Sunoco Logistics Partners L.P. (NYSE: SXL) today announced a strategic
joint venture with ExxonMobil (NYSE: XOM) in which the companies will
form Permian Express Partners LLC to combine certain of their key crude
oil logistics assets. Sunoco Logistics will contribute its Permian
Express 1, Permian Express 2 and Permian Longview and Louisiana Access
pipelines. ExxonMobil will contribute: its Longview to Louisiana and
Pegasus pipelines; Hawkins gathering system; an idle pipeline in
southern Oklahoma; and its Patoka, Illinois, terminal.
This joint venture establishes a stronger crude oil logistics network to
meet market demand, provides additional take-away opportunities for
shippers, and expands ExxonMobil’s options to supply its network of
refineries. Concurrent with the transaction, ExxonMobil and its
affiliates will enter into a preferred provider agreement with the joint
venture. Sunoco Logistics will be the majority owner and operator of the
joint-venture’s assets.
“This combination of certain strategic crude oil assets, together with
our existing and recently acquired Midland Basin assets, greatly
enhances our service capabilities for the Permian Basin, one of the most
prolific shale areas with incredible growth opportunities. We expect to
achieve significantly greater long-term accretion as domestic crude oil
production grows over time," said Michael J. Hennigan, President and
Chief Executive Officer of Sunoco Logistics.
Upon closing, ownership in Permian Express Partners LLC will be
approximately 85% SXL and 15% XOM.
About Sunoco Logistics
Sunoco Logistics Partners L.P. (NYSE: SXL), headquartered in Newtown
Square, Pennsylvania, is a publicly traded Delaware limited partnership
that owns and operates a logistics business, consisting of a
geographically diverse portfolio of complementary pipeline,
terminalling, and acquisition and marketing assets which are used to
facilitate the purchase and sale of crude oil, NGLs and refined
products. SXL's general partner is a consolidated subsidiary of Energy
Transfer Partners, L.P. (NYSE: ETP). For more information, visit the
Sunoco Logistics Partners L.P. web site at www.sunocologistics.com.
Portions of this document constitute forward-looking statements as
defined by federal law. Although Sunoco Logistics Partners L.P. believes
that the assumptions underlying these statements are reasonable,
investors are cautioned that such forward-looking statements are
inherently uncertain and necessarily involve risks that may affect the
Partnership’s business prospects and performance causing actual results
to differ from those discussed in the foregoing release. Such risks and
uncertainties include, by way of example and not of limitation: whether
or not the transactions described in the foregoing news release will be
cash flow accretive; increased competition; changes in demand for crude
oil, NGLs and refined products that we store and distribute; changes in
operating conditions and costs; changes in the level of environmental
remediation spending; potential equipment malfunction; potential labor
issues; the legislative or regulatory environment; plant
construction/repair delays; nonperformance by major customers or
suppliers; and political and economic conditions, including the impact
of potential terrorist acts and international hostilities. These and
other applicable risks and uncertainties have been described more fully
in the Partnership's Annual Report on Form 10-K filed with the
Securities and Exchange Commission on February 26, 2016, and in the
Partnership's subsequent Form 10-Q and Form 8-K filings. The Partnership
undertakes no obligation to update any forward-looking statements in
this release, whether as a result of new information or future events.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161109006194/en/
Copyright Business Wire 2016
Source: Business Wire
(November 9, 2016 - 4:01 PM EST)
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