Sunoco Reports Second Quarter 2006 Results5 August 2006
Sunoco, Inc. (NYSE: SUN) today reported net income of $426 million ($3.22 per share diluted) for the second quarter of 2006 versus $242 million ($1.75 per share diluted) for the second quarter of 2005. For the first half of 2006, Sunoco reported net income of $505 million ($3.80 per share diluted) versus $358 million ($2.58 per share diluted) in the first half of 2005. There were no special items in either the quarterly or year-to-date periods.
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"Strong refining margins, particularly for ethanol-blended gasoline and low-sulfur diesel products, led to record quarterly earnings," said John G. Drosdick, Sunoco Chairman and Chief Executive Officer. "Margins strengthened during the quarter as the tight supply/demand balance in refining markets continued. Despite the higher prices associated with crude oil and product price increases, we continued to see steady demand for transportation fuels in the second quarter."
Drosdick continued, "In this market, our income again came largely from Refining and Supply, which earned $409 million for the quarter. With overall conversion unit utilization rates at approximately 98 percent, operations were strong and enabled us to maximize supply of premium gasoline and distillate products.
"Refining margins have remained relatively strong into the third quarter to date. Unscheduled maintenance in our Northeast Refining system reduced production by approximately four million barrels in July but is now complete and no further significant maintenance is planned for the quarter. With continued modest demand growth, the outlook for refining remains favorable.
"Non-refining business unit earnings totaled $40 million for the quarter. Retail Marketing earnings were up versus a year ago due to slightly higher retail gasoline margins. In our Chemicals business, the further increases in chemical feedstock cost, particularly propylene, led to much lower margins for polypropylene and phenol than in the 2005 second quarter. Market conditions for these businesses are similar at this time."
Drosdick added, "We continued our share repurchase program - $150 million during the quarter and $198 million year-to-date and have reduced our shares outstanding by two percent so far this year. With a recently approved increase, the remaining share repurchase authorization is currently $609 million."
Commenting on capital expenditures, Drosdick said, "We continue to execute our capital program in Refining and Supply and update estimates for future projects. While we still expect capital spending of approximately $600-$700 million annually in this business over the next several years, tightened market conditions for engineering, procurement and construction have raised cost estimates and lengthened anticipated completion schedules for many projects being considered. These pressures are likely to result in the extension of completion dates for some projects and the deferral or cancellation of others that do not meet required investment-return criteria. While potential economic returns for most refining upgrade or expansion projects remain attractive, we will continue to be disciplined when evaluating discretionary growth investments."
DETAILS OF SECOND QUARTER RESULTS
REFINING AND SUPPLY
Refining and Supply earned $409 million in the second quarter versus $212 million in the second quarter of 2005. The increase in earnings was due to higher realized margins in both the Northeast and MidContinent regions, particularly for wholesale gasoline and distillate products. Strong premiums for ethanol-blended gasoline and low-sulfur diesel fuel supported the wholesale marketplace throughout the second quarter. Partially offsetting these positive factors were higher expenses and lower production volumes. The higher expenses in the quarter were mainly the result of higher purchased fuel costs and expenses associated with maintenance activities. Also contributing to the increase in expenses were operating costs to produce low-sulfur fuels.
Total crude unit throughput averaged 863.8 thousand barrels daily (96 percent utilization) for the quarter, with total production available for sale approximating 84 million barrels. MidContinent production was lower than the prior-year quarter due to a maintenance turnaround at the Toledo refinery that extended from the end of March into mid-April.
RETAIL MARKETING
Retail Marketing earned $10 million in the second quarter of 2006 versus $7 million in the second quarter of 2005. The increase was primarily due to improved retail gasoline margins. Monthly gasoline and diesel throughput per company owned or leased outlet was approximately 3 percent higher than the second quarter of 2005.
CHEMICALS
Chemicals earned $8 million in the second quarter of 2006 versus $30 million in the prior-year period. The decrease in earnings was due primarily to lower margins for both phenol and polypropylene, partially offset by higher sales volumes, lower expenses and a $4 million deferred tax benefit recognized in the second quarter of 2006 as a result of a state law change. The average gross margin for phenol and related products was almost 6 cents per pound lower than the second quarter of 2005 largely due to weaker acetone and bisphenol-A markets. Polypropylene margins were slightly over 2 cents per pound lower than the year-ago period.
