DALLAS, Aug. 31, 2016 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("Sunoco") announced today the completion of the acquisition of the fuels business (the "Fuels Business") from Emerge Energy Services LP (NYSE: EMES) ("Emerge") for $167.7 million, plus working capital adjustments. The Fuels Business comprises Arlington-based Direct Fuels LLC and Birmingham-based Allied Energy Company LLC, both wholly owned subsidiaries of Emerge, and engages in the processing of transmix and the distribution of refined fuels.
The Fuels Business includes two transmix processing plants with attached refined product terminals located in the Birmingham, Alabama and greater Dallas, Texas metro areas. Combined, the plants can process over 10,000 barrels per day of transmix, and the associated terminals have over 800,000 barrels of storage capacity.
This transaction was funded using amounts available under Sunoco's revolving credit facility and is expected to be immediately accretive to Sunoco with respect to distributable cash flow.
About Sunoco LP
Sunoco LP (NYSE: SUN) is a master limited partnership that operates approximately 1,340 retail fuel sites and convenience stores (including APlus, Stripes, Aloha Island Mart and Tigermarket brands) and distributes motor fuel to convenience stores, independent dealers, commercial customers and distributors located in more than 30 states at approximately 6,900 sites. Our parent -- Energy Transfer Equity, L.P. (NYSE: ETE) -- owns Sunoco's general partner and incentive distribution rights.
Cautionary Statement Relevant to Forward-Looking Information
This press release includes forward-looking statements regarding future events. These forward-looking statements are based on SUN's current plans and expectations and involve a numbers of risks and uncertainties that could cause actual results and events to vary materially from the results and events anticipated or implied by such forward-looking statements. For a further discussion of these risks and uncertainties, please refer to the "Risk Factors" section of SUN's most recently filed annual report on Form 10-K and in other filings made by SUN with the Securities and Exchange Commission. While Sunoco may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so, even if new information becomes available.
Investor Contacts
Sunoco LP:
Scott Grischow
Senior Director – Investor Relations and Treasury
(469) 646-1188, scott.grischow@sunoco.com
Patrick Graham
Senior Analyst – Investor Relations and Finance
(469) 646-1328, patrick.graham@sunoco.com
Anne Pearson
Dennard-Lascar Associates
(210) 408-6321, apearson@dennardlascar.com
Media Contact
Sunoco LP:
Jeff Shields
Communications Manager
(215) 977-6056, jeff.shields@sunoco.com
SOURCE Sunoco LP
DALLAS, Aug. 3, 2016 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("SUN" or the "Partnership") today announced financial and operating results for the three-month period ended June 30, 2016.
Revenue totaled $4.1 billion, a decrease of 19.6 percent, compared to $5.1 billion in the second quarter of 2015. The decline was the result of a 60.5 cent per gallon decrease in the average selling price of fuel partly offset by an increase in retail merchandise sales.
Total gross profit was $580.6 million, compared to $545.2 million in the second quarter of 2015. Key drivers of the increase were a higher total weighted average fuel margin, an increase in merchandise margin and the contribution from third party acquisitions and new-to-industry locations opened during the last 12 months.
Income from operations was $124.2 million, versus $123.7 million in the second quarter of 2015, reflecting an increase in gross profit offset by higher general and administrative and other operating expenses.
Net income attributable to partners was $72.1 million, or $0.53 per diluted unit, versus $34.9 million, or $0.87 per diluted unit, in the second quarter of 2015.
Adjusted EBITDA (1) for the quarter totaled $164.0 million, compared with $142.4 million in the second quarter of 2015. The favorable year-over-year comparison reflects stronger retail fuel and merchandise margins, the contribution from third party acquisitions and new-to-industry locations opened during the last 12 months offset by weaker wholesale margins.
Distributable cash flow attributable to partners (1), as adjusted, was $92.2 million, compared to $39.3 million a year earlier.
On a weighted-average basis, fuel margin for all gallons sold increased to 13.8 cents per gallon, compared to 12.9 cents per gallon in the second quarter of 2015. The increase was primarily attributable to an increase in margins in both the retail and wholesale segments.
