Sunoco LP Reports Third Quarter 2024 Financial and Operating Results
Sunoco LP (NYSE: SUN) reported third quarter 2024 financial results with net income dropping to $2 million from $272 million in Q3 2023. However, Adjusted EBITDA increased to $456 million from $257 million year-over-year, including $14 million in one-time transaction expenses. The Fuel Distribution segment sold 2.1 billion gallons with a margin of 12.8 cents per gallon. The Pipeline Systems segment averaged 1.2 million barrels per day throughput, while Terminals segment averaged 690,000 barrels per day. SUN declared a quarterly distribution of $0.8756 per unit and maintained a leverage ratio of 4.0x with $1.4 billion in available liquidity.
Sunoco LP (NYSE: SUN) ha riportato i risultati finanziari del terzo trimestre 2024, con un utile netto che è sceso a 2 milioni di dollari rispetto ai 272 milioni di dollari nel Q3 2023. Tuttavia, l'EBITDA Adjustato è aumentato a 456 milioni di dollari rispetto ai 257 milioni di dollari dell'anno precedente, includendo 14 milioni di dollari in spese per transazioni una tantum. Il segmento Distribuzione di Carburanti ha venduto 2,1 miliardi di galloni con un margine di 12,8 centesimi per gallone. Il segmento dei Sistemi di Pipeline ha registrato una media di 1,2 milioni di barili al giorno, mentre il segmento Terminali ha mediato 690.000 barili al giorno. SUN ha dichiarato una distribuzione trimestrale di 0,8756 dollari per unità e ha mantenuto un rapporto di indebitamento di 4,0x con 1,4 miliardi di dollari di liquidità disponibile.
Sunoco LP (NYSE: SUN) informó los resultados financieros del tercer trimestre de 2024, con un ingreso neto que cayó a 2 millones de dólares desde los 272 millones de dólares en el Q3 2023. Sin embargo, el EBITDA Ajustado aumentó a 456 millones de dólares desde los 257 millones de dólares en el año anterior, incluyendo 14 millones de dólares en gastos de transacciones únicas. El segmento de Distribución de Combustibles vendió 2.1 mil millones de galones con un margen de 12.8 centavos por galón. El segmento de Sistemas de Oleoductos promedió un rendimiento de 1.2 millones de barriles por día, mientras que el segmento de Terminales promedió 690,000 barriles por día. SUN declaró una distribución trimestral de 0.8756 dólares por unidad y mantuvo una ratio de apalancamiento de 4.0x con 1.4 mil millones de dólares en liquidez disponible.
Sunoco LP (NYSE: SUN)는 2024년 3분기 재무 결과를 발표했으며, 순이익이 2백만 달러로 Q3 2023의 2억 7천 2백만 달러에서 감소했습니다. 그러나 조정 EBITDA는 연간 2억 5천 7백만 달러에서 4억 5천 6백만 달러로 증가했으며, 여기에는 1천 4백만 달러의 일회성 거래 비용이 포함됩니다. 연료 유통 부문은 21억 갤런을 판매했으며 갤런당 12.8센트의 마진을 기록했습니다. 파이프라인 시스템 부문은 하루 평균 120만 배럴의 처리량을 기록했으며, 터미널 부문은 하루 평균 69만 배럴을 기록했습니다. SUN은 유닛당 0.8756달러의 분기 배당금을 선언했으며, 14억 달러의 유동성을 유지하며 4.0배의 레버리지 비율을 유지했습니다.
Sunoco LP (NYSE: SUN) a annoncé les résultats financiers du troisième trimestre 2024, avec un revenu net passant à 2 millions de dollars contre 272 millions de dollars au T3 2023. Cependant, l'EBITDA ajusté a augmenté à 456 millions de dollars par rapport à 257 millions de dollars l'année précédente, incluant 14 millions de dollars en frais de transaction ponctuels. Le segment de Distribution de Carburant a vendu 2,1 milliards de gallons avec une marge de 12,8 cents par gallon. Le segment des Systèmes de Pipeline a enregistré un débit moyen de 1,2 million de barils par jour, tandis que le segment des Terminaux a enregistré un débit moyen de 690 000 barils par jour. SUN a déclaré une distribution trimestrielle de 0,8756 dollar par unité et a maintenu un ratio d'endettement de 4,0x avec 1,4 milliard de dollars de liquidités disponibles.
