Sunoco 2012 Annual Report Download - page 52

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(4) In the first quarter 2012, the Partnership recognized a non-cash impairment charge related to a cancelled
software project.
(5) Represents total segment sales and other operating revenue minus cost of products sold and operating
expenses, divided by crude oil purchases.
Adjusted EBITDA for the period from October 5, 2012 to December 31, 2012 increased $13 million
compared to the prior year period due primarily to expanded crude oil margins which were the result of
expansion in our crude oil trucking fleet, market related opportunities in West Texas and contributions from the
assets acquired from Texon in the third quarter of 2011 ($23 million). These improvements were partially offset
by overall volume reductions ($2 million) and higher selling, general and administrative expenses ($2 million).
Adjusted EBITDA for the Crude Oil Acquisition and Marketing segment increased $78 million to
$158 million for the period from January 1, 2012 to October 4, 2012, as compared to $80 million for the nine
months ended September 30, 2011. The increase in Adjusted EBITDA was driven primarily by expanded crude
oil volumes and margins which were the result of expansion in our crude oil trucking fleet and market related
opportunities in West Texas. Operating results were further improved by increased volumes and margins from
the crude oil acquisition and marketing assets acquired from Texon in the third quarter 2011.
Adjusted EBITDA for the Crude Oil Acquisition and Marketing segment in 2011 increased $109 million to
$148 million compared to the prior year period. The increase in Adjusted EBITDA was driven primarily by
expanded crude oil margins ($102 million) and increased volumes ($2 million). Operating results for 2011 were
improved by expansion of our crude oil trucking fleet during the year and increased production in the Eagle Ford
Shale and West Texas regions, which had limited takeaway capacity and served to increase the pricing
differential between the price of domestic and foreign crude oil. Further contributing to these improvements were
increased volumes and margins from the crude oil acquisition and marketing assets acquired from Texon, which
provided us with exposure into the Bakken shale and gulf coast of Texas and expanded our market share in areas
in which we previously operated. These improvements were partially offset by reduced storage activity during
2011 resulting from a narrowing of the contango market structure compared to 2010.
Terminal Facilities
Our Terminal Facilities segment consists primarily of crude oil and refined products terminals and a refined
products acquisition and marketing business. The Terminal Facilities segment earns revenue by providing
storage, terminalling, blending and other ancillary services to our customers, as well as through the sale of
refined products.
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