Sunoco LP Acquires NuStar Energy L.P., Expects Significant Growth

Sunoco LP (NYSE: SUN) has just completed the acquisition of NuStar Energy L.P., marking a significant development for the company. The acquisition is expected to bring about a positive impact on Sunoco's stability, credit profile, and financial foundation, while also enhancing its growth potential. The completion of this transaction is anticipated to yield at least $150 million of expense and commercial synergies, along with an additional $50 million per year of cash flow from refinancing activity. Furthermore, Sunoco expects the transaction to be immediately accretive to distributable cash flow per LP unit, with accretion projected to exceed 10% by the third year following the close of the acquisition.

In addition to the acquisition, Sunoco has announced a 4% increase in its quarterly distribution, with the Board of Directors of its general partner declaring 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. This increase follows a 2% raise in the previous year, reflecting the company's continued confidence in its business and future distribution growth.

Sunoco LP, a leading energy infrastructure and fuel distribution master limited partnership, operates across 47 U.S. states, Puerto Rico, Europe, and Mexico. The partnership's midstream operations encompass approximately 9,500 miles of pipeline and over 100 terminals, complementing its fuel distribution operations that serve around 10,000 convenience stores, independent dealers, commercial customers, and distributors.

The completion of the NuStar Energy L.P. acquisition and the 4% increase in quarterly distribution are key milestones for Sunoco LP, signaling its commitment to strategic expansion and delivering value to its stakeholders. The company is set to provide additional details about the acquisition and distribution increase in its first quarter 2024 conference call on May 8, 2024, at 9:00 a.m. Central Daylight Time. Today the company's shares have moved 1.1% to a price of $55.91. If you want to know more, read the company's complete 8-K report here.

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