Sunoco 2014 Annual Report Download - page 44

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• EDF Trading - In May 2014, we acquired a crude oil purchasing and marketing business from EDF Trading North
America, LLC ("EDF"). The purchase consisted of a crude oil acquisition and marketing business and related assets
which handle 20 thousand barrels per day. The acquisition also included a promissory note that was convertible to
an equity interest in a rail facility (see Price River Terminal, below). The acquisition is included in the Crude Oil
Acquisition and Marketing segment.
• Price River Terminal - In May 2014, we acquired a 55 percent economic and voting interest in Price River
Terminal, LLC ("PRT"), a rail facility in Wellington, Utah. The terms of the acquisition provide PRT’s
noncontrolling interest holders the option to sell their interests to the Partnership at a price defined in the purchase
agreement. As a result, the noncontrolling interests attributable to PRT are excluded from the Partnership's total
equity and are instead reflected as redeemable interests in the condensed consolidated balance sheet as of
December 31, 2014. As the Partnership acquired a controlling financial interest in PRT, the entity is reflected as a
consolidated subsidiary of the Partnership from the acquisition date and is included in the Crude Oil Acquisition
and Marketing segment.
2013 Acquisition
• Marcus Hook Industrial Complex - In the second quarter 2013, we acquired Sunoco's Marcus Hook Industrial
Complex and related assets (the "Marcus Hook Industrial Complex"). The acquisition of terminalling and storage
assets located in Pennsylvania and Delaware included underground storage caverns with a capacity of
approximately 2 million barrels, deep water berths, rail access and trucking capabilities, and advantageous pipeline
access. In addition, the acquisition included commercial agreements, including a reimbursement agreement under
which Sunoco will reimburse us $40 million for certain operating expenses of the Marcus Hook Industrial Complex
through March 31, 2017. Since the transaction was with an entity under common control, we recorded the assets
acquired and liabilities assumed at Sunoco's net carrying value. The acquisition was included within the Terminal
Facilities segment.
Growth Capital Program
In 2014, we invested $2.5 billion in organic growth capital projects to improve operational efficiencies, reduce costs,
expand existing facilities and construct new assets to increase storage, throughput volume or the scope of services we are able to
provide. These included projects to: invest in the previously announced Mariner and Allegheny Access projects; invest in our
crude oil infrastructure by increasing pipeline capabilities through previously announced expansion capital projects in Texas and
Oklahoma; expand the service capabilities of our refined products and NGLs acquisition and marketing business; and upgrade
the service capabilities at our bulk marine terminals. We also increased activity in the pipeline transportation, storage, and
acquisition and marketing of NGLs in the northeastern United States with additional pipeline throughput on the delivery of
ethane from the Marcellus Shale Basin to Ontario and activities at our Marcus Hook Industrial Complex. Operational results
from these activities have been included in our Products Pipelines and Terminal Facilities segments. We will continue to expand
our NGL platform through previously announced growth projects that are expected to commence operations throughout 2015
and 2016.
During 2015, we expect to invest approximately $2 billion in expansion capital expenditures related to organic growth,
excluding acquisitions and investment in joint venture interests. This includes spending to capture more value from existing
assets such as the Marcus Hook Industrial Complex, our crude pipelines, our bulk marine terminals and our patented blending
technology. Expansion capital expenditures in 2015 will also include continued progress on our previously announced growth
projects:
Mariner East 1 and Mariner East 2
Mariner East 1 is a pipeline project to deliver NGLs from the Marcellus Shale areas in Western Pennsylvania to Marcus
Hook, Pennsylvania, which commenced initial operations in the fourth quarter 2014. Mariner East 2 is the second phase of
the project, which will expand the total takeaway capacity to 345,000 barrels per day. In addition to delivering NGLs from
the Marcellus and Utica Shale areas of Western Pennsylvania, Mariner East 2 will also deliver NGLs from the shale areas
in West Virginia and Eastern Ohio. Mariner East 1 and Mariner East 2 will deliver NGLs to our Marcus Hook Industrial
Complex on the Delaware River in Pennsylvania, where it will be processed, stored and distributed to various local,
domestic and waterborne markets. Mariner East 2 is expected to commence operations in the fourth quarter 2016.
Permian Express 2
The Permian Express 2 pipeline project involves the construction of approximately 300 to 400 miles of new crude oil
pipelines, with origins in multiple locations in West Texas: Midland, Garden City and Colorado City. With an expected
initial capacity of approximately 200,000 barrels per day, Permian Express 2 is expected to deliver to multiple refiners and
markets beginning in the third quarter 2015.