Sunoco 2015 Annual Report Download - page 56

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54
Refined Products
Our Refined Products segment provides transportation and terminalling services through the use of refined products
pipelines and approximately 40 active refined products marketing terminals. The segment includes our controlling financial
interest in Inland Corporation ("Inland"), as well as equity ownership interest in four refined products pipelines. The Refined
Products segment utilizes our integrated pipeline and terminalling assets, as well as acquisition and marketing activities, to
service refined products markets in the northeast and midwest United States. Revenues generated from tariffs and the associated
fees paid by shippers utilizing our pipeline assets, fees for terminalling services provided, and the marketing of refined products.
Rates for shipments on the refined products pipelines are regulated by the FERC and other associated state entities.
The following table presents the operating results and key operating measures for our Refined Products segment for the
periods presented:
Year Ended December 31,
2015 2014 2013
(in millions, except for barrel amounts)
Sales and other operating revenue
Unaffiliated customers $ 247 $ 160 $ 154
Affiliates 118 70 85
Total sales and other operating revenue $ 365 $ 230 $ 239
Depreciation and amortization expense $ 90 $ 75 $ 68
Impairment charge and other matters (1) $ 2 $ — $ —
Adjusted EBITDA $ 164 $ 99 $ 97
Pipeline throughput (thousands of bpd) (2) 492 456 492
Terminal throughput (thousands of bpd) 534 497 525
Gross profit (3) $ 123 $ 65 $ 83
(1) Represents non-cash inventory adjustments related to changes in commodity prices.
(2) Excludes amounts attributable to equity ownership interests which are not consolidated.
(3) Represents total segment sales and other operating revenue less costs of products sold and operating expenses.
Adjusted EBITDA for the Refined Products segment increased $65 million to $164 million for the year ended December
31, 2015 compared to the prior year period. The increase in Adjusted EBITDA was due primarily to higher results from our
refined products pipelines ($33 million) driven largely by the commencement of operations on our Allegheny Access project in
2015. Terminalling activities at our refined products marketing terminals, as well as our Eagle Point and Marcus Hook facilities,
increased compared to the prior year period ($15 million). Higher contributions from our joint venture interests ($10 million) and
refined products acquisition and marketing activities ($6 million) also contributed to the increase.
Adjusted EBITDA for the Refined Products segment increased $2 million to $99 million for the year ended December 31,
2014 compared to the prior year period. The increase in Adjusted EBITDA was primarily attributable to higher contributions
from our joint venture interests ($8 million) and lower selling, general and administrative expenses ($10 million). These positive
impacts were largely offset by lower results from our refined products pipelines ($13 million) largely driven by reduced
throughput volumes and decreased contributions from our refined products terminalling activities ($4 million).