This entry is sourced from Sunoco's Exhibit 99.1 press release filed as part of an 8-K on July 18, 2024, describing a joint venture formation with an effective date of July 1, 2024. Given the common-control relationship between the two partnerships, the transaction was structured with separate conflicts/special committee review on each side.
Intrepid Partners, LLC served as financial advisor to Energy Transfer's conflicts committee, while Guggenheim Securities, LLC served as financial advisor to Sunoco's special committee.
Potter Anderson & Corroon LLP acted as Delaware counsel for Energy Transfer's conflicts committee, and Richards, Layton & Finger, P.A. acted as Delaware counsel for Sunoco's special committee. Vinson & Elkins LLP and Akin Gump Strauss Hauer & Feld LLP also acted as legal counsel to the partnerships on the transaction, though the release does not specify which firm represented which partnership in that broader capacity.
The joint venture will operate more than 5,000 miles of crude oil and water gathering pipelines with crude oil storage capacity in excess of 11 million barrels. Energy Transfer's long-haul crude pipeline network transporting crude oil out of the Permian Basin to Nederland, Houston, and Cushing is explicitly excluded from the joint venture. The companies state the transaction is expected to be immediately accretive to distributable cash flow per limited partner unit for both Energy Transfer and Sunoco.
The release does not disclose any dollar valuation for the contributed assets, the joint venture as a whole, or either partner's contributed interest. No cash consideration, financing terms, or termination provisions are disclosed. Because this is a related-party asset combination rather than an arm's-length acquisition, no aggregate purchase price or premium analysis applies.