Texas-based Energy Transfer Partners LP has agreed to buy Sunoco Inc. for $5.3 billion in shares and cash to add oil transportation and distribution assets.


The firm, based in Dallas, is a natural gas pipeline owner and has been seeking to diversify, Bloomberg News reported.


"Our goal is to derive more of our distributable cash flow from the transportation of heavier hydrocarbons like crude oil, natural gas liquids and refined products," said Kelcy Warren, Energy Transfer CEO, in a statement.


Sunoco, an owner of oil refineries since 1895, said last year it would sell or shut down its last two refineries in eastern Pennsylvania because they were losing money.


Its logistics and retail business will continue to be based in Philadelphia.