Net income attributable to partners for the wholesale segment was $83.2 million compared to $30.7 million a year ago. Adjusted EBITDA was $77.3 million, versus $61.5 million in the second quarter of last year. Total wholesale gallons sold were 1,315.7 million, compared with 1,285.0 million in the second quarter of 2015, an increase of 2.4 percent. This includes gallons sold to consignment stores and third-party customers, including independent dealers, fuel distributors and commercial customers. The Partnership earned 8.8 cents per gallon on these volumes, compared to 8.6 cents per gallon a year earlier.
Net loss attributable to partners for the retail segment was $11.0 million compared to a net income of $4.2 million a year ago. Adjusted EBITDA was $86.7 million, versus $80.9 million in the second quarter of last year. Total retail gallons sold increased by 0.3 percent to 641.2 million gallons as a result of the contribution from third party acquisitions and new-to-industry locations opened during the last 12 months. The Partnership earned 24.0 cents per gallon on these volumes, compared to 21.4 cents per gallon a year earlier.
Total merchandise sales increased by 2.8 percent from a year ago to $576.6 million, reflecting the contribution from third party acquisitions and new-to-industry locations opened during the last 12 months. Merchandise sales contributed $187.3 million of gross profit with a retail merchandise margin of 32.5 percent, a 100 basis point increase from the second quarter of 2015.
Same-store merchandise sales decreased by 1.8 percent, reflecting continued weakness in SUN's convenience store operations in the Texas oil producing regions and inclement weather in May in Texas and on the East Coast. Same-store fuel sales decreased by 2.8 percent as a result of weakness throughout the state of Texas, particularly lower year-over-year activity in oil producing markets. In the Texas oil producing regions, same-store merchandise sales decreased by 15.6 percent, and same-store fuel sales declined 17.9 percent. Excluding the oil producing regions, same-store sales increased by 0.6 percent, and same-store gallons decreased by 1.0 percent.
As of June 30, SUN operated approximately 1,340 convenience stores and retail fuel outlets along the East Coast, in the Southwest and in Hawaii. Third party operated sites totaled approximately 5,600 locations.
SUN's other recent accomplishments include the following:
SUN's segment results and other supplementary data are provided after the financial tables below.
Distribution Increase
On July 26, the Board of Directors of SUN's general partner declared a distribution for the second quarter of 2016 of $0.8255 per unit, which corresponds to $3.3020 per unit on an annualized basis. This represents a 1.0 percent increase compared to the distribution for the first quarter of 2016 and a 19.1 percent increase compared with the second quarter of 2015. This is the Partnership's thirteenth consecutive quarterly increase. The distribution will be paid on August 15 to unitholders of record on August 5.
SUN's distribution coverage ratio for the second quarter was 0.93 times. The distribution coverage ratio on a trailing 12-month basis was 1.20 times.
Liquidity
At June 30, SUN had borrowings against its revolving line of credit of $675.0 million and other long-term debt of $3.6 billion. Availability on the revolving credit facility after borrowings and letters of credit commitments was $802.8 million. Net debt to Adjusted EBITDA, pro forma for acquisitions, was 5.2 times at the end of the second quarter.
(1) |
Adjusted EBITDA and distributable cash flow are non-GAAP financial measures of performance that have limitations and should not be considered as a substitute for net income. Please refer to the discussion and tables under "Reconciliations of Non-GAAP Measures" later in this news release for a discussion of our use of Adjusted EBITDA and distributable cash flow, and a reconciliation to net income. |
Earnings Conference Call
Sunoco LP management will hold a conference call on Thursday, August 4, at 9:00 a.m. CT (10:00 a.m. ET) to discuss second quarter results and recent developments. To participate, dial 412-902-0003 approximately 10 minutes early and ask for the Sunoco LP conference call. The call will also be accessible live and for later replay via webcast in the Investor Relations section of Sunoco's website at www.SunocoLP.com under Events and Presentations.
