Sunoco 2005 Annual Report Download - page 27

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(the “Philadelphia Project”). Refining and Supply’s capital program also includes a $365
million project to expand the Toledo refinery’s crude unit capacity by 40 thousand barrels
per day and its conversion capacity by 24 thousand barrels per day (the “Toledo Project”).
This project will also upgrade technology at this facility to improve product yields and
feedstock flexibility. The following table sets forth the expected capital outlays for each of
these projects by type of capital:
(Millions of Dollars)
Philadelphia
Project
Toledo
Project
Income improvement $190 $180
Base infrastructure and turnarounds 40 70
Environmental 70 115
$300 $365
Achievement of expected completion dates for capital projects is subject to the timely re-
ceipt of all necessary permits.
The following table sets forth Sunoco’s planned and actual capital expenditures for addi-
tions to properties, plants and equipment. Actual capital expenditures are presented in a
manner consistent with the 2006 plan amounts in the table as well as with amounts pre-
sented in Sunoco’s consolidated financial statements. The Company’s significant acquis-
itions (see Note 2 to the consolidated financial statements) are included as footnotes to
the table so that total capital outlays for each business unit can be determined.
(Millions of Dollars) 2006 Plan 2005 2004 2003
Refining and Supply $616 $687 $463* $245
Retail Marketing 139 117 103** 107***
Chemicals 84 55 56* 31†
Logistics 117 79†† 75* 39
Coke 15 32 135 5
Consolidated capital expenditures $971 $970 $832 $427
* Excludes $250 million acquisition from El Paso Corporation of the Eagle Point refinery and related chemical and logistics assets,
which includes inventory. The $250 million purchase price is comprised of $190, $40 and $20 million attributable to Refining and
Supply, Chemicals and Logistics, respectively.
** Excludes $181 million acquisition from ConocoPhillips of 340 retail outlets located primarily in Delaware, Maryland, Virginia and
Washington, D.C., which includes inventory.
*** Excludes $162 million purchase from a subsidiary of Marathon Ashland Petroleum LLC of 193 retail gasoline sites located primarily in
Florida and South Carolina, which includes inventory.
†Excludes $198 million associated with the formation of a propylene partnership with Equistar Chemicals, L.P. and a related supply
contract and the acquisition of Equistar’s Bayport polypropylene facility, which includes inventory.
†† Excludes $100 million acquisition from ExxonMobil of a crude oil pipeline system and related storage facilities located in Texas and $5
million acquisition from Chevron of an ownership interest in the Mesa Pipeline.
The Company’s 2006 planned capital expenditures consist of $352 million for income im-
provement projects as well as $293 million for base infrastructure spending, $101 million
for turnarounds at the Company’s refineries and $225 million for environmental projects.
The $352 million of outlays for income improvement projects consist of $107 million at-
tributable to the Philadelphia Project, $38 million attributable to the Toledo Project, $76
million for other refinery upgrade projects and $131 million for various other income im-
provement projects, primarily in Chemicals, Retail Marketing and Logistics. The $293 mil-
lion of base infrastructure spending includes several projects to upgrade Sunoco’s existing
asset base. These projects include $34 million for new processing equipment, boilers and
reinstrumentation projects at the Company’s refineries and $85 million for additional in-
vestments to upgrade Sunoco’s existing retail network and enhance its APlus®con-
venience store presence. Base infrastructure spending also includes $14 million for
conversion of the Mobil®sites acquired from ConocoPhillips in 2004 to Sunoco®branded
outlets. The $225 million of environmental spending includes $44 million related to the
Philadelphia Project and $91 million to essentially complete the spending to comply with
Tier II low-sulfur gasoline and on-road diesel fuel specifications (see “Environmental Mat-
ters” below). Through year-end 2005, the Company’s Tier II spending totaled $637 mil-
25