-- Reports strong first quarter results, including net income of $644
million, Adjusted EBITDA(1) of $867 million, excluding one-time
transaction-related expenses(2), and Distributable Cash Flow, as
adjusted(1), of $535 million
-- Increases quarterly distribution by 6.25%. The first quarter of 2026
distribution represents an increase of over 10% versus the first quarter
of 2025
-- Completes the acquisition of TanQuid
DALLAS--(BUSINESS WIRE)--May 05, 2026--
Sunoco LP $(SUN)$ ("SUN" or the "Partnership") and SunocoCorp LLC $(SUNC)$ ("SUNC") today reported financial and operating results for the quarter ended March 31, 2026.
Financial and Operational Highlights Attributable to Sunoco LP
Net income for the first quarter of 2026 was $644 million compared to $207 million in the first quarter of 2025.
Adjusted EBITDA for the first quarter of 2026 was $858 million compared to $458 million in the first quarter of 2025. Adjusted EBITDA for the first quarter of 2026 included $9 million of one-time transaction-related expenses and $102 million from a one-time gain on sale of inventory.
Distributable Cash Flow, as adjusted, for the first quarter of 2026 was $535 million compared to $310 million in the first quarter of 2025.
Adjusted EBITDA for the Fuel Distribution segment for the first quarter of 2026 was $529 million compared to $220 million in the first quarter of 2025. Adjusted EBITDA for the first quarter of 2026 included $9 million of one-time transaction-related expenses and $92 million from a gain on sale of inventory. The segment sold approximately 3.8 billion gallons of fuel in the first quarter of 2026. Fuel margin for all gallons sold was 17.0 cents per gallon for the first quarter of 2026.
Adjusted EBITDA for the Pipeline Systems segment for the first quarter of 2026 was $179 million compared to $172 million in the first quarter of 2025. The segment averaged throughput volumes of approximately 1.3 million barrels per day in the first quarter of 2026.
Adjusted EBITDA for the Terminals segment for the first quarter of 2026 was $107 million compared to $66 million in the first quarter of 2025. The segment averaged throughput volumes of approximately 1.0 million barrels per day in the first quarter of 2026.
Adjusted EBITDA for the Refinery segment for the first quarter of 2026 was $43 million. Adjusted EBITDA for the first quarter of 2026 included $10 million from a gain on sale of inventory. The segment averaged throughput volumes of approximately 22 thousand barrels per day in the first quarter of 2026. Operations during the first quarter of 2026 were impacted by the planned 50-day maintenance turnaround.
Distribution
On April 21, 2026, SUN and SUNC declared a distribution for the first quarter of 2026 of $0.9899 per unit, or $3.9596 per unit on an annualized basis. This represents an increase of approximately 6.25%, or $0.0582 per unit, as compared with the quarter ended December 31, 2025.
This 6.25% increase is inclusive of a one-time step-up of 5% and a quarterly increase of 1.25%. The quarterly increase reflects Sunoco's continued financial stability, execution of highly accretive acquisitions and growth projects, and confidence in future distribution increases.
The first quarter of 2026 distribution represents an increase of over 10% versus the first quarter of 2025 distribution. This increase reflects SUN's secure and growing distribution, supported by distribution increases of 2% in 2023, 4% in 2024, and 5% in 2025.
This is the sixth consecutive quarterly increase in SUN's distribution and is consistent with SUN's capital allocation strategy which includes a multi-year distribution growth rate of at least 5%.
The SUN and SUNC quarterly distributions will be paid on May 20, 2026, to holders of the representative securities of record on May 8, 2026.
Liquidity and Leverage
At March 31, 2026, SUN had long-term debt of approximately $13.9 billion and approximately $2.2 billion of liquidity remaining on its revolving credit facility. SUN's leverage ratio of net debt to Adjusted EBITDA, calculated in accordance with its revolving credit facility, was approximately 4.0 times at the end of the first quarter.
Capital Spending
SUN's total capital expenditures in the first quarter of 2026 were $199 million, which includes $106 million of growth capital and $93 million of maintenance capital. This includes the Partnership's proportionate share of capital expenditures related to its joint ventures with Energy Transfer.
