Energy Transfer Partners to Acquire Susser Holdings

  Energy Transfer Partners to Acquire Susser Holdings

    The first of a multi-step action plan for the overall retail business

    Ultimate intention to create a stand-alone diversified retail business

                 Significant commercial/operational synergies

Benefits from future growth via built in drop downs and external opportunities

 Transaction is accretive to DCF per unit for ETP while expected to be credit
                               ratings neutral

  Level of cash flow accretion is expected to increase as the overall action
                               plan is executed

Business Wire

DALLAS -- April 28, 2014

Energy Transfer Partners, L.P. (NYSE:ETP) today announced that it has entered
into a definitive merger agreement whereby ETP plans to acquire Susser
Holdings Corporation (NYSE:SUSS) in a unit and cash transaction valued at a
total consideration of approximately $1.8 billion. By acquiring Susser
Holdings, ETP will own the general partner (GP) interest and the incentive
distribution rights (IDRs) in Susser Petroleum Partners LP (NYSE:SUSP),
approximately 11 million SUSP common units (representing approximately 50.2 %
of SUSP’s outstanding units), and SUSS’ existing retail operations, consisting
of 630 convenience store locations.

Under the terms of the merger agreement, which has been unanimously approved
by the Boards of Directors of ETP and SUSS, the shareholders of Susser
Holdings will have the option to elect to receive either $80.25 in cash or
1.4506 ETP common units, or a combination of both, for each share held. The
shareholder election is subject to proration to ensure that aggregate cash
paid and common units issued will each represent 50% of the aggregate merger
consideration. Given the capital appreciation embedded in the stock price of
Susser Holdings, the receipt of ETP units on a tax deferred basis should be
attractive to long-term Susser shareholders.

ETP has entered into a support agreement with shareholders representing 10% of
the outstanding Susser Holdings’ shares, pursuant to which such shareholders
have agreed to vote their shares in favor of the merger and to elect to
receive 100% ETP common units as their consideration, subject to the same pro
ration as all other shareholders.

Susser Holdings has achieved a remarkable track record of sustained earnings
growth and currently operates 630 retail convenience stores that sell either
nationally or regionally branded gasoline or sell gasoline under the “Stripes”
brand. Through these retail stores and its fuel distribution network, Susser
Holdings is also one of the largest non-refiner suppliers of motor fuel in
Texas with 1.6 billion gallons sold in 2013. The focus of Susser Holdings in
Texas and its neighboring states has allowed it to capitalize on the strong
Texas economy, as well as the demographic changes occurring in these markets.

“The combination with Energy Transfer Partners and Sunoco is the right next
step for Susser Holdings and delivers significant value for Susser Holdings
shareholders. This transaction also enables our shareholders who elect ETP
units to participate in the future growth of the retail business,” said Sam L.
Susser, Chairman and CEO of Susser.

Bob Owens, CEO and President of Sunoco, Inc., added, “The combination of
Susser and our Sunoco retail business creates a platform to build a best in
class and unique business that is well diversified by both geography and
product lines.”

The addition of Susser to the Sunoco network of more than 5,000 retail stores,
primarily on the East Coast, broadens Sunoco's geographic footprint by giving
it an exceptional base in Texas and the surrounding states. The pro-forma
business will have tremendous fuel and retail capabilities that are expected
to generate sustained earnings growth over time.

Overall, synergy opportunities are expected to exceed $70 million annually
from fuel, merchandising and improved “buying power” reflecting economies of
scale. Those commercial and operational synergies are expected to be realized
within 6 - 12 months post-closing. Additional savings are likely as systems
and processes from both businesses are consolidated.

Multi-Step Action Plan

Our overall retail business strategy is expected to take place in several
steps. The first step is for ETP to acquire SUSS and on closing, to migrate
the SUSP GP/IDRs directly to ETP.

Post-closing, it is ETP’s intention to drop down to SUSP, in a synchronized
series of drop downs, all of the combined retail businesses. The consideration
for the drop downs is expected to be a combination of SUSP units and cash. The
cash proceeds to ETP from drop downs will provide for further deleveraging and
capital for new growth. This drop down plan also establishes a means to allow
ETP to completely segregate the combined retail business into SUSP, with its
own access to capital and balance sheet. Any drop downs would require
approvals of the Board of Directors of SUSP and ETP.

