Sunoco 2011 Annual Report Download - page 4
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Sunoco’s Board of Directors and senior management, in consultation with independent financial and legal
advisors, considered a wide range of strategic alternatives intended to deliver enhanced shareholder value. As a
result of the planned initiatives, the Company believes it will be financially stronger and have more flexibility
without the burden of significant legacy liabilities. Additionally, shareholders will be more levered to the
Company’s businesses, resulting in higher earnings and cash flows per share and higher dividends.
Management Changes
Given Sunoco’s evolution as a company—its focus on logistics and retail, and exit from manufacturing—I
recommended to the Board as part of the strategic review that now is the right time for me to step aside. I
recommended to them that I was no longer the right person to lead Sunoco as it progressed to the next phase of
its future.
Brian MacDonald, currently Senior Vice President and Chief Financial Officer, will become President,
Chief Executive Officer and a Director of Sunoco, effective March 1, 2012. Brian has played a key role in
Sunoco’s transformation, and I have full confidence that the Company will be in good hands under Brian’s
leadership. To ensure a seamless transition, I will remain Chairman of Sunoco and Sunoco Logistics Partners
L.P. until the Sunoco annual meeting of shareholders in May 2012. At that time, Brian will become Chairman of
both companies.
Mike Hennigan, currently President and Chief Operating Officer of Sunoco Logistics Partners L.P., will
become President and Chief Executive Officer of Sunoco Logistics Partners L.P., effective March 1, 2012.
Safe, Reliable and Environmentally Sound Operations
Sunoco’s future financial success must be built upon a foundation of safe, reliable and environmentally
sound operations. Delivering excellence in health, safety and environmental performance continues to be a core
value and top priority.
We continue to review our programs to improve our performance. We work hard to be an industry leader in
keeping our people and communities safe. To achieve this goal, we welcome input on safe operations from
employees, industry groups, government agencies, and other stakeholders. These groups are our partners in
creating a culture of safety throughout our organization.
Strive for Excellence and Efficiency
We made good progress in 2011 and early 2012. Our balance sheet is in a position that enables us to pursue
attractive opportunities in our growth businesses as well as ride out the challenging and volatile refining
environment as we complete our exit from this business. We continue to focus on identifying areas in which we
have room for improvement and to fully implement the improvements we have already identified. Above all else,
we must ensure safety in our facilities, protect the environment, and deliver the quality products, services and
experience that customers expect from Sunoco.
Lynn L. Elsenhans
Chairman, Chief Executive Officer and President