HOUSTON --"In mid-October, we installed our first Sunoco fuel sign over a newly constructed Stripes convenience store north of Houston, and we look forward to continuing the rollout of our iconic fuel brand across Stripes' high-growth markets," Bob Owens, president and CEO of Sunoco LP, formerly Susser Petroleum Partners LP, said in announcing financial and operating results for the three and nine months ended Sept. 30, 2014, and in providing an update on recent merger and acquisition developments.
For full financial results and M&A details, see related story.
"During the third quarter, we set the stage for what we expect to be the start of an aggressive growth campaign for Sunoco LP, with the first dropdown on Oct. 1, 2014, of the Mid-Atlantic Convenience Stores (MACS) assets from [Energy Transfer Partners LP] to SUN, our agreement to acquire the Aloha Petroleum wholesale and retail business in Hawaii and new equity and bank financings totaling more than $1.6 billion to help finance that growth and strengthen our balance sheet. The MACS and Aloha transactions combined approximately triple Sunoco LP's EBITDA."
He continued, "We expect to further our expansion in 2015 as our parent, ETP, begins to drop down the high-quality assets of Sunoco Inc. and Susser Holdings. We expect to grow not only through asset dropdowns from our parent, but also through organic expansion of the partnership and of the legacy Sunoco and Stripes businesses, as well as through opportunistic acquisitions like Aloha that make sense strategically and financially."
Houston-based Sunoco is a master limited partnership (MLP) that primarily distributes motor fuel to convenience stores, independent dealers, commercial customers and distributors. SUN also operates more than 100 c-stores and retail fuel sites. SUN's general partner is a wholly owned subsidiary of ETP. While primarily engaged in natural gas, natural gas liquids, crude oil and refined products transportation, ETP also operates a retail business with a network of more than 5,500 company- or independently-operated retail fuel outlets and c-stores through its wholly owned subsidiaries, Sunoco Inc. and Stripes LLC.
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