DALLAS, May 3, 2024
/PRNewswire/ -- Sunoco LP (NYSE: SUN) ("Sunoco") announced the
completion of the acquisition of NuStar Energy L.P. ("NuStar") and
a 4% increase in its quarterly distribution.
NuStar Energy Acquisition
Sunoco announced the completion of the acquisition of NuStar.
The merger was approved by NuStar unitholders at its Special
Meeting held on May 1, 2024.
Effective as of the opening of markets on May 3, 2024, NuStar's common units ceased trading
on the New York Stock Exchange.
The completion of this transaction increases Sunoco's stability
and credit profile, strengthens its financial foundation, and
enhances its ability to grow. Sunoco expects to realize at least
$150 million of expense and
commercial synergies. In addition, Sunoco expects at least
$50 million per year of additional
cash flow from refinancing activity. Sunoco expects the transaction
to be immediately accretive to distributable cash flow per LP unit,
growing to greater than 10% accretion by the third year following
close.
Quarterly Distribution Increase
Sunoco also announced that the Board of Directors of its general
partner declared a quarterly distribution for the first quarter of
2024 of $0.8756 per common unit or
$3.5024 per common unit on an
annualized basis. The distribution will be paid on May 20, 2024, to common unitholders of record on
May 13, 2024 (including the former
NuStar unitholders who received Sunoco common units upon the
completion of the merger).
Building on the 2% increase last year, this 4% increase
demonstrates Sunoco's continued confidence in the business and in
future distribution increases.
Sunoco will provide additional details about the NuStar
acquisition and distribution increase on Sunoco's first quarter
2024 conference call on May 8, 2024,
at 9:00 a.m. Central Daylight
Time.
About Sunoco LP
Sunoco LP (NYSE: SUN) is a leading energy infrastructure and
fuel distribution master limited partnership operating across 47
U.S. states, Puerto Rico,
Europe, and Mexico. The Partnership's midstream operations
include an extensive network of approximately 9,500 miles of
pipeline and over 100 terminals. This critical infrastructure
complements the Partnership's fuel distribution operations, which
serve approximately 10,000 convenience stores, independent dealers,
commercial customers, and distributors. SUN's general partner is
owned by Energy Transfer LP (NYSE: ET).
Qualified Notice
This release serves as qualified notice to nominees as provided
for under Treasury Regulation Section 1.1446-4(b)(4) and (d).
Please note that one hundred percent (100%) of Sunoco LP's
distributions to foreign investors are attributable to income that
is effectively connected with a United
States trade or business. Accordingly, all of Sunoco LP's
distributions to foreign investors are subject to federal tax
withholding at the highest applicable effective tax rate. Nominees,
and not Sunoco LP, are treated as withholding agents responsible
for withholding distributions received by them on behalf of foreign
investors. For purposes of Treasury Regulation section
1.1446(f)-4(c)(2)(iii), brokers and nominees should treat one
hundred percent (100%) of the distributions as being in excess of
cumulative net income for purposes of determining the amount to
withhold.
Contacts
Investors:
Scott Grischow, Treasurer, Senior Vice President
– Finance
(214) 840-5660, scott.grischow@sunoco.com
Media:
Vicki Granado,
Vice President – Media & Communications
(214) 981-0761, vicki.granado@energytransfer.com
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SOURCE Sunoco LP