Sunoco 2014 Annual Report Download - page 5

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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.
Our primary business strategies focus on generating stable cash flows, increasing pipeline and terminal throughput,
utilizing our acquisition and marketing assets to maximize value, pursuing economically accretive organic growth opportunities
and improving operating efficiencies. We believe that the effective execution of these strategies will result in continued
increases in distributions to our unitholders.
We are subject to competition from third parties in all of our operations. In addition, our businesses make use of a
portfolio of complementary crude oil, refined products and NGL pipelines, terminalling, and acquisition and marketing assets.
While this integration creates opportunities and synergies within our operations, assets are sometimes repurposed among our
business lines to maximize their utility and profitability. We will continue to utilize our assets in a manner that favors our
consolidated results.
Crude Oil Pipelines
Crude Oil Pipelines
The crude oil pipelines consist of approximately 5,800 miles of crude oil trunk and gathering pipelines in the southwest
and midwest United States. These pipelines include ownership of the West Texas Gulf pipelines, a controlling financial interest
in the Mid-Valley pipeline, as well as a 50 percent ownership interest in a joint venture to construct the SunVit pipeline. Our
pipelines access several trading hubs, including the largest trading hub for crude oil in the United States located in Cushing,
Oklahoma, as well as other trading hubs located in Midland, Colorado City and Longview, Texas. Our crude oil pipelines also
deliver to and connect with other pipelines that deliver crude oil to a number of refineries.
The table below summarizes the average daily number of barrels of crude oil and other feedstocks transported on our
crude oil pipelines in each of the years presented:
Year Ended December 31,
2014 2013 2012
Pipeline throughput (thousands of barrels per day ("bpd")) 2,125 1,866 1,556
Southwest United States
Our pipelines in the southwest United States include approximately 3,150 miles of crude oil trunk pipelines and
approximately 300 miles of crude oil gathering pipelines in Texas. Revenues are generated from tariffs paid by shippers
utilizing our transportation services. These tariffs are filed with the Railroad Commission of Texas ("Texas R.R.C.") and the
Federal Energy Regulatory Commission ("FERC").
We also own and operate a crude oil pipeline and gathering system in Oklahoma. This system contains approximately
1,050 miles of crude oil trunk pipelines and approximately 200 miles of crude oil gathering pipelines. We have the ability to
deliver substantially all of the crude oil gathered on our Oklahoma system to Cushing. Revenues are generated on our
Oklahoma system from tariffs paid by shippers utilizing our transportation services. We file these tariffs with the Oklahoma
Corporation Commission ("OCC") and the FERC. We are one of the largest purchasers of crude oil from producers in the state,
and our crude oil acquisition and marketing business is the primary shipper on our Oklahoma system.
In December 2014, we acquired an additional 28.3 percent ownership interest in the West Texas Gulf Pipe Line Company
("West Texas Gulf") from Chevron Pipe Line Company, increasing our controlling financial interest in this consolidated
subsidiary to 88.6 percent. The remaining 11.4 percent ownership interest was acquired from Southwest Pipeline Holding
Company, LLC ("Citgo") in January 2015. These transactions resulted in a wholly-owned interest in a strategic crude pipeline
running from Colorado City to Goodrich and Longview, Texas.
In the third quarter 2013, we entered into an agreement to form SunVit, a joint venture with Vitol, Inc. ("Vitol"), in which
each party will maintain a 50 percent ownership interest. SunVit will construct and own a crude oil pipeline, which will
originate in Midland, Texas and run to Garden City, Texas. The new pipeline will connect into our Permian Express 2 pipeline
project and will provide additional takeaway capacity from the Permian Basin. SunVit is expected to commence operations in
2015.
Midwest United States
We have a controlling financial interest in the Mid-Valley pipeline system which owns approximately 1,000 miles of
crude oil pipelines that originate in Longview, Texas and pass through Louisiana, Arkansas, Mississippi, Tennessee, Kentucky,