Sunoco LP (SUN) Q3 2024 Earnings Call Highlights: Record EBITDA and Strategic Acquisitions Amid ...

GuruFocus.com11-07

Adjusted EBITDA: $470 million, excluding $14 million of one-time transaction expenses. Growth Capital Expenditure: $67 million. Maintenance Capital Expenditure: $26 million. Distributable Cash Flow (...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2481947365?lang=en_US&edition=fundamental","thumbnail":"https://s.yimg.com/uu/api/res/1.2/7wUOPw_E8.X4ZlELLR_KyA--~B/aD0xNTk7dz0yNTA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/6a84b75afe95ff10b6be72d4d2e7b682","is_english":true,"pubTime":"2024-11-07 15:15","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2481947365","market":"us","top_or_hot":-1,"title":"Sunoco LP (SUN) Q3 2024 Earnings Call Highlights: Record EBITDA and Strategic Acquisitions Amid ...","media":"GuruFocus.com","content":"<div>\n<p>Adjusted EBITDA: $470 million, excluding $14 million of one-time transaction expenses.\nGrowth Capital Expenditure: $67 million.\nMaintenance Capital Expenditure: $26 million.\nDistributable Cash Flow (...</p>\n\n<a href=\"https://finance.yahoo.com/news/sunoco-lp-sun-q3-2024-071546391.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Sunoco LP (SUN) Q3 2024 Earnings Call Highlights: Record EBITDA and Strategic Acquisitions Amid ...</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSunoco LP (SUN) Q3 2024 Earnings Call Highlights: Record EBITDA and Strategic Acquisitions Amid ...\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-07 15:15 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/sunoco-lp-sun-q3-2024-071546391.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Adjusted EBITDA: $470 million, excluding $14 million of one-time transaction expenses.\nGrowth Capital Expenditure: $67 million.\nMaintenance Capital Expenditure: $26 million.\nDistributable Cash Flow (...</p>\n\n<a href=\"https://finance.yahoo.com/news/sunoco-lp-sun-q3-2024-071546391.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"SUN","symbol_name":"太阳石油","start_time":0,"source_url":"https://finance.yahoo.com/news/sunoco-lp-sun-q3-2024-071546391.html","article_id":"2481947365","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/7wUOPw_E8.X4ZlELLR_KyA--~B/aD0xNTk7dz0yNTA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/6a84b75afe95ff10b6be72d4d2e7b682"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2481947365","pubTimestamp":1730963746,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Adjusted EBITDA: $470 million, excluding $14 million of one-time transaction expenses.Coverage Ratio: Current quarter coverage ratio of 2.3 times; trailing 12-month ratio of 1.9 times.Distribution: $0.8756 per unit, consistent with last quarter.Liquidity: Approximately $1.4 billion remaining on revolving credit facility.Leverage Ratio: 4 times, in line with long-term target.Fuel Distribution Segment Adjusted EBITDA: $253 million, up 3% from the second quarter and 8% year-over-year.Fuel Distribution Volume: 2.1 billion gallons, down 2% from the second quarter, up 1% year-over-year.Fuel Margin: $0.128 per gallon, compared to $0.118 in the second quarter and $0.125 in the third quarter of 2023.Pipeline System Segment Adjusted EBITDA: $147 million, excluding $11 million of transaction expenses.Pipeline Throughput: Nearly 1.2 million barrels per day.Terminal Segment Adjusted EBITDA: $70 million, excluding $3 million of transaction expenses.Synergy Targets: $125 million in 2025 and $200 mill","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"SUN":"太阳石油"},"translate_title":"Sunoco LP(SUN)2024年第三季度收益看涨期权亮点：创纪录的EBITDA和战略收购...","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SUN":1},"content_text":"Adjusted EBITDA: $470 million, excluding $14 million of one-time transaction expenses.\nGrowth Capital Expenditure: $67 million.\nMaintenance Capital Expenditure: $26 million.\nDistributable Cash Flow (Adjusted): $349 million.\nCoverage Ratio: Current quarter coverage ratio of 2.3 times; trailing 12-month ratio of 1.9 times.\nDistribution: $0.8756 per unit, consistent with last quarter.\nLiquidity: Approximately $1.4 billion remaining on revolving credit facility.\nLeverage Ratio: 4 times, in line with long-term target.\nFuel Distribution Segment Adjusted EBITDA: $253 million, up 3% from the second quarter and 8% year-over-year.\nFuel Distribution Volume: 2.1 billion gallons, down 2% from the second quarter, up 1% year-over-year.\nFuel Margin: $0.128 per gallon, compared to $0.118 in the second quarter and $0.125 in the third quarter of 2023.