Sunoco 2013 Annual Report Download - page 48

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Adjusted EBITDA for the Terminal Facilities segment increased $60 million to $173 million for the period from
January 1, 2012 to October 4, 2012, as compared to $113 million for the nine months ended September 30, 2011. Results for
2012 included non-recurring gains related to the reversal of certain regulatory obligations that were recorded in 2011 ($10
million) and a contract settlement associated with our sale of the Big Sandy terminal and pipeline assets ($6 million). Excluding
these items, Adjusted EBITDA increased $44 million due to contributions from the 2011 acquisitions of the Eagle Point tank
farm and a refined products terminal in East Boston, Massachusetts ($17 million), operating results from our refined products
acquisition and marketing activities ($12 million) and improved results from our Nederland Terminal ($5 million). Partially
offsetting these increases were reduced volumes at our 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).
Refined Products Pipelines
Our Refined Products Pipelines segment consists of refined products and NGL 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 primarily earns revenues by transporting refined products from refineries
in the northeast, midwest and southwest United States to markets in six states and Canada. 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
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
(in millions, except for barrel amounts) (in millions, except for barrel amounts)
Sales and other operating revenue
Unaffiliated customers $ 27 $ 68 $ 24 $ 58 $ 20 $ 45
Affiliates 7 26 11 36 16 48
Intersegment revenue — 2 — 2 1 —
Total sales and other operating revenue $ 34 $ 96 $ 35 $ 96 $ 37 $ 93
Depreciation and amortization expense $ 7 $ 18 $ 7 $ 13 $ 4 $ 13
Impairment charge and related matters $ — $ — $ — $ 1 $ — $ —
Adjusted EBITDA $ 13 $ 43 $ 14 $ 57 $ 17 $ 52
Pipeline throughput (thousands of bpd) (2) (3) 586 566 601 565 599 496
Pipeline revenue per barrel (cents) (3) 63.9 62.0 63.0 62.2 67.5 68.6
(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) 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 Refined Products Pipelines segment for the fourth quarter 2013 decreased $1 million compared
to the period from October 5, 2012 to December 31, 2012. The decrease was driven by lower pipeline revenue on reduced
throughput volumes.
Adjusted EBITDA for the Refined Products Pipelines segment decreased $14 million to $43 million for the nine months
ended September 30, 2013, compared to $57 million for the period from January 1, 2012 to October 4, 2012. Results for 2012
included a $5 million non-recurring gain recognized in connection with the sale of the Big Sandy terminal and pipeline assets
and a $6 million non-recurring gain recognized by one of our joint-venture interests. Excluding these items, Adjusted EBITDA
decreased $3 million due primarily to higher selling, general and administrative expenses ($7 million), lower pipeline operating
gains ($3 million) and higher integrity management costs ($2 million). These factors were partially offset by decreased
environmental remediation expenses ($3 million) and higher contributions from our joint-venture interests ($6 million).
Adjusted EBITDA for the Refined Products Pipelines segment 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