for income taxes |
5 | — | 5 | |||||||||
| Net Income |
$ | 50 | $ | 43 | $ | 7 | ||||||
| Net income attributable to noncontrolling interests |
2 | — | 2 | |||||||||
| Net income attributable to Sunoco Logistics Partners L.P. |
$ | 48 | $ | 43 | $ | 5 | ||||||
Refined Products Pipeline System
Operating income for the first quarter 2011 decreased from the prior year period due to lower pipeline volumes on our refined product pipelines in the southwest and unplanned refinery outages in the northeast.
Terminal Facilities
The improvement in operating income from the prior year period was primarily related to increased results from the butane blending business acquired in July 2010, higher volumes and fees at the refined products terminals and higher operating gains at the Nederland Terminal facility. These improvements were partially offset by lower throughput at the Partnership’s refinery terminals related to unplanned refinery outages.
Crude Oil Pipeline System
Operating income for the first quarter 2011 increased from the prior year period primarily due to incremental operating income associated with the Partnership’s acquisitions of additional joint venture interests and higher lease acquisition results.
Financing Update
The increase in net interest expense was primarily attributable to the offering of $500 million of Senior Notes completed in February 2010. At March 31, 2011, the Partnership’s total debt balance was $1.28 billion, including $82 million of borrowings under its revolving credit facilities.
2
CAPITAL EXPENDITURES
| Three Months Ended March 31, |
||||||||
| 2011 | 2010 | |||||||
| (in millions) | ||||||||
| Maintenance capital expenditures |
$ | 3 | $ | 4 | ||||
| Expansion capital expenditures |
25 | 23 | ||||||
| Total |
$ | 28 | $ | 27 | ||||
Expansion capital for the first quarter 2011 includes projects to expand upon the Partnership’s butane blending business, increase tankage at the Nederland facility and expand the Partnership’s refined products platform in the southwest United States. In March 2011, the Partnership announced the development of Project Mariner West as an expansion of Project Mariner to provide additional ethane takeaway capacity out of the Marcellus Shale. Also in March, West Texas Gulf Pipe Line Company, a consolidated joint venture, announced the development of a project to expand takeaway capacity out of the Permian Basin. The Partnership expects to invest $100 to $150 million in expansion capital, excluding the Mariner Projects, the Partnership’s share of the West Texas Gulf project and major acquisitions.
INVESTOR CALL
An investor call with management regarding our first quarter results is scheduled for Tuesday April 26 at 5:00 p.m. ET. Those wishing to listen can access the call by dialing (USA toll free) 888-889-4955; International (USA toll) 312-470-0130 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 866-400-9639. International callers should dial 203-369-0544.
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 Pipeline System consists of approximately 2,200 miles of refined products pipelines located in the northeast, midwest and southwest United States and equity interests in four refined products pipelines. The Terminal Facilities consist of approximately 10 million shell barrels of refined products terminal capacity and approximately 24 million shell barrels of crude oil terminal capacity (including approximately 21 million shell barrels of capacity at the Nederland Terminal on the Gulf Coast of Texas). The Crude Oil Pipeline System consists of approximately 5,400 miles of crude oil pipelines, located principally in Oklahoma and Texas.
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
3
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.
4
Sunoco Logistics Partners L.P.
