DALLAS, July 16,
2024 /PRNewswire/ -- Energy Transfer LP (NYSE: ET)
("Energy Transfer") and Sunoco LP (NYSE: SUN) ("Sunoco") today
announced the formation of a joint venture combining their
respective crude oil and produced water gathering assets in the
Permian Basin.
Energy Transfer will serve as the operator of the joint venture
and contribute its Permian crude oil and produced water gathering
assets and operations. Sunoco will contribute all of its Permian
crude oil gathering assets and operations to the joint venture.
Energy Transfer's long-haul crude pipeline network that provides
transportation of crude oil out of the Permian Basin to
Nederland, Houston, and Cushing is excluded from the joint
venture.
As depicted in the included map, the joint venture will operate
more than 5,000 miles of crude oil and water gathering pipelines
with crude oil storage capacity in excess of 11 million
barrels.
Energy Transfer will hold a 67.5% interest in the joint venture
with Sunoco holding a 32.5% interest.
The formation of the joint venture has an effective date of
July 1, 2024, and is expected to be
immediately accretive to distributable cash flow per LP unit for
both Energy Transfer and Sunoco.
Intrepid Partners, LLC served as financial advisor to Energy
Transfer's conflicts committee, while Guggenheim Securities, LLC
served as financial advisor to Sunoco's special committee. Potter
Anderson & Corroon LLP acted as Delaware counsel for Energy Transfer's
conflicts committee, and Richards,
Layton & Finger, P.A. acted as Delaware counsel for Sunoco's special
committee. Vinson & Elkins LLP and Akin Gump Strauss Hauer
& Feld LLP also acted as legal counsel to the partnerships on
the transaction.
About Energy Transfer
Energy Transfer LP (NYSE: ET) owns and operates one of the
largest and most diversified portfolios of energy assets in
the United States, with more than
130,000 miles of pipeline and associated energy infrastructure.
Energy Transfer's strategic network spans 44 states with assets in
all of the major U.S. production basins. Energy Transfer is a
publicly traded limited partnership with core operations that
include complementary natural gas midstream, intrastate and
interstate transportation and storage assets; crude oil, natural
gas liquids ("NGL") and refined product transportation and
terminalling assets; and NGL fractionation. Energy Transfer also
owns Lake Charles LNG Company, as well as the general partner
interests, the incentive distribution rights and approximately 21%
of the outstanding common units of Sunoco LP (NYSE: SUN), and the
general partner interests and approximately 39% of the outstanding
common units of USA Compression
Partners, LP (NYSE: USAC). For more information, visit the Energy
Transfer LP website at www.energytransfer.com.
About Sunoco LP
Sunoco LP (NYSE: SUN) is a leading energy infrastructure and
fuel distribution master limited partnership operating in over 40
U.S. states, Puerto Rico,
Europe, and Mexico. The Partnership's midstream operations
include an extensive network of approximately 14,000 miles of
pipeline and over 100 terminals. This critical infrastructure
complements the Partnership's fuel distribution operations, which
serve approximately 7,400 Sunoco and partner branded locations and
additional independent dealers and commercial customers. SUN's
general partner is owned by Energy Transfer LP (NYSE: ET).
Forward-Looking Statements
This news release may include certain statements concerning
expectations for the future that are forward-looking statements as
defined by federal law. Such forward-looking statements are subject
to a variety of known and unknown risks, uncertainties, and other
factors that are difficult to predict and many of which are beyond
management's control. An extensive list of factors that can affect
future results are discussed in Energy Transfer's and Sunoco's
Annual Reports on Forms 10-K and other documents filed from time to
time with the Securities and Exchange Commission. Energy Transfer
and Sunoco undertake no obligation to update or revise any
forward-looking statement to reflect new information or events.
The information contained in this press release is available on
Energy Transfer's website at www.energytransfer.com and
Sunoco's website at www.sunocolp.com.
Energy Transfer
Investors:
Bill Baerg, Vice President –
Investor Relations
Brent Ratliff, Vice President –
Investor Relations
Lyndsay Hannah, Director – Investor
Relations
(214) 840-0795, InvestorRelations@energytransfer.com
Media:
Vicki Granado – Vice President,
Media & Communications
(214) 981-0761, vicki.granado@energytransfer.com
Sunoco LP
Investors:
Scott Grischow, Treasurer, Senior
Vice President – Finance
(214) 840-5660, scott.grischow@sunoco.com
Media:
Chris Cho, Senior Manager –
Communications
(210) 918-3953, chris.cho@sunoco.com
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SOURCE Sunoco LP