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Sunoco

Sunoco LP Acquires West Texas Assets & European Liquid FuelsSunoco LP (NYSE: SET:SUN ) is making strategic strides in its growth journey with the completion of two significant transactions – the acquisition of European liquid fuels terminals and the divestiture of convenience stores in West Texas. These moves underscore Sunoco's commitment to optimizing its portfolio, enhancing supply chain efficiencies, and positioning itself for sustainable growth. Let's explore the implications of these transactions and their impact on Sunoco's future prospects. 1. European Terminal Acquisition: Sunoco's acquisition of liquid fuel terminals in Europe, including the Amsterdam terminal and Bantry Bay terminal, marks a strategic entry into key markets. The Amsterdam terminal's strategic location within the Port of Amsterdam enhances Sunoco's supply chain capabilities and strengthens its presence in Europe's energy market. Additionally, the Bantry Bay terminal in Ireland adds to Sunoco's portfolio of critical infrastructure, supporting the nation's strategic oil reserves and reinforcing its commitment to stable midstream income. 2. Portfolio Optimization Through Divestiture: Sunoco's divestiture of 204 convenience stores in West Texas to 7-Eleven, Inc. highlights its focus on portfolio optimization and value creation. The approximately $1.0 billion transaction allows Sunoco ( SET:SUN ) to streamline its operations, optimize its asset mix, and position its balance sheet for future growth initiatives. The amended fuel supply agreement with 7-Eleven further enhances Sunoco's revenue potential and strengthens its partnership with a leading convenience store retailer. 3. Accretive Impact on Unitholders: Both the European terminal acquisition and the West Texas divestiture are immediately accretive to Sunoco's unitholders on key metrics. These transactions are completed at attractive multiples, contributing positively to Sunoco's financial performance and reaffirming its commitment to creating value for stakeholders. The expected full-year Adjusted EBITDA range of $975 million to $1 billion reflects the anticipated benefits from these strategic moves and underscores Sunoco's optimistic outlook for future growth. 4. Non-GAAP Financial Metrics and Disclosure: Sunoco's disclosure of Adjusted EBITDA as a non-GAAP financial measure provides investors with insights into the Partnership's operational performance and financial health. While acknowledging the limitations of non-GAAP measures, Sunoco emphasizes transparency and accountability in its reporting practices, ensuring stakeholders have access to comprehensive financial information. 5. Future Growth Trajectory and Partnership Structure: Sunoco's core operations, including motor fuel distribution and refined product transportation assets, position the Partnership for continued growth and value creation. With its general partner owned by Energy Transfer LP, Sunoco benefits from a robust partnership structure and synergies within the Energy Transfer family, further enhancing its competitive advantage and growth prospects. Conclusion: By expanding into key European markets and optimizing its portfolio through divestiture, Sunoco ( SET:SUN ) strengthens its position as a leading player in the energy distribution industry. With a focus on operational excellence, financial discipline, and transparent reporting practices, Sunoco ( SET:SUN ) sets the stage for sustained growth and long-term success in a dynamic and evolving market landscape.
