Sunoco 2013 Annual Report Download - page 41

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Granite Wash Extension
In the third quarter 2013, we completed a successful Open Season for our Granite Wash Extension pipeline. The pipeline
is expected to provide 70,000 barrels per day of crude oil takeaway capacity for the growing production from the Granite Wash
Shale in the northeastern Texas panhandle and portions of western Oklahoma. We will construct approximately 200 miles of
new pipeline, originating in Wheeler County, Texas and terminating in Ringgold, Texas, and new pump stations and truck
unloading facilities. At Ringgold, the new pipeline will connect with our existing pipelines, which have the ability to transport
to Corsicana, Texas. From Corsicana, access to multiple SXL and third-party pipelines will provide producers the ability to
reach various markets and refineries on the Gulf Coast and in the MidContinent. The pipeline is expected to be operational in
the third quarter 2014.
Permian Express 2
In the fourth quarter 2013, we completed a successful Open Season for our Permian Express 2 pipeline. The Permian
Express 2 pipeline project involves the construction of approximately 300 to 400 miles of new crude oil pipelines, with origins
in multiple locations in West Texas: Midland, Garden City and Colorado City. With an expected initial capacity of
approximately 200,000 barrels per day, Permian Express 2 is expected to deliver to multiple refiners and markets beginning in
the second quarter 2015.
Mariner East
In September 2012, we announced a successful Open Season for our project to deliver NGLs produced in the Marcellus
Shale Basin to the Marcus Hook Facility ("Project Mariner East 1"). This pipeline and marine terminal project will allow us to
transport NGLs, primarily utilizing modified existing pipelines, from western Pennsylvania to the east coast where
approximately 2 million barrels of NGLs can be stored in our underground caverns and loaded on waterborne vessels for third-
party transport to other United States ports or exported to international markets. The project is expected to support the
transportation of approximately 70,000 barrels per day. The transportation of propane is expected to commence in the second
half of 2014, with the transportation of ethane expected to commence in mid-2015. As a result of substantial interest expressed
by producers, marketers and industrial consumers for long-term transportation of Marcellus and Utica Shale NGLs to the
Marcus Hook Facility, we launched an Open Season for Project Mariner East 2 during the fourth quarter 2013.
Mariner South
In May 2013, we announced that sufficient binding commitments had been received to move forward on our joint project
with Lone Star NGL LLC ("Lone Star"). This Mariner South Pipeline will transport export-grade propane and butane from
Lone Star's Mont Belvieu, Texas storage and fractionation complex to our marine terminal in Nederland, Texas. The pipeline is
expected to have an initial capacity of approximately 200,000 barrels per day and can be scaled to support higher volumes as
needed. In addition to export-grade propane and butane, the pipeline will be available to transport other NGLs and petroleum
products depending on shipper interest. The pipeline is expected to be operational in the first quarter 2015.
Conservative Capital Structure
Our goal is to maintain substantial liquidity and a conservative capital structure. In 2013, Sunoco Logistics Partners
Operations L.P. (the "Operating Partnership"), our wholly-owned subsidiary, increased our borrowing capacity by entering into
a five-year $1.50 billion unsecured credit facility (the "$1.50 billion Credit Facility"). The $1.50 billion Credit Facility contains
an "accordion" feature, under which the total aggregate commitment may be extended to $2.25 billion under certain conditions.
We will maintain our conservative capital structure by utilizing a combination of our operating cash flows and debt and equity
issuances to finance our future growth.
Cash Distribution Increases
As a result of our continued growth, our general partner increased our cash distributions to limited partners in all quarters
in the three years ended December 31, 2013. For the quarter ended December 31, 2013, the distribution increased to $0.6625
per common unit ($2.65 annualized). The distribution for the fourth quarter 2013 was paid on February 14, 2014.