Core Insights - Sunoco LP reported fourth-quarter 2024 earnings of 75 cents per unit, missing the Zacks Consensus Estimate of $2.38, but showing improvement from a loss of $1.50 per unit in the same quarter last year [1] - Total quarterly revenues were $5.27 billion, below the Zacks Consensus Estimate of $5.74 billion, and decreased from $5.64 billion reported in the year-ago quarter [1] Financial Performance - The year-over-year increase in earnings was attributed to lower total expenses and higher net income, partially offset by lower fuel margins [2] - Adjusted distributable cash flow totaled $261 million, up from $148 million in the previous year [8] - Total cost of sales and operating expenses decreased to $5.03 billion from $5.68 billion a year ago [9] Distribution and Capital Expenditure - The board declared a distribution of $0.8865 per unit for Q4 2024, marking an increase from $0.8756 per unit in the previous quarter, with a target growth rate of at least 5% for 2025 [3] - Capital expenditure for the quarter was $132 million, consisting of $74 million in growth capital and $58 million in maintenance capital [10] Segment Performance - Fuel Distribution segment reported adjusted EBITDA of $192 million, down from $209 million in the comparable period of 2023, affected by lower fuel sales [4] - Pipeline Systems segment reported adjusted EBITDA of $188 million, significantly up from $2 million in the prior-year quarter, driven by the acquisition of NuStar [5] - Terminals segment reported adjusted EBITDA of $59 million, up from $25 million in the corresponding period of 2023, primarily due to acquisitions [5] Volume and Profitability - The partnership sold 2.2 billion gallons of fuel in the reported quarter, lower than the estimated 2.5 billion gallons [6] - Motor fuel gross profit per gallon was 10.6 cents, down from 11.8 cents in the previous year [6] - Total operating income improved to $237 million from a loss of $43 million in the prior-year quarter [6] Balance Sheet and Outlook - As of December 31, 2024, Sunoco had cash and cash equivalents of $94 million and net long-term debt of $7.48 billion [11] - For full-year 2025, Sunoco projects Adjusted EBITDA in the range of $1.90-$1.95 billion, with total operating expenses projected between $900 million and $925 million [12]

Financial Data and Key Metrics Changes - In Q4 2024, adjusted EBITDA was $446 million, excluding approximately $7 million of one-time transaction expenses, with distributable cash flows adjusted at $261 million [6][11] - Full-year 2024 adjusted EBITDA was $1.56 billion, a 62% increase compared to 2023 [7][12] - The trailing twelve-month coverage ratio at the end of the quarter was 1.9 times, with leverage at 4.1 times, flat to the last quarter [9][10] Business Line Data and Key Metrics Changes - Fuel distribution segment adjusted EBITDA was $192 million, down from $253 million in Q3 2024 and $209 million in Q4 2023, with 2.2 billion gallons distributed [16] - Pipeline systems segment adjusted EBITDA for Q4 was $193 million, up from $147 million in Q3, with throughput of 1.4 million barrels per day [20] - Terminal segment adjusted EBITDA for Q4 was $61 million, down from $70 million in Q3, with throughput around 600,000 barrels per day [22] Market Data and Key Metrics Changes - The company reported increased volumes across nearly all major pipeline systems due to consistent refinery operations and seasonal demand growth in the Mid-Con region [21] - The overall market dynamics and internal capabilities are expected to support continued growth in 2025 [19] Company Strategy and Development Direction - The integration of the NuStar acquisition has strengthened the company's portfolio, providing income diversification across three stable business segments [28] - The company aims for a distribution growth of at least 5% in 2025, with a focus on strong operational execution and expense discipline [11][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term demand for refined products, emphasizing that these products will continue to fuel economies for decades [60] - The company is well-positioned to capitalize on market opportunities, with a strong foundation and asset base following the NuStar acquisition [42] Other Important Information - The company declared a distribution of $0.8865 per unit, a 1.25% increase over the previous quarter, ahead of the typical timing for distribution increases [11] - The company has a strong liquidity position with approximately $1.3 billion remaining on its revolving credit facility [9] Q&A Session Summary Question: Insights on fuel distribution and outlook for 2025 - Management acknowledged that the lack of volatility in gasoline and diesel prices impacted Q4 results but emphasized strong fundamentals for 2024 overall [35][41] Question: Impact of tariffs on business - Management noted that higher tariffs could lead to higher prices, and the company has a strong track record in volatile commodity environments [44][46] Question: Growth CapEx spending cadence - Management indicated that growth CapEx is primarily for optimization rather than large projects, allowing flexibility in spending [48][50] Question: Outlook on refined product demand - Management reiterated a bullish view on the long-term attractiveness of the refined product sector, despite recent market focus on other energy sources [58][60] Question: Future M&A opportunities - Management expressed interest in growth opportunities in Europe and the Caribbean, emphasizing criteria for stable cash flows and synergy potential [78][80]

