Sunoco 2014 Annual Report Download - page 56

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• Acquisitions to acquire and integrate complementary assets to grow the business, to improve operational efficiencies or
reduce costs.
The following table summarizes maintenance and expansion capital expenditures, including amounts paid for acquisitions
and investments in joint venture interests, for the years ended December 31, 2014 and 2013, and the periods from October 5,
2012 to December 31, 2012 and from January 1, 2012 to October 4, 2012:
Successor Predecessor
Year Ended December 31, Period from Acquisition,
October 5, 2012 to
December 31, 2012 Period from January 1,
2012 to October 4, 2012
2014 2013
(in millions) (in millions)
Expansion $ 2,483 $ 965 $ 118 $ 206
Maintenance 76 53 21 29
Acquisitions 406 60 — —
Investments in joint venture interest 42 — — —
Total $ 3,007 $ 1,078 $ 139 $ 235
Expansion capital expenditures for the years ended December 31, 2014 and 2013 included projects to: invest in the
previously announced Mariner and Allegheny Access projects; invest in our crude oil infrastructure by increasing our 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 expect expansion capital spending, excluding acquisitions and investment in joint venture interests, to be
approximately $2 billion in 2015. Projected expansion capital includes spending to capture more value from existing assets, such
as the Marcus Hook Industrial Complex, our bulk marine terminals, and our patented blending technology, as well as continued
progress on our previously announced growth projects.
Maintenance capital expenditures primarily consist of recurring expenditures at each of the business segments such as
pipeline integrity costs, pipeline relocations, repair and upgrade of field instrumentation, including measurement devices, repair
and replacement of tank floors and roofs, upgrades of cathodic protection systems and related equipment, and the upgrade of
pump stations. Management expects maintenance capital expenditures to be approximately $70 million in 2015.
Investment in joint venture interests in 2014 consisted of our acquisition of an additional ownership interest in Explorer
Pipeline Company, which increased our ownership interest from 9.4 percent to 13.3 percent.
In 2014, acquisitions included a crude oil acquisition and marketing business, a controlling financial interest in a rail
facility, and the acquisition of additional ownership interest in West Texas Gulf. In 2013, acquisitions consisted of the
acquisition of the Marcus Hook Industrial Complex from Sunoco.
Our capital expenditures, including any acquisitions, are expected to be funded from cash provided by operations,
borrowings under the credit facilities, and with proceeds from debt and equity offerings, as necessary.
Contractual Obligations
The following table sets forth the aggregate amount of long-term debt maturities, annual rentals applicable to non-
cancelable operating leases, and purchase commitments related to future periods at December 31, 2014:
Year Ended December 31, Thereafter Total
2015 2016 2017 2018 2019
(in millions)
Long-term debt:
Principal $ 35 $ 175 $ — $ 150 $ — $ 3,800 $ 4,160
Interest 205 201 196 196 194 3,350 4,342
Operating leases 7 5 4 1 — — 17
Purchase obligations 4,112 514 499 486 418 1,405 7,434
$ 4,359 $ 895 $ 699 $ 833 $ 612 $ 8,555 $ 15,953
Our operating leases, as reported above, include leases of office space, third-party pipeline capacity, and other property and
equipment with initial or remaining non-cancelable terms in excess of one year.