Sunoco Logistics Partners L.P. (NYSE: SXL) (the "Partnership") today
announced net income attributable to partners for the nine months ended
September 30, 2016 was $501 million ($0.68 per limited partner unit,
diluted), compared to $368 million ($0.66 per limited partner unit,
diluted) for the prior year period. Adjusted EBITDA for the nine months
ended September 30, 2016 was $906 million, compared to $836 million for
the prior year period. Net income attributable to partners for the three
months ended September 30, 2016 was $154 million ($0.16 per limited
partner unit, diluted), compared to $56 million (a loss of $0.07 per
limited partner unit, diluted) for the prior year period. Adjusted
EBITDA was $312 million for the three months ended September 30, 2016,
compared to $289 million for the prior year period.
Recent highlights include:
-
Distributable Cash Flow of $696 million for the nine months ended
September 30, 2016
-
Distribution increase to $0.51 ($2.04 annualized) for the third
quarter 2016
-
Commenced operations on the Delaware Basin Extension and Permian
Longview and Louisiana Extension pipelines
-
Completed the $760 million acquisition from Vitol of a Permian Basin
crude oil system and remaining interest in SunVit
-
In support of the acquisition, our general partner agreed to reduce
incentive distributions by $60 million over a two-year period
-
Raised $1.2 billion through the issuance of senior notes and a public
equity offering to fund the acquisition and in support of our
expansion capital program
-
Debt-to-Adjusted EBITDA ratio of 3.6x at September 30, 2016,
calculated in accordance with our credit agreement
-
Announced a strategic joint venture with ExxonMobil to form Permian
Express Partners LLC, combining certain key crude oil logistics assets
"Our year-to-date financial results represent an approximate 10 percent
increase in earnings and distributable cash flow, including an
approximate 25 percent increase in blue bar results, despite a very
challenging macro environment," said Michael J. Hennigan, President and
Chief Executive Officer. "Despite the loss of red bar opportunities, our
latest expansion projects in the Permian and Marcellus basins generate
sustainable cash flow that more than offset a reduction in
market-related earnings. We believe we can continue to differentiate
ourselves by growing earnings in any market."
On Sunoco Logistics' recently announced Permian transactions, Hennigan
said, "We are very pleased to announce two strategic initiatives which
will complement our existing infrastructure. We continue to believe that
executing strategic growth in the Permian basin will provide long-term
benefit for our unitholders."
On Sunoco Logistics' stronger Midland platform, Hennigan said, "The
acquisition of the Vitol Midland assets strengthens our crude business
in key production areas. The acquired assets are located in what we
believe are the three best counties in the Midland basin, and adding a 2
million barrel terminal in Midland is very complimentary to our Permian
strategy."
On Permian Express Partners LLC, Hennigan said, "We are very pleased to
enter into a strategic crude oil joint venture with ExxonMobil, and for
ExxonMobil and its affiliates to enter into a preferred provider
agreement with the joint venture. Combining the strategic crude oil
assets of Permian Express Partners LLC, together with our recently
acquired Midland Basin assets, greatly enhances our service
capabilities for the Permian Basin, one of the most prolific shale areas
with incredible growth opportunities."
DETAILS OF THIRD QUARTER RESULTS
Net Income
Net income attributable to Sunoco Logistics Partners L.P. ("net income
attributable to SXL") was $154 and $56 million for the three months
ended September 30, 2016 and 2015, respectively. The increase was
largely attributable to a $140 million positive variance related to
non-cash inventory adjustments resulting from changes in commodity
prices compared to the prior year period. Also contributing to the
increase was improved operating results from our Refined Products and
Natural Gas Liquids segments and higher contributions from our joint
venture interests. These positive factors were partially offset by lower
operating results from our Crude Oil segment driven largely by
acquisition and marketing activities, higher depreciation and
amortization expense related to expansion capital projects placed into
service in 2015 and 2016, and increased net interest expense.
