Post on 03-Jul-2015
description
transcript
Sunoco Logistics Partners L.P.
NYSE
SXL Analyst DayNovember 2014
Forward-Looking StatementsStatements 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 anduncertainties that may affect our business and cause actual results to differ materiallyfrom those discussed in this presentation. Such risks and uncertainties includeeconomic, business, competitive and/or regulatory factors affecting our business, aswell as uncertainties related to the outcomes of any pending or future litigation.Sunoco Logistics Partners L.P. has included in its Annual Report on Form 10-K for theyear ended December 31, 2013 cautionary language identifying important risk factors(though not necessarily all such factors) that could cause future outcomes to differmaterially from those set forth in the forward-looking statements. For moreinformation about these risk factors, see our SEC filings, available on our website atwww.sunocologistics.com. We expressly disclaim any obligation to update or alterthese forward-looking statements, whether as a result of new information, futureevents or otherwise.
This presentation includes certain non-GAAP financial measures intended tosupplement, not substitute for, comparable GAAP measures. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided in the appendixto this presentation. You should consider carefully the comparable GAAP measuresand the reconciliations to those measures provided in this presentation. 2
Agenda
Sunoco Logistics Overview p. 4
Crude Market Summary p. 15
Crude Projects p. 22
Refined Products Projects p. 25
NGL Market Summary p. 27
NGL Projects p. 30Mariner East 2PDH Overview
Summary p. 48
Appendix p. 52
Sunoco Logistics Overview
Sunoco Logistics Assets
5
Sunoco Logistics and Energy Transfer Assets
6
LP Interest, GP Interest, IDRsLP Interest, GP Interest, IDRs, Class H Units(1)
LP Interest, GP Interest, IDRs
Gathering and Processing
Contract Compression
& Treating
Lone Star NGL
70% ETP Interest 30% RGP Interest
(1) Class H Units track 50% of the SXL GP and IDR economics(2) Previously called Susser Petroleum Partners ("Susser") and traded under the ticker symbol SUSP on NYSE
Energy Transfer Family of Companies
7
SUNOCO LP(2)
(NYSE: SUN)
Crude Oil Pipelines
Crude Oil Acquisition &
Marketing
Terminal Facilities
NGL / Refined Product
Pipelines
ENERGY TRANSFER EQUITY, L.P.(NYSE: ETE)
ENERGY TRANSFER PARTNERS, L.P.
(NYSE: ETP)
REGENCY ENERGY PARTNERS LP(NYSE: RGP)SUNOCO LOGISTICS
PARTNERS L.P. (NYSE: SXL)Intrastate
Transportationand Storage
Interstate Transportation
and Storage
Midstream
Sunoco, Inc.Retail
Marketing
NGL Transportation and Services
Retail Operations
Joint Ventures
LP Interest, GP Interest, IDRs
Recent Highlights
3Q14 Results:
– EBITDA $246MM… 2nd biggest quarter ever– 10th consecutive 5% quarter-over-quarter distribution increase
2 Additional Successful Open Seasons:
– Mariner East 2– Permian Longview & Louisiana Extension
September 2014 YTD Organic Growth Capital of $1.8B:
– Updated guidance for 2014 at ~$2.5B– New guidance for 2015 at ~$2B… on committed projects only
8
EBITDA by Segment($MM)
9
2010 2011 2012 2013 LTM*Crude Oil Pipeline 156 207 275 349 394 Crude Oil Acq. & Mktg. 39 148 239 233 164 Terminal Facilities 127 149 225 233 306 Products Pipeline 77 69 71 56 80 Total EBITDA 399 573 810 871 944
*LTM = last twelve months ended September 30, 2014
Adjusted EBITDA: Ratable and Market Related
Maximize asset base by taking advantage of market opportunities
Distributions based on ratable cash
Market related cash flow increases coverage ratio
10
-
200
400
600
800
1,000
1,200
2010 2011 2012 2013 LTM*
Adj
uste
d EB
ITD
A ($
MM
)
Ratable Market Related
399
573
810871
944
*LTM = last twelve months ended September 30, 2014
10 Consecutive Quarters of 5% Distribution Growth
Guidance ~5% quarter over quarter increases in 2014
Note: Values adjusted for the two-for-one unit split completed on June 12, 2014 11
