Business Analysis of Sunoco Logistics

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Sunoco Logistics

SUNOCO LOGISTICS

Business Overview

Sunoco Logistics Partners L.P. transports, terminals, and stores crude oil, refined products, and natural gas liquids (NGLs). Its Crude Oil segment provides transportation, terminalling, and acquisition and marketing services to crude oil markets in the southwest, Midwest, and northeastern United States. It contains approximately 6,100 miles of crude oil trunk and gathering pipelines; and has interests in 2 crude oil pipelines. The segment also operates with an aggregate storage capacity of approximately 33 million barrels, including approximately 26 million barrels in Nederland, Texas; approximately 3 million barrels in Pennsylvania; and approximately 2 million barrels in Midland, Texas. The Natural Gas Liquids segment offers transportation, storing, and acquisition and marketing activities that include pipelines, storage and blending facilities, and strategic off-take locations that provide access to multiple NGLs markets. It contains approximately 900 miles of NGLs pipelines located in the northeast and southwest United States. The segment operates with storage capacity of approximately 5 million barrels, including approximately 1 million barrels in Texas; and 3 million barrels in Pennsylvania. It also engages in blending activities. The Refined Products segment provides transportation and terminalling services in the northeast, Midwest, and southeast United States. It operates approximately 1,800 miles of refined products pipelines; 40 active refined products marketing terminals; and storage capacity of approximately 8 million barrels. Sunoco Partners LLC serves as the general partner of the company. The company was founded in 2001 and is based in Newtown Square, Pennsylvania.

Sunoco Logistics

Sunoco Logistics


R&P Rank: 312
Sector: Oil & Gas
Industry:Oil & Gas Distribution
H.Q Location:Pennsylvania
Website: www.sunocologistics.com
Company Address:
3807 WEST CHESTER PIKE, NEWTOWN SQUARE PA 19073
Ph:215-977-3000

Business Analysis of Sunoco Logistics

The Oil & Gas Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Sunoco Logistics compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Sunoco Logistics to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Sunoco Logistics with an interactive chart.

  1. Revenue Growth: Sunoco Logistics reported a revenue growth of -12.7% year-on-year during 2016. Oil & Gas Distribution Industry grew at -12.3% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Sunoco Logistics spent 85.5% of its total revenues on COGS. Oil & Gas Distribution industry average (COGS share of revenue) in the same period was 75.2%
  3. R&D share of Revenues: Sunoco Logistics R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Sunoco Logistics spent 2.5% of its total revenues on Sales, Marketing, and General Administration (SG&A). Oil & Gas Distribution industry average SG&A spending in the same period was 3.7%
  5. Inventory share of Revenues: As a percentage of revenue, Sunoco Logistics spent 10.2% of its total revenues on Inventories. Oil & Gas Distribution industry average Inventory spending in the same period was 4.8%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Sunoco Logistics invested 19.8% of its total revenues on Accounts Payable (A/P) Oil & Gas Distribution industry average Accounts Payable investment in the same period was 10.1%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Sunoco Logistics invested 17.5% of its total revenues on Accounts Receivable (A/R). Oil & Gas Distribution industry average Accounts Receivable investment in the same period was 10.6%
  8. PP&E share of Revenues: As a percentage of revenue, Sunoco Logistics invested 134.7% of its total revenues on Property, Plants, and Equipments (PP&E). Oil & Gas Distribution industry average PPE investment in the same period was 155.8%
  9. Intangibles share of Revenues: As a percentage of revenue, Sunoco Logistics invested 28.3% of its total revenues on Intangibles. Oil & Gas Distribution industry average Intangibles investment in the same period was 39.0%
  10. Net Margins: Sunoco Logistics Net Margins in the year 2016 were 7.7%. Oil & Gas Distribution industry average Net Margins in the same period were 3.9%

Sector and Industry Association of Sunoco Logistics

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

Sunoco Logistics is associated with Oil & Gas Sector and Oil & Gas Distribution Industry.

