This story was originally published on C-Store Dive. To receive daily news and insights, subscribe to our free daily C-Store Dive newsletter. Dive Brief: Sunoco has bought the convenience retail division of Jernigan Oil Company for an undisclosed amount, according to a Monday announcement from Matrix Capital Markets Group, which advised Jernigan on the deal. This deal includes 56 Duck Thru Food Stores in eastern North Carolina and southeast Virginia. The stores will become part of Sunoco Retail, an af ...

Gasoline Market - Sunoco's gasoline sales are flat overall for the economy, but the company is having a great year with approximately 16 billion gallons in sales, up 7% [2] - Diesel sales are up about 3% to 4%, indicating commerce growth within the United States [3] - Gasoline prices are down about 25% nationally (excluding California), around $3 per gallon, but driving is flat [4] - Electric vehicles (EVs) are eating into gasoline sales by about 1% per year, and car efficiency is reducing sales by about 0.5% per year, totaling a 1.5% reduction annually [5][6] Luxury Retail - Luxury retail centers are up double digits, over 12% this year, with Holland Park Village in Dallas up about 14% in luxury sales, indicating strong high-end consumer spending [7] - Mid-range tenants are up single digits, around 5% or 6% [9] - Creating an experience is crucial for attracting luxury shoppers to physical stores [8] Casual Dining - Commodity pressures have flattened this year, except for beef due to increased competition from India and China [10] - Delivery services have grown from 2% to 3% of sales to 15% to 20% [12] - Consumers, particularly those under 35, are willing to pay delivery fees [12] Consumer Sentiment and Economic Outlook - Consumers' credit cards are maxed out [13] - Labor costs are currently very flat [14] - Anticipating flat sales in 2026 for both Sunoco and shopping centers [15] - The current regulatory and tax environment under the Trump administration and Congress is positive for businesses [17]

Core Viewpoint - Energy Transfer is currently experiencing a dip in unit price, presenting a potential buying opportunity as the company is expected to recover and grow in the long term [1][2]. Financial Performance - Energy Transfer initially projected adjusted EBITDA between $16.1 billion and $16.5 billion for the year, indicating a growth rate of 3.9% to 6.5% compared to the previous year, which is below its historical double-digit growth rate since 2020 [4]. - The company's growth outlook has worsened due to weaker commodity prices, leading to expectations of adjusted EBITDA at or slightly below the low end of its guidance range [5]. Growth Catalysts - The company plans to invest $5 billion in growth capital projects this year, including significant projects like the Nederland Flexport NGL expansion and the Hugh Brinson Pipeline, which are expected to generate income starting in 2026 [6]. - Energy Transfer has a stake in Sunoco, which is set to acquire Parkland for $9.3 billion, providing a boost to Energy Transfer's earnings once the deal closes [8]. Future Projects - Energy Transfer has approved several new growth capital projects, including the Desert Southwest Expansion project, a $5.3 billion natural gas pipeline expected to enter service by the end of 2029 [9]. - The company is also working on the long-delayed Lake Charles LNG export terminal, which may receive approval this year, along with other natural gas pipeline expansions to meet rising demand [10]. Financial Position - Energy Transfer is in its strongest financial position in history, allowing for continued organic expansion and potential acquisitions as opportunities arise [11]. Investment Opportunity - The current dip in unit price has resulted in a lower valuation and a higher distribution yield of 7.6%, making it an attractive investment for those anticipating a growth reacceleration [12].

Core Insights - Parkland is actively investing in electric vehicle (EV) charging infrastructure despite its pending sale to Sunoco, indicating a commitment to enhancing its retail operations [3][8] - The recent $9.5 million grant from the Quebec government will facilitate the installation of 104 charging ports at 14 Marché Express stations, aligning with Quebec's 2030 Plan for a Green Economy [8] - Parkland's EV charging initiative began nearly three years ago and has expanded significantly, with 37 sites operational and higher-than-expected demand noted by the company's leadership [5][6] Investment and Market Position - The investment in EV charging is particularly strategic as over half of Canada's registered EVs are located in Quebec, positioning Parkland favorably in a growing market [3] - The company has observed a higher percentage of EV drivers visiting its stores compared to traditional gas-powered vehicle drivers, suggesting a shift in consumer behavior [6] Future Outlook - Regardless of whether Sunoco retains or sells Parkland's convenience store business post-acquisition, the installation of EV chargers is expected to enhance the future viability of selected retail sites [3]