Sunoco LP (NYSE: SUN) hat die finanziellen Ergebnisse für das dritte Quartal 2024 veröffentlicht, wobei der Nettogewinn auf 2 Millionen Dollar von 272 Millionen Dollar im Q3 2023 gesunken ist. Das angepasste EBITDA hingegen stieg auf 456 Millionen Dollar, verglichen mit 257 Millionen Dollar im Vorjahr, einschließlich 14 Millionen Dollar an einmaligen Transaktionskosten. Das Segment Kraftstoffvertrieb verkaufte 2,1 Milliarden Gallonen mit einer Marge von 12,8 Cent pro Gallone. Das Segment Pipeline-Systeme hatte einen durchschnittlichen Durchsatz von 1,2 Millionen Barrel pro Tag, während das Segment Terminals einen Durchschnitt von 690.000 Barrel pro Tag aufwies. SUN erklärte eine vierteljährliche Ausschüttung von 0,8756 Dollar pro Einheit und hielt ein Verschuldungsratio von 4,0x mit 1,4 Milliarden Dollar an verfügbarer Liquidität aufrecht.
- Adjusted EBITDA increased 77.4% YoY to $456 million
- Distributable Cash Flow increased 92.8% YoY to $349 million
- Fuel margin improved to 12.8 cents per gallon from 12.5 cents YoY
- Maintained strong liquidity position with $1.4 billion available
- Net income decreased significantly from $272M to $2M YoY
- High leverage with $7.3 billion in long-term debt
- Incurred $14 million in one-time transaction-related expenses
Insights
The Q3 results show significant contrasts, with net income dropping sharply to
The company's leverage ratio of 4.0x and
The disparity between net income and Adjusted EBITDA performance indicates significant non-cash or one-time items affecting reported earnings. The
Financial and Operational Highlights
Net income for the third quarter of 2024 was
Adjusted EBITDA(1) for the third quarter of 2024 was
Distributable Cash Flow, as adjusted(1), for the third quarter of 2024 was
Adjusted EBITDA(1) for the Fuel Distribution segment for the third quarter of 2024 was
Adjusted EBITDA(1) for the Pipeline Systems segment for the third quarter of 2024 was
Adjusted EBITDA(1) for the Terminals segment for the third quarter of 2024 was
Distribution
On October 28, 2024, the Board of Directors of SUN's general partner declared a distribution for the third quarter of 2024 of
Liquidity, Leverage and Credit
At September 30, 2024, SUN had long-term debt of approximately
Capital Spending
SUN's total capital expenditures in the third quarter of 2024 were
(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.
(2) Transaction-related expenses include certain one-time expenses incurred with acquisitions and divestitures.
