Sunoco LP (NYSE:SUN) Q1 2024 Earnings Conference Call May 8, 2024 10:00 AM ET Company Participants Scott Grischow – Senior Vice President-Finance and Treasurer Karl Fails – Chief Operations Officer Joe Kim – President and Chief Executive Officer Austin Harkness – Chief Commercial Officer Conference Call Participants Theresa Chen – Barclays Spiro Dounis – Citi Elvira Scotto – RBC Capital Markets Robert Mosca – Mizuho Securities Operator Greetings, and welcome to the Sunoco LP’s First Quarter 2024 Earnings Ca ...

[Sunoco LP First Quarter 2024 Financial and Operating Results](index=1&type=section&id=Sunoco%20LP%20First%20Quarter%202024%20Financial%20and%20Operating%20Results) [Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) Sunoco LP reported a strong first quarter for 2024, with significant year-over-year growth in net income, Adjusted EBITDA, and Distributable Cash Flow. The Partnership saw a 9% increase in fuel gallons sold, although the fuel margin per gallon slightly decreased compared to the same period in 2023 Q1 2024 Key Financial Metrics (vs. Q1 2023) (in millions) | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Net Income | $230 million | $141 million | +63.1% | | Adjusted EBITDA | $242 million | $221 million | +9.5% | | Distributable Cash Flow, as adjusted | $176 million | $160 million | +10.0% | Q1 2024 Key Operational Metrics (vs. Q1 2023) | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Fuel Gallons Sold | 2.1 billion | ~1.93 billion | +9.0% | | Fuel Margin per Gallon | 11.7 cents | 12.9 cents | -1.2 cents | [Distribution](index=1&type=section&id=Distribution) The Partnership announced a 4% increase in its quarterly distribution, reflecting continued confidence in the business. The new distribution is $0.8756 per unit, payable in May 2024 - The Board of Directors declared a quarterly distribution of **$0.8756 per unit**, a **4% increase** from the previous quarter[3](index=3&type=chunk) - The distribution will be paid on May 20, 2024, to unitholders of record as of May 13, 2024[3](index=3&type=chunk) [Liquidity, Leverage and Credit](index=1&type=section&id=Liquidity%2C%20Leverage%20and%20Credit) As of March 31, 2024, Sunoco maintained a solid liquidity position with approximately $870 million available under its revolving credit facility. The leverage ratio stood at 3.7x, and the Partnership received credit rating upgrades from both S&P and Moody's - At the end of Q1 2024, SUN had long-term debt of **$3.8 billion** and liquidity of approximately **$870 million**[4](index=4&type=chunk) - The leverage ratio (net debt to Adjusted EBITDA) was **3.7 times** at quarter-end[4](index=4&type=chunk) - Credit ratings were upgraded by S&P Global Ratings to **BB+** and by Moody's Ratings to **Ba1** in May 2024[4](index=4&type=chunk) [Capital Spending](index=1&type=section&id=Capital%20Spending) Total capital expenditures for the first quarter of 2024 amounted to $41 million, with the majority allocated to growth initiatives Q1 2024 Capital Expenditures (in millions) | Category | Amount | | :--- | :--- | | Growth Capital | $27 million | | Maintenance Capital | $14 million | | **Total** | **$41 million** | [Recent Developments](index=1&type=section&id=Recent%20Developments) The Partnership was highly active with strategic transactions, including the completion of the NuStar Energy L.P. and Zenith Energy terminal acquisitions, and the divestiture of 204 convenience stores to 7-Eleven. To support these activities, SUN issued $1.5 billion in unsecured notes and amended its revolving credit facility - **Acquisitions:** Completed the acquisition of NuStar Energy L.P. (May 3) and liquid fuels terminals from Zenith Energy in Europe (March 13)[8](index=8&type=chunk) - **Divestiture:** Completed the sale of 204 convenience stores to 7-Eleven, Inc. for approximately **$1.0 billion** on April 16, 2024[8](index=8&type=chunk) - **Financing:** Issued **$1.5 billion** in unsecured notes to fund NuStar-related repayments and amended its revolving credit facility to an unsecured **$1.5 billion** facility maturing in 2029[8](index=8&type=chunk) [Revised 2024 Business Outlook](index=2&type=section&id=Revised%202024%20Business%20Outlook) Following recent acquisitions and divestitures, Sunoco has revised its full-year 2024 guidance. The Partnership now expects Adjusted EBITDA to be in the range of $1.46 billion to $1.52 billion, incorporating contributions from the NuStar acquisition Full Year 2024 Adjusted EBITDA Guidance (in millions/billions) | Component | Guidance Range | | :--- | :--- | | Legacy SUN | $975 million to $1 billion | | Prorated NuStar | $480 million to $520 million | | **Total Combined** | **$1.46 billion to $1.52 billion** | - The revised guidance excludes the impact from synergies or transaction-related expenses[13](index=13&type=chunk) [Financial Statements and Supplemental Data](index=3&type=section&id=Financial%20Statements%20and%20Supplemental%20Data) [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets increased to $7.4 billion from $6.8 billion at year-end 2023, primarily driven by an increase in cash and assets held for sale. Total liabilities also rose to $6.3 billion, with long-term debt increasing to nearly $3.8 billion Selected Balance Sheet Data (in millions) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $215 | $29 | | Assets held for sale | $511 | $0 | | Total assets | $7,392 | $6,826 | | Long-term debt, net | $3,795 | $3,580 | | Total liabilities | $6,271 | $5,848 | | Total equity | $1,121 | $978 | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) For the first quarter of 2024, Sunoco's total revenues grew to $5.5 billion. Operating income saw a substantial increase to $297 million from $199 million in Q1 2023, leading to a 63% rise in net income to $230 million and a diluted EPS of $2.26 Q1 2024 Statement of Operations Highlights (in millions, except per unit data) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total Revenues | $5,499 | $5,362 | | Operating Income | $297 | $199 | | Net Income | $230 | $141 | | Diluted EPS | $2.26 | $1.41 | [Key Operating Metrics](index=5&type=section&id=Key%20Operating%20Metrics) In Q1 2024, total motor fuel gallons sold increased to 2.105 billion from 1.930 billion year-over-year. However, the motor fuel profit margin decreased to 11.7 cents per gallon from 12.9 cents. The Fuel Distribution and Marketing segment remained the primary driver of Adjusted EBITDA Q1 2024 Operating Metrics (vs. Q1 2023) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Motor fuel gallons sold (millions) | 2,105 | 1,930 | | Motor fuel profit (cents per gallon) | 11.7¢ | 12.9¢ | Adjusted EBITDA by Segment (in millions) | Segment | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Fuel Distribution and Marketing | $219 | $195 | | All Other | $23 | $26 | | **Total** | **$242** | **$221** | [Reconciliation of Non-GAAP Measures](index=6&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) The report provides a detailed reconciliation from GAAP Net Income to non-GAAP measures like Adjusted EBITDA and Distributable Cash Flow (DCF). For Q1 2024, Net Income of $230 million was adjusted for items such as depreciation, interest, and a significant inventory valuation adjustment of ($130) million to arrive at an Adjusted EBITDA of $242 million. DCF, as adjusted, was $176 million Q1 2024 Reconciliation Summary (in millions) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Net income** | **$230** | **$141** | | Depreciation, amortization and accretion | $43 | $48 | | Interest expense, net | $63 | $53 | | Inventory valuation adjustments | ($130) | ($29) | | Other adjustments | $25 | $10 | | **Adjusted EBITDA** | **$242** | **$221** | | Cash interest, tax, maintenance capex, etc. | ($71) | ($62) | | **Distributable Cash Flow, as adjusted** | **$176** | **$160** | - A supplemental disclosure shows the pro-forma DCF impact of the NuStar acquisition. While SUN's legacy DCF was **$176 million**, NuStar's calculated DCF for the same period was **$94 million**, providing insight into the combined entity's cash generation potential[24](index=24&type=chunk)[25](index=25&type=chunk)

