Sunoco Exiting Refining, Conduct Strategic Review

October 2011, Vol. 238 No. 10

Sunoco, Inc. plans to exit its refining business and has begun a process to sell its refineries located in Philadelphia and Marcus Hook, PA. Sunoco is conducting a comprehensive strategic review to determine the best way to deliver value to shareholders including how best to utilize the company’s strong cash position and maximize the potential for Sunoco’s logistics and retail businesses.

Sunoco said it will pursue all options to sell its refineries, but if a suitable transaction cannot be implemented, the company intends to idle the main processing units at the facilities by July.

“We have made progress in increasing the efficiency of our refineries over the last several years, but given the unacceptable financial performance of these assets, it is clear that it is in the best interests of shareholders to exit this business and focus on our profitable retail and logistics businesses which have higher returns, growth potential, and provide steady, ratable cash flow,” said Lynn Elsenhans, Sunoco chairman and CEO.