Friday, February 17, 2012

Sunoco Logistics Partners reports earnings for fourth quarter 2011

Sunoco Logistics Partners L.P. (NYSE: SXL) on Jan. 26 announced net income attributable to owners for the fourth quarter 2011 of $76 million ($0.60 per unit diluted), compared with $59 million ($0.47 per unit diluted) for the fourth quarter 2010.

Net income for the fourth quarter 2011 includes a $42 million charge to impair certain assets and account for regulatory obligations associated with the Partnership's assets which could be negatively impacted by Sunoco, Inc.'s announced exit from its refining operations. Excluding the charge, the Partnership had net income of $118 million ($0.99 per unit diluted).

Highlights of the fourth quarter and full year 2011 include:

-- Adjusted EBITDA for the quarter rose to a record level of $165 million and $544 million for the full year
-- Record distributable cash flow of $110 million for the quarter and $388 million for the full year
-- Continued to focus on growth: $665 million of expansion capital spending, including major acquisitions
-- Completed a three-for-one unit split on Dec. 2, 2011

"The Partnership had a record year in 2011," said Lynn L. Elsenhans, chairman and chief executive officer. "The West Texas crude oil market and developing shale production areas provided many opportunities for us to optimize our assets to generate additional cash flow. In addition, we continue to grow our ratable business which was up 14 percent year over year. 2011 expansion capital was $665 million, including $494 million of major acquisitions. Our acquisitions and organic projects over the past year are in alignment with our goal of creating long-term, sustainable growth."

In looking towards expectations for the future, Elsenhans said, "Our Mariner West project with MarkWest Energy to deliver ethane to Canada is under way. This project is backed by long-term shipper commitments and is expected to be operational by July 2013. We continue to develop our West Texas crude expansion project, which is expected to be on-line in the first quarter of 2013. For 2012, we plan to increase organic capital spending to approximately $300 million in order to capture more value from existing assets such as Eagle Point, Nederland and our patented butane blending technology, as well as Mariner West and the West Texas crude expansion."

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