Sunoco LP (NYSE: SUN) is a master limited partnership that operates approximately 1,340 retail fuel sites and convenience stores (including APlus, Stripes, Aloha Island Mart and Tigermarket brands) and distributes motor fuel to convenience stores, independent dealers, commercial customers and distributors located in more than 30 states at approximately 6,900 sites. Our parent -- Energy Transfer Equity, L.P. (NYSE: ETE) -- owns Sunoco's general partner and incentive distribution rights. For more information, visit the Sunoco LP website at www.SunocoLP.com
Forward-Looking Statements
This press release may include certain statements concerning expectations for the future that are forward-looking statements as defined by federal law. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management's control. An extensive list of factors that can affect future results are discussed in the Partnership's Annual Report on Form 10-K and other documents filed from time to time with the Securities and Exchange Commission. The Partnership undertakes no obligation to update or revise any forward-looking statement to reflect new information or events.
The information contained in this press release is available on our website at www.SunocoLP.com
Qualified Notice
This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat 100 percent of Sunoco LP's distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, Sunoco LP's distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.
Contacts
Investors:
Scott Grischow, Senior Director – Investor Relations and Treasury
(469) 646-1188, scott.grischow@sunoco.com
Patrick Graham, Senior Analyst – Investor Relations and Finance
(469) 646-1328, patrick.graham@sunoco.com
Dennard-Lascar Associates
Anne Pearson
(210) 408-6321, apearson@dennardlascar.com
Media:
Jeff Shields, Communications Manager
(215) 977-6056, jeff.shields@sunoco.com
- Financial Schedules Follow –
SUNOCO LP CONSOLIDATED BALANCE SHEETS (in thousands, except units) (unaudited) | ||||||||
June 30, 2016 |
December 31, 2015 |
|||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ |
83,175 |
$ |
72,627 |
||||
Advances to affiliates |
— |
365,536 |
||||||
Accounts receivable, net |
385,678 |
308,285 |
||||||
Accounts receivable from affiliates |
7,138 |
8,074 |
||||||
Inventories, net |
496,829 |
467,291 |
||||||
Other current assets |
57,655 |
46,080 |
||||||
Total current assets |
1,030,475 |
1,267,893 |
||||||
Property and equipment, net |
3,228,409 |
3,154,826 |
||||||
Other assets: |
||||||||
Goodwill |
3,153,657 |
3,111,262 |
||||||
Intangible assets, net |
1,277,309 |
1,259,440 |
||||||
Other noncurrent assets |
71,704 |
48,398 |
||||||
Total assets |
$ |
8,761,554 |
$ |
8,841,819 |
||||
Liabilities and equity |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ |
445,709 |
$ |
433,988 |
||||
Accounts payable to affiliates |
22,660 |
14,988 |
||||||
Advances from affiliates |
98,994 |
— |
||||||
Accrued expenses and other current liabilities |
302,299 |
307,939 |
||||||
Current maturities of long-term debt |
5,694 |
5,084 |
||||||
Total current liabilities |
875,356 |
761,999 |
||||||
Revolving line of credit |
675,000 |
450,000 |
||||||
Long-term debt, net |
3,514,261 |
1,502,531 |
||||||
Deferred tax liability |
668,188 |
694,383 |
||||||
Other noncurrent liabilities |
168,771 |
170,169 |
||||||
Total liabilities |
5,901,576 |
3,579,082 |
||||||
Commitments and contingencies (Note 11) |
||||||||
Equity: |
||||||||
Limited partners: |
||||||||
Common unitholders - public (49,588,960 units issued and outstanding as of June 30, 2016 and December 31, 2015) |
1,763,151 |
1,768,890 |
||||||
Common unitholders - affiliated (45,750,826 units issued and outstanding as of June 30, 2016 and 37,776,746 units issued and outstanding as of December 31, 2015) |
1,096,827 |
1,275,558 |
||||||
Class A unitholders - held by subsidiary (no units issued and outstanding as of June 30, 2016 and 11,018,744 units issued and outstanding as of December 31, 2015) |
— |
— |
||||||
Class C unitholders - held by subsidiary (16,410,780 units issued and outstanding as of June 30, 2016 and no units issued and outstanding as of December 31, 2015) |
