Sunoco LP has completed its $7.3 billion acquisition of NuStar Energy, increasing Sunoco’s credit profile and financial stability, the companies announced May 3.
With NuStar’s incorporation into Sunoco, Sunoco expects to realize at least $150 million of expense and commercial synergies and at least $50 million per year of additional cash flow from refinancing activity.
After clearing a regulatory waiting period from the Federal Trade Commission, the merger was approved by NuStar unitholders at its May 1 special meeting. As of May 3, NuStar’s common units ceased trading on the New York Stock Exchange.
Sunoco also declared a quarterly distribution, representing a 4% increase, for first quarter 2024 of $0.875 per common unit or $3.50 annually.
The distribution will be paid on May 20 to common unitholders of record by May 13, including former NuStar unitholders who received Sunoco units upon the transactions’ closing.
RELATED
Recommended Reading
EU Adopts New Sanctions Against Russia, Including LNG
2024-06-24 - New restrictions aim to reduce Russia's profits from LNG, hitting the country's gas exports for the first time, but experts say it will likely have little impact on Russian revenues.
TotalEnergies Joins Ruwais LNG Project in UAE
2024-07-11 - French energy giant TotalEneriges joined the two-train 9.6 million tonnes per annum Ruwais LNG project in the United Arab Emirates with a 10% interest. The LNG project is expected to start sending out cargos in the second half of 2028.
Freeport LNG’s Slow Restart Stokes Concern Over Supply Risk
2024-07-23 - The 15-mtpa Freeport LNG facility remains under the spotlight of the global market as it slowly resumes operations after pausing ahead of Hurricane Beryl’s arrival along the U.S. Gulf Coast.
IGU: Global Liquefaction Capacity Expected to Grow by 75% by 2030
2024-07-02 - The International Gas Union (IGU) expects global liquefaction capacity to reach 700 mtpa by 2030, up 75% from 2023, driven by new FIDs and the start-up of other projects under construction.
Wars Complicate Energy Transition Despite US LNG Security Blanket
2024-06-10 - Analysts with Norway’s Equinor argue that increased levels of geopolitical conflict and outright wars “have made the energy transition more fragmented,” despite U.S. LNG creating an energy security blanket for Europe and elsewhere.