Financial Highlights
(unaudited)
| Three Months
Ended March 31, |
||||||||||||
| 2011 | 2010 | Variance | ||||||||||
| (in millions) | ||||||||||||
| Income Statement: |
||||||||||||
| Sales and other operating revenue |
$ | 2,258 | $ | 1,680 | $ | 578 | ||||||
| Other income |
2 | 8 | (6 | ) | ||||||||
| Total revenues |
2,260 | 1,688 | 572 | |||||||||
| Cost of products sold and operating expenses |
2,145 | 1,594 | 551 | |||||||||
| Depreciation and amortization expense |
18 | 15 | 3 | |||||||||
| Selling, general and administrative expenses |
22 | 21 | 1 | |||||||||
| Total costs and expenses |
2,185 | 1,630 | 555 | |||||||||
| Operating Income |
75 | 58 | 17 | |||||||||
| Interest cost and debt expense |
21 | 16 | 5 | |||||||||
| Capitalized interest |
(1 | ) | (1 | ) | — | |||||||
| Income Before Provision for Income Taxes |
55 | 43 | 12 | |||||||||
| Provision for income taxes |
5 | — | 5 | |||||||||
| Net Income |
$ | 50 | $ | 43 | $ | 7 | ||||||
| Net Income attributable to noncontrolling interests |
2 | — | 2 | |||||||||
| Net Income attributable to Sunoco Logistics Partners L.P. |
$ | 48 | $ | 43 | $ | 5 | ||||||
| Calculation of Limited Partners’ interest: |
||||||||||||
| Net Income attributable to Sunoco Logistics Partners L.P. |
$ | 48 | $ | 43 | $ | 5 | ||||||
| Less: General Partner’s interest |
(12 | ) | (10 | ) | (2 | ) | ||||||
| Limited Partners’ interest in Net Income |
$ | 36 | $ | 33 | $ | 3 | ||||||
| Net Income per Limited Partner unit: |
||||||||||||
| Basic |
$ | 1.09 | $ | 1.06 | ||||||||
| Diluted |
$ | 1.08 | $ | 1.06 | ||||||||
| Weighted Average Limited Partners’ units outstanding: |
||||||||||||
| Basic |
33.1 | 31.0 | ||||||||||
| Diluted |
33.3 | 31.2 | ||||||||||
5
Sunoco Logistics Partners L.P.
Earnings Contribution by Business Segment
(unaudited)
| Three Months
Ended March 31, |
||||||||||||
| 2011 | 2010 | Variance | ||||||||||
| (in millions) | ||||||||||||
| Refined Products Pipeline System: |
||||||||||||
| Sales and other operating revenue |
$ | 27 | $ | 30 | $ | (3) | ||||||
| Other income |
2 | 2 | — | |||||||||
| Total revenues |
29 | 32 | (3) | |||||||||
| Operating expenses |
13 | 13 | — | |||||||||
| Depreciation and amortization expense |
4 | 4 | — | |||||||||
| Selling, general and administrative expenses |
7 | 7 | — | |||||||||
| Operating income |
$ | 5 | $ | 8 | $ | (3) | ||||||
| Terminal Facilities: |
||||||||||||
| Sales and other operating revenue |
$ | 87 | $ | 55 | $ | 32 | ||||||
| Cost of products sold and operating expenses |
43 | 20 | 23 | |||||||||
| Depreciation and amortization expense |
8 | 6 | 2 | |||||||||
| Selling, general and administrative expenses |
7 | 7 | — | |||||||||
| Operating income |
$ | 29 | $ | 22 | $ | 7 | ||||||
| Crude Oil Pipeline System (1): |
||||||||||||
| Sales and other operating revenue |
$ | 2,144 | $ | 1,595 | $ | 549 | ||||||
| Other income |
— | 6 | (6) | |||||||||
| Total revenues |
2,144 | 1,601 | 543 | |||||||||
| Cost of products sold and operating expenses |
2,089 | 1,561 | 528 | |||||||||
| Depreciation and amortization expense |
6 | 5 | 1 | |||||||||
| Selling, general and administrative expenses |
8 | 7 | 1 | |||||||||
| Operating income |
$ | 41 | $ | 28 | $ | 13 | ||||||
| (1) | 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. |
6
Sunoco Logistics Partners L.P.
Financial Highlights
(unaudited)
| March 31, 2011 |
December 31, 2010 |
|||||||
| (in millions) | ||||||||
| Balance Sheet Data: |
||||||||
| Cash and cash equivalents |
$ | 2 | $ | 2 | ||||
| Revolving credit facilities (1) |
$ | 82 | $ | 31 | ||||
| Note from affiliate - due May 2013 |
100 | 100 | ||||||
| Senior Notes |
1,098 | 1,098 | ||||||
| Total Debt |
$ | 1,280 | $ | 1,229 | ||||
| Sunoco Logistics Partners L.P. Partners’ equity |
$ | 963 | $ | 965 | ||||
| Noncontrolling interests |
78 | 77 | ||||||
| Total Equity |
$ | 1,041 | $ | 1,042 | ||||
| (1) | As of March 31, 2011, the Partnership had unutilized borrowing capacity of $376 million under its revolving credit facilities. |
7
Sunoco Logistics Partners L.P.
