Sunoco 2013 Annual Report Download - page 46

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Our management believes gross profit, which is equal to sales and other operating revenue less cost of products sold and
operating expenses, is a key measure of financial performance for the Crude Oil Acquisition and Marketing segment. Although
we implement risk management activities to provide general stability in our margins, these margins are not fixed and will vary
from period to period.
The following table presents the operating results and key operating measures for our Crude Oil Acquisition and
Marketing segment for the periods presented:
Successor Predecessor
Three Months
Ended
December 31,
2013
Nine Months
Ended
September 30,
2013
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 (2)
(in millions, except for barrel amounts) (in millions, except for barrel amounts)
Sales and other operating revenue
Unaffiliated customers $ 3,620 $ 10,502 $ 2,747 $ 8,951 $ 3,135 $ 6,780
Affiliates 346 1,048 139 307 — 247
Intersegment revenue 2 — 2 — — 1
Total sales and other operating revenue $ 3,968 $ 11,550 $ 2,888 $ 9,258 $ 3,135 $ 7,028
Depreciation and amortization expense $ 13 $ 36 $ 11 $ 16 $ 5 $ 5
Impairment charge and related matters (3) $ — $ — $ — $ 8 $ — $ —
Adjusted EBITDA $ 33 $ 200 $ 81 $ 158 $ 68 $ 80
Crude oil purchases (thousands of bpd) 734 754 669 674 690 654
Gross profit per barrel purchased (cents) (4) 55.9 103.0 138.0 92.8 111.8 49.8
Average crude oil price (per barrel) $ 97.50 $ 98.17 $ 88.20 $ 96.20 $ 94.02 $ 95.52
(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 our financial position, results of operations or cash flows.
(2) Includes results from the crude oil acquisition and marketing business acquired from Texon in August 2011 from the acquisition date.
(3) In the first quarter 2012, we recognized a non-cash impairment charge related to a cancelled software project.
(4) 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 Crude Oil Acquisition and Marketing segment for the fourth quarter 2013 decreased $48
million compared to the period from October 5, 2012 to December 31, 2012. The decrease in Adjusted EBITDA was primarily
due to lower crude oil margins ($56 million) driven by crude differentials which have contracted compared to the prior year
period. This impact was partially offset by increased crude oil volumes ($8 million) resulting from the expansion in our crude
oil trucking fleet and higher market demand.
Adjusted EBITDA for the Crude Oil Acquisition and Marketing segment increased $42 million to $200 million for the
nine months ended September 30, 2013, compared to $158 million for the period from January 1, 2012 to October 4, 2012. The
increase in Adjusted EBITDA was driven primarily by expanded crude oil volumes ($20 million) and margins ($21 million).
Increased volumes resulted from the expansion in our crude oil trucking fleet and market related opportunities in West Texas.
Crude oil margins increased over the prior year despite crude differentials which have contracted relative to the first half of
2013.
Adjusted EBITDA for the Crude Oil Acquisition and Marketing segment 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 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.