Core Viewpoint - Energy Transfer (ET) is a midstream master limited partnership (MLP) offering a high yield of 7.8% supported by a growing distribution, but potential investors should consider its past distribution cut and management decisions before investing while the stock trades below $20 [1][4][9] Company Overview - Energy Transfer operates in the midstream sector, facilitating the transportation of oil and natural gas from production sites to consumption points, primarily earning fees for asset usage, which provides reliable cash flows even during downturns in the energy industry [1][3] - The company also serves as the general partner for two other publicly traded MLPs: Sunoco, which delivers gasoline, and USA Compression Partners, which offers compression services for pipelines, alongside overseeing liquefied natural gas projects [3] Distribution and Financial Performance - The quarterly distribution has been consistently increased since Q4 2021, indicating a positive trend in cash flow and distribution growth [1] - Despite the attractive yield, the company previously cut its distribution by 50% during the COVID-19 pandemic to reduce balance sheet leverage, raising concerns about income consistency for potential investors [5][6] Management and Trust Issues - The company faced scrutiny over its decision to back out of a significant acquisition of Williams in 2016, which raised questions about management's trustworthiness and decision-making, particularly as the former CEO, who was involved in the deal, is now the chairman of the board [7][8] Competitive Landscape - While Energy Transfer's high yield and reliable cash flows may appeal to some income investors, alternatives such as Enterprise Products Partners and Enbridge are suggested, which offer attractive yields of 7% and 5.8% respectively, along with a history of consistent annual distribution increases and no controversial acquisition history [9]

Financial Data and Key Metrics Changes - For Q1 2025, adjusted EBITDA was $4.1 billion, an increase from $3.9 billion in Q1 2024, driven by strong volumes in midstream operations and NGL exports [5] - Distributable cash flow (DCF) attributable to partners was $2.3 billion, with approximately $955 million spent on organic growth capital [5] - The company expects 2025 adjusted EBITDA to be between $16.1 billion and $16.5 billion, indicating a strong financial outlook despite some market volatility [18][19] Business Segment Data and Key Metrics Changes - NGL and refined products segment adjusted EBITDA was $978 million, slightly down from $989 million in Q1 2024 due to higher operating expenses [6] - Midstream segment adjusted EBITDA increased to $925 million from $696 million, attributed to higher volumes in the Permian Basin [6] - Crude oil segment adjusted EBITDA decreased to $742 million from $848 million, impacted by lower transportation revenues and optimization gains [8] - Interstate natural gas segment adjusted EBITDA rose to $512 million from $483 million, driven by record volumes [10] - Intrastate natural gas segment adjusted EBITDA fell to $344 million from $438 million, affected by reduced pipeline optimization [10] Market Data and Key Metrics Changes - The company reported strong NGL exports during the quarter, contributing positively to overall performance [5] - The crude oil segment faced challenges with lower transportation revenues primarily on the Bakken pipeline [9] - The interstate natural gas segment achieved record volumes, indicating strong demand in the market [10] Company Strategy and Development Direction - The company plans to invest approximately $5 billion in organic growth capital projects in 2025, focusing on midstream and NGL segments [11] - Major projects include the Flexport NGL export expansion and several processing plant expansions, expected to ramp up earnings growth significantly in 2026 and 2027 [11][13] - The company is pursuing opportunities in power generation and data centers, indicating a strategic shift towards supporting growing energy demands [16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the new administration's support for the oil and gas industry, expecting easier permitting processes and infrastructure development [86] - Despite some recent slowdowns in production, management remains bullish on long-term growth, particularly in the LNG market and natural gas transportation [40][66] - The company is well-positioned to manage market volatility due to its diversified asset base and strong financial position [19] Other Important Information - The company is making substantial progress on the Lake Charles LNG project, with significant agreements signed for LNG production and export [15][105] - Sunoco's acquisition of Parkland Corporation is expected to create the largest independent fuel distributor in the Americas, enhancing the company's market position [20] Q&A Session Summary Question: Update on Lake Charles progress and U.S. LNG competitiveness - Management highlighted ongoing momentum towards FID for Lake Charles, with recent agreements increasing LNG capacity to 10.4 million tons, targeting 15 million tons [24][26] Question: Potential for Energy Transfer to have a C Corp presence - Management stated that evaluating a C Corp presence remains an option but no immediate plans are in place [28][29] Question: Outlook for production given commodity price volatility - Management noted that while there is some slowdown, they remain optimistic about production levels and the overall market outlook [40][66] Question: Update on WTG acquisition and its impact - Management expressed satisfaction with the WTG acquisition, noting it is expected to contribute positively to revenue and growth in NGLs [95][96] Question: Guidance for 2025 adjusted EBITDA - Management reiterated the guidance range for 2025 adjusted EBITDA, emphasizing that commodity price movements and volume exposure are key drivers [88][90]