Sunoco LP Reports Third Quarter 2024 Financial and Operating Results
DALLAS, Nov. 6, 2024 /PRNewswire/ -- Sunoco LP (NYSE:SUN) ("SUN" or the "Partnership") today reported financial and operating results for the quarter ended September 30, 2024.
Financial and Operational Highlights
Net income for the third quarter of 2024 was $2 million compared to net income of $272 million in the third quarter of 2023.
Adjusted EBITDA(1) for the third quarter of 2024 was $456 million compared to $257 million in the third quarter of 2023. Adjusted EBITDA(1) for the third quarter of 2024 includes approximately $14 million of one-time transaction-related expenses(2).
Distributable Cash Flow, as adjusted(1), for the third quarter of 2024 was $349 million compared to $181 million in the third quarter of 2023.
Adjusted EBITDA(1) for the Fuel Distribution segment for the third quarter of 2024 was $253 million compared to $234 million in the third quarter of 2023. The segment sold approximately 2.1 billion gallons of fuel in the third quarter of 2024, an increase of 1% from the third quarter of 2023. Fuel margin for all gallons sold was 12.8 cents per gallon for the third quarter of 2024 compared to 12.5 cents per gallon in the third quarter of 2023.
Adjusted EBITDA(1) for the Pipeline Systems segment for the third quarter of 2024 was $136 million. Adjusted EBITDA(1) for the third quarter of 2024 includes approximately $11 million of one-time transaction-related expenses(2). The segment averaged throughput volumes of approximately 1.2 million barrels per day in the third quarter of 2024.
Adjusted EBITDA(1) for the Terminals segment for the third quarter of 2024 was $67 million. Adjusted EBITDA(1) for the third quarter of 2024 includes approximately $3 million of one-time transaction-related expenses(2). The segment averaged throughput volumes of approximately 690 thousand barrels per day in the third quarter of 2024.
Distribution
On October 28, 2024, the Board of Directors of SUN's general partner declared a distribution for the third quarter of 2024 of $0.8756 per unit, or $3.5024 per unit on an annualized basis. The distribution will be paid on November 19, 2024, to common unitholders of record on November 8, 2024.
Liquidity, Leverage and Credit
At September 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 4.0 times at the end of the third quarter.
Capital Spending
SUN's total capital expenditures in the third quarter of 2024 were $93 million, which included $67 million of growth capital and $26 million of maintenance capital.
(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, 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 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
ContactsInvestors:Scott Grischow, Treasurer, Senior Vice President, Finance(214) 840-5660,
Media:Chris Cho, Senior Manager, Communications(469) 646-1647,
– Financial Schedules Follow,
SUNOCO LPCONSOLIDATED BALANCE SHEETS(Dollars in millions)(unaudited)
September 30,2024
December 31,2023
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 (136,001,589 units issued and outstanding as of September 30, 2024 and 84,408,014 units issued and outstanding as of December 31, 2023)
4,179
978
Class C unitholders - held by subsidiaries (16,410,780 units issued and outstanding as of September 30, 2024 and December 31, 2023)
—
—
Accumulated other comprehensive income
1
—
Total equity
4,180
978
Total liabilities and equity
$ 14,122
$ 6,826
SUNOCO LPCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Dollars in millions, except per unit data)(unaudited)
Three Months Ended September 30,
Nine Months Ended September 30,
2024
2023
2024
2023
Revenues
