-- Reports third quarter results, including net income of $137 million,
Adjusted EBITDA(1), excluding one-time transaction-related expenses(2),
of $496 million and Distributable Cash Flow, as adjusted(1), of $326
million
-- Increases quarterly distribution by 1.25%; on track to meet distribution
growth target of at least 5% for 2025
-- Reports third quarter leverage of 3.9 times; maintains strong trailing
12-month distribution coverage ratio of 1.8 times
-- Completes the acquisition of Parkland Corporation
-- Remains on track to complete the acquisition of TanQuid in the fourth
quarter of 2025
DALLAS, Nov. 5, 2025 /PRNewswire/ -- Sunoco LP $(SUN)$ ("SUN" or the "Partnership") today reported financial and operating results for the quarter ended September 30, 2025.
Financial and Operational Highlights
Net income for the third quarter of 2025 was $137 million compared to $2 million in the third quarter of 2024.
Adjusted EBITDA(1) for the third quarter of 2025 was $489 million compared to $456 million in the third quarter of 2024. Adjusted EBITDA(1) for the third quarter of 2025 and 2024 included $7 million and $14 million, respectively, of one-time transaction-related expenses(2) .
Distributable Cash Flow, as adjusted(1) , for the third quarter of 2025 was $326 million compared to $349 million in the third quarter of 2024.
Adjusted EBITDA(1) for the Fuel Distribution segment for the third quarter of 2025 was $232 million compared to $253 million in the third quarter of 2024. Adjusted EBITDA(1) for the third quarter of 2025 included $6 million of one-time transaction-related expenses(2) . The segment sold approximately 2.3 billion gallons of fuel in the third quarter of 2025. Fuel margin for all gallons sold was 10.7 cents per gallon for the third quarter of 2025.
Adjusted EBITDA(1) for the Pipeline Systems segment for the third quarter of 2025 was $182 million compared to $136 million in the third quarter of 2024. Adjusted EBITDA(1) for the third quarter of 2024 included $11 million of one-time transaction-related expenses(2) . The segment averaged throughput volumes of approximately 1.3 million barrels per day in the third quarter of 2025.
Adjusted EBITDA(1) for the Terminals segment for the third quarter of 2025 was $75 million compared to $67 million in the third quarter of 2024. Adjusted EBITDA(1) for the third quarter of 2025 and 2024 included $1 million and $3 million, respectively, of one-time transaction-related expenses(2) . The segment averaged throughput volumes of approximately 656 thousand barrels per day in the third quarter of 2025.
Distribution
On October 20, 2025, the Board of Directors of SUN's general partner declared a distribution for the third quarter of 2025 of $0.9202 per unit, or $3.6808 per unit on an annualized basis. This represents an increase of approximately 1.25%, or $0.0114 per unit, as compared with the quarter ended June 30, 2025.
This is the fourth consecutive quarterly increase in SUN's distribution and is consistent with SUN's capital allocation strategy and 2025 business outlook, which includes an annual distribution growth rate of at least 5%. Since 2022, SUN has increased distributions by approximately 11%, underscoring the Partnership's ongoing commitment to returning capital to its unitholders.
The quarterly distribution will be paid on November 19, 2025, to common unitholders of record as of the close of business on October 30, 2025.
Liquidity and Leverage
At September 30, 2025, SUN had long-term debt of approximately $9.5 billion and approximately $1.5 billion of liquidity remaining on its revolving credit facility. SUN's leverage ratio of net debt to Adjusted EBITDA(1) , calculated in accordance with its revolving credit facility, was 3.9 times at the end of the third quarter.
Capital Spending
SUN's total capital expenditures in the third quarter of 2025 were $157 million, which included $115 million of growth capital and $42 million of maintenance capital. This includes the Partnership's proportionate share of capital expenditures related to its joint ventures with Energy Transfer of $16 million for growth capital and $4 million for maintenance capital.
SUN's segment results and other supplementary data are provided after the financial tables below.
(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. The Partnership's definition of Adjusted EBITDA
includes transaction-related expenses. However, given the magnitude of
the completed and pending acquisitions during the periods presented, as
well as the expenses related to those transactions, the Partnership is
reporting Adjusted EBITDA excluding these expenses in order to portray
the Partnership's performance for the period without the impact of these
one-time items.
(3) A reconciliation of non-GAAP forward looking information to corresponding
GAAP measures cannot be provided without unreasonable efforts due to the
inherent difficulty in quantifying certain amounts due to a variety of
factors, including the unpredictability of commodity price movements and
future charges or reversals outside the normal course of business which
may be significant.