In addition to the drop downs, ETP expects the SUSP IDR cash flow it receives
to continue to grow as SUSP cash flows grow through organic growth,
acquisitions and expected synergies. ETP then anticipates that it would
propose to Energy Transfer Equity, L.P. (NYSE: ETE) that ETP transfer to ETE
the GP/IDRs of SUSP in exchange for ETP units currently held by ETE. Any
transfer of the GP/IDRs of SUSP to ETE in exchange for ETP units held by ETE
would be subject to the approval of the Board of Directors of each of ETE and

Strategic Rationale

  *The creation of a strong and diversified stand-alone retail business that
    provides significant value and synergy opportunities and a platform for
    future growth.
  *The anticipated Sunoco and SUSS drop downs into SUSP gives the overall
    retail business its own identity, tremendous scale, geographic and cash
    flow diversification, while eventually separating it from ETP.
  *Transaction is immediately accretive to distributable cash flow for ETP
    and is expected to be credit ratings neutral.
  *Each additional step in the overall action plan is expected to be
    incrementally cash flow accretive to ETP.


Bob Owens, President and Chief Executive Officer of Sunoco, Inc. will serve as
the President and CEO of the combined businesses, reporting to Kelcy Warren,
Chairman and CEO of ETP. Sam L. Susser will continue as Chairman of SUSP.

The management team will combine members from both organizations to prepare
for and execute the integration of the combined businesses.

Other Transaction Details

The transaction has been unanimously approved by the Board of Directors of
each ETP and Susser Holdings and is expected to close in the third quarter of
2014, subject to approval of the shareholders of Susser Holdings and customary
regulatory approvals.

SUSP will continue to be traded on the New York Stock Exchange (NYSE) as a
separate publicly traded master limited partnership (MLP) and maintain its
current headquarters in Houston, Texas.

In conjunction with the transaction, ETE has agreed to relinquish its right to
$35 million of annual incentive distributions from ETP to which it would
otherwise be entitled. Such relinquishment will continue for a period ending
on the earlier of 10 years or the date of the exchange of the SUSP GP/IDRs to


Barclays and Credit Suisse acted as financial advisors, Morgan Stanley & Co.
LLC delivered a fairness opinion to the Board of ETP. Vinson & Elkins acted as
legal counsel to ETP, and Bingham McCutchen acted as tax counsel to ETP. BofA
Merrill Lynch acted as financial advisor and Gibson, Dunn & Crutcher LLP acted
as legal counsel to Susser.

Conference Call Details

Energy Transfer and Susser will hold a joint conference call to discuss the
merger April 28, 2014, at 8:00a.m., Central Time (9:00a.m., Eastern Time).

The dial-in number for the call is (800) 510-0146 in the United States, or
+1(617) 614-3449 outside the United States, passcode 29204479. A live webcast
of the call may be accessed on the investor relations page of Energy
Transfer’s website at or Sussers’s website at The call will be available for replay from 04/28/2014
1:00p.m., Central Time – 05/05/2014 11:59p.m., Central Time by dialing (888)
286-8010, passcode 61684778. A replay of the broadcast will also be available
on Energy Transfer’s and Susser’s websites.

Additional Information

In connection with the transaction, ETP and SUSS will file a joint proxy
statement / prospectus and other documents with the SEC. Investors and
security holders are urged to carefully read the definitive joint proxy
statement / prospectus when it becomes available because it will contain
important information regarding ETP, SUSS, and the transaction.