Major Organic Projects 13 Successful Open Seasons:3 West Texas Crude expansion projects (crude oil)Permian Express 1 (crude oil)Permian Express 2 (crude oil)Eaglebine Express (crude oil)Granite Wash Extension (crude oil)Permian Longview & Louisiana Extension (crude oil)Allegheny Access (refined products)Mariner West (natural gas liquids)Mariner East 1 (natural gas liquids)Mariner East 2 (natural gas liquids)Mariner South (natural gas liquids)
Actively developing:Delaware Basin Extension (crude oil)
12
Organic Capital
13
0
500
1,000
1,500
2,000
2,500
2010 2011 2012 2013 2014P 2015P
Inve
stm
ent (
$MM
)
Organic Expansion Capital
Acquisitions
0
100
200
300
400
500
600
2010 2011 2012 2013 2014*
Inve
stm
ent (
$MM
)
Acquisition Capital
*SXL does not comment on future acquisitions*Includes the acquisition of an additional 3.9% interest in Explorer Pipeline for $42MM 14
Crude Market Summary
$20
$40
$60
$80
$100
$120
$140
$160
$/bbl
Dated Brent Daily Price 2008 - Present
16
World Non-OPEC Liquids Supply Growth
Change Year-Over-Year
17
Source: PIRA
OPECNon-OPEC
Top 20 Crude Producers – November 2014 (MMBPD)
18
Source: PIRA
Source: PIRA
19
Approximate $/BBL Breakeven Price
$40
$60
$80
$100
Oil Sands Offshore Deepwater Shale
2010 2015
Shale is the Lowest Cost Barrel Today
$32
$46$53
$62 $66$72 $73
$0
$25
$50
$75
$100
WTI Oil Breakeven by Basin
$/BBL
Source: Credit Suisse
20
*** About 200 MBPD growth projected in 2014*** Actual Growth now estimated at over 300 MBPD
Permian Basin Output
21Source: PIRA
Crude Projects
Committed Fee-based Income
Permian Express 1Permian Crude to Nederland
2Q 2013
Delaware Basin ExtensionDelaware Basin Crude to Midland
1H 2016*
3 West Texas Crude ExpansionsPermian Crude to multiple markets
2012 - 2014
Permian LV & LA ExtensionPermian Crude to multiple markets
Mid-2016*
Eaglebine ExpressEaglebine / Woodbine Crude to Nederland
4Q 2014
Granite Wash ExtensionGranite Wash Crude to multiple markets
4Q 2014
Permian Express 2Permian Crude to multiple markets
Mid-2015*
*Expected Start-up 23
Crude Projects: 8 Successful Open Seasons (1 in progress)
Nederland Terminal
24
Refined Products Projects
Allegheny Access – Refined Products
Allegheny AccessOhio Products to Pittsburgh
4Q 2014*
26Committed Fee-based Income
*Expected Start-up
NGL Market Summary
Top 20 NGL Producers – 2014 (MMBPD)
OPECNon-OPEC
Source: PIRA
28
BPD
Marcellus / Utica NGL Forecast
Source: Dominion, SXL
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
2012 2013 2014 2015 2016 2017 2018 2019 2020Propane Normal Butane IsobutaneNat Gasoline Must-Recover Ethane Discretionary Ethane
Over 800 MBPD liquids by 2016
29
NGL Projects
Mariner Franchise
Mariner WestEthane from Houston to Sarnia
4Q 2013
Mariner SouthPropane / Butane from Mont Belvieu to Nederland
End of 2014*
Committed Fee-based Income
Mariner East 1Ethane / Propane from Houston to Marcus Hook
4Q 2014*
Mariner East 2NGLs from Shales to Marcus Hook
4Q 2016*
*Expected Start-up 31
Mariner South – Natural Gas Liquids
32Committed Fee-based Income
Lone StarFractionators
SXLTerminal
Mariner SouthPropane / Butane from Mont Belvieu to Nederland
End of 2014*
*Expected Start-up
Mariner South at Nederland Terminal
33
Nederland Terminal
34
Mariner West and East – Natural Gas Liquids
Mariner WestEthane from Houston to Sarnia
4Q 2013
Mariner East 1E/P from Houston to Marcus Hook
End of year 2014*
35Committed Fee-based Income
Mariner East 2NGLs to Marcus Hook
4Q 2016*
*Expected Start-up
Mariner East 2
Mariner East
37
Connecting to 4 Fractionator Origin Locations in the Basin
275,000 B/D Initial Capacity345,000 B/D including ME 1
World-Class NGL Facility at Marcus Hook Industrial Complex
37
Marcus Hook Industrial Complex
MarinerInfrastructure
38
Marcus Hook Terminal Build-Out
39
Marcus Hook – Natural Gas Liquids
40
Marcus Hook – Natural Gas Liquids
41
PDH at Marcus Hook In Development
Global Propylene Supply and Demand
- Global Propylene market is expected to grow by 33MM Metric Tons by 2020
- Lighter feed to crackers
- PDH is a preferred choice
43
Propylene Supply and Demand
44
Why PDH in Marcus Hook?