Earnings Conference Call
Sunoco LP management will hold a conference call on Wednesday, November 6, 2024, 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,
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 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 | |||
September 30, | December 31, | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 116 | $ 29 | |
Accounts receivable, net | 902 | 856 | |
Accounts receivable from affiliates | — | 20 | |
Inventories, net | 890 | 889 | |
Other current assets | 157 | 133 | |
Total current assets | 2,065 | 1,927 | |
Property and equipment | 8,856 | 2,970 | |
Accumulated depreciation | (1,105) | (1,134) | |
Property and equipment, net | 7,751 | 1,836 | |
Other assets: | |||
Operating lease right-of-use assets, net | 474 | 506 | |
Goodwill | 1,484 | 1,599 | |
Intangible assets, net | 553 | 544 | |
Other non-current assets | 396 | 290 | |
Investment in unconsolidated affiliates | 1,399 | 124 | |
Total assets | $ 14,122 | $ 6,826 | |
LIABILITIES AND EQUITY | |||
Current liabilities: | |||
Accounts payable | $ 929 | $ 828 | |
Accounts payable to affiliates | 222 | 170 | |
Accrued expenses and other current liabilities | 515 | 353 | |
Operating lease current liabilities | 32 | 22 | |
Current maturities of long-term debt | 78 | — | |
Total current liabilities | 1,776 | 1,373 | |
Operating lease non-current liabilities | 482 | 511 | |
Long-term debt, net | 7,259 | 3,580 | |
Advances from affiliates | 86 | 102 | |
Deferred tax liabilities | 166 | 166 | |
Other non-current liabilities | 173 | 116 | |
Total liabilities | 9,942 | 5,848 | |
Commitments and contingencies | |||
Equity: | |||
Limited partners: | |||
Common unitholders | 4,179 | 978 | |
Class C unitholders - held by subsidiaries | — | — | |
Accumulated other comprehensive income | 1 | — | |
Total equity | 4,180 | 978 | |
Total liabilities and equity | $ 14,122 | $ 6,826 | |
SUNOCO LP | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Revenues | $ 5,751 | $ 6,320 | $ 17,424 | $ 17,427 | |||
Cost of Sales and Operating Expenses: | |||||||
Cost of sales | 5,327 | 5,793 | 15,951 | 16,211 | |||
Operating expenses | 151 | 93 | 373 | 262 | |||
General and administrative | 55 | 30 | 225 | 92 | |||
Lease expense | 18 | 18 | 53 | 51 | |||
Loss (gain) on disposal of assets and impairment charges | (2) | 4 | 52 | (8) | |||
Depreciation, amortization and accretion | 95 | 44 | 216 | 141 | |||
Total cost of sales and operating expenses | 5,644 | 5,982 | 16,870 | 16,749 | |||
Operating Income | 107 | 338 | 554 | 678 | |||
Other Income (Expense): | |||||||
Interest expense, net | (116) | (56) | (274) | (162) | |||
Equity in earnings of unconsolidated affiliates | 31 | 1 | 35 | 4 | |||
Gain on West Texas Sale | — | — | 598 | — | |||
Loss on extinguishment of debt | — | — | (2) | — | |||
Other, net | (5) | — | (7) | 7 | |||
Income Before Income Taxes | 17 | 283 | 904 | 527 | |||
Income tax expense | 15 | 11 | 171 | 27 | |||
Net Income | $ 2 | $ 272 | $ 733 | $ 500 | |||
Net Income (Loss) per Common Unit: | |||||||
Basic | $ (0.26) | $ 2.99 | $ 5.44 | $ 5.20 | |||
Diluted | $ (0.26) | $ 2.95 | $ 5.40 | $ 5.14 | |||
Weighted Average Common Units Outstanding: | |||||||
Basic | 135,998,435 | 84,064,445 | 112,650,388 | 84,061,363 | |||
Diluted | 136,844,312 | 85,132,733 | 113,466,864 | 85,037,289 | |||
Cash Distributions per Unit | $ 0.8756 | $ 0.8420 | $ 2.6268 | $ 2.5260 | |||
SUNOCO LP | |||
Three Months Ended September 30, | |||
2024 | 2023 | ||
Net income | $ 2 | $ 272 | |
Depreciation, amortization and accretion | 95 | 44 | |
Interest expense, net | 116 | 56 | |
Non-cash unit-based compensation expense | 4 | 4 | |
Loss (gain) on disposal of assets and impairment charges | (2) | 4 | |
Unrealized (gains) losses on commodity derivatives | 1 | (1) | |
Inventory valuation adjustments | 197 | (141) | |
Equity in earnings of unconsolidated affiliates | (31) | (1) | |
Adjusted EBITDA related to unconsolidated affiliates | 47 | 2 | |
Other non-cash adjustments | 12 | 7 | |
Income tax expense | 15 | 11 | |
Adjusted EBITDA (1) | 456 | 257 | |
Transaction-related expenses | 14 | — | |
Adjusted EBITDA(1), excluding transaction-related expenses | $ 470 | $ 257 | |
Adjusted EBITDA (1) | $ 456 | $ 257 | |
Adjusted EBITDA related to unconsolidated affiliates | (47) | (2) | |
Distributable cash flow from unconsolidated affiliates | 45 | 2 | |
Cash interest expense | (112) | (54) | |
Current income tax (expense) benefit | 36 | (8) | |
Transaction-related income taxes | (17) | — | |