Financial Performance - Net income for Q4 2024 was $141 million, a significant recovery from a net loss of $106 million in Q4 2023 [2][5] - Adjusted EBITDA for Q4 2024 reached $439 million, up from $236 million in Q4 2023, including approximately $7 million in one-time transaction-related expenses [2][6] - Distributable Cash Flow, as adjusted, for Q4 2024 was $261 million compared to $148 million in Q4 2023 [3][6] - For the full year 2024, net income was $874 million, compared to $394 million in 2023 [5][6] - Adjusted EBITDA for the full year 2024 was $1.46 billion, up from $964 million in 2023, including $106 million in one-time transaction-related expenses [6][11] Segment Performance - Fuel Distribution segment Adjusted EBITDA for Q4 2024 was $192 million, down from $209 million in Q4 2023, with fuel sales of approximately 2.2 billion gallons [3][28] - Pipeline Systems segment Adjusted EBITDA for Q4 2024 was $188 million, with throughput averaging approximately 1.4 million barrels per day [4][34] - Terminals segment Adjusted EBITDA for Q4 2024 was $59 million, an increase from $25 million in Q4 2023, with throughput averaging approximately 590 thousand barrels per day [5][37] Distribution and Growth Outlook - The Board declared a distribution of $0.8865 per unit for Q4 2024, with an annualized rate of $3.5460 per unit, targeting a distribution growth rate of at least 5% for 2025 [7][11] - Full-year 2025 Adjusted EBITDA is expected to be in the range of $1.90 billion to $1.95 billion [11][12] Capital Expenditures and Liquidity - Total capital expenditures in Q4 2024 were $132 million, including $74 million for growth and $58 million for maintenance [9] - As of December 31, 2024, long-term debt was approximately $7.5 billion, with $1.3 billion of liquidity remaining on its revolving credit facility [8]

Core Viewpoint - Sunoco LP announced a quarterly distribution increase of 1.25% for Q4 2024, reflecting a strong financial outlook and commitment to growth [1][5]. Company Overview - Sunoco LP is a leading energy infrastructure and fuel distribution master limited partnership operating in over 40 U.S. states, Puerto Rico, Europe, and Mexico [2]. - The Partnership's midstream operations include approximately 14,000 miles of pipeline and over 100 terminals, supporting its fuel distribution operations [2]. - Sunoco LP serves around 7,400 branded locations and additional independent dealers and commercial customers [2]. Financial Performance - The declared quarterly distribution for Q4 2024 is $0.8865 per common unit, which annualizes to $3.5460 per common unit [1]. - This distribution represents the third consecutive increase in the annual distribution growth rate [5]. - The company targets a distribution growth rate of at least 5% for 2025, with future increases to be announced quarterly [5]. Tax Information - All distributions to foreign investors are subject to federal tax withholding at the highest applicable effective tax rate, as they are attributable to income effectively connected with a U.S. trade or business [4].

Company Performance - Sunoco LP (SUN) closed at $54.73, with a slight increase of +0.26% from the previous trading session, underperforming compared to the S&P 500's gain of 0.88% [1] - The stock has risen by 6.04% over the past month, contrasting with the Oils-Energy sector's loss of 0.38% and the S&P 500's gain of 1.17% [1] Earnings Expectations - Sunoco LP is expected to report earnings on February 11, 2025, with an anticipated EPS of $2.46, representing a significant 264% increase compared to the same quarter last year [2] - The consensus estimate projects revenue of $5.74 billion, reflecting a 1.75% increase from the equivalent quarter last year [2] Analyst Estimates - Recent changes to analyst estimates for Sunoco LP indicate a positive outlook, suggesting analyst optimism regarding the company's business and profitability [3] - The Zacks Rank system, which incorporates these estimate changes, currently ranks Sunoco LP as 1 (Strong Buy), indicating strong potential for stock performance [5] Valuation Metrics - Sunoco LP has a Forward P/E ratio of 5.65, which is significantly lower than its industry's Forward P/E of 23.82, indicating a valuation discount [6] - The Oil and Gas - Refining and Marketing - Master Limited Partnerships industry, to which Sunoco LP belongs, has a Zacks Industry Rank of 48, placing it in the top 20% of over 250 industries [6]

Investors might want to bet on Sunoco LP (SUN) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this master limited partnership, should get reflected in its stock price. After all, empirical research shows a strong correlation ...

Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potenti ...

DALLAS, Jan. 8, 2025 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("SUN" or the "Partnership") announced that it will release its fourth quarter and full year 2024 financial and operating results before the market opens on Tuesday, February 11, 2025. Management will hold a conference call that same day at 9:00 a.m. Central Time (10:00 a.m. Eastern Time) to discuss SUN's results. By Phone:  Dial 877-407-6184 (toll free) or 201-389-0877 at least 10 minutes before the call. A replay will be available through Febr ...

Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.Start slideshow: 10 Oversold Stocks You Should Know About »In trading on Monday, shares of Sunoco entered into oversold ...

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Sunoco LP (SUN) .Sunoco LP currently has an average brokerage recommendati ...