PHILADELPHIA, Jan. 27 /PRNewswire-FirstCall/ -- Sunoco, Inc. (NYSE: SUN)
announced today that it has signed a definitive agreement with ConocoPhillips
Company (NYSE: COP) to purchase its retail network in Delaware, Maryland,
Washington, D.C. and Virginia, currently operated under the Mobil brand. The
network consists of a total of 385 sites and has annual gasoline sales volume
of approximately 490 million gallons. Of the total sites being acquired, 114
are owned in fee or subject to long-term leases, with average gasoline
throughput of approximately 175,000 gallons per month. The remaining network
includes supply for 36 contract dealer owned and operated locations and 235
branded distributor sites. Thirty-one of the sites are company-operated and
have convenience stores that currently are branded Circle K. These sites will
be rebranded to Sunoco gasoline and APlus(R) convenience stores. The purchase
price is $187.4 million plus inventory. The transaction is subject to
regulatory approval.
(Logo: http://www.newscom.com/cgi-bin/prnh/19981105/PHTH006 )
"This opportunity fits our long-term strategy to build a retail and
convenience store network that will provide attractive long-term returns,"
said Sunoco Chairman and Chief Executive Officer John G. Drosdick. "This
transaction will allow us to increase our presence in an attractive, growing
market contiguous to our core northeastern market. The sites are high-quality
facilities in desirable locations. This acquisition is expected to be
immediately accretive to earnings and cash flow."
Sunoco, Inc., headquartered in Philadelphia, PA, is a leading manufacturer
and marketer of petroleum and petrochemical products. With 890,000 barrels
per day of refining capacity, over 4,500 retail sites selling gasoline and
convenience items, interests in almost 11,000 miles of domestic crude oil and
refined product pipelines and 33 product terminals, Sunoco is one of the
largest independent refiner-marketers in the United States. Sunoco has a
strong presence 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. For additional information visit Sunoco's web
site at http://www.Sunocoinc.com.
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
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