Oil & Gas sector is comprised of the following industries: Oil & Gas Production; Oil & Gas Distribution; Oil & Gas Equipment and Services; Alternative Energy. The definitions for each of the industries is as follows:

  • Oil & Gas Production industry includes companies primarily engaged in operating oil & gas properties. Key activities may include exploration for crude petroleum and natural gas; drilling, completing, and equipping wells; and all other activities in the preparation of oil and gas up to the point of shipment from the producing property. It also includes companies engaged in crude petroleum refining and producing gasoline, kerosene, distillate fuel oils, residual fuel oils, and lubricants, through fractionation or straight distillation of crude oil.
  • Oil & Gas Distribution industry includes companies primarily engaged in the pipeline transportation of petroleum, natural gas, and other commodities. It also includes companies primarily engaged in the wholesale and retail distribution of petroleum and petroleum products.
  • Oil & Gas Equipment and Services industry includes companies primarily engaged in drilling wells for oil or gas field operations for others on a contract or fee basis. It also includes companies providing exploration services and machinery & equipment for oil and gas field operations.
  • Alternative Energy industry includes companies that develop or manufacture renewable energy equipment utilizing sources such as solar, wind, geothermal, hydro, and waves. It also includes companies that produce alternative fuels such as methanol, ethanol, hydrogen and biofuels that are mainly used to power vehicles.

Industry Ranking of Sunoco Logistics

With $9.2 billion revenues, Sunoco Logistics ranked number 10 of all the companies in the US Oil & Gas Distribution industry. There were a total of 69 public companies in the US Oil & Gas Distribution industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Oil & Gas Distribution industry by revenues during 2016 were:

  1. Energy Transfer Equity ($37.5 billion)
  2. World Fuel ($27 billion)
  3. Enterprise Products Partners ($23 billion)
  4. Energy Transfer Partners ($21.8 billion)
  5. Plains All American Pipeline ($20.2 billion)
  6. Plains GP Holdings ($20.2 billion)
  7. Sunoco ($15.7 billion)
  8. Kinder Morgan ($13.1 billion)
  9. NGL Energy Partners ($11.7 billion)
  10. Sunoco Logistics ($9.2 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Sunoco Logisticsand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of sunoco-logistics

Sunoco (SUN) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Sunoco Lp with $16 billion revenues in the year 2016 was the number 7 Oil & Gas Distribution company. Read this report to know the top competitors of Sunoco and identify growth and cost optimization opportunities of Sunoco

Kinder Morgan (KMI) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Kinder Morgan, Inc. with $13 billion revenues in the year 2016 was the number 8 Oil & Gas Distribution company. Read this report to know the top competitors of Kinder Morgan and identify growth and cost optimization opportunities of Kinder Morgan

NGL Energy Partners (NGL) Business Analysis – Analyze Historical Performance, Strategic...

NGL Energy Partners LP with $12 billion revenues in the year 2016 was the number 9 Oil & Gas Distribution company. Read this report to know the top competitors of NGL Energy Partners and identify growth and cost optimization opportunities of NGL Energy Partners

ONEOK (OKE) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Oneok Inc with $9 billion revenues in the year 2016 was the number 11 Oil & Gas Distribution company. Read this report to know the top competitors of ONEOK and identify growth and cost optimization opportunities of ONEOK

ONEOK Partners (OKS) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Oneok Partners Lp with $9 billion revenues in the year 2016 was the number 12 Oil & Gas Distribution company. Read this report to know the top competitors of ONEOK Partners and identify growth and cost optimization opportunities of ONEOK Partners

Global Partners (GLP) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Global Partners Lp with $8 billion revenues in the year 2016 was the number 13 Oil & Gas Distribution company. Read this report to know the top competitors of Global Partners and identify growth and cost optimization opportunities of Global Partners

Revenues Analysis

Sunoco Logistics (SXL) Revenues And Revenue Growth From 2013 To 2016

This report provides the last four years revenues and revenue growth of Sunoco Logistics Partners L.P. (SXL) from 2013 to 2016. Sunoco Logistics generated a total of $9.2 billion revenues during 2016. Sunoco Logistics reported a revenue growth of -12.7% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Sunoco Logistics (SXL) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Sunoco Logistics Partners L.P. (SXL) from 2002 to 2016. Sunoco Logistics generated a total of $9.2 billion revenues during 2016. Sunoco Logistics reported a revenue growth of -12.7% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Sunoco Logistics (SXL) Revenue Growth Comparison With Industry Growth From 2013...

This report provides a comparison of Sunoco Logistics Partners L.P. (SXL) revenue growth with Oil & Gas Distribution industry growth during the last four years from 2013 to 2016. Sunoco Logistics reported a revenue growth of -12.7% year-over-year during 2016. The Oil & Gas Distribution industry growth was -12.3% year-over-year during 2016. Sunoco Logistics growth was slower than the industry during 2016.

Profit Analysis