Sunoco LP(US:SUN)2025-05-08 20:25Financial Performance - Adjusted EBITDA for Q1 2025 was $458 million, a significant increase of 89.3% compared to $242 million in Q1 2024[100] - For the three months ended March 31, 2025, net income decreased to $207 million from $230 million in the same period last year, a decline of 10%[102] - Adjusted EBITDA increased to $458 million for the three months ended March 31, 2025, compared to $242 million in the same period last year, representing a growth of 89%[102] - Total segment profit increased by $238 million, excluding inventory valuation adjustments, primarily due to acquisitions of NuStar and Zenith European terminals[103] - The Fuel Distribution segment reported a profit of $361 million, down from $417 million, a decrease of 13%[115] - Pipeline Systems segment profit surged to $174 million from $1 million, reflecting a significant increase due to recent acquisitions[117] - Terminals segment profit increased to $118 million from $66 million, a growth of 79% attributed to acquisitions[120] - Revenues for the Guarantor Issuer Group for Q1 2025 were $5.006 billion, with a net income of $146 million[145] - Revenues and net income for non-guarantor subsidiaries totaled $173 million and $61 million, respectively, for Q1 2025[145] Acquisitions and Investments - Sunoco plans to acquire Parkland Corporation for approximately $9.1 billion, including assumed debt, with a 25% premium for Parkland shareholders[87][89] - The acquisition of TanQuid GmbH & Co. KG is valued at approximately €500 million (about $540 million), expected to close in the second half of 2025[92] - In Q1 2025, Sunoco completed acquisitions totaling approximately $17 million, including $12 million in cash and newly issued common units[93] Segment Performance - Fuel Distribution segment Adjusted EBITDA increased to $220 million, up 0.9% from $218 million in the previous year[100] - Pipeline Systems segment reported Adjusted EBITDA of $172 million, unchanged from the previous year[100] - Terminals segment Adjusted EBITDA surged to $66 million, a 175% increase from $24 million in Q1 2024[100] - Segment Adjusted EBITDA for the Pipeline Systems segment increased to $172 million in Q1 2025, attributed to the acquisition of NuStar and the formation of ET-S Permian[119] Cash Flow and Liquidity - The company expects ongoing sources of liquidity to include cash generated from operations and borrowings under its Credit Facility[122] - As of March 31, 2025, the company had $172 million in cash and cash equivalents and a borrowing capacity of $1.44 billion on its Credit Facility[124] - Net cash provided by operating activities for Q1 2025 was $156 million, down from $286 million in Q1 2024, while net income decreased to $207 million from $230 million[127] - Net cash provided by financing activities in Q1 2025 was $23 million, a decrease from $123 million in Q1 2024, with a declared quarterly distribution of $0.8976 per common unit[135] Debt and Capital Expenditures - Capital expenditures for Q1 2025 totaled $101 million, significantly higher than $41 million in Q1 2024, with $12 million allocated for acquisitions[132] - 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[138] - As of March 31, 2025, total consolidated indebtedness was $7.673 billion, with long-term debt net of current maturities at $7.671 billion[139] - The company issued $1.00 billion of 6.250% senior notes due 2033 in March 2025 to refinance existing debt[140] Other Financial Metrics - Interest expense rose to $121 million for the three months ended March 31, 2025, up from $63 million in the same period last year, an increase of 92%[102] - Equity in earnings of unconsolidated affiliates rose to $32 million for the three months ended March 31, 2025, compared to $2 million in the same period last year, a substantial increase of 1500%[111] - Adjusted EBITDA related to unconsolidated affiliates increased by $47 million, primarily due to the formation of ET-S Permian[108] - Favorable inventory valuation adjustments contributed $61 million to net income in Q1 2025, compared to $130 million in Q1 2024[107] - Current assets for the Guarantor Issuer Group increased to $2.354 billion as of March 31, 2025, from $2.225 billion as of December 31, 2024[144] - Non-current liabilities, including long-term debt, were $8.445 billion as of March 31, 2025, compared to $8.244 billion as of December 31, 2024[144]