DALLAS, Jan. 11,
2024 /PRNewswire/ -- Sunoco LP (NYSE: SUN)
("SUN" or the "Partnership") today announced that it has entered
into a definitive agreement for the sale of 204 convenience stores
to 7-Eleven, Inc. ("7-Eleven") for approximately $1.0 billion. SUN also announced its intention to
acquire liquid fuels terminals in Amsterdam, Netherlands and Bantry Bay,
Ireland from Zenith
Energy.
West Texas Sale
On January 11,
2024, SUN entered into a definitive agreement with 7-Eleven
to sell 204 convenience stores located in West Texas, New
Mexico, and Oklahoma for
approximately $1.0 billion, including
customary adjustments for fuel and merchandise inventory. As
part of the sale, SUN will also amend its existing take-or-pay fuel
supply agreement with 7-Eleven to incorporate additional fuel gross
profit. Proceeds from the sale will allow SUN to materially
reduce leverage to execute on future growth opportunities while
maintaining a strong balance sheet and multi-year distribution
growth. The transaction is expected to close promptly upon
receipt of regulatory approvals and satisfaction of customary
closing conditions.
European Terminals Acquisition
SUN also
announced its intention to acquire one hundred percent of the
equity interest in Zenith Energy Netherlands Amsterdam B.V., which
includes liquid fuels terminals in Amsterdam, Netherlands and Bantry Bay,
Ireland. The definitive
purchase agreement will be executed, and the purchase price
announced, after completion of the appropriate Dutch works council
consultation and information processes, which are currently
underway. The Amsterdam
terminal is strategically located in the Port of Amsterdam, which serves as an international
hub for the global energy market and is part of the largest refined
product trading port in Europe.
The Bantry Bay terminal is the largest independent bulk liquids
storage terminal in Ireland and
provides storage for Ireland's
strategic oil reserve. The acquisition will provide supply
optimization for SUN's existing East Coast business and continues
SUN's focus on growing its portfolio of stable midstream income.
SUN expects this tuck-in acquisition to be accretive to unitholders
in the first year of ownership and will be funded using amounts
available under SUN's revolving credit facility. The
transaction is expected to close in the first quarter of 2024,
subject to customary closing conditions.
2024 Adjusted EBITDA Guidance Reaffirmed
SUN's
previously announced 2024 EBITDA guidance range of $975 million to $1
billion remains unchanged.
Sunoco LP (NYSE: SUN) is a master limited
partnership with core operations that include the distribution of
motor fuel to approximately 10,000 convenience stores, independent
dealers, commercial customers and distributors located in more than
40 U.S. states and territories as well as refined product
transportation and terminalling assets. SUN's general partner is
owned by Energy Transfer LP (NYSE: ET).
Forward-Looking Statements
This news release may include certain statements concerning
expectations for the future that are forward-looking statements as
defined by federal law. Such forward-looking statements are subject
to a variety of known and unknown risks, uncertainties, and other
factors that are difficult to predict and many of which are beyond
management's control. An extensive list of factors that can affect
future results are discussed in the Partnership's Annual Report on
Form 10-K and other documents filed from time to time with the
Securities and Exchange Commission. The Partnership
undertakes no obligation to update or revise any forward-looking
statement to reflect new information or events.
The information contained in this press release is available on
our website at www.sunocolp.com
Contacts
Investors:
Scott Grischow, Treasurer, Senior
Vice President – Investor Relations and Mergers &
Acquisitions
(214) 840-5660, scott.grischow@sunoco.com
Media:
Alexis Daniel, Manager –
Communications
(214) 981-0739, alexis.daniel@sunoco.com
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SOURCE Sunoco LP
