Sunoco Logistics Partners reports earnings for the first quarter 2012

PHILADELPHIA, Pa. - Sunoco Logistics Partners L.P. (SXL)  on May 2 announced net income attributable to owners for the first quarter 2012 of $95 million ($0.77 per unit diluted), compared with $48 million ($0.36 per unit diluted) for the first quarter 2011.

Highlights of the first quarter include:

n  Adjusted EBITDA of $161 million.

n  Record distributable cash flow of $122 million.

n  Completed two open seasons for crude pipeline projects in West Texas.

"Demand for our services and assets remained high on continued strong interest for West Texas crude," said Michael J. Hennigan, president and chief executive officer. "Market opportunities within our crude oil business contributed to another excellent quarter."

Commenting on the Partnership's previously announced West Texas crude expansion projects, Hennigan said, "With successful open seasons for our West Texas-Houston and West Texas-Longview projects behind us, we stand ready to meet customer needs now and in the future. An additional open season for our West Texas-Nederland project is currently under way and we are encouraged by the interest we've seen to date. These projects, collectively totaling approximately 110 thousand barrels per day, demonstrate that our attractively positioned assets can bring Permian Basin crude to markets where it makes sense for customers."

Discussing additional organic growth initiatives for the Partnership, Hennigan said, "From an NGL perspective, our Mariner West project, the first ethane pipeline solution in the Marcellus area, is on schedule for a mid-2013 start-up. We are still confident in a Mariner East project as our ability to access waterborne markets will be important as Marcellus and Utica production continues to grow."

In April 2012, Sunoco, Inc. announced that it has entered into a definitive merger agreement to be acquired by Energy Transfer Partners, L.P. The transaction is expected to close in the third or fourth quarter 2012, subject to approval by Sunoco shareholders and customary regulatory approvals.

Energy Transfer Partners, Regency Partners plan new fractionation unit

HOUSTON, Texas - Energy Transfer Partners, L.P. (NYSE: ETP) and Regency Energy Partners LP (NYSE: RGP) on Feb. 16 announced that their joint venture, Lone Star NGL LLC, will construct a second 100,000 barrel per day (b/d) natural gas liquids fractionation facility at Mont Belvieu, Texas.

Supported by multiple long-term contracts, the second fractionator is necessary to handle the increasing NGL barrels delivered via the partnerships' Woodford Shale, Eagle Ford Shale and Permian Basin infrastructure, including Lone Star's 570-mile West Texas Gateway NGL Pipeline.

Lone Star is on schedule to complete its West Texas Gateway NGL Pipeline and initial 100,000 b/d fractionator at Mont Belvieu in the first quarter of 2013, and expects this second fractionator to be completed in the first quarter of 2014. At an estimated cost of $350 million, the project will also include interconnectivity infrastructure to provide NGL suppliers and NGL markets with significant access to storage, other fractionators, pipelines and multiple markets along the Texas and Louisiana Gulf Coast.

"With the capacity of our first fractionator fully contracted, and increasing customer demand for NGL outlets, the addition of a second fractionator was necessary," said Greg Bowles, senior vice president of Lone Star. "Our two new fractionators and our West Texas Gateway system are all supported by long-term agreements. These assets, along with other projects we are pursuing in these prolific regions, demonstrate our strong commitment to providing full NGL services for our customers."

Amerigas buying Energy Transfer's propane operations

Energy Transfer Partners LP (NYSE: ETP) has agreed to sell its propane operations for $2.8 billion to AmeriGas Partners LP (NYSE: APU), a deal that would free Energy Transfer to focus on its natural gas pipeline business.

Unit holders of Energy Transfer, which had been one of the largest propane marketers in the U.S., will receive about $1.5 billion in cash and about $1.3 billion in AmeriGas common units.

The deal, expected to close late this year or early next year, also includes the assumption of $71 million in debt.

Energy Transfer, Regency to pay $1.93 billion for LDH Energy

DALLAS, Texas - Energy Transfer Partners LP (NYSE: ETP), the third-largest U.S. pipeline partnership, on March 22 announced that will join with an affiliate to buy a pipeline and natural-gas liquids processing plants in Texas for $1.93 billion in cash.

Energy Transfer and Regency Energy Partners LP (Nasdaq: RGNC) will buy LDH Energy Asset Holdings LLC, which owns and operates a natural-gas liquids storage, fractionation and transportation business, the companies said in a statement.

LDH owns and operates a natural gas liquids, or NGL, storage, fractionation and transportation business. LDH's storage assets are primarily located in Mont Belvieu, Texas, one of the largest NGL storage, distribution and trading complexes in North America. Its West Texas Pipeline transports NGLs through a 1,066-mile intrastate pipeline system that originates in the Permian Basin in west Texas, passes through the Barnett Shale production area in north Texas and terminates at the Mont Belvieu storage and fractionation complex. LDH also owns and operates fractionation and processing assets located in Louisiana.

Energy Transfer will pay $1.35 billion for 70 percent of a joint venture that will own the assets, and Regency will pay $578 million for the remaining 30 percent stake. Energy Transfer Partners will operate the assets, the companies, both based in Dallas, said in the statement.

The purchase "suits us very well at a time when we really are trying to move into the transfer of liquids," Kelcy Warren, chief executive officer of Energy Transfer, said in an interview. "We haven't been a big player in that market; that’s about to change."

Energy Transfer and Regency are both controlled by Dallas-based Energy Transfer Equity LP. (NYSE: ETE).

The joint venture will be controlled by a two-member board with a representative from each company. The companies said they will initially finance the purchase with their existing revolving credit lines.

Copano, Energy Transfer form joint venture for NGL deliveries In Texas

Copano Energy LLC (Nasdaq: CPNO) and Energy Transfer Partners LP (NYSE: ETP) have formed a joint venture and agreed to spend a combined $52 million to construct an 83-mile pipeline to deliver Copano's natural-gas liquids to a Texas refiner.

Copano President and Chief Executive R. Bruce Northcutt said the venture will support the Houston-based company's production growth in the Eagle Ford Shale. The natural-gas gathering and transmission company has operations in Oklahoma, Texas, Wyoming and Louisiana.