Sunoco Logistics Partners acquires, owns, and operates a large swath of midstream and downstream assets, primarily in tandem with former parent and current affiliate Sunoco. This includes ownership of more than 7,900 miles of crude oil, refined product, and oil gathering pipelines and minority interests in four refined product pipelines, as well as more than 40 terminals and other storage assets related to Sunoco's refining and marketing operations. In 2016 the company agreed to buy Vitol's crude oil assets in the Permian basin for $760 million. It also agreed to buy Energy Transfer Partners in a deal valued at $19.9 billion.
Sunoco Logistics Partners operates in industry segments, including crude oil acquisition and marketing, refined products pipelines, terminal facilities, and crude oil pipeline. The company's refined products pipelines segment consists of 2,500 miles of petroleum products pipeline, and serves customers primarily in the Northeast and Midwest regions of the US. Through its terminal facilities unit Sunoco Logistics Partners is capable of storing 42 million barrels of refined products and crude oil. The crude oil pipeline segment, consisting of about 4,900 miles of crude oil pipelines, primarily serves customers in Oklahoma and Texas. It also has 500 miles of crude oil gathering lines that supply the trunk pipelines.
The company gets the bulk of its revenues from crude oil acquisition and marketing activities.
Higher oil and refined product prices helped to lift Sunoco Logistics Partners' revenue by 39% in 2011 thanks to an increase in revenues from terminal facilities (up 52%), crude oil pipelines (44%), and crude oil acquisition and marketing (40%) segments. Net income dropped by 7% in 2011 due to an increase in operating expenses, other interest costs, and debt expense.
Except for a revenue slump in 2009 (caused by the drop in demand for oil and oil products as a result of the global recession) Sunoco Logistics Partners saw an upward trend in revenues from 2007 to 2011.
The company pursues a strategy of growing its businesses organically and through complementary acquisitions (more than 20 since 2002). Expanding its pipeline assets, in 2011 the company acquired control of Inland Corp., (which has a 350-mile refined-products pipeline and related facilities) for $100 million. It also acquired the Eagle Point tank farm and related assets in Westville, New Jersey, from Sunoco for $100 million.
That year Sunoco Logistics Partners acquired a crude oil acquisition and marketing business from Texon. The purchase consists of a lease crude business and gathering assets in 16 states, primarily in the western US. (It had acquired the butane blending business of Texon in 2010 for $140 million plus inventory).
In 2012 Sunoco (which formed Sunoco Logistics Partners in 2002 to operate a major portion of its midstream and downstream assets) controlled about 34% of the company, including a 2% general partner interest.