HOUSTON
and
DALLAS
,
March 23, 2015
/PRNewswire/ --
Sunoco LP
(NYSE: SUN) and
Energy Transfer beplay88网棋牌 s, L.P.
(NYSE: ETP) announced today the second dropdown of a portion of ETP's retail business to SUN.
SUN has agreed to acquire from
ETP Retail Holdings
, an affiliate of ETP, a 31.58 percent equity interest in
Sunoco, LLC
, which distributes approximately 5.3 billion gallons per year of motor fuel to customers in the east, midwest and southeast regions of the U.S. The transaction is valued at approximately
$816 million
. SUN will pay
$775 million
in cash and issue
$40.8 million
of SUN common units to
ETP Retail Holdings
, based on the five-day volume-weighted average price of SUN's common units as of
March 20
, 2015. SUN expects to fund the acquisition using proceeds from the private offering of senior notes that was also announced in a separate news release today.
Sunoco, LLC
distributes motor fuels across more than 26 states in the east, midwest and southeast regions of
the United States
to:
-
Sunoco Inc.
(owned by ETP) for resale at 440 company-operated
Sunoco
and APlus branded convenience stores and other retail fuel outlets.
- 882
Sunoco
-branded dealer locations under long-term fuel supply agreements.
- Other fuel distributors of
Sunoco
-branded fuel that supply an additional 3,640 third-party retail fuel outlets.
- Approximately 400 other commercial customers under spot or short-term contracts.
Management expects that substantially all of the income from SUN's interest in
Sunoco, LLC
will be qualifying income.
The transaction is expected to close in April, subject to customary closing conditions and completion of financing arrangements. It is expected to be immediately accretive to distributable cash flow of both SUN and ETP for 2015 and beyond.
"This transaction gives us new exposure to customers in 26 states from
Maine
to
Florida
to
Louisiana
, where the
Sunoco
fuel brand is very strong, complementing our current base of wholesale customers in the
Southwest
and
Hawaii
," said
Robert W. Owens
, President and Chief Executive Officer of
Sunoco LP
. "We will also enhance our sales channel portfolio with additional jobbers -- who supply fuel to independent retailers -- in our mix of customers," he said.
For additional information on the transaction and pro forma financial information, please refer to filings made by SUN and ETP today on Form 8-K with the
U.S. Securities and Exchange Commission
.
Sunoco LP
(NYSE: SUN) is a master limited partnership (MLP) that primarily distributes motor fuel to convenience stores, independent dealers, commercial customers and distributors. SUN also operates more than 150 convenience stores and retail fuel sites. SUN's general partner is a wholly owned subsidiary of ETP. While primarily engaged in natural gas, natural gas liquids, crude oil and refined products transportation, ETP also operates a retail business with a network of more than 5,500 company or independently operated retail fuel outlets and convenience stores through its wholly owned subsidiaries,
Sunoco, Inc.
and
Stripes LLC
. For more information, visit the
Sunoco LP
website atwww.SunocoLP.com.
Energy Transfer beplay88网棋牌 s, L.P.
(NYSE: ETP) is a master limited partnership owning and operating one of the largest and most diversified portfolios of energy assets in
the United States
. ETP currently owns and operates approximately 35,500 miles of natural gas and natural gas liquids pipelines. ETP owns 100% of
Panhandle Eastern Pipe Line Company, LP
(the successor of
Southern Union Company
) and a 70% interest in
Lone Star NGL LLC
, a joint venture that owns and operates natural gas liquids storage, fractionation and transportation assets. ETP also owns the general partner, 100% of the incentive distribution rights, and approximately 67.1 million common units in
Sunoco Logistics beplay88网棋牌 s L.P.
(NYSE: SXL), which operates a geographically diverse portfolio of crude oil and refined products pipelines, terminalling and crude oil acquisition and marketing assets. ETP owns 100% of
Sunoco, Inc.
and 100% of
Susser Holdings Corporation
. Additionally, ETP owns the general partner, 100% of the incentive distribution rights and approximately 43% of the limited partner interests in
Sunoco LP
(NYSE: SUN) (formerly
Susser Petroleum beplay88网棋牌 s LP
), a wholesale fuel distributor and convenience store operator. ETP's general partner is owned by ETE. For more information, visit the
Energy Transfer beplay88网棋牌 s, L.P.
web site atwww.energytransfer.com.
Forward-Looking Statements
This news release contains "forward-looking statements" which may describe
Sunoco LP's
("SUN") objectives, expected results of operations, targets, plans, strategies, costs, anticipated capital expenditures, potential acquisitions, new store openings and/or new dealer locations, management's expectations, beliefs or goals regarding proposed transactions between ETP and SUN, the expected timing of those transactions and the future financial and/or operating impact of those transactions, including the anticipated integration process and any related benefits, opportunities or synergies. These statements are based on current plans, expectations and projections and involve a number of risks and uncertainties that could cause actual results and events to vary materially, including but not limited to: execution, integration, environmental and other risks related to acquisitions (including the
Sunoco, LLC
drop-down, and future drop-downs) and our overall acquisition strategy; competitive pressures from convenience stores, gasoline stations, other non-traditional retailers and other wholesale fuel distributors located in
SUN's
and
Sunoco
, LLC's markets; dangers inherent in storing and transporting motor fuel; SUN's or
Sunoco, LLC's
ability to renew or renegotiate long-term distribution contracts with customers; changes in the price of and demand for motor fuel; changing consumer preferences for alternative fuel sources or improvement in fuel efficiency; competition in the wholesale motor fuel distribution industry; seasonal trends; severe or unfavorable weather conditions; increased costs; environmental laws and regulations; dangers inherent in the storage of motor fuel; reliance on suppliers to provide trade credit terms to adequately fund ongoing operations; acts of war and terrorism; dependence on information technology systems; SUN's and ETP's ability to consummate any proposed transactions, or to satisfy the conditions precedent to the consummation of such transactions; successful development and execution of integration plans; ability to realize anticipated synergies or cost-savings and the potential impact of the transactions on employee, supplier, customer and competitor relationships; and other unforeseen factors. For a full discussion of these and other risks and uncertainties, refer to the "Risk Factors" section of SUN's and ETP's most recently filed annual reports on Form 10-K. These forward-looking statements are based on and include our estimates as of the date hereof. Subsequent events and market developments could cause our estimates to change. While we may elect to update these forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if new information becomes available, except as may be required by applicable law.
Contacts
To view the original version on PR Newswire, visit:https://www.prnewswire.com/news-releases/sunoco-lp-and-energy-transfer-partners-announce-816-million-dropdown-of-interest-in-fuel-distribution-business-300054242.html
SOURCE
Sunoco LP
;
Energy Transfer beplay88网棋牌 s, L.P.
