Former position ETP just announced ink drying on an $816 million deal to sell retail gasoline assets to Sunoco; the second wave of such sales to Sunoco.
In a sense it seems like ETP is doubling down on their plans to serve as midstream logistics (notably to the Bakkens), oil prices be damned.
I really am very intrigued by certain key plays in the oil sector. I know they are a charred grounds right now, but that is historically where I make most my money anyway. I just happened to have had the bad fortune of being at ground zero when the sky lit up this time around. It happens, unfortunately.
There will be a few more energy sector ideas in the new issue of the IIR. I found one very tantalizing play which is completely shrugging off the US oil meltdown.
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Hey Cain — fyi, they are the general partner of SUN and are planning to drop the remaining assets to them over time… this gives ETP 1) cash now; 2) IDR cash flows… this leaves them with skin in the game, though I’d suspect SUN cash flows are currently probably only a smaller percent of ETP’s flows.
Ah of course they are. Thanks, I was talking off my hat. Should have consulted my prior notes.