Sunoco 2015 Annual Report Download - page 59

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Capital Requirements
Our operations are capital intensive, requiring significant investment to maintain, upgrade and enhance existing assets and
to meet environmental and operational regulations. The capital requirements have consisted, and are expected to continue to
consist, primarily of:
• Expansion capital expenditures to acquire and integrate complementary assets to improve operational efficiencies or
reduce costs and to expand existing and construct new facilities, such as projects that increase storage or throughput
volume, and joint projects which complement our existing asset base,
• Maintenance capital expenditures that extend the usefulness of existing assets, such as those required to maintain
equipment reliability, tankage and pipeline integrity and safety, and to address environmental regulations, and
• Acquisitions to acquire and integrate complementary assets to grow the business, to improve operational efficiencies or
reduce costs.
The following table summarizes maintenance and expansion capital expenditures, including amounts paid for acquisitions,
for the years ended December 31, 2015, 2014 and 2013:
Year Ended December 31,
2015 2014 2013
(in millions)
Expansion $ 2,625 $ 2,483 $ 965
Maintenance 84 76 53
Acquisitions 131 448 60
Total $ 2,840 $ 3,007 $ 1,078
Expansion capital expenditures for the years ended December 31, 2015, 2014 and 2013 consisted primarily of projects to:
invest in our crude oil infrastructure by increasing our pipeline capabilities through announced expansion capital and joint
projects; continue to invest in our announced Mariner NGLs projects and Allegheny Access refined products pipeline project;
expand the service capabilities of our crude oil, NGLs and refined products acquisition and marketing activities by increasing
storage capabilities, expanding access to assets and/or locations, and increasing our crude oil trucking fleet; and upgrade the
service capabilities at our bulk marine terminals.
Maintenance capital expenditures for the periods presented primarily included recurring expenditures such as pipeline
integrity costs; pipeline relocations; repair and upgrade of field instrumentation, including measurement devices; repair and
replacement of tank floors and roofs; upgrades of cathodic protection systems; crude trucks and related equipment; and the
upgrade of pump stations.
Acquisitions in 2015 included the purchase of the remaining noncontrolling interest in West Texas Gulf. In 2014,
acquisitions included the purchase of additional ownership interest in West Texas Gulf, the purchase of a crude oil acquisition
and marketing business, the acquisition of a controlling financial interest in a crude oil rail facility, and the purchase of
additional ownership interest in Explorer Pipeline Company. In 2013, acquisitions consisted of the purchase of the Marcus Hook
Industrial Complex from Sunoco.
Our capital expenditures, including any acquisitions, are expected to be funded from cash provided by operations,
borrowings under our credit facility, and with proceeds from debt and equity offerings, as necessary.