NYSE:SUNLong
by DEXWireNews
Sunoco Acquiring NuStar Energy in a $7.3 Billion All-Stock DealIn a bold strategic move, Sunoco ( SET:SUN ), the prominent motor fuels distributor, has announced its intention to acquire NuStar Energy, a key player in the oil and gas transportation service industry. The all-stock deal, valued at an impressive $7.3 billion, including assumed debt, marks a significant step for Sunoco as it seeks to strengthen its position in the highly competitive energy market. The deal, which has received approval from the boards of both Sunoco ( SET:SUN ) and NuStar, involves NuStar's common shareholders receiving 0.400 Sunoco shares for each NuStar common unit. This exchange represents a generous 31.9% premium to NuStar's last closing price, signaling Sunoco's commitment to creating value for NuStar shareholders. Market dynamics were immediately reflected in premarket trading, with Sunoco's shares experiencing a 2.5% dip, while NuStar's shares surged an impressive 26%. This market reaction underscores the market's confidence in the strategic synergy and growth potential arising from this transformative acquisition. One of the key highlights of this deal is the projected synergies of $150 million by the third year post-closure. Sunoco and NuStar anticipate that the combined strengths of their operations will yield substantial cost savings and operational efficiencies. These synergies are expected to enhance the overall competitiveness of the merged entity in an ever-evolving energy landscape. The acquisition is slated to close in the second quarter of 2024, pending regulatory approvals and other customary closing conditions. As the energy sector witnesses rapid transformations and increasing competition, this strategic move positions Sunoco to navigate challenges and capitalize on emerging opportunities. Sunoco's ( SET:SUN ) decision to acquire NuStar aligns with the broader industry trend of consolidation as companies seek to optimize their operations, enhance market share, and adapt to changing market dynamics. The merger is expected to create a formidable force in the energy sector, leveraging the complementary strengths of both companies to achieve sustained growth. Industry analysts are already buzzing with speculations about the potential impact of this acquisition on the broader energy landscape. As the merged entity emerges, investors will be keenly watching how Sunoco ( SET:SUN ) harnesses NuStar's assets and capabilities to create a more resilient and competitive business. In conclusion, Sunoco's ( SET:SUN ) acquisition of NuStar Energy represents a strategic chess move in the dynamic energy sector. With a substantial all-stock deal, a premium offered to NuStar shareholders, and anticipated synergies, Sunoco ( SET:SUN ) is poised to emerge as a stronger and more competitive player. As the deal progresses towards closure, the industry awaits the unveiling of a new, unified force ready to navigate the complexities of the evolving energy market.
NYSE:SUN
by DEXWireNews
Sunoco LP Strategic Moves Signal Growth Amidst Mixed Financials Sunoco LP., ( SET:SUN ) a key player in the energy sector, has recently unveiled a series of strategic moves that suggest a calculated approach to future growth. The company's announcement of a $1 billion deal with 7-Eleven, coupled with the planned acquisition of European terminals, reflects a commitment to expansion and optimization. While financial figures for the past year present a mixed picture, Sunoco's recent performance in Q3 2024 signals a positive trajectory. Strategic Moves for Growth: Sunoco's decision to sell 204 convenience stores to 7-Eleven for approximately $1 billion underscores the company's focus on streamlining operations and reducing leverage. The deal not only includes the sale of stores but also involves amending the existing fuel supply agreement with 7-Eleven, a move that could enhance fuel gross profit for Sunoco. The infusion of capital from the sale is earmarked to fortify the company's financial position and pursue future growth opportunities, all while ensuring a robust balance sheet and sustaining multi-year distribution growth. In addition to the 7-Eleven deal, Sunoco's intention to acquire 100% equity interest in Zenith Energy Netherlands Amsterdam B.V. signifies a strategic move into the European market. The acquisition includes liquid fuels terminals in Amsterdam, Netherlands, and Bantry Bay, Ireland, providing supply optimization for Sunoco's existing East Coast business. This move aligns with Sunoco's broader strategy of growing its portfolio of stable midstream income. The company anticipates the acquisition to be accretive to unitholders in the first year and plans to finance it using available amounts under its revolving credit facility. Financial Performance Analysis: Sunoco's financial performance in Q3 2024 reveals a tale of contrasts. While total revenue for the past year showed a robust 46.22% increase, net income figures dipped by 10.99% compared to the previous year. However, the most recent quarter tells a different story, with net income spiking by an impressive 280.3%, signaling a potential turnaround. Similarly, earnings per share (EPS) for the past year witnessed a decrease of 11.37%, but the third quarter of 2024 saw a remarkable improvement of 279.84%. Technical Outlook: From a technical standpoint, Sunoco LP Unit is currently in a rising trend channel in the medium to long term. Trading near the top of its 52-week range and above its 200-day simple moving average, the stock's upward momentum suggests a positive sentiment among investors. This trend could be attributed to the recent strategic moves, indicating that investors view Sunoco's growth initiatives favorably. Conclusion: Sunoco LP's recent strategic moves, including the 7-Eleven deal and the European terminals acquisition, demonstrate a proactive approach to growth and optimization. Despite mixed financial figures for the past year, the significant improvement in Q3 2024 suggests that Sunoco is on a positive trajectory. Investors, buoyed by the company's strategic initiatives, seem to be driving the share price higher, indicating a promising future for Sunoco LP.
