Units of Sunoco LP (NYSE: SUN ) have been a poor performer over the past year, losing 3% of their value and largely missing out on the equity market’s upside, though it does pay a 7+% dividend. Units have been on a steady decline since MayOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me kno ...

DALLAS, Sept. 4, 2025 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("Sunoco") today announced the pricing of a private offering (this "offering") of 1.5 million of its 7.875% Series A Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Units (the "Series A Preferred Units") at an offering price of $1,000 per unit. Sunoco will receive gross proceeds of $1.5 billion from the sale of the Series A Preferred Units before deducting the initial purchasers' discount and other estimated offering expenses. This offer ...

DALLAS, Sept. 4, 2025 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("Sunoco") today announced the launch of a private offering (this "offering") of 1,000,000 of its Series A Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Units (the "Series A Preferred Units").Sunoco intends to use the net proceeds from this offering (i) on the closing date (the "Effective Date") of Sunoco's acquisition of all of the issued and outstanding common shares of Parkland Corporation ("Parkland" and such acquisition, the "Park ...

Core Insights - Stardust Solar Energy Inc. reported a strong performance in Q2 2025, with revenue of $2.21 million, a 13% increase year-over-year, and gross profit of $1 million, up 84% year-over-year [1][2][10] - The company experienced a significant increase in project backlog, reaching $2.52 million in new contracts signed during Q2 2025, a 69% increase compared to the same period in 2024 [3][10] Financial Performance - Year-to-date revenue for 2025 was $2.21 million, reflecting a 13% increase from the prior year, with gross profit rising to $1 million from $0.54 million in Q2 2024, resulting in a gross margin increase from approximately 28% to 45% [2][6] - Revenue growth was driven by a 175% increase in franchise fees ($696K vs. $253K) and a 28% increase in training revenue, while direct costs declined year-over-year [6][10] - Operating expenses rose to $2.1 million from $1.1 million, primarily due to increased advertising and promotion expenses, non-cash share-based compensation, and interest and bank charges [6][10] Project Backlog and Growth - The project backlog increased significantly, with a total backlog of $3.2 million year-to-date, indicating strong future revenue potential [3][10] - The franchise network expanded from 83 territories at the start of 2025 to 96 territories, with expectations to exceed 100 territories by year-end 2025 [9][11] Management Commentary and Strategic Outlook - Management expressed confidence in the company's performance, highlighting the strong revenue growth, improved gross margins, and reduced liabilities [10] - The company plans to continue expanding its franchise network and enhancing its service offerings to drive future growth and shareholder value [11][12]

Core Viewpoint - Stardust Solar Energy Inc. has introduced a new by-law (By-Law No. 1) that establishes an advance notice requirement for shareholders intending to nominate directors, aiming to enhance corporate governance and transparency [1][2]. Group 1: By-Law No. 1 Details - By-Law No. 1 mandates that shareholders must notify the Corporation in writing of their intention to nominate directors prior to any meeting where directors are to be elected [2]. - The by-law specifies that for annual meetings, notice must be given not less than 30 days and not more than 65 days before the meeting, with specific provisions if the meeting is announced less than 40 days in advance [4]. - For special meetings, notice must be provided no later than the close of business on the 15th day following the public announcement of the meeting date [5]. Group 2: Implementation and Ratification - By-Law No. 1 is effective immediately and will be presented for ratification at the upcoming annual and special meeting on September 18, 2025 [5][6]. - If confirmed at the meeting, By-Law No. 1 will remain in effect as ratified by the shareholders [6]. Group 3: Company Overview - Stardust Solar is a North American franchisor specializing in renewable energy installation services, including solar panels, energy storage systems, and electric vehicle supply equipment [7]. - The company supports entrepreneurs with branded business management services, advanced equipment, and comprehensive support in various operational areas [7].

