SXL

Sunoco Logistics Partners LP

Energy


Presented:04/25/2016
Price:$28.35
Cap:$7.67B
Current Price:no data
Cap:no data

Presented

Date04/25/2016
Price$28.35
Market Cap$7.67B
Ent Value$13.78B
P/E Ratio63x
Book Value$24.46
Div Yield0.07%
Shares O/S270.40M
Ave Daily Vol1,660,244
Short Int1.59%

Current

Priceno data
Market Capno data
Sunoco Logistics Partners LP is a master limited partnership company that owns and operates a logistics business, consisting of a geographically diverse portfolio of complementary pipeline, terminalling, and acquisition and marketing assets which are used to facilitate the purchase and sale of crude oil, natural gas liquids and refined products. It operates through three segments: Crude Oil, Natural Gas Liquids and Refined Products. The Crude Oil segment provides transportation, terminalling and acquisition and marketing services to crude oil markets throughout the southwest, midwest and northeastern U.S. The Natural Gas Liquids segment transports, stores, and executes acquisition and marketing activities utilizing a complementary network of pipelines, storage and blending facilities, and strategic off-take locations that provide access to multiple natural gas liquids markets. The Refined Products segment provides transportation and terminalling services. The company was founded on October 15, 2001 and is headquartered Newtown Square, PA.

Publicly traded companies mentioned herein: Energy Transfer Equity LP (ETE), Energy Transfer Partners LP (ETP), Phillips 66 (PSX), Sunoco Logistics Partners LP (SXL)

Highlights

The presenter is long shares of Sunoco Logistics Partners (SXL), thinking its backlog and the projects that management is presently executing should provide a 20% IRR over the next 24 months. There is also significant upside to be had if commodities continue to recover given the high ROC of incremental expansion projects and SXL’s trading business. While there are uncertainties associated with being a member of the Energy Transfer family and project delays, the presenter thinks the quality of assets and upside of owning stock at 11x his 2018 EBITDA estimate outweigh the risks.

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Idea Discussion

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