Adjusted EBITDA
During the fourth quarter 2015, we realigned our reporting segments as a
result of the continued investment in our organic growth capital program
which has served to increase the integration that exists between our
assets that service each commodity. This has also resulted in a shift in
Management's strategic decision making process, resource allocation
methodology, and assessment of our financial results. The updated
reporting segments are: Crude Oil, Natural Gas Liquids and Refined
Products. The new segmentation provides our investors with a more
meaningful view of our business that is consistent with that of
Management. For the purpose of comparability, all prior period segment
disclosures have been recast to conform to the current presentation.
Such recasts had no impact on previously reported consolidated net
income or Adjusted EBITDA.
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
|
|
2016
|
|
2015
|
|
Variance
|
|
|
|
|
(in millions)
|
|
Crude Oil
|
|
|
$
|
165
|
|
$
|
179
|
|
$
|
(14
|
)
|
|
Natural Gas Liquids
|
|
|
|
77
|
|
|
66
|
|
|
11
|
|
|
Refined Products
|
|
|
|
70
|
|
|
44
|
|
|
26
|
|
|
Adjusted earnings before interest, taxes, depreciation and
amortization expense ("Adjusted EBITDA") (1)
|
|
|
$
|
312
|
|
$
|
289
|
|
$
|
23
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
For a detailed definition of the components included within Adjusted
EBITDA, see the Non-GAAP Financial Measures table for a
reconciliation to the applicable generally accepted accounting
principles ("GAAP") metric.
|
Crude Oil
Adjusted EBITDA for the Crude Oil segment decreased $14 million to $165
million for the three months ended September 30, 2016, as compared to
$179 million for the prior year period. The decrease was largely
attributable to lower operating results from our crude oil acquisition
and marketing activities, which includes transportation and storage fees
related to our crude oil pipelines and terminal facilities, resulting
from lower crude oil differentials compared to the prior year period.
This decrease was partially offset by improved results from our crude
oil pipelines which benefited from the Delaware Basin Extension and
Permian Longview and Louisiana Extension pipelines that commenced
operations in the third quarter 2016. Higher contributions from joint
venture interests also contributed to the offset.
Natural Gas Liquids
Adjusted EBITDA for the Natural Gas Liquids segment increased $11
million to $77 million for the three months ended September 30, 2016, as
compared to $66 million for the prior year period. The increase was
largely attributable to increased volumes and fees from our Mariner NGLs
projects, which includes our NGLs pipelines and Marcus Hook and
Nederland facilities. These positive factors were partially offset by
lower operating results from our NGLs acquisition and marketing
activities.
Refined Products
Adjusted EBITDA for the Refined Products segment increased $26 million
to $70 million for the three months ended September 30, 2016, as
compared to $44 million for the prior year period. The increase was
primarily attributable to improved operating results from our refined
products pipelines, which benefited primarily from higher volumes on our
Allegheny Access pipeline, and higher results from our refined products
acquisition and marketing activities. Improved contributions from joint
venture interests and our refined products terminals also contributed to
the increase.
FINANCING UPDATE
Net interest expense was $40 million for the three months ended
September 30, 2016, compared to $37 million for the prior year period.
The $3 million increase was due primarily to senior notes issuances in
July 2016 and November 2015 and higher borrowings under our $2.50
billion Credit Facility to finance our expansion capital program. These
increases were partially offset by higher capitalized interest in
connection with continued growth projects.
In July 2016, we issued $550 million of 3.90 percent Senior Notes due in
July 2026 for net proceeds of $544 million in support of our expansion
capital program.
During the third quarter 2016, we issued a total of 23.8 million units
in an overnight equity offering and through our at-the-market equity
offering program for net proceeds of $637 million. In October 2016, an
additional 3.2 million units were issued in connection with an option
related to the overnight offering for net proceeds of $84 million.
In August 2016, ETP, Sunoco Logistics and Phillips 66 announced the
completion of project-level financing of the Bakken Pipeline project.
The $2.5 billion credit facility is anticipated to provide substantially
all of the remaining capital necessary to complete the project.
Additionally, ETP and Sunoco Logistics announced the signing of an
agreement to sell a 36.75 percent interest in the Bakken Pipeline
project for $2 billion in cash to MarEn Bakken Company LLC, an entity
jointly owned by Enbridge Energy Partners, L.P. and Marathon Petroleum
Corporation. The transaction is expected to close in the fourth quarter
2016, subject to certain closing conditions, at which time Sunoco
Logistics will receive $800 million for its interest. Proceeds from the
sale of our interest will be used to pay down debt and help fund our
expansion capital program. Subsequent to closing, our interest in the
Bakken Pipeline project will be 15.3 percent.