Perfect location for local demand Better logistics
Perfect location for propylene export to North West EuropeAdvantaged shipping and logistics costsDelivered cash cost competitive with international markets
Perfect location for Petrochemical ProjectExisting infrastructure, Lower CAPEX, Optimized schedulePlenty of dock capacity, uncrowded ship channelGovernment support for MHIC industrial redevelopment
ME 2 assures long term, reliable propane supply
45
Propylene – Propane Spread 2000 – 2014
$/mt
Source: IHS Global
46
Marcus Hook Industrial Complex
MarinerInfrastructure
PROPOSEDPDH
47
Summary
Key SXL Takeaways – Recent History
49
Strategic Focus on Crude and Natural Gas Liquids
First Mover… First West Texas crude projects on line since the shale boom First Marcellus ethane pipeline on line First waterborne propane exports from the Northeast First waterborne ethane export project (Mid-2015 with ME1)
Robust Organic Program 13 Successful Open Seasons since 2011 ~ $ 2.5 B Organic Capital Plan in 2014 (~ $ 4 B last 4 years) ~ $ 1 B in M&A over last five years
Commitment to Rewarding our Owners 10 consecutive quarters of 5 % distribution growth 5 year unit price growth over 400 %
Scheduled Project Start-up
50
Key SXL Takeaways – Going Forward
51
Commitment to Growth 14th Open Season in progress
New phase of growth in processing at Marcus Hook
Opportunities within the Energy Transfer family
M&A - Actively looking for right, strategic opportunities
Commitment to Rewarding our Owners Competitive, sustainable distribution growth
Commitment to Investment Grade credit rating Excellent balance sheet
• Long-term target of 3.5x to 4.0x Debt to Adjusted EBITDA Balance Debt and Equity issuance to maintain rating
• $1.5B revolver for liquidity
Appendix
2010 2011 2012 2013 LTM*
348 322 531 474 530 Interest expense, net 73 89 79 77 70 Depreciation and amortization expense 64 86 139 265 289 Impairment charge 3 31 9 - - Provision for income taxes 8 25 32 30 28 Non-cash compensation expense 5 6 8 14 16 Unrealized losses / (gains) on commodity risk management activities 2 (2) 3 (1) (3) Proportionate share of unconsolidated affiliates' interest, depreciation
and provision for income taxes 24 16 21 20 21 Adjustments to commodity hedges resulting from "push-down" accounting - - (12) - - Amortization of excess joint venture investment - - - 2 3 Non-cash accrued liability adjustment - - - (10) (10) Gain on investments in affiliates (128) - - - -
Adjusted EBITDA(1) 399 573 810 871 944 Interest expense, net (73) (89) (79) (77) (70) Provision for income taxes(2) (8) (27) (34) (24) (31) Amortization of fair value adjustments on long-term debt - - (6) (23) (17) Distributions versus Adjusted EBITDA of unconsolidated affiliates (36) (17) (28) (27) (32) Maintenance capital expenditures (37) (42) (50) (53) (63) Distributable Cash Flow attributable to noncontrolling interests (3) (10) (11) (16) (13) Acquisition costs reimbursement - - - 9 12
Distributable Cash Flow (DCF)(1) 242 388 602 660 730
(1)
(2)
Twelve Months Ended December 31,
Net Income
Management of the Partnership believes Adjusted EBITDA and distributable cash flow information enhances an investor's understanding of a business’s 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 alternatives 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. Historical amounts presented have been recast to conform to current period.
