Sunoco Logistics to Acquire Energy Transfer Partners
Transaction Expected to be Immediately Accretive to SXL Distributable Cash Flow
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Under the terms of the transaction, ETP unitholders will receive 1.5 common units of SXL for each common unit of ETP they own. This equates to a 10% premium to the volume weighted average pricing of ETP’s common units for the last 30 trading days immediately prior to the announcement of the transaction.
As SXL will be the acquiring entity, the existing incentive distribution
rights provisions in the SXL partnership agreement will continue to be
in effect, and
The transaction is expected to provide significant benefits for SXL and
ETP unitholders as the combined partnership will have increased scale
and diversification across multiple producing basins and will have
greater opportunities to more closely integrate SXL’s natural gas
liquids business with ETP’s natural gas gathering, processing and
transportation business. With this transaction, SXL and ETP expect to
build upon their experience working together as partners in several
joint ventures to pursue commercial opportunities and to achieve cost
savings while enhancing the service capabilities for their customers.
SXL and ETP expect that the transaction will allow for commercial
synergies and costs savings in excess of
The transaction is also expected to strengthen the balance sheet of the
combined organization by utilizing cash distribution savings to reduce
debt and to fund a portion of the growth capital expenditure programs of
the two partnerships. ETP and SXL have spent approximately
Both ETP and SXL management teams are pleased to be able to bring two strong partnerships together in this strategic transaction that combines the premier crude oil midstream MLP with the premier natural gas midstream MLP. The combined partnership is expected to be the second largest MLP as measured by enterprise value.
At the closing of the transaction, the Chief Executive Officer, Chief
Commercial Officer, President and Chief Financial Officer of the
combined partnership will be
SXL and ETP will hold a joint conference call to discuss the transaction
details on
The dial-in number for the call is 1-877-524-8416. The investor presentation and a live webcast of the call may be accessed on the investor relations page of SXL’s website at www.sunocologistics.com or ETP’s website at www.energytransfer.com. The call will be available for replay on those sites or by dialing 1-877-660-6853. A replay of the broadcast will also be available on SXL’s and ETP’s websites for a limited time.
Advisors
About
Forward-Looking Statements
This release includes “forward-looking” statements. Forward-looking
statements are identified as any statement that does not relate strictly
to historical or current facts. Statements using words such as
“anticipate,” “believe,” “intend,” “project,” “plan,” “expect,”
“continue,” “estimate,” “goal,” “forecast,” “may” or similar expressions
help identify forward-looking statements. ETP and SXL cannot give any
assurance that expectations and projections about future events will
prove to be correct. Forward-looking statements are subject to a variety
of risks, uncertainties and assumptions. These risks and uncertainties
include the risks that the proposed transaction may not be consummated
or the benefits contemplated therefrom may not be realized. Additional
risks include: the ability to obtain requisite regulatory and unitholder
approval and the satisfaction of the other conditions to the
consummation of the proposed transaction, the ability of SXL to
successfully integrate ETP’s operations and employees and realize
anticipated synergies and cost savings, the potential impact of the
announcement or consummation of the proposed transaction on
relationships, including with employees, suppliers, customers,
competitors and credit rating agencies, and the ability to achieve
revenue, DCF and EBITDA growth, and volatility in the price of oil,
natural gas, and natural gas liquids. Actual results and outcomes may
differ materially from those expressed in such forward-looking
statements. These and other risks and uncertainties are discussed in
more detail in filings made by ETP and SXL with the
The information contained in this press release is available on ETP’s website at www.energytransfer.com and on the SXL website at www.sunocologistics.com.
Additional Information and Where to Find It
SECURITY HOLDERS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS AND
THE REGISTRATION STATEMENT REGARDING THE TRANSACTION CAREFULLY WHEN IT
BECOMES AVAILABLE. These documents (when they become available), and any
other documents filed by ETP or SXL with the
Investor Relations:
or
Media Relations:
Cell: 214-498-9272
or
Investor
Relations:
or
Media
Relations:
Participants in the Solicitation
ETP, SXL and their respective directors and executive officers may be
deemed to be participants in the solicitation of proxies in connection
with the proposed merger. Information regarding the directors and
executive officers of ETP is contained in ETP’s Form 10-K for the year
ended
View source version on businesswire.com: http://www.businesswire.com/news/home/20161121005638/en/
Source:
Energy Transfer
Investor Relations:
Lyndsay Hannah,
214-981-0795
or
Brent Ratliff, 214-981-0795
or
Granado
Communications Group
Media Relations:
Vicki Granado,
214-599-8785
Cell: 214-498-9272
or
Sunoco Logistics
Investor
Relations:
Peter Gvazdauskas, 215-977-6322
or
Media
Relations:
Jeff Shields, 215-977-6056