Sunoco Logistics Partners L.P. (SXL, Financial) filed Quarterly Report for the period ended 2010-03-31.
Sunoco Logistics Partners L.p. has a market cap of $2.09 billion; its shares were traded at around $67.33 with a P/E ratio of 12.9 and P/S ratio of 0.4. The dividend yield of Sunoco Logistics Partners L.p. stocks is 6.5%. Sunoco Logistics Partners L.p. had an annual average earning growth of 13% over the past 10 years.SXL is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Operating income for the Refined Products Pipeline System decreased $3.0 million to $7.5 million for the first quarter ended March 31, 2010 compared to the prior years quarter. Sales and other operating revenue decreased $2.3 million to $29.1 million due primarily to decreased volumes associated with refinery maintenance activity in the first quarter of 2010 and the permanent shut-down of the Eagle Point refinery in the fourth quarter of 2009. Operating expenses decreased $0.8 million to $13.2 million compared to the prior years quarter due primarily to timing of maintenance activity, decreased utility costs and increased pipeline operating gains which were favorably impacted by higher refined products prices. Selling, general and administrative expenses increased $0.8 million for the quarter due primarily to non-recurring expenses related to the Partnerships incentive distribution rights repurchase and exchange transaction and employee severance costs.
Operating income for the Terminal Facilities segment increased $1.3 million to $22.6 million for the first quarter ended March 31, 2010 compared to the prior years quarter. Total revenues for the first quarter of 2010 increased $8.8 million to $55.1 million despite reduced volumes in the Partnerships refinery terminals which were negatively impacted by refinery maintenance activity and the permanent shut-down of the Eagle Point refinery. Revenue increases during the quarter were due primarily to increased tank revenues and higher volumes at the Nederland facility, including the additional tankage to support Motivas Port Arthur, TX refinery and additional volumes from a refined products terminal acquired in September 2009. Revenues and cost of products sold also increased compared to the prior year quarter as a result of the commencement of terminal optimization projects at the Partnerships refined products terminals during the fourth quarter of 2009. Depreciation and amortization expense increased $1.2 million to $5.9 million for the first quarter 2010 as a result of increased tankage at the Partnerships Nederland facility and the acquisition of a refined products terminal in September 2009. Selling, general and administrative expenses increased $1.4 million for the quarter due primarily to the non-recurring expenses described above.
In March 2009, the Operating Partnership entered into a $62.5 million revolving credit facility ($62.5 million Credit Facility) with 2 participating financial institutions. The $62.5 million Credit Facility is available to fund the Operating Partnerships working capital requirements, to finance future acquisitions and for general partnership purposes. The $62.5 million Credit Facility matures in September 2011 and may be repaid at any time. It bears interest at the Operating Partnerships option, at either (i) LIBOR plus an applicable margin or (ii) the higher of (a) the federal funds rate plus 0.50 percent plus an applicable margin, (b) Toronto Dominions prime rate plus an applicable margin or (c) LIBOR plus 1.0 percent plus an applicable margin. The $62.5 million Credit Facility contains various covenants similar to the $400.0 million credit facility and also requires the Operating Partnership to maintain, on a rolling four-quarter basis, a maximum total debt to EBITDA ratio of 4.5 to 1, which can generally be increased to 5.0 to 1 during an acquisition period. The Operating Partnership was in compliance with this requirement as of March 31, 2010. At March 31, 2010, there was $31.3 million outstanding under this credit facility.
Net cash provided by operating activities for the three months ended March 31, 2010 was $1.2 million compared with $61.8 million net cash used in operating activities for the three months ended March 31, 2009. Net cash provided by operating activities in 2010 related primarily to net income of $43.1 million and non-cash charges of depreciation and amortization of $14.5 million offset by a $52.3 million increase in working capital. The increase in working capital was the result of increases in accounts receivable and contango inventory positions partially offset by an increase in accounts payable. Net cash used in operating activities for the first three months of 2009 was primarily the result of net income of $80.9 million, depreciation and amortization of $11.6 million, and a $143.7 million increase in working capital. The increase in working capital was the result of increases in accounts receivable and contango inventory positions partially offset by an increase in accounts payable.
Net cash provided by financing activities for the three months ended March 31, 2010 was $25.4 million compared with $96.0 million for the comparable period in 2009. Net cash provided by financing activities for 2010 resulted from $500.0 million issuance of senior notes net of $6.0 million of note discounts and debt issuance costs. This source of cash was partially offset by $225.7 million net repayment of the Partnerships credit facilities, $201.2 million in distributions to repay in full the promissory note issued in connection with the repurchase and exchange of the general partners incentive distribution rights and $47.4 million in quarterly distributions to the limited partners and general partner. Net cash provided by financing activities for the comparable period in 2009 resulted from $38.5 million in distributions paid to limited partners and the general partner and $35.7 million of net borrowings from the Partnerships credit facilities offset by $173.6 million of net proceeds from the 2009 issuance of senior notes.