FORM 10-K _____________________________________________________________ (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Table of Contents Index to Financial Statements UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________________________ SUNOCO LP or Registrant's telephone number, including area code: (214) 981-0700 (Exact name of registrant as specified in its charter) _______________________________________ ...

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q4 2023 was $236 million, a slight decrease from $238 million in Q4 2022 [5] - Full year 2023 adjusted EBITDA reached $964 million, representing a 5% increase compared to the previous year [6] - Total operating expenses for Q4 2023 were $145 million, up $7 million from the same period last year [5] - Full year operating expenses totaled $550 million, consistent with revised guidance [6] - Distributable cash flow for Q4 2023 was $148 million, down from $153 million in Q4 2022, with a coverage ratio of 1.6 times [37] Business Line Data and Key Metrics Changes - The partnership sold over 2.2 billion gallons in Q4 2023, an 11% increase from the same quarter last year [5] - Fuel margin for all gallons sold was $0.123 per gallon, compared to $0.128 per gallon a year ago [5] - Full year deal volume was over 8.3 billion gallons, an 8% increase from 2022, marking the largest reported in the partnership's history [6] Market Data and Key Metrics Changes - The company reported a leverage ratio of 3.7 times at the end of Q4 2023, below the long-term target of 4 times [13] - The company had approximately $400 million outstanding on its revolving credit facility, leaving about $1.1 billion of liquidity [13] Company Strategy and Development Direction - The company aims to improve stability, enhance growth, and maintain a strong balance sheet, positioning itself for future growth [20] - The acquisition of NuStar Energy, valued at $7.3 billion, is expected to diversify cash flows and enhance growth opportunities [7][21] - The divestiture of West Texas marketing assets for approximately $1 billion is anticipated to close in Q2 2024, allowing for reduced leverage [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the base business and financial foundation, expecting 2024 to be another record year [44] - The company anticipates that the same factors contributing to performance in 2023 will continue into 2024 [41] - Management highlighted the importance of executing the integration of NuStar and capturing synergies [42] Other Important Information - The acquisition of two European product terminals from Zenith Energy for €170 million is expected to close by the end of Q1 2024 and is projected to be accretive to unitholders in the first year [14] - The company plans to announce a distribution increase in April 2024 [44] Q&A Session Summary Question: Synergies with the NuStar deal - Management indicated that the target for synergies is at least $150 million, with potential for upside through capital deployment in high-return projects [23][24] Question: Future M&A appetite - Management stated that both tuck-in acquisitions and larger M&A opportunities will be pursued, depending on the potential for double-digit accretion [25][26] Question: Growth opportunities in NuStar's Midwest footprint - Management noted it is too early to outline specific growth opportunities but emphasized a flexible approach to leveraging the acquired assets [29][30] Question: Volume strength and future run-rate - Management reaffirmed guidance for EBITDA and indicated that volume growth is expected to continue, with updates to guidance planned closer to the NuStar close [54][55]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended: September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-35653 SUNOCO LP (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R.S. Employe ...

