Sunoco 2012 Annual Report Download - page 54

and marketing activities ($12 million) and improved results from the Partnership’s Nederland Terminal
($5 million). Partially offsetting these increases were reduced volumes at the Partnership’s refinery terminals
related to the idling of Sunoco’s Marcus Hook refinery in the fourth quarter 2011 ($4 million) and increased
selling, general and administrative expenses ($5 million).
Adjusted EBITDA for the Terminal Facilities segment increased $22 million to $149 million for the year
ended December 31, 2011. These improvements compared to 2010 were due primarily to expansion of our
refined products acquisition and marketing activities ($24 million), which include butane blending services,
contributions from the acquisitions of the Eagle Point tank farm and East Boston, Massachusetts refined products
terminal ($4 million) and higher volumes and fees from our Nederland Terminal ($4 million). Partially offsetting
these improvements was an $11 million charge for regulatory obligations which would have been incurred if
Sunoco’s Philadelphia refinery were shut-down.
Refined Products Pipelines
Our Refined Products Pipelines segment consists of refined products pipelines, including a two-thirds
undivided interest in the Harbor pipeline and joint venture interests in four refined products pipelines in selected
areas of the United States. The Refined Products Pipeline System earns revenues by transporting refined products
from refineries in the northeast, midwest and southwest United States to markets in six states. Rates for
shipments on these pipelines are regulated by the FERC and the Pennsylvania Public Utility Commission (“PA
PUC”).
The following table presents the operating results and key operating measures for our Refined Products
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
(in millions, except
for barrel amounts) (in millions, except for barrel amounts)
Sales and other operating revenue
Unaffiliated customers ............. $ 24 $ 58 $ 20 $ 45 $ 65 $ 44
Affiliates ........................ 11 36 16 48 64 76
Intersegment revenue .............. — 2 1 — 1 —
Total sales and other operating
revenue ..................... $ 35 $ 96 $ 37 $ 93 $130 $120
Depreciation and amortization expense . . $ 7 $ 13 $ 4 $ 13 $ 17 $ 15
Impairment charge and related matters . . . $ — $ 1 $ — $ — $ — $ —
Adjusted EBITDA .................. $ 14 $ 57 $ 17 $ 52 $ 69 $ 77
Pipeline throughput (thousands of
bpd)(2)(3) ......................... 601 565 599 496 522 468
Pipeline revenue per barrel (cents)(3) .... 63.0 62.2 67.5 68.6 68.3 70.0
(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 May 2011, we acquired a controlling financial interest in Inland and we accounted for the entity as a
consolidated subsidiary from the date of acquisition. Average volumes for the year ended December 31,
2011 of 88 thousand bpd have been included in the consolidated total. From the date of acquisition, this
pipeline had actual throughput of 140 thousand bpd for the year ended December 31, 2011.
(3) 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 decreased $3 million
compared to the prior year period due primarily to a shift to shorter pipeline movements at lower average tariffs
52