Sunoco 2007 Annual Report Download - page 25

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The following table sets forth Sunoco’s planned and actual capital expenditures for addi-
tions to properties, plants and equipment. Actual capital expenditures are presented in a
manner consistent with the 2008 plan amounts in the table as well as with amounts pre-
sented in Sunoco’s consolidated financial statements. The Company’s significant acquis-
itions (see Note 2 to the consolidated financial statements) are included as footnotes to
the table so that total capital outlays for each business unit can be determined.
(Millions of Dollars) 2008 Plan 2007 2006 2005
Refining and Supply $ 899 $ 700 $ 712 $687
Retail Marketing 157 111 112 117
Chemicals 64 66* 62** 55
Logistics 127 120 119*** 79†
Coke 102 182†† 14††† 32
Consolidated capital expenditures $1,349 $1,179 $1,019 $970
* Excludes $18 million acquisition of the minority interest in the Epsilon polypropylene operations.
** Excludes a $14 million purchase price adjustment to the 2001 Aristech Chemical Corporation acquisition attributable to an earn-out
payment made in 2006. The earn out, which relates to 2005, was due to realized margins for phenol exceeding certain agreed-upon
threshold amounts.
*** Excludes the acquisition of two separate crude oil pipeline systems and related storage facilities located in Texas, one from Alon USA
Energy, Inc. for $68 million and the other from Black Hills Energy, Inc. for $41 million.
†Excludes $100 million acquisition from ExxonMobil of a crude oil pipeline system and related storage facilities located in Texas and $5
million acquisition from Chevron of an ownership interest in the Mesa Pipeline.
†† Excludes $39 million investment in Brazilian cokemaking operations.
††† Excludes $155 million acquisition of the minority interest in the Jewell cokemaking operations.
The Company’s 2008 planned capital expenditures consist of $406 million for income im-
provement projects, as well as $365 million for base infrastructure spending, $151 million
for turnarounds at the Company’s refineries, $273 million for projects at the Philadelphia
and Toledo refineries under the 2005 Consent Decree and $154 million for other
environmental projects, including $73 million related to a project at the Tulsa refinery to
enable the production of diesel fuel that meets new product specifications. The $406 mil-
lion of outlays for income improvement projects consist of $158 million related to the
project at the Philadelphia refinery to increase ultra-low-sulfur-diesel fuel production
capability, $40 million for other refinery upgrade projects, $100 million related to growth
opportunities in the Logistics business, including amounts attributable to projects to in-
crease crude oil storage capacity at the Partnership’s Nederland terminal and to add a
crude oil pipeline which will connect the terminal to Motiva Enterprise LLC’s Port Ar-
thur, TX refinery, $79 million towards construction of an approximately $250 million sec-
ond 550 thousand tons-per-year cokemaking facility and associated cogeneration power
plant in Haverhill, OH and $29 million for various other income improvement projects in
Chemicals and Retail Marketing. The $365 million of base infrastructure spending in-
cludes several projects to upgrade Sunoco’s existing asset base. These projects include $18
million for new processing equipment, boilers and reinstrumentation projects at the Com-
pany’s refineries and $94 million for additional investments to upgrade Sunoco’s existing
retail network and enhance its APlus®convenience store presence.
The Company’s 2007 capital expenditures consisted of $494 million for income improve-
ment projects, as well as $358 million for base infrastructure spending, $97 million for
turnarounds at the Company’s refineries, $182 million for projects at the Philadelphia and
Toledo refineries under the 2005 Consent Decree and $48 million for other environmental
projects. The $494 million of outlays for income improvement projects consisted of $126
million attributable to the Philadelphia Project, $24 million attributable to the crude unit
debottleneck project at the Toledo refinery, $33 million relating to the project at the
Philadelphia refinery to increase ultra-low-sulfur-diesel fuel production capability, $35 mil-
lion for other refinery upgrade projects, $94 million related to growth opportunities in the
Logistics business, $165 million towards construction of the second cokemaking facility
and associated cogeneration power plant in Haverhill, OH and $17 million for various
other income improvement projects in Chemicals and Retail Marketing. The $358 million
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