• Adjusted EBITDA (Q4 2024): $446 million, excluding $7 million of onetime transaction expenses.
• Growth Capital Expenditure (Q4 2024): $74 million.
• Maintenance Capital Expenditure (Q4 2024): $58 million.
• Distributable Cash Flow as Adjusted (Q4 2024): $261 million.
• Trailing 12-Month Coverage Ratio: 1.9x.
• Adjusted EBITDA (Full Year 2024): $1.56 billion, a 62% increase compared to 2023.
• Liquidity (End of 2024): Approximately $1.3 billion remaining on revolving credit facility.
• Leverage (End of 2024): 4.1x, flat to last quarter.
• Distribution Per Unit (Declared January 2025): $0.8865, a 1.25% increase over last quarter.
• Fuel Distribution Segment Adjusted EBITDA (Q4 2024): $192 million.
• Fuel Volume Distributed (Q4 2024): 2.2 billion gallons, up 1% versus last quarter.
• Reported Margin (Q4 2024): $0.106 per gallon.
• Pipeline Systems Segment Adjusted EBITDA (Q4 2024): $193 million, excluding $5 million of transaction expenses.
• Pipeline Throughput (Q4 2024): 1.4 million barrels per day.
• Terminals Segment Adjusted EBITDA (Q4 2024): $61 million, excluding $2 million of transaction expenses.
• Terminals Throughput (Q4 2024): 600,000 barrels per day.
• 2025 Adjusted EBITDA Guidance: $1.9 billion to $1.95 billion.

• Warning! GuruFocus has detected 8 Warning Signs with SUN.

Release Date: February 11, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Sunoco LP (NYSE:SUN) achieved a record year in 2024 with an adjusted EBITDA of $1.56 billion, a 62% increase compared to 2023.
• The integration of NuStar assets was completed efficiently, contributing to strong financial performance and synergies.
• Sunoco LP (NYSE:SUN) declared a distribution increase of 1.25% per unit, with plans for at least 5% growth in distributions this year.
• The company's liquidity position remains strong, with $1.3 billion available on the revolving credit facility.
• Sunoco LP (NYSE:SUN) has a balanced mix of Fuel Distribution and midstream assets, positioning it well for future growth.

Negative Points

• Fourth quarter Fuel Distribution segment EBITDA decreased to $192 million from $253 million in the previous quarter.
• Reported margin per gallon in the Fuel Distribution segment declined compared to the previous quarter and the same quarter last year.
• The Terminals segment saw a decrease in adjusted EBITDA from $70 million in the third quarter to $61 million in the fourth quarter.
• The company faces potential challenges from tariffs and volatility in commodity prices, which could impact future performance.
• There is uncertainty in the macroeconomic environment, including inflation and potential changes in energy policies, which could affect operations.

Q & A Highlights

Q: Can you provide insights into the fourth quarter fuel distribution results and early 2025 outlook, especially considering the lack of volatility in gasoline and diesel prices? Also, how might tariffs impact your business? A: Austin Harkness, Senior Vice President - Pricing, Optimization and Supply and Trading, noted that the fourth quarter was strong despite following two record quarters. The macro environment remains constructive, with elevated breakevens and signs of demand recovery. Joseph Kim, CEO, added that higher tariffs could lead to higher prices, benefiting Sunoco due to its strong track record in inflationary periods. Volatility presents opportunities, and they remain confident in their 2025 guidance.

Q: Could you elaborate on the growth CapEx of at least $400 million and its expected cadence? A: Karl Fails, Chief Operations Officer, explained that growth CapEx is primarily for optimization and new customer sign-ups, with flexibility to adjust based on opportunities. The time between capital spend and cash flow realization is relatively short, supporting continued growth and DCF per common unit increases.

Q: What is your outlook on refined product demand across your assets, considering recent bullish comments from refining management teams? A: Joseph Kim, CEO, expressed a bullish long-term view on refined products, noting that over 90% of transportation energy comes from them. Despite energy transition headlines, refined products will continue to fuel the economy for decades, and Sunoco is well-positioned to capitalize on this.

Q: Can you provide more details on the Pipeline segment's recent volume uplift and related EBITDA increase? A: Karl Fails, Chief Operations Officer, highlighted strong fourth-quarter performance due to higher volumes and MVC contributions. The absence of major refinery downtime and seasonal agricultural demand contributed to the uplift. They view the segment as a strong future contributor.

Q: Regarding distribution growth, what has changed since December to now include "at least" 5% growth? A: Joseph Kim, CEO, emphasized their confidence in maintaining a stable and growing distribution, supported by consistent DCF per common unit growth. The "at least" 5% growth reflects their confidence in business fundamentals and accretive growth, with 5% as the floor for 2025 and a multiyear increase plan.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.