Sunoco LP Reports First Quarter 2025 Financial and Operating Results
PR Newswire
DALLAS, May 6, 2025
-- Reports solid first quarter results including net income of $207 million,
Adjusted EBITDA(1) of $458 million and Distributable Cash Flow, as
adjusted(1), of $310 million
-- Announces a series of definitive agreements to:
-- Acquire Parkland Corporation in a cash and equity transaction
valued at $9.1 billion
-- Acquire TanQuid, a leading terminal operator in Germany and Poland
-- Increases quarterly distribution by 1.25%; on track to meet distribution
growth target of at least 5% for 2025
DALLAS, May 6, 2025 /PRNewswire/ -- Sunoco LP $(SUN)$ ("SUN" or the "Partnership") today reported financial and operating results for the quarter ended March 31, 2025.
Financial and Operational Highlights
Net income for the first quarter of 2025 was $207 million compared to $230 million in the first quarter of 2024.
Adjusted EBITDA(1) for the first quarter of 2025 was $458 million compared to $242 million in the first quarter of 2024.
Distributable Cash Flow, as adjusted(1) , for the first quarter of 2025 was $310 million compared to $176 million in the first quarter of 2024.
Adjusted EBITDA(1) for the Fuel Distribution segment for the first quarter of 2025 was $220 million compared to $218 million in the first quarter of 2024. The segment sold approximately 2.1 billion gallons of fuel in the first quarter of 2025. Fuel margin for all gallons sold was 11.5 cents per gallon for the first quarter of 2025.
Adjusted EBITDA(1) for the Pipeline Systems segment for the first quarter of 2025 was $172 million. The segment averaged throughput volumes of approximately 1.3 million barrels per day in the first quarter of 2025.
Adjusted EBITDA(1) for the Terminals segment for the first quarter of 2025 was $66 million compared to $24 million in the first quarter of 2024. The segment averaged throughput volumes of approximately 620 thousand barrels per day in the first quarter of 2025.
Distribution
On April 23, 2025, the Board of Directors of SUN's general partner declared a distribution for the first quarter of 2025 of $0.8976 per unit, or $3.5904 per unit on an annualized basis. This represents an increase of approximately 1.25%, or $0.0111 per unit, as compared with the quarter ended December 31, 2024.
This is the second consecutive quarterly increase in SUN's distribution and is consistent with SUN's capital allocation strategy and 2025 business outlook, which includes an annual distribution growth rate of at least 5%. Since 2022, SUN has increased distributions by approximately 9%, underscoring the Partnership's ongoing commitment to returning capital to its unitholders.
The quarterly distribution will be paid on May 20, 2025, to common unitholders of record on May 9, 2025.
Liquidity and Leverage
On March 20, 2025, SUN completed an offering of $1 billion of 6.250% senior notes due 2033. SUN used the net proceeds from the offering to repay its $600 million of 5.750% senior notes due 2025 and to repay a portion of the outstanding borrowings under its $1.5 billion revolving credit facility.
At March 31, 2025, SUN had long-term debt of approximately $7.7 billion and no borrowings outstanding on its $1.5 billion revolving credit facility. SUN's leverage ratio of net debt to Adjusted EBITDA(1) , calculated in accordance with its revolving credit facility, was 4.1 times at the end of the first quarter.
Capital Spending
SUN's total capital expenditures in the first quarter of 2025 were $101 million, which included $75 million of growth capital and $26 million of maintenance capital. This includes the Partnership's proportionate share of capital expenditures related to its joint ventures with Energy Transfer of $18 million for growth capital and $2 million for maintenance capital.
Recent Developments
-- On May 5, 2025, the Partnership announced its entry into a definitive
agreement to acquire Parkland Corporation in a cash and equity
transaction valued at $9.1 billion. The Partnership expects the
acquisition to be immediately accretive to unitholders. The transaction
is expected to close in the second half of 2025, subject to customary
closing conditions.
-- On March 12, 2025, the Partnership executed a definitive agreement to
acquire TanQuid GmbH & Co. KG ("TanQuid") for approximately EUR500
million including approximately EUR300 million of assumed debt. TanQuid
is Germany's largest independent terminal operator with a portfolio of 15
terminals located in Germany and one terminal located in Southwestern
Poland. This infrastructure serves an important role in the European fuel
distribution supply chain, is supported by a high-quality customer base,
and further expands and diversifies SUN's cash flows with stable,
fee-based income. The Partnership expects the acquisition to be
immediately accretive to unitholders. The transaction is expected to
close in the second half of 2025, subject to customary closing conditions,
and will be funded using cash on hand and amounts available under SUN's
revolving credit facility.
