Sign Up for FREE Daily Energy News
Canadian Flag CDN NEWS  |  US Flag US NEWS  | TIMELY. FOCUSED. RELEVANT. FREE
  • Stay Connected
  • linkedin
  • twitter
  • facebook
  • youtube2
BREAKING NEWS:

Hazloc Heaters
Copper Tip Energy Services
Hazloc Heaters
Copper Tip Energy


The Breakdown: Gas Station Owner Sunoco Buys NuStar Energy for $7.3 Billion


These translations are done via Google Translate
  • Move comes after Sunoco sold convenience stores to 7-Eleven
  • Deal would add crude oil transportation and storage for Sunoco

Sunoco LP, a US gas station owner, agreed to acquire pipeline and fuel storage company NuStar Energy LP for about $7.3 billion in a move to diversify its business and buy up a key part of its supply chain.

The all-stock deal is expected to close in the second quarter, the companies said Monday in a statement. Sunoco fell 7% at 11:01 a.m. in New York after plunging as much as 9.7%. NuStar surged as much as 19%.

The acquisition would expand crude oil transportation and storage for Sunoco, one of the largest independent fuel retailers in the US. NuStar’s assets, which include pipelines and terminals for oil, chemicals, ammonia and other fuel-related products, are mainly in the Midwest and West Coast. The deal comes just over a week after Sunoco reshuffled some of its assets, selling 204 convenience stores to 7-Eleven and agreeing to acquire liquids terminals in Europe.

Buying NuStar will help Sunoco diversify, increase its ability to use more of its own terminals and allow the company to optimize fuel supply cost, according to a presentation. It’ll also allow Sunoco to expand its presence across more of the US, the company said.

ROO.AI Oil and Gas Field Service Software
GLJ

“There’s a strong argument to be made that SUN is being opportunistic in buying refined products assets when others are uninterested for what will be a stable to gently declining market over time in gasoline,” said Gabe Moreen, a managing director at Mizuho.

Sunoco’s general partner is owned by Energy Transfer Operating LP, a subsidiary of Energy Transfer LP. NuStar rejected a takeover attempt from Energy Transfer in 2018. When asked during a conference call with analysts on Monday how the latest NuStar proposal fits with Energy Transfer, Sunoco executives said the deal should be thought of as a Sunoco acquisition.

Recent oil and gas deals have faced regulatory hurdles. Occidental Petroleum Corp. said Monday the Federal Trade Commission asked for more information on its proposed acquisition of CrownRock LP. Last month, Chevron Corp. and Hess Corp. received a second request from the FTC for additional information on their planned $53 billion deal. But Sunoco executives said on the call they don’t expect the NuStar proposal to face significant anti-trust issues.

Advisers for the deal include Truist Securities and Bank of America. Weil, Gotshal & Manges LLP and Vinson & Elkins LLP acted as Dallas-based Sunoco’s legal advisers.



Share This:



More News Articles


GET ENERGYNOW’S DAILY EMAIL FOR FREE