Earnings Conference Call
Sunoco LP management will hold a conference call on Wednesday, November 5, 2025, 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
Sunoco LP (NYSE: SUN) is a leading energy infrastructure and fuel distribution master limited partnership operating across 32 countries and territories in North America, the Greater Caribbean, and Europe. The Partnership's midstream operations include an extensive network of approximately 14,000 miles of pipeline and over 160 terminals. This critical infrastructure complements the Partnership's fuel distribution operations, which distribute over 15 billion gallons annually to approximately 11,000 Sunoco and partner-branded retail locations, as well as independent dealers and commercial customers. SUN's general partner is owned by Energy Transfer LP (NYSE: ET).
SunocoCorp (NYSE: SUNC) is a publicly traded limited liability company that owns a direct limited partner interest in Sunoco LP.
SUN and SUNC are headquartered in Dallas, Texas. More information is available at www.sunocolp.com
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, including future distribution levels, 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
CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
(unaudited)
----------------------------------------------------------------------------
September 30, December 31,
2025 2024
---------------------- ------------------------
ASSETS
Current assets:
Cash and cash equivalents $ 3,239 $ 94
Accounts receivable, net 1,319 1,162
Inventories, net 1,143 1,068
Other current assets 112 141
Total current assets 5,813 2,465
Property, plant and
equipment 9,384 8,914
Accumulated depreciation (1,669) (1,240)
---------------------- ------------------------
Property, plant and
equipment, net 7,715 7,674
Other assets:
Operating lease
right-of-use assets,
net 560 477
Goodwill 1,477 1,477
Intangible assets, net 526 547
Other non-current assets 476 400
Investments in
unconsolidated
affiliates 1,278 1,335
Total assets $ 17,845 $ 14,375
====================== ========================
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $ 1,106 $ 1,255
Accounts payable to
affiliates 205 199
Accrued expenses and
other current
liabilities 522 457
Operating lease current
liabilities 32 34
Current maturities of
long-term debt 2 2
Total current
liabilities 1,867 1,947
Operating lease
non-current liabilities 563 479
Long-term debt, net 9,476 7,484
Advances from affiliates 78 82
Deferred tax liabilities 170 157
Other non-current
liabilities 150 158
Total liabilities 12,304 10,307
Commitments and
contingencies
Series A Preferred Units 1,477 --
Equity:
Limited partners:
Common unitholders
(136,604,563 units
issued and outstanding
as of September 30,
2025 and
136,228,535
units issued and
outstanding as of
December 31, 2024) 4,066 4,066
Class C unitholders -
held by subsidiaries
(16,410,780 units issued
and outstanding as of
September 30, 2025 and
December 31, 2024) -- --
Accumulated other
comprehensive income
(loss) (2) 2
---------------------- ------------------------
Total equity 4,064 4,068
---------------------- ------------------------
Total liabilities and
equity $ 17,845 $ 14,375
====================== ========================
SUNOCO LP
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions, except per unit data)
(unaudited)
----------------------------------------------------------------------------------------------------------------------
Three Months Ended September 30, Nine Months Ended September 30,
-------------------------------------------------- ------------------------------------------------
2025 2024 2025 2024
REVENUES $ 6,032 $ 5,751 $ 16,601 $ 17,424
COSTS AND
EXPENSES:
Cost of sales 5,386 5,327 14,733 15,951
Operating
expenses 162 151 450 373
General and
administrative 51 55 140 225
Lease expense 19 18 54 53
(Gain) loss on
disposal of
assets and
impairment
charges 3 (2) 4 52
Depreciation,
amortization
and accretion 159 95 469 216
----------------------- ------------------------- ----------------------- -----------------------
Total cost of
sales and
operating
expenses 5,780 5,644 15,850 16,870
OPERATING INCOME 252 107 751 554
OTHER INCOME
(EXPENSE):
Interest
expense, net (131) (116) (375) (274)
Equity in
earnings of
unconsolidated
affiliates 40 31 103 35
Gain on West
Texas Sale -- -- -- 598
Loss on
extinguishment