NYSE:SUNLong
by DEXWireNews
Last call for Sunoco. SUNWe are not in the business of getting every prediction right, no one ever does and that is not the aim of the game. The Fibonacci targets are highlighted in purple with invalidation in red. Confirmation level, where relevant, is a pink dotted, finite line. Fibonacci goals, it is prudent to suggest, are nothing more than mere fractally evident and therefore statistically likely levels that the market will go to. Having said that, the market will always do what it wants and always has a mind of its own. Therefore, none of this is financial advice, so do your own research and rely only on your own analysis. Trading is a true one man sport. Good luck out there and stay safe.
NYSE:SUNLong
by Rykin_Capital
Impulse done on Sunoco. SUNAnother impulse finished. We are going down. We are not in the business of getting every prediction right, no one ever does and that is not the aim of the game. The Fibonacci targets are highlighted in purple with invalidation in red. Fibonacci goals, it is prudent to suggest, are nothing more than mere fractally evident and therefore statistically likely levels that the market will go to. Having said that, the market will always do what it wants and always has a mind of its own. Therefore, none of this is financial advice, so do your own research and rely only on your own analysis. Trading is a true one man sport. Good luck out there and stay safe!
NYSE:SUNShort
by Rykin_Capital
1
ET; A transfer of energy and a transfer of energy sourcesDISCLAIMER This is in no way, shape or form, fluid and function, an analytical, qualitative or intelligent compte rendu. I am obviously not rich, so obviously I haven't made it with my own thinking, so definitely don't put faith in me. But maybe read and learn some things about a company changing its business with the change in energy demands. Thesis This is a great case study on doing that research to find the hidden gems. Energy Transfer isn't an exciting company, nor is the field, but the fundamentals are astounding. Not only that, but by working primarily in transport (rather than production), they avoid a significant amount of the future rain clouds over crude oil and natural gas production, and can switch to transporting renewable sources from future companies. Energy Transfer has everything neat and tidy, making cuts while struggling, but finding the capital to advance the business. On top of all of that, pulling off a record quarter with the giant blizzard that crushed much of the southern states; ET is hustling and making it work. While some of ET's business is threatened by any Green New Deal that comes out of Congress; ET has done its job in diversifying business assets such that any particular asset is under 30% of it's total business value. If should one of these be crushed by any legislation, policy change or overall public demand, the share price could be pushed far more than just 30% as investors hop off for a more ESG energy company. However, it is important to note that government grants get spread out, and they rarely all go to small companies that don't have the built-in fundamental worth to carry on big projects. ET has started to build up it's solar plant business, and according to their most recent investor presentation, are in advanced talks for a significantly larger solar project. ET has everything going for it right now, attractive fundamentals, attractive merger plans, attractive growth of natural gas and solar energy, and the ability to make a metric ton of cash every quarter. ET made $3.6 billion in cash last quarter, which they then used to reduce debt and give shareholders a big dividend. While I doubt the dividend alone is causing the price increase, but rather a change in financial forecasts and an increase in debt rating outlook from Moody's to stable (from negative, ouch). If there isn't some major analyst calling for a higher price now, which Citigroup did this morning before publishing this idea, then they will soon. Another major point to add is that diversification of investments across multiple sectors is an important move for long term investments. Stocks may go up, but not all at the same time and at the same sector; tech gets its day, but so does energy. What is Energy Transfer LP An LP (limited partners) is the same way as saying a single company, but with some tax advantages in this case. The important bones of ET are ET(the energy transfer/pipelines/oil holding stations/etc), Sunoco(the worst gas station), and a small compressor company. ET itself is involved with crude oil, natural gas and solar, where they build, own and operate the pipelines and storage facilities, and transporting to delivery stations. They also manage several solar fields, built a solar plant for 20% of their energy needs, and are looking to build more. Current acquisition with ENBL suggests a hard shift to natural gas, mirrored