Sunoco Inc. (NYSE: SUN) is an American petroleum and petrochemical manufacturer headquartered in Philadelphia, Pennsylvania, United States, formerly known as Sun Company Inc. (1886–1920 and 1976–1998) and Sun Oil Co. (1920–1976).
Sunoco is one of the largest gasoline distribution companies in the United States, with Sunoco brand gasoline being sold in over 4,700 outlets;just over a third of these outlets are Sunoco gas stations and convenience stores, located in 26 states.
Sunoco is a Fortune 100 Company. It is also the biggest company based in Philadelphia and the 2nd biggest in Pennsylvania behind AmerisourceBergen. Its headquarters are located in the BNY Mellon Center in Center City Philadelphia.
In Canada, Sunoco was operated by Suncor Energy, a separate Canadian entity. In 2010, all Sunoco outlets were converted to Petro-Canada outlets.

Sunoco, Inc. is one of the largest petroleum refiner-marketers in the United States. The company operates five refineries in the United States with total crude oil processing capacity of about 730,000 barrels per day. In the marketing arena, Sunoco sells gasoline under the Sunoco brand in 17 states, principally in the Northeast and Midwest. Other company activities include the worldwide sale of lubricants and petrochemicals, the operation of pipelines and terminals in the United States, and the production of metallurgical-grade coke for the steel industry. In the late 20th century, the company underwent a major restructuring, which included the divestment of its exploration and production operations, and the company changed its name from Sun Company, Inc. to Sunoco, Inc. in late 1998 as one of the final steps in that process.
Sunoco, Inc. (Sunoco), incorporated in 1971, is a holding company that, through its subsidiaries, operates as a petroleum refiner and marketer, and chemicals manufacturer with interests in logistics and coke making. Sunoco’s petroleum refining and marketing operations include the manufacturing and marketing of a range of petroleum products, including fuels and some petrochemicals. Sunoco’s chemical operations comprise the manufacturing, distribution and marketing of commodity and intermediate petrochemicals. The petroleum refining and marketing, chemicals and logistics operations are conducted principally in the eastern half of the United States. Sunoco’s coke making operations are conducted in Virginia, Indiana, Ohio, Illinois, and Vitoria, Brazil. The Company’s operations are organized into five business segments: Refining and Supply, Retail Marketing, Chemicals, Logistics and Coke. It also has a holding company and a professional services group. The professional services group consists of a number of staff functions. In April 2010, Sunoco, Inc. sold its subsidiary Sunoco Chemicals, Inc., comprising its polypropylene business, to Braskem S.A.
Refining and Supply
The Refining and Supply business manufactures petroleum products, including gasoline, middle distillates (mainly jet fuel, heating oil and diesel fuel) and residual fuel oil, as well as commodity petrochemicals, including refinery-grade propylene, benzene, cumene, toluene and xylene at its Marcus Hook, Philadelphia and Toledo refineries. The Company sells these products to other Sunoco business units, and to wholesale and industrial customers. During the year ended December 31, 2009, Sunoco permanently shut down all process units at the Eagle Point refinery. On June 1, 2009, Sunoco completed the sale of its Tulsa refinery to Holly Corporation.
The Philadelphia and Marcus Hook refineries process crude oils supplied from foreign sources, while the Toledo refinery processes domestic and Canadian crude oils, as well as crude oils supplied from other foreign sources. The foreign crude oil processed at the Company’s Northeast refineries is delivered utilizing ocean-going tankers and coastal distribution tankers, and barges that are owned and operated by third parties. Approximately 25% of the Company’s ocean-going tanker marine transportation requirements pertaining to its crude supply in the Northeast are met through time charters. The Company also processes limited amounts of discounted high-acid sweet crude oils in its Northeast refineries. During 2009, approximately 61,000 barrels per day of such crude oils were processed.
During 2009, approximately 20% of Sunoco’s crude oil supply (excluding the amount pertaining to the Tulsa refinery) came from Nigeria. Refining and Supply sells fuels through wholesale and industrial channels principally in the Northeast and upper Midwest, and sells petrochemicals on a worldwide basis. Finished products are delivered to customers via the pipeline and terminal network owned and operated by Sunoco Logistics Partners L.P. (the Partnership), as well as by third-party pipelines, and barges and by truck and rail.
Retail Marketing
The Retail Marketing business consists of the retail sale of gasoline and middle distillates, and the operation of convenience stores in 23 states, primarily on the East Coast and in the Midwest region of the United States. The highest concentrations of outlets are located in Connecticut, Florida, Maryland, Massachusetts, Michigan, New Jersey, New York, Ohio, Pennsylvania and Virginia. Retail Marketing has a portfolio of outlets that differ in various ways, including product distribution to the outlets; site ownership and operation, and types of products and services provided. As of December 31, 2009, the Company operated a network of 4,711 retail outlets in 23 states primarily on the East Coast and in the Midwest United States.
Direct outlets may be operated by Sunoco or by an independent dealer, and are sites at which fuel products are delivered directly to the site by Sunoco trucks or by contract carriers. The Company or an independent dealer owns or leases the property. These sites may be traditional locations that sell almost exclusively fuel products under the Sunoco and Coastal brands, or may include APlus convenience stores, or Ultra Service Centers that provide automotive diagnostics and repair. Included among Retail Marketing’s outlets at December 31, 2009, were 53 outlets on turnpikes and expressways in Pennsylvania, New Jersey, New York, Maryland and Delaware. Of these outlets, 37 were Company-operated sites providing gasoline, diesel fuel and convenience store merchandise. Distributor outlets are sites, in which the distributor takes delivery of fuel products at a terminal where branded products are available. Sunoco does not own, lease or operate these locations.