of debt (12) -- (31) (2)
Other, net (1) (5) (2) (7)
----------------------- ------------------------- ----------------------- -----------------------
INCOME BEFORE
INCOME TAXES 148 17 446 904
Income tax
expense 11 15 16 171
----------------------- ------------------------- ----------------------- -----------------------
NET INCOME $ 137 $ 2 $ 430 $ 733
Less: Net
income
attributable
to
noncontrolling
interests -- -- -- 8
Less: Net
income
attributable
to Series A
Preferred
Units 4 -- 4 --
----------------------- ------------------------- ----------------------- -----------------------
NET INCOME
ATTRIBUTABLE TO
COMMON UNITS
AND IDRs $ 133 $ 2 $ 426 $ 725
======================= ========================= ======================= =======================
NET INCOME
(LOSS) PER
COMMON UNIT:
Basic $ 0.64 $ (0.26) $ 2.19 $ 5.44
Diluted $ 0.64 $ (0.26) $ 2.18 $ 5.40
WEIGHTED AVERAGE
COMMON UNITS
OUTSTANDING:
Basic 136,604,533 135,998,435 136,436,142 112,650,388
Diluted 137,346,932 136,844,312 137,135,374 113,466,864
CASH
DISTRIBUTION
PER COMMON
UNIT $ 0.9202 $ 0.8756 $ 2.7266 $ 2.6268
SUNOCO LP
SUPPLEMENTAL INFORMATION
(Dollars and units in millions)
(unaudited)
----------------------------------------------------------------------------
Three Months Ended September 30,
--------------------------------------------------
2025 2024
----------------------- -------------------------
Net income $ 137 $ 2
Depreciation,
amortization and
accretion 159 95
Interest expense, net 131 116
Non-cash unit-based
compensation expense 5 4
(Gain) loss on disposal
of assets and
impairment charges 3 (2)
Loss on extinguishment
of debt 12 --
Unrealized losses on
commodity derivatives 15 1
Inventory valuation
adjustments (10) 197
Equity in earnings of
unconsolidated
affiliates (40) (31)
Adjusted EBITDA related
to unconsolidated
affiliates 58 47
Other non-cash
adjustments 8 12
Income tax expense 11 15
----------------------- -------------------------
Adjusted EBITDA (1) 489 456
Transaction-related
expenses 7 14
----------------------- -------------------------
Adjusted EBITDA (1) ,
excluding
transaction-related
expenses $ 496 $ 470
======================= =========================
Adjusted EBITDA (1) $ 489 $ 456
Adjusted EBITDA related
to unconsolidated
affiliates (58) (47)
Distributable cash flow
from unconsolidated
affiliates 54 45
Series A Preferred
Units distributions (4) --
Cash interest expense (120) (112)
Current income tax
(expense) benefit (4) 36
Transaction-related
income taxes -- (17)
Maintenance capital
expenditures (2) (38) (26)
----------------------- -------------------------
Distributable Cash Flow 319 335
Transaction-related
expenses and
adjustments (3) 7 14
----------------------- -------------------------
Distributable Cash Flow,
as adjusted (1) $ 326 $ 349
======================= =========================
Distributions to
Partners:
Limited Partners $ 126 $ 119
General Partner 42 36
----------------------- -------------------------
Total distributions to
be paid to partners $ 168 $ 155
======================= =========================
Common Units outstanding
- end of period 136.6 136.0
(1) Adjusted EBITDA is defined as earnings before net interest expense,
income taxes, depreciation, amortization and accretion expense, non-cash
unit-based compensation expense, gains and losses on disposal of assets,
non-cash impairment charges, losses on extinguishment of debt, unrealized
gains and losses on commodity derivatives, inventory valuation
adjustments, and certain other operating expenses reflected in net income
that we do not believe are indicative of ongoing core operations. 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, amortization and accretion are non-cash
charges, the assets being depreciated, amortized and accreted 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, amortization,
accretion 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.
(2) For the three months ended September 30, 2025 and 2024, excludes $4
million and $1 million, respectively, for our proportionate share of
maintenance capital expenditures related to our investments in ET-S
Permian and J.C. Nolan, as these amounts are included in "Distributable
cash flow from unconsolidated affiliates."
(3) For the three months ended September 30, 2025 and 2024, SUN incurred $7
million and $14 million of transaction-related expenses, respectively.
