Porter Hedges represented Energy Transfer Partners, L.P. (NYSE: ETP) and Sunoco Logistics Partners L.P. (NYSE: SXL) in an agreement to sell 36.75% of the Bakken Pipeline Project, which includes the Dakota Access pipeline and the Energy Transfer Crude Oil pipeline, to MarEn Bakken Company LLC ("MarEn"), an entity jointly owned by Enbridge Energy Partners, L.P. and Marathon Petroleum Corporation ("MPC"), for $2 billion in cash. The sale is expected to close in the third quarter of 2016, subject to certain closing conditions.
ETP and SXL will receive $1.2 billion and $800 million in cash at closing, respectively. As previously announced, the Bakken Pipeline entities have arranged a $2.5 billion project financing facility that is expected to provide substantially all of the remaining capital necessary to complete the project.
The Dakota Access pipeline will provide shippers with access to Midwestern refineries, potential unit-train rail loading facilities to facilitate deliveries to East Coast refineries, and the Gulf Coast market. The Energy Transfer Crude Oil pipeline, through an interconnection in Patoka, Illinois with Dakota Access, will provide crude oil transportation service from the Midwest to the Sunoco Logistics Partners and Phillips 66 storage terminals located in Nederland, Texas.
Energy Transfer Partners, L.P. is a master limited partnership that owns and operates one of the largest and most diversified portfolios of energy assets in the United States. ETP's subsidiaries include Panhandle Eastern Pipe Line Company, LP (the successor of Southern Union Company) and Lone Star NGL LLC, which owns and operates natural gas liquids storage, fractionation and transportation assets. In total, ETP currently owns and operates more than 62,500 miles of natural gas and natural gas liquids pipelines.
Sunoco Logistics Partners L.P. is a master limited partnership that owns and operates a logistics business consisting of a geographically diverse portfolio of complementary crude oil, refined products, and natural gas liquids pipeline, terminalling and acquisition and marketing assets which are used to facilitate the purchase and sale of crude oil, refined products, and natural gas liquids. SXL's general partner is a consolidated subsidiary of ETP.
The Porter Hedges team was led by corporate partner Corey Brown and energy partner Bob Thomas with assistance from Brian Rose, Geoff Schultz, Adam Nalley, and Matt Savage.
For additional information on the transaction, please see the ETP press release here.
In the press:
"Energy Transfer, Sunoco Logistics in $2 Billion Pipeline Stake Sale," The Wall Street Journal
"Energy Transfer, Sunoco Sell Pipeline Stake to Marathon, Enbridge for $2 Billion" TheStreet
"Enbridge Energy Partners, Marathon Petroleum to buy $2B Stake in Pipeline System," Houston Business Journal
"Enbridge, Marathon Pay $2B for Bakken Pipeline Stake," Law360
"Porter Hedges, Norton Rose Fulbright and Weil Handle Multibillion-Dollar Deals," The Texas Lawbook
"Norton Rose Fulbright, Porter Hedges Work on Pipeline Deal," Texas Lawyer
"Deal Watch: Two Firms Behind Bedding Industry Megamerger," The American Lawyer