Sunoco LP Maintains Quarterly Distribution

Rhea-AI Summary

Sunoco LP (NYSE: SUN) has announced that its Board of Directors has declared a quarterly distribution for the second quarter of 2024. The distribution will be $0.8756 per common unit, which equates to $3.5024 per common unit on an annualized basis. This distribution will be paid on August 19, 2024 to common unitholders of record as of August 9, 2024. The announcement indicates that Sunoco LP is maintaining its quarterly distribution, suggesting stability in its financial position and commitment to returning value to unitholders.

Positive

• Maintained quarterly distribution, indicating financial stability
• Consistent payout to unitholders at $0.8756 per common unit

Negative

• None.

Financial Analyst

Sunoco LP's decision to maintain its quarterly distribution at $0.8756 per common unit signals stability in the company's financial position and commitment to shareholder returns. This consistency is noteworthy in the current economic climate, where many companies are adjusting their dividend policies.

The annualized distribution of $3.5024 per common unit represents a significant yield, likely to be attractive to income-focused investors. However, it's important to consider this in the context of Sunoco's overall financial health, including its ability to sustain this payout ratio in the long term.

While the maintenance of the distribution is generally positive, it doesn't provide new information about the company's growth prospects or operational improvements. Investors should look to Sunoco's upcoming earnings report for a more comprehensive view of its financial performance and future outlook.

It's worth noting that as a Master Partnership (MLP), Sunoco's tax treatment of distributions differs from traditional corporate dividends. This can have implications for investors' after-tax returns, particularly in taxable accounts.

In the broader energy sector context, Sunoco's stable distribution policy may indicate confidence in its business model and cash flow generation capabilities, despite ongoing volatility in energy markets. However, potential investors should also consider the company's exposure to fuel price fluctuations and changing consumer behaviors in the transportation sector.

DALLAS, July 25, 2024 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("SUN") announced that the Board of Directors of its general partner declared a quarterly distribution for the second quarter of 2024 of $0.8756 per common unit or $3.5024 per common unit on an annualized basis. The distribution will be paid on August 19, 2024 to common unitholders of record on August 9, 2024.

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).

Qualified Notice

This release serves as qualified notice to nominees as provided for under Treasury Regulation Section 1.1446-4(b)(4) and (d). Please note that one hundred percent (100%) of Sunoco LP's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, all of Sunoco LP's distributions to foreign investors are subject to federal tax withholding at the highest applicable effective tax rate. Nominees, and not Sunoco LP, are treated as withholding agents responsible for withholding distributions received by them on behalf of foreign investors. For purposes of Treasury Regulation section 1.1446(f)-4(c)(2)(iii), brokers and nominees should treat one hundred percent (100%) of the distributions as being in excess of cumulative net income for purposes of determining the amount to withhold.

Contacts

Investors:
Scott Grischow, Treasurer, Senior Vice President – Finance
(214) 840-5660, scott.grischow@sunoco.com

Media:
Chris Cho, Senior Manager – Communications
(210) 918-3953, chris.cho@sunoco.com

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SOURCE Sunoco LP

FAQ

What is Sunoco LP's (SUN) quarterly distribution for Q2 2024?

Sunoco LP's quarterly distribution for Q2 2024 is $0.8756 per common unit, which equates to $3.5024 per common unit on an annualized basis.

When will Sunoco LP (SUN) pay its Q2 2024 distribution?

Sunoco LP will pay its Q2 2024 distribution on August 19, 2024 to common unitholders of record on August 9, 2024.

Has Sunoco LP (SUN) changed its quarterly distribution amount?

No, Sunoco LP has maintained its quarterly distribution amount, indicating consistency in its payout to unitholders.

What is the annualized distribution rate for Sunoco LP (SUN) based on the Q2 2024 payout?

The annualized distribution rate for Sunoco LP is $3.5024 per common unit, based on the Q2 2024 quarterly payout of $0.8756 per unit.