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Energy Transfer Partners to Sell Susser Convenience Store Unit to Sunoco for USD 1.94bn.

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Vincent

MANews-(C)2009-2015

16 July 2015 - US-based energy companies Energy Transfer Partners, L.P. (NYSE: ETP) and Sunoco LP (NYSE: SUN) have agreed to the dropdown of 100% of Energy Transfer's Susser Holdings Corp. convenience store business for approximately USD 1.94bn.

In addition, there will be an exchange for 11m SUN units owned by SHC for another 11m new SUN units to a subsidiary of ETP.

For the SHC dropdown, SUN will pay to ETP approximately USD 970 m in cash and issue approximately 22 m SUN units valued at approximately USD 970m based on the five-day volume-weighted average price of SUN's common units as of 14 July 2015.

Pro forma for this transaction, ETP will remain the largest unitholder of SUN. The amount of SUN units being issued to ETP in this transaction reflects ETP's continued confidence in SUN's business and future growth prospects.

The timing of this dropdown transaction is driven by the desire to accelerate SUN's exposure to the retail business with its exciting backlog of organic growth opportunities and strong EBITDA performance.

For ETP, this transaction is expected to be immediately accretive to distributable cash flow for 2015 and beyond. For SUN, the transaction is breakeven with respect to distributable cash flow in 2015 and significantly accretive thereafter.

SHC's operations consist primarily of retail activity through the operation of convenience...

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