| Type | Public (NYSE: SUN) S&P 500 Component |
|---|---|
| Industry | Oil & Gas operations |
| Founded | Pittsburgh, PA, U.S. (1886 as Sun Company Inc.) |
| Founder(s) | Joseph Newton Pew Philip Pisano Edward O. Emerson |
| Headquarters | Philadelphia, Pennsylvania, U.S. |
| Area served | Worldwide |
| Key people | Lynn Elsenhans Chairman, President, CEO[1] |
| Products | Petrochemical Petroleum Fuel Lubricants |
| Net income | (US$329 million) (2009)[2] |
| Total assets | US$11.895 billion (2009)[2] |
| Total equity | US$3.119 billion (2009)[2] |
| Website | Sunocoinc.com |
Sunoco Inc. (NYSE: SUN) is an American petroleum and petrochemical manufacturer headquartered in Philadelphia, Pennsylvania, United States, formerly known as Sun Company Inc. (1886–1920 and 1976–1998) and Sun Oil Co. (1920–1976).
Sunoco is one of the largest gasoline distribution companies in the United States, with Sunoco brand gasoline being sold in over 4,700 outlets;[3] just over a third of these outlets are Sunoco gas stations and convenience stores,[4] located in 26 states.[3]
Sunoco is a Fortune 100 Company. It is also the second biggest company based in Philadelphia, after Comcast, and the 2nd biggest in Pennsylvania behind AmerisourceBergen. Its headquarters are located in the BNY Mellon Center in Center City Philadelphia.[5]
In Canada, Sunoco was operated by Suncor Energy, a separate Canadian entity. In 2010, all Sunoco outlets were converted to Petro-Canada outlets.
In 2011, Sunoco announced that it would exit the oil refinery business and try to sell its last two refineries.[6]
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The integrated oil company now known as Sunoco began as The Peoples Natural Gas Company in Pittsburgh, Pennsylvania. In 1886, its partners – Joseph Newton Pew, Philip Pisano and Edward O. Emerson – decided to expand their gas business with a stake in the new oil discoveries in Ohio and Pennsylvania. Four years later, the growing enterprise became the Sun Oil Company of Ohio. Sun Oil diversified quickly, active in production and distribution of oil as well as processing and marketing refined products. By 1901, the company was incorporated in New Jersey as Sun Company and turned its interest to the new Spindletop field in Texas. Pew's sons, J. Howard Pew and Joseph N. Pew, Jr. would take over the company after their father's death.
With a growing portfolio of oil fields and refineries in hand, Sun opened its first service station in Ardmore, Pennsylvania in 1920. The name changed back to Sun Oil Company in 1922 and, in 1925, Sun became a publicly traded company on the New York Stock Exchange. Following World War II, Sun expanded internationally. Its first Canadian refinery was built in 1953 in Sarnia, Ontario, home to a burgeoning new petrochemical industry. Sun established a facility at Venezuela's Lake Maracaibo in 1957, which produced over a billion barrels (160,000,000 m³) before the operation was nationalized in 1975.
Sunoco is perhaps best known to consumers for its "custom blending" pumps, an innovation that, beginning in 1956, allowed customers of Sunoco service stations to choose from several octane grades through a single pump. Sunoco stations offered as many as eight grades of "Custom Blended" gasolines from its "Dial A Grade" pumps ranging from subregular Sunoco 190 to Sunoco 260, the latter a super-premium grade of 102 octane that was advertised as the "highest octane pump gas" and very popular with the 400 horsepower V8(299 kW) muscle cars of the 1960s.
In 1967, Sun established its Great Canadian Oil Sands Limited facility in northern Alberta, Canada, to help unlock the estimated 300 billion barrels (48 km³) of recoverable oil in the Athabasca oil sands.
In 1968, Sun Oil merged with Tulsa, OK-based Sunray DX Oil Company, which refined and marketed gasoline under the DX brand in several midwestern states, and included several refineries including one in Tulsa that was operated by Sun until its sale was completed in June 2009 to Holly Corporation of Dallas, Texas.[7] This move expanded Sun's marketing area into the mid-continent region.
Sun Oil continued marketing its petroleum products under both the Sunoco and DX brands through the 1970s and into the 1980s. In the late 1980s, Sun began rebranding DX stations in the Midwest to the Sunoco brand and even introduced the high-octane Sunoco ULTRA 94 gasoline to stations in that region, but by the early 1990s, they pulled out of virtually all areas in the southeastern U.S. and west of the Mississippi, resulting in the closing and rebranding of service stations and jobbers to other brands in those areas, notably Sinclair in Oklahoma.
With increased diversification, Sun Oil Company was renamed Sun Company in 1976. In 1980, Sun acquired the U.S. oil and gas properties of Texas Pacific Oil Company, Inc., a subsidiary of The Seagram Company, Ltd., for US$2.3 billion—the second largest acquisition in U.S. history to that date.
