Sunoco Logistics’ focus region
Sunoco Logistics Partners (SXL) appears to be well placed for 2017, considering its strong presence in the prolific Permian and Northeast regions. Both regions are leading in production growth following the slight recovery in crude oil and natural gas prices, and the trend is expected to continue in 2017.
According to the recent rigs report published by Baker Hughes (BHI), the rig count in the Permian region increased to 303 as of February 17, 2017, as compared to its all-time low of 134 during April 2016.
On Permian regions growth prospects, Michael Hennigan, SXL’s CEO (chief executive officer), stated: “Recent industry forecasts suggest substantial crude oil production growth in 2017. To date, we have developed 11 major crude projects and are poised to expand by way of Permian Express 3 to address additional takeaway capacity when the market needs it. We are excited about the prospects of two recently executed Permian strategic initiatives.”
The two initiatives include the asset acquisition from Vitol in the Midland basin and the joint venture with ExxonMobil.