Maintenance capital expenditures | (26) | (14) | |
Distributable Cash Flow | 335 | 181 | |
Transaction-related expenses | 14 | — | |
Distributable Cash Flow, as adjusted (1) | $ 349 | $ 181 | |
Distributions to Partners: | |||
Limited Partners | $ 119 | $ 71 | |
General Partner | 36 | 19 | |
Total distributions to be paid to partners | $ 155 | $ 90 | |
Common Units outstanding - end of period | 136.0 | 84.1 | |
(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 distributions to our unitholders and debt service capabilities; | |
• | our management uses them for internal planning purposes, including aspects of our consolidated operating budget, and capital expenditures; and | |
• | Distributable Cash Flow, as adjusted, provides useful information to investors as it is a widely accepted financial indicator used by investors to compare partnership performance, and as it provides investors an enhanced perspective of the operating performance of our assets and the cash our business is generating. | |
Adjusted EBITDA and Distributable Cash Flow, as adjusted, are not recognized terms under GAAP and do not purport to be alternatives to net income as measures of operating performance or to cash flows from operating activities as a measure of liquidity. Adjusted EBITDA and Distributable Cash Flow, as adjusted, have limitations as analytical tools, and one should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. Some of these limitations include: | ||
• | they do not reflect our total cash expenditures, or future requirements for capital expenditures or contractual commitments; | |
• | they do not reflect changes in, or cash requirements for, working capital; | |
• | they do not reflect interest expense or the cash requirements necessary to service interest or principal payments on our revolving credit facility or senior notes; | |
• | although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Adjusted EBITDA does not reflect cash requirements for such replacements; and | |
• | as not all companies use identical calculations, our presentation of Adjusted EBITDA and Distributable Cash Flow, as adjusted, may not be comparable to similarly titled measures of other companies. | |
Adjusted EBITDA reflects amounts for the unconsolidated affiliates based on the same recognition and measurement methods used to record equity in earnings of unconsolidated affiliates. Adjusted EBITDA related to unconsolidated affiliates excludes the same items with respect to the unconsolidated affiliates as those excluded from the calculation of Adjusted EBITDA, such as interest, taxes, depreciation, depletion, amortization and other non-cash items. Although these amounts are excluded from Adjusted EBITDA related to unconsolidated affiliates, such exclusion should not be understood to imply that we have control over the operations and resulting revenues and expenses of such affiliates. We do not control our unconsolidated affiliates; therefore, we do not control the earnings or cash flows of such affiliates. The use of Adjusted EBITDA or Adjusted EBITDA related to unconsolidated affiliates as an analytical tool should be limited accordingly. Inventory valuation adjustments that are excluded from the calculation of Adjusted EBITDA represent changes in lower of cost or market reserves on the Partnership's inventory. These amounts are unrealized valuation adjustments applied to fuel volumes remaining in inventory at the end of the period. | ||
SUNOCO LP | |||
Three Months Ended | |||
2024 | 2023 | ||
Segment Adjusted EBITDA: | |||
Fuel Distribution | $ 253 | $ 234 | |
Pipeline Systems | 136 | 2 | |
Terminals | 67 | 21 | |
Adjusted EBITDA | 456 | 257 | |
Transaction-related expenses | 14 | — | |
Adjusted EBITDA, excluding transaction-related expenses | $ 470 | $ 257 | |
The following analysis of segment operating results includes a measure of segment profit. Segment profit is a non-GAAP financial measure and is presented herein to assist in the analysis of segment operating results and particularly to facilitate an understanding of the impacts that changes in sales revenues have on the segment performance measure of Segment Adjusted EBITDA. Segment profit is similar to the GAAP measure of gross profit, except that segment profit excludes charges for depreciation, depletion and amortization. The most directly comparable measure to segment profit is gross profit. The following table presents a reconciliation of segment profit to gross profit.
