Energy Transfer LP
Company Summary
Financial Data:
NYSE:ETE from Google FinanceTickers:
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ETE - New York Stock Exchange
Related Entities
Recent news
- 9/26/2023 - Energy Transfer's... (subscriber access)
- 9/11/2023 - U.S. Army Corps of... (subscriber access)
- 8/16/2023 - Energy Transfer... (subscriber access)
- 8/3/2023 - Energy Transfer Mont... (subscriber access)
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Investor Presentations
- 2Q22 Investor Presentation
- Energy Transfer EIC Investor Presentation May 2022 (subscriber access)
- 4Q21 Earnings Presentation (subscriber access)
- 2Q21 Earnings Presentation (subscriber access)
- 1Q21 Earnings Presentation (subscriber access)
- 3Q20 Earnings Presentation (subscriber access)
- 2Q20 Earnings Presentation (subscriber access)
- 1Q20 Earnings Presentation (subscriber access)
- 4Q19 Investor Presentation (subscriber access)
- 3Q19 Earnings Presentation (subscriber access)
Company Transactions
Date: 9/30/2022
Type: Acquisition
NOTES:
Energy Transfer has reached a deal to sell its 51% stake in Energy Transfer Canada to a JV between Pembina and KKR for $1.3 billion, including debt and preferred equity. The sale will grant ET cash proceeds of $270 million and closing is set for 3Q22.
Energy Transfer has reached a deal to sell its 51% stake in Energy Transfer Canada to a JV between Pembina and KKR for $1.3 billion, including debt and preferred equity. The sale will grant ET cash proceeds of $270 million and closing is set for 3Q22.
REGIONS:
Western Canadian Sedimentary Basin
Date: 9/15/2022
Type: Acquisition
NOTES:
Energy Transfer signed a deal in August 2022 to acquire Woodford Express LLC, which owns a Mid-Continent gas gathering and processing system, for $485 million. The asset is located in the SCOOP and has 450 Mmcf/d in processing capacity and >200 miles of gathering lines that connect to the Energy Transfer network. Closing is expected in 3Q22.
Energy Transfer signed a deal in August 2022 to acquire Woodford Express LLC, which owns a Mid-Continent gas gathering and processing system, for $485 million. The asset is located in the SCOOP and has 450 Mmcf/d in processing capacity and >200 miles of gathering lines that connect to the Energy Transfer network. Closing is expected in 3Q22.
REGIONS:
SCOOP
Date: 6/30/2021
Type: Merger
NOTES:
Energy Transfer & Enable have entered into a merger deal which will see ET acquire Enable in an all-equity transaction valued at $7.2 billion. Enable unitholders will receive 0.8596 shares of ET common units for each unit held.
Energy Transfer & Enable have entered into a merger deal which will see ET acquire Enable in an all-equity transaction valued at $7.2 billion. Enable unitholders will receive 0.8596 shares of ET common units for each unit held.
REGIONS:
South Central
Date: 12/5/2019
Type: Acquisition
NOTES:
Energy Transfer entered into a definitive merger agreement in which it will acquire SemGroup in for roughly $5 billion.
Energy Transfer entered into a definitive merger agreement in which it will acquire SemGroup in for roughly $5 billion.
REGIONS:
North America
Date: 3/31/2019
Type: Acquisition
BUYERS:
Western Midstream Partners, LP
SELLERS:
Energy Transfer LP
ASSETS:
Red Bluff Express Pipeline
DETAILS:
NOTES:
Energy Transfer has sold a 30% interest in their Red Bluff Express Pipeline to Western Midstream Partners.
Energy Transfer has sold a 30% interest in their Red Bluff Express Pipeline to Western Midstream Partners.
REGIONS:
Permian Basin
Date: 11/15/2018
Type: Merger
NOTES:
Energy Transfer Equity (ETE) has entered into a deal to merger with Energy Transfer Partners (ETP) as part of a simplification transaction in a unit-for-unit exchange. As part of the deal, ETE's incentive distribution rights will be cancelled.
