Friday, May 11, 2012
Sunoco Logistics Partners reports earnings for the first quarter 2012
PHILADELPHIA, Pa. - Sunoco Logistics Partners L.P. (SXL) on May 2 announced net income attributable to owners for the first quarter 2012 of $95 million ($0.77 per unit diluted), compared with $48 million ($0.36 per unit diluted) for the first quarter 2011.
Highlights of the first quarter include:
n Adjusted EBITDA of $161 million.
n Record distributable cash flow of $122 million.
n Completed two open seasons for crude pipeline projects in West Texas.
"Demand for our services and assets remained high on continued strong interest for West Texas crude," said Michael J. Hennigan, president and chief executive officer. "Market opportunities within our crude oil business contributed to another excellent quarter."
Commenting on the Partnership's previously announced West Texas crude expansion projects, Hennigan said, "With successful open seasons for our West Texas-Houston and West Texas-Longview projects behind us, we stand ready to meet customer needs now and in the future. An additional open season for our West Texas-Nederland project is currently under way and we are encouraged by the interest we've seen to date. These projects, collectively totaling approximately 110 thousand barrels per day, demonstrate that our attractively positioned assets can bring Permian Basin crude to markets where it makes sense for customers."
Discussing additional organic growth initiatives for the Partnership, Hennigan said, "From an NGL perspective, our Mariner West project, the first ethane pipeline solution in the Marcellus area, is on schedule for a mid-2013 start-up. We are still confident in a Mariner East project as our ability to access waterborne markets will be important as Marcellus and Utica production continues to grow."
In April 2012, Sunoco, Inc. announced that it has entered into a definitive merger agreement to be acquired by Energy Transfer Partners, L.P. The transaction is expected to close in the third or fourth quarter 2012, subject to approval by Sunoco shareholders and customary regulatory approvals.