— |
— |
||||||
Total partners' capital |
2,859,978 |
3,044,448 |
||||||
Predecessor equity |
— |
2,218,289 |
||||||
Total equity |
2,859,978 |
5,262,737 |
||||||
Total liabilities and equity |
$ |
8,761,554 |
$ |
8,841,819 |
||||
The accompanying notes are an integral part of these consolidated financial statements. |
SUNOCO LP CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (in thousands, except unit and per unit amounts) (unaudited) | ||||||||||||||||
For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
|||||||||||||||
2016 |
2015 |
2016 |
2015 |
|||||||||||||
Revenues |
||||||||||||||||
Retail motor fuel |
$ |
1,384,858 |
$ |
1,649,199 |
$ |
2,500,573 |
$ |
3,016,855 |
||||||||
Wholesale motor fuel sales to third parties |
1,996,716 |
2,845,635 |
3,492,590 |
5,282,137 |
||||||||||||
Wholesale motor fuel sales to affiliates |
9,710 |
3,972 |
16,839 |
4,939 |
||||||||||||
Merchandise |
576,594 |
560,680 |
1,100,688 |
1,043,803 |
||||||||||||
Rental income |
22,575 |
20,534 |
44,699 |
40,316 |
||||||||||||
Other |
61,714 |
46,064 |
99,091 |
88,886 |
||||||||||||
Total revenues |
4,052,167 |
5,126,084 |
7,254,480 |
9,476,936 |
||||||||||||
Cost of sales |
||||||||||||||||
Retail motor fuel |
1,229,528 |
1,509,411 |
2,213,970 |
2,729,650 |
||||||||||||
Wholesale motor fuel |
1,842,464 |
2,686,740 |
3,194,308 |
5,031,539 |
||||||||||||
Merchandise |
389,303 |
383,869 |
747,018 |
718,791 |
||||||||||||
Other |
10,305 |
854 |
19,874 |
2,513 |
||||||||||||
Total cost of sales |
3,471,600 |
4,580,874 |
6,175,170 |
8,482,493 |
||||||||||||
Gross profit |
580,567 |
545,210 |
1,079,310 |
994,443 |
||||||||||||
Operating expenses |
||||||||||||||||
General and administrative |
73,723 |
65,941 |
118,914 |
106,200 |
||||||||||||
Other operating |
266,788 |
249,442 |
515,793 |
493,032 |
||||||||||||
Rent |
35,639 |
35,791 |
69,096 |
69,117 |
||||||||||||
Loss on disposal of assets |
1,501 |
178 |
2,715 |
147 |
||||||||||||
Depreciation, amortization and accretion |
78,724 |
70,200 |
156,790 |
136,943 |
||||||||||||
Total operating expenses |
456,375 |
421,552 |
863,308 |
805,439 |
||||||||||||
Income from operations |
124,192 |
123,658 |
216,002 |
189,004 |
||||||||||||
Interest expense, net |
50,587 |
21,198 |
78,276 |
29,175 |
||||||||||||
Income before income taxes |
73,605 |
102,460 |
137,726 |
159,829 |
||||||||||||
Income tax expense |
1,468 |
8,926 |
3,580 |
16,989 |
||||||||||||
Net income and comprehensive income |
72,137 |
93,534 |
134,146 |
142,840 |
||||||||||||
Less: Net income and comprehensive income attributable to noncontrolling interest |
— |
847 |
— |
1,693 |
||||||||||||
Less: Preacquisition income allocated to general partner |
— |
57,820 |
— |
89,208 |
||||||||||||
Net income and comprehensive income attributable |
$ |
72,137 |
$ |
34,867 |
$ |
134,146 |
$ |
51,939 |
||||||||
Net income per limited partner unit: |
||||||||||||||||
Common (basic and diluted) |
$ |
0.53 |
$ |
0.87 |
$ |
1.01 |
$ |
1.31 |
||||||||
Subordinated (basic and diluted) |
$ |
— |
$ |
0.87 |
$ |
— |
$ |
1.31 |
||||||||
Weighted average limited partner units outstanding: |
||||||||||||||||
Common units - public (basic) |
49,588,960 |
20,036,329 |
49,588,960 |
20,036,329 |
||||||||||||
Common units - public (diluted) |
49,644,916 |
20,077,865 |
49,644,916 |
20,077,865 |
||||||||||||
Common units - affiliated (basic and diluted) |
45,750,826 |
4,858,330 |
41,807,600 |
4,460,589 |
||||||||||||
Subordinated units - affiliated |
— |
10,939,436 |
— |
10,939,436 |
||||||||||||
Cash distribution per common unit |
$ |
0.8255 |
$ |
0.6934 |
$ |
1.6428 |
$ |
1.3384 |
||||||||
The accompanying notes are an integral part of these consolidated financial statements. |
Key Operating Metrics
The following information is intended to provide investors with a reasonable basis for assessing our historical operations but should not serve as the only criteria for predicting our future performance. We operate our business in two primary operating divisions, wholesale and retail, both of which are included as reportable segments.
