The reduction in earnings was partially offset by higher crude oil pipeline volumes and fees and improved operating performance at the Partnership’s Nederland and refined products terminals. Contributing further to the reduction in earnings from the prior year’s quarter was a $5.8 million increase in interest expense associated primarily with the issuance of Senior Notes in 2010 and $3.0 million of non-recurring expenses. Distributable cash flow (“DCF”), which represents the cash generated during the quarter available to pay distributions, was $53.2 million compared to $89.8 million in the prior year period.
Sunoco Partners LLC, the general partner of the Partnership, declared a cash distribution for the first quarter 2010 of $1.115 per common partnership unit ($4.46 annualized), which is a 9.9 percent increase over the first quarter 2009 distribution and a 2.3 percent increase over the prior quarter. The distribution is payable May 14, 2010 to unitholders of record on May 10, 2010 and represents the twenty-seventh distribution increase in the past twenty-eight quarters.