During the third quarter 2014, we changed our definition of distributable cash flow to conform to the presentation utilized by Energy Transfer Partners, L.P., the controlling member of our general partner. This change did not have a material impact on our distributable cash flows. Prior period amounts have been recast to conform to current presentation.
SXL Non-GAAP Financial Measures
($MM)
53*LTM = Last Twelve Months, period ended September 30, 2014
2010 2011 2012 2013 LTM*
Crude Oil Pipelines 156 207 275 349 394 Crude Oil Acquisition & Marketing 39 148 239 233 164 Terminal Facilities 127 149 225 233 306 Refined Products Pipelines 77 69 71 56 80 Total Adjusted EBITDA 399 573 810 871 944
Interest expense, net (73) (89) (79) (77) (70) Provision for income taxes(1) (8) (27) (34) (24) (31) Maintenance Capital Expenditures (37) (42) (50) (53) (63) Amortization of fair value adjustment on long-term debt - - (6) (23) (17) Distributions versus adjusted EBITDA of unconsolidated affiliates (36) (17) (28) (27) (32) Distributable cash flow attributable to noncontrolling interests (3) (10) (11) (16) (13) Acquisition costs reimbursement - - - 9 12
Distributable Cash Flow (DCF) 242 388 602 660 730
Expansion Capital(2) 146 171 324 965 2,207
Total Distribution (accrual basis) 193 214 277 378 468 Distribution Coverage Ratio 1.3x 1.8x 2.2x 1.7x 1.6x
Historical Financial Results($MM)
54
(1) During the third quarter 2014, we changed our definition of distributable cash flow to conform to the presentation utilized by Energy Transfer Partners, L.P., the controlling member of our general partner. This change did not have a material impact on our distributable cash flows. Prior period amounts have been recast to conform to current presentation.
(2) Excludes major acquisitions
*LTM = Last Twelve Months, period ended September 30, 2014
Consolidated JV's:
SXL 60.3% SXL 91.0% SXL 83.8%Chevron 28.3% Chevron 9.0% Citgo 16.2%Citgo 11.4%
Equity Interest JV's:
Shell 36.0% Buckeye 34.6% ExxonMobil 53.4% Phillips 66 46.0%Marathon 24.5% Shell 18.9% SXL 31.5% ExxonMobil 40.0%Phillips 66 19.4% Citgo 18.4% Citgo 9.5% SXL 14.0%SXL 13.3% SXL 17.1% Marathon 5.6%American Capital Group 6.8% ExxonMobil 11.0%
SXL 50%Vitol 50%
Undivided Interest JV's:Harbor
SXL 66.7% Plains 63.0%Phillips 66 33.3% SXL 37.0%
Explorer* West Shore Wolverine**
West Texas Gulf
Yellowstone
Mesa
InlandMid-Valley
SunVit
Joint Venture Ownership
Bold - denotes operator* Operated by Explorer’s employees** Operated by Wolverine’s employees
55
Crude Oil Pipeline System
42% of total EBITDA for the twelve months ended September 30, 2014
Approximately 5,300 miles of crude oil trunk lines located in the Southwest and Midwest U.S.Approximately 500 miles of gathering lines
60.3% controlling interest in West Texas Gulf Pipeline, approximately 600-mile crude oil pipeline
91.0% controlling interest in Mid-Valley Pipeline, approximately 1,000-mile crude oil pipeline
56
Crude Oil Acquisition and Marketing
17% of total EBITDA for the twelve months ended September 30, 2014
Crude truck fleet of over 300 trucks
Purchase crude oil at the wellhead from producers and in bulk from aggregators at major pipeline interconnections and trading locations
Buying and selling crude oil of different grades, at different locations in order to maximize value
Marketing crude oil to major integrated oil companies, independent refiners and resellers through various types of sale and exchange transactions
Wellhead volumes of approximately 400,000 barrels per day from approximately 3,000 producers who operate approximately 60 thousand active leases
Storing inventory during contango market conditions – maintain balanced book to mitigate commodity risk
Transporting crude oil on our pipelines and trucks or when necessary or cost effective, pipelines or trucks owned and operated by third parties
57
Terminal Facilities 32% of total EBITDA for the twelve months ended September 30, 2014 Nederland, TX Crude Oil Terminal - One of the largest onshore crude facilities in U.S. 22 million barrel capacity currently
Eagle Point, NJ Crude Oil and Refined Products Terminal 5 million barrel capacity for crude oil and refined product storagePipeline and rail connections with import/export capabilities
Marcus Hook Industrial ComplexPipeline, rail and trucking connections with import/export capabilities5 million barrel capacity for refined product and NGL storage
• Includes five underground NGL storage caverns Refinery Terminal Facilities with combined 5 million barrel capacityServe Philadelphia area refineries
39 active Refined Products Marketing Terminals located in 11 states with a combined capacity of 8 million barrels
Inkster, MI LPG Terminal with a capacity of approximately 1 million barrels Total terminal capacity of approximately 46 million barrels Patented technology to blend butane into gasoline
58
Refined Products Pipeline System
9% of total EBITDA for the twelve months ended September 30, 2014
Refined products pipeline system (approximately 2,300 miles), located in the Northeast, Midwest and Southwest U.S.