Financial and Operating Statistics
(unaudited)
| Three Months
Ended March 31, |
||||||||
| 2011 | 2010 | |||||||
| (in millions) | ||||||||
| Operating Income |
||||||||
| Refined Products Pipeline System |
$ | 5 | $ | 8 | ||||
| Terminal Facilities |
29 | 22 | ||||||
| Crude Oil Pipeline System |
41 | 28 | ||||||
| Total Operating Income |
$ | 75 | $ | 58 | ||||
| Operating Highlights |
||||||||
| Refined Products Pipeline System: |
||||||||
| Refined products pipeline throughput (thousands of bpd)(1) |
410 | 456 | ||||||
| Revenue per barrel of pipeline throughput (cents) |
71.8 | 70.9 | ||||||
| Terminal Facilities: |
||||||||
| Terminal throughput (thousands of bpd): |
||||||||
| Refined products terminals |
478 | 459 | ||||||
| Nederland terminal |
696 | 726 | ||||||
| Refinery terminals |
389 | 498 | ||||||
| Crude Oil Pipeline System: |
||||||||
| Crude oil pipeline throughput (thousands of bpd)(2) |
1,493 | 837 | ||||||
| Crude oil purchases at wellhead (thousands of bpd) |
189 | 184 | ||||||
| Gross margin per barrel of pipeline throughput (cents) (2)(3) |
35.9 | 40.1 | ||||||
| Average crude oil price (per barrel) |
$ | 94.25 | $ | 78.79 | ||||
| (1) | Excludes amounts attributable to equity interests which are not consolidated. |
| (2) | 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 three months ended March 31, 2011 of 656 thousand bpd, and the related gross margin, have been included in the crude oil pipeline throughput and gross margin per barrel of throughput. The amounts presented for the three month period ended March 31, 2010 exclude amounts attributable to these systems. |
| (3) | Represents total segment sales and other operating revenue minus cost of products sold and operating expenses and depreciation and amortization divided by pipeline throughput. |
8
Sunoco Logistics Partners L.P.
Non-GAAP Financial Measures
(unaudited)
| Three Months Ended March 31, |
||||||||
| 2011 | 2010 | |||||||
| (in millions) | ||||||||
| Net Income attributable to Sunoco Logistics Partners L.P. |
$ | 48 | $ | 43 | ||||
| Add: Interest expense, net |
20 | 15 | ||||||
| Add: Depreciation and amortization |
18 | 15 | ||||||
| Add: Provision for income taxes |
5 | — | ||||||
| EBITDA(1) |
91 | 73 | ||||||
| Less: Interest expense, net |
(20 | ) | (15 | ) | ||||
| Less: Maintenance capital expenditures |
(3 | ) | (4 | ) | ||||
| Less: Provision for income taxes |
(5 | ) | — | |||||
| Distributable cash flow(1) |
$ | 63 | $ | 54 | ||||
| (1) | Management of the Partnership believes 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. 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. Reconciliations of these measures to the comparable GAAP measure are provided in the tables accompanying this release. |
9
 First Quarter 2011
Earnings Conference Call
April 26, 2011
Sunoco Logistics Partners L.P.
Exhibit 99.2 |
 Forward-Looking Statements
2
You should review this slide presentation in conjunction with the first
quarter 2011 earnings conference call for Sunoco Logistics Partners
L.P., held on April 26 at 5:00 p.m. ET. You may listen to the
audio portion of the conference call on our website at
www.sunocologistics.com or by dialing (USA toll-free)
888-889-4955. International callers should dial
312-470-0130. Please enter Conference ID “Sunoco
Logistics.” 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 866-400-
9639. International callers should dial
203-369-0544.
