Acquisitions - The Partnership completed the acquisition of Parkland on October 31, 2025, with Parkland shareholders receiving 0.295 SunocoCorp units and C$19.80 for each Parkland share[108]. - The Partnership entered into an agreement to acquire TanQuid for approximately €500 million (approximately $587 million), expected to close in Q4 2025[112]. - In Q1 2025, the Partnership acquired fuel equipment and supply agreements for approximately $17 million, including $12 million in cash[113]. - In Q2 2025, the Partnership acquired 151 fuel distribution consignment sites for approximately $105 million, including $92 million in cash[114]. - In Q3 2025, the Partnership acquired approximately 70 fuel distribution consignment sites for total cash consideration of approximately $85 million[115]. Financial Performance - For the three months ended September 30, 2025, consolidated Adjusted EBITDA increased to $489 million, up $33 million from $456 million in the same period last year[125]. - For the nine months ended September 30, 2025, consolidated Adjusted EBITDA rose to $1.401 billion, an increase of $383 million compared to $1.018 billion in the prior year[125]. - Net income for the three months ended September 30, 2025, was $137 million, a significant increase from $2 million in the same period last year[125]. - Net income for the nine months ended September 30, 2025, decreased to $430 million from $733 million, primarily due to a $598 million gain on the West Texas Sale in April 2024[125]. - Revenues for the nine months ended September 30, 2025 were $16.071 billion, with a net income of $200 million[171]. Segment Performance - Segment Adjusted EBITDA for Fuel Distribution decreased by $21 million to $232 million for the three months ended September 30, 2025, and by $58 million to $658 million for the nine months[125]. - Segment Adjusted EBITDA for Pipeline Systems increased by $46 million to $182 million for the three months ended September 30, 2025, and by $342 million to $531 million for the nine months[125]. - Fuel Distribution segment profit for Q3 2025 was $329 million, up 101% from $164 million in Q3 2024[140]. - Pipeline Systems segment profit increased by 19% to $189 million in Q3 2025 from $159 million in Q3 2024[141]. - Terminals segment profit rose by 27% to $128 million in Q3 2025 compared to $101 million in Q3 2024[141]. Cash Flow and Liquidity - Cash provided by operating activities for the nine months ended September 30, 2025 was $800 million, compared to $426 million for the same period in 2024[150]. - As of September 30, 2025, the company had $3.24 billion in cash and cash equivalents and $1.45 billion in borrowing capacity on its Credit Facility[147]. - The company expects to utilize cash from operations and Credit Facility capacity to fund growth capital expenditures for 2025[147]. - The unused availability on the Credit Facility as of September 30, 2025 was $1.45 billion, with a weighted average interest rate of 6.42%[166]. Debt and Financing - As of September 30, 2025, total consolidated indebtedness was $9.478 billion, an increase from $7.486 billion as of December 31, 2024[161]. - The Partnership issued $1.00 billion aggregate principal amount of 6.250% senior notes due 2033 in March 2025 to repay $600 million of senior notes due 2025[162]. - In September 2025, the Partnership issued $1.00 billion of 5.625% senior notes due 2031 and $900 million of 5.875% senior notes due 2034 to fund the Parkland Acquisition[163]. - Net cash provided by financing activities during 2025 was $2.94 billion, compared to net cash used in financing activities of $948 million in 2024[158]. Capital Expenditures - Capital expenditures for 2025 were $418 million, which included $310 million for growth capital and $108 million for maintenance capital[159]. - The company expects to spend approximately $150 million in maintenance capital expenditures and at least $400 million in growth capital for the full year 2025[160]. Accounting and Compliance - The Partnership's critical accounting estimates remain unchanged since the filing of the Annual Report on Form 10-K for the year ended December 31, 2024[174]. - The company was in compliance with all financial covenants as of September 30, 2025[166].

