Sunoco LP (SUN) Q3 2024 Earnings Call Highlights: Record EBITDA and Strategic Acquisitions Amid ...
In This Article:
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Adjusted EBITDA: $470 million, excluding $14 million of one-time transaction expenses.
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Growth Capital Expenditure: $67 million.
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Maintenance Capital Expenditure: $26 million.
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Distributable Cash Flow (Adjusted): $349 million.
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Coverage Ratio: Current quarter coverage ratio of 2.3 times; trailing 12-month ratio of 1.9 times.
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Distribution: $0.8756 per unit, consistent with last quarter.
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Liquidity: Approximately $1.4 billion remaining on revolving credit facility.
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Leverage Ratio: 4 times, in line with long-term target.
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Fuel Distribution Segment Adjusted EBITDA: $253 million, up 3% from the second quarter and 8% year-over-year.
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Fuel Distribution Volume: 2.1 billion gallons, down 2% from the second quarter, up 1% year-over-year.
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Fuel Margin: $0.128 per gallon, compared to $0.118 in the second quarter and $0.125 in the third quarter of 2023.
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Pipeline System Segment Adjusted EBITDA: $147 million, excluding $11 million of transaction expenses.
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Pipeline Throughput: Nearly 1.2 million barrels per day.
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Terminal Segment Adjusted EBITDA: $70 million, excluding $3 million of transaction expenses.
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Terminal Throughput: Nearly 700,000 barrels per day.
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Synergy Targets: $125 million in 2025 and $200 million in 2026, with $60 million already realized.
Release Date: November 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Sunoco LP (NYSE:SUN) delivered record third-quarter adjusted EBITDA of $470 million, showcasing strong financial performance.
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The company closed a significant acquisition of a liquid fuels terminal in Portland, Maine, enhancing its asset portfolio.
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Sunoco LP (NYSE:SUN) maintained a robust liquidity position with approximately $1.4 billion available on its revolving credit facility.
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The company's leverage ratio is at its long-term target of four times, indicating effective financial management.
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Sunoco LP (NYSE:SUN) is confident in meeting its 2024 EBITDA guidance and expects to continue delivering strong results across all business segments.
Negative Points
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Fuel distribution volumes were down 2% compared to the second quarter, indicating potential challenges in maintaining volume growth.
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Extended maintenance activities at two refineries impacted pipeline segment volumes and revenue during the third quarter.
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The macro environment in the U.S. has seen a decrease in year-over-year demand, which could affect future performance.
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There is ongoing uncertainty regarding regulatory impacts, such as the DC Court of Appeals ruling on pipeline tariffs.
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Potential recontracting risks exist for certain assets, such as the Corpus Christi terminal, which could impact future revenue streams.