Sunoco 2012 Annual Report Download - page 102

financial position, results of operations or cash flows as the absolute price levels for crude oil normally do not
bear a relationship to gross profit. In addition, the customer is subject to netting arrangements which allow the
Partnership to offset payable activities and serve to mitigate credit exposure.
18. Business Segment Information
The Partnership operates in 30 states throughout the United States and four principal business segments:
Crude Oil Pipelines, Crude Oil Acquisition and Marketing, Terminal Facilities and Refined Products Pipelines.
• The Crude Oil Pipelines segment transports crude oil principally in Oklahoma and Texas. The segment
consists of approximately 4,900 miles of crude oil trunk pipelines and approximately 500 miles of
crude oil gathering lines that supply the trunk pipelines. The pipelines receive fees for transporting
crude oil to and from trading hubs, other pipelines and refineries in the southwest and midwest United
States.
• The Crude Oil Acquisition and Marketing segment gathers, purchases, markets and sells crude oil
principally in the mid-continent United States. The segment consists of approximately 200 crude oil
transport trucks and approximately 120 crude oil truck unloading facilities.
• The Terminal Facilities segment consists of 41 active refined products terminals with an aggregate
storage capacity of 8 million barrels, which provide storage, terminalling, blending and other ancillary
services and are primarily sourced by the Refined Products Pipelines; the Nederland Terminal, a
22 million barrel marine crude oil terminal on the Texas Gulf Coast; a 2 million barrel refined product
terminal that previously served Sunoco’s Marcus Hook refinery near Philadelphia, Pennsylvania;
one inland and two marine crude oil terminals with a combined capacity of 3 million barrels, and
related pipelines, which serve the Philadelphia refinery; the Eagle Point Terminal, a 5 million barrel
refined products and crude oil terminal and dock facility; and a 1 million barrel liquefied petroleum gas
terminal near Detroit, Michigan. The terminals receive fees for the terminalling, blending and other
services provided.
• The Refined Products Pipelines segment consists of approximately 2,500 miles of refined products
pipelines and joint venture interests in four refined products pipelines in selected areas of the United
States. The pipelines receive fees for transporting refined products from refineries to markets in the
northeast, midwest and southwest United States.
During the fourth quarter of 2012, the Partnership changed its definition of Adjusted EBITDA and
Distributable Cash Flow to conform to the presentation utilized by its general partner. The Partnership also
changed its measure of segment profit from operating income to the revised presentation of Adjusted EBITDA.
This change did not impact the Partnership’s reportable segments. Prior period amounts have been recast to
conform to current presentation.
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