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Sunoco Logistics Partners: An In-Depth Overview

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Who is Sunoco Logistics?

Sunoco Logistics Partners, L.P. (SXL) is a publicly traded MLP engaged principally in transportation, terminaling, and storage of crude oil, refined products, and NGLs (natural gas liquids) products. In addition to logistics services, Sunoco purchases and sells crude oil, refined products, and NGLs.

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Energy Transfer Group

Sunoco Logistics Partners (SXL) became part of the Energy Transfer family through the acquisition of Sunoco Inc. by Energy Transfer Partners (ETP) in October 2012. Before the acquisition, Sunoco Partners LLC, a wholly owned subsidiary of Sunoco Inc., held the general partner interest, IDRs (incentive distribution rights), and 32.4% of the limited partner interest in SXL. After the acquisition, all holdings of Sunoco Inc. in SXL were transferred to ETP. Now, ETP holds the general partner of SXL.

Energy Transfer Equity (ETE), the general partner of ETP, holds all the class H units in ETP. This entitles it to receive 90% of cash distribution generated from IDRs and GP (general partner) interests in SXL.

In addition to ETE, SXL, and ETP, the Energy Transfer Group includes the following:

  • Regency Energy Partners – Regency Energy Partners provides midstream natural gas services and recently merged with ETP.
  • Sunoco LP (SUN) – SUN is involved in retail marketing and wholesale distribution of refined products such as gasoline and middle distillates.

Key ETFs

Investors can add SXL to their portfolios by buying individual common units listed on a stock exchange or through ETFs that have exposure to Sunoco Logistics Partners (SXL). SXL is part of the Alerian MLP ETF (AMLP) and the First Trust North American Energy Infrastructure Fund (EMLP). SXL constitute ~4.87% of EMLP.

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