A definitive joint proxy statement / prospectus will be sent to stockholders
of Susser seeking their approval of the transaction. Investors and security
holders may obtain a free copy of the definitive joint proxy statement /
prospectus (when available) and other documents filed by ETP and SUSS with the
SEC at the SEC's website, The definitive joint proxy statement /
prospectus (when available) and such other documents relating to ETP may also
be obtained free of charge by directing a request to Energy Transfer Partners,
L.P., Attn: Investor Relations, 3738 Oak Lawn Avenue, Dallas, Texas 75219, or
from ETP's website, The definitive joint proxy
statement / prospectus (when available) and such other documents relating to
SUSS may also be obtained free of charge by directing a request to Susser
Holdings Corporation, Attn: Investor Relations, 4525 Ayers St. Corpus Christi,
Texas 78415, or from SUSS's website,

ETP, SUSS and their respective directors and executive officers may, under the
rules of the SEC, be deemed to be "participants" in the solicitation of
proxies in connection with the proposed transaction. Information regarding
directors and executive officers of ETE’s general partner is contained in
ETE’s Form 10-K for the year ended December 31, 2013, which has been filed
with the SEC. Information regarding directors and executive officers of ETP’s
general partner is contained in ETP’s Form 10-K for the year ended December
31, 2013, which has been filed with the SEC. Information regarding Susser’s
directors and executive officers is contained in Susser’s definitive proxy
statement dated April 14, 2014, which is filed with the SEC. A more complete
description will be available in the registration statement and the proxy

Energy Transfer Partners, L.P. (NYSE: ETP) is a master limited partnership
owning and operating one of the largest and most diversified portfolios of
energy assets in the United States. ETP currently owns and operates
approximately 35,000 miles of natural gas and natural gas liquids pipelines.
ETP owns 100% of Panhandle Eastern Pipe Line Company, LP (the successor of
Southern Union Company) and Sunoco, Inc., and a 70% interest in Lone Star NGL
LLC, a joint venture that owns and operates natural gas liquids storage,
fractionation and transportation assets. ETP also owns the general partner,
100% of the incentive distribution rights, and approximately 33.5 million
common units in Sunoco Logistics Partners L.P. (NYSE: SXL), which operates a
geographically diverse portfolio of crude oil and refined products pipelines,
terminalling and crude oil acquisition and marketing assets. ETP’s general
partner is owned by ETE. For more information, visit the Energy Transfer
Partners, L.P. web site at

Susser Holdings Corporation (NYSE: SUSS) is a third-generation family led
business based in Corpus Christi, Texas, that operates 630 convenience stores
in Texas, New Mexico and Oklahoma, with 583 under the Stripes® banner and 47
under the Sac-N-Pac banner. Restaurant service is available in approximately
400 of its stores, primarily under the proprietary Laredo Taco Company® brand.
Susser Holdings also is majority owner and owns the general partner of Susser
Petroleum Partners LP. For more information, visit the Susser Holdings
Corporation website at

Susser Petroleum Partners LP (NYSE: SUSP) distributes approximately 1.6
billion gallons of motor fuel annually to Stripes® stores, independently
operated consignment locations, convenience stores and retail fuel outlets
operated by independent operators and other commercial customers in Texas, New
Mexico, Oklahoma and Louisiana.

Forward-Looking Statements

This press release may include certain statements concerning expectations for
the future that are forward-looking statements as defined by federal law. Such
forward-looking statements are subject to a variety of known and unknown
risks, uncertainties, and other factors that are difficult to predict and many
of which are beyond management’s control , including the ability to consummate
the proposed transaction; the ability to obtain the requisite regulatory
approvals, Susser shareholder approval and the satisfaction of other
conditions to consummation of the transaction; the ability of ETP to
successfully integrate Susser’s operations and employees; the ability to
realize anticipated synergies and cost savings; the potential impact of
announcement of the transaction or consummation of the transaction on
relationships, including with employees, suppliers, customers and competitors;
and the ability to achieve revenue growth. An extensive list of factors that
can affect future results are discussed in ETP’s Annual Reports on Form 10-K
and other documents filed from time to time with the SEC Commission. The
Partnerships undertake no obligation to update or revise any forward-looking
statement to reflect new information or events.

The information contained in this press release is available on our website at


Energy Transfer Partners, L.P.
Investor Relations:
Brent Ratliff, 214-981-0700
Media Relations:
Vicki Granado, 214-498-9272
Susser Holdings Corporation
Investor Relations:
Mary E. Sullivan, 361-693-3743
Executive Vice President, Chief Financial Officer
E.V. (Chip) Bonner, Jr., 361-693-3735
Executive Vice President & General Counsel
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