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Sunoco Logistics Partners L.p. has a market cap of $2.09 billion; its shares were traded at around $67.33 with a P/E ratio of 12.9 and P/S ratio of 0.4. The dividend yield of Sunoco Logistics Partners L.p. stocks is 6.5%. Sunoco Logistics Partners L.p. had an annual average earning growth of 13% over the past 10 years.SXL is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Net income was $43.1 million for the first quarter 2010 as compared with $80.9 million for the first quarter 2009. The $37.8 million decrease in net income was primarily the result of the absence of a wide contango crude oil market structure along with decreased refined products volumes which were impacted by planned and unplanned refinery maintenance activity and approximately $3.0 million in non-recurring expenses. This reduction in net income was partially offset by higher crude oil pipeline volumes and fees and improved operating performance at the Partnerships Nederland and refined products terminals. Increased net interest expense of $5.8 million further contributed to the decrease in net income. The change in interest expense is partially attributed to the offering of $500.0 million in senior notes completed during the first quarter 2010. Net proceeds from this offering were utilized to finance the Partnerships transaction to repurchase and exchange the General Partners incentive distribution rights and repay outstanding borrowings under its revolving credit facility. A full quarter of interest expense in 2010 on the $175.0 million of senior notes, issued in February 2009, further contributed to the increase in expense.Operating income for the Refined Products Pipeline System decreased $3.0 million to $7.5 million for the first quarter ended March 31, 2010 compared to the prior years quarter. Sales and other operating revenue decreased $2.3 million to $29.1 million due primarily to decreased volumes associated with refinery maintenance activity in the first quarter of 2010 and the permanent shut-down of the Eagle Point refinery in the fourth quarter of 2009. Operating expenses decreased $0.8 million to $13.2 million compared to the prior years quarter due primarily to timing of maintenance activity, decreased utility costs and increased pipeline operating gains which were favorably impacted by higher refined products prices. Selling, general and administrative expenses increased $0.8 million for the quarter due primarily to non-recurring expenses related to the Partnerships incentive distribution rights repurchase and exchange transaction and employee severance costs.
Operating income for the Terminal Facilities segment increased $1.3 million to $22.6 million for the first quarter ended March 31, 2010 compared to the prior years quarter. Total revenues for the first quarter of 2010 increased $8.8 million to $55.1 million despite reduced volumes in the Partnerships refinery terminals which were negatively impacted by refinery maintenance activity and the permanent shut-down of the Eagle Point refinery. Revenue increases during the quarter were due primarily to increased tank revenues and higher volumes at the Nederland facility, including the additional tankage to support Motivas Port Arthur, TX refinery and additional volumes from a refined products terminal acquired in September 2009. Revenues and cost of products sold also increased compared to the prior year quarter as a result of the commencement of terminal optimization projects at the Partnerships refined products terminals during the fourth quarter of 2009. Depreciation and amortization expense increased $1.2 million to $5.9 million for the first quarter 2010 as a result of increased tankage at the Partnerships Nederland facility and the acquisition of a refined products terminal in September 2009. Selling, general and administrative expenses increased $1.4 million for the quarter due primarily to the non-recurring expenses described above.
In March 2009, the Operating Partnership entered into a $62.5 million revolving credit facility ($62.5 million Credit Facility) with 2 participating financial institutions. The $62.5 million Credit Facility is available to fund the Operating Partnerships working capital requirements, to finance future acquisitions and for general partnership purposes. The $62.5 million Credit Facility matures in September 2011 and may be repaid at any time. It bears interest at the Operating Partnerships option, at either (i) LIBOR plus an applicable margin or (ii) the higher of (a) the federal funds rate plus 0.50 percent plus an applicable margin, (b) Toronto Dominions prime rate plus an applicable margin or (c) LIBOR plus 1.0 percent plus an applicable margin. The $62.5 million Credit Facility contains various covenants similar to the $400.0 million credit facility and also requires the Operating Partnership to maintain, on a rolling four-quarter basis, a maximum total debt to EBITDA ratio of 4.5 to 1, which can generally be increased to 5.0 to 1 during an acquisition period. The Operating Partnership was in compliance with this requirement as of March 31, 2010. At March 31, 2010, there was $31.3 million outstanding under this credit facility.
Net cash provided by operating activities for the three months ended March 31, 2010 was $1.2 million compared with $61.8 million net cash used in operating activities for the three months ended March 31, 2009. Net cash provided by operating activities in 2010 related primarily to net income of $43.1 million and non-cash charges of depreciation and amortization of $14.5 million offset by a $52.3 million increase in working capital. The increase in working capital was the result of increases in accounts receivable and contango inventory positions partially offset by an increase in accounts payable. Net cash used in operating activities for the first three months of 2009 was primarily the result of net income of $80.9 million, depreciation and amortization of $11.6 million, and a $143.7 million increase in working capital. The increase in working capital was the result of increases in accounts receivable and contango inventory positions partially offset by an increase in accounts payable.
Net cash provided by financing activities for the three months ended March 31, 2010 was $25.4 million compared with $96.0 million for the comparable period in 2009. Net cash provided by financing activities for 2010 resulted from $500.0 million issuance of senior notes net of $6.0 million of note discounts and debt issuance costs. This source of cash was partially offset by $225.7 million net repayment of the Partnerships credit facilities, $201.2 million in distributions to repay in full the promissory note issued in connection with the repurchase and exchange of the general partners incentive distribution rights and $47.4 million in quarterly distributions to the limited partners and general partner. Net cash provided by financing activities for the comparable period in 2009 resulted from $38.5 million in distributions paid to limited partners and the general partner and $35.7 million of net borrowings from the Partnerships credit facilities offset by $173.6 million of net proceeds from the 2009 issuance of senior notes.
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