Core Insights - Sunoco LP (SUN) reported second-quarter 2025 earnings of $0.33 per unit, missing the Zacks Consensus Estimate of $1.68 and declining from $3.85 per unit in the same quarter last year [1][9] - Total quarterly revenues were $5.39 billion, below the Zacks Consensus Estimate of $5.62 billion and down from $6.17 billion in the year-ago quarter [1][9] - The weaker-than-expected results were primarily due to lower contributions from the Fuel Distribution segment, attributed to reduced motor fuel profit per gallon [2][9] Distribution and Growth - The board declared a distribution of $0.9088 per unit for Q2 2025, marking a sequential increase of 1.25%, with an annualized basis of $3.6352 [3] - The partnership aims for a distribution growth rate of at least 5% for 2025 and plans to announce future increases quarterly [3] Segment Performance - **Fuel Distribution**: Adjusted EBITDA decreased to $206 million from $245 million in Q2 2024, impacted by lower fuel profits and higher expenses [4] - **Pipeline Systems**: Adjusted EBITDA rose to $177 million from $53 million in the prior year, aided by the acquisition of NuStar and a decline in operating costs [5] - **Terminals**: Adjusted EBITDA increased to $71 million from $22 million in the same period last year, primarily due to the NuStar acquisition, with throughput volumes at 692 thousand barrels per day compared to 638 thousand barrels per day in Q2 2024 [6] Financial Metrics - Motor fuel gross profit per gallon was 10.5 cents, down from 11.8 cents year-over-year [7] - Total operating income for the quarter was $203 million, up from $150 million in the prior-year quarter [7] - Net income for Q2 2025 was $86 million, compared to $501 million in Q2 2024 [7] - Adjusted distributable cash flow totaled $300 million, slightly up from $295 million year-over-year [8] Expenses and Capital Expenditure - Total cost of sales and operating expenses was $5.19 billion, down from $6.02 billion a year ago [10] - Capital expenditure for the quarter was $160 million, consisting of $120 million in growth capital and $40 million in maintenance capital [10] Balance Sheet and Outlook - As of June 30, 2025, Sunoco had cash and cash equivalents of $116 million and net long-term debt of $7.8 billion [11] - The company reaffirmed its full-year 2025 adjusted EBITDA guidance in the range of $1.90-$1.95 billion and aims to meet its distribution growth target of at least 5% [12]

[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The unaudited consolidated financial statements detail the company's financial position, performance, and cash flows for the period [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) Financial statements show total assets of $14.43 billion, with a significant decrease in net income year-over-year Consolidated Balance Sheet Highlights (in millions) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $2,482 | $2,465 | | **Total Assets** | $14,428 | $14,375 | | **Total Current Liabilities** | $1,630 | $1,947 | | **Long-term Debt, net** | $7,803 | $7,484 | | **Total Liabilities** | $10,331 | $10,307 | | **Total Equity** | $4,097 | $4,068 | Consolidated Statement of Operations Highlights (in millions, except per unit data) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Total Revenues** | $10,569 | $11,673 | | **Operating Income** | $499 | $447 | | **Net Income** | $293 | $731 | | **Net Income per Common Unit (Basic)** | $1.55 | $6.43 | Consolidated Statement of Cash Flows Highlights (in millions) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $399 | $216 | | **Net cash (used in) provided by investing activities** | ($350) | $727 | | **Net cash used in financing activities** | ($27) | ($746) | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail major acquisitions like Parkland and TanQuid, debt structure, and segment performance - Announced a definitive agreement to acquire Parkland Corporation in a cash and equity transaction valued at approximately **$9.1 billion**, expected to close in Q4 2025[30](index=30&type=chunk) - Entered into an agreement to acquire TanQuid, which owns 16 fuel terminals in Europe, for approximately **€500 million**, with the transaction expected to close in the second half of 2025[35](index=35&type=chunk) - In March 2025, the Partnership issued **$1.0 billion of 6.250% senior notes** due 2033 and used the proceeds to repay $600 million of notes due 2025 and borrowings under its Credit Facility[49](index=49&type=chunk) Segment Adjusted EBITDA (in millions) | Segment | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Fuel Distribution | $426 | $463 | | Pipeline Systems | $349 | $53 | | Terminals | $137 | $46 | | **Total** | **$912** | **$562** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes financial results, focusing on major acquisitions and segment performance drivers [Recent Developments](index=25&type=section&id=Recent%20Developments) This section details significant strategic acquisitions and the impact of new tax legislation - Announced a definitive agreement to acquire Parkland Corporation in a cash and equity transaction valued at approximately **$9.1 billion**, expected to close in Q4 2025[97](index=97&type=chunk) - Entered an agreement to acquire TanQuid for approximately **€500 million**, which includes 15 fuel terminals in Germany and one in Poland, with the deal expected to close in H2 2025[103](index=103&type=chunk) - The "One Big Beautiful Bill Act" was signed into law on July 4, 2025, permanently reinstating **100% bonus depreciation**, which is anticipated to defer a significant portion of the Partnership's corporate subsidiaries' U.S. federal income taxes[106](index=106&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Consolidated Adjusted EBITDA grew significantly, driven by acquisitions, despite a drop in net income due to a prior-year gain Consolidated Adjusted EBITDA (in millions) | Period | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | **Three Months Ended June 30** | $454 | $320 | $134 | | **Six Months Ended June 30** | $912 | $562 | $350 | - The decrease in net income for H1 2025 to **$293 million** from $731 million in H1 2024 was primarily due to the absence of the **$598 million gain** on the West Texas Sale that occurred in April 2024[114](index=114&type=chunk) - Pipeline Systems segment Adjusted EBITDA increased by **$296 million** for H1 2025, driven by the NuStar acquisition and a **$95 million increase** in Adjusted EBITDA from the ET-S Permian joint venture[114](index=114&type=chunk)[132](index=132&type=chunk) - Terminals segment Adjusted EBITDA increased by **$91 million** for H1 2025, primarily due to contributions from the NuStar and Zenith European terminals acquisitions[114](index=114&type=chunk)[134](index=134&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity through cash from operations and its credit facility to fund capital expenditures - As of June 30, 2025, the company had **$116 million in cash** and cash equivalents and **$1.24 billion of available borrowing capacity** on its Credit Facility[136](index=136&type=chunk) - Net cash provided by operating activities increased to **$399 million** for the six months ended June 30, 2025, compared to $216 million for the same period in 2024[140](index=140&type=chunk) - The company projects approximately **$150 million in maintenance capital expenditures** and at least **$400 million in growth capital** for the full year 2025[149](index=149&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is exposed to interest rate risk on variable-rate debt and commodity price risk on fuel inventories - The company is subject to interest rate risk on its **$206 million** of outstanding borrowings under the Credit Facility as of June 30, 2025[160](index=160&type=chunk) - The company faces commodity price risk on its approximately **$1.15 billion of fuel inventory** and uses derivative instruments to hedge this risk, holding a position of **3.2 million barrels** with an aggregate unrealized gain of **$4 million** at June 30, 2025[161](index=161&type=chunk) [Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal controls over financial reporting were effective - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were **effective** as of the end of the period covered by this report[164](index=164&type=chunk) - There have been **no changes** in internal control over financial reporting during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, internal controls[165](index=165&type=chunk) [PART II - OTHER INFORMATION](index=41&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) The company is not party to any litigation expected to have a material adverse impact on its business - The company does not believe it is party to any litigation that will have a **material adverse impact** on its financial condition or operations[167](index=167&type=chunk) [Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in prior SEC filings - There have been **no material changes** from the risk factors described in the Annual Report on Form 10-K for the year ended December 31, 2024, and the Q1 2025 Form 10-Q[169](index=169&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company issued common units as partial consideration for an acquisition via a private placement - On May 29, 2025, the Partnership issued **251,646 common units** valued at approximately **$13 million** as partial consideration for an acquisition[171](index=171&type=chunk) - The issuance was **exempt from registration** under Section 4(a)(2) of the Securities Act of 1933, as it did not involve a public offering[171](index=171&type=chunk) [Exhibits](index=41&type=section&id=Item%206.%20Exhibits) This section lists key agreements and certifications filed as exhibits with the Form 10-Q - Lists key agreements filed as exhibits, including the Arrangement Agreement for the **Parkland Corporation acquisition** and amendments to the Third Amended and Restated Credit Agreement[173](index=173&type=chunk)[175](index=175&type=chunk)