Energy Transfer Equity (ETE) has entered into a deal to merger with Energy Transfer Partners (ETP) as part of a simplification transaction in a unit-for-unit exchange. As part of the deal, ETE's incentive distribution rights will be cancelled.
Date: 5/15/2018
Type: Acquisition
NOTES:
Energy Transfer Equity will acquire all of the equity interests in USA Compression Partners GP and 12.5 million USAC common units for $250 million. Following the close, USAC will still hold 12.5 million units in its general partner.
Energy Transfer Equity will acquire all of the equity interests in USA Compression Partners GP and 12.5 million USAC common units for $250 million. Following the close, USAC will still hold 12.5 million units in its general partner.
Date: 9/15/2016
Type: Merger
REGIONS:
United States
Date: 3/30/2016
Type: Acquisition
NOTES:
ETP Sold its 6.72% Interest in Sunoco, LLC and its 100% Interest in Sunoco, INC
ETP Sold its 6.72% Interest in Sunoco, LLC and its 100% Interest in Sunoco, INC
REGIONS:
Canada
United States
News & Press Releases
Criterion News
- 9/26/2023 - Energy Transfer's... (subscriber access)
- 9/11/2023 - U.S. Army Corps of... (subscriber access)
- 8/16/2023 - Energy Transfer... (subscriber access)
- 8/3/2023 - Energy Transfer Mont... (subscriber access)
- 8/3/2023 - Energy Transfer... (subscriber access)
- 8/3/2023 - Energy Transfer Filing a... (subscriber access)
- 8/3/2023 - Energy Transfer... (subscriber access)
- 7/13/2023 - Energy Transfer Signs 3... (subscriber access)
- 6/22/2023 - U.S. DOE Denies Appeal... (subscriber access)
- 6/12/2023 - Energy Transfer... (subscriber access)
- 5/24/2023 - Energy Transfer Pushes... (subscriber access)
- 5/5/2023 - Energy Transfer Set to... (subscriber access)
- 4/25/2023 - Dept of Energy Rejects... (subscriber access)
- 3/27/2023 - Energy Transfer... (subscriber access)
- 2/16/2023 - Energy Transfer Notes... (subscriber access)
- 2/16/2023 - Energy Transfer Brings... (subscriber access)
- 2/16/2023 - Energy Transfer... (subscriber access)
- 2/16/2023 - Energy Transfer Placed... (subscriber access)
- 2/16/2023 - Energy Transfer Placed... (subscriber access)
- 2/16/2023 - Energy Transfer... (subscriber access)
- 2/16/2023 - Energy Transfer... (subscriber access)
- 2/16/2023 - Energy Transfer... (subscriber access)
- 2/16/2023 - Energy Transfer Expects... (subscriber access)
- 12/6/2022 - Energy Transfer Prices... (subscriber access)
- 12/6/2022 - Energy Transfer... (subscriber access)
- 12/6/2022 - Energy Transfer... (subscriber access)
- 11/2/2022 - Energy Transfer... (subscriber access)
- 11/2/2022 - Energy Transfer Closed... (subscriber access)
- 11/2/2022 - Energy Transfer On Track... (subscriber access)
- 8/25/2022 - Shell Signs LNG SPA with... (subscriber access)
Press Releases
- Closed on strategic divestiture of convenience stores to 7-Eleven, Inc. and completed refinancing and equity repurchase initiatives
- Reduced debt by over $2 billion
- Refinanced $2.2 billion of senior notes
- Repurchased over 17 million common limited partner units
- Redeemed $300 million of Series A Preferred units
- Maintained quarterly distribution of 82.55 cents and reported current quarter cash coverage of 1.03 times
- Cash coverage of 1.15 times for the trailing twelve months
- Generated fourth quarter Net Income of $232 million, Adjusted EBITDA(1) of $158 million and Distributable Cash Flow(1), as adjusted, of $106 million
- Net income and Adjusted EBITDA results include approximately $25 million of transaction costs related to the retail divestiture
- Closed the strategic divestiture of convenience stores in the continental United States to 7-Eleven, Inc. on January 23, 2018 for gross proceeds of approximately $3.2 billion
- Completed the following refinancing and equity repurchase initiatives:
- Closed the private offering of $2.2 billion of new senior notes on January 23, 2018, comprised of $1.0 billion in aggregate principal amount of 4.875% senior notes due 2023, $800 million in aggregate principal amount of 5.500% senior notes due 2026 and $400 million in aggregate principal amount of 5.875% senior notes due 2028. Proceeds from this offering were used to redeem in full amounts owed under existing senior notes
