Sunoco 2010 Annual Report Download - page 46

• Entered into agreements with nine new distributors during 2010 adding more than 100 sites to its
retail portfolio; and
• Completed the sale of the retail heating oil and propane distribution business in September 2009
and received $83 million in cash proceeds from this divestment.
Logistics:
• Completed an acquisition of a butane blending business in July 2010 for $152 million including
inventory;
• Exercised rights to acquire additional ownership interests in pipeline joint ventures for $91 million
in the third quarter of 2010;
• Completed acquisitions totaling $50 million in the third quarter of 2009 of a crude oil pipeline
which services Gary Williams’ Wynnewood, OK refinery and a refined products terminal in
Romulus, MI;
• Completed an acquisition totaling $185 million in November 2008 of a refined products pipeline
system, refined products terminal facilities and certain other related assets located in Texas and
Louisiana; and
• Completed construction in 2009 of a crude oil pipeline from the Nederland terminal to Motiva
Enterprise LLC’s Port Arthur, TX refinery and three related crude oil storage tanks at a total cost
of $94 million.
Chemicals:
• Completed the sale of the common stock of its polypropylene business in March 2010 and
received cash proceeds of $348 million from this divestment.
Coke:
• In January 2011, acquired Harold Keene Coal Co., Inc., based in Honaker, VA, for approximately
$40 million including working capital. Coal reserve estimates for this acquisition total
approximately 21 million tons, and the assets acquired include two active underground mines and
one active surface and high wall mine currently producing 250,000-300,000 tons of coal annually;
• Commenced a project to expand its coal production by approximately 500,000 tons per year to an
annualized rate of approximately two million tons by late 2012 (including production from its
Harold Keene Coal Co., Inc. acquisition). Capital outlays for this project are expected to total
approximately $25 million;
• Began construction in 2010 of a 550 thousand tons-per-year cokemaking facility and associated
cogeneration power plant capable of providing 44 megawatts of power in Middletown, OH, which
is expected to cost approximately $415 million and be completed in the second half of 2011;
• Modified its postretirement medical benefits for most participants by phasing down or eliminating
such benefits effective January 1, 2011;
• Commenced operations in the fourth quarter of 2009 at a $320 million, 650 thousand
tons-per-year cokemaking facility in Granite City, IL owned by SunCoke Energy; and
• Commenced operations in 2008 at a $269 million, second 550 thousand tons-per-year cokemaking
facility and associated cogeneration power plant located at the Company’s Haverhill, OH site.
Sunoco also:
• Entered into an agreement in 2010 to outsource some back office processes, including information
technology, finance and accounting transaction processing, and indirect procurement. This reflects
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