Sunoco Logistics Partners’ merger with affiliated business venture Energy Transfer Partners, which is based in Dallas, is likely to divert money from its investor pipeline to cash reserves and annual savings.

That’s good news for the Newtown Square firm but bad news for investors, and as a result, Sunoco Logistics’ stock has sunk 11 percent since the deal was announced on Nov. 21, according to a Philadelphia Inquirer report by Joseph DiStefano.

“Folding ETP into Sunoco Logistics has the effect of reducing the total cash distribution requirement, enabling the group to shore up its cash position, reduce its borrowing costs, and conserve nearly $900 million annually by not paying it directly to investors,” Gimme Credit analyst Philip C. Adams said.

While stockholders have been further warned of potential credit rating downgrades, bondholders are encouraged by the prospect that they are more likely to get paid.

Read more about the implications of the merger in the Philadelphia Inquirer here, and check out previous DELCO Today coverage of Sunoco Logistics here.