PHILADELPHIA, Jan. 13 /PRNewswire-FirstCall/ -- Sunoco, Inc. said today
that it has closed its previously announced acquisition of the Eagle Point
refinery in Westville, NJ from El Paso Corporation. The purchase price was
$111 million plus certain assumed liabilities and $138 million for inventories
at closing. The acquisition increases Sunoco's total refinery processing
capacity by 20 percent to 880,000 barrels per day.
(Logo: http://www.newscom.com/cgi-bin/prnh/19981105/PHTH006 )
Sunoco expects the transaction will be significantly accretive to
earnings. It estimates the Eagle Point refinery should earn approximately
$65 million after-tax annually based on average 2000-03 refining margins,
including immediate Sunoco synergies of approximately $30 million pre tax.
Tier II regulatory capital spending requirements for gasoline and diesel is
estimated at $100 million for the facility.
Sunoco also announced today that it expected fourth-quarter 2003 net
income would be in the range of $.50 to $.60 per share. Results for the
quarter were negatively impacted by significant planned maintenance at its
Philadelphia, PA refinery and weakening margins at the end of the quarter.
Results also included certain charges for environmental incidents that
occurred in prior years. The company's actual results will be reported and
further detailed on January 22, 2004.
"We are pleased to have completed the Eagle Point refinery acquisition,"
said Sunoco Chairman and Chief Executive Officer John G. Drosdick. "This
facility is a logical and low-cost addition to our Northeast Refining complex.
As part of our refining system, Eagle Point offers significant synergy and
improvement opportunities both immediate and longer-term. We are ready to
integrate Eagle Point into Sunoco and expect it to be a significant
contributor in 2004 and beyond."
The company will hold a conference call on Wednesday, January 14 at
10:00AM ET to discuss the Eagle Point acquisition. Those wishing to listen
can access the call through Sunoco's Web site at http://www.SunocoInc.com. A replay
will be available for ten days beginning approximately one hour following the
completion of the call. A number of presentation slides will accompany the
audio portion of the call and will be available to be viewed and printed
shortly before the call begins.
Individuals wishing to listen to the call on the company's Web site will
need Windows Media Player(TM), which can be downloaded free of charge from
Microsoft or from Sunoco's Conference Call page. To view and print the
slides, you will need the Acrobat Reader(TM), which can be downloaded free of
charge from Adobe or from Sunoco's Conference Call page.
Sunoco, Inc., headquartered in Philadelphia, PA, is a leading manufacturer
and marketer of petroleum and petrochemical products. With 880,000 barrels
per day of refining capacity, over 4,600 retail sites selling gasoline and
convenience items, interests in almost 11,000 miles of domestic crude oil and
refined product pipelines and 34 product terminals, Sunoco is one of the
largest independent refiner-marketers in the United States. Sunoco is a
growing force in petrochemicals with approximately six billion pounds of
annual sales, largely chemical intermediates used in the manufacture of
fibers, plastics, film and resins. Utilizing a proprietary technology, Sunoco
also manufactures two million tons annually of high-quality blast furnace coke
for use in the steel industry.
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 business and economic conditions; competitive
products and pricing; changes in refining, chemical and other product margins;
variation in petroleum-based commodity prices and availability of crude oil
supply or transportation; fluctuations in supply of feedstocks and demand for
products manufactured; changes in operating conditions and costs; changes in
the expected level of environmental capital, operating or remediation
expenditures; potential equipment malfunction; potential labor relations
problems; the legislative and regulatory environment; plant
construction/repair delays; nonperformance by major customers, suppliers or
other business partners; and political and economic conditions, including the
impact of potential terrorist acts and international hostilities. These and
other applicable risks and uncertainties have been described more fully in
Sunoco's third quarter Form 10-Q filed with the Securities and Exchange
Commission on November 7, 2003 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.
SOURCE Sunoco, Inc.
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Related links:
http://www.SunocoInc.com
Company News On-Call:
http://www.prnewswire.com/comp/829144.html
Photo Notes:Logo:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/19981105/PHTH006
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
Jerry Davis (media), +1-215-977-6298, or
Terry Delaney (investors), +1-215-977-6106, both of Sunoco, Inc.
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