#United States #Dallas #Sunoco LP #EBITDA Growth #2024 Financials

Sunoco LP Reports Fourth Quarter and Record Full Year 2024 Financial Results

Sunoco LP, a prominent player in the energy infrastructure sector, has unveiled its remarkable financial outcomes for both the fourth quarter and the entirety of 2024. For the quarter ending December 31, 2024, the partnership reported a substantial net income of $141 million, a significant recovery from a loss of $106 million encountered in the same period last year. The strong performance is reflected in an adjusted EBITDA, excluding one-time transaction expenses, which surged to $439 million compared to $236 million in the fourth quarter of 2023. This improvement showcases Sunoco's operational resilience and strategic growth initiatives.

Key Financial Highlights

• - Annual Net Income: 2024's net income climbed to $874 million, a notable increase from $394 million in 2023.
• - Adjusted EBITDA for the Year: The adjusted EBITDA for 2024 reached $1.46 billion, up from $964 million in the previous year. This figure includes $106 million in one-time transaction-related expenses, highlighting the company's robust operational performance.
• - Distributable Cash Flow: The distributable cash flow for the year stood at $1.08 billion, marking an increase from $664 million in 2023, indicating an improved cash generation capability.
• - Fuel Volume: In the fourth quarter alone, Sunoco sold approximately 2.2 billion gallons of fuel, with a fuel margin averaging 10.6 cents per gallon.

Distribution Increase

In a significant step forward, Sunoco's Board of Directors declared a fourth-quarter distribution of $0.8865 per unit, equating to an annualized rate of $3.5460 per unit. This distribution is scheduled to be paid on February 19, 2025, to common unitholders recorded by February 7, 2025. Looking ahead, the partnership aims for a distribution growth rate of at least 5% for the year 2025, ensuring a steady return for its investors.

Operational Insights

The financial results underscore distinct operational segments within the company:

1. Fuel Distribution Segment: Despite a slight decline in adjusted EBITDA to $192 million from $209 million in 2023, this segment remains a cornerstone of Sunoco's business.
2. Pipeline Systems: This area enjoyed a robust performance with an adjusted EBITDA of $188 million, a significant increase attributed to enhanced throughput volumes.
3. Terminals Segment: This segment reported a notable rise in adjusted EBITDA, doubling its contribution to $59 million compared to $25 million the prior year, aided by increased throughput volumes and recent acquisitions.

Future Projections

Sunoco LP has outlined an optimistic outlook for 2025, expecting its adjusted EBITDA to fall within the range of $1.90 billion to $1.95 billion. Moreover, the total operating expenses are anticipated to be between $900 million and $925 million, with capital expenditures amounting to at least $400 million aimed at further growth initiatives.

Summary

2024 has proven to be a landmark year for Sunoco LP, achieving record financial results and reinforcing its market position in the energy sector. With a clear path towards growth and a commitment to enhancing shareholder value through increased distributions, Sunoco is poised for continued success in the coming years. Investors can look forward to the upcoming earnings conference call for detailed insights on these results and future strategies.