DALLAS, Aug. 2, 2021 /PRNewswire/ -- Sunoco LP (NYSE:
SUN) ("SUN" or the "Partnership") announced the execution of
definitive agreements to acquire eight refined product terminals
from NuStar Energy L.P. ("NuStar") and one refined product terminal
from Cato, Incorporated ("Cato") for a combined purchase price of
$255.5
million.
These acquisitions will result in a significant expansion of
SUN's midstream business, enhance its platform for fuel
distribution expansion and allow SUN to remain within its long-term
leverage and coverage target levels. SUN will continue to
employ a disciplined approach toward future acquisitions.
NuStar Acquisition
The NuStar acquisition includes
seven refined product terminals on the East Coast and one in the
Midwest in the following locations: Andrews Air Force Base, MD; Baltimore, MD; Blue
Island, IL; Jacksonville,
FL; Linden, NJ;
Paulsboro, NJ; Piney Point, MD; and Virginia Beach, VA. The terminals have an
aggregate storage capacity of approximately 14.8 million barrels,
handle primarily refined products and are accessed via pipeline,
truck, rail, and marine vessels.
Cato Acquisition
The Cato terminal is a gasoline and
distillate terminal located in Salisbury,
MD with approximately 140 thousand barrels of storage and is
accessed via truck and marine vessels. As part of the transaction,
Cato has agreed to a five-year extension of its existing SUN fuel
distribution contract.
Both acquisitions are expected to close in the fourth quarter of
2021, subject to the satisfaction of customary closing conditions.
The Partnership expects the acquisitions to be immediately
accretive to unitholders.
Sunoco LP (NYSE: SUN) is a master limited
partnership with core operations that include the distribution of
motor fuel to approximately 10,000 convenience stores, independent
dealers, commercial customers and distributors located in more than
30 states as well as refined product transportation and
terminalling assets. 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 the Partnership's Annual Report on
Form 10-K and other documents filed from time to time with the
Securities and Exchange Commission. In addition to the risks
and uncertainties previously disclosed, the Partnership has also
been, or may in the future be, impacted by new or heightened risks
related to the COVID-19 pandemic and the recent decline in
commodity prices, and we cannot predict the length and ultimate
impact of those risks. The Partnership undertakes 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
our website at www.SunocoLP.com
Contacts
Investors:
Scott Grischow, Vice President –
Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
James Heckler, Director –
Investor Relations and Corporate Finance
(214) 840-5415, james.heckler@sunoco.com
Derek Rabe, CFA, Manager –
Investor Relations, Strategy and Growth
(214) 840-5553, derek.rabe@sunoco.com
Media:
Alexis Daniel,
Manager – Communications
(214) 981-0739, alexis.daniel@sunoco.com
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SOURCE Sunoco LP