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Sunoco Logistics Partners L.P. Message Board

  • stok1mom stok1mom Aug 17, 2012 12:13 AM Flag

    52-WEEK HIGH

    $44.84 52-week high. Wow, hope it goes higher.

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    • I will throw this into the mix to stir up interest: maybe SXL value is not in discounted cash flow or the calculated limited partner unit payout.....perhaps it is purely a play on the value of the assets it SXL controls. Recently pipline and refinery assets have seen significant money flow in to them (exampleBuffet buys up chunk of PSX). Could it be because in the regulatory hell of the USA another pipeline or refinery will never get approval to be built so those already in place are worth more just by scarcity alone? ETP is buying out the mothership Sun, ETP is an energy logistics transport company. With SUN buy out ETP will assume ownership of the General Partner status of SXL; but will not have complete control of the SXL assets because of the remaining interest of the limited partners (that is us). ETP may wish to have a 100% control of SXL assets to fully incorporate them into its own transport system and thereby get all the economies of sale. Is it possible ETP may next put together and attractive offer to buy out the limit partners of SXL (that is us)? my estimate is ETP would need to offer at least $60 per SXL unit to complete a buy out. Is mine the first whisper of what is to come? Comments?

      • 2 Replies to customstyleguy
      • ETP as the GP already will have complete control. Limited partners are in no kind of control (that's why they call them limited). ETP may want to simplify the structure what with ETE, ETP, RGP, SXL all part of the family makes it confusing. In which case they will offer a small premium, but there's no need to make a huge offer like you suggest. They hold the majority of units so can do what they like, no vote required and it would be a formality. Anyway, it would be a unit swap not a cash buyout.

      • customstyle : I heard that rumor on Cnbc. I don't think $60 a share will cut it. I think Etp will pass.
        My theroy is that the U.S. is going to become the new energy Saudi Arabia. I Think Mark West and other natural gas clients will triple current volume, in a couple years. Then coal will cut prices deep and the "energy price war" will be on. Margins will probably drop 30% but volume will spike 200%.
        I think the big money comes when SXl finds a ship builder that can move natural gas to Europe/Asia cheaper. That will jac-up profit margins and volume. God bless greed (is good). Let the good times roll.

    • and still only selling at 14 times earnings - this is a pretty low PE for such a high growth company.

46.61+1.03(+2.26%)11:23 AMEDT

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