Core Viewpoint - Sunoco LP (SUN) has shown moderate performance over the past year, with unit gains of 2% and a distribution yield of approximately 7% [1] Group 1: Performance Overview - Units have remained range-bound between $50 and $55 since "Liberation Day" [1] - The integration of Parkland is expected to influence unit performance positively [1] Group 2: Analyst Insights - The analyst has over fifteen years of experience in making contrarian bets based on macro views and stock-specific turnaround stories [1]

Core Viewpoint - Sunoco LP is a significant player in the fuel distribution and retail sector, with a positive outlook following an upgrade from Raymond James to "Outperform" and an increase in price target from $67 to $70 [1][2]. Company Performance - At the time of the rating update, Sunoco's stock was priced at $51.68, but it has since experienced a slight decrease to $51.70, reflecting a drop of approximately 1.31% [2][3]. - The stock has shown volatility over the past year, with a high of $59.88 and a low of $47.98 [3]. Market Position - Sunoco's market capitalization stands at approximately $7.05 billion, indicating its substantial presence in the fuel distribution industry [4]. - The trading volume for Sunoco on the NYSE today is 304,498 shares, demonstrating active investor interest [4]. Analyst Interest - The participation of analysts from major financial institutions such as Citigroup, Raymond James, Barclays, JPMorgan Chase, and Wells Fargo in the earnings call underscores the market's keen interest in Sunoco's performance and future prospects [4].

Core Viewpoint - Sunoco LP has successfully completed its private exchange offers for outstanding Canadian and U.S. dollar denominated notes issued by Parkland Corporation, with a significant majority of the notes tendered for exchange [1][2][4]. Summary by Category Exchange Offers and Results - The exchange offers for PKI CAD Notes and PKI USD Notes expired on November 4, 2025, with C$1,474,777,000 (approximately 92.2%) of PKI CAD Notes and US$2,579,839,000 (approximately 99.2%) of PKI USD Notes validly tendered [2][3]. - Specific series of PKI CAD Notes tendered include: - C$549,406,000 of 3.875% Senior Notes due 2026 (91.6%) - C$380,785,000 of 6.000% Senior Notes due 2028 (95.2%) - C$544,586,000 of 4.375% Senior Notes due 2029 (90.8%) [2]. - Specific series of PKI USD Notes tendered include: - US$498,854,000 of 5.875% Senior Notes due 2027 (99.8%) - US$789,974,000 of 4.500% Senior Notes due 2029 (98.8%) - US$798,252,000 of 4.625% Senior Notes due 2030 (99.8%) - US$492,759,000 of 6.625% Senior Notes due 2032 (98.6%) [2][3]. Amendments and Acquisitions - Sunoco completed its acquisition of Parkland Corporation, making it a wholly owned subsidiary, and plans to implement amendments to the PKI Indentures to eliminate restrictive covenants and certain events leading to defaults [4][6]. - The proposed amendments will take effect upon the settlement date of the exchange offers, expected on November 7, 2025 [4][6]. New Notes - The New Notes will have similar terms to the PKI Notes, including interest rates and payment dates, ensuring that tendering holders receive equivalent interest payments [7].