- Repaid in full and terminated the term loan agreement and paid down all outstanding amounts owed under the revolving credit facility
- Redeemed $300 million of Series A Preferred Units held by Energy Transfer Equity for an aggregate redemption amount of approximately $313 million
- Repurchased 17,286,859 Sunoco common units owned by Energy Transfer Partners for aggregate cash consideration of approximately $540 million at a 10-day volume weighted average price of $31.2376 per unit
- Entered into a commission agent arrangement for the 207 West Texas sites on December 5, 2017 with conversion expected to occur in the first quarter of 2018
- encroached on tribal treaty lands;
- desecrated sacred sites of the Standing Rock Sioux Tribe's ("SRST") in constructing DAPL;
- constructed DAPL without consulting with and over the rights and objections of SRST; and
- used excessive and illegal force against peaceful protestors.
- Executed definitive agreement to divest a majority of company-operated convenience stores to 7-Eleven, Inc. and launched sales process for remaining company-operated convenience stores in North and West Texas, New Mexico and Oklahoma
- Results of the retail divestitures are presented in discontinued operations
- Maintained quarterly distribution of 82.55 cents and reported current quarter cash coverage of 1.53 times
- Generated Net Loss of $222 million, Adjusted EBITDA(1) of $220 million and Distributable Cash Flow(1), as adjusted, of $158 million
- On April 6, SUN announced the planned divestiture of company-operated convenience stores in the continental United States.
- SUN entered into a definitive asset purchase agreement for the sale of a majority of its company-operated convenience stores to 7-Eleven, Inc. Total consideration in the transaction is $3.3 billion in cash plus fuel, merchandise and other inventories.
- As part of the transaction, SUN will enter into a 15-year take-or-pay fuel supply agreement with a 7-Eleven, Inc. subsidiary under which SUN will supply approximately 2.2 billion gallons of fuel annually.
- Also on April 6, SUN retained JP Morgan Securities, LLC to manage the marketing process for the remaining approximately 200 company-operated convenience stores in North and West Texas, New Mexico and Oklahoma in a separate process.
- Adjusted EBITDA is used as a performance measure under our revolving credit facility;
- securities analysts and other interested parties use such metrics as measures of financial performance, ability to make distributions to our unitholders and debt service capabilities;
- our management uses them for internal planning purposes, including aspects of our consolidated operating budget, and capital expenditures; and
- distributable cash flow provides useful information to investors as it is a widely accepted financial indicator used by investors to compare partnership performance, and as it provides investors an enhanced perspective of the operating performance of our assets and the cash our business is generating.
- they do not reflect our total cash expenditures, or future requirements for capital expenditures or contractual commitments;
- they do not reflect changes in, or cash requirements for, working capital;
- they do not reflect interest expense or the cash requirements necessary to service interest or principal payments on our revolving credit facility or term loan;
- although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect cash requirements for such replacements; and
- as not all companies use identical calculations, our presentation of EBITDA, Adjusted EBITDA and distributable cash flow may not be comparable to similarly titled measures of other companies.
- Riley Bass, Orlando, FL: A father and Walt Disney World Employee, Riley had always been a loyal Sunoco customer. Since winning, Riley has used his prize to help his extended family out with fuel expenses, and he's planning a summer road trip up to Niagara Falls in Canada before his eldest daughter starts college in the fall. Bass said, "This prize has given me a sense of freedom to go anywhere I want."