CAPITAL EXPENDITURES
|
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|
|
|
|
|
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
(in millions)
|
|
Expansion
|
|
|
$
|
1,392
|
|
$
|
1,467
|
|
Maintenance
|
|
|
|
40
|
|
|
49
|
|
Acquisitions
|
|
|
|
17
|
|
|
131
|
|
Total
|
|
|
$
|
1,449
|
|
$
|
1,647
|
|
|
|
|
|
|
|
Our expansion capital spending for the nine months ended September 30,
2016 included spending to: invest in the previously announced Mariner
East NGLs projects; invest in our crude oil infrastructure by increasing
our pipeline capabilities through announced expansion capital and joint
projects; expand the service capabilities of our acquisition and
marketing activities; and upgrade the service capabilities at our bulk
marine terminals. Acquisitions in 2016 included the purchase of an
additional ownership interest in Explorer Pipeline Company. Acquisitions
in 2015 consisted of the acquisition of the remaining ownership
interests in the West Texas Gulf Pipe Line Company. Our capital
expenditures 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.
We expect expansion capital of approximately $1.0 billion in 2016, which
includes the anticipated proceeds from the sale of a portion of our
interest in the Bakken pipeline in the fourth quarter 2016 and excludes
acquisitions.
In November 2016, we completed an acquisition from Vitol Inc. ("Vitol")
for an integrated crude oil business in West Texas for $760 million plus
working capital. The acquisition provides us with an approximately 2
million barrel crude oil terminal in Midland, Texas, a crude oil
gathering and mainline pipeline system in the Midland Basin, including a
significant acreage dedication from an investment-grade Permian
producer, and crude oil inventories related to Vitol's crude oil
purchasing and marketing business in West Texas. The acquisition also
included the purchase of a 50 percent interest in SunVit Pipeline LLC
("SunVit"), which increased our overall ownership of SunVit to 100
percent. SunVit connects the Midland terminal to our Permian Express 2
pipeline, a key takeaway to bring Permian crude oil to multiple markets.
In connection with the Vitol acquisition, our general partner executed
an amendment to the Partnership's Third Amended and Restated Agreement
of Limited Partnership in September 2016, which provides for a reduction
to the incentive distributions the general partner receives from us. The
reductions will total $60 million over a two-year period, recognized
ratably over eight quarters, beginning with the third quarter 2016 cash
distribution.
INVESTOR CALL
We will host a conference call regarding third quarter results on
Thursday, November 10, 2016 at 8:00 am ET (7:00 am CT). Those wishing to
listen can access the call by dialing (USA toll free) 1-800-369-2171;
International (USA toll) 1-517-308-9315 and request "Sunoco Logistics
Partners Earnings Call, Conference Code: Sunoco Logistics." This event
may also be accessed by a webcast, which will be available at www.sunocologistics.com.
A number of presentation slides will accompany the audio portion of the
call and will be available to be viewed and printed shortly before the
call begins. Audio replays of the conference call will be available for
two weeks after the conference call beginning approximately one hour
following the completion of the call. To access the replay, dial
1-866-427-6407. International callers should dial 1-203-369-0896.
ABOUT SUNOCO LOGISTICS
Sunoco Logistics Partners L.P. (NYSE: SXL), headquartered in Newtown
Square, Pennsylvania, is 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, NGLs and refined
products. SXL's general partner is a consolidated subsidiary of Energy
Transfer Partners, L.P. (NYSE: ETP). For more information, visit the
Sunoco Logistics Partners L.P. web site at www.sunocologistics.com.
This release is intended to be a qualified notice under Treasury
Regulation Section 1.1446-4(b). Brokers and nominees should treat one
hundred percent (100%) of distributions by Sunoco Logistics Partners
L.P. to non-U.S. investors as being attributable to income that is
effectively connected with a United States trade or business.
Accordingly, distributions by Sunoco Logistics Partners L.P. to non-U.S.
investors are subject to federal income tax withholding at the highest
applicable effective tax rate.
