SUN - Sunoco: A Fossil Fuel Investment That Repays You Quickly

• Unlike many fossil fuel related investments, Sunoco is still attractive for long-term income investors despite the clean energy transition.
• The intrinsic value for their units appears to be 38.73% higher than their current unit price, even if their distributions see zero growth perpetually into the future.
• Even more importantly, unitholders could see their initial investment repaid in as little as ten years even after adjusting for inflation, thereby reducing the risks from the clean energy transition.
• When running a Monte Carlo Simulation to estimate the intrinsic value for their units, a very rarely seen 100% of the results were above the current price, indicating very low long-term downside risk.
• Following this analysis, it should not be surprising that I will be maintaining my bullish rating.

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