Sunoco LP is acquiring NuStar Energy LP, an independent liquids terminal and pipeline operator, for approximately $7.3 billion in an all-equity transaction, the companies announced Jan. 22.
As per the agreement, NuStar common unitholders will receive 0.400 Sunoco common units for each NuStar common unit. Sunoco has secured a $1.6 billion 364-day bridge term loan to refinance NuStar’s Series A, B and C preferred units, subordinated notes, revolving credit facility and receivables financing agreement.
The transaction is expected to close in the second quarter of 2024 following the satisfaction of customary closing conditions. By the third year following close, Sunoco expects at least 10% accretion to distributable cash flow per LP unit, according to the press release.
Truist Securities served as the exclusive financial advisor to Sunoco. Truist and Bank of America provided committed financing. Weil, Gotshal & Manges LLP and Vinson & Elkins LLP acted as Sunoco’s legal advisors.
Barclays served as the exclusive financial advisor to NuStar. Wachtell, Lipton, Rosen & Katz and Sidley Austin LLP acted as NuStar’s legal advisors.
RELATED
Energy Transfer’s Sunoco Buys NuStar Energy for Scale, Permian Oil Footprint
Recommended Reading
E&P Highlights: March 11, 2024
2024-03-11 - Here’s a roundup of the latest E&P headlines, including a new bid round offshore Bangladesh and new contract awards.
CNOOC Makes 100 MMton Oilfield Discovery in Bohai Sea
2024-03-18 - CNOOC said the Qinhuangdao 27-3 oilfield has been tested to produce approximately 742 bbl/d of oil from a single well.
CNOOC Finds Light Crude at Kaiping South Field
2024-03-07 - The deepwater Kaiping South Field in the South China Sea holds at least 100 MMtons of oil equivalent.
Orange Basin Serves Up More Light Oil
2024-03-15 - Galp’s Mopane-2X exploration well offshore Namibia found a significant column of hydrocarbons, and the operator is assessing commerciality of the discovery.
Sinopec Brings West Sichuan Gas Field Onstream
2024-03-14 - The 100 Bcm sour gas onshore field, West Sichuan Gas Field, is expected to produce 2 Bcm per year.