Portions of this document constitute forward-looking statements as
defined by federal law. Although Sunoco Logistics Partners L.P. believes
that the assumptions underlying these statements are reasonable,
investors are cautioned that such forward-looking statements are
inherently uncertain and necessarily involve risks that may affect the
Partnership’s business prospects and performance causing actual results
to differ from those discussed in the foregoing release. Such risks and
uncertainties include, by way of example and not of limitation: whether
or not the transactions described in the foregoing news release will be
cash flow accretive; increased competition; changes in demand for crude
oil, NGLs and refined products that we store and distribute; changes in
operating conditions and costs; changes in the level of environmental
remediation spending; potential equipment malfunction; potential labor
issues; the legislative or regulatory environment; plant
construction/repair delays; nonperformance by major customers or
suppliers; and political and economic conditions, including the impact
of potential terrorist acts and international hostilities. These and
other applicable risks and uncertainties have been described more fully
in the Partnership's Annual Report on Form 10-K filed with the
Securities and Exchange Commission on February 26, 2016, and in the
Partnership's subsequent Form 10-Q and Form 8-K filings. The Partnership
undertakes no obligation to update any forward-looking statements in
this release, whether as a result of new information or future events.
|
|
|
Sunoco Logistics Partners L.P.
|
|
Financial Highlights
|
|
(unaudited)
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
|
2016
|
|
2015
|
|
Variance
|
|
|
|
(in millions, except per unit amounts)
|
|
Income Statement:
|
|
|
|
|
|
|
|
Sales and other operating revenue
|
|
$
|
2,189
|
|
|
$
|
2,407
|
|
|
$
|
(218
|
)
|
|
|
|
|
|
|
|
|
|
Cost of products sold (1)
|
|
|
1,855
|
|
|
|
2,041
|
|
|
|
(186
|
)
|
|
Operating expenses (1)
|
|
|
41
|
|
|
|
41
|
|
|
|
—
|
|
|
Selling, general and administrative expenses
|
|
|
27
|
|
|
|
26
|
|
|
|
1
|
|
|
Depreciation and amortization expense
|
|
|
112
|
|
|
|
102
|
|
|
|
10
|
|
|
Impairment charge and related matters
|
|
|
(37
|
)
|
|
|
103
|
|
|
|
(140
|
)
|
|
Total Costs and Expenses
|
|
|
1,998
|
|
|
|
2,313
|
|
|
|
(315
|
)
|
|
Operating Income
|
|
|
191
|
|
|
|
94
|
|
|
|
97
|
|
|
Interest cost and debt expense, net
|
|
|
(68
|
)
|
|
|
(49
|
)
|
|
|
(19
|
)
|
|
Capitalized interest
|
|
|
28
|
|
|
|
12
|
|
|
|
16
|
|
|
Other income
|
|
|
12
|
|
|
|
7
|
|
|
|
5
|
|
|
Income Before Provision for Income Taxes
|
|
|
163
|
|
|
|
64
|
|
|
|
99
|
|
|
Provision for income taxes
|
|
|
(8
|
)
|
|
|
(7
|
)
|
|
|
(1
|
)
|
|
Net Income
|
|
|
155
|
|
|
|
57
|
|
|
|
98
|
|
|
Less: Net Income attributable to noncontrolling interests
|
|
|
(1
|
)
|
|
|
(1
|
)
|
|
|
—
|
|
|
Less: Net Income attributable to redeemable noncontrolling interests
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Net Income Attributable to Partners
|
|
$
|
154
|
|
|
$
|
56
|
|
|
$
|
98
|
|
|
|
|
|
|
|
|
|
|
Calculation of Limited Partners' interest:
|
|
|
|
|
|
|
|
Net Income attributable to Partners
|
|
$
|
154
|
|
|
$
|
56
|
|
|
$
|
98
|
|
|
Less: General Partner's interest
|
|
|
(101
|
)
|
|
|
(74
|
)
|
|
|
(27
|
)
|
|
Limited Partners' interest in Net Income
|
|
$
|
53
|
|
|
$
|
(18
|
)
|
|
$
|
71
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) attributable to Partners per Limited Partner
unit:
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.16
|
|
|
$
|
(0.07
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$
|
0.16
|
|
|
$
|
(0.07
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Limited Partners' units outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
|
307.0
|
|
|
|
255.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
308.1
|
|
|
|
255.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Prior period expenses have been recast to conform to current
presentation as a result of changes to our reportable segments.