Key operating metrics set forth below are presented as of and for the three months ended June 30, 2016 and 2015 and have been derived from our historical consolidated financial statements.
The following table sets forth, for the periods indicated, information concerning key measures we rely on to gauge our operating performance (in thousands, except gross profit per gallon):
For the Three Months Ended June 30, |
|||||||||||||||||||||
2016 |
2015 | ||||||||||||||||||||
Wholesale |
Retail |
Total |
Wholesale |
Retail |
Total |
||||||||||||||||
Revenues |
|||||||||||||||||||||
Retail motor fuel |
$ |
— |
$ |
1,384,858 |
$ |
1,384,858 |
$ |
— |
$ |
1,649,199 |
$ |
1,649,199 |
|||||||||
Wholesale motor fuel sales to third parties |
1,996,716 |
— |
1,996,716 |
2,845,635 |
— |
2,845,635 |
|||||||||||||||
Wholesale motor fuel sales to affiliates |
9,710 |
— |
9,710 |
3,972 |
— |
3,972 |
|||||||||||||||
Merchandise |
— |
576,594 |
576,594 |
— |
560,680 |
560,680 |
|||||||||||||||
Rental income |
19,137 |
3,438 |
22,575 |
11,485 |
9,049 |
20,534 |
|||||||||||||||
Other |
7,281 |
54,433 |
61,714 |
6,270 |
39,794 |
46,064 |
|||||||||||||||
Total revenues |
$ |
2,032,844 |
$ |
2,019,323 |
$ |
4,052,167 |
$ |
2,867,362 |
$ |
2,258,722 |
$ |
5,126,084 |
|||||||||
Gross profit |
|||||||||||||||||||||
Retail motor fuel |
$ |
— |
$ |
155,330 |
$ |
155,330 |
$ |
— |
$ |
139,788 |
$ |
139,788 |
|||||||||
Wholesale motor fuel |
163,962 |
— |
163,962 |
162,867 |
— |
162,867 |
|||||||||||||||
Merchandise |
— |
187,291 |
187,291 |
— |
176,811 |
176,811 |
|||||||||||||||
Rental and other |
25,006 |
48,978 |
73,984 |
16,926 |
48,818 |
65,744 |
|||||||||||||||
Total gross profit |
$ |
188,968 |
$ |
391,599 |
$ |
580,567 |
$ |
179,793 |
$ |
365,417 |
$ |
545,210 |
|||||||||
Net income (loss) and comprehensive |
$ |
83,171 |
$ |
(11,034) |
$ |
72,137 |
$ |
30,657 |
$ |
4,210 |
$ |
34,867 |
|||||||||
Adjusted EBITDA attributable to partners (2) |
$ |
77,338 |
$ |
86,660 |
$ |
163,998 |
$ |
61,457 |
$ |
76,953 |
$ |
138,410 |
|||||||||
Distributable cash flow attributable to partners, as adjusted (2) |
$ |
92,225 |
$ |
39,293 |
|||||||||||||||||
Operating Data |
|||||||||||||||||||||
Total motor fuel gallons sold: |
|||||||||||||||||||||
Retail |
641,198 |
641,198 |
639,148 |
639,148 |
|||||||||||||||||
Wholesale |
1,315,728 |
1,315,728 |
1,285,041 |
1,285,041 |
|||||||||||||||||
Motor fuel gross profit (cents per |
|||||||||||||||||||||
gallon) (1): |
|||||||||||||||||||||
Retail |
24.0 |
21.4 |
|||||||||||||||||||
Wholesale |
8.8 |
8.6 |
|||||||||||||||||||
Volume-weighted average for all gallons |
13.8 |
12.9 |
|||||||||||||||||||
Retail merchandise margin |
32.5% |
31.5% |
(1) |
Excludes the impact of inventory fair value adjustments consistent with the definition of Adjusted EBITDA. |
(2) |
We define EBITDA as net income before net interest expense, income tax expense and depreciation, amortization and accretion expense. We define Adjusted EBITDA to include adjustments for non-cash compensation expense, gains and losses on disposal of assets, unrealized gains and losses on commodity derivatives and inventory fair value adjustments. We define distributable cash flow as Adjusted EBITDA less cash interest expense including the accrual of interest expense related to our 2020 and 2023 Senior Notes that is paid on a semi-annual basis, current income tax expense, maintenance capital expenditures, and other non-cash adjustments. Further adjustments are made to distributable cash flow for certain transaction-related and non-recurring expenses that are included in net income. |