Equity interest in four product pipelinesExplorer (13.3%)West Shore (17.1%)Wolverine (31.5%)Yellowstone (14.0%)
83.8% controlling interest in Inland Pipeline, an approximately 350-mile refined products pipeline system
59
$0.00
$0.50
$1.00
$1.50
$2.00
2009 2010 2011 2012 2013 CAD*
Average Annual Distribution(per LP unit)
Distribution History
10 consecutive quarter over quarter distribution increases of 5%
38 consecutive quarterly distribution increases
Current annualized distribution of $1.53
DistributionCoverage 1.5x 1.3x 1.8x 2.2x 1.7x
LP/GPSplit (%)
50/50
85/15
63/37
98/2
60
$1.06
$0.38
$0.33
$1.53
*CAD: Current Annualized Distribution @ $1.53 per LP Unit
Note: Values adjusted for the two-for-one unit split completed on June 12, 2014
$1.5 Billion Revolving Credit Facility
($MM)
61
(1) Citibank is the administrative agent for the $1.5 billion revolver(2) PNC Bank is administrative agent and sole lender on a separate $35MM West Texas Gulf revolver
$100MM Lenders $40.5MM LendersCitibank(1) $100.0 Bank of Nova Scotia $40.5Barclays Bank 100.0 BNP Paribas 40.5Bank of Tokyo-Mitsubishi UFJ 100.0 Comerica Bank 40.5PNC Bank(2) 100.0 Deutsche Bank 40.5TD Bank 100.0 DNB Capital 40.5Wells Fargo Bank 100.0 Goldman Sachs Bank 40.5Subtotal $600.0 Morgan Stanley Senior Funding 40.5
SunTrust Bank 40.5Subtotal $324.0
$64MM LendersBank of America $64.0Compass Bank 64.0Credit Suisse 64.0JPMorgan Chase Bank 64.0Mizuho Bank 64.0Royal Bank of Canada 64.0 Lender Royal Bank of Scotland 64.0 $100.0MM Lenders Total $600.0UBS 64.0 $64.0MM Lenders Total 576.0US Bank 64.0 $40.5MM Lenders Total 324.0Subtotal $576.0 Total $1,500.0
$1.5B FacilityAllocation
FacilityAllocation
FacilityAllocation
FacilityAllocation
Debt to Adjusted EBITDA
(1) In accordance with purchase accounting guidance, the Partnership's Senior Notes were adjusted to fair value (“FV”) upon the closing of Energy Transfer's acquisition of the Partnership's general partner in October 2012.
2009 2010 2011 2012 2013Debt to Adjusted EBITDA Ratio
Total Debt 868 1,229 1,698 1,732 2,503 Less: Unamortized FV adjustments, net(1) - - - 143 120
868 1,229 1,698 1,589 2,383
Adjusted EBITDA (trailing 12 months) 372 399 573 810 871
Debt to Adjusted EBITDA Ratio 2.3x 3.1x 3.0x 2.0x 2.7x
December 31,($MM)
62
Capitalization
(1) In accordance with purchase accounting, the Partnership's Senior Notes were accounted for at fair value upon the closing of Energy Transfer's acquisition of the Partnership's general partner. At 09/30/2014, there was $105 MM of net unamortized fair value adjustments.
(2) New $1.5 billion revolver closed in November 2013, replaced the existing SXL revolvers.