|
|
|
|
|
|
|
|
Sunoco Logistics Partners L.P.
|
|
Financial Highlights
|
|
(unaudited)
|
|
|
|
|
|
Nine Months Ended September 30,
|
|
|
|
2016
|
|
2015
|
|
Variance
|
|
|
|
(in millions, except per unit amounts)
|
|
Income Statement:
|
|
|
|
|
|
|
|
Sales and other operating revenue
|
|
$
|
6,234
|
|
|
$
|
8,181
|
|
|
$
|
(1,947
|
)
|
|
|
|
|
|
|
|
|
|
Cost of products sold
|
|
|
5,259
|
|
|
|
7,196
|
|
|
|
(1,937
|
)
|
|
Operating expenses
|
|
|
97
|
|
|
|
120
|
|
|
|
(23
|
)
|
|
Selling, general and administrative expenses
|
|
|
81
|
|
|
|
76
|
|
|
|
5
|
|
|
Depreciation and amortization expense
|
|
|
327
|
|
|
|
278
|
|
|
|
49
|
|
|
Impairment charge and related matters
|
|
|
(143
|
)
|
|
|
44
|
|
|
|
(187
|
)
|
|
Total costs and expenses
|
|
|
5,621
|
|
|
|
7,714
|
|
|
|
(2,093
|
)
|
|
Operating Income
|
|
|
613
|
|
|
|
467
|
|
|
|
146
|
|
|
Interest cost and debt expense, net
|
|
|
(198
|
)
|
|
|
(151
|
)
|
|
|
(47
|
)
|
|
Capitalized interest
|
|
|
80
|
|
|
|
54
|
|
|
|
26
|
|
|
Other income
|
|
|
27
|
|
|
|
19
|
|
|
|
8
|
|
|
Income Before Provision for Income Taxes
|
|
|
522
|
|
|
|
389
|
|
|
|
133
|
|
|
Provision for income taxes
|
|
|
(19
|
)
|
|
|
(18
|
)
|
|
|
(1
|
)
|
|
Net Income
|
|
|
503
|
|
|
|
371
|
|
|
|
132
|
|
|
Less: Net Income attributable to noncontrolling interests
|
|
|
(2
|
)
|
|
|
(2
|
)
|
|
|
—
|
|
|
Less: Net Income attributable to redeemable noncontrolling interests
|
|
|
—
|
|
|
|
(1
|
)
|
|
|
1
|
|
|
Net Income attributable to Partners
|
|
$
|
501
|
|
|
$
|
368
|
|
|
$
|
133
|
|
|
|
|
|
|
|
|
|
|
Calculation of Limited Partners' interest:
|
|
|
|
|
|
|
|
Net Income attributable to Partners
|
|
$
|
501
|
|
|
$
|
368
|
|
|
$
|
133
|
|
|
Less: General Partner's interest
|
|
|
(289
|
)
|
|
|
(205
|
)
|
|
|
(84
|
)
|
|
Limited Partners' interest in Net Income
|
|
$
|
212
|
|
|
$
|
163
|
|
|
$
|
49
|
|
|
|
|
|
|
|
|
|
|
Net Income attributable to Partners per Limited Partner unit:
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.68
|
|
|
$
|
0.67
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$
|
0.68
|
|
|
$
|
0.66
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Limited Partners' units outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
|
295.5
|
|
|
|
244.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
296.3
|
|
|
|
245.2
|
|
|
|
|
(1)
|
|
Prior period expenses have been recast to conform to current
presentation as a result of changes to our reportable segments.
|
|
|
|
|
|
|
|
Sunoco Logistics Partners L.P.
