Sunoco 2012 Annual Report Download - page 5

Download and view the complete annual report

Please find page 5 of the 2012 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 185

  • 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
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185

PART I
As used in this document, unless the context otherwise indicates, the terms “we,” “us,” and “our” means
Sunoco Logistics Partners L.P. (the “Partnership”), one or more of our operating subsidiaries, or all of them as a
whole.
ITEM 1. BUSINESS
(a) General Development of Business
We are a publicly traded Delaware limited partnership that owns and operates a logistics business,
consisting of a geographically diverse portfolio of complementary pipeline, terminalling, and acquisition and
marketing assets which are used to facilitate the purchase and sale of crude oil and refined petroleum products.
The principal executive offices of Sunoco Partners LLC, our general partner, are located at 1818 Market Street,
Suite 1500, Philadelphia, Pennsylvania 19103 (telephone (866) 248-4344). Our website address is
www.sunocologistics.com.
On October 5, 2012, Sunoco, Inc. (“Sunoco”) was acquired by Energy Transfer Partners, L.P. (“ETP”).
Prior to this transaction, Sunoco (through its wholly-owned subsidiary Sunoco Partners LLC) served as the
Partnership’s general partner and owned a two percent general partner interest, all of the Partnership’s incentive
distribution rights and a 32.4 percent limited partner interest in the Partnership. In connection with the
acquisition, Sunoco’s interests in the general partner and limited partnership were contributed to ETP, resulting
in a change of control of the Partnership’s general partner. As a result, the Partnership became a consolidated
subsidiary of ETP on the acquisition date.
(b) Financial Information about Segments
See Part II, Item 8. “Financial Statements and Supplementary Data.”
(c) Narrative Description of Business
We are a Delaware limited partnership which is principally engaged in the transport, terminalling and
storage of crude oil and refined petroleum products. In addition to logistics services, we also own acquisition and
marketing assets which are used to facilitate the purchase and sale of crude oil and refined products. Our
portfolio of geographically diverse assets earns revenues in 30 states located throughout the United States. Our
reporting segments are as follows:
• The Crude Oil Pipelines transport 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 Crude Oil Acquisition and Marketing business gathers, purchases, markets and sells crude oil
principally in the mid-continent United States. The segment utilizes our fleet of approximately
200 crude oil transport trucks, approximately 120 crude oil truck unloading facilities and third-party
assets.
• The Terminal Facilities consist of an aggregate crude oil and refined petroleum products storage
capacity of approximately 40 million barrels, including the 22 million barrel Nederland, Texas crude
oil terminal; the 5 million barrel Eagle Point, New Jersey refined petroleum products and crude oil
terminal; approximately 40 active refined petroleum products marketing terminals located in the
northeast, midwest and southwest United States; and several refinery terminals located in the northeast
United States.
• The Refined Products Pipelines consist 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.
3