Sunoco 2013 Annual Report Download - page 6

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Our primary business strategies focus on generating stable cash flows, increasing pipeline and terminal throughput,
utilizing our crude oil gathering assets to maximize value for producers, pursuing economically accretive organic growth
opportunities and improving operating efficiencies. We believe that the effective execution of these strategies will result in
continued increases in distributions to our unitholders.
We are subject to competition from third parties in all of our operations. In addition, our businesses make use of a
portfolio of complementary crude oil and refined product pipeline, terminalling, and acquisition and marketing assets. While
this integration creates opportunities and synergies within our operations, assets are sometimes repurposed among our business
lines to maximize their utility and profitability. We will continue to utilize our assets in a manner that favors our consolidated
results.
Crude Oil Pipelines
Crude Oil Pipelines
The crude oil pipelines consist of approximately 5,400 miles of crude oil trunk and gathering pipelines in the southwest
and midwest United States. These pipelines include controlling financial interests in the Mid-Valley and West Texas Gulf
pipelines. Our pipelines access several trading hubs, including the largest trading hub for crude oil in the United States located
in Cushing, Oklahoma ("Cushing"), as well as other trading hubs located in Midland, Colorado City and Longview, Texas. Our
crude oil pipelines also deliver to and connect with other pipelines that deliver crude oil to a number of refineries.
The table below summarizes the average daily number of barrels of crude oil and other feedstocks transported on our
crude oil pipelines in each of the years presented:
Year Ended December 31,
2013 2012 2011
Pipeline throughput (thousands of barrels per day ("bpd")) 1,866 1,556 1,587
Southwest United States
Our pipelines in the southwest United States include approximately 2,950 miles of crude oil trunk pipelines and
approximately 300 miles of crude oil gathering pipelines in Texas. Revenues are generated from tariffs paid by shippers
utilizing our transportation services. These tariffs are filed with the Railroad Commission of Texas ("Texas R.R.C.") and the
Federal Energy Regulatory Commission ("FERC").
We also own and operate a crude oil pipeline and gathering system in Oklahoma. This system contains approximately
850 miles of crude oil trunk pipelines and approximately 200 miles of crude oil gathering pipelines. We have the ability to
deliver substantially all of the crude oil gathered on our Oklahoma system to Cushing. Revenues are generated on our
Oklahoma system from tariffs paid by shippers utilizing our transportation services. We file these tariffs with the Oklahoma
Corporation Commission ("OCC") and the FERC. We are one of the largest purchasers of crude oil from producers in the state,
and our crude oil acquisition and marketing business is the primary shipper on our Oklahoma system.
In the third quarter 2013, we entered into an agreement to form SunVit Pipeline LLC ("SunVit"), a joint venture with
Vitol, Inc. ("Vitol"), in which each party will maintain a 50 percent ownership interest. SunVit will construct and own a crude
oil pipeline, which will originate in Midland, Texas and run to Garden City, Texas. The new pipeline will connect into our
Permian Express 2 pipeline project and will provide additional takeaway capacity from the Permian Basin. SunVit is expected
to commence operations in 2015.
Midwest United States
We have a controlling financial interest in the Mid-Valley pipeline system which owns approximately 1,000 miles of
crude oil pipelines that originate in Longview, Texas and pass through Louisiana, Arkansas, Mississippi, Tennessee, Kentucky
and Ohio, and terminate in Samaria, Michigan. This pipeline provides crude oil to a number of refineries, primarily in the
midwest United States.
In addition, we own approximately 100 miles of crude oil pipeline that runs from Marysville, Michigan to Toledo, Ohio,
and a truck injection point for local production at Marysville. This pipeline receives crude oil from the Enbridge pipeline
system for delivery to refineries located in Toledo, Ohio and to Marathon's Samaria, Michigan tank farm, which supplies its
refinery in Detroit, Michigan.
Revenues are generated from tariffs paid by shippers utilizing our transportation services. These tariffs are filed with the
FERC.