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Published byMina Phipps Modified over 9 years ago
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WELCOME TO OUR 2012 CUSTOMER CONFERENCE WHERE WE VALUE OUR CUSTOMERS!
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OPENING REMARKS MIKE SCHMIDT MANAGER, PRODUCT MOVEMENT
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SXL LEGAL DISCLAIMER Statements we make that are not historical facts are forward-looking statements. These forward-looking statements are not guarantees of future performance. Although we believe the assumptions underlying these statements are reasonable, investors are cautioned that such forward-looking statements involve risks and uncertainties that may affect our business and cause actual results to differ materially from those discussed in this presentation. Such risks and uncertainties include economic, business, competitive and/or regulatory factors affecting our business, as well as uncertainties related to the outcomes of pending or future litigation. Sunoco Logistics Partners L.P. has included in its Annual Report on Form 10-K for the year ended December 31, 2011 cautionary language identifying important factors (though not necessarily all such factors) that could cause future outcomes to differ materially from those set forth in the forward-looking statements. For more information about these factors, see our SEC filings, available on our website at www.sunocologistics.com. We expressly disclaim any obligation to update or alter these forward-looking Statements whether as a result of new information, future events or otherwise. This presentation includes certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of non- GAAP financial measures to GAAP financial measures are provided in the appendix to this presentation. You should consider carefully the comparable GAAP measures and the reconciliations to those measures provided in this presentation.
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OVERVIEW OF SUNOCO LOGISTICS SYSTEMS Pipeline – George Dikeman Nederland – Brian Hudgins Butane – Laura Olah Energy Transfer – Luke Fletcher
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ASSET OVERVIEW
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CRUDE OIL PIPELINE SYSTEM Approximately 4,900 miles of crude oil trunk lines located in the Southwest and Midwest U.S. Approximately 500 miles of gathering lines 60.3% interest in West Texas Gulf Pipeline, a 580-mile crude oil pipeline 91.0% interest in Mid-Valley Pipeline, a 990-mile crude oil pipeline 37.0% undivided interest in Mesa Pipeline
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REFINED PRODUCTS PIPELINE SYSTEM Refined products pipeline system (approximately 2,500 miles), located in the Northeast, Midwest and Southwest U.S. Equity interest in four product pipelines Explorer (9.4%) West Shore (17.1%) Wolverine (31.5%) Yellowstone (14.0%) 83.8% interest in Inland Pipeline, a 350-mile refined products pipeline system
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MAJOR ORGANIC PROJECTS IN 2012 Successful Open Seasons West Texas Crude expansion (crude oil) Permian Express Phase I (crude oil) Allegheny Access (refined products) Mariner West (natural gas liquids) Mariner East (natural gas liquids) Actively developing Permian Express Phase II (crude oil) Continued development and expansion at Eagle Point Terminal
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NEDERLAND OVERVIEW BRIAN HUDGINS TERMINAL SUPERVISOR
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NEDERLAND MARINE TERMINAL 68 Crude Storage Tanks 70 Lube Storage Tanks Provide Bunker Service Railcar offload Facility 5 Ship Docks 3 Barge Docks
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CRUDE STORAGE CAPACITY 68 Crude Oil Storage Tanks Total Shell Capacity ~21.6Mbbls. Max Fill Capacity ~18.1Mbbls.
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RAILCAR FACILITY Able to receive a 112 railcar unit train Able to offload unit train in ~ 4 days
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RAILCAR CAPABILITIES 30 Crude unloading spots. 6 positive displacement pumps rated at 1,050 bbl/hr each. 4.5 hr pump time for 30 cars. Daily switches via KCS.
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Keystone Pipeline
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FIVE SHIP DOCKS & THREE BARGE DOCKS
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BUTANE OVERVIEW LAURA OLAH BUSINESS DEVELOPMENT
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Butane Blending Program SXL owns and operates the only U.S. patented Automated Butane Blending System
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WHY BLEND? Distribution System Many products Complex refining Long-haul pipelines Gasoline Volatility Specifications Geographically diverse Multiple seasonal changes Pipeline vs Retail Specifications Butane Blend Opportunity Direct to rack or pipeline Maximizing Profitability
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Standard & Customized Design Financial Options Butane Supply Regulatory Compliance Proprietary Blending Systems Customer Service Full, Turn - Key Program
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Tailored Design Complex design and permitting
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Designed for Performance Commitment to safety & reliability
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Commitment to Readiness Training and Commencement
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Butane Supply Certification & Compliance
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Operational Excellence Focus on optimization
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Communication & Reporting Dynamic Analysis, Trending Daily Report
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ENERGY TRANSFER OVERVIEW ENERGY TRANSFER OVERVIEW LUKE FLETCHER VP, COMMERCIAL OPERATIONS
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THE CHANGING ENVIRONMENT OF PIPELINE SAFETY REGULATION LARRY SHELTON MANAGER, ASSET INTEGRITY
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BACKGROUND High Profile Events NTSB/Congress Criticism of PHMSA Secretary LaHood’s Call to Action Pipeline Safety, Regulatory Certainty, and Jobs Creation Act of 2011 Performance-Based Regulations Mixed Results in 10 Years of IMP Rule
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SO, WHAT’S COMING? ……
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ASSET INTEGRITY Low Stress Phase II Implementation Gathering New Repair Requirements Expand Requirements beyond HCAs More ILI Tools Non-Pipeline Facilities “Fitness for Service”
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DESIGN & CONSTRUCTION Mill QC Construction Inspections Advance Notice Cost Recovery Operator Qualification
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DATA REQUIREMENTS Records Verification ILI as an As-Built Verification Tool Sophisticated Data Integration More Data Layers for Risk Modeling Risk Quantification (vs. Qualification)
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DAMAGE PREVENTION Evaluate State One Call Programs Face-to-Face with Emergency Responders Train & Drill with Emergency Responders NTSB Putting Onus on Agencies to Seek Out Training from Operators Closer Liaison with 911
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REGULATORS More PHMSA Inspectors More State Inspectors More Inspections Broader Interpretations Stricter Enforcement Higher Penaltie $
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BOTTOM LINE Improved Technology More Repairs & MOP Restrictions Higher Expectations Greater Scrutiny Tougher Penalties Smoother Sailing
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