LOGISTICS
Earnings for the Logistics segment were $12 million in the second quarter versus $9 million in the second quarter of 2005. The increase was due largely to higher earnings attributable to Eastern pipeline operations and crude oil acquisition and marketing activities. Operating results from the Partnership's acquisitions completed in 2006 and 2005 also contributed to the increase. Partially offsetting these positive factors was Sunoco's reduced ownership in the Partnership subsequent to the public equity offerings in 2006 and 2005.
COKE
The Coke business earned $10 million in the second quarter of 2006 versus $13 million in the second quarter of 2005. The decrease was primarily due to a $4 million partial phase-out of tax credits which resulted from the high level of crude oil prices during the first half of 2006. Year-to-date, Sun Coke recorded only 61 percent of the benefit of the tax credits that otherwise would have been available without regard to the phase-out.
CORPORATE AND OTHER
Corporate administrative expenses were $11 million after tax in the current quarter versus $16 million in the comparable quarter last year. The decrease was largely due to lower accruals for performance-related incentive compensation.
Net financing expenses were $12 million after tax in the second quarter of 2006 versus $13 million in the second quarter of 2005. The decline was primarily due to higher interest income, partially offset by an increase in interest expense.
SIX MONTH RESULTS
Sunoco earned $505 million, or $3.80 per share of common stock on a diluted basis, for the first six months of 2006 versus $358 million, or $2.58 per share, in the comparable 2005 period. The increase was primarily due to higher wholesale fuels margins. Also contributing to the improvement in earnings were higher retail gasoline margins, a lower effective income tax rate and higher earnings from Sunoco's Logistics business. Partially offsetting these positive factors were higher expenses, including fuel charges; lower chemical margins; and lower production of refined products.
Sunoco, Inc., headquartered in Philadelphia, PA, is a leading manufacturer and marketer of petroleum and petrochemical products. With 900,000 barrels per day of refining capacity, over 4,700 retail sites selling gasoline and convenience items, approximately 5,400 miles of crude oil and refined product owned and operated pipelines and 38 product terminals, Sunoco is one of the largest independent refiner-marketers in the United States. Sunoco is a significant manufacturer of petrochemicals with annual sales of approximately five billion pounds, largely chemical intermediates used to make fibers, plastics, film and resins. Utilizing a unique, patented technology, Sunoco also has the capacity to manufacture over 2.5 million tons annually of high-quality metallurgical-grade coke for use in the steel industry.
Anyone interested in obtaining further insights into the second quarter's results can monitor the Company's quarterly teleconference call, which is scheduled for 3:00 p.m. ET on August 3, 2006. It can be accessed through Sunoco's Web site - http://www.SunocoInc.com. It is suggested that you visit the site prior to the teleconference to ensure that you have downloaded any necessary software.
Those statements made in this release that are not historical facts are forward-looking statements intended to be covered by the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although Sunoco believes that the assumptions underlying these statements are reasonable, investors are cautioned that such forward-looking statements are inherently uncertain and necessarily involve risks that may affect Sunoco's business prospects and performance causing actual results to differ from those discussed in the foregoing release. Such risks and uncertainties include, by way of example and not of limitation: general economic, financial and business conditions which could affect Sunoco's financial condition and results of operation; changes in competition and competitive practices, including the impact of foreign imports; effects of weather conditions and natural disasters on the Company's operating facilities and on product supply and demand; changes in refined product and chemical margins; variation in petroleum-based commodity prices and availability of crude oil and feedstock supply or transportation; effects of transportation disruptions; changes in the price differentials between light-sweet and heavy- sour crude oils; changes in the marketplace which may affect supply and demand for Sunoco's products; changes in the level of operating expenses; changes in product specifications; availability and pricing of ethanol; changes in the expected level of environmental capital, operating or remediation expenditures; age of, and changes in the reliability, efficiency and capacity of, the Company's operating facilities or those of third parties; effects of adverse events relating to the operation of the Company's facilities and to the transportation and storage of hazardous materials (including equipment malfunction, explosions, fires, spills, and the effects of severe weather conditions); risks related to labor relations and workplace safety; changes in applicable statutes and government regulations or their interpretations, including those relating to the environment and global warming; changes in tax laws or their interpretations, including pension funding requirements; ability to identify acquisitions, execute them under favorable terms and integrate them into the Company's existing businesses; ability to enter into joint ventures and other similar arrangements under favorable terms; delays and/or costs related to construction, improvements and/or repairs of facilities (including shortages of skilled labor, the issuance of applicable permits and inflation); nonperformance by or disputes with major customers, suppliers, dealers, distributors or other business partners; changes in financial markets impacting pension expense and funding requirements; political and economic conditions in the markets in which the Company, its suppliers and customers operate, including the impact of potential terrorist acts and international hostilities; military conflicts between, or internal instability in, one or more oil producing countries, governmental actions and other disruptions in the ability to obtain crude oil; and changes in the status of, or initiation of new, litigation, arbitration or other proceedings to which the Company is a party or liability resulting from such litigation, arbitration or other proceedings, including natural resource damage claims. These and other applicable risks and uncertainties have been described more fully in Sunoco's First Quarter 2006 Form 10-Q filed with the Securities and Exchange Commission on May 4, 2006 and in other periodic reports filed with the Securities and Exchange Commission. Sunoco undertakes no obligation to update any forward- looking statements in this release, whether as a result of new information or future events.
