Energy Transfer, Sunoco Logistics in $2 Billion Pipeline Stake Sale -- Update
August 02 2016 - 09:42PM
Dow Jones News
By Josh Beckerman
Energy Transfer Partners LP and Sunoco Logistics Partners LP
agreed to a $2 billion sale of a minority stake of the Bakken
Pipeline Project.
The two companies and their partner Phillips 66 also announced
the completion of $2.5 billion of project-level financing for the
effort.
Energy Transfer and Sunoco Logistics will sell nearly half of
their 75% stake to an entity jointly owned by Enbridge Energy
Partners LP and Marathon Petroleum Corp.
The project will include a roughly 1,172-mile pipeline from
North Dakota to Illinois, and more than 700 miles of pipeline
converted to crude service from Illinois to Texas.
Energy Transfer continues to oversee construction, while Sunoco
Logistics will operate the pipeline upon completion.
Phillips 66 owns 25% of the project.
The Dakota Access Pipeline component is expected to deliver more
than 470,000 barrels of crude oil per day from North Dakota.
Enbridge Energy said the deal will provide "another important
link in our market access strategy" and "strong risk-adjusted
returns." Marathon said the transaction will be a significant step
in the growth of its midstream logistics business.
The sale is expected to close in the third quarter. Energy
Transfer and Sunoco Logistics plan to use proceeds to pay down debt
and fund growth projects.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
August 02, 2016 21:27 ET (01:27 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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