Financial Data and Key Metrics Changes - The company reported a record second quarter with adjusted EBITDA of $464 million, excluding approximately $10 million of one-time transaction-related expenses, and distributable cash flows as adjusted of $300 million [3] - The leverage at the end of the quarter was just under 4.2 times [4] - A distribution of $90.88 per common unit was declared, representing an increase of 1.25% compared to the previous quarter, resulting in a trailing twelve-month coverage ratio of 1.9 times [4] Business Line Data and Key Metrics Changes - In the Fuel Distribution segment, adjusted EBITDA was $214 million, with volumes at 2.2 billion gallons, up 5% from the previous quarter but flat compared to the same quarter last year [6][7] - The Pipeline Systems segment reported adjusted EBITDA of $177 million, with throughput at 1.2 million barrels per day, down from 1.3 million barrels per day in the first quarter [8] - The Terminals segment delivered adjusted EBITDA of $73 million, with throughput at 692,000 barrels per day, up from 620,000 barrels per day in the first quarter [9] Market Data and Key Metrics Changes - The company continues to see solid demand across its system despite macro volatility, with gross profit supported by longer haul tariffs and strong agricultural demand in the Midwest [9] - The overall market for fuel distribution remains flat, but the company expects to leverage its investments for increased volume and EBITDA in the second half of the year [8][10] Company Strategy and Development Direction - The company aims to continue generating increasing distributable cash flow per unit, positioning itself for ongoing distribution increases and additional growth [5] - The acquisition of Parkland is expected to enhance the scale and efficiency of the company's pipeline and terminal segments, with anticipated double-digit accretion [13][14] - The company is focused on strong operational execution, expense discipline, and profit optimization while continuing to grow its asset base [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year guidance, with all three business segments performing well [12] - The company anticipates a strong second half of the year, outperforming the first half, driven by organic growth and acquisitions [12][14] - Recent macro developments, such as the expiration of the federal EV tax credit, are expected to support robust refined product demand for decades [16] Other Important Information - The company spent approximately $120 million on growth capital and $40 million on maintenance capital in the second quarter [3] - The company is on track to meet its 2025 projected capital spend, which includes at least $400 million of growth capital [3] Q&A Session Summary Question: Update on Parkland acquisition synergies and tax implications - Management feels confident in achieving $250 million in synergies by year three and maintaining a long-term leverage target of four times within twelve to eighteen months [21][24] - The recent budget bill is expected to minimize cash tax leakage and maintain parity dividends [25][26] Question: Expectations for fuel margins in the second half of the year - Management indicated that the fundamentals for the fuel distribution business remain healthy, with expectations for noticeable volume growth and healthy margins in the second half [31][33] Question: Capital allocation post-Parkland and Tanguid acquisitions - The top priorities post-acquisition are integrating the acquired assets and returning the balance sheet to the target leverage [44] - The company will assess market opportunities for growth after achieving integration and synergies [44][46] Question: Seasonal slowdown in fuel distribution volumes - Management confirmed expectations for a strong second half of the year, driven by organic investments and roll-up acquisitions [51][53]

