-By ArdorComm News Network
May 7, 2024
Sunoco has successfully completed the acquisition of NuStar Energy L.P. The merger received approval from NuStar unitholders during a Special Meeting held on May 1, 2024. As of May 3, 2024, NuStar’s common units have ceased trading on the New York Stock Exchange.
This strategic acquisition significantly bolsters Sunoco’s stability, credit profile, and financial foundation. The transaction is expected to yield a minimum of $150 million in expense and commercial synergies, with an additional $50 million per year of cash flow from refinancing activities anticipated. Sunoco anticipates immediate accretion to distributable cash flow per LP unit, with accretion projected to exceed 10% by the third year post-close.
Additionally, Sunoco’s Board of Directors has approved a quarterly distribution for the first quarter of 2024, amounting to $0.8756 per common unit, or $3.5024 per common unit on an annualized basis. The distribution is slated for payment on May 20, 2024, to common unitholders of record as of May 13, 2024, inclusive of former NuStar unitholders who received Sunoco common units following the merger.
This 4% increase in quarterly distribution, following last year’s 2% rise, underscores Sunoco’s ongoing confidence in its business and future distribution growth.
Sunoco will delve into further details regarding the NuStar acquisition and distribution increase during its first quarter 2024 conference call scheduled for May 8, 2024, at 9:00 a.m. Central Daylight Time.