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $257 million for Q3 2023, down from $276 million in the same quarter last year [60] - Distributable cash flow as adjusted was $181 million, compared to $196 million in Q3 2022, resulting in a current quarter coverage ratio of 2x and a trailing 12-month coverage ratio of 1.9x [40] - The leverage ratio at the end of the quarter was 3.9x, with $647 million outstanding on the revolving credit facility and approximately $847 million of liquidity available [4] Business Line Data and Key Metrics Changes - Fuel volumes for the quarter were 2.1 billion gallons, up 7% from the third quarter of last year, marking the highest volume quarter in the company's history [60][63] - Fuel margin on all gallons sold was $0.13 per gallon, compared to $0.139 per gallon a year ago [60] - Total operating expenses for Q3 were $141 million, an increase of $10 million from the same period last year, attributed to the Peerless and Zenith acquisitions [60] Market Data and Key Metrics Changes - The company is outpacing the sector in market share growth, with volume growth driven by both acquisitions and organic investments [43][49] - The overall demand in the market is flat to slightly below last year, which supports higher breakeven margins [55] Company Strategy and Development Direction - The company focuses on three pillars: maintaining a secure distribution with annual growth, protecting the balance sheet, and pursuing disciplined investment in growth opportunities [5] - The company aims to grow both organically and through acquisitions, with a strong emphasis on optimizing gross profit and managing expenses [10][11] - The company is positioned to increase distributions next year while maintaining strong coverage and leverage ratios [11][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong results in various macro environments, regardless of fuel demand fluctuations or geopolitical uncertainties [47] - The company expects to grow and have another strong year in 2024, with industry fundamentals remaining supportive [67] - Management highlighted the importance of expense discipline and gross profit optimization as key strengths [44][66] Other Important Information - The company completed a $500 million offering of senior notes due 2028, which improved liquidity and reduced interest expenses [4] - The company experienced some business impact from the wildfires in Maui, but overall results were not materially affected [96] Q&A Session Questions and Answers Question: Can you talk about the distribution increase factors? - Management indicated that the capital allocation strategy, balance sheet protection, and growth opportunities are key factors in determining distribution increases [31][52] Question: Any updates on the Peerless acquisition? - Management noted that the acquisition has already contributed positively to EBITDA and that they are optimistic about future growth from this asset [15][32] Question: What is the company's long-term outlook on EBITDA and distribution growth? - Management plans to provide insights on 2024 and beyond in the upcoming December investor presentation, emphasizing confidence in industry fundamentals [80]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended: June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-35653 SUNOCO LP (Exact name of registrant as specified in its charter) Delaware 30-0740483 (State or other jurisdiction of incorporation or organization) ...

Sunoco LP (NYSE:SUN) Q2 2023 Earnings Conference Call August 2, 2023 10:00 AM ET Company Participants Scott Grischow - VP, IR, SVP, Finance & Treasurer Joseph Kim - President, CEO & Director, Sunoco GP LLC Karl Fails - EVP & COO, Sunoco GP LLC Conference Call Participants Robert Mosca - Mizuho Securities Selman Akyol - Stifel, Nicolaus & Company Ned Baramov - Wells Fargo Securities John Royall - JPMorgan Chase & Co. Operator Greetings, and welcome to the Sunoco LP's Q2 2023 Earnings Call. [Operator Instruct ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended: March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-35653 SUNOCO LP (Exact name of registrant as specified in its charter) Delaware 30-0740483 (State or other jurisdiction of incorporation or organization) ...

Sunoco LP (NYSE:SUN) Q1 2023 Earnings Conference Call May 2, 2023 10:00 AM ET Company Participants Scott Rachel - Senior Vice President, Finance and Treasurer Joe Kim - President and Chief Executive Officer Karl Fails - Chief Operations Officer Dylan Bramhall - Chief Financial Officer Conference Call Participants Gabe Moreen - Mizuho Ned Baramov - Wells Fargo John Royall - JPMorgan Operator Greetings and welcome to the Sunoco LP’s First Quarter 2023 Earnings Call. [Operator Instructions] As a reminder, this ...