Sunoco LP (NYSE: SUN) ("SUN" or the "Partnership") today reported financial and operating results for the quarter ended June 30, 2024.
Financial and Operational Highlights
Net income for the second quarter of 2024 was $501 million compared to net income of $87 million in the second quarter of 2023.
Adjusted EBITDA(1) for the second quarter of 2024 was $320 million compared to $250 million in the second quarter of 2023. Adjusted EBITDA(1) for the second quarter of 2024 includes approximately $80 million of one-time transaction-related expenses(2).
Distributable Cash Flow, as adjusted(1), for the second quarter of 2024 was $295 million compared to $175 million in the second quarter of 2023.
Adjusted EBITDA(1) for the Fuel Distribution segment in the second quarter of 2024 was $245 million compared to $226 million in the second quarter of 2023. Adjusted EBITDA(1) for the second quarter of 2024 includes approximately $1 million of one-time transaction-related expenses(2). The segment sold approximately 2.2 billion gallons of fuel in the second quarter of 2024, an increase of 5% from the second quarter of 2023. Fuel margin for all gallons sold was 11.8 cents per gallon for the second quarter of 2024 compared to 11.9 cents per gallon in the second quarter of 2023.
Adjusted EBITDA(1) for the Pipeline Systems segment in the second quarter of 2024 was $53 million. Adjusted EBITDA(1) for the second quarter of 2024 includes approximately $58 million of one-time transaction-related expenses(2). The segment averaged throughput volumes of approximately 1.3 million barrels per day in the second quarter of 2024.
Adjusted EBITDA(1) for the Terminals segment in the second quarter of 2024 was $22 million. Adjusted EBITDA(1) for the second quarter of 2024 includes approximately $21 million of one-time transaction-related expenses(2). The segment averaged throughput volumes of approximately 640 thousand barrels per day in the second quarter of 2024.
Distribution
On July 25, 2024, the Board of Directors of SUN's general partner declared a distribution for the second quarter of 2024 of $0.8756 per unit, or $3.5024 per unit on an annualized basis. The distribution will be paid on August 19, 2024, to common unitholders of record on August 9, 2024.
Liquidity, Leverage and Credit
At June 30, 2024, SUN had long-term debt of approximately $7.3 billion and approximately $1.4 billion of liquidity remaining on its $1.5 billion revolving credit facility. SUN's leverage ratio of net debt to Adjusted EBITDA(1), calculated in accordance with its credit facility, was 4.1 times at the end of the second quarter.
Capital Spending
SUN's total capital expenditures in the second quarter of 2024 were $78 million, which included $52 million of growth capital and $26 million of maintenance capital.
Recent Developments
- On July 16, 2024, SUN announced the formation of a joint venture with Energy Transfer LP combining their respective crude oil and produced water gathering assets in the Permian Basin. The formation of the joint venture has an effective date of July 1, 2024.
- On June 28, 2024, the Partnership entered into a definitive agreement to acquire a liquid fuels terminal in Portland, Maine.
Full Year 2024 Business Outlook
For the full year 2024, the Partnership expects:
- Adjusted EBITDA(1)(3) of $1.46 billion to $1.52 billion, excluding synergies and transaction-related expenses(2).
- Approximately $50 million in synergies related to the acquisition of NuStar.
- Approximately $100 million in transaction-related expenses.
- Growth capital expenditures to be greater than $300 million and maintenance capital expenditures to be approximately $120 million.
