Just as your pulse is checked during a routine physical, free cash flow is used as an indicator of a company's health. It equals the cash brought in from operations minus the money needed to pay the bills. Think about leftover money in your checking account after you pay this month's bills.

Investors and analysts see this leftover money as a gauge of a company's ability to perform. It is available for transactions such as handing out dividends and working on new products.

Some argue free cash flow is wrongly overshadowed by the emphasis often placed on earnings. Earnings numbers can be manipulated and don't always tell the whole story -- and earnings don't mean much if there's nothing left over after a company pays its expenses. Even if you bring in a six-figure salary, but no money left after paying the bills, are you in great financial shape?

You don't have to be Einstein to figure out free cash flow. To calculate the number, subtract the company's expenditures and dividends from its operating cash flow.

If the free cash flow is written in red ink, it doesn't necessarily signal curtains. This is common for young companies looking to grow. It also could be a result of heavy investments, which in the long run could be worth a standing ovation.

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Tuesday, July 22, 2008

Sunoco Logistics Partners L.P. Indicates Minimal Credit Exposure to SemGroup Bankruptcy

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Comtex

PHILADELPHIA, July 22, 2008 /PRNewswire-FirstCall via COMTEX/ ----Sunoco Logistics Partners L.P. (NYSE: SXL), announced today that it believes it has minimal credit exposure to SemGroup LP and its affiliates. SemGroup LP announced today that the company and certain of its subsidiaries, including SemCrude LP, have filed petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Affiliates of Sunoco Logistics conduct business with SemCrude LP for the purchase and sale of crude oil. Sunoco Logistics has a net-out agreement with SemCrude LP, pursuant to which receivables and payables are set-off. As of the Chapter 11 filing date, Sunoco Logistics estimates that it is in a net payable position with SemCrude LP, with limited credit exposure, if any.

Sunoco Logistics Partners L.P. (NYSE: SXL), headquartered in Philadelphia, is a master limited partnership formed to acquire, own and operate refined product and crude oil pipelines and terminal facilities, including those of Sunoco, Inc. The Eastern Pipeline System consists of approximately 1,800 miles of primarily refined product pipelines and interests in four refined products pipelines, consisting of a 9.4 percent interest in Explorer Pipeline Company, a 31.5 percent interest in Wolverine Pipe Line Company, a 12.3 percent interest in West Shore Pipe Line Company and a 14.0 percent interest in Yellowstone Pipe Line Company. The Terminal Facilities consist of 9.2 million shell barrels of refined product terminal capacity and 22.8 million shell barrels of crude oil terminal capacity (including 15.9 million shell barrels of capacity at the Texas Gulf Coast Nederland Terminal). The Western Pipeline System consists of approximately 3,700 miles of crude oil pipelines, located principally in Oklahoma and Texas, a 55.3 percent interest in Mid- Valley Pipeline Company and a 43.8 percent interest in the West Texas Gulf Pipe Line Company and a 37.0 percent interest in the Mesa Pipe Line System. For additional information visit Sunoco Logistics' web site at http://www.sunocologistics.com.

SOURCE Sunoco Logistics Partners L.P.

http://www.sunocologistics.com

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