Sunoco, Inc.
2006 Second Quarter and Six-Month Financial Summary
(Unaudited)
Second Quarter 2006 2005
Revenues $10,590,000,000 $7,990,000,000
Net Income $426,000,000 $242,000,000
Net Income Per Share of
Common Stock*:
Basic $3.24 $1.77
Diluted $3.22 $1.75
Weighted-Average Number of Shares
Outstanding* (In Millions):
Basic 131.5 137.1
Diluted 132.2 138.0
Six Months
Revenues $19,183,000,000 $15,199,000,000
Net Income $505,000,000 $358,000,000
Net Income Per Share of
Common Stock*:
Basic $3.82 $2.60
Diluted $3.80 $2.58
Weighted-Average Number of Shares
Outstanding* (In Millions):
Basic 132.2 137.7
Diluted 132.9 138.5
*Share and per-share data presented for all periods reflect the effect of
a two-for-one stock split, which was effected in the form of a common
stock dividend distributed on August 1, 2005.
Sunoco, Inc.
Earnings Profile of Sunoco Businesses (after tax)
(Millions of Dollars, Except Per Share Amounts)
(Unaudited)
Three Months Ended
June 30
2006 2005 Variance
Refining and Supply $409 $212 $197
Retail Marketing 10 7 3
Chemicals 8 30 (22)
Logistics 12 9 3
Coke 10 13 (3)
Corporate and Other:
Corporate expenses (11) (16) 5
Net financing expenses and other (12) (13) 1
Consolidated net income $426 $242 $184
Net income per share of
common stock (diluted) $3.22 $1.75 $1.47
Sunoco, Inc.
Earnings Profile of Sunoco Businesses (after tax)
(Millions of Dollars, Except Per Share Amounts)
(Unaudited)
Six Months Ended
June 30
2006 2005 Variance
Refining and Supply $482 $320 $162
Retail Marketing 10 (1) 11
Chemicals 22 63 (41)
Logistics 18 12 6
Coke 24 23 1
Corporate and Other:
Corporate expenses (27) (32) 5
Net financing expenses and other (24) (27) 3
Consolidated net income $505 $358 $147
Net income per share of
common stock (diluted) $3.80 $2.58 $1.22
Sunoco, Inc.
Financial and Operating Statistics (Unaudited)
For the Three For the Six
Months Ended Months Ended
June 30 June 30
2006 2005 2006 2005
TOTAL REFINING AND SUPPLY
Income (Millions of
Dollars) $409 $212 $482 $320
Realized Wholesale
Margin* (Per Barrel of
Production Available
for Sale) $12.41 $7.87 $9.35 $6.92
Crude Inputs as Percent
of Crude Unit Rated
Capacity 96 99 94 98
Throughputs (Thousand
Barrels Daily):
Crude Oil 863.8 890.8 849.7 882.9
Other Feedstocks 76.7 63.3 72.7 58.0
Total Throughputs 940.5 954.1 922.4 940.9
Products Manufactured
(Thousand Barrels
Daily):
Gasoline 453.9 437.8 440.9 440.4
Middle Distillates 310.1 327.3 309.1 315.9
Residual Fuel 76.2 78.0 73.5 77.6
Petrochemicals 34.4 38.4 35.0 38.5
Lubricants 14.7 13.5 13.9 13.1
Other 83.9 95.0 84.7 92.2
Total Production 973.2 990.0 957.1 977.7
Less: Production Used
as Fuel in Refinery
Operations 44.9 48.9 44.6 47.8
Total Production
Available for Sale 928.3 941.1 912.5 929.9
*Wholesale sales revenue less related cost of crude oil, other feedstocks,
product purchases and terminalling and transportation divided by
production available for sale.
