Sunoco 2003 Annual Report Download - page 6

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4
Refining and Supply
• Acquired 150,000 barrels-per-day Eagle
Point refinery for $235 million, including
inventory, and increased total refining capacity
by over 20 percent (January 2004)
Retail Marketing
• Acquired 193 Speedway retail gasoline sites,
primarily in Florida and South Carolina, from
Marathon Ashland Petroleum LLC for $162
million, including inventory (June 2003)
• Agreed to purchase 385 retail sites in
Delaware, Maryland, Virginia and Washington,
D.C. from ConocoPhillips for $187 million,
plus related inventory (January 2004)
• Substantially completed a program to sell
our interests in certain retail sites in Michigan
and southern Ohio into the Sunoco distributor
channel, generating $46 million of cash and
retaining volumes within the Sunoco®brand
(Fourth Quarter 2003)
Chemicals
• Secured a favorable long-term supply of
propylene and acquired a 400 million pounds-
per-year polypropylene facility from Equistar
Chemicals L.P. for $198 million (March 2003)
• Completed sale of plasticizers business to
BASF for approximately $90 million
(January 2004)
Logistics
• Sunoco Logistics Partners L.P. (NYSE: SXL)
unit values increased 54 percent in 2003
and annual distributions were increased
from $1.95 to $2.20 per unit
Coke
• Began construction of a 550,000 tons-per-
year, $140 million cokemaking facility in
Haverhill, Ohio which is expected to be
operational in March 2005 and will supply
coke to International Steel Group under a
long-term agreement
Sunoco 2003–2004 Strategic Actions
$1.80 to $2.20 per unit
(annualized) and, as of March 1,
2004, the unit value has more than
doubled – an increase of $384 million
in the market value of Sunoco’s owner-
ship interest. This strategic step has been
an excellent way to unlock additional value
for Sunoco shareholders and has posi-
tioned SXL to grow in a very competitive
market.
In our Coke business, considerable
progress was made in developing
prospects for our proprietary, low-cost
cokemaking technology. In December 2003,
we began construction of a 550,000 tons-
per-year cokemaking facility in Haverhill,