SUN's segment results and other supplementary data are provided after the financial tables below.
(1) Adjusted EBITDA and Distributable Cash Flow, as adjusted, are non-GAAP
financial measures of performance that have limitations and should not be
considered as a substitute for net income. Please refer to the discussion
and tables under "Supplemental Information" later in this news release
for a discussion of our use of Adjusted EBITDA and Distributable Cash
Flow, as adjusted, and a reconciliation to net income.
Earnings Conference Call
Sunoco LP management will hold a conference call on Tuesday, May 6, 2025, at 9:00 a.m. Central Time (10:00 a.m. Eastern Time) to discuss results and recent developments. To participate, dial 877-407-6184 (toll free) or 201-389-0877 approximately 10 minutes before the scheduled start time and ask for the Sunoco LP conference call. The call will also be accessible live and for later replay via webcast in the Investor Relations section of Sunoco's website at www.sunocolp.com under Webcasts and Presentations.
About Sunoco LP
Sunoco LP (NYSE: SUN) is a leading energy infrastructure and fuel distribution master limited partnership operating in over 40 U.S. states, Puerto Rico, Europe, and Mexico. The Partnership's midstream operations include an extensive network of approximately 14,000 miles of pipeline and over 100 terminals. This critical infrastructure complements the Partnership's fuel distribution operations, which serve approximately 7,400 Sunoco and partner branded locations and additional independent dealers and commercial customers. SUN's general partner is owned by Energy Transfer LP (NYSE: ET).
Forward-Looking Statements
This news release may include certain statements concerning expectations for the future that are forward-looking statements as defined by federal law. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management's control. An extensive list of factors that can affect future results, including future distribution levels, are discussed in the Partnership's Annual Report on Form 10-K and other documents filed from time to time with the Securities and Exchange Commission. The Partnership undertakes no obligation to update or revise any forward-looking statement to reflect new information or events.
The information contained in this press release is available on our website at www.sunocolp.com.
Contacts
Investors:
Scott Grischow, Treasurer, Senior Vice President -- Finance
(214) 840-5660, scott.grischow@sunoco.com
Media:
Chris Cho, Senior Manager -- Communications
(469) 646-1647, chris.cho@sunoco.com
-- Financial Schedules Follow --
SUNOCO LP
CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
(unaudited)
------------------------------------------------------------------------------
March 31, December 31,
2025 2024
----------------------- ------------------------
ASSETS
Current assets:
Cash and cash equivalents $ 172 $ 94
Accounts receivable, net 1,031 1,162
Inventories, net 1,111 1,068
Other current assets 199 141
Total current assets 2,513 2,465
Property and equipment 8,995 8,914
Accumulated depreciation (1,389) (1,240)
----------------------- ------------------------
Property and equipment,
net 7,606 7,674
Other assets:
Operating lease
right-of-use assets, net 495 477
Goodwill 1,477 1,477
Intangible assets, net 540 547
Other non-current assets 435 400
Investments in
unconsolidated
affiliates 1,276 1,335
Total assets $ 14,342 $ 14,375
======================= ========================
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $ 1,004 $ 1,255
Accounts payable to
affiliates 128 199
Accrued expenses and other
current liabilities 460 457
Operating lease current
liabilities 31 34
Current maturities of
long-term debt 2 2
Total current
liabilities 1,625 1,947
Operating lease non-current
liabilities 500 479
Long-term debt, net 7,671 7,484
Advances from affiliates 77 82
Deferred tax liabilities 161 157
Other non-current
liabilities 152 158
Total liabilities 10,186 10,307
Commitments and
contingencies
Equity:
Limited partners:
Common unitholders
(136,327,654 units
issued and
outstanding as of
March 31, 2025 and
136,228,535
units issued and
outstanding as of
December 31, 2024) 4,159 4,066
Class C unitholders -
held by subsidiaries
(16,410,780 units issued
and outstanding as of
March 31, 2025 and
December 31, 2024) -- --
Accumulated other
comprehensive income
(loss) (3) 2