Financial Data and Key Metrics Changes - The company reported a record second quarter with adjusted EBITDA of $464 million, excluding approximately $10 million of one-time transaction-related expenses, and distributable cash flows as adjusted of $300 million [3] - The distribution declared for the second quarter was $90.88 per common unit, representing an increase of 1.25% compared to the previous quarter, resulting in a trailing twelve-month coverage ratio of 1.9 times [4] - Leverage at the end of the quarter was just under 4.2 times [4] Business Line Data and Key Metrics Changes - In the Fuel Distribution segment, adjusted EBITDA was $214 million, with volumes at 2.2 billion gallons, up 5% from the previous quarter but flat compared to the same quarter last year [5][6] - The Pipeline Systems segment reported adjusted EBITDA of $177 million, with throughput at 1.2 million barrels per day, down from 1.3 million barrels per day in the first quarter [8] - The Terminals segment delivered adjusted EBITDA of $73 million, with throughput at 692,000 barrels per day, up from 620,000 barrels per day in the first quarter [9] Market Data and Key Metrics Changes - The company noted solid demand across its system despite macro volatility, with some minor impacts from planned turnaround activity on its crude system [8] - The overall market for fuel distribution remains flat, but the company has consistently grown its volume and fuel profit dollars over the last twelve to eighteen months [6][7] Company Strategy and Development Direction - The company expects to continue generating increasing distributable cash flow per unit, positioning itself for ongoing distribution increases and additional growth [5] - The acquisition of Parkland is expected to enhance the scale and efficiency of the company's pipeline and terminal segments, with anticipated double-digit accretion [13][14] - The company is focused on strong operational execution, expense discipline, and profit optimization while continuing to grow its asset base [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year EBITDA guidance and expects the second half of the year to outperform the first half [12] - The company believes that refined product demand will remain robust for decades, supported by recent macro developments [16] - Management is optimistic about the integration of Parkland and the expected synergies, estimating $250 million in synergies by year three [22] Other Important Information - The company plans to close the acquisition of Tainquid terminal assets in Germany and Poland in early Q4 [14] - The regulatory process for the Parkland acquisition is proceeding as expected, with a close date estimated for Q4 [47] Q&A Session Summary Question: Update on Parkland acquisition synergies and tax implications - Management feels confident about achieving $250 million in synergies by year three and maintaining a strong balance sheet [22] - Tax planning indicates that Suncorp dividends will remain at parity with Sunoco LP distributions well past the two-year period [24] Question: Expectations for fuel margins in the second half of the year - The company anticipates a strong second half driven by organic investments and roll-up acquisitions, despite the absence of higher-margin businesses in reported numbers [30][51] Question: Capital allocation post-Parkland and Tanguid - The top priorities post-acquisition are integrating the acquired assets and returning the balance sheet to the target leverage ratio [43] - The company will assess market opportunities for future growth after achieving these priorities [44]

[Second Quarter 2025 Financial and Operating Results Overview](index=1&type=section&id=Second%20Quarter%202025%20Financial%20and%20Operating%20Results%20Overview) [Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) Sunoco LP reported **$86 million** net income and **$454 million** Adjusted EBITDA in Q2 2025, with strong growth in pipeline systems and terminals offsetting fuel distribution changes Q2 2025 Key Financial Metrics | Metric | Q2 2025 (million USD) | Q2 2024 (million USD) | Change (YoY) | Q2 2025 Adjusted EBITDA (Excluding Transaction-Related Expenses) | Metric | Q2 2025 (million USD) | Q2 2024 (million USD) | Change (YoY) | Q2 2025 Adjusted EBITDA by Business Segment | Business Segment | Q2 2025 (million USD) | Q2 2024 (million USD) | Change (YoY) | [Distribution](index=1&type=section&id=Distribution) Sunoco LP declared a **$0.9088** distribution per unit for Q2 2025, an annualized **$3.6352**, marking the third consecutive quarterly increase and aligning with the company's annual distribution growth target of at least 5% Q2 2025 Distribution Information | Metric | Amount | Change (YoY) | - This marks SUN's third consecutive quarter of distribution growth, aligning with the company's target of at least **5% annual distribution growth** for 2025, with