Energy Transfer Partners agreed to acquire independent refiner Sunoco in a
USD5.3 billion deal that would greatly expand the reach of Energy Transfer's
pipeline system but could also saddle the company with aging refineries.
Sunoco has been trying to sell itself since late 2011 after posting losses
for much of the past two years because of high oil prices and decreasing fuel
Finding a buyer for the company and its aging refineries was considered a
long-shot despite Sunoco's profitable logistics and retail businesses.
Energy Transfer will gain 7,900 miles of crude oil and refined fuel pipelines
from Sunoco Logistics Partners master limited partnership and give it a toe-hold
in the Marcellus and Utica shale regions, increasingly productive sources of oil
and natural gas.
Energy Transfer will also gain Sunoco's relatively successful chain of 4,900
gasoline stations that it could sell at a later date.