Sunoco, Inc.
Financial and Operating Statistics (Unaudited)
For the Three For the Six
Months Ended Months Ended
June 30 June 30
2006 2005 2006 2005
Northeast Refining*
Realized Wholesale Margin
(Per Barrel of Production
Available for Sale) $11.56 $7.55 $8.55 $6.84
Market Benchmark 6-3-2-1
(Per Barrel) $8.76 $6.06 $6.62 $5.29
Crude Inputs as Percent
of Crude Unit Rated
Capacity 98 100 95 99
Throughputs (Thousand
Barrels Daily):
Crude Oil 639.5 655.1 624.9 650.6
Other Feedstocks 69.2 56.5 64.7 51.7
Total Throughputs 708.7 711.6 689.6 702.3
Products Manufactured
(Thousand Barrels
Daily):
Gasoline 342.4 320.6 330.9 324.6
Middle Distillates 235.3 248.5 232.8 239.7
Residual Fuel 72.3 73.3 69.4 73.2
Petrochemicals 27.7 29.4 28.2 29.7
Other 54.2 65.4 52.9 61.6
Total Production 731.9 737.2 714.2 728.8
Less: Production Used
as Fuel in Refinery
Operations 34.1 36.8 33.3 36.1
Total Production
Available for
Sale 697.8 700.4 680.9 692.7
*Comprised of the Marcus Hook, Philadelphia and Eagle Point refineries.
MidContinent Refining*
Realized Wholesale Margin
(Per Barrel of Production
Available for Sale) $15.00 $8.80 $11.69 $7.14
Market Benchmark 3-2-1
(Per Barrel) $18.63 $9.94 $13.27 $8.09
Crude Inputs as Percent
of Crude Unit Rated
Capacity 92 96 92 95
Throughputs (Thousand
Barrels Daily):
Crude Oil 224.3 235.7 224.8 232.3
Other Feedstocks 7.5 6.8 8.0 6.3
Total Throughputs 231.8 242.5 232.8 238.6
*Comprised of the Toledo and Tulsa refineries.
Sunoco, Inc.
Financial and Operating Statistics (Unaudited)
For the Three For the Six
Months Ended Months Ended
June 30 June 30
2006 2005 2006 2005
MidContinent Refining (continued)
Products Manufactured
(Thousand Barrels
Daily):
Gasoline 111.5 117.2 110.0 115.8
Middle Distillates 74.8 78.8 76.3 76.2
Residual Fuel 3.9 4.7 4.1 4.4
Petrochemicals 6.7 9.0 6.8 8.8
Lubricants 14.7 13.5 13.9 13.1
Other 29.7 29.6 31.8 30.6
Total Production 241.3 252.8 242.9 248.9
Less: Production Used
as Fuel in Refinery
Operations 10.8 12.1 11.3 11.7
Total Production
Available for Sale 230.5 240.7 231.6 237.2
RETAIL MARKETING
Income (Loss)
(Millions of Dollars) $10 $7 $10 $(1)
Retail Margin* (Per Barrel):
Gasoline $3.53 $3.32 $3.21 $2.86
Middle Distillates $3.64 $3.34 $4.37 $4.27
Sales of Petroleum Products
(Thousand Barrels Daily):
Gasoline 308.9 305.4 298.3 297.6
Middle Distillates 41.4 42.2 43.9 45.8
350.3 347.6 342.2 343.4
Total Retail Gasoline
Outlets, End of Period 4,723 4,804 4,723 4,804
Gasoline and Diesel
Throughput per Company
Owned or Leased Outlet
(M Gal/Site/Month) 143 139 137 135
Convenience Stores:
Total Stores,
End of Period 736 742 736 742
Merchandise Sales
(M$/Store/Month) $82 $81 $76 $76
Merchandise Margin
(Company Operated)
(% of Sales) 27% 29% 28% 28%
*Retail sales price less related wholesale price and terminalling and
transportation costs per barrel. The retail sales price is the weighted-
average price received through the various branded marketing distribution
channels.
Sunoco, Inc.
