Energy Transfer 2015 Annual Report Download - page 86

Table of Contents
Investment in Sunoco Logistics
Years Ended December 31,
2015
2014
Change
Revenue $ 10,486
$ 18,088
$ (7,602)
Cost of products sold 9,307
17,135
(7,828)
Gross margin 1,179
953
226
Unrealized (gains) losses on commodity risk management activities 4
(17)
21
Operating expenses, excluding non-cash compensation expense (158)
(167)
9
Selling, general and administrative expenses, excluding non-cash compensation expense (92)
(107)
15
Inventory valuation adjustments 162
258
(96)
Adjusted EBITDA related to unconsolidated affiliates 58
49
9
Other —
2
(2)
Segment Adjusted EBITDA $ 1,153
$ 971
$ 182
  For the year ended December 31, 2015 compared to the prior year, Segment Adjusted EBITDA related to Sunoco Logistics
increased due to the net impacts of the following:
• an increase of $130 million from Sunoco Logistics’ NGLs operations, primarily due to contributions from Sunoco Logistics’ Mariner NGLs projects
which commenced operations in late 2014 and 2013. These projects contributed to improved results related to Sunoco Logistics’ NGLs pipeline and
terminal operations of $160 million, including Sunoco Logistics’ Nederland and Marcus Hook facilities. These positive impacts were partially offset by
lower results from Sunoco Logistics’ NGLs acquisition and marketing activities of $33 million driven largely by narrowed blending margins compared
to the prior year period; and
• an increase of $65 million from Sunoco Logistics’ refined products operations, primarily due to higher results from Sunoco Logistics’ refined products
pipelines of $33 million driven largely by the commencement of operations on Sunoco Logistics’ Allegheny Access project in 2015. Terminalling
activities at Sunoco Logistics’ refined products marketing terminals, as well as Sunoco Logistics’ Eagle Point and Marcus Hook facilities, increased
compared to the prior year period by $15 million. Higher contributions from Sunoco Logistics’ joint venture interests of $10 million and refined
products acquisition and marketing activities of $6 million also contributed to the increase; offset by
• a decrease of $13 million from Sunoco Logistics’ crude oil operations, primarily due to lower results from Sunoco Logistics’ crude oil acquisition and
marketing activities of $96 million driven by reduced margins which were negatively impacted by contracted crude oil differentials compared to the
prior year period. This impact was partially offset by higher results from Sunoco Logistics’ crude oil pipelines of $71 million largely attributable to
expansion projects placed into service in 2015 and 2014, and higher results from Sunoco Logistics’ crude oil terminals of $14 million.
80