During the year ended December 31, 2009, the Company continued its Retail Portfolio Management program, which selectively reduced its invested capital in Company-owned or leased sites, while retaining most of the gasoline sales volumes attributable to the divested sites. As of December 31, 2009, there were approximately 90 sites in the program, of which approximately 25 are Company-operated locations. Branded fuels sales (including middle distillates) averaged 321.2 thousand barrels per day in 2009. Sunoco’s APlus convenience stores are located principally in Florida, New York and Pennsylvania. These stores supplement sales of fuel products with a mix of merchandise, such as groceries, fast foods, beverages and tobacco products. During 2009, Sunoco sold its retail heating oil and propane distribution business.
Chemicals
The Chemicals business manufactures, distributes and markets commodity and intermediate petrochemicals. The chemicals consist of aromatic derivatives (phenol, acetone, bisphenol-A and other phenol derivatives) and polypropylene. Phenol and acetone are produced at facilities in Philadelphia, Pennsylvania and Haverhill, Ohio, and polypropylene is produced at facilities in LaPorte, Texas; Neal, West Virginia, and Marcus Hook, Pennsylvania. On February 1, 2010, Sunoco entered into an agreement to sell its polypropylene business to Braskem S.A. Included in the sale are Sunoco’s polypropylene manufacturing facilities in LaPorte, Neal and Marcus Hook, which have the combined capacity to produce 2.15 billion pounds of polypropylene annually. Sunoco will retain its phenol and derivatives business.
Sunoco has formed a limited partnership with Equistar Chemicals, L.P. (Equistar) involving Equistar’s ethylene facility in LaPorte, Texas. Equistar is a wholly owned subsidiary of LyondellBasell Industries. Under the terms of the partnership agreement, the partnership has agreed to provide Sunoco with propylene for 15 years. The limited partnership and the supply contract are included in the polypropylene assets, which are being sold to Braskem S.A. Sunoco’s Philadelphia phenol facility has the capacity to produce annually more than one billion pounds of phenol and 700 million pounds of acetone. Under a long-term contract, the Chemicals business supplies Honeywell International Inc. (Honeywell) with approximately 745 million pounds of phenol annually. In March 2009, Sunoco permanently shut down its Bayport, Texas, polypropylene plant. Petrochemical products produced by the Chemicals business are distributed and sold on a worldwide basis with most of the sales made to customers in the United States.
Logistics
The Logistics business, which is conducted through the Partnership, operates refined product and crude oil pipelines and terminals, and conducts crude oil acquisition and marketing activities primarily in the Northeast, Midwest and South Central regions of the United States. The Logistics business also has an ownership interest in several refined product and crude oil pipeline joint ventures. As of February 2010, the Company had a 33% interest in the Partnership. Pipeline operations are primarily conducted through the Partnership’s pipelines, and also through other pipelines, in which the Partnership has an ownership interest.
Refined product pipeline operations, located primarily in the Northeast, Midwest and South Central United States, transport gasoline, jet fuel, diesel fuel, home heating oil and other products for Sunoco’s other businesses, and for third-party integrated petroleum companies, independent refiners, independent marketers and distributors. Crude oil pipeline operations, located in Texas, Oklahoma and Michigan, transport foreign crude oil received at the Partnership’s Nederland, Texas, and Marysville, Michigan terminals, and crude oil produced primarily in Oklahoma and Texas to refiners (including Sunoco’s Toledo refinery) or to local trade points.
In 2009, the Partnership acquired Excel Pipeline LLC, the owner of a crude oil pipeline, which services Gary Williams’ Wynnewood, Oklahoma refinery, and a refined products terminal in Romulus, Michigan. At December 31, 2009, the Partnership owned and operated approximately 3,850 miles of crude oil pipelines and approximately 2,200 miles of refined product pipelines. In 2009, crude oil and refined product shipments on these pipelines totaled 21.4 and 21.1 billion barrel miles, respectively. Product terminalling operations include 41 terminals in the Northeast, Midwest and South Central United States, which receive refined products from pipelines and distribute them to Sunoco, and to third parties, who in turn make deliveries to end users, such as retail outlets. Certain product terminals also provide ethanol blending and other product additive services. During 2009, throughput at these product terminals totaled 462 thousand barrels daily.
Coke
SunCoke Energy, Inc., through its affiliates (individually and collectively, SunCoke Energy), owns and operates metallurgical coke plants located in Vansant, Virginia (Jewell), East Chicago, Indiana (Indiana Harbor), Franklin Furnace, Ohio (Haverhill) and Granite City, Illinois (Granite City), and metallurgical coal mines located in Virginia and West Virginia. SunCoke Energy is also the operator of a metallurgical coke plant in Vitoria, Brazil (Vitoria). Aggregate nominal coke production capacity from the plants in the United States approximates 3.67 million tons per year, while production capacity from the Vitoria facility approximates 1.7 million tons per year.
The Jewell plant can produce approximately 700 thousand tons per year, the Indiana Harbor plant can produce approximately 1.22 million tons per year, the Haverhill plant can produce approximately 1.1 million tons per year and the Granite City plant can produce approximately 650 thousand tons per year. In addition, the Indiana Harbor plant produces heat as a by-product of SunCoke Energy’s process that is used by a third party to produce electricity; the Haverhill facility produces steam that is sold to Sunoco’s Chemicals business and electricity from its associated cogeneration power plant for sale in the regional power market, and the Granite City facility produces steam that is sold to a third party. Substantially all coke sales from the Indiana Harbor and Jewell plants, and 50% of the production from the Haverhill plant are made pursuant to long-term contracts with affiliates of ArcelorMittal.

