Sunoco Logistics Announces Results For Third Quarter 2016

Sunoco Logistics Partners L.P. (NYSE: SXL) (the "Partnership") today announced net income attributable to partners for the nine months ended September 30, 2016 was $501 million ($0.68 per limited partner unit, diluted), compared to $368 million ($0.66 per limited partner unit, diluted) for the prior year period. Adjusted EBITDA for the nine months ended September 30, 2016 was $906 million, compared to $836 million for the prior year period. Net income attributable to partners for the three months ended September 30, 2016 was $154 million ($0.16 per limited partner unit, diluted), compared to $56 million (a loss of $0.07 per limited partner unit, diluted) for the prior year period. Adjusted EBITDA was $312 million for the three months ended September 30, 2016, compared to $289 million for the prior year period.

Recent highlights include:
  • Distributable Cash Flow of $696 million for the nine months ended September 30, 2016
  • Distribution increase to $0.51 ($2.04 annualized) for the third quarter 2016
  • Commenced operations on the Delaware Basin Extension and Permian Longview and Louisiana Extension pipelines
  • Completed the $760 million acquisition from Vitol of a Permian Basin crude oil system and remaining interest in SunVit
  • In support of the acquisition, our general partner agreed to reduce incentive distributions by $60 million over a two-year period
  • Raised $1.2 billion through the issuance of senior notes and a public equity offering to fund the acquisition and in support of our expansion capital program
  • Debt-to-Adjusted EBITDA ratio of 3.6x at September 30, 2016, calculated in accordance with our credit agreement
  • Announced a strategic joint venture with ExxonMobil to form Permian Express Partners LLC, combining certain key crude oil logistics assets

"Our year-to-date financial results represent an approximate 10 percent increase in earnings and distributable cash flow, including an approximate 25 percent increase in blue bar results, despite a very challenging macro environment," said Michael J. Hennigan, President and Chief Executive Officer. "Despite the loss of red bar opportunities, our latest expansion projects in the Permian and Marcellus basins generate sustainable cash flow that more than offset a reduction in market-related earnings. We believe we can continue to differentiate ourselves by growing earnings in any market."

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