by a 45% share of EBITDA in the business, straying far from their Annual report suggesting not letting any single business raise more than 30% of EBITDA. As an added bonus, the executive chairman of ET has made a recent statement that they are looking to acquire a company in the chemicals business (finance.yahoo.com). As mentioned in the thesis, making ~3 billion in cash every quarter makes it easy to acquire small OR big companies. I would assume any acquisition here is to take over the crumbling pillar of crude oil in underlying assets. Dakota Pipeline en.wikipedia.org This is a rough patch, and it isn't even close to over. Personal beliefs aside, it is going to be hard imaging the Dakota Access Pipeline survives much longer, if not just the current protests, the Army Corps of Engineers doing environmental impact surveys that are likely to turn up red flags, or the current congressional legislation lineup tackling the pipeline and crude oil, then the natural death of crude oil as a whole. The pipeline is likely to come to some sort of head this year, hopefully not falling in line with the merger timing for ET and ENBL. My brain is telling me the CEO can't be so stupid to think it gets to flow freely forever, which is why ET is rotating so hard to natural gas. Even if the dakota access pipeline gets shut down, ET's overall value won't be hit hard as it slowly exits the crude oil business, or at the very least limits exposure, but it will be a hit, likely being the negative catalyst for an impulse wave in the current series. ENBL Merger Any potential investor should read the official statement from ET: ir.energytransfer.com The deal is a simple merger valuing Enable Midstream partners (ENBL) at .8595 to 1 ET. That is, at the end of the merger, ET will give .8595 shares of the merged entity (ET Operating L.P. ticker to be formally decided in S-4). Theoretically, if ET is worth $10, ENBL should be worth $8.595. Keeping an eye on price variations on either for a point of entry is a good way to make small gains, but larger institutions keep these types of deals weighted well, so the opening might never arise. The basics of the deal are simple, take on a modest increase in natural gas pipelines in areas uncontrolled, reduce their administrative costs and personnel to streamline operations, while removing a potential customer in a quickly growing business. Natural gas, either renewable or not, is going to be a huge stop gap between coal plants and more environmentally friendly alternatives. Furthermore, with companies developing carbon neutral/negative natural gas, pipelines in farming areas (where natural gas is made from cow poop) means easy access to early adoption and succinct market control. It seems a tad bit costly considering the current value of ET vs the more prospective value of ENBL, but it could be a critical part of ET's rotation into natural gas dominance. The interesting part of this merger is the clear history of mergers for ET. I think their claims that they are all successful is a tad bit of a stretch considering their massive amount of debt and profitability variance across the years, but it is clear they have a game plan, and with that focused on natural gas and building up their solar, I believe ET has the ability to keep rotating through the market evolution cycles. Fundamentals The first quarter results combined with their quarter over quarter decrease in costs, increase in profits and continued growth suggest a company gaining steam. Long term debt suggests a looming crisis. Even after paying off more than $3.5 billion in debt this quarter, the company has over $47.7 billion breathing down its neck. I normally wouldn't be so worried about this, especially with Moody's rating change from negative to stable, but should a sustained market incident happen again like it did in Q1 2020, I am unsure how many banks are willing to give ET a loan, especially if they get hit by any market affairs. This means that the company would be forced to go to the market for capital raise, leading to dilution. What is the likelihood of that? Probably minute, but the concern needs to be raised and understood. ET has an annual dilution rate of 2%, and at 2.7 billion shares, that can be a lot. ir.energytransfer.com www.macrotrends.net Share Float & Investors 2.7 billion shares spread across ~652 institutional holders with ~37% institutional ownership (+Insider). However, most recent filings show bigger banks selling ~40 million shares, and larger funds selling more. Interestingly, the buyers look to be smaller funds taking on a much smaller exposure, suggesting a switch to more bullish investors with less ability to cause drastic shifts down, but a more regular level of volatility at smaller rates is possible. The great news being, if banks ever look to buy back in, shares become scarcer the more bullish the underlying investors become. Important to note, insider