Energy Transfer 2013 Annual Report Download - page 12

Table of Contents
Sunoco Logistics’ crude oil pipelines transport crude oil principally in Oklahoma and Texas. Sunoco Logistics’ crude oil pipelines consist of approximately
4,900 miles of crude oil trunk pipelines and approximately 500 miles of crude oil gathering lines that supply the trunk pipelines.
Sunoco Logistics’ crude oil acquisition and marketing business gathers, purchases, markets and sells crude oil principally in the mid-continent United
States, utilizing its fleet of approximately 300 crude oil transport trucks, approximately 130 crude oil truck unloading facilities as well as third-party assets.
Sunoco Logistics’ refined products terminals receive refined products from pipelines, barges, railcars, and trucks and distribute them to third parties and
certain affiliates, who in turn deliver them to end-users and retail outlets. Sunoco Logistics’ terminal facilities operate with an aggregate storage capacity of
approximately 46 million barrels, including the 22 million barrel Nederland, Texas crude oil terminal; the 5 million barrel Eagle Point, New Jersey refined
products and crude oil terminal; the 5 million barrel Marcus Hook, Pennsylvania refined products and NGL facility; approximately 39 active refined
products marketing terminals located in the northeast, midwest and southwest United States; and several refinery terminals located in the northeast United
States.
Sunoco Logistics’ refined product pipelines transport refined products including multiple grades of gasoline, middle distillates (such as heating oil, diesel and
jet fuel) and LPGs (such as propane and butane) from refineries to markets. Sunoco Logistics’ refined products pipelines consist of approximately 2,500
miles of refined product pipelines and joint venture interests in four refined products pipelines in selected areas of the United States.
Retail Marketing Segment
Our retail marketing and wholesale distribution business segment consists of the following:
•Retail marketing operations consist of the sale of gasoline and middle distillates at retail locations and operation of convenience stores in 24 states,
primarily on the east coast and in the midwest region of the United States. The highest concentrations of outlets are located in Connecticut, Florida,
Maryland, Massachusetts, Michigan, New Jersey, New York, Ohio, Pennsylvania and Virginia.
•Sunoco also engages in the distribution of gasoline (including gasoline blendstocks such as ethanol), distillates, and other petroleum products to
wholesalers, retailers and other commercial customers.
All Other Segment
Segments below the quantitative thresholds are classified as “All other.” These include the following:
•We own 100% of the membership interests of Energy Transfer Group, L.L.C. (“ETG”), which owns all of the partnership interests of Energy Transfer
Technologies, Ltd. (“ETT”). ETT provides compression services to customers engaged in the transportation of natural gas, including our other segments.
•We own all of the outstanding equity interests of a natural gas compression equipment business with operations in Arkansas, California, Colorado,
Louisiana, New Mexico, Oklahoma, Pennsylvania and Texas.
•We own common units in AmeriGas, a publicly traded master limited partnership engaged in retail propane marketing. We acquired this interest when we
contributed our retail propane operations to AmeriGas in January 2012. As of December 31, 2013, we owned common units representing approximately
24% of AmeriGas’ outstanding common units and, following a sale of a portion of these units in a public offering in January 2014, we own 12.9 million
AmeriGas common units representing approximately 14% of AmeriGas’ outstanding common units.
•Southern Union previously had operations providing local distribution of natural gas in Missouri and Massachusetts. The operations were conducted
through the Southern Union’s operating divisions: MGE and NEG. Both of these operating divisions were sold in 2013.
•Sunoco owns an approximate 33% non-operating interest in PES, a refining joint venture with The Carlyle Group, L.P. (“The Carlyle Group”), which
owns a refinery in Philadelphia. Sunoco has a supply contract for gasoline and diesel produced at the refinery for its retail marketing business.
•We own an investment in Regency related to the Regency common and Class F units received by Southern Union in exchange of its interest in Southern
Union Gathering Company, LLC to Regency on April 30, 2013.
•We conduct marketing operations in which we market the natural gas that flows through our gathering and intrastate transportation assets, referred to as
on-system gas. We also attract other customers by marketing volumes of natural gas that do not move through our assets, referred to as off-system gas.
For both on-system and off-system gas, we purchase natural gas from natural gas producers and other suppliers and sell that natural gas to utilities,
industrial consumers, other marketers and pipeline companies, thereby generating gross margins based upon the difference between the purchase and
resale prices
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