Sunoco Logistics Partners L.P. (SXL) is a master limited partnership (or MLP) that owns and operates a logistics business, consisting of pipeline, terminalling, and acquisition and marketing assets that are used to facilitate the purchase and sale of crude oil, refined products, and natural gas liquids (or NGLs). Following the acquisition on October 5, 2012, SXL became a consolidated subsidiary of Energy Transfer Partners L.P. (ETP). Energy Transfer Partners is the general partner of Sunoco Logistics Partners.
SXL has a diversified portfolio that is spread over 30 states in the United States. The company has four operating segments:
SXL had a market cap of ~$9.6 billion and an enterprise value of ~$12.6 billion (as of May 9, 2014). The company’s adjusted EBITDA for the last 12 months was $842 million. SXL is currently trading at the EV–to–EBITDA from 12 months ago of ~14.9x. Distribution per unit declared on April 23, 2014, was $0.695 per unit, or $2.78 per unit annualized. This amounts to a distribution yield of 3% for a stock price of $92.97 as of May 8, 2014.
On May 6, 2014, Sunoco Logistics announced a two-for-one split of its common units. The unit split will be effective through a distribution of one additional common unit for every one unit.
Sunoco Logistics Partners L.P. (SXL) is a master limited partnership (or MLP) that operates in the midstream business. The general partnership (or GP) interest of SXL is owned by Energy Transfer Partners (ETP); while the GP interest of ETP is owned by Energy Transfer Equity L.P. (ETE). Other energy players operating in the same sector as SXL include Enterprise Products Partners L.P. (EPD), Plains All American Pipeline L.P. (PAA), and Energy Transfer Partners L.P. (ETP). All of these companies are components of the Alerian MLP ETF (AMLP). ETE is a component of Global X MLP & Energy Infrastructure ETF (MLPX). Continue reading the next article in this series for detailed discussions on the first quarter of 2014 earnings and growth drivers of SXL.