Financial Data and Key Metrics Changes - Sunoco reported a record third quarter with adjusted EBITDA of $496 million, an increase from $470 million a year ago, excluding one-time transaction-related expenses [4] - Distributable cash flow, as adjusted, was $326 million for the third quarter [4] - The company declared a distribution of $0.9202 per common unit, representing a 1.25% increase compared to the previous quarter, resulting in a trailing 12-month coverage ratio of 1.8 times [5][6] Business Line Data and Key Metrics Changes - In the fuel distribution segment, adjusted EBITDA was $238 million, compared to $214 million in the second quarter and $253 million in the third quarter of last year [8] - Volumes in the fuel distribution segment reached 2.3 billion gallons, up 5% from the previous quarter and 7% year-over-year [8] - The pipeline system segment reported adjusted EBITDA of $182 million, an increase from $177 million in the second quarter and $147 million in the third quarter of last year [10] - The terminal segment delivered adjusted EBITDA of $76 million, compared to $73 million in the second quarter and $70 million in the third quarter of last year [11] Market Data and Key Metrics Changes - The company has become the largest independent fuel distributor in the Americas following the acquisition of Parkland Corporation, which is expected to provide significant financial benefits [2][3] - The combined entity is projected to deliver over 15 billion gallons of refined products, enhancing its position in the Atlantic Basin [14] Company Strategy and Development Direction - The immediate priorities for the company include integrating Parkland and restoring the balance sheet to a four times leverage ratio within 12 months [15] - The company expects over $250 million in synergies from the Parkland acquisition, with a focus on expense management and optimizing gross profit [15][20] - The company aims for free cash flow to exceed $1 billion annually in the near future, enhancing its capital allocation strategy [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving another record year, with all business segments performing well [13] - The company anticipates that the fundamentals for the fuel distribution business remain strong, despite broader market challenges [52] - Management highlighted the importance of scale and key assets in maintaining a competitive advantage in the market [14] Other Important Information - The company successfully completed the acquisition of Parkland Corporation for approximately $9 billion, enhancing its financial position and scale [2][3] - Sunoco Corp will begin trading on the New York Stock Exchange under the ticker SUNC, broadening investment options [4] Q&A Session Summary Question: Synergies from the Parkland acquisition - Management confirmed a floor of over $250 million in synergies, with both expense and commercial opportunities identified [18][20] Question: Dividend equivalency for Sunoco Corp - Management stated that minimal corporate income taxes are expected for at least five years, supporting the distribution strategy [23] Question: Growth potential for distribution - Management indicated that the acquisition of Parkland positions the company for meaningful distribution growth beyond the current target of at least 5% [26][27] Question: Impact of Hurricane Melissa - The business impact from Hurricane Melissa was largely limited to Jamaica, with no material impact expected on fourth quarter results [29][30] Question: Opportunities in West Coast terminaling assets - Management expressed optimism about leveraging the refinery and terminal assets in response to potential market shifts due to refinery closures [33][34] Question: 2026 guidance and expectations - Management plans to provide guidance early next year, emphasizing strong performance from both the Parkland and legacy businesses [41][42]

Financial Performance - Net income for Q3 2025 was $137 million, a significant increase from $2 million in Q3 2024[3] - Adjusted EBITDA for Q3 2025 was $489 million, compared to $456 million in Q3 2024, with one-time transaction-related expenses of $7 million and $14 million respectively[3] - Distributable Cash Flow, as adjusted, for Q3 2025 was $326 million, down from $349 million in Q3 2024[3] - Net income for the three months ended September 30, 2025, was $137 million, a significant increase from $2 million in the same period of 2024[18] - Adjusted EBITDA for the same period was $489 million, up from $456 million year-over-year, while Adjusted EBITDA excluding transaction-related expenses was $496 million compared to $470 million[18] - Distributable Cash Flow for Q3 2025 was $319 million, slightly down from $335 million in Q3 2024, while Distributable Cash Flow, as adjusted, was $326 million compared to $349 million[18] Segment Performance - Fuel Distribution segment's adjusted EBITDA was $232 million in Q3 2025, down from $253 million in Q3 2024, with fuel margin at 10.7 cents per gallon[3] - Pipeline Systems segment's adjusted EBITDA increased to $182 million in Q3 2025 from $136 million in Q3 2024, with throughput averaging 1.3 million barrels per day[3] - Fuel Distribution segment profit increased to $329 million in Q3 2025 from $164 million in Q3 2024, driven by higher motor fuel gallons sold[27] - Pipeline Systems segment profit rose to $189 million in Q3 2025 from $159 million in Q3 2024, with throughput increasing to 1,296 thousand barrels per day from 1,165 thousand barrels per day[29] - Terminals segment profit increased to $128 million in Q3 2025 from $101 million in Q3 2024, despite a decrease in throughput to 656 thousand barrels per day from 694 thousand barrels per day[32] Capital Expenditures and Debt - Total capital expenditures in Q3 2025 were $157 million, including $115 million for growth capital[8] - Long-term debt as of September 30, 2025, was approximately $9.5 billion, with a leverage ratio of 3.9 times[7] Distributions - Quarterly distribution declared at $0.9202 per unit, representing a 1.25% increase compared to the previous quarter[4] - Since 2022, distributions have increased by approximately 11%, with a target annual growth rate of at least 5% for 2025[5] - Total distributions to partners increased to $168 million in Q3 2025 from $155 million in Q3 2024[18] Acquisitions - The acquisition of Parkland Corporation has been completed, and the acquisition of TanQuid is expected to be finalized in Q4 2025[7] Transaction-related Expenses - Transaction-related expenses decreased to $7 million in Q3 2025 from $14 million in Q3 2024[24] Motor Fuel Sales - Motor fuel gallons sold increased to 2,295 million in Q3 2025 from 2,138 million in Q3 2024, although motor fuel profit per gallon decreased to 10.7 cents from 12.8 cents[28]