- Darlene McGaw, Union Springs, AL: Retired middle school teacher, Darlene McGaw, used her $5,000 worth of free Sunoco UltraTech™ fuel to support the local band she volunteers for: Chilly's ICE Cool Band. "The band, which is made up of about 40 children ages three to eighteen means the world to me and we constantly have hard time getting buses or cars to take the children and volunteers to local performances, so this prize helped to alleviate those obstacles for a few months, and Sunoco made that happen."
- Larry Greathouse, Newton Falls, OH: Larry Greathouse learned to use Sunoco fuel by his late father and is thankful for the early life lesson. "When I won this prize, it was the best thing that ever happened to me besides marrying my wife, but when Sunoco gave us tickets to a NASCAR race, too, my dreams really came true. Sunoco fuel has always meant everything to me, and now I have an even stronger appreciation for the company."
- William May, Houston, TX: Houston native, William May, goes to the Sunoco/Stripes station on Sheldon Road 10 times during the work week for fuel, Gatorade and tacos. One trip was extra special in 2016 when he was spotted with his Sunoco decal and entered into the running for the Free Fuel 5000 Grand Prize. "From winning this prize and getting a new home to expecting a baby this fall, I don't know how much luckier I can get!"
- Pacifico Marple Ford Dealership, Broomall, PA: Joe Pacifico – owner of Pacifico Marple Ford, applied for the Sunoco Universal Fleet card almost four years ago to help save up to 6 cents per gallon on fuel. Last year, the fleet card came with an unexpected advantage. The Grand Prize helped to minimalize fuel costs for the company for more than three months. "When our company initially won, we couldn't believe it. Sunoco has and always will be a staple for our business, and this prize further solidified that decision."
- On January 18, SUN announced it retained NRC Realty & Capital Advisors, LLC ("NRC") to assist with strategic alternatives for approximately 100 real estate assets.
- On March 30, SUN and Energy Transfer Equity, L.P. (NYSE: ETE) ("ETE") announced the completion of a private placement of $300 million in SUN preferred equity to ETE.
- On April 6, SUN announced the planned divestiture of company-operated convenience stores in the continental United States.
- SUN entered into a definitive asset purchase agreement for the sale of a majority of its company-operated convenience stores to 7-Eleven, Inc. Total consideration in the transaction is $3.3 billion in cash plus fuel, merchandise and other inventories.
- As part of the transaction, SUN will enter into a 15-year take-or-pay fuel supply agreement with a 7-Eleven subsidiary under which SUN will supply approximately 2.2 billion gallons of fuel annually.
- SUN retained JP Morgan Securities, LLC to manage the marketing process for the remaining approximately 200 company-operated convenience stores in North and West Texas, New Mexico and Oklahoma in a separate process.
- Adjusted EBITDA is used as a performance measure under our revolving credit facility;
- securities analysts and other interested parties use such metrics as measures of financial performance, ability to make distributions to our unitholders and debt service capabilities;
- our management uses them for internal planning purposes, including aspects of our consolidated operating budget, and capital expenditures; and
- distributable cash flow provides useful information to investors as it is a widely accepted financial indicator used by investors to compare partnership performance, and as it provides investors an enhanced perspective of the operating performance of our assets and the cash our business is generating.
- they do not reflect our total cash expenditures, or future requirements for capital expenditures or contractual commitments;
- they do not reflect changes in, or cash requirements for, working capital;
- they do not reflect interest expense or the cash requirements necessary to service interest or principal payments on our revolving credit facility or term loan;
- although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect cash requirements for such replacements; and
- as not all companies use identical calculations, our presentation of EBITDA, Adjusted EBITDA and distributable cash flow may not be comparable to similarly titled measures of other companies.