\nPipeline System Segment Adjusted EBITDA: $147 million, excluding $11 million of transaction expenses.\nPipeline Throughput: Nearly 1.2 million barrels per day.\nTerminal Segment Adjusted EBITDA: $70 million, excluding $3 million of transaction expenses.\nTerminal Throughput: Nearly 700,000 barrels per day.\nSynergy Targets: $125 million in 2025 and $200 million in 2026, with $60 million already realized.\n\n\nWarning! GuruFocus has detected 8 Warning Signs with SUN.\n\nRelease Date: November 06, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nSunoco LP (NYSE:SUN) delivered record third-quarter adjusted EBITDA of $470 million, showcasing strong financial performance.\nThe company closed a significant acquisition of a liquid fuels terminal in Portland, Maine, enhancing its asset portfolio.\nSunoco LP (NYSE:SUN) maintained a robust liquidity position with approximately $1.4 billion available on its revolving credit facility.\nThe company's leverage ratio is at its long-term target of four times, indicating effective financial management.\nSunoco LP (NYSE:SUN) is confident in meeting its 2024 EBITDA guidance and expects to continue delivering strong results across all business segments.\n\n Negative Points \n\nFuel distribution volumes were down 2% compared to the second quarter, indicating potential challenges in maintaining volume growth.\nExtended maintenance activities at two refineries impacted pipeline segment volumes and revenue during the third quarter.\nThe macro environment in the U.S. has seen a decrease in year-over-year demand, which could affect future performance.\nThere is ongoing uncertainty regarding regulatory impacts, such as the DC Court of Appeals ruling on pipeline tariffs.\nPotential recontracting risks exist for certain assets, such as the Corpus Christi terminal, which could impact future revenue streams.\n\n Q & A Highlights \nQ: Can you provide additional color on your views on fuel margins going forward? A: Austin Harkness, Executive Vice President, Chief Commercial Officer, explained that the fuel distribution business is very healthy, and the third quarter results reflect that. The company does not manage for CPG margin or volume on a quarterly basis but focuses on optimizing fuel profit over the long run. The current environment, with elevated break-evens and flat price volatility, suggests a constructive margin environment. While record margins may not be sustainable every quarter, the company expects to continue growing fuel profit on a trailing 12-month basis.\nQ: How does the apparent Trump victory impact your business or change the industry landscape? A: Joseph Kim, President and CEO, stated that the market appreciates clarity, and the election results provide that. The outcome is positive for Sunoco and the industry. Historically, Sunoco has performed well under various administrations, demonstrating resilience due to its critical infrastructure role. The company is confident in its ability to evolve and grow, regardless of political changes.\nQ: What are your capital allocation priorities, considering the recent decrease in leverage? A: Scott Grischow, Senior Vice President - Investor Relations and Treasury, noted that after achieving the long-term leverage target of four times, the focus will shift to returning capital to unit holders and pursuing growth opportunities. The company plans to announce distribution increases early next year and will continue to invest in growth projects. While unit repurchases are a capital allocation decision, the best return is seen through distribution increases and reinvestment in the business.\nQ: What are your initial thoughts on fuel distribution trends for 2025? A: Austin Harkness mentioned that demand for refined products is expected to mirror the last 6 to 12 months, with gasoline demand roughly flat and ULSD slightly softer. Sunoco is prepared to execute in this environment, and if demand falls below expectations, it could create a constructive margin environment. The company is well-positioned to take advantage of opportunities, regardless of demand fluctuations.\nQ: How might the DC Court of Appeals ruling on liquid energy pipeline tariffs impact Sunoco? A: Karl Fails, Chief Operations Officer, expressed support for the DC circuit decision but noted some uncertainty due to subsequent announcements. Regardless of the outcome, Sunoco's strong asset base and growth strategy position it well for continued success. The company remains optimistic about resolving the issue favorably.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2481947365"}