We believe EBITDA, Adjusted EBITDA, and distributable cash flow are useful to investors in evaluating our operating performance because:
EBITDA, Adjusted EBITDA and distributable cash flow are not recognized terms under GAAP and do not purport to be alternatives to net income (loss) as measures of operating performance or to cash flows from operating activities as a measure of liquidity. EBITDA, Adjusted EBITDA and distributable cash flow have limitations as analytical tools, and should not be considered in isolation or as substitutes for analysis of our results as reported under GAAP. Some of these limitations include:
The following table presents a reconciliation of net income to EBITDA, Adjusted EBITDA and distributable cash flow for the three months ended June 30, 2016 and 2015 (in thousands):
For the Three Months Ended June 30, |
||||||||||||||||||||
2016 |
2015 |
|||||||||||||||||||
Wholesale |
Retail |
Total |
Wholesale |
Retail |
Total |
|||||||||||||||
Net income (loss) and comprehensive income (loss) |
$ |
83,171 |
$ |
(11,034) |
$ |
72,137 |
$ |
90,894 |
$ |
2,640 |
$ |
93,534 |
||||||||
Depreciation, amortization and accretion |
17,423 |
61,301 |
78,724 |
15,459 |
54,741 |
70,200 |
||||||||||||||
Interest expense, net |
16,241 |
34,346 |
50,587 |
5,313 |
15,885 |
21,198 |
||||||||||||||
Income tax expense (benefit) |
606 |
862 |
1,468 |
(262) |
9,188 |
8,926 |
||||||||||||||
EBITDA |
$ |
117,441 |
$ |
85,475 |
$ |
202,916 |
$ |
111,404 |
$ |
82,454 |
$ |
193,858 |
||||||||
Non-cash stock compensation expense |
2,796 |
583 |
3,379 |
1,121 |
1,275 |
2,396 |
||||||||||||||
Loss (gain) on disposal of assets |
(351) |
1,852 |
1,501 |
(11) |
189 |
178 |
||||||||||||||
Unrealized loss on commodity derivatives |
5,570 |
— |
5,570 |
786 |
— |
786 |
||||||||||||||
Inventory fair value adjustment |
(48,118) |
(1,250) |
(49,368) |
(51,843) |
(3,002) |
(54,845) |
||||||||||||||
Adjusted EBITDA |
$ |
77,338 |
$ |
86,660 |
$ |
163,998 |
$ |
61,457 |
$ |
80,916 |
$ |
142,373 |
||||||||
Adjusted EBITDA attributable |
— |
— |
— |
— |
3,963 |
3,963 |
||||||||||||||
Adjusted EBITDA attributable to partners |
$ |
77,338 |
$ |
86,660 |
$ |
163,998 |
$ |
61,457 |
$ |
76,953 |
$ |
138,410 |
||||||||
Cash interest expense (3) |
47,819 |
15,088 |
||||||||||||||||||
Income tax expense (benefit) (current) |
288 |
(259) |
||||||||||||||||||
Maintenance capital expenditures |
23,944 |
4,074 |
||||||||||||||||||
Preacquisition earnings |
— |
82,914 |
||||||||||||||||||
Distributable cash flow attributable to partners |
$ |
91,947 |
$ |
36,593 |
||||||||||||||||
Transaction-related expense |
278 |
2,700 |
||||||||||||||||||
Distributable cash flow attributable to partners, as adjusted |
$ |
92,225 |
$ |
39,293 |
(3) |
Reflects the Partnership's cash interest paid less the cash interest paid on our VIE debt of $4.0 million during the three months ended June 30, 2015. |
Capital Spending
SUN's gross capital expenditures for the second quarter were $74.2 million, which included $50.3 million for growth capital and $23.9 million for maintenance capital. Approximately $24.7 million of the growth capital spent was for the construction of new-to-industry sites, of which six were opened in the second quarter, with 23 currently under construction.
