Sunoco Logistics: A Good Long-Term Play?
By Sol Palha:Sunoco Logistics Partners L.P. (SXL) owns and operates a logistics business, consisting of a geographically diverse portfolio of complementary pipeline, terminalling, and crude oil acquisition and marketing assets. The Company is engaged in the transport, terminalling and storage of refined products and crude oil and the purchase and sale of crude oil in 17 states located in the northeast, midwest and southwest United States. Sunoco, Inc., and it's wholly owned subsidiaries, including Sunoco, Inc. (R&M) (collectively Sunoco), own approximately 31% of its partnership interests, including a 2% general partner interest. Sunoco accounted for approximately 14% of its total revenues during the year ended December 31, 2010. The Company operates in three segments: Refined Products Pipeline System, Terminal Facilities and Crude Oil Pipeline System. In October 2010, it acquired a terminal located in Bay City, Texas and a terminal and pipeline segment located in Big Sandy, Texas.
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