|
|
Financial Highlights
|
|
(unaudited)
|
|
|
|
|
|
September 30, 2016
|
|
December 31, 2015
|
|
|
|
(in millions)
|
|
Balance Sheet Data:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
39
|
|
|
$
|
37
|
|
|
|
|
|
|
|
|
Revolving credit facilities (1)
|
|
$
|
622
|
|
|
$
|
562
|
|
|
Senior notes
|
|
|
5,350
|
|
|
|
4,975
|
|
|
Unamortized fair value adjustments (2)
|
|
|
85
|
|
|
|
93
|
|
|
Unamortized bond discount and debt issuance costs
|
|
|
(43
|
)
|
|
|
(39
|
)
|
|
Total Debt
|
|
$
|
6,014
|
|
|
$
|
5,591
|
|
|
|
|
|
|
|
|
Sunoco Logistics Partners L.P. equity
|
|
$
|
8,640
|
|
|
$
|
7,521
|
|
|
Noncontrolling interests
|
|
|
33
|
|
|
|
34
|
|
|
Total Equity
|
|
$
|
8,673
|
|
|
$
|
7,555
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Amount at September 30, 2016 includes $140 million of commercial
paper.
|
|
|
|
|
|
(2)
|
|
Represents fair value adjustments on our senior notes resulting from
the application of push-down accounting in connection with the
acquisition of our general partner by ETP on October 5, 2012.
|
|
|
|
|
|
|
|
Sunoco Logistics Partners L.P.
|
|
Financial and Operating Statistics
|
|
(unaudited)
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
(in millions)
|
|
Sales and other operating revenue
|
|
|
|
|
|
|
|
|
|
Crude Oil
|
|
$
|
1,843
|
|
$
|
2,034
|
|
$
|
5,115
|
|
$
|
7,159
|
|
Natural Gas Liquids
|
|
|
148
|
|
|
304
|
|
|
577
|
|
|
833
|
|
Refined Products
|
|
|
198
|
|
|
69
|
|
|
542
|
|
|
189
|
|
Total sales and other operating revenue
|
|
$
|
2,189
|
|
$
|
2,407
|
|
$
|
6,234
|
|
$
|
8,181
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
(in millions)
|
|
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
Crude Oil
|
|
$
|
165
|
|
$
|
179
|
|
$
|
503
|
|
$
|
502
|
|
Natural Gas Liquids
|
|
|
77
|
|
|
66
|
|
|
229
|
|
|
223
|
|
Refined Products
|
|
|
70
|
|
|
44
|
|
|
174
|
|
|
111
|
|
Total Adjusted EBITDA
|
|
$
|
312
|
|
$
|
289
|
|
$
|
906
|
|
$
|
836
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sunoco Logistics Partners L.P.
|
|
Financial and Operating Statistics Notes
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Operating Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude Oil: (1)
|
|
|
|
|
|
|
|
|
|
|
Pipeline throughput (thousands of barrels per day ("bpd")) (2)
|
|
|
|
2,516
|
|
|
2,395
|
|
|
2,380
|
|
|
2,232
|
|
Terminal throughput (thousands of bpd)
|
|
|
|
1,559
|
|
|
1,409
|
|
|
1,524
|
|
|
1,343
|
|
Gross profit (millions of dollars) (3)
|
|
|
$
|
173
|
|
$
|
191
|
|
$
|
531
|
|
$
|
538
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas Liquids:
|
|
|
|
|
|
|
|
|
|
|
Pipeline throughput (thousands of bpd)
|
|
|
|
289
|
|
|
205
|
|
|
268
|
|
|
190
|
|
Terminal throughput (thousands of bpd)
|
|
|
|
252
|
|
|
205
|
|
|
229
|
|
|
174
|
|
Gross profit (millions of dollars) (3)
|
|
|
$
|
68
|
|
$
|
104
|
|
$
|
234
|
|
$
|
250
|
|
|
|
|
|
|
|
|
|
|
|
|
Refined Products: (1)
|
|
|
|
|
|
|
|
|
|
|
Pipeline throughput (thousands of bpd) (2)
|
|
|
|
611
|
|
|
522
|
|
|
573
|
|
|
492
|
|
Terminal throughput (thousands of bpd)
|
|
|
|
570
|
|
|
562
|
|
|
554
|
|
|
518
|
|
Gross profit (millions of dollars) (3)
|
|
|
$
|
52
|
|
$
|
30
|
|
$
|
113
|
|
$
|
77
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
Excludes amounts attributable to equity interests which are not
consolidated.
