Sunoco 2004 Annual Report Download - page 13

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• In April 2004, Sunoco completed the $181 million purchase from ConocoPhillips of
340 Mobil®retail outlets located primarily in Delaware, Maryland, Virginia and Wash-
ington, D.C. The income contribution from these sites amounted to $15 million after
tax in 2004.
• During the second quarter of 2004, Sunoco sold its private label consumer and commer-
cial credit card business and related accounts receivable to Citibank, generating $100
million of cash proceeds.
• In August 2004, Sun Coke entered into an agreement with two major steel companies
with respect to a 1.6 million metric tons-per-year cokemaking facility and associated
cogeneration power plant in Vitória, Brazil with an estimated cost of $350-$400 mil-
lion, which is expected to be operational in 2006. Sun Coke will operate the cokemak-
ing facility and will have an initial 1 percent ownership interest in this venture and an
option to purchase, at net book value, an additional 19 percent interest.
• In September 2004, Sunoco completed the sale of its one-third interest in the Belvieu
Environmental Fuels (“BEF”) MTBE production facility to Enterprise Products Operat-
ing L.P., generating $15 million of cash proceeds.
• In 2004, Sunoco completed a debt restructuring, which reduced its outstanding debt by
approximately $100 million and lowered its weighted average interest rate. Pretax
interest expense is expected to decline approximately $20 million in 2005 as a result of
the debt restructuring.
• Effective in the second quarter of 2005, Sunoco increased the quarterly dividend paid on
common stock to $.40 per share ($1.60 per year), following increases from $.275 per
share to $.30 per share in the third quarter of 2004 and from $.25 per share to $.275 per
share in the fourth quarter of 2003.
• During 2004 and 2003, the Company repurchased 8.0 and 2.9 million shares of its out-
standing common stock for $568 and $136 million, respectively. In September 2004,
the Company announced that its Board of Directors approved an increase of $500 mil-
lion to the share repurchase authorization. At December 31, 2004, the Company had a
remaining authorization from its Board to purchase up to $227 million of Company
common stock. In March 2005, an additional $500 million authorization was ap-
proved. Sunoco expects to continue to purchase Company common stock in the open
market from time to time depending on prevailing market conditions and available
cash.
For additional information regarding the above actions, see Notes 2, 3, 11, 13 and 14 to
the consolidated financial statements.
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