Stop Press: ETP Acquires Sunoco for $5.3 Billion

Just this morning Energy Transfer Partners (ETP), a huge pipeline company that owns 23,500 miles of pipelines and gathering systems, including the largest intrastate pipeline in Texas, announced they are buying Sunoco for $5.3 billion. One of the main reasons for the purchase? ETP said they have a growing interest in the Marcellus Shale and they want Sunoco’s assets in the Marcellus region—a sure sign that midstream and downstream will be where the action is for the foreseeable future. Infrastructure to move gas from point A to point B, and even to end users (consumers) will drive much of the activity in the Marcellus. In that light, the buyout/merger makes sense.

Sunoco is not a driller (“upstream”) but instead is mostly a downstream company, owning pipelines, terminals and marketing assets. Sunoco also has a network of approximately 4,900 retail locations in 23 states.

From the press release:

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