Mon, Nov. 21, 3:18 PM
- Both Sunoco Logistics Partners (SXL -7.8%) and Energy Transfer Partners (ETP -7.9%) trade sharply lower on news of the plan for the much smaller SXL to purchase ETP that will result in a net implicit reduction in distribution yield for ETP unitholders.
- ETP investors will receive 1.5 units of SXL for each unit of ETP they own but their payouts will be reduced since SXL has a much lower dividend yield; CreditSights says the merger amounts to a “stealth distribution cut” that reduces the ETP cash payout by 29%.
- Bernstein Research notes CEO Kelcy Warren chose a path that protects Energy Transfer Equity (ETE +2.8%), the entity in the group of companies in which he holds more than 10% of shares outstanding.
- But analysts generally are pleased that the deal - if it is approved by unitholders - will simplify ETE's complex structure, which also includes Sunoco LP (SUN -3.6%) and PennTex Midstream Partners (PTXP +0.8%); Baird analyst Ethan Bellamy calls the deal "a major step in untangling... the most complex web of publicly traded partnerships."
- Seaport Global's Sunil Sibal calculates that the deal will lead to a distribution reduction of ~$1.22 per ETP unit, or $650M, but could turn out well in the long run, lowering the cost of capital through the Energy Transfer complex and positioning it for acquisitions as the industry continues to consolidate.
Thu, Jun. 23, 4:51 PM
- Emerge Energy Services (NYSE:EMES) +9.9% AH after agreeing to sell its fuels distribution business to Sunoco (NYSE:SUN) for $178.5M.
- EMES says the sale will drive substantial debt reduction and simplification of its operating platform, allowing it to become a pure-play business with all of its assets and operations focused on its frac sand segment.
Dec. 10, 2015, 6:16 PM
- Marathon Petroleum's (NYSE:MPC) Speedway, Sunoco (NYSE:SUN) and Alimentation Couche-Tard (OTCPK:ANCUF) are among various groups interested in a potential acquisition of convenience store operator CST Brands (NYSE:CST), according to TheStreet.com.
- The report comes a day after Engine Capital sent a letter to CST's board requesting action to improve the company's business operations or launch a review of strategic alternatives, including the exploration of a sale.
Nov. 16, 2015, 7:30 AM
- Energy Transfer Partners (NYSE:ETP) agrees to sell its 68.4% stake in convenience store operator Sunoco LLC to Sunoco LP (NYSE:SUN) for ~$2.23B.
- SUN will pay ETP ~$2.2 billion in cash and issue ~5.7M common units valued at ~$194M.
- ETP will remain the largest unitholder of the retail business after the dropdown, with a ~46% interest.
Mar. 23, 2015, 11:18 AM
- Sunoco (SUN +1.1%) reaches a deal in which Energy Transfer Partners (ETP +0.1%) will drop down a second portion of ETP’s retail business to SUN in an $816M deal, which includes a 31.58% equity interest in the retail business that distributes ~5.3B gallons/year of motor fuel to much of the U.S.
- SUN will pay $775M in cash and issue $40.8M of its common units to ETP; to fund the cash portion of the transaction, SUN is offering $800M of senior notes.
- SUN says the deal gives it new exposure to customers in 26 states in the east, southeast and midwest U.S. and will complement its current base of wholesale customers in the southwest and Hawaii.
Sep. 26, 2014, 8:31 AM
- Susser Petroleum Partners (NYSE:SUSP) announces a series of strategic moves: It agrees to acquire Mid-Atlantic Convenience Stores from Energy Transfer Partners (NYSE:ETP) for $768M, agrees to acquire Hawaii-based Aloha Petroleum, closes a new $1.25B revolving credit facility, and plans to change its name to Sunoco LP.
- In the first dropdown transaction between the two companies, ETP will transfer some convenience store assets within the Sunoco corporate family to SUSP, including ~110 company-operated retail stores and 210 dealer-operated and consignment sites.
- Aloha is the largest independent gasoline marketer and one of the largest convenience store operators in Hawaii, with ~100 fuel stations throughout the state, about half of which are company operated.
- The name change includes a new ticker symbol - SUN - to align the partnership's name with that of Sunoco.
Oct. 2, 2012, 12:52 PMPreliminary results of the elections made by Sunoco (SUN +1%) shareholders regarding the form of merger consideration to be received in connection with Energy Transfer's (ETP +1.1%) pending acquisition show the cash consideration option was oversubscribed, as holders of nearly 74% of the stock elected that choice. The acquisition is expected to close Friday. | Oct. 2, 2012, 12:52 PM | 1 Comment
Jun. 14, 2012, 12:17 PM
Carlyle Group (CG) is closing in on a deal to purchase Sunoco's (SUN) 330K bbl/day oil refinery in Philadelphia, CNBC's Kate Kelly reports. The exclusivity deal SUN and Carlyle signed in April is set to expire this Friday if a deal can’t be reached. If Carlyle does buy SunPhilly, the plant "will likely come on the cheap," according to the report.| Jun. 14, 2012, 12:17 PM
May 15, 2012, 6:20 PMEnergy Transfer Partners (ETP) could fetch up to $1.8B for the 4,900 gasoline stations it acquired when it agreed to buy Sunoco (SUN) last month in a $5.3B deal, Raymond James analysts say. Possible buyers include Marathon Petroleum (MPC), Alimentation Couche-Tard (ANCUF.PK) and retail operator Global Partners (GLP). | May 15, 2012, 6:20 PM | 1 Comment
Apr. 30, 2012, 6:36 PMAll Energy Transfer (ETP) really wants from Sunoco (SUN) is its pipeline system and access to the lucrative Marcellus and Utica shales, which means more deals could be ahead. ETP appears to want no part of Sunoco's 4,900 retail outlets or its refining business, so SUN is continuing its plans for exiting the business, as well as talks with Carlyle about a potential JV. | Apr. 30, 2012, 6:36 PM | 1 Comment
Apr. 30, 2012, 3:12 PM
Sunoco (SUN +19.6%) continues to lead all S&P gainers after its acquisition by Energy Transfer Partners (ETP +2.9%). ETP is most enamored with SUN's stakes in Sunoco Logistics (SXL -1.3%) and its network of refined product pipelines, terminals and trucks; ETP is paying plenty for the general partner interest in SXL, but it's a bargain vs. KMI's recent deal for EP.| Apr. 30, 2012, 3:12 PM
Apr. 30, 2012, 7:59 AM
More on Energy Transfer (ETP) / Sunoco (SUN) M&A: Sunoco shines 20% premarket to $49.03, nearing ETP's offer of $50.13 a share, which represents a 29% premium to Sunoco's 20-day average closing price as of Friday. The deal will expand ETP's footprint, and strengthen its crude and other transportation, terminalling and logistics ops. (PR)| Apr. 30, 2012, 7:59 AM | 2 Comments
Apr. 30, 2012, 6:48 AM
Apr. 18, 2012, 3:19 AM