Sunoco Raises Outlook as Acquisitions Lift Cash Flow
The company raised its full-year adjusted EBITDA forecast by $400 million.
Sunoco LP (SUN), the motor-fuel distributor and infrastructure operator, more than doubled second-quarter adjusted EBITDA excluding transaction-related expenses to $996 million from $464 million a year earlier.
The Parkland acquisition broadened Sunoco’s fuel-distribution and terminal operations, driving much of the year-over-year growth. Adjusted EBITDA also increased from $867 million in the first quarter, extending the company’s operating momentum.
Net income rose to $283 million from $86 million a year earlier, though it declined from $644 million in the first quarter. Adjusted distributable cash flow climbed to $608 million from $535 million sequentially and $300 million a year earlier.
Fuel Distribution adjusted EBITDA rose to $504 million from $206 million a year earlier as gallons sold reached 4.125 billion and motor-fuel profit increased to 17.1 cents a gallon, primarily reflecting Parkland and other acquisitions. The segment’s adjusted EBITDA slipped from $529 million sequentially even as volumes and fuel margin edged higher.
Pipeline Systems adjusted EBITDA increased to $190 million from $177 million a year earlier, with throughput rising to 1.347 million barrels a day from 1.231 million. Terminals adjusted EBITDA climbed to $113 million from $71 million as throughput reached 1.065 million barrels a day, helped by the Parkland and TanQuid acquisitions and customer growth.
Refinery adjusted EBITDA jumped to $175 million from $43 million in the first quarter as average throughput recovered to about 57,000 barrels a day following a planned 50-day maintenance turnaround. The refinery reported crude utilization of 97% and composite utilization of 103% during the quarter.
Sunoco now expects full-year 2026 adjusted EBITDA of $3.5 billion to $3.7 billion, $400 million above its previous range.
The partnership raised its quarterly distribution 1.25% to $1.0023 per unit, its seventh consecutive quarterly increase. Leverage improved to about 3.7 times net debt to adjusted EBITDA from 4.0 times at the end of the first quarter as long-term debt declined to roughly $13.3 billion.