Sunoco Logistics to Acquire Energy Transfer Partners

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Researched by Industrial Info Resources (Sugar Land, Texas)--Sunoco Logistics Partners LP (NYSE:SXL) (SXL) (Newtown Square, Pennsylvania) announced on Monday that it will acquire midstream company Energy Transfer Partners (NYSE:ETP) (ETP) (Dallas, Texas) in an all-stock deal valued at $19.93 billion. Industrial Info is tracking projects valued at more than $22.7 billion involving Sunoco Logistics and Energy Transfer Partners.

The deal has been approved by the boards of directors of both companies and is expected to close in the first quarter of 2017. Shareholders of Energy Transfer Partners will receive 1.5 shares of Sunoco Logistics for each share of Energy Transfer Partners that they currently hold. According to a Sunoco Logistics press release, the deal will allow "greater opportunities to more closely integrate SXL's natural gas liquids business with ETP's natural gas gathering, processing and transportation business." Energy Transfer Partners owns about 21% of Sunoco Logistics, according to Thomson Reuters.

Energy Transfer Partners has been in the news recently for its controversial Dakota Access crude oil pipeline, which is being protested by the Standing Rock Sioux tribe in North Dakota, whose land is adjacent to the federal land where the pipeline runs, joined. The pipeline will connect the Bakken and Three Forks areas in North Dakota to Patoka, Illinois. Energy Transfer Partners Chief Executive Officer Kelcy Warren repeatedly has been quoted in the news media saying that the pipeline will be built and will not be rerouted because of the protests. For more information, see November 17, 2016, article - Oil & Gas Industry Cheers Trump's Election.

Sunoco Logistics recently announced the delay of the startup of one of its largest projects, the Mariner East 2 natural gas liquids (NGL) pipeline because of permitting issues. For more information, see November 16, 2016, article - Sunoco Logistics Delays Mariner East 2 NGL Pipeline Startup.

"ETP and SXL have spent approximately $15 billion in organic growth capital over the past several years," said Sunoco Logistics, "and these expenditures, combined with the completion of other major capital projects currently in progress, are expected to continue to generate strong distributable cash flow growth."

Other growth projects being tracked by Industrial Info include Energy Transfer Partners' $1 billion-plus Lone Star Express NGL pipeline, which will run from the Permian Basin to Mont Bevieu, Texas. The project kicked off construction in late 2015 and is expected to be completed by the end of this year. The company continues adding fractionators to its Mont Belvieu facility. For more information, see November 15, 2016, article - Energy Transfer Partners Reports Progress on Dakota Access, Other Growth Projects.

Sunoco continues investing in its NGL complex in Marcus Hook, Pennsylvania. The company is in the process of constructing a 30,000-barrel-per-day fractionation train at the complex, which is expected to be wrapped up in the second quarter of next year. The project has an estimated total investment value of $500 million. Sunoco Logistics is also in the early planning stages to construct an $800 million propane dehydrogenation (PDH) unit at the complex. The project could kick in the third quarter of 2018 and be completed in 2020.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.