Sunoco 2010 Annual Report Download - page 11

In the fourth quarter of 2009, Sunoco permanently shut down all process units at the Eagle Point refinery
due to weak demand and increased global refining capacity. As part of this decision, the Company shifted
production from the Eagle Point refinery to the Marcus Hook and Philadelphia refineries which are now
operating at higher capacity utilization. Approximately 380 employees were terminated in connection with the
shutdown. All processing units ceased production in early November 2009. In connection with this decision,
Sunoco recorded a $284 million after-tax provision in the second half of 2009 to write down the affected assets to
their estimated fair values and to establish accruals for employee terminations, pension and postretirement
curtailment losses and other related costs. In 2010, Sunoco recorded an additional $34 million after-tax provision
primarily for additional asset write-downs and contract losses in connection with excess barge capacity resulting
from the shutdown of the Eagle Point refining operations. These charges are reported as part of the Asset Write-
Downs and Other Matters shown separately in Corporate and Other in the Earnings Profile of Sunoco Businesses.
In December 2008, Sunoco announced its intention to sell its Tulsa refinery or convert it to a terminal. In
connection with this decision, during 2008, Sunoco recorded a $95 million after-tax provision to write down the
affected assets to their estimated fair values. On June 1, 2009, Sunoco completed the sale of its Tulsa refinery to
Holly Corporation. The transaction also included the sale of inventory attributable to the refinery which was
valued at market prices at closing. Sunoco received a total of $157 million in cash proceeds from this divestment,
comprised of $64 million from the sale of the refinery and $93 million from the sale of the related inventory.
Sunoco recognized a $41 million net after-tax gain on divestment of this business. The charge recorded in 2008
and the gain on divestment are reported separately in Corporate and Other in the Earnings Profile of Sunoco
Businesses. As a result of the sale, the Tulsa refinery has been classified as a discontinued operation for all
periods presented in the Consolidated Financial Statements included in Item 8.
The following table sets forth information concerning the Company’s refinery operations (excluding Tulsa)
over the last three years (in thousands of barrels daily and percentages):
2010 2009 2008
Crude Unit Capacity at December 31*.............................. 675.0 675.0 825.0
Crude Inputs as Percent of Crude Unit Rated Capacity ................. 87% 78% 86%
Conversion Capacity at December 31** ............................. 343.0 343.0 398.0
Conversion Capacity Utilized .................................... 87% 79% 87%
Throughputs:
Crude Oil .................................................. 588.8 625.4 706.5
Other Feedstocks ............................................ 56.4 70.8 84.8
Total Throughputs ......................................... 645.2 696.2 791.3
Products Manufactured:
Gasoline ................................................... 337.0 357.9 382.9
Middle Distillates ............................................ 230.6 225.3 285.4
Residual Fuel ............................................... 34.6 59.2 56.4
Petrochemicals .............................................. 23.4 27.3 34.5
Other ...................................................... 48.5 54.7 64.4
Total Production ........................................... 674.1 724.4 823.6
Less Production Used as Fuel in Refinery Operations ................ 31.3 34.5 38.0
Total Production Available for Sale ............................ 642.8 689.9 785.6
*Reflects a 150 thousand barrels-per-day reduction in November 2009 attributable to the shutdown of the Eagle Point refinery.
**Represents capacity to upgrade lower-value, heavier petroleum products into higher-value, lighter products. Reflects a
55 thousand barrels-per-day reduction in November 2009 attributable to the shutdown of the Eagle Point refinery.
Sunoco meets all of its crude oil requirements through purchases from third parties. There has been an
ample supply of crude oil available to meet worldwide refining needs, and Sunoco has been able to supply its
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