($MM) As of 9/30/14Debt
Senior Notes, net 2,975 fixedUnamortized fair value adjustments, net(1) 105 $1.5 B SXL Revolver (matures November 2018)(2) 525 floating $35 MM WTG Revolver (matures April 2015) 35 floating
Total Debt(1) 3,640
EquityLimited Partners 5,966 General Partner 928
Total Partners’ Capital 6,894 Non-Controlling Interest 124
Total Equity 7,018
Rating: BBB / Baa3 / BBB (S&P, Moody’s, Fitch), stable outlook
63
Debt Maturity Schedule at 9/30/2014($MM)
Note: Excludes borrowings under the revolvers
5.50% 4.25% 5.30%4.95%6.10%6.13% 4.65% 3.45% 6.85%
64
November 2002 Joint-venture interests in 3 refined product pipelines from Unocal, for $54MM
Wolverine (31.5%), West Shore (9.2%), and Yellowstone (14.0%)
November 2002 43.8% joint-venture interest from Sunoco/Unocal in West Texas Gulf crude pipeline for $11MM
September 2003 Additional joint-venture interest in West Shore for $4MM increasing ownership
interest from 9.2% to 12.3%
March 2004 Logistics assets of Eagle Point refinery from Sunoco, Inc. for $20MM
April 2004 Baltimore, MD and Manassas, VA refined product terminal facilities from ConocoPhillips for $12MM
June 2004 Additional 1/3rd joint-venture interest in Harbor Pipeline from El Paso for $7MM, increasing ownership
interest to 2/3rds
November 2004 Columbus, OH refined product terminal facilities from Certified Oil for $8MM
August 2005 Texas crude oil pipeline system from ExxonMobil for $100MM
December 2005
March 2006
37% joint-venture interest in Mesa crude oil pipeline system from Sunoco/Chevron for $7MM
Texas crude oil pipeline system from Black Hills for $41MM
Texas crude oil pipeline system from Alon for $68MM
August 2006
June 2007
November 2008
55.3% joint-venture interest in Mid-Valley crude oil pipeline from Sunoco, Inc. for $65MM
50% joint-venture interest in a refined products terminal in Syracuse, NY from ExxonMobil for $13MM
Texas refined products pipeline system and terminal facilities from ExxonMobil for $186MM
Acquisition History ($1.5B Since IPO)
65
September 2009 Oklahoma crude oil pipeline from Excel Pipeline LLC and Romulus, MI refined products terminal facility
from R.K.A. Petroleum LLC for an aggregate $50MM
July 2010 Butane blending business from Texon L.P. for $152MM including inventory
Additional joint-venture interest in West Shore from BP for $7MM increasing ownership
interest from 12.3% to 17.1%
Additional joint-venture interest in Mid-Valley from BP for $58MM increasing ownership
interest from 55.3% to 91.0%
August 2010 Additional joint-venture interest in West Texas Gulf from BP for $27MM increasing ownership
interest from 43.8% to 60.3%
May 2011 83.8% controlling joint-venture interest in Inland refined products pipeline for $99MM
July 2011 Eagle Point Tank Farm from Sunoco, Inc. for $100MM in deferred distribution units
August 2011 Crude Oil Acquisition and Marketing business from Texon L.P. for $222MM including inventory
East Boston products terminal and pipeline from ConocoPhillips for $73MM including inventory
April 2013
March 2014
May 2014
Marcus Hook Industrial Complex from Sunoco, Inc. for $60MM
Additional joint-venture interest in Explorer Pipeline from Chevron for $42MM increasing ownership
interest from 9.4% to 13.3%
Crude Oil Acquisition and Marketing business from EDF for $80MM including inventory
Acquisition History ($1.5B Since IPO), Continued
