The retail units are expected to be leased to Stripes LLC, owned by Energy Transfer Partners. Stripes - the operator of retail convenience stores - will buy all the fuel that will be supplied to Texas by Sunoco LP.
Presently, Sunoco's prime customer of motor fuel is Stripes - as every year it buys above 1 billion gallons. Sunoco added that the Pico stores will be renamed as Stripes® convenience unit.
Stripes will be operating a total of 673 convenience stores in Texas, New Mexico and Oklahoma after the inclusion of the new Pico stores.
Sunoco is the master limited partnership which mainly supplies motor fuel to independent dealers, stores, distributors and commercial customers. Apart from its distribution business, the partnership also involves in the operation of retail fuel units and 150 convenience stores. This month, Sunoco completed the acquisition of a 31.58% equity interest in Sunoco LLC from an affiliate of Energy Transfer Partners.
Sunoco's parent company Energy Transfer Partners is engaged primarily in the gathering, processing, storage and transportation of natural gas. Additionally, the partnership holds a 70% stake in Lone Star NGL LLC, a joint venture that owns and operates natural gas liquids ("NGL") storage, fractionation and transportation assets in Texas, Louisiana and Mississippi.
Currently, Sunoco carries a Zacks Rank #2 (Buy), implying that the stock will outperform the broader U.S. equity market over the next one to three months. Energy Transfer Partners carries a Zacks Rank #3 (Hold).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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