----------------------- ------------------------
Total equity 4,156 4,068
----------------------- ------------------------
Total liabilities and
equity $ 14,342 $ 14,375
======================= ========================
SUNOCO LP
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions, except per unit data)
(unaudited)
----------------------------------------------------------------------------
Three Months Ended March 31,
------------------------------------------------
2025 2024
Revenues $ 5,179 $ 5,499
COSTS AND EXPENSES:
Cost of sales 4,526 5,015
Operating expenses 143 88
General and
administrative 39 36
Lease expense 16 18
Loss on disposal of
assets 3 2
Depreciation,
amortization and
accretion 156 43
----------------------- -----------------------
Total cost of sales and
operating expenses 4,883 5,202
OPERATING INCOME 296 297
OTHER INCOME (EXPENSE):
Interest expense, net (121) (63)
Equity in earnings of
unconsolidated
affiliates 32 2
Loss on extinguishment of
debt (2) --
Other, net -- 1
----------------------- -----------------------
INCOME BEFORE INCOME TAXES 205 237
Income tax expense
(benefit) (2) 7
----------------------- -----------------------
NET INCOME $ 207 $ 230
======================= =======================
NET INCOME PER COMMON
UNIT:
Basic $ 1.22 $ 2.29
Diluted $ 1.21 $ 2.26
WEIGHTED AVERAGE COMMON
UNITS OUTSTANDING
Basic 136,267,512 84,424,748
Diluted 136,936,311 85,259,238
CASH DISTRIBUTION PER
COMMON UNIT $ 0.8976 $ 0.8756
SUNOCO LP
SUPPLEMENTAL INFORMATION
(Dollars and units in millions)
(unaudited)
----------------------------------------------------------------------------
Three Months Ended March 31,
------------------------------------------------
2025 2024
----------------------- -----------------------
Net income $ 207 $ 230
Depreciation,
amortization and
accretion 156 43
Interest expense, net 121 63
Non-cash unit-based
compensation expense 4 4
Loss on disposal of
assets 3 2
Loss on extinguishment of
debt 2 --
Unrealized (gains) losses
on commodity
derivatives (1) 13
Inventory valuation
adjustments (61) (130)
Equity in earnings of
unconsolidated
affiliates (32) (2)
Adjusted EBITDA related
to unconsolidated
affiliates 50 3
Other non-cash
adjustments 11 9
Income tax expense
(benefit) (2) 7
----------------------- -----------------------
Adjusted EBITDA (1) $ 458 $ 242
Adjusted EBITDA (1) $ 458 $ 242
Adjusted EBITDA related
to unconsolidated
affiliates (50) (3)
Distributable cash flow
from unconsolidated
affiliates 49 3
Cash interest expense (118) (54)
Current income tax
expense (5) (3)
Maintenance capital
expenditures (2) (24) (14)
----------------------- -----------------------
Distributable Cash Flow 310 171
Transaction-related
expenses -- 5
----------------------- -----------------------
Distributable Cash Flow,
as adjusted (1) $ 310 $ 176
======================= =======================
Distributions to Partners:
Limited Partners $ 122 $ 119
General Partner 39 36
----------------------- -----------------------
Total distributions to be
paid to partners $ 161 $ 155
======================= =======================
Common Units outstanding -
end of period 136.3 84.4
(1) Adjusted EBITDA is defined as earnings before net interest expense,
income taxes, depreciation, amortization and accretion expense, allocated
non-cash compensation expense, unrealized gains and losses on commodity
derivatives and inventory valuation adjustments, and certain other
operating expenses reflected in net income that we do not believe are
indicative of ongoing core operations, such as gains or losses on
disposal of assets and non-cash impairment charges. We define
Distributable Cash Flow as Adjusted EBITDA less cash interest expense,
including the accrual of interest expense related to our long-term debt
which is paid on a semi-annual basis, current income tax expense,
maintenance capital expenditures and other non-cash adjustments. For
Distributable Cash Flow, as adjusted, certain transaction-related
adjustments and non-recurring expenses are excluded.
We believe Adjusted EBITDA and Distributable Cash Flow, as adjusted, are
useful to investors in evaluating our operating performance because:
Adjusted EBITDA is used as a performance measure under our revolving
credit facility; securities analysts and other interested parties use
such metrics as measures of financial performance, ability to make
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