66
SXL Key Financial and Operating Statistics
67
2010 2011Total Total 1st 2nd 3rd 4th Total 1st 2nd 3rd 4th Total 1st 2nd 3rd Total
Financial highlights (in millions)
Sales and other operating revenue
Crude Oil Pipelines 221$ 319$ 80$ 100$ 108$ 110$ 398$ 95$ 122$ 139$ 139$ 495$ 131$ 138$ 144$ 413$ Crude Oil Acquisition and Marketing 7,282 10,163 3,192 3,056 3,010 2,888 12,146 3,259 4,047 4,244 3,968 15,518 4,094 4,432 4,497 13,023 Terminal Facilities 287 435 135 170 101 206 612 183 176 177 215 751 287 283 298 868 Refined Products Pipelines 120 130 31 32 33 35 131 30 32 34 34 130 41 40 46 127 Intersegment eliminations (102) (142) (37) (45) (45) (50) (177) (55) (66) (66) (68) (255) (76) (72) (70) (218)
Total sales and other operating revenue 7,808$ 10,905$ 3,401$ 3,313$ 3,207$ 3,189$ 13,110$ 3,512$ 4,311$ 4,528$ 4,288$ 16,639$ 4,477$ 4,821$ 4,915$ 14,213$
Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA)
Crude Oil Pipelines 156$ 207$ 60$ 70$ 73$ 72$ 275$ 61$ 88$ 98$ 102$ 349$ 93$ 104$ 95$ 292$ Crude Oil Acquisition and Marketing 39 148 47 57 54 81 239 112 70 18 33 233 12 53 66 131 Terminal Facilities 127 149 47 74 52 52 225 54 70 47 62 233 86 97 61 244 Refined Products Pipelines 77 69 15 17 25 14 71 9 16 18 13 56 17 26 24 67 Total Adjusted EBITDA 399$ 573$ 169$ 218$ 204$ 219$ 810$ 236$ 244$ 181$ 210$ 871$ 208$ 280$ 246$ 734$
Operating highlights
Crude Oil PipelinesPipeline throughput (thousands of barrels per day "bpd") 1,183 1,587 1,467 1,571 1,601 1,584 1,556 1,582 1,890 1,976 2,009 1,866 2,041 2,130 2,204 2,126 Pipeline revenue per barrel (cents) 50.7 55.0 59.6 70.0 73.6 75.6 69.9 67.0 70.8 76.3 75.2 72.7 71.6 71.2 70.8 71.2
Crude Oil Acquisition and MarketingCrude oil purchases (thousands of bpd) 638 663 631 700 692 669 673 750 796 716 734 749 840 854 894 863 Gross profit per barrel purchased (cents) (1) 21.0 66.0 89.5 97.1 91.5 138.0 104.1 172.0 101.8 33.9 55.9 91.4 21.1 74.8 85.9 61.4 Average crude oil price (per barrel) 79.55$ 95.14$ 102.94$ 93.50$ 92.19$ 88.20$ 94.19$ 94.34$ 94.23$ 105.82$ 97.50$ 98.00$ 98.61$ 102.98$ 97.21$ 99.60$
Terminal Facilities (thousands of bpd)Refined products terminals throughput 488 492 487 515 495 451 487 414 454 432 422 431 413 420 420 418 Nederland terminal throughput 729 757 697 690 721 787 724 850 932 968 977 932 1,322 1,216 1,262 1,266 Refinery terminals throughput 465 443 383 345 381 411 380 325 444 495 324 397 226 345 297 290
Refined Products Pipelines (2)
Pipeline throughput (thousands of bpd) 468 522 528 591 576 601 582 522 599 577 586 571 521 551 582 552 Pipeline revenue per barrel (cents) 70.0 68.3 65.1 59.5 62.2 63.0 61.6 62.9 59.1 64.3 63.9 62.5 88.3 79.4 85.5 84.4
2012 2013 2014
SXL Key Financial and Operating Statistics
68
2010 2011Total Total 1st 2nd 3rd 4th Total 1st 2nd 3rd 4th Total 1st 2nd 3rd Total
Reconciliation of Segment Operating Income to Net Income Attributable to Sunoco Logistics Partners L.P. (in millions)
Operating income:Crude Oil Pipelines 113$ 181$ 52$ 63$ 67$ 49$ 231$ 38$ 65$ 74$ 80$ 257$ 68$ 79$ 68$ 215$ Crude Oil Acquisition and Marketing 36 137 34 52 48 69 203 100 57 5 22 184 (1) 39 51 89 Terminal Facilities 94 85 37 60 39 44 180 31 46 27 27 131 60 59 52 171 Refined Products Pipelines 28 20 4 4 - (3) 5 (4) (3) (2) (3) (12) - 3 1 4
