Sunoco 2013 Annual Report Download - page 5

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PART I
As used in this document, unless the context otherwise indicates, the terms "we," "us," and "our" means Sunoco Logistics
Partners L.P. ("SXL" or the "Partnership"), one or more of our operating subsidiaries, or all of them as a whole.
ITEM 1. BUSINESS
(a) General Development of Business
We are a publicly traded Delaware limited partnership that owns and operates a logistics business, consisting of a
geographically diverse portfolio of complementary pipeline, terminalling, and acquisition and marketing assets which are used
to facilitate the purchase and sale of crude oil, refined products, and natural gas liquids ("NGLs"). The principal executive
offices of Sunoco Partners LLC, our general partner, are located at 1818 Market Street, Suite 1500, Philadelphia, Pennsylvania
19103 (telephone [phone]). Our website address is www.sunocologistics.com.
On October 5, 2012, Sunoco, Inc. ("Sunoco") was acquired by Energy Transfer Partners, L.P. ("ETP"). Prior to this
transaction, Sunoco (through its wholly-owned subsidiary Sunoco Partners LLC) served as our general partner and owned a
two percent general partner interest, all of our incentive distribution rights and a 32.4 percent limited partner interest in the
Partnership. In connection with the acquisition, Sunoco's interests in the general partner and limited partnership were
contributed to ETP, resulting in a change in control of our general partner. As a result, we became a consolidated subsidiary of
ETP on the acquisition date.
(b) Financial Information about Segments
See Part II, Item 8. "Financial Statements and Supplementary Data."
(c) Narrative Description of Business
We are a Delaware limited partnership which is principally engaged in the transport, terminalling and storage of crude oil,
refined products and NGLs. In addition to logistics services, we also own acquisition and marketing assets which are used to
facilitate the purchase and sale of crude oil, refined products and NGLs. Our portfolio of geographically diverse assets earns
revenues in more than 30 states located throughout the United States. Our reporting segments are as follows:
• The Crude Oil Pipelines transport crude oil principally in Oklahoma and Texas. The segment contains approximately
4,900 miles of crude oil trunk pipelines for high-volume, long-distance transportation, and approximately 500 miles of
crude oil gathering lines that supply the trunk pipelines. The segment includes controlling financial interests in the
West Texas Gulf Pipe Line Company ("West Texas Gulf") and Mid-Valley Pipeline Company ("Mid-Valley").
• The Crude Oil Acquisition and Marketing business gathers, purchases, markets and sells crude oil principally in the
mid-continent United States. The segment utilizes our proprietary fleet of approximately 300 crude oil transport trucks
and approximately 130 crude oil truck unloading facilities, as well as third-party assets.
• The Terminal Facilities operate with an aggregate storage capacity of approximately 46 million barrels. The segment
includes the 22 million barrel Nederland, Texas crude oil terminal; the 5 million barrel Eagle Point, New Jersey
refined products and crude oil terminal; the 5 million barrel Marcus Hook, Pennsylvania refined products and NGL
facility (the "Marcus Hook Facility"); 39 active refined products marketing terminals located in the northeast, midwest
and southwest United States; and several refinery terminals located in the northeast United States.
• The Refined Products Pipelines consist of approximately 2,500 miles of refined products pipelines, and joint venture
interests in four refined products pipelines in the northwest and midwest United States. This segment includes a
controlling financial interest in Inland Corporation ("Inland").
In 2013, we continued to expand our operations into pipeline transportation, storage and acquisition and marketing of
NGLs in the northeastern United States with the successful launch of our pipeline project to deliver ethane from the Marcellus
Shale Basin to Ontario ("Project Mariner West") and the acquisition of the Marcus Hook facility. Operational results from
these activities have been included in our Refined Products Pipelines and Terminal Facilities segments, respectively. While
these activities have not had a material impact on our operational results to date, we will continue to expand our NGL platform
through previously announced growth projects that are expected to commence operations throughout 2014 and 2015.