During the call, those statements we make that are not historical facts
are forward-looking statements. These forward-looking
statements are not guarantees of future performance. Although we believe the
assumptions underlying these statements are reasonable, investors are
cautioned that such forward-looking statements involve risks
and uncertainties that may affect our business and cause actual results to differ
materially from those discussed during the conference call. Such risks
and uncertainties include economic, business, competitive and/or
regulatory factors affecting our business, as well as uncertainties related to the
outcomes of pending or future litigation. Sunoco Logistics
Partners L.P. has included in its Annual Report on Form 10-K
for the year ended December 31, 2010, and in its subsequent 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
about these factors, see our SEC filings, available on our website at
www.sunocologistics.com. We expressly disclaim any obligation
to update or alter these 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 slides at the end of the
presentation. You should consider carefully the comparable
GAAP measures and the reconciliations to those measures provided in this presentation. |
 Q1 2011 Assessment
Distributable cash flow of $63 million, a $9 million
increase from 1Q10
Increased distribution for 24
th
consecutive quarter
Benefits of 2010 acquisitions:
•
Mid-Valley & West Texas Gulf
•
Butane Blending
Challenging refined products pipeline quarter
3 |
 Crude Expansion –
Organic Growth
West Texas Gulf Pipeline Expansion:
•
Minimum 100 MBPD increase
•
Existing crude pipeline
•
Multiple market destinations possible
•
Fee-based income
•
3Q12 target start-up
Nederland Terminal Expansion:
•
2 new tanks on-line in 1Q11
•
2 tanks under construction
4Q11/1Q12 target start-up
Capacity will be 22MMB
•
Fee-based income
4 |
 Refined Products/NGL: Growth & Optimization
Marcellus Shale Ethane Solutions:
•
Mariner West—3Q12 target
Sarnia, Canada market
•
Mariner East—mid-2013 target
Gulf Coast & International markets
•
SXL utilizing existing pipeline
•
No commodity risk / fee-based model
Big Sandy Terminal:
•
Convert crude pipeline to products
•
Product distribution to Longview
•
Enhances MagTex system
•
Fee-based income
•
Mid-2011 target start-up
5 |
 Crude Oil Contango
Backwardation
Contango
6
WTINYMEX Month 2 vs. Month 1
-1
0
1
2
3
4
5
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2010
2011 |
 Q1 2011 Financial Highlights
($ in millions, unaudited)
7
Three Months Ended
March 31,
2011
2010
Sales and other operating revenue
2,258
$
1,680
$
Other income
2
8
Total revenues
2,260
1,688
Cost of products sold and operating expenses
2,145
1,594
Depreciation and amortization expense
18
15
Selling, general and administrative expenses
22
21
Total costs and expenses
2,185
1,630
Operating income
75
58
Interest cost and debt expense
21
16
Capitalized interest
(1)
(1)
Income before provision for income taxes
55
43
Provision for income taxes
5
-
Net Income
50
$
43
$
Net income attributable to noncontrolling
interests
2
-
Net Income attributable to Sunoco Logistics
Partners L.P.
48
$
43
$
|
  Q1 2011 Financial Highlights
8
(amounts in millions, except unit and per unit amounts, unaudited)
Three Months Ended
March 31,
2011
2010
Calculation of Limited Partners' interest:
Net Income attributable to Sunoco Logistics
Partners L.P.
48
$
43
$
Less: General Partner's interest
(12)
(10)
Limited Partners' interest in Net Income
36
$
33
$
Net Income per Limited Partner unit:
Basic
1.09
$
1.06
$
Diluted
1.08
$
1.06
$
Weighted Average Limited Partners' units
outstanding (in millions):
Basic
33.1
31.0
Diluted
33.3
31.2
|
 Refined Products Pipeline System
($ in millions, unaudited)
9
Three Months Ended
March 31,
2011
2010
Financial Highlights
Sales and other operating revenue
27
$
30
$
Other income
2
2
Total revenues
29
32
Operating expenses
13
13
Depreciation and amortization expense
4
4
Selling, general and administrative
expenses 7
7
Operating income
5
$
8
$
|
 Terminal Facilities
($ in millions, unaudited)
10
Three Months Ended
March 31,
2011
2010
Financial Highlights
Sales and other operating revenue
87
$
55
$
Cost of products sold and operating expenses
43
20
Depreciation and amortization expense
8
6
Selling, general and administrative
expenses 7
7
Operating income
29
$
22
$
|
 Crude Oil Pipeline System
11
($ in millions, unaudited)
Three Months Ended
March 31,
2011
2010
Financial Highlights
Sales and other operating revenue
2,144
$
1,595
$
Other income
-
6
Total revenues
2,144
1,601
Cost of products sold and operating expenses
2,089
1,561
Depreciation and amortization expense
6
5
Selling, general and administrative
expenses 8
7
Operating income
41
$
28
$
|
 Q1 2011 Operating Highlights
12
Three Months Ended
March 31,
2011
2010
Operating highlights (unaudited)
Refined Products Pipeline System:
Refined products pipeline throughput (thousands of bpd)
(1)
410
456
Revenue per barrel of pipeline throughput
(cents) 71.8
70.9
Terminal Facilities:
Refined products terminals throughput (thousands of bpd)
478
459
Nederland terminal throughput (thousands of
bpd) 696
726
Refinery terminals throughput (thousands of
bpd) 389
498
Crude Oil Pipeline System:
Crude oil pipeline throughput (thousands of bpd)
(2)
1,493
837
Crude oil purchases at wellhead (thousands of
bpd) 189
184
Gross margin per barrel of pipeline throughput
(cents) (2)(3)
35.9
40.1
Average crude oil price (per barrel)
94.25
$
78.79
$
(1)
Excludes amounts attributable to equity ownership interests which are
not consolidated. (2)
(3)
Represents total segment sales and other operating revenue minus cost
of products sold and operating expenses and depreciation and amortization divided by pipeline
throughput.
