Late last week, Sunoco Logistics Partners LP (SXL) reported that it has closed the acquisition of Excel Pipeline LLC, which owns the 52-mile Excel crude oil pipeline running from Duncan to a refinery in Wynnewood, both in Oklahoma. Sunoco Logistics purchased Excel from affiliates of Gary-Williams Energy Corp., which runs the Wynnewood refinery.
Sunoco Logistics has operated the Excel pipeline on behalf of Gary-Williams since 2007. As part of the transaction, Gary-Williams has entered into a 20-year throughput agreement to use the pipeline’s capacity.
Sunoco Logistics did not disclose the value of the Excel deal but expects the transaction to be immediately accretive and to add value to the partnership’s business, while extending its long-term relationship with Gary-Williams.
Philadelphia-based Sunoco Logistics Partners L.P. is a master limited partnership (MLP) that acquires, owns, and operates a geographically diverse portfolio of refined product and crude oil pipelines and terminal facilities. Its facilities are located in 13 states in the Northeast, the Midwest and the Southwest of the country. The partnership is 40% owned by oil refiner Sunoco Inc. (SUN).
We currently rate Sunoco Logistics units as Neutral.
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