Sunoco 2008 Annual Report Download - page 10

Download and view the complete annual report

Please find page 10 of the 2008 Sunoco annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 120

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120

Sunoco owns and operates facilities in Philadelphia, PA and Haverhill, OH, which produce phenol and
acetone, and in LaPorte, TX, Neal, WV, Bayport, TX and Marcus Hook, PA, which produce polypropylene.
Sunoco intends to permanently shut down the Bayport polypropylene facility no later than April 30, 2009 (see
“Chemicals” below).
Sunoco owns, principally through Sunoco Logistics Partners L.P. (the “Partnership”) (a master limited
partnership), a geographically diverse and complementary group of pipelines and terminal facilities which
transport, terminal and store refined products and crude oil. Sunoco has a 43 percent interest in the Partnership,
which includes a 2 percent general partnership interest (see “Logistics” below).
Sunoco, through SunCoke Energy, Inc. and its affiliates (individually and collectively, “SunCoke Energy”),
makes high-quality, blast-furnace coke at its facilities in East Chicago, IN (Indiana Harbor), Vansant, VA
(Jewell) and Franklin Furnace, OH (Haverhill), and produces metallurgical coal from mines in Virginia primarily
for use at the Jewell cokemaking facility. SunCoke Energy is also the operator and has an equity interest in a
facility in Vitória, Brazil (Vitória). An additional cokemaking facility is currently under construction in Granite
City, IL which is expected to be completed in the fourth quarter of 2009 (see “Coke” below).
The following are separate discussions of Sunoco’s business segments.
Refining and Supply
The Refining and Supply business manufactures petroleum products, including gasoline, middle distillates
(mainly jet fuel, heating oil and diesel fuel) and residual fuel oil as well as commodity petrochemicals, including
olefins and their derivatives (ethylene, ethylene oxide polymers and refinery-grade propylene) and aromatics and
their derivatives (benzene, cumene, cyclohexane, toluene and xylene) at the Marcus Hook, Philadelphia, Eagle
Point and Toledo refineries, and sells these products to other Sunoco business units and to wholesale and
industrial customers. This business also manufactures petroleum and lubricant products at the Tulsa refinery.
The Company’s refinery operations are comprised of Northeast Refining (the Marcus Hook, Philadelphia
and Eagle Point refineries) and MidContinent Refining (the Toledo and Tulsa refineries). The following tables
set forth information concerning the Company’s refinery operations over the last three years (in thousands of
barrels daily and percentages):
2008
Northeast
Refining
Mid-
Continent
Refining Total
Crude Unit Capacity ........................................ 655.0 255.0 910.0
Crude Inputs as Percent of Crude Unit Rated Capacity ............. 87% 85% 86%
Conversion Capacity* ....................................... 285.0 122.0 407.0
Conversion Capacity Utilized ................................. 88% 85% 87%
Throughputs:
Crude Oil ............................................... 566.7 216.6 783.3
Other Feedstocks ......................................... 75.7 9.1 84.8
Total Throughputs ...................................... 642.4 225.7 868.1
Products Manufactured:
Gasoline ............................................... 304.0 95.9 399.9
Middle Distillates ........................................ 230.9 85.3 316.2
Residual Fuel ........................................... 51.8 4.6 56.4
Petrochemicals .......................................... 28.5 6.0 34.5
Lubricants .............................................. 11.4 11.4
Other .................................................. 50.6 31.5 82.1
Total Production ....................................... 665.8 234.7 900.5
Less Production Used as Fuel in Refinery Operations ............ 29.9 10.6 40.5
Total Production Available for Sale ........................ 635.9 224.1 860.0
*Represents capacity to upgrade lower-value, heavier petroleum products into higher-value, lighter products.
2