Energy Transfer and Sunoco announce strategic Permian Basin crude oil joint venture

Energy Transfer LP and Sunoco LP today announced the formation of a joint venture combining their respective crude oil and produced water gathering assets in the Permian Basin.

Energy Transfer will serve as the operator of the joint venture and contribute its Permian crude oil and produced water gathering assets and operations. Sunoco will contribute all its Permian crude oil gathering assets and operations to the joint venture. Energy Transfer’s long-haul crude pipeline network that provides transportation of crude oil out of the Permian Basin to Nederland, Houston, and Cushing is excluded from the joint venture.

The joint venture will operate more than 5,000 miles of crude oil and water gathering pipelines with crude oil storage capacity of more than 11 million barrels.

Energy Transfer will hold a 67.5% interest in the joint venture with Sunoco holding a 32.5% interest.

The formation of the joint venture has an effective date of July 1, 2024, and is expected to be immediately accretive to distributable cash flow per LP unit for both Energy Transfer and Sunoco.

Energy Transfer LP owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with more than 130,000 miles of pipeline and associated energy infrastructure. Energy Transfer’s strategic network spans 44 states with assets in all the major US production basins.

Sunoco LP is a leading energy infrastructure and fuel distribution master limited partnership operating in over 40 US states, Puerto Rico, Europe, and Mexico.