Total segment operating income 271 423 127 179 154 159 619 165 165 104 126 560 127 180 172 479 Interest expense, net (73) (89) (24) (21) (20) (14) (79) (19) (17) (22) (19) (77) (16) (21) (14) (51) Gain on investments in affiliates 128 - - - - - - - - - - - - - - - Other income 30 13 2 5 11 5 23 2 7 7 5 21 4 7 7 18 Provision for income taxes (8) (25) (8) (8) (8) (8) (32) (6) (9) (8) (7) (30) (5) (8) (8) (21) Net income 348 322 97 155 137 142 531 142 146 81 105 474 110 158 157 425 Net income attributable to noncontrolling interests (2) (9) (2) (3) (3) (3) (11) (2) (3) (3) (3) (11) (3) (2) (2) (7) Net income attributable to Partners 346$ 313$ 95$ 152$ 134$ 139$ 520$ 140$ 143$ 78$ 102$ 463$ 107$ 156$ 155$ 418$
Reconciliation of Net Income to Adjusted EBITDA and Distributable Cash Flow (in millions)
Net income 348$ 322$ 97$ 155$ 137$ 142$ 531$ 142$ 146$ 81$ 105$ 474$ 110$ 158$ 157$ 425$ Add: Interest expense, net 73 89 24 21 20 14 79 19 17 22 19 77 16 21 14 51 Add: Depreciation and amortization expense 64 86 25 25 26 63 139 64 64 68 69 265 69 74 77 220 Add: Impairment charge 3 31 9 - - - 9 - - - - - - - - - Add: Provision for income taxes 8 25 8 8 8 8 32 6 9 8 7 30 5 8 8 21 Add: Non-cash compensation expense 5 6 3 2 1 2 8 4 2 4 4 14 5 3 4 12 Add: Unrealized (gain)/losses on commodity risk management activities 2 (2) - 3 3 (3) 3 (3) (1) (8) 11 (1) (1) 8 (21) (14) Add: Amortization of excess joint venture investment - - - - - - - - 1 - 1 2 - 1 1 2 Add: Proportionate share of unconsolidated affiliates interest, depreciation and provision for income taxes 24 16 3 4 9 5 21 4 6 6 4 20 4 7 6 17 Less: Adjustments to commodity hedges resulting from "push-down" accounting - - - - - (12) (12) - - - - - - - - - Less: Non-cash accrued liability adjustment - - - - - - - - - - (10) (10) - - - - Less: Gain on investments in affiliates (128) - - - - - - - - - - - - - - - Adjusted EBITDA 399 573 169 218 204 219 810 236 244 181 210 871 208 280 246 734 Less: Interest expense, net (73) (89) (24) (21) (20) (14) (79) (19) (17) (22) (19) (77) (16) (21) (14) (51) Less: Provision for current income taxes (3) (8) (27) (7) (9) (8) (10) (34) (7) (4) (7) (6) (24) (7) (9) (9) (25) Less: Amortization of fair value adjustments on long-term debt - - - - - (6) (6) (6) (6) (5) (6) (23) (4) (4) (3) (11) Less: Distributions versus Adjusted EBITDA of unconsolidated affiliates (36) (17) (3) (6) (16) (3) (28) (3) (8) (10) (6) (27) (6) (10) (10) (26) Less: Maintenance capital expenditures (37) (42) (7) (11) (11) (21) (50) (4) (18) (15) (16) (53) (18) (13) (16) (47) Less: Distributable cash flow attributable to noncontrolling interests (3) (10) (3) (3) (3) (2) (11) (3) (5) (5) (3) (16) (3) (4) (3) (10) Add: Acquisition costs reimbursement - - - - - - - - 3 3 3 9 3 3 3 9 Distributable Cash Flow (3) 242$ 388$ 125$ 168$ 146$ 163$ 602$ 194$ 189$ 120$ 157$ 660$ 157$ 222$ 194$ 573$
(1)
(2)
(3)
2012 2013 2014
Represents total segment sales and other operating revenue minus cost of products sold and operating expenses divided by total crude purchases.
Excludes amounts attributable to equity ownership interests which are not consolidated.
During the third quarter 2014, we changed our definition of distributable cash flow to conform to the presentation utilized by Energy Transfer Partners, L.P., the controlling member of our general partner. This change did not have a material impact on our distributable cash flows.