|
|
|
|
|
|
|
(2)
|
|
|
Prior period balances were restated to conform to current
presentation.
|
|
|
|
|
|
|
(3)
|
|
|
Represents total segment sales and other operating revenue, less
cost of products sold and operating expenses.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sunoco Logistics Partners L.P.
|
|
Non-GAAP Financial Measures
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
(in millions)
|
|
Net Income
|
|
$
|
155
|
|
|
$
|
57
|
|
|
$
|
503
|
|
|
$
|
371
|
|
|
Interest expense, net
|
|
|
40
|
|
|
|
37
|
|
|
|
118
|
|
|
|
97
|
|
|
Depreciation and amortization expense
|
|
|
112
|
|
|
|
102
|
|
|
|
327
|
|
|
|
278
|
|
|
Provision for income taxes
|
|
|
8
|
|
|
|
7
|
|
|
|
19
|
|
|
|
18
|
|
|
Non-cash compensation expense
|
|
|
5
|
|
|
|
4
|
|
|
|
16
|
|
|
|
12
|
|
|
Unrealized (gains) losses on commodity risk management activities
|
|
|
16
|
|
|
|
(32
|
)
|
|
|
33
|
|
|
|
(9
|
)
|
|
Amortization of excess investment in joint venture interests
|
|
|
1
|
|
|
|
1
|
|
|
|
2
|
|
|
|
2
|
|
|
Proportionate share of unconsolidated affiliates’ interest,
depreciation and provision for income taxes
|
|
|
12
|
|
|
|
10
|
|
|
|
31
|
|
|
|
23
|
|
|
Non-cash inventory adjustments
|
|
|
(37
|
)
|
|
|
103
|
|
|
|
(143
|
)
|
|
|
44
|
|
|
Adjusted EBITDA (1)
|
|
|
312
|
|
|
|
289
|
|
|
|
906
|
|
|
|
836
|
|
|
Interest expense, net
|
|
|
(40
|
)
|
|
|
(37
|
)
|
|
|
(118
|
)
|
|
|
(97
|
)
|
|
Provision for current income taxes
|
|
|
(7
|
)
|
|
|
(8
|
)
|
|
|
(17
|
)
|
|
|
(22
|
)
|
|
Amortization of fair value adjustments on long-term debt
|
|
|
(2
|
)
|
|
|
(4
|
)
|
|
|
(8
|
)
|
|
|
(10
|
)
|
|
Proportionate share of unconsolidated affiliates' interest,
provision for current income taxes and maintenance capital
expenditures (2)
|
|
|
(10
|
)
|
|
|
(12
|
)
|
|
|
(30
|
)
|
|
|
(30
|
)
|
|
Maintenance capital expenditures
|
|
|
(13
|
)
|
|
|
(18
|
)
|
|
|
(40
|
)
|
|
|
(49
|
)
|
|
Distributable cash flow attributable to noncontrolling interests
|
|
|
(1
|
)
|
|
|
—
|
|
|
|
(2
|
)
|
|
|
(2
|
)
|
|
Contributions attributable to acquisition from affiliate
|
|
|
1
|
|
|
|
2
|
|
|
|
5
|
|
|
|
8
|
|
|
Distributable Cash Flow (1) (2)
|
|
$
|
240
|
|
|
$
|
212
|
|
|
$
|
696
|
|
|
$
|
634
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
Our management believes that Adjusted EBITDA and distributable cash
flow information enhances an investor's understanding of a
business's performance, which is a factor in evaluating its ability
to generate cash for payment of distributions and other purposes.
Adjusted EBITDA and distributable cash flow do not represent and
should not be considered an alternative to net income or cash flows
from operating activities as determined under United States GAAP and
may not be comparable to other similarly titled measures of other
businesses.
|
|
|
|
|
|
|
(2)
|
|
|
During the first quarter 2016, we changed our definition of
distributable cash flow to conform to the presentation utilized by
our general partner. The change did not have a material impact on
our distributable cash flow. Prior period amounts have been recast
to conform to current presentation.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20161109006299/en/
Copyright Business Wire 2016
