Back to top

Analyst Blog

Energy pipelines and terminals operator, Sunoco Logistics Partners LP (SXL - Analyst Report) has inked a long-term deal with Shell Trading US Company (STUSCO), an affiliate of European energy major Royal Dutch Shell plc (RDS.A - Analyst Report). Per the deal, STUSCO will become an anchor customer of the Mariner South project of Sunoco.

Management reveals that in order to build high-standard export and import facilities of liquefied petroleum gases (LPG) in the Gulf Coast of U.S., the Mariner project will unite Mont Belvieu-based storage and fractionation terminals of Lone Star NGL LLC with the pipeline facilities of Sunoco, that run from Mont Belvieu, Texas to Nederland, Texas. Lone Star is a joint venture between natural gas pipeline operator, Energy Transfer Partners LP (ETP - Analyst Report) and natural gas service provider, Regency Energy Partners LP (RGP - Snapshot Report).  

The Mariner South project is expected to have a capacity to transport 6 million barrels of LPG per month initially. The project is expected to be online by the first quarter of 2015.

Philadelphia-based Sunoco, a master limited partnership (MLP), acquires, owns, and operates a geographically diverse portfolio of refined products and crude oil pipelines and terminal facilities. Sunoco Logistics is organized into four segments – Refined Products Pipeline System, Terminal Facilities, Crude Oil Pipeline System, and Crude Oil Acquisition and Marketing.

Sunoco currently retains a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.    

With low-risk and stable cash flow-generating energy infrastructure assets, Sunoco offers investors an opportunity to capture income growth through steadily-rising cash distributions and capital appreciation.

However, unfavorable regulatory changes by the Federal Energy Regulatory Commission (FERC) would impact the partnership’s results.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SUPER MICRO… SMCI 27.00 +10.25%
CANADIAN SO… CSIQ 38.34 +8.18%
BANCO DO BR… BDORY 16.78 +8.05%
CENTURY ALU… CENX 26.97 +7.97%
WILLDAN GRO… WLDN 11.38 +5.86%