Many of our investors and potential investors have similar questions about Sunoco Logistics, our affiliates and other more specific financial information. We have created this section to provide easy-to-access answers to the most common of those questions.
If you do not find an answer to a question you have, or would like more information than we have provided, please contact us and we will provide all the details we can.
To make this section easier to navigate, just click on any of the individual questions articulated below:
- What is a Master Limited Partnership (MLP)?
- Who owns Sunoco Logistics?
- Where will growth occur within Sunoco Logistics?
- What is a distribution payment?
- When will the distribution be paid?
- What are the tax implications of the distribution?
- What information will I receive for income tax reporting purposes?
- Does Sunoco Logistics have a Distribution Reinvestment Plan?
- How can I buy units of Sunoco Logistics?
- Who is Sunoco Logistics' transfer agent and how does a registered unitholder contact the agent for account information?
- How can I communicate directly with Sunoco Logistics?
1. What is a Master Limited Partnership (MLP)?
An MLP is a publicly traded partnership. The nature of a partnership provides for the "pass through" of income to its partners. This essentially avoids double taxation on profits often paid by corporations, which pay corporate income tax in addition to its shareholders paying taxes on dividends. Individual investors buy ownership interests, or units, in the partnership similar to purchasing shares of stock in a corporation.
2. Who owns Sunoco Logistics?
Sunoco, Inc. owns 33.8% of Sunoco Logistics through a 31.8% interest in the Limited Partner units, and a 2% General Partner interest. Individual unitholders own the remaining 66.2% interest.
3. Where will growth occur within Sunoco Logistics?
Sunoco Logistics plans to grow the company both organically, as well as through acquisitions. We plan to grow organically by increasing the volume of crude oil and refined product shipped through our pipelines, by building new or expanding the size of our existing pipelines, and by expanding and adding additional tankage at our terminals. We will also pursue accretive acquisitions that are synergistic with our existing asset base, or which result in either geographical or product diversification into new regions or into related but new areas of business. Also, Sunoco, Inc. has agreed not to compete with Sunoco Logistics in the areas of pipelines, terminalling, and storage as long as it controls the General Partner interest. See news releases for any recent acquisitions or expansions.
4. What is a distribution payment?
A distribution is similar to a dividend that you would receive from a corporation. A distribution represents the cash payment made to unitholders on a quarterly basis. See our distribution history for past distribution payments made.
5. When will the distribution be paid?
Cash distributions are to be paid no later than 45 days after the end of each calendar quarter, and therefore will be paid in mid- May, August, November, and February of each year.
6. What are the tax implications of the distribution?
Sunoco Logistics will not pay any federal income tax. This allows for a higher potential cash flow payout to unitholders. Instead, each unitholder will be required to report on his or her income tax return his share of our income, gains, losses, and deductions without regard to whether corresponding cash distributions are received. As a result, a unitholder's share of taxable income, and possibly the income tax payable by the unitholder with respect to that income may exceed the cash actually distributed to that unitholder. Since MLPs generally pay more cash distributions than the amount of taxable income allocated, the tax basis of the unitholder is decreased by the difference between total cash received and taxable income reported. Cash distributions will become taxable if the unitholder's cost basis is reduced to zero. It is the responsibility of each unitholder to investigate the legal and tax consequences under the law of pertinent states and localities of his or her investment in Sunoco Logistics.
7. What information will I receive for income tax reporting purposes?
Sunoco Logistics will provide its unitholders with a Schedule K-1 during the latter part of February for the prior tax year.
8. Does Sunoco Logistics have a Distribution Reinvestment Plan?
No, Sunoco Logistics does not have a Distribution Reinvestment Plan.
9. How can I buy units of Sunoco Logistics?
A potential unitholder can go through a broker to purchase units.
10. Who is Sunoco Logistics' transfer agent and how does a registered unitholder contact the agent for account information?
Sunoco Logistics is not able to make address or name changes, confirm holdings or transactions, or perform other administrative tasks affecting the accounts of either registered or non-registered owners of Sunoco Logistics. To make these changes or to make other inquiries please contact our transfer agent.
11. How can I communicate directly with Sunoco Logistics?
Sunoco Logistics encourages questions and discussions with all of its unitholders and potential investors. Please contact us at your convenience.
If you have any other questions, please contact Investor Relations.