SUNOCO LP
SUMMARY ANALYSIS OF QUARTERLY RESULTS BY SEGMENT
(Tabular dollar amounts in millions)
(unaudited)
----------------------------------------------------------------------------
Three Months Ended September 30,
------------------------------------------------
2025 2024
----------------------- -----------------------
Segment Adjusted EBITDA:
Fuel Distribution $ 232 $ 253
Pipeline Systems 182 136
Terminals 75 67
----------------------- -----------------------
Adjusted EBITDA 489 456
Transaction-related
expenses 7 14
----------------------- -----------------------
Adjusted EBITDA,
excluding
transaction-related
expenses $ 496 $ 470
======================= =======================
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, amortization and accretion. 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 September 30,
------------------------------------------------
2025 2024
----------------------- -----------------------
Fuel Distribution segment
profit $ 329 $ 164
Pipeline Systems segment
profit 189 159
Terminals segment profit 128 101
----------------------- -----------------------
Total segment profit 646 424
Depreciation, amortization
and accretion, excluding
corporate and other 159 93
----------------------- -----------------------
Gross profit $ 487 $ 331
======================= =======================
Fuel Distribution
Three Months Ended September 30,
--------------------------------------------------
2025 2024
------------------------ ------------------------
Motor fuel gallons sold
(millions) 2,295 2,138
Motor fuel profit cents
per gallon(1) 10.7 c 12.8 c
Fuel profit $ 254 $ 96
Non-fuel profit 44 39
Lease profit 31 29
------------------------ ------------------------
Fuel Distribution
segment profit $ 329 $ 164
Expenses $ 113 $ 100
Segment Adjusted EBITDA $ 232 $ 253
Transaction-related
expenses 6 --
------------------------ ------------------------
Segment Adjusted EBITDA,
excluding
transaction-related
expenses $ 238 $ 253
======================== ========================
(1) Excludes the impact of inventory valuation adjustments consistent with
the definition of Adjusted EBITDA.
Volumes. For the three months ended September 30, 2025 compared to the same period last year, volumes increased primarily due to acquisitions.
Segment Adjusted EBITDA. For the three months ended September 30, 2025 compared to the same period last year, Segment Adjusted EBITDA related to our Fuel Distribution segment decreased due to the net impact of the following:
-- a decrease of $10 million due to lower profit per gallon; and
-- an increase of $13 million in expenses primarily due to the Parkland
acquisition and other acquisitions.
Pipeline Systems
Three Months Ended September 30,
--------------------------------------------------
2025 2024
------------------------ ------------------------
Pipelines throughput
(thousand barrels per
day) 1,296 1,165
Pipeline Systems segment
profit $ 189 $ 159
Expenses $ 66 $ 72
Segment Adjusted EBITDA $ 182 $ 136
Transaction-related
expenses -- 11
------------------------ ------------------------
Segment Adjusted EBITDA,
excluding
transaction-related
expenses $ 182 $ 147
======================== ========================
Volumes. Volumes. For the three months ended September 30, 2025 compared to the same period last year, the increase in throughput volumes reflected the impact of refinery turnarounds in the prior period.
Segment Adjusted EBITDA. For the three months ended September 30, 2025 compared to the same period last year, Segment Adjusted EBITDA related to our Pipeline Systems segment increased due to the net impact of the following:
-- a $30 million increase in segment profit primarily due to refinery
turnarounds in the prior period and overall system demand;
-- an $11 million increase in Adjusted EBITDA related to ET-S Permian; and
-- a $6 million decrease in operating costs primarily due to a decrease in
general and administrative expenses related to one-time NuStar
acquisition expenses incurred in 2024.
Terminals
Three Months Ended September 30,
--------------------------------------------------
2025 2024
------------------------ ------------------------
Throughput (thousand
barrels per day) 656 694
Terminals segment profit $ 128 $ 101
Expenses $ 53 $ 52
Segment Adjusted EBITDA $ 75 $ 67
Transaction-related
expenses 1 3
------------------------ ------------------------
Segment Adjusted EBITDA,
excluding
transaction-related
expenses $ 76 $ 70
======================== ========================
Volumes. For the three months ended September 30, 2025 compared to the same period last year, volumes decreased due to lower trading activity as well as customer transitions.
Segment Adjusted EBITDA. For the three months ended September 30, 2025 compared to the same period last year, Segment Adjusted EBITDA related to our Terminals segment increased primarily due to the following:
-- a $9 million increase in segment profit (excluding inventory valuation
adjustments) primarily due to favorable margins from transmix activities
and the Portland terminal acquisition, which occurred in August 2024 and
therefore is only reflected for two months in the prior period.
View original content to download multimedia:https://www.prnewswire.com/news-releases/sunoco-lp-reports-third-quarter-2025-financial-and-operating-results-302604982.html
SOURCE Sunoco LP
(END) Dow Jones Newswires
November 05, 2025 07:00 ET (12:00 GMT)