Sunoco Logistics Partners L.P. (NYSE: SXL), headquartered in Philadelphia, is a master limited partnership that owns and operates a logistics business consisting of a geographically diverse portfolio of complementary pipeline, terminalling and crude oil acquisition and marketing assets.
Operating income for the second quarter 2012 increased to a record level compared to the prior year period due primarily to expanded crude oil volumes and margins which were the result of expansion in our crude oil trucking fleet and market related opportunities in West Texas. Operating results were further improved by increased volumes from the assets acquired from Texon L.P. in the third quarter of 2011.
Sunoco Logistics Partners net income attributable to partners for the second quarter 2012 of $152 million ($1.28 per unit diluted), compared with $94 million ($0.80 per unit diluted) for the second quarter 2011. Additionally, Sunoco Partners LLC, the general partner of the Partnership, declared a cash distribution for the second quarter 2012 of $0.47 per common unit ($1.88 annualized). This represents a 10 percent increase over the first quarter 2012 cash distribution of $0.4275 per common unit ($1.71 annualized) and a 16 percent increase over the second quarter 2011 distribution of $0.4050 per common unit ($1.62 annualized). Sunoco Logistics Partners has a current dividend yield of 3.95% and a 5-year average annual dividend growth rate of 10.98%.
Sunoco Logistics Partners has several projects in process to increase their fee-based services in 2013. Permian Express Phase I, a crude oil pipeline project currently in open season, provides West Texas producers and Gulf Coastrefiners with a fast and flexible crude oil solution. It is expected to be operational in the first quarter of 2013 at an initial capacity of 90,000 barrels per day, with full capacity of 150,000 barrels per day on-line in the second half of 2013.
Allegheny Access, a refined products pipeline project currently in open season, will transport refined products from the Midwest to markets in eastern Ohio and western Pennsylvania. It is expected to be operational in the first half of 2014 with an initial capacity of 85,000 barrels per day and will be expandable to 110,000 barrels per day.
Sunoco Logistics Partners has a projected 5-year EPS growth rate of 20%. Sunoco Logistics Partners has an equity summary score of 9.8 out of 10 for a Very Bullish Outlook. Sunoco Logistics Partners has a 12-month target price of $52.