buying has been heavy this past 12 months, likely insiders knowing the market bounce back will come with their successful rotations. Overall the investor pool looks healthy, less big owners means less power 1 person has to drive down, but the more regular volatility as smaller players tend to rotate assets more. This could mean a more actively trading float into more often Elliot waves, but that remains to be seen. whalewisdom.com www.nasdaq.com Bear Theory The bear theory is rather straight forward and multi-pronged: The company has the highest debt-margin ratio of its peers, and at >$47 billion, any failure to payback owed dues would lead to a game over. Furthermore, should a market event happen hurting the business for an extended period (like the Q1 2020 oil "crisis") combined with any collapse of big money lenders (like a possible repo collapse happening), ET might just find it impossible to take on any healthy new debt. Furthermore, any institution looking to short ET into the ground at the same time could easily tip the scale into delisting territory with an appropriate lack of confidence by underlying investors and the market as a hole. The Dakota Access Pipeline is going to be an issue. There is little way to keep it going combined with a PR meltdown. Shorting at the right time will cause a drop, there is very little ET could do to prevent that save from them pulling the pipeline themselves to lessen backlash. Crude oil is bad, natural gas ain't too much better, and their solar plans are a little little and a lot of late. It is too easy for anyone else to rotate into solar to take the legs out from under them, develop an alternative system to avoid the need of disastrous pipelines carrying anything, or just to get more widespread adoption of existing solar, wind, hydro and nuclear technologies. Sure, ET is rotating well, but in a collapsing business, whether or not they want to admit it, times are changing. Bull Theory The bull theory rests on fundamentals and a more subdued timeline of future energy technologies allowing widespread rejection of crude oil and natural gas. Furthermore, a recent expansion into solar, and late stage negotiations for even more, and a quarterly income of $3 billion cash, at least for the short term, suggests expansion into any field ET very well pleases. Making the move into chemicals is just the right kind of move they can make to continue the Fees and transportation business over production. Much of the infrastructure servicing crude oil and natural gas demands can be rotated to more economically desired chemicals, or even renewable sources of oil and gas. ET keeping the business in lines with service rather than production ensures a limit to exposure of more nuanced issues in any one field, and provide access to a greater market share geologically rather than economically. The continued spread of current technologies, and the continued adoption and acquisition of next wave ensures a healthy growth through, not just the year, but the decade. Lastly, with a beta over 2, ET accentuates the bullish tone of the equities market. If ARK, JP Morgan et al are to be believed, then a continued bull stock market will see a continued rise in ET's value. Disclaimer I am going to be real honest with you; congratulations for getting to the end. Thank you for your time, I hope it was worth it. If you have any suggestions, I would love to hear it. Please don’t make an investment decision on my information alone, always double check. I am not a financial analyst, I do not get paid to write any of this, and I do not currently (5/21/21) have an investment in ET or it's stock price. Thanks.
NYSE:ETLong
by DoctorFaustus
Pipeline Access, beyond game theory models Now that the pipeline access will be handled with different people involved this is great news for all those involved. As with all aboriginal treaties and disputes, this one will go down for the books. Step 1) Diffuse the situation - mishandled from the start. Step 2) PR - again awful handling. Pipeline should be built and will be built. Now that changeover is handled different PR, GT, PSY will/are involved. A satisfactory outcome to both sides involved in this dispute will complete the short stretch of the pipeline. The art of manipulation and prediction is just an art to a human being... In my prediction models, I remove the erroneous human component from it. This situation is fixable. From the very start of the first negotiation, things were mishandled. In my models a chance for this pipeline access to be built under Obama administration is great. Which would make it, a more preferable choice for both sides. However, depending on how this will proceed and which models will be utilized... With Sun in the picture, a professional firm will handle this adequately, as step 1 was so badly messed up.... The graph doesn't depict the 100% path, long term, great.
ELong
by Marek99
2