Sunoco 2014 Annual Report Download - page 53

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51
The following table presents the operating results and key operating measures for our Products Pipelines segment for the
periods presented:
Successor Predecessor
Year Ended
December 31,
2014
Year Ended
December 31,
2013
Three Months
Ended
December 31,
2013
Nine Months
Ended
September 30,
2013
Period from
Acquisition,
October 5, 2012
to December 31,
2012 (1)
Period from
January 1, 2012
to October 4,
2012 (1)
(in millions, except for barrel amounts)
(in millions,
except for
barrel amounts)
Sales and other operating revenue
Unaffiliated customers $ 150 $ 95 $ 27 $ 68 $ 24 $ 58
Affiliates 26 33 7 26 11 36
Intersegment revenue 2 2 — 2 — 2
Total sales and other operating
revenue $ 178 $ 130 $ 34 $ 96 $ 35 $ 96
Depreciation and amortization expense $ 32 $ 25 $ 7 $ 18 $ 7 $ 13
Impairment charge and
other related matters $ — $ — $ — $ — $ — $ 1
Adjusted EBITDA $ 85 $ 56 $ 13 $ 43 $ 14 $ 57
Pipeline throughput (thousands of bpd) (2) 552 571 586 566 601 565
Pipeline revenue per barrel (cents) (2) 88.1 62.5 63.9 62.0 63.0 62.2
(1) The effective date of the acquisition for accounting and reporting purposes was deemed to be October 1, 2012. The activity from
October 1, 2012 through October 4, 2012 was not material in relation to our financial position, results of operations or cash flows.
(2) Excludes amounts attributable to equity ownership interests in corporate joint ventures which are not consolidated.
Adjusted EBITDA for the Products Pipelines segment increased $29 million to $85 million for the year ended December
31, 2014 compared to $56 million for the year ended December 31, 2013. The increase was due primarily to higher average
pipeline revenue per barrel ($50 million), which was largely driven by the Mariner West project, and higher contributions from
joint venture interests ($8 million). These improvements were partially offset by increased costs attributable to growth projects
($30 million).
Adjusted EBITDA for the Products Pipelines segment for the fourth quarter 2013 decreased $1 million compared to the
period from October 5, 2012 to December 31, 2012. The decrease was driven by lower pipeline revenue on reduced throughput
volumes.
Adjusted EBITDA for the Products Pipelines segment decreased $14 million to $43 million for the nine months ended
September 30, 2013, compared to $57 million for the period from January 1, 2012 to October 4, 2012. Results for 2012 included
a $5 million non-recurring gain recognized in connection with the sale of the Big Sandy terminal and pipeline assets and a $6
million non-recurring gain recognized by one of our joint venture interests. Excluding these items, Adjusted EBITDA decreased
$3 million due primarily to higher selling, general and administrative expenses ($2 million) and increased operating expenses
($7 million), which included lower pipeline operating gains and higher integrity management costs. These factors were partially
offset by higher contributions from our joint venture interests ($6 million).
Liquidity and Capital Resources
Liquidity
Cash generated from operations and borrowings under our $1.54 billion in credit facilities are our primary sources of
liquidity. At December 31, 2014, we had a net working capital surplus of $38 million and available borrowing capacity of $1.35
billion under our revolving credit facilities. We supplement our cash flows from operations with proceeds from our ATM
program and, periodically, with debt and equity financing activities.