Beginning in 1988, Sun entered a ten-year period marked by major restructuring initiatives. With oil prices on the decline in the late 1980s, Sun laid off employees and made the decision to exit from domestic oil and gas exploration and production. In November 1988 Sun spun off to its shareholders its subsidiary Sun Exploration and Production Company. As a result, McClements was once again appointed president of Sun, while Hauptfuhrer became chairman and CEO of the spinoff, which was soon renamed Oryx Energy Company. Simultaneous with these developments, Sun acquired Atlantic Petroleum Corporation for $513 million, which brought to Sun another refinery, a network of more than 1,000 Atlantic service stations (which were soon rebranded under the Sunoco name), and a pipeline system.
In early 1991 Robert H. Campbell was appointed president and COO, with McClements remaining chairman and CEO. Later that year, another restructuring was begun, this one resulting in 1,000 job cuts and $100 million per year in pretax savings from streamlined operations. With the collapse of the real estate market, Sun also decided to divest its real estate business, Radnor Corp., a process that dragged on through the end of the decade.
By early 1992 Campbell was chairman, CEO, and president of Sun, following McClements' retirement. That year, Sun formally adopted a new strategic direction, which focused on value-added businesses: branded gasoline marketing, lubricants, chemicals, and logistics. Also in 1992 the company began to reduce its ownership interest in Suncor Inc., a Canadian affiliate that included the oil sands business. An initial public offering in March 1992 reduced Sun's stake from 75 to 68 percent; in May 1993 the stake was reduced again, to 55 percent, through a sale to a group of underwriters. Also in 1993 the company sold Cordero Mining Co., operator of a coal mine in Wyoming, to Kennecott Coal Company for $120.5 million.
In August 1994 Sun spent about $170 million to acquire a 177,000-barrels-per-day refinery in Philadelphia from Chevron U.S.A. Inc. This refinery was immediately adjacent to the refinery Sun had acquired with the 1988 acquisition of Atlantic Petroleum, and the two were combined into a single, more efficient refining complex. In 1995 this complex was linked directly to Sun's Marcus Hook Refinery via a 19-mile inter-refinery pipeline. In June 1995 Sun sold its remaining 55 percent interest in Suncor to a group of Canadian underwriters for $855 million.
Further restructuring moves came in 1996 as Sun continued to focus on the downstream side of the business. In September 1996 Sun sold its international oil and gas production business to Agip (U.K.) Limited, a part of Italy's ENI S.p.A., for $260 million in cash, thereby completing its exit from upstream activities. Just two months later, Sun bolstered its lubricants business through the purchase of the Kendall and Amalie lubricants unit of Witco Corporation. In December 1996 Sun departed from company tradition when it hired an outsider as company president for the first time. John G. Drosdick--who had previously served as president of two other major petroleum marketing firms in the United States, Ultramar Corporation and Tosco Refining Company--was named Sun president and COO, with Campbell retaining the chairman and CEO positions.
In 1997 Sun continued to restructure, particularly working to modernize its refineries and make them more efficient. The company was able by 1999 to cut its costs to refine a barrel of crude oil from $3.68 to $2. Sun appeared to be turning the corner on profitability as net income increased from $263 million in 1997 to $280 million in 1998, despite a revenue decline from $10.53 billion to $8.58. In a move perhaps symbolizing the end of the decade-long restructuring, the company changed its name in November 1998 to Sunoco, Inc., thereby adopting the well-known brand name. The company also made its first alterations to the Sunoco logo since 1954. With a new corporate image, heightened cost-consciousness, and a sharp focus on the downstream, Sunoco was well-prepared to defend its position as one of the largest independent U.S. refinery-marketers well into the 21st century.
Principal Subsidiaries: Helios Capital Corporation; Marine Investment Company of Delaware; Mascot Petroleum Company, Inc.; Mohawk Valley Oil, Inc.; Radnor Corporation; Sun Alternate Energy Corporation; Sun Altantic Refining and Marketing Company; Sun Canada Inc.; Sun Coal & Coke Company; Sun Coke Company; Sun Executive Services Company; Sun Geologic and Seismic, Inc.; Sun Ocean Ventures, Inc.; Sun Oil Argentina Limited; Sun Oil Argentina Limited S.A.; Sun Oil Company (U.K.) Ltd.; Sun Oil Export Company; Sun Oil International, Inc.; Sun Oil Shabwa Yemen Limited; Sun Oil (Thailand) Limited; Sun Oil Trading Company; Sun Pipe Line Company of Delaware; Sun Services Corporation; Sun Ship, Inc.; Sun-Del Services, Inc.; Sunoco Overseas, Inc.; The Claymont Investment Company; Triad Carriers, Inc.
Principal Operating Units: Sun Northeast Refining; Sunoco Northeast Marketing; Sunoco Chemicals; Sun Lubricants; Sunoco MidAmerica Marketing & Refining; Sunoco Logistics; Sun Coke.