- Completed the previously announced acquisition of the convenience store, wholesale motor fuel distribution and commercial fuels distribution businesses serving East Texas and Louisiana from Denny Oil Company for $54.6 million plus inventory on hand at closing, subject to closing adjustments. The acquisition includes six company-operated locations and 127 supply contracts with dealer-owned and dealer-operated sites and over 500 commercial customers. This transaction closed on October 12, 2016.
- Retained NRC Realty & Capital Advisors, LLC on January 18, 2017 to assist with strategic alternatives for 99 real estate assets. Real estate assets in this process are company-owned locations, undeveloped greenfield sites and other excess real estate.
- SUN's Maximum Leverage Ratio will be increased to 6.75x beginning in the fourth quarter 2016 through 12/31/2017 with the following step-downs thereafter
- 6.50x at 3/31/2018,
- 6.25x at 6/30/2018,
- 6.00x at 9/30/2018,
- 5.75x at 12/31/2018,
- 5.50x at 3/31/2019 and thereafter
- SUN's Maximum Senior Secured Leverage Ratio will be set at 3.75x beginning with the fourth quarter 2016 through 12/31/2017, decreasing to 3.50x at 3/31/18 and falling away upon full repayment of Term Loan A
- SUN's Minimum Interest Coverage Ratio will be set at 2.25x, falling away when the Maximum Leverage Ratio covenant level returns to 5.50x
- Completed the acquisition of the fuels business from Emerge Energy Services LP for $171.5 million. The fuels business includes two transmix processing plants with attached refined product terminals located in the Birmingham, Alabama and greater Dallas, Texas metro areas and engages in the processing of transmix and the distribution of refined fuels. These two processing plants have attached refined product terminals with over 800,000 barrels of storage capacity.
- Completed the previously announced acquisition of the convenience store, wholesale motor fuel distribution and commercial fuels distribution businesses serving East Texas and Louisiana from Denny Oil Company for approximately $54.6 million plus inventory on hand at closing, subject to closing adjustments. The acquisition includes six company-operated locations and approximately 127 supply contracts with dealer-owned and dealer-operated sites and over 500 commercial customers. This transaction closed in the fourth quarter on October 12, 2016.
Energy Transfer Partners Expected to be Removed from the Alerian Index Series
Source: PR Newswire
DALLAS, Oct. 17, 2018 /PRNewswire/ -- Alerian announced today that Energy Transfer Partners (NYSE: ETP) is expected to be removed from the Alerian Midstream Energy Index (AMNA), Alerian US Midstream Energy Index (AMUS), Alerian MLP Index (AMZ), Alerian MLP Equal Weight Index (AMZE), Alerian MLP Infrastructure Index (AMZI), Alerian Large Cap MLP Index (AMLI), and Alerian Natural Gas MLP Index (ANGI) in a special rebalancing. In addition, Energy Transfer Equity (NYSE: ETE) is expected to be added to the AMZ, AMZE, AMZI, and ANGI.
Special rebalancings are triggered by corporate actions such as mergers, bankruptcies, and liquidations. Pending unitholder approval, ETP will cease to trade due to its merger with ETE. If approved, the rebalancing will take place one full trading day after the issuance of a press release indicating all needed merger votes have passed.
Each index will be rebalanced in accordance with its existing methodology. Constituent additions to and deletions from an index do not reflect an opinion by Alerian on the investment merits of the respective securities.
About Alerian
Alerian equips investors to make informed decisions about energy infrastructure and Master Limited Partnerships (MLPs). Its benchmarks are widely used by industry executives, investment professionals, research analysts, and national media to analyze relative performance. As of September 30, 2018, over $14 billion is directly tied to the Alerian Index Series through exchange-traded funds and notes, separately managed accounts, and structured products. For more information, including index values and constituents, research content, and announcements regarding rebalancings, please visit alerian.com.
View original content:http://www.prnewswire.com/news-releases/energy-transfer-partners-expected-to-be-removed-from-the-alerian-index-series-300732583.html
SOURCE Alerian
Article Date
10/17/201810/16/2018 - Sunoco LP Completes the Acquisition of BRENCO Marketing Corporation's