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 three
months ended March 31, 2011 of 656 thousand bpd, and the related gross margin, have been included in the
crude oil pipeline throughput and gross margin per barrel of
throughput. The amounts presented for the three month period ended March 31, 2010 exclude amounts
attributable to these systems. |
 Q1 2011 Financial Highlights
13
($ in millions, unaudited)
Three Months Ended
March 31,
2011
2010
Capital Expenditure Data:
Maintenance capital expenditures
3
$
4
$
Expansion capital expenditures
25
23
Total
28
$
27
$
March 31,
December 31,
2011
2010
Balance Sheet Data (at period end):
Cash and cash equivalents
2
$
2
$
Total debt
(1)
1,280
$
1,229
$
Equity
Sunoco Logistics Partners L.P. Equity
963
$
965
$
Noncontrolling interests
78
77
Total Equity
1,041
$
1,042
$
(1)
Total debt at March 31, 2011 and December 31, 2010 includes the $100
million promissory note to Sunoco, Inc.
|
 Non-GAAP Financial Measures
($ in millions, unaudited)
14
Non-GAAP Financial Measures
(1)
Management
of
the
Partnership
believes
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.
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. Reconciliations of these measures to the comparable GAAP measure are provided in
the tables accompanying this release.
2011
2010
Add: Interest expense, net
20
15
Add: Depreciation and amortization
expense 18
15
Add: Provision for income taxes
5
-
EBITDA
(1)
91
73
Less: Interest expense, net
(20)
(15)
Less: Maintenance capital expenditures
(3)
(4)
Less: Provision for income taxes
(5)
-
Distributable cash flow
(1)
63
$
54
$
Three Months Ended
March 31,
43
$
48
$
Net Income attributable to Sunoco Logistics
Partners L.P. |
 Historical Operating Highlights
15
2007
2008
2011
Total
Total
1st
2nd
3rd
4th
1st
2nd
3rd
4th
1st
Operating highlights (unaudited)
Refined Products Pipeline System:
Refined product pipeline throughput (thousands of bpd)
(1)
491
510
583
568
578
576
456
519
452
442
410
Revenue per barrel of pipeline throughput (cents)
54.8
55.4
59.9
60.4
60.2
62.4
70.9
66.5
71.4
71.7
71.8
Terminal Facilities:
Refined products terminals throughput (thousands of bpd)
434
436
460
464
465
466
459
487
505
502
478
Nederland terminal throughput (thousands of bpd)
507
526
653
646
560
531
726
684
780
724
696
Refinery terminals throughput (thousands of bpd)
696
653
583
600
609
573
498
471
459
434
389
Crude Oil Pipeline System:
Crude oil pipeline throughput (thousands of bpd)
(1)(2)
674
683
664
670
611
687
837
906
1,387
1,592
1,493
Crude oil purchases at wellhead (thousands of bpd)
178
178
191
181
177
177
184
191
188
192
189
Gross margin per barrel of pipeline throughput (cents)
(3)
31.9
63.0
103.9
80.4
46.4
60.4
40.1
35.7
43.8
39.9
35.9
Average crude oil price (per barrel)
72.40
$
99.65
$
43.21
$
59.61
$
68.29
$
76.17
$
78.79
$
77.99
$
76.21
$
85.18
$
94.25
$
(1)
Excludes amounts attributable to equity ownership interests which are
not consolidated. (2)
(3)
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.
Gross margin and throughput volumes for Mid-Valley Pipeline Company
and West Texas Gulf Pipe Line Company have been included from the acquisition date.
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 three months ended March 31, 2011 of 656 thousand bpd,
and the related gross margin, have been included in the crude oil pipeline throughput and gross margin per barrel of
throughput. The amounts presented for the periods prior to the
third quarter 2010 exclude amounts attributable to these systems.
2009
2010 |