Through the 1980s, Sun developed oil interests in the North Sea and offshore China and expanded its holdings in both oil and coal with additional U.S. business acquisitions. In 1983, consumers saw the arrival of Sunoco ULTRA 94, the market's highest octane unleaded gasoline. Then in 1988, Sun undertook a major restructuring to segregate its domestic oil and gas exploration and production business and the focus the company on its refining and marketing business. This led to the acquisition of Atlantic Refining and Marketing (and, in effect, that company's convenience store chain, A-Plus), including its Philadelphia refinery which was later merged with the former Gulf Oil refinery next door that Sunoco acquired from Chevron.
By the 1990s, Sun had departed the international exploration business and was fully dedicated to its branded products and services. Sun sold its remaining interest in Canada's Suncor Energy in 1995, but co-operates two refineries – in Toledo, Ohio, and Sarnia, Ontario – in joint ventures.[8] In 1998, Sun Company, Inc. became Sunoco, Inc.
By 1998, Sun had acquired Allied Signal, Inc. chemical plants. Allied Signal, Inc. being on the stock exchange sold half of the company to Honeywell, Inc. and the other half to Sunoco, Inc. The chemical portion of the business was called "Sunoco Chemicals, Inc."
In 2003, the Speedway SuperAmerica chain of gas stations and convenience stores exited the southeast United States and sold most of their operations to Sunoco. Shortly prior to this, Sunoco acquired many service stations from Coastal Petroleum, especially its stations in Florida. This has led to the reintroduction of the Sunoco brand to areas it pulled out of ten years earlier.
In 2004, Sunoco replaced ConocoPhillips' 76 brand as the official fuel of NASCAR.
After ConocoPhillips abandoned the marketing of the Mobil brand name in the Washington, DC, area, Sunoco purchased these rights, and has since been converting Maryland and Virginia Mobil stations to the Sunoco brand, bringing the A-Plus convenience store with them – prior to this, these stations had convenience stores under the Circle K or On the Run brands. Most of the conversions done so far have been in Virginia.
In September 2009, Sunoco announced the sale of its retail heating oil and propane distribution business to Superior Plus Corp for $82.5 million in cash.[9]
In October 2009, Sunoco announced it will idle and possibly permanently shut down its Eagle Point/ Westville, NJ plant, laying off over 400 employees.
In March 2011, Sunoco announced plans to spin off its SunCoke Energy unit in a $100 mm IPO.[10]
In December 2010, Sunoco sold its refinery in Toledo, Ohio to PBF Energy for US$400 million.[6] Effective 6 September 2011, Sunoco announced that it would exit the crude oil refining business and seek to sell its Philadelphia and Marcus Hook refineries by mid-2012.[6] According to one report, the company had lost some US$800 million on refining operations since 2009.[1] On December 1, 2011, Sunoco announced it would accelerate closure of the Marcus Hook facility, with a target completion in 90 days.[1] a second earlier report provided a figure of US$772 million.[6] The Marcus Hook facility, founded in 1902 and covering 781 acres, was dedicated exclusively to the processing of light sweet crude oil.[1] The company has said that its cost for exiting the refining business could be as high as US$2.7 billion.[6]
Sunoco is the only major gasoline retailer to sell four grades of gasoline in the U.S., due to its proprietary pumps which blend regular with Ultra93 to obtain the mid-grades, with octane ratings in parentheses:
Sunoco also once sold Economy unleaded, an 86 octane slightly cheaper than regular, in all of its markets until the mid-1990s when it was withdrawn from Pennsylvania and a handful of other states, and was phased out altogether in 2003.
Up until the early 1980s, Sunoco used a numbering system to market its then-five grades of leaded gasoline, and a rotary lever on the pump was used to select the grade and blend the lowest-octane gasoline with the highest-octane gasoline to obtain the proper octane, with the resulting octane (R+M/2 method) in parentheses (originally, the "missing" grades were available, too - 210, 230, and 250):[11]
In addition to their sponsorship deal with NASCAR, Sunoco also has exclusive deals as the gasoline supplier at the travel plazas along the Pennsylvania Turnpike, New Jersey Turnpike, Atlantic City Expressway, Palisades Parkway, and Delaware Turnpike. In 2011, Sunoco acquired the rights to operate the nine plazas on the Garden State Parkway,[12] and also signed a new contract to operate the 16 plazas on the Ohio Turnpike beginning in 2012.[13] In addition, Sunoco also owns & operates a station with an A-Plus convenience store at Pittsburgh International Airport, as Sunoco has a very large market share in Pittsburgh. Sunoco also operates some of the filling stations on the New York Thruway.
Sunoco will become the official fuel of the Izod IndyCar Series beginning in 2011.[14]
Among oil corporations, Sunoco is listed as the most environmentally responsible in the latest version of the Sierra Club's Updated Environmentalist's Guide to Gasoline.[15] Sunoco is also the only oil company to sign the Coalition for Environmentally Responsible Economies (CERES) principal and as part of this agreement, Sunoco has made all of its environmental activities—both successes and failures—publicly available.
Researchers at the University of Massachusetts Amherst have identified Sunoco as the 55th-largest corporate producer of air pollution in the United States, with roughly 1.7 million pounds of toxic chemicals released annually into the air.[16] Major pollutants indicated by the study include nickel compounds, naphthalene, aniline, and benzene.
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