- 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.
For further details see:
Sunoco: A Fossil Fuel Investment That Repays You Quickly