Three Months Ended | Nine Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Fuel Distribution segment profit | $ 164 | $ 467 | $ 885 | $ 1,095 | |||
Pipeline Systems segment profit | 159 | — | 332 | 2 | |||
Terminals segment profit | 101 | 60 | 256 | 119 | |||
Total segment profit | 424 | 527 | 1,473 | 1,216 | |||
Depreciation, amortization and accretion, excluding corporate and other | 93 | 44 | 213 | 141 | |||
Gross profit | $ 331 | $ 483 | $ 1,260 | $ 1,075 | |||
Fuel Distribution
Three Months Ended | |||
2024 | 2023 | ||
Motor fuel gallons sold | 2,138 | 2,118 | |
Motor fuel profit cents per gallon(1) | 12.8 ¢ | 12.5 ¢ | |
Fuel profit | $ 96 | $ 388 | |
Non-fuel profit | 39 | 40 | |
Lease profit | 29 | 39 | |
Fuel Distribution segment profit | $ 164 | $ 467 | |
Expenses | $ 100 | $ 119 | |
Segment Adjusted EBITDA | $ 253 | $ 234 | |
Transaction-related expenses | — | — | |
Segment Adjusted EBITDA, excluding transaction-related expenses | $ 253 | $ 234 | |
(1) Excludes the impact of inventory valuation adjustments consistent with the definition of Adjusted EBITDA. |
Volumes. For the three months ended September 30, 2024 compared to the same period last year, volumes increased primarily due to growth from investments and profit optimization strategies.
Segment Adjusted EBITDA. For the three months ended September 30, 2024 compared to the same period last year, Segment Adjusted EBITDA related to our Fuel Distribution segment increased due to the net impact of the following:
- an increase of
$13 million 1% increase in gallons sold and an increase in profit per gallon; and - a decrease of
$19 million - a decrease of
$10 million
Pipeline Systems
Three Months Ended | |||
2024 | 2023 | ||
Pipelines throughput (barrels per day) | 1,165 | — | |
Pipeline Systems segment profit | $ 159 | $ — | |
Expenses | $ 72 | $ — | |
Segment Adjusted EBITDA | $ 136 | $ 2 | |
Transaction-related expenses | 11 | — | |
Segment Adjusted EBITDA, excluding transaction-related expenses | $ 147 | $ 2 | |
Volumes. For the three months ended September 30, 2024 compared to the same period last year, volumes increased due to recently acquired assets.
Segment Adjusted EBITDA. For the three months ended September 30, 2024 compared to the same period last year, Segment Adjusted EBITDA related to our Pipeline Systems segment increased due to the acquisition of NuStar on May 3, 2024 and the formation of the Permian joint venture on July 1, 2024.
Terminals
Three Months Ended | |||
2024 | 2023 | ||
Throughput (barrels per day) | 694 | 421 | |
Terminal segment profit | $ 101 | $ 60 | |
Expenses | $ 52 | $ 22 | |
Segment Adjusted EBITDA | $ 67 | $ 21 | |
Transaction-related expenses | 3 | — | |
Segment Adjusted EBITDA, excluding transaction-related expenses | $ 70 | $ 21 | |
Volumes. For the three months ended September 30, 2024 compared to the same period last year, volumes increased due to recently acquired assets.
Segment Adjusted EBITDA. For the three months ended September 30, 2024 compared to the same period last year, Segment Adjusted EBITDA related to our Terminals segment increased primarily due to the recent acquisitions of NuStar, Zenith European terminals and Zenith Energy terminals located across the East Coast and Midwest.
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SOURCE Sunoco LP
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