SUN expects capital spending for the full year 2016, excluding acquisitions, to be within the following ranges ($ in millions)
Growth |
Maintenance | |||
Low |
High |
Low |
High | |
$380 |
$400 |
$100 |
$110 |
Growth capital spending includes the construction of at least 35 new-to-industry sites that SUN expects to complete in 2016.
SOURCE Sunoco LP
DALLAS, June 23, 2016 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("Sunoco") announced today the execution of a definitive agreement to purchase the fuels business (the "Fuels Business") from Emerge Energy Services LP (NYSE: EMES) ("Emerge") for $178.5 million, subject to working capital adjustments. The Fuels Business comprises Dallas-based Direct Fuels LLC and Birmingham-based Allied Energy Company LLC, both wholly owned subsidiaries of Emerge, and engages in the processing of transmix and the distribution of refined fuels.
The Fuels Business includes two transmix processing plants with attached refined product terminals located in the Birmingham, Alabama and greater Dallas, Texas metro areas. Combined, the plants can process over 10 thousand barrels per day of transmix, and the associated terminals have over 800 thousand barrels of storage capacity.
"We are pleased to add the Emerge Fuels Business to the existing Sunoco operating platform," said Bob Owens, Sunoco's President and Chief Executive Officer. "This transaction is consistent with our strategy of expanding our business through the acquisition of assets that are both complementary to our core wholesale and retail network and that further diversify Sunoco's income stream."
The transaction is expected to be immediately accretive to Sunoco with respect to distributable cash flow. It is expected to close during the third quarter of 2016 and is subject to regulatory clearances and the satisfaction of other customary closing conditions.
About Sunoco LP
Sunoco LP (NYSE: SUN) is a master limited partnership that operates approximately 1,300 retail fuel sites and convenience stores (including APlus, Stripes, Aloha Island Mart and Tigermarket brands) and distributes motor fuel to convenience stores, independent dealers, commercial customers and distributors located in 30 states at approximately 6,800 sites. Our parent -- Energy Transfer Equity, L.P. (NYSE: ETE) -- owns SUN's general partner and incentive distribution rights. For more information, visit the Sunoco LP website at www.SunocoLP.com
Cautionary Statement Relevant to Forward-Looking Information
This press release includes forward-looking statements regarding future events. These forward-looking statements are based on SUN's current plans and expectations and involve a numbers of risks and uncertainties that could cause actual results and events to vary materially from the results and events anticipated or implied by such forward-looking statements. For a further discussion of these risks and uncertainties, please refer to the "Risk Factors" section of SUN's most recently filed annual report on Form 10-K and in other filings made by SUN with the Securities and Exchange Commission. While Sunoco may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so, even if new information becomes available.
Investor Contacts
Sunoco LP:
Scott Grischow
Senior Director – Investor Relations and Treasury
(469) 646-1188, scott.grischow@sunoco.com
Patrick Graham
Senior Analyst – Investor Relations and Finance
(610) 833-3776, patrick.graham@sunoco.com
Anne Pearson
Dennard-Lascar Associates
(210) 408-6321, apearson@dennardlascar.com
Media Contact
Sunoco LP:
Jeff Shields
Communications Manager
(215) 977-6056, jeff.shields@sunoco.com
SOURCE Sunoco LP
Subscribe now for access to Criterion Research's historical production and forecast production by company.
Subscribe now for access to Criterion Research's hedge and analysis.