Sunoco (SUN) is a petroleum refiner and marketer and chemicals manufacturer with interests in logistics and coke making. According to Bloomberg, Sunoco lost $74 million during the past 12 months, making the firm the only unprofitable company during the past 12 months with market values over $1 billion in oil refining and marketing industry in the world.
To boost shareholder value, Sunoco hired Credit Suisse to conduct a comprehensive review of the company. It also plans to break apart its two remaining refineries. According to Barclays, Sunoco may be worth $2.17 billion more if the company is broken up and valued separately by its operations. Based on the sum-of-the-parts analysis, Barclays valued Sunoco at between $48 per share to $58 per share, which would give the company a combined equity value of $5.18 billion to $6.23 billion.
According to Macquarie Group’s analysis, Sunoco may be worth $44 a share to $49.30 a share based on the assumption of a shutdown of the refinery business and liquidation of the inventory. Clearly, Sunoco’s “sum-of-the-parts” far exceeds its current valuation.
Here are the five hedge funds have the largest positions in Sunoco’s stocks at the end of June:
1. Third Point – Dan Loeb: 3,000,000 shares
2. Omega Adivisors – Leon Cooperman: 2,975,012 shares
3. Perry Capital – Richard Perry: 2,025,000 shares
4. Jana Partners – Barry Rosenstein: 1,798,987 shares
5. Eton Park Capital – Eric Mindich: 1,550,000 shares
You can see the rest of the main holders here. Note that some hedge funds may have increased or reduced their positions in SUN since the end of second quarter.