Now I'll begin by providing an update on the strategic actions of the company, and then we'll move into the earnings and business update for both Sunoco Logistics Partners and Sunoco.As most of you are aware, on April 30, 2012, Sunoco announced that it had entered into a merger agreement to be acquired by Energy Transfer Partners LP. We continue to move forward with this merger process, as seen by ETP's filing of the first amendment of Form F-4 registration statement last week. We are on track and working towards closing this transaction in the early part of the fourth quarter. In July, we also announced an agreement to form Philadelphia Energy Solutions, a joint venture with The Carlyle Group at the Philadelphia refinery. Sunoco will be contributing this Philadelphia refinery assets in exchange for a nonoperating minority interest of approximately 33%. Sunoco will receive cash proceeds for the liquidation of working capital related to the refinery. These cash proceeds are in line with expectations when we announced the exit from refining. Sunoco will have no ongoing capital obligations with respect to the refinery. We believe that this structure provides the best opportunity for the success of the Philadelphia refinery and look forward to closing the transaction with The Carlyle Group, which we anticipate to be in September. Now moving onto the results from the second quarter. As you can see from Slide 4, Sunoco reported net income before special items of $129 million or $1.22 per share for the second quarter. I'll summarize our results in 3 areas. Our Logistics business continues to deliver strong results and execute on growth opportunities. Sunoco Logistics is progressing well on projects to grow their fee-based earnings and anticipates $350 million to $400 million in organic growth projects for 2012. Mike Hennigan will provide an overview of the results of Sunoco Logistics Partners in a few moments.
Our retail business also delivered strong results, as margins expanded related to declining wholesale gasoline prices during the quarter. As we have said before, this business does see quarter-to-quarter volatility, as evidenced in the first half of 2012 performance. But as our trend shows, the business tends to deliver consistent and stable earnings and cash flows year after year.Lastly, Refining and Supply delivered strong results this quarter. I want to commend our refinery employees for achieving excellent operating results and capitalizing on strong market conditions during what was a time of considerable uncertainty for everyone at the Philadelphia refinery. As long we are the operator, we continue to work hard to realize the potential market opportunities through a continued strong operations and sharp focus on optimization of the product supply. At this time, I'm going to turn the call over to Mike Hennigan, who will provide an update on Sunoco Logistics Partners strong business results. Michael J. Hennigan Thank you, Brian. Sunoco Logistics continues its momentum with another strong performance in the second quarter of 2012. We had record distributable cash flow of $166 million compared to $106 million in 2011. All of the areas that are part of our strategic focus are delivering results. The main driver of results continues to be our crude oil business. Demand for West Texas crude continues to be at a very high level, translating into tremendous demand for our transportation services, including our proprietary pipelines, our West Texas Gulf and Mid-Valley Pipeline joint ventures and our trucking services. The expansion of our West Texas system continues on track to meet the market needs and is expected to start up in the first quarter of 2013. We've completed 3 successful open seasons, which will deliver 110,000 barrels to the market. We also announced our fourth West Texas open season called Permian Express, a new project to transport West Texas crude oil to Gulf Coast markets. Phase 1 of the project will have a capacity of approximately 150,000 barrels per day. Permian Express could be expanded to at least 350,000 barrels per day. Read the rest of this transcript for free on seekingalpha.com