distributions increasing by approximately **10% since 2022**[4](index=4&type=chunk) [Liquidity and Leverage](index=1&type=section&id=Liquidity%20and%20Leverage) As of June 30, 2025, Sunoco LP reported approximately **$7.8 billion** in long-term debt, **$1.2 billion** in available liquidity, and a net debt to Adjusted EBITDA leverage ratio of **4.2x** Q2 2025 End Liquidity and Leverage | Metric | Amount (million USD) | - The company reaffirmed its full-year 2025 Adjusted EBITDA guidance target of **$1.90 billion to $1.95 billion**, excluding transaction-related expenses[6](index=6&type=chunk) [Capital Spending](index=2&type=section&id=Capital%20Spending) In Q2 2025, Sunoco LP's total capital spending was **$160 million**, comprising **$120 million** for growth capital and **$40 million** for maintenance capital, including its share in joint ventures Q2 2025 Capital Spending | Category | Amount (million USD) | [Strategic Developments](index=2&type=section&id=Strategic%20Developments) The Parkland acquisition has received over **93%** shareholder approval and is awaiting regulatory and exchange listing approvals, with completion anticipated in Q4 2025 - Parkland shareholders have voted to approve the merger with SUN, with over **93%** of votes cast in favor of the transaction[8](index=8&type=chunk) - The merger transaction remains on track and is expected to close in the **fourth quarter of 2025**[8](index=8&type=chunk) [Company Information](index=2&type=section&id=Company%20Information) [About Sunoco LP](index=2&type=section&id=About%20Sunoco%20LP) Sunoco LP is a leading energy infrastructure and fuel distribution limited partnership operating across over **40 U.S. states**, Puerto Rico, Europe, and Mexico, with approximately **14,000 miles** of pipelines and **100+ terminals** - Sunoco LP is a leading energy infrastructure and fuel distribution limited partnership with operations across over **40 U.S. states**, Puerto Rico, Europe, and Mexico[10](index=10&type=chunk) - Midstream operations include approximately **14,000 miles** of pipeline network and over **100 terminals**[10](index=10&type=chunk) - Fuel distribution serves approximately **7,400 Sunoco** and partner-branded sites, along with other independent dealers and commercial customers[10](index=10&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements regarding future expectations, subject to known and unknown risks, uncertainties, and other factors beyond management's control, with no obligation for the company to update or revise them - The press release contains forward-looking statements subject to various known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management's control[11](index=11&type=chunk) - The company undertakes no obligation to update or revise any forward-looking statements to reflect new information or events[11](index=11&type=chunk) [Contacts](index=2&type=section&id=Contacts) Investor and media contact information is provided for further company inquiries or information - Investor Contact: Scott Grischow, Treasurer, Senior Vice President – Finance, (214) 840-5660, scott.grischow@sunoco.com[12](index=12&type=chunk) - Media Contact: Chris Cho, Senior Manager – Communications, (469) 646-1647, chris.cho@sunoco.com[12](index=12&type=chunk) [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, Sunoco LP's total assets were **$14.428 billion**, slightly up from **$14.375 billion** at year-end 2024, with total liabilities at **$10.331 billion** and total equity at **$4.097 billion** Consolidated Balance Sheet Key Data | Metric (million USD) | June 30, 2025 | December 31, 2024 | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) In Q2 2025, Sunoco LP's revenue was **$5.39 billion**, down from **$6.174 billion** in the prior year, with net income at **$86 million**, significantly lower than **$501 million** previously, mainly due to West Texas sales proceeds and increased interest expense Condensed Consolidated Statements of Operations Key Data (Three Months Ended) | Metric (million USD) | Q2 2025 | Q2 2024 | Change (YoY) | Condensed Consolidated Statements of Operations Key Data (Six Months Ended) | Metric (million USD) | H1 2025 | H1 2024 | Change (YoY) | [Supplemental Financial Data and Non-GAAP Reconciliations](index=5&type=section&id=Supplemental%20Financial%20Data%20and%20Non-GAAP%20Reconciliations) [Reconciliation of Adjusted EBITDA and Distributable Cash Flow](index=5&type=section&id=Reconciliation%20of%20Adjusted%20EBITDA%20and%20Distributable%20Cash%20Flow) This section provides a detailed reconciliation from net income to Adjusted EBITDA and Distributable Cash Flow (Adjusted), highlighting adjustments for depreciation, amortization, interest