Barclays (NYSE:BCS) sees the projected growth rate of Sunoco Logistics Partners (NYSE:SXL) as being conservative, and believe guidance is lower than what the sustainable growth rate of the company will be over the long term.
" While '11 distribution growth guidance is below consensus, SXL should still post above-average growth. We believe 6% guidance in '11 is conservative, as SXL will generate incremental cash flow from $400MM of expansion capex in '10. We expect 7.5% growth in 2011 and view 6% as more of a long-term sustainable growth rate for SXL," said Barclays.
"Our $83 PT is based on a distribution run rate of $5.00 (previously $4.97) and 6% yield (previously 6.25%). Rolling forward our distribution estimate one quarter more than offsets slightly lower '11 growth rate."
SXL closed Monday at $80.04, gaining $0.05, or 0.06 percent. Barclays raised their price target on them from $80 to $83.
Showing posts with label Sunoco Logistics. Show all posts
Showing posts with label Sunoco Logistics. Show all posts
Tuesday, November 2, 2010
Tuesday, June 29, 2010
Sunoco Logistics (NYSE:SXL) Acquires Texon L.P. (NYSE:TXT) Butane Business
A butane blending business of Texon L.P. (NYSE:TXT) is the latest acquisition of Sunoco Logistics (NYSE:SXL), which reportedly bought the unit for $140 million plus inventory.
The acquisition will be funded through a $100 million loan via Sunuco Corp.'s revolving credit facility.
The butane business includes, along with its butane/gas blending technology, several contracts with giant terminal operator who use the technology.
Sunoco and Texon are expected to close the deal on July 1.
The acquisition will be funded through a $100 million loan via Sunuco Corp.'s revolving credit facility.
The butane business includes, along with its butane/gas blending technology, several contracts with giant terminal operator who use the technology.
Sunoco and Texon are expected to close the deal on July 1.
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