Sunoco 2011 Annual Report Download - page 43

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• Completed the separation of SunCoke Energy from Sunoco by distributing its remaining shares of
SunCoke Energy common stock to Sunoco shareholders by means of a spin-off on January 17,
2012.
Sunoco continues to shift its focus toward maximizing the potential of its logistics and retail businesses
through growth and efficient operations and its ability to capture opportunities presented by the market. Sunoco
completed the following initiatives in these businesses is connection with this strategy:
Logistics:
• Completed a three-for-one split of its limited partnership units on December 2, 2011;
• Received 3.94 million deferred distribution units from Sunoco Logistics Partners L.P. in exchange
for the tank farm and related assets located at the Eagle Point refinery;
• Completed acquisitions in August 2011 totaling $295 million including inventory of a crude oil
purchasing and marketing business from Texon L.P. and a refined products terminal from
affiliates of ConocoPhillips;
• Exercised rights to acquire additional ownership interests in pipeline joint ventures for $86 and
$91 million during 2011 and 2010, respectively;
• Completed an acquisition of a butane blending business in July 2010 for $152 million including
inventory;
• Completed acquisitions totaling $50 million in the third quarter of 2009 of a crude oil pipeline
which services Gary Williams’ Wynnewood, OK refinery and a refined products terminal in
Romulus, MI; and
• Completed construction in 2009 of a crude oil pipeline from the Nederland terminal to Motiva
Enterprise LLC’s Port Arthur, TX refinery and three related crude oil storage tanks at a total cost
of $94 million.
Retail Marketing:
• Entered into leasehold agreements for 14 retail locations in August 2011. Each site, located in
central Pennsylvania, will be company operated and include an APlus®convenience store;
• Reached an agreement in January 2011 to begin operating the nine fuel stations at service plazas
along the Garden State Parkway and announced an extension on the two fuel stations along the
Palisades Parkway, both located in New Jersey;
• Acquired 25 retail locations in central and northern New York and was selected by the Ohio
Turnpike Commission to operate the fuel stations at the 16 service plazas along the Ohio Turnpike
in December 2010; and
• Added more than 200 distributor outlets to its portfolio of retail sites during 2010.
Sunoco also completed the following corporate initiatives to increase overall profitability, strengthen the
balance sheet and enhance shareholder value:
• Repurchased 14.41 million shares of its outstanding common stock for $500 million during the
third quarter of 2011;
• Continued its initiative to outsource certain back office processes which commenced in 2010,
including information technology, finance and accounting transaction processing, and indirect
procurement. This reflects Sunoco’s continued commitment in its expense reduction program,
which is critical to improving the Company’s competitiveness;
• Continued its ongoing business improvement initiative that commenced in 2009 to reduce the
Company’s cost base;
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