expense, non-cash compensation, and transaction-related expenses Reconciliation of Net Income to Adjusted EBITDA and Distributable Cash Flow | Metric (million USD) | Q2 2025 | Q2 2024 | [Explanation and Limitations of Non-GAAP Measures](index=5&type=section&id=Explanation%20and%20Limitations%20of%20Non-GAAP%20Measures) This section defines Adjusted EBITDA and Distributable Cash Flow (Adjusted), explains their utility in assessing operational performance and distribution capacity, and details their limitations, emphasizing they are not substitutes for GAAP net income or operating cash flow - Adjusted EBITDA and Distributable Cash Flow (Adjusted) are utilized to assess operational performance, distribution capacity, and debt service capability, also serving as internal planning tools[19](index=19&type=chunk)[20](index=20&type=chunk) - Limitations of non-GAAP measures include not reflecting total cash expenditures, changes in working capital, cash requirements for interest or principal payments, or future replacement of depreciated assets[23](index=23&type=chunk) - Due to varying calculation methodologies, the company's Adjusted EBITDA and Distributable Cash Flow (Adjusted) may not be comparable to similarly titled measures used by other companies[23](index=23&type=chunk) [Segment Performance Analysis](index=7&type=section&id=Segment%20Performance%20Analysis) [Summary Analysis of Quarterly Results by Segment](index=7&type=section&id=Summary%20Analysis%20of%20Quarterly%20Results%20by%20Segment) In Q2 2025, Sunoco LP's Adjusted EBITDA was **$454 million**, with **$206 million** from Fuel Distribution, **$177 million** from Pipeline Systems, and **$71 million** from Terminals; Adjusted EBITDA was **$464 million** excluding transaction-related expenses Segment Adjusted EBITDA | Segment | Q2 2025 (million USD) | Q2 2024 (million USD) | Reconciliation of Segment Profit to Gross Profit | Metric (million USD) | Q2 2025 | Q2 2024 | [Fuel Distribution Segment](index=8&type=section&id=Fuel%20Distribution%20Segment) The Fuel Distribution segment reported **$206 million** in Adjusted EBITDA for Q2 2025, a decrease from **$245 million** year-over-year, driven by slightly lower fuel volumes and a reduced fuel margin per gallon from **11.8 cents to 10.5 cents**, primarily due to the West Texas asset sale Fuel Distribution Segment Key Operating and Financial Data | Metric | Q2 2025 | Q2 2024 | - The decrease in fuel volumes was primarily due to the **April 2024 West Texas asset sale**, partially offset by volume growth from investments and margin optimization[28](index=28&type=chunk) - Segment Adjusted EBITDA decreased mainly due to a **$29 million** decline in fuel margin per gallon and **$6 million** in increased expenses related to the Parkland acquisition[29](index=29&type=chunk)[30](index=30&type=chunk) [Pipeline Systems Segment](index=8&type=section&id=Pipeline%20Systems%20Segment) The Pipeline Systems segment achieved **$177 million** in Adjusted EBITDA for Q2 2025, a significant increase from **$53 million** year-over-year, driven by improved segment gross profit and reduced operating costs, despite slightly lower throughput, largely due to the NuStar acquisition and ET-S Permian formation Pipeline Systems Segment Key Operating and Financial Data | Metric | Q2 2025 | Q2 2024 | - Throughput decreased primarily due to the **July 2024 contribution of assets to ET-S Permian**[29](index=29&type=chunk) - Segment Adjusted EBITDA growth was primarily driven by an **$11 million** increase in segment gross profit (timing impact of NuStar acquisition), a **$48 million** increase in Adjusted EBITDA from the ET-S Permian formation, and a **$65 million** reduction in operating costs (mainly due to reduced one-time administrative expenses related to the 2024 NuStar acquisition)[31](index=31&type=chunk) [Terminals Segment](index=9&type=section&id=Terminals%20Segment) The Terminals segment achieved **$71 million** in Adjusted EBITDA for Q2 2025, a significant increase from **$22 million** year-over-year, driven by increased throughput from recent acquisitions and improved segment gross profit and operating costs, particularly due to the timing impact of the NuStar acquisition Terminals Segment Key Operating and Financial Data | Metric | Q2 2025 | Q2 2024 | - Throughput increased primarily due to recently acquired assets[32](index=32&type=chunk) - Segment Adjusted EBITDA growth was primarily driven by a **$33 million** increase in segment gross profit (timing impact of NuStar acquisition) and a **$14 million** reduction in operating costs (mainly due to reduced one-time administrative expenses related to the 2024 NuStar acquisition)[33](index=33&type=chunk)