Sunoco Announces Strategic Initiative; CEO Lynn L. Elsenhans to Step Down

Sunoco, Inc. (NYSE: SUN) announced it will focus on its high-return logistics and retail businesses and undertake a series of initiatives to improve its financial and strategic flexibility to better position itself to deliver sustainable value to shareholders. The initiatives are intended to improve future earnings potential, limit future liabilities and provide Sunoco with a well-positioned financial and operational platform as well as an expense structure that is comparable to companies in the logistics and retail space.

The initiatives include:

Repurchasing up to 19.9% of Sunoco common shares in open market purchases over the next 12 – 18 months. Increasing the quarterly dividend per share by 33% from 15 cents to 20 cents. Reducing Sunoco's leverage by repurchasing up to $400 million of outstan ding debt over the next year. Eliminating the need for pension fund contributions for the foreseeable future by contributing $80 million pre-tax to the pension fund. Eliminating future retiree medical expense by restructuring retiree medical liability and contributing approximately $200 million pre-tax to a dedicated Trust. Establishing a segregated environmental fund via a captive insurance company of approximately $250 million to be used for remediation of legacy environmental obligations.

In light of the company's exit from manufacturing and its go-forward strategy, the following management changes were announced:

Brian P. MacDonald, senior vice president and chief financial officer, will become president, chief executive officer, and a director of Sunoco, effective March 1, 2012. Sunoco's current chairman, president, and chief executive officer, Lynn L. Elsenhans, will step aside as chief executive officer and president at that time.

Ms. Elsenhans will remain chairman of Sunoco, Inc. and Sunoco Logistics Partners L.P. (NYSE: SXL) until Sunoco's Annual Meeting of Shareholders in May 2012, at which time Mr. MacDonald will become chairman of Sunoco, Inc. and Sunoco Logistics Partners L.P.

Michael Hennigan, currently president and chief operating officer of Sunoco Logistics, will become president and chief executive officer of Sunoco Logistics effective March 1, 2012.