Financial and Operating Statistics (Unaudited)
For the Three For the Six
Months Ended Months Ended
June 30 June 30
2006* 2005 2006* 2005
CHEMICALS
Income
(Millions of Dollars) $8 $30 $22 $63
Margin** (Cents per Pound):
All Products*** 8.8 12.8 9.8 12.7
Phenol and Related Products 7.1 12.8 8.1 11.9
Polypropylene*** 11.1 13.2 12.2 14.3
Sales (Millions of Pounds):
Phenol and Related Products 663 617 1,296 1,298
Polypropylene 569 583 1,131 1,116
Other 21 16 42 49
1,253 1,216 2,469 2,463
*The income and margin data reflect a new pricing formula for 2006 sales
of phenol to Honeywell International Inc. based upon the outcome of
arbitration decisions in the third quarter of 2005 and first quarter of
2006.
**Wholesale sales revenue less cost of feedstocks, product purchases and
related terminalling and transportation divided by sales volumes.
***The polypropylene and all products margins include the impact of a
long-term supply contract with Equistar Chemicals, L.P. which is priced on
a cost-based formula that includes a fixed discount.
LOGISTICS*
Income
(Millions of Dollars) $12 $9 $18 $12
Pipeline and Terminal
Throughput (Thousand
Barrels Daily)*:
Unaffiliated Customers 1,001 820 1,019 826
Affiliated Customers 1,659 1,632 1,639 1,641
2,660 2,452 2,658 2,467
*Excludes joint-venture operations.
COKE*
Income
(Millions of Dollars) $10 $13 $24 $23
Coke Production
(Thousands of Tons) 627 625 1,258 1,128
Coke Sales
(Thousands of Tons) 632 621 1,279 1,118
*Includes amounts attributable to the Haverhill facility, which commenced
operations in March 2005.
Sunoco, Inc.
Financial and Operating Statistics (Unaudited)
For the Three For the Six
Months Ended Months Ended
June 30 June 30
2006 2005 2006 2005
CAPITAL EXPENDITURES
(Millions of Dollars)
Refining and Supply $179 $202 $309 $351
Retail Marketing 24 36 36 47
Chemicals 16 * 10 27 * 28
Logistics 36 11 52 ** 19
Coke 2 3 5 25
$257 $262 $429 $470
* Excludes a $14 million purchase price adjustment to the 2001 Aristech
Chemical Corporation acquisition attributable to an earn-out payment
made in April 2006. The earn out, which relates to 2005, was due to
realized margins for phenol exceeding certain agreed-upon threshold
amounts.
** Excludes the acquisition of two separate crude oil pipeline systems
and related storage facilities located in Texas, one from Alon USA
Energy, Inc. for $68 million and the other from Black Hills Energy,
Inc. for $41 million.
DEPRECIATION, DEPLETION AND
AMORTIZATION (Millions of Dollars)
Refining and Supply $55 $47 $111 $96
Retail Marketing 25 25 50 52
Chemicals 19 17 37 35
Logistics 10 8 19 16
Coke 5 5 9 8
$114 $102 $226 $207
Sunoco, Inc.
Earnings Profile of Sunoco Businesses (after tax)
(Millions of Dollars, Except Per Share Amounts)
(Unaudited)
2005
1st 2nd 3rd 4th Total
Refining and Supply $108 $212 $341 $286 $947
Retail Marketing (8) 7 6 25 30
Chemicals 33 30 23 8 94
Logistics 3 9 7 3 22
Coke 10 13 15 10 48
Corporate and Other:
Corporate expenses (16) (16) (25) (27) (84)
Net financing expenses
and other (14) (13) (10) (8) (45)
116 242 357 297 1,012
Special items -- -- (28) (10) (38)
Consolidated net income $116 $242 $329 $287 $974
Earnings (loss) per share
of common stock (diluted):
Income before
special items $.83 $1.75 $2.60 $2.19 $7.36
Special items -- -- (.21) (.07) (.28)
Net income $.83 $1.75 $2.39 $2.12 $7.08
Sunoco, Inc.
Earnings Profile of Sunoco Businesses (after tax)
(Millions of Dollars, Except Per Share Amounts)
(Unaudited)
2006
1st 2nd
Refining and Supply $73 $409
Retail Marketing -- 10
Chemicals 14 8
Logistics 6 12
Coke 14 10
Corporate and Other:
Corporate expenses (16) (11)
Net financing expenses and other (12) (12)
79 426
Special items -- --
Consolidated net income $79 $426
Earnings per share of common stock (diluted):
Income before special items $.59 $3.22
Special items -- --
Net income $.59 $3.22
Sunoco, Inc.