Core Insights - Sunoco LP (NYSE:SUN) is recognized as one of the best high-yield energy stocks to invest in currently [1] - The company has received an upgrade from Wells Fargo, reflecting positive market sentiment and growth potential [2][3] Financial Performance and Valuation - Wells Fargo analyst Ned Baramov upgraded Sunoco's stock rating from Equal Weight to Overweight and raised the price target from $61 to $65, citing compelling pro-forma valuation and expected improvements in free cash flow post-merger [3] - Sunoco announced a 1.3% increase in its dividend to $0.9202 per share, resulting in an annual dividend yield of 7.05% [5] Strategic Developments - The Canadian government approved Sunoco's proposed acquisition of Parkland, valued at approximately $9.1 billion, which is expected to enhance the company's market presence in Canada and strengthen its position in North America's fuel distribution sector [4] - The transaction is anticipated to close on October 31, pending customary closing conditions [4]

Core Viewpoint - Sunoco LP has successfully completed the acquisition of Parkland Corporation on October 31, 2025, marking a significant consolidation in the energy infrastructure and fuel distribution sector [1][7]. Group 1: Acquisition Details - Parkland shareholders will receive either C$44.00 in cash, approximately 0.536 SunocoCorp Units, or a combination of C$19.80 in cash and 0.295 SunocoCorp Units for each Parkland share held [5][6]. - The total consideration for the acquisition amounts to approximately C$3.46 billion in cash and 51.52 million SunocoCorp Units [6]. Group 2: Market Impact - Parkland shares are set to be delisted from the Toronto Stock Exchange at the close of markets on November 4, 2025, while SunocoCorp Units will begin trading on the New York Stock Exchange under the ticker symbol "SUNC" on November 6, 2025 [2]. Group 3: Company Overview - Sunoco LP operates as a leading energy infrastructure and fuel distribution master limited partnership, with operations spanning 32 countries and territories, including an extensive pipeline network of approximately 14,000 miles and over 160 terminals [3]. - The partnership distributes over 15 billion gallons of fuel annually to around 11,000 retail locations and commercial customers [3].

Core Points - Sunoco LP has completed the acquisition of Parkland Corporation on October 31, 2025 [1] - Parkland shares will be delisted from the Toronto Stock Exchange on November 4, 2025, and SunocoCorp Common Units will begin trading on the NYSE on November 6, 2025 [2] Company Overview - Sunoco LP operates as a leading energy infrastructure and fuel distribution master limited partnership across 32 countries and territories, with approximately 14,000 miles of pipeline and over 160 terminals [4] - The company distributes over 15 billion gallons of fuel annually to around 11,000 retail locations and commercial customers [4] - SunocoCorp is a publicly traded limited liability company that holds a direct limited partner interest in Sunoco LP [5]

Core Viewpoint - Stardust Solar Energy Inc. is proceeding with a non-brokered private placement to raise up to $1,000,000 through the sale of 10,000,000 units at $0.10 per unit [1][4] Group 1: Offering Details - Each unit consists of one common share and one transferable common share purchase warrant, allowing the purchase of an additional share at $0.15 for 18 months [2] - The company will pay finders' fees of up to 7.0% of gross proceeds and issue non-transferable finders' warrants to eligible finders [3] - The net proceeds will be used for expanding operations, general and administrative expenses, marketing, and working capital [4] Group 2: Debt Settlement - The company has entered into a debt settlement agreement to settle $75,000 in debts by issuing 750,000 shares at a deemed price of $0.10 per share [5] - All shares issued in the debt settlement will also be subject to a statutory hold period of four months plus a day [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 [8]