36.75 Percent Interest Sold for $2 Billion in Cash
Energy Transfer Continues to Oversee Construction
Sunoco Logistics to Operate Pipeline Upon Completion
DALLAS--(BUSINESS WIRE)--Aug. 2, 2016--
Energy Transfer Partners, L.P. (NYSE: ETP) and Sunoco
Logistics Partners L.P. (NYSE: SXL) today announced they have
signed an agreement to sell 36.75% of the Bakken Pipeline Project, which
includes the Dakota Access pipeline and the Energy Transfer Crude Oil
pipeline, to MarEn Bakken Company LLC (“MarEn”), an entity jointly owned
by Enbridge Energy Partners, L.P. and Marathon Petroleum Corporation
(“MPC”), for $2 billion in cash. The sale is expected to close in the
third quarter of 2016, subject to certain closing conditions. ETP and
SXL will receive $1.2 billion and $800 million in cash at closing,
respectively. As previously announced, the Bakken Pipeline entities have
arranged a $2.5 billion project financing facility that is expected to
provide substantially all of the remaining capital necessary to complete
the project. As a result, ETP and SXL plan to use the proceeds from the
sale of the equity interest in the project to MarEn to pay down debt and
to help fund their current growth projects. In addition, following the
closing of the transaction, all owners of the Bakken Pipeline will
participate on a pro rata basis for any incremental capital needs to
complete the project.
This Smart News Release features multimedia. View the full release here:
http://www.businesswire.com/news/home/20160802007081/en/
Upon closing, a subsidiary of MPC has committed to participate in a
forthcoming Dakota Access/Energy Transfer Crude Oil Pipeline open
season, and subject to the terms and conditions of the open season, make
a long-term volume commitment on the Bakken Pipeline Project. A new open
season is expected to be launched in the third quarter of 2016.
Bakken Holdings Company, LLC, a joint venture between ETP and SXL
(“Bakken Holdings”), owns a 75-percent membership interest in each of
Dakota Access, LLC (“Dakota Access”) and Energy Transfer Crude Oil
Company, LLC (“ETCO”), the entities responsible for developing, owning
and operating the Bakken Pipeline Project. The project will consist of
approximately 1,172 miles of new 30-inch diameter crude oil pipeline
from North Dakota to Patoka, Illinois, and more than 700 miles of
pipeline converted to crude service from Patoka to Nederland, Texas.
Bakken Holdings is selling 49-percent of its 75-percent interest
(36.75%) in Dakota Access and ETCO. The remaining 25-percent of each of
Dakota Access and ETCO is owned by wholly-owned subsidiaries of Phillips
66 (NYSE: PSX).
Upon closing, ownership in the Bakken Pipeline Project will be as
follows: ETP/SXL – 38.25%, MarEn 36.75% and PSX – 25%. ETP continues to
oversee construction of the pipeline, which is expected to be ready for
service at the end of this year. Once in operation, SXL will be the
operator.
The Dakota Access pipeline is currently expected to deliver in excess of
470,000 barrels per day of crude oil from the Bakken/Three Forks
production area in North Dakota to market centers in the Midwest. The
Dakota Access pipeline will provide shippers with access to Midwestern
refineries, potential unit-train rail loading facilities to facilitate
deliveries to East Coast refineries, and the Gulf Coast market. The
Energy Transfer Crude Oil pipeline, through an interconnection in
Patoka, Illinois with Dakota Access, will provide crude oil
transportation service from the Midwest to the Sunoco Logistics Partners
and Phillips 66 storage terminals located in Nederland, Texas.
Porter Hedges LLP acted as legal counsel to ETP and SXL, and Credit
Suisse Securities (USA) LLC acted as financial advisor.
About Energy Transfer Partners
Energy Transfer Partners, L.P. (NYSE: ETP) is a master limited
partnership that owns and operates one of the largest and most
diversified portfolios of energy assets in the United States. ETP’s
subsidiaries include Panhandle Eastern Pipe Line Company, LP (the
successor of Southern Union Company) and Lone Star NGL LLC, which owns
and operates natural gas liquids storage, fractionation and
transportation assets. In total, ETP currently owns and operates more
than 62,500 miles of natural gas and natural gas liquids pipelines. ETP
also owns the general partner, 100% of the incentive distribution
rights, and approximately 67.1 million common units in Sunoco Logistics
Partners L.P. (NYSE: SXL), which operates a geographically diverse
portfolio of crude oil and refined products pipelines, terminalling and
crude oil acquisition and marketing assets. ETP’s general partner is
owned by Energy Transfer Equity, L.P. For more information, visit
the Energy Transfer Partners, L.P. web site at www.energytransfer.com.
About Sunoco Logistics
Sunoco Logistics Partners L.P. (NYSE: SXL) is a master limited
partnership that owns and operates a logistics business consisting of a
geographically diverse portfolio of complementary crude oil, refined
products, and natural gas liquids pipeline, terminalling and acquisition
and marketing assets which are used to facilitate the purchase and sale
of crude oil, refined products, and natural gas liquids. SXL’s general
partner is a consolidated subsidiary of Energy Transfer Partners,
L.P. (NYSE: ETP). For more information, visit the Sunoco Logistics
Partners L.P. website at www.sunocologistics.com.
Forward-Looking Statements
This press release may include certain statements concerning
expectations for the future that are forward-looking statements as
defined by federal law. Such forward-looking statements are subject to a
variety of known and unknown risks, uncertainties, and other factors
that are difficult to predict and many of which are beyond management’s
control. An extensive list of factors that can affect future results are
discussed in the Partnerships’ Annual Report on Form 10-K and other
documents filed from time to time with the Securities and Exchange
Commission. The Partnerships undertake no obligation to update or revise
any forward-looking statement to reflect new information or events.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160802007081/en/
Source: Energy Transfer Partners, L.P. and Sunoco Logistics Partners L.P.
Energy Transfer
Investor Relations:
Energy
Transfer
Brent Ratliff, 214-981-0795
or
Media
Relations:
Granado Communications Group
Vicki Granado,
214-599-8785
Cell: 214-498-9272
or
Sunoco Logistics
Investor
Relations:
Peter Gvazdauskas, 215-977-6322
or
Media
Relations:
Jeff Shields, 215-977-6056