SUN's segment results and other supplementary data are provided after the financial tables below.
SunocoCorp LLC
SUNC owns a limited partner interest in SUN. SUNC consolidates SUN's results into its financial statements, which is reflected in the consolidated balance sheets and condensed consolidated statement of operations tables attached hereto.
(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 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.
Earnings Conference Call
Sunoco LP management will hold a conference call on Tuesday, May 5, 2026, at 9:00 a.m. Central Time (10:00 a.m. Eastern Time) to discuss results and recent developments. The conference call will be broadcast live via an internet webcast, which can be accessed in the Investor Relations section of Sunoco's website at www.sunocolp.com under Webcasts and Presentations. The call will also be available for replay on the Partnership's website for a limited time.
About Sunoco
Sunoco LP 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 over 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 LLC is a publicly traded limited liability company that owns a 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
-- Financial Schedules Follow --
SUNOCO LP
CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
(unaudited)
--------------------------------------------------------------------------
March 31, December 31,
2026 2025
----------- ----------------
ASSETS
Current assets:
Cash and cash equivalents $ 718 $ 891
Accounts receivable, net 3,442 1,972
Inventories, net 2,347 2,383
Other current assets 342 270
------ ---------
Total current assets 6,849 5,516
Property, plant and equipment 15,976 15,256
Accumulated depreciation (2,156) (1,848)
------ ---------
Property, plant and equipment, net 13,820 13,408
Other assets:
Operating lease right-of-use assets, net 1,518 1,449
Goodwill 3,061 3,026
Intangible assets, net 2,369 2,411
Other non-current assets 1,030 928
Investments in unconsolidated affiliates 1,611 1,624
------ ---------
Total assets $ 30,258 $ 28,362
====== =========
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $ 3,427 $ 2,485
Accounts payable to affiliates 374 331
Accrued expenses and other current
liabilities 923 953
Operating lease current liabilities 172 211
Current maturities of long-term debt 12 17
------ ---------
Total current liabilities 4,908 3,997
Operating lease non-current liabilities 1,311 1,255
Long-term debt, net 13,920 13,372
Advances from affiliates 76 78
Deferred tax liabilities 1,160 1,139
Other non-current liabilities 536 512
------ ---------
Total liabilities 21,911 20,353
Commitments and contingencies
Equity:
Limited partners:
Preferred unitholders (1,500,000 units
issued and outstanding as of March 31,
2026 and December 31, 2025) 1,478 1,507
Common unitholders (136,894,754 units
issued and outstanding as of March 31,
2026 and 136,866,854 units issued and
outstanding as of December 31, 2025) 4,246 3,970
Class C unitholders - held by
subsidiaries (16,410,780 units issued
and outstanding as of March 31, 2026 and
December 31, 2025) -- --
Class D unitholder (51,517,198 units
issued and outstanding as of March 31,
2026 and December 31, 2025) 2,639 2,538
Accumulated other comprehensive loss (16) (6)
------ ---------
Total equity 8,347 8,009
------ ---------
Total liabilities and equity $ 30,258 $ 28,362
====== =========
SUNOCO LP
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions, except per unit data)
(unaudited)
------------------------------------------------------------------------
Three Months Ended March 31,
----------------------------------
2026 2025
------------ -----------
REVENUES $ 10,690 $ 5,179
COSTS AND EXPENSES:
Cost of sales (excluding items