Consolidated Statements of Income
(Millions of Dollars)
(Unaudited)
2005
1st 2nd 3rd 4th Total
REVENUES
Sales and other operating
revenue (including
consumer excise taxes) $7,191 $7,970 $9,345 $9,248 $33,754
Interest income 3 3 6 11 23
Other income (loss), net 15 17 (56) 11 (13)
7,209 7,990 9,295 9,270 33,764
COSTS AND EXPENSES
Cost of products sold
and operating expenses 6,059 6,581 7,702 7,686 28,028
Consumer excise taxes 585 640 675 688 2,588
Selling, general and
administrative expenses 209 225 242 270 946
Depreciation, depletion
and amortization 105 102 109 113 429
Payroll, property
and other taxes 36 28 33 27 124
Interest cost and debt expense 23 23 25 23 94
Interest capitalized (6) (6) (8) (5) (25)
7,011 7,593 8,778 8,802 32,184
Income before
income tax expense 198 397 517 468 1,580
Income tax expense 82 155 188 181 606
Net income $116 $242 $329 $287 $974
Sunoco, Inc.
Consolidated Statements of Income
(Millions of Dollars)
(Unaudited)
2006
1st 2nd
REVENUES
Sales and other operating revenue (including
consumer excise taxes) $8,569 $10,575
Interest income 10 8
Other income, net 14 7
8,593 10,590
COSTS AND EXPENSES
Cost of products sold and operating expenses 7,454 8,858
Consumer excise taxes 628 663
Selling, general and administrative expenses 210 210
Depreciation, depletion and amortization 112 114
Payroll, property and other taxes 34 31
Interest cost and debt expense 26 27
Interest capitalized (1) (4)
8,463 9,899
Income before income tax expense 130 691
Income tax expense 51 265
Net income $79 $426
Sunoco, Inc.
Consolidated Balance Sheets
(Millions of Dollars)
(Unaudited)
At At
June 30 December 31
2006 2005
ASSETS
Current Assets
Cash and cash equivalents $600 $919
Accounts and notes receivable, net 2,363 1,754
Inventories 1,194 799
Deferred income taxes 216 215
Total Current Assets 4,373 3,687
Investments and long-term receivables 127 143
Properties, plants and equipment, net 5,969 5,658
Prepaid retirement costs 12 12
Deferred charges and other assets 449 431
Total Assets $10,930 $9,931
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued liabilities $4,186 $3,695
Current portion of long-term debt 195 177
Taxes payable 434 338
Total Current Liabilities 4,815 4,210
Long-term debt 1,243 1,234
Retirement benefit liabilities 537 563
Deferred income taxes 895 817
Other deferred credits and liabilities 400 409
Minority interests 745 647
Shareholders' equity 2,295 2,051
Total Liabilities and Shareholders' Equity $10,930 $9,931
Sunoco, Inc.
Consolidated Statements of Cash Flows
(Millions of Dollars)
(Unaudited)
For the Six Months
Ended June 30
2006 2005
INCREASES (DECREASES) IN CASH AND CASH EQUIVALENTS
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $505 $358
Adjustments to reconcile net income to net
cash provided by operating activities:
Phenol supply contract dispute payment (95) --
Proceeds from power contract restructuring -- 48
Depreciation, depletion and amortization 226 207
Deferred income tax expense 75 25
Payments in excess of expense for retirement
plans (26) (5)
Changes in working capital pertaining
to operating activities, net of effect
of acquisitions (343) (74)
Other 23 12
Net cash provided by operating activities 365 571
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (429) (470)
Acquisitions (123) --
Proceeds from divestments 28 21
Other (9) 5
Net cash used in investing activities (533) (444)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from issuance of long-term debt 301 --
Repayments of long-term debt (275) (13)
Net proceeds from issuance of Sunoco Logistics
Partners L.P. limited partnership units 110 99
Cash distributions to investors in cokemaking
operations (7) (11)
Cash distributions to investors in Sunoco
Logistics Partners L.P. (22) (12)
Cash dividend payments (60) (48)
Purchases of common stock for treasury (198) (131)
Proceeds from issuance of common stock under
management incentive and employee option plans 1 6
Other (1) (5)
Net cash used in financing activities (151) (115)
Net increase (decrease) in cash and cash
equivalents (319) 12
Cash and cash equivalents at beginning of period 919 405
Cash and cash equivalents at end of period $600 $417
Source: prnewswire
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