#None #Parkland Corporation #Sunoco LP #TanQuid

Sunoco LP Reports Strong Results for Third Quarter of 2025

Sunoco LP (NYSE: SUN) delivered an impressive financial and operational report for the third quarter of 2025, highlighted by a net income soaring to $137 million, significantly up from just $2 million in the same period last year. This remarkable growth showcases the Partnership's robust performance amidst ongoing market dynamics and strategic acquisitions.

Financial Highlights

In its most recent earnings report, Sunoco announced an Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of $489 million, up from $456 million year-over-year. This figure excludes one-time transaction-related expenses that have impacted previous earnings, further demonstrating the Partnership's financial health. The reported Distributable Cash Flow, as adjusted, also stood at $326 million, compared to $349 million in the prior year. Although there was a slight dip in Cash Flow, the overall trajectory remains on a positive path.

The results were bolstered by improved margins in their fuel distribution sector, despite a reported decline in the profit per gallon sold, which fell to 10.7 cents from 12.8 cents last year. This segment sold approximately 2.3 billion gallons of fuel during the quarter, proving the strength of Sunoco's distribution network.

Strategic Acquisitions and Future Outlook

Sunoco LP has completed the acquisition of Parkland Corporation and is on track to finalize the acquisition of TanQuid in the fourth quarter of 2025. These strategic moves are expected to enhance Sunoco's operational capacity and market reach. Moreover, the Partnership's leverage ratio came in at 3.9 times, reflecting strong distribution coverage of 1.8 times over the trailing twelve months.

On October 20, 2025, Sunoco's board declared a quarterly distribution of $0.9202 per unit, marking a 1.25% increase from the previous quarter. This increment contributes to an ongoing trend that highlights a growth target for yearly distributions of at least 5% for 2025. Since 2022, Sunoco has increased its distributions by approximately 11%, showcasing its commitment to delivering value to its unitholders.

Capital Expenditure and Financial Resilience

In the third quarter, Sunoco's capital expenditures totaled $157 million, comprised of $115 million dedicated to growth and $42 million for maintenance. The Partnership's financial position remains strong, with long-term debt at about $9.5 billion and liquidity remaining at $1.5 billion as of September 30, 2025.

The Partnership plans to discuss its quarterly results and upcoming strategies in an earnings conference call scheduled for November 5, 2025. Investors and analysts are invited to join the discussion to gain further insights into Sunoco's operational strategies and projected outcomes for the next quarters.

Overview of Sunoco

Sunoco LP is a prominent player in energy infrastructure and fuel distribution, operating in 32 countries and territories across North America and Europe. The Partnership's midstream operations consist of an extensive pipeline network spanning roughly 14,000 miles and over 160 terminals. In addition to its strong operational framework, Sunoco distributes over 15 billion gallons of fuel annually to approximately 11,000 retail locations, showcasing its extensive market penetration and brand recognition.

With its impressive financial performance and strategic growth plans, Sunoco LP is well-positioned to continue its trajectory of success in the competitive energy sector. Stakeholders eagerly await further updates as the Partnership sets out to complete its acquisitions and pursue its ambitious distribution growth targets.