OVERALL
Beta: 0.53
Market Cap (Mil.): $4,906.02
Shares Outstanding (Mil.): 121.11
Annual Dividend: 0.60
Yield (%): 1.48
FINANCIALS
SUN Industry Sector
P/E (TTM): 24.96 19.18 11.76
EPS (TTM): 145.03 -- --
ROI: 5.32 0.96 4.62
ROE: 6.92 1.77 6.06

Statistics:
Public Company
Incorporated: 1890 as Sun Oil Company
Employees: 10,900
Sales: $8.58 billion (1998)
Stock Exchanges: New York Philadelphia
Ticker Symbol: SUN
NAIC: 211111 Crude Petroleum & Natural Gas Extraction; 211112 Natural Gas Liquid Extraction; 32411 Petroleum Refineries; 48611 Pipeline Transportation of Crude Oil; 48691 Pipeline Transportation of Refined Petroleum Products; 42271 Petroleum Bulk Stations & Terminals; 42272 Petroleum & Petroleum Products Wholesalers; 23311 Land Subdivision & Land Development; 483113 Coastal & Great Lakes Freight Transportation


Name Age Since Current Position
Lynn Elsenhans 54 2009 Chairman of the Board, President, Chief Executive Officer
Brian MacDonald 45 2009 Chief Financial Officer, Senior Vice President
Stacy Fox 56 2010 Senior Vice President, General Counsel
Robert Owens 57 2001 Senior Vice President - Marketing
Michael Thomson 52 2008 Senior Vice President; President of SunCoke Energy, Inc.
Dennis Zeleny 55 2009 Senior Vice President, Chief Human Resources Officer
Anne-Marie Ainsworth 54 2009 Senior Vice President - Refining
Frederick Henderson 52 2010 Senior Vice President
Joseph Krott 47 1998 Comptroller
James Kaiser 68 1993 Independent Director
Ursula Fairbairn 68 2001 Independent Director
John Rowe 65 2003 Independent Director
John Wulff 62 2004 Independent Director
John Jones 60 2009 Presiding Independent Director
Gary Edwards 69 2008 Independent Director
Chris Casciato 52 2010 Independent Director

Address:
Ten Penn Center
1801 Market Street
Philadelphia, Pennsylvania 19103-1699
U.S.A.
 
Top