shown separately below) 9,001 4,526
Operating expenses 330 143
General and administrative 155 39
Lease expense 53 16
(Gain) loss on disposal of assets
and impairment charges (1) 3
Depreciation, amortization and
accretion 286 156
------------ -----------
Total cost of sales and
operating expenses 9,824 4,883
OPERATING INCOME 866 296
OTHER INCOME (EXPENSE):
Interest expense, net (201) (121)
Equity in earnings of
unconsolidated affiliates 42 32
Loss on extinguishment of debt (1) (2)
Other, net (27) --
------------ -----------
INCOME BEFORE INCOME TAXES 679 205
Income tax expense (benefit) 35 (2)
------------ -----------
NET INCOME $ 644 $ 207
Less: Preferred unitholders'
interest in net income 30 --
Less: Class D unitholder's
interest in net income 149 --
------------ -----------
NET INCOME ATTRIBUTABLE TO COMMON
UNITS $ 465 $ 207
============ ===========
NET INCOME PER COMMON UNIT:
Basic $ 2.86 $ 1.22
Diluted $ 2.85 $ 1.21
WEIGHTED AVERAGE COMMON UNITS
OUTSTANDING:
Basic 136,888,311 136,267,512
Diluted 137,551,768 136,936,311
CASH DISTRIBUTION PER COMMON UNIT $ 0.9899 $ 0.8976
SUNOCO LP
SUPPLEMENTAL INFORMATION
(Dollars and units in millions)
(unaudited)
----------------------------------------------------------------------------
Three Months Ended March 31,
--------------------------------------
2026 2025
---------- ----------
Net income $ 644 $ 207
Depreciation, amortization and
accretion 286 156
Interest expense, net 201 121
Non-cash unit-based compensation
expense 6 4
(Gain) loss on disposal of assets
and impairment charges (1) 3
Loss on extinguishment of debt 1 2
Unrealized (gains) losses on
commodity derivatives 56 (1)
Inventory valuation adjustments (444) (61)
Equity in earnings of
unconsolidated affiliates (42) (32)
Adjusted EBITDA related to
unconsolidated affiliates 69 50
Other non-cash adjustments 47 11
Income tax expense (benefit) 35 (2)
---------- ----------
Adjusted EBITDA (1) 858 458
Transaction-related expenses 9 --
---------- ----------
Adjusted EBITDA (1) , excluding
transaction-related expenses $ 867 $ 458
========== ==========
Adjusted EBITDA (1) $ 858 $ 458
Adjusted EBITDA related to
unconsolidated affiliates (69) (50)
Distributable cash flow from
unconsolidated affiliates 69 49
Series A Preferred Units
distributions (30) --
Cash interest expense (192) (118)
Current income tax expense (17) (5)
Maintenance capital expenditures
(2) (93) (24)
---------- ----------
Distributable Cash Flow 526 310
Transaction-related expenses and
adjustments (3) 9 --
---------- ----------
Distributable Cash Flow, as adjusted
(1) $ 535 $ 310
========== ==========
Distributions to Partners:
Limited Partners $ 187 $ 122
General Partner 71 39
---------- ----------
Total distributions to be paid to
partners $ 258 $ 161
========== ==========
Limited Partner units outstanding -
end of period (4) 136.9 136.3
(1) Adjusted EBITDA is defined as net income before net interest expense,
income tax expense, depreciation, amortization and accretion expense,
non-cash compensation expense, gains and losses on disposal of asset,
non-cash impairment charges, losses on extinguishment of debt,
unrealized gains and losses on commodity derivatives, inventory
valuation adjustments, certain foreign currency transaction gains and
losses 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 preferred unit
distributions, 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 March 31, 2026 and 2025, excludes nil and $2
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 March 31, 2026 and 2025, SUN incurred $9
million and nil of transaction-related expenses, respectively.
(4) Limited Partner units outstanding at the end of period includes 136.9
million common units and 51.5 million Class D units.
SUNOCO LP
SUMMARY ANALYSIS OF QUARTERLY RESULTS BY SEGMENT
(Tabular dollar amounts in millions)
(unaudited)
----------------------------------------------------------------------------
Three Months Ended March 31,
----------------------------------
2026 2025
----------------- ---------------
Segment Adjusted EBITDA:
Fuel Distribution $ 529 $ 220
Pipeline Systems 179 172
Terminals 107 66
Refinery 43 --
---- ----------- --- ----------
Adjusted EBITDA 858 458
Transaction-related expenses 9 --
---- ----------- --- ----------
Adjusted EBITDA, excluding
transaction-related expenses $ 867 $ 458
==== =========== === ==========
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 March 31,
----------------------------------
2026 2025
-------------------- ------------
Fuel Distribution segment profit $ 1,236 $ 361
Pipeline Systems segment profit 184 174
Terminals segment profit 225 118
Refinery segment profit 44 --
--- --------------- --------
Total segment profit 1,689 653
Depreciation, amortization and
accretion, excluding corporate and
other 284 156
--- --------------- --------
Gross profit $ 1,405 $ 497
=== =============== ========
Fuel Distribution
Three Months Ended March 31,
--------------------------------------
2026 2025
---------- ----------
Motor fuel gallons sold (millions) 3,796 2,087
Motor fuel profit cents per gallon
(1) 17.0 c 11.5 c
Fuel profit $ 1,044 $ 297
Non-fuel profit 153 35
Lease profit 39 29
---------- ----------
Fuel Distribution segment profit 1,236 361
Unrealized (gains) losses on
commodity risk management
activities 54 (1)
Expenses, excluding non-cash
unit-based compensation expense
(2) (391) (92)
Adjusted EBITDA related to
unconsolidated affiliates 8 --
Inventory valuation adjustments (398) (58)
Other 20 10
---------- ----------
Segment Adjusted EBITDA 529 220
Transaction-related expenses 9 --
---------- ----------
Segment Adjusted EBITDA, excluding
transaction-related expenses $ 538 $ 220
========== ==========
(1) Excludes the impact of inventory valuation adjustments consistent with
the definition of Adjusted EBITDA.
(2) Includes operating expenses, general and administrative and lease
expense.
Volumes. For the three months ended March 31, 2026 compared to the same period
last year, volumes increased primarily due to the Parkland Acquisition..
Segment Adjusted EBITDA. For the three months ended March 31, 2026 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 $590 million in segment profit (excluding unrealized gains and
losses on commodity risk management activities and inventory valuation
adjustments) primarily due to the Parkland Acquisition and other acquisitions,
as well as a favorable impact from a one-time gain on sale of inventory in the
current period; and an increase of $8 million in Adjusted EBITDA related to
unconsolidated affiliates from the Parkland Acquisition; partially offset by
an increase of $299 million in expenses primarily due to the Parkland
Acquisition.
Pipeline Systems
Three Months Ended March 31,
--------------------------------------
2026 2025
---------- ----------
Pipelines throughput (thousand
barrels per day) 1,291 1,258
Pipeline Systems segment profit $ 184 $ 174
Expenses, excluding non-cash
unit-based compensation expense
(1) (61) (53)
Adjusted EBITDA related to
unconsolidated affiliates 56 50
Other -- 1
---------- ----------
Segment Adjusted EBITDA 179 172
Transaction-related expenses -- --
---------- ----------
Segment Adjusted EBITDA, excluding
transaction-related expenses $ 179 $ 172
========== ==========
(1) Includes operating expenses, general and administrative and lease
expense.
Volumes. For the three months ended March 31, 2026 compared to the same period
last year, the increase in throughput volumes reflected the impact of refinery
turnarounds in the prior period and overall increased market demand in 2026.
Segment Adjusted EBITDA. For the three months ended March 31, 2026 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 $10 million increase in segment profit primarily due to refinery turnarounds
and contract expirations in the prior period, improved butane blending, and
overall increased market demand; and a $6 million increase in Adjusted EBITDA
related to ET-S Permian; partially offset by a $8 million increase in expenses
primarily due to higher utility costs, maintenance costs and corporate
allocations.
Terminals
Three Months Ended March 31,
--------------------------------------
2026 2025
--- ----------- --------
Throughput (thousand barrels per
day) 1,013 620
Terminals segment profit $ 225 $ 118
Expenses, excluding non-cash
unit-based compensation expense
(1) (74) (49)
Inventory valuation adjustments (44) (3)
--- ----------- --------
Segment Adjusted EBITDA 107 66
Transaction-related expenses -- --
--- ----------- --------
Segment Adjusted EBITDA, excluding
transaction-related expenses $ 107 $ 66
=== =========== ========
(1) Includes operating expenses, general and administrative and lease
expense.
Volumes. For the three months ended March 31, 2026 compared to the same period
last year, volumes increased due to recently acquired assets.
Segment Adjusted EBITDA. For the three months ended March 31, 2026 compared to
the same period last year, Segment Adjusted EBITDA related to our Terminals
segment increased due to the net impact of the following:
a $66 million increase in segment profit (excluding inventory valuation
adjustments) primarily due to the acquisitions of Parkland and TanQuid;
partially offset by a $25 million increase in expenses primarily due to the
acquisitions of Parkland and TanQuid.
Refinery
Three Months Ended March 31,
------------------------------------
2026 2025
---------------------- ------------
Crude utilization 38% --
Composite utilization 40% --
Crude throughput (thousand barrels per
day) 21 --
Bio-feedstock throughput (thousand
barrels per day) 1 --
Refinery segment profit (1) $ 44 $ --
Unrealized losses on commodity risk
management activities 2 --
Expenses, excluding non-cash
unit-based compensation expense
(2) (6) --
Adjusted EBITDA related to
unconsolidated affiliates 5 --
Inventory valuation adjustments (2) --
---- ------- ------ --- -------
Segment Adjusted EBITDA 43 --
Transaction-related expenses -- --
---- ------- ------- --- -------
Segment Adjusted EBITDA, excluding
transaction-related expenses $ 43 $ --
==== ======= ======= === =======
(1) Refinery segment profit includes $61 million of production costs,
supply and logistics, and terminal operating costs for the three months
ended March 31, 2026
(2) Includes operating expenses, general and administrative and lease
expense.
Volumes. For the three months ended March 31, 2026 compared to the same period
last year, volumes increased due to recently acquired assets.
Segment Adjusted EBITDA. For the three months ended March 31, 2026 compared to
the same period last year, Segment Adjusted EBITDA related to our Refinery
segment increased due to the Parkland Acquisition.
SUNOCOCORP LLC FINANCIAL INFORMATION
--------------------------------------------------------------------------
The following section provides financial information for SUNC. SUNC's
separate financial statements will reflect SUN on a consolidated basis for
all periods; accordingly, the information below reflects SUN on a
consolidated basis for the entire period.
SUNOCOCORP LLC
CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
(unaudited)
March 31, December 31,
2026 2025
----------- ----------------
ASSETS
Current assets:
Cash and cash equivalents $ 718 $ 891
Accounts receivable, net 3,442 1,972
Inventories, net 2,347 2,383
Other current assets 342 270
------ ---------
Total current assets 6,849 5,516
Property, plant and equipment 15,976 15,256
Accumulated depreciation (2,156) (1,848)
------ ---------
Property, plant and equipment, net 13,820 13,408
Other assets:
Operating lease right-of-use assets, net 1,518 1,449
Goodwill 3,061 3,026
Intangible assets, net 2,369 2,411
Other non-current assets 1,030 928
Investments in unconsolidated affiliates 1,611 1,624
------ ---------
Total assets $ 30,258 $ 28,362
====== =========
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $ 3,427 $ 2,485
Accounts payable to affiliates 374 331
Accrued expenses and other current
liabilities 923 953
Operating lease current liabilities 172 211
Current maturities of long-term debt 12 17
------ ---------
Total current liabilities 4,908 3,997
Operating lease non-current liabilities 1,311 1,255
Long-term debt, net 13,920 13,372
Advances from affiliates 76 78
Deferred tax liabilities 1,195 1,135
Other non-current liabilities 536 512
------ ---------
Total liabilities 21,946 20,349
Commitments and contingencies (Note 13)
Equity:
Common unitholders (51,517,198 units
issued and outstanding as of March 31,
2026 and 51,517,198 units issued and
outstanding as of December 31, 2025) 2,604 2,542
Accumulated other comprehensive loss (16) (6)
------ ---------
Total Member's Equity 2,588 2,536
Noncontrolling interests 5,724 5,477
------ ---------
Total equity 8,312 8,013
------ ---------
Total liabilities and equity $ 30,258 $ 28,362
====== =========
SUNOCOCORP LLC
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars in millions, except per unit data)
(unaudited)
Three Months Ended
March 31, 2026
----------------------
REVENUES: $ 10,690
COSTS AND EXPENSES:
Cost of sales (excluding items shown separately
below) 9,001
Operating expenses 330
General and administrative 155
Lease expense 53
Gain on disposal of assets and impairment charges (1)
Depreciation, amortization and accretion 286
---------------
Total cost of sales and operating expenses 9,824
---------------
OPERATING INCOME 866
OTHER INCOME (EXPENSE):
Interest expense, net (201)
Equity in earnings of unconsolidated affiliates 42
Loss on extinguishment of debt (1)
Other, net (27)
---------------
INCOME BEFORE INCOME TAXES 679
Income tax expense 74
---------------
NET INCOME 605
Less: Net income attributable to noncontrolling
interests 495
---------------
NET INCOME ATTRIBUTABLE TO MEMBERS $ 110
===============
NET INCOME PER COMMON UNIT:
Basic $ 2.14
Diluted $ 2.13
WEIGHTED AVERAGE COMMON UNITS OUTSTANDING:
Basic 51,517,198
Diluted 51,540,822
CASH DISTRIBUTION PER COMMON UNIT $ 0.9899
SUNOCOCORP LLC
SUPPLEMENTAL INFORMATION
(Dollars and units in millions)
(unaudited)
------------------------------------------------------------------------------
Three Months Ended
March 31, 2026
----------------------
Reconciliation of net income to Adjusted EBITDA:
Net income $ 605
Depreciation, amortization and accretion 286
Interest expense, net 201
Non-cash unit-based compensation expense 6
Gain on disposal of assets and impairment charges (1)
Loss on extinguishment of debt 1
Unrealized losses on commodity derivatives 56
Inventory valuation adjustments (444)
Equity in earnings of unconsolidated affiliates (42)
Adjusted EBITDA related to unconsolidated
affiliates 69
Other non-cash adjustments 47
Income tax expense 74
--- ------------ ---
Adjusted EBITDA (1) $ 858
=== ============ ===
Transaction-related expenses (3) 9
--- ------------ ---
Adjusted EBITDA (1) , excluding transaction-related
expenses $ 867
=== ============ ===
Adjusted EBITDA (1) $ 858
Adjusted EBITDA related to unconsolidated affiliate (69)
Distributable cash flow from unconsolidated
affiliate 69
Preferred Unit Holders' Distributions (30)
Cash interest expense (192)
Income tax expense, current (17)
Maintenance capital expenditures (2) (93)
--- ------------
Distributable Cash Flow (consolidated) $ 526
=== ============ ===
Distributable Cash Flow from Sunoco LP (526)
Distributions from Sunoco LP 51
--- ------------ ---
Distributable Cash Flow attributable to the common
unitholders of SunocoCorp $ 51
=== ============ ===
Distributions to common unitholders $ 51
Common units outstanding - end of period 51.5
(1) Adjusted EBITDA is defined as net income before net interest expense,
income tax expense, depreciation, amortization and accretion expense,
non-cash compensation expense, gains and losses on disposal of asset,
non-cash impairment charges, losses on extinguishment of debt,
unrealized gains and losses on commodity derivatives, inventory
valuation adjustments, certain foreign currency transaction gains and
losses 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 preferred unit
distributions, 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. On a consolidated basis, Distributable Cash
Flow includes 100% of the Distributable Cash Flow of Sunoco LP;
however, given the existence of noncontrolling interests in Sunoco LP,
the Distributable Cash Flow generated by Sunoco LP is not available in
its entirety to be distributed to SunocoCorp's unitholders. In order to
reflect the cash flows available for distribution to SunocoCorp's
unitholders, we have reported for SunocoCorp Distributable Cash Flow
attributable to its common unitholders, which reflects distributions to
be received by SunocoCorp from Sunoco LP.
We believe Adjusted EBITDA and Distributable Cash Flow are useful to
SunocoCorp's investors in evaluating its 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 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 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 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, 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 Sunoco LP'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 March 31, 2026, excludes nil 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 March 31, 2026, SUN incurred $9 million of
transaction-related expenses, respectively.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260505551249/en/
CONTACT: Investors:
Scott Grischow, Treasurer, Senior Vice President -- Finance
(214) 840-5660, scott.grischow@sunoco.com
Brian Brungardt, Director -- Investor Relations
(214) 840-5437, brian.brungardt@sunoco.com
Media:
Chris Cho, Director -- Corporate Communications
(469) 646-1647, chris.cho@sunoco.com
(END) Dow Jones Newswires
May 05, 2026 07:00 ET (11:00 GMT)