Crude Oil Acquisition and Marketing
Operating income for the third quarter 2012 increased compared to the prior year period due primarily to expanded crude oil margins which were the result of expansion in our crude oil trucking fleet, market related opportunities in West Texas and improved margins from the assets acquired from Texon L.P. in the third quarter of 2011.
Operating income for the third quarter 2012 increased compared to the prior year period due primarily to increased operating results from the Partnership’s refined products acquisition and marketing activities and contributions from the 2011 acquisitions of the Eagle Point tank farm and a refined products terminal in East Boston, Massachusetts, partially offset by reduced volumes from the idling of Sunoco’s Marcus Hook refinery in the fourth quarter 2011.Refined Products Pipelines Operating income for the third quarter 2012 was consistent with the prior year period. The Partnership realized increased equity income for the quarter related to the Partnership’s joint venture interest in Explorer Pipeline Company due to a non-recurring gain associated with an asset sale. This increase was largely offset by lower pipeline revenues due primarily to the idling of Sunoco’s Marcus Hook refinery in the fourth quarter 2011. Financing Update Net interest expense decreased compared to the prior year period due to the repayment of $250 million of Senior Notes in February 2012 and the $100 million promissory note to Sunoco in the fourth quarter of 2011 and higher capitalized interest associated with the Partnership’s expansion capital program. At September 30, 2012, the Partnership’s total debt balance was $1.63 billion, with $179 million in borrowings under its revolving credit facilities including $9 million outstanding under West Texas Gulf’s revolving credit facility.
|Nine Months Ended|
|Maintenance capital expenditures||$||29||$||20|
|Expansion capital expenditures||206||102|
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