Sunoco 2012 Annual Report Download - page 50

transportation services to deliver crude oil and other feedstocks to refineries within those regions. Rates for
shipments on these pipelines are regulated by the Federal Energy Commission (“FERC”), Oklahoma Corporation
Commission (“OCC”) and the Railroad Commission of Texas (“Texas R.R.C.”).
The following table presents the operating results and key operating measures for our Crude Oil Pipelines
segment for the periods presented:
Successor Predecessor
Period from Acquisition
(October 5, 2012) to
December 31, 2012(1)
Period from
January 1, 2012 to
October 4, 2012(1)
Three Months
Ended
December 31,
2011
Nine Months
Ended
September 30,
2011
Total
2011
Year Ended
December 31,
2010(2)
(in millions, except
for barrel amounts) (in millions, except for barrel amounts)
Sales and other operating revenue
Unaffiliated customers ............ $ 70 $ 187 $ 55 $ 141 $ 196 $ 117
Affiliates ....................... — — — 6 6 25
Intersegment revenue ............. 40 101 31 86 117 79
Total sales and other operating
revenue .................... $ 110 $ 288 $ 86 $ 233 $ 319 $ 221
Depreciation and amortization
expense ........................ $ 22 $ 19 $ 6 $ 19 $ 25 $ 21
Adjusted EBITDA ................. $ 72 $ 203 $ 58 $ 149 $ 207 $ 156
Pipeline throughput (thousands of
barrels per day (“bpd”))(3)(4) ........ 1,584 1,546 1,577 1,591 1,587 1,183
Pipeline revenue per barrel (cents)(4) . . . 75.6 68.0 58.9 53.7 55.0 50.7
(1) The effective date of the acquisition for accounting and reporting purposes was deemed to be October 1,
2012. The activity from October 1, 2012 through October 4, 2012 was not material in relation to the
Partnership’s financial position, results of operations or cash flows.
(2) In the third quarter 2011, we realigned our reporting segments to separately report the results of the Crude
Oil Pipelines and Crude Oil Acquisition and Marketing segments, which had previously been combined. For
comparative purposes, all prior period amounts have been recast to reflect the new segment reporting.
(3) In July and August 2010, we acquired controlling financial interests in Mid-Valley and West Texas Gulf,
respectively, and we accounted for the entities as consolidated subsidiaries from the dates of their respective
acquisitions. Average volumes for the year ended December 31, 2010 of 278 thousand bpd have been
included in the consolidated total. From the dates of acquisition, these pipelines had actual throughput of
696 thousand bpd for the year ended December 31, 2010.
(4) Excludes amounts attributable to equity ownership interests in corporate joint ventures which are not
consolidated.
Adjusted EBITDA for the period from October 5, 2012 to December 31, 2012 increased $14 million
compared to the prior year period due primarily to higher pipeline tariffs which were the result of organic
projects placed into service during 2012 and an improved mix of higher tariff movements driven by strong
demand for West Texas crude oil ($24 million). These improvements were partially offset by lower pipeline
operating gains ($3 million), higher maintenance and integrity management costs ($3 million) and increased
selling, general and administrative expenses ($3 million) compared to the prior year period.
Adjusted EBITDA for the Crude Oil Pipelines segment increased $54 million to $203 million for the period
from January 1, 2012 to October 4, 2012, as compared to $149 million for the nine months ended September 30,
2011. The increase in Adjusted EBITDA was driven primarily by higher pipeline fees which benefited from tariff
increases relative to the prior year period, organic growth projects and an improved mix of pipeline movements
which benefited from the demand for West Texas crude oil ($61 million). Partially offsetting these improvements
were increased selling, general and administrative expenses ($7 million) and overall volume reductions
($6 million).
Adjusted EBITDA for the Crude Oil Pipelines segment increased $51 million to $207 million for the year
ended December 31, 2011 compared to the prior year. The increase in Adjusted EBITDA was driven primarily
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