August 20, 2012 [Zacks] - Philadelphia-based Sunoco Logistics Partners L.P., a master limited partnership (MLP), acquires, owns and operates a geographically diverse portfolio of refined product and crude oil pipelines and terminal facilities.
Its facilities are located in 17 states in the Northeast, the Midwest, the Southeast and the Southwest of the country.
We remain optimistic on the crude oil pipelines and terminals operator’s near-term prospects, supported by consistency in its earnings/cash flows, attractive fundamentals and a positive outlook.
Sunoco Logistics is organized into four segments – Refined Products Pipeline System, Terminal Facilities, Crude Oil Pipeline System, and Crude Oil Acquisition and Marketing.
The partnership has established a track record of consistent distribution growth – its current quarterly distribution of 47 cents per unit ($1.88 per unit annualized) is up from 15 cents per unit (60 cents per unit annualized) at the time of its 2002 IPO.
Based on its financials, we trust that Sunoco Logistics’ current yield of more than 4% could be maintained even in periods of prolonged difficult economic environment.
Overall, we believe Sunoco Logistics is favorably positioned to continue accelerating revenue/earnings growth over the next few quarters. Considering its leverage to high crude prices and the ever expanding demand for energy infrastructure, we believe Sunoco Logistics is in bargain territory.
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Some of Sunoco’s Storage Terminals in TankTerminals.com: Aston Pennsylvania, Romulus Michigan, Columbus Ohio, Manassas Virginia, East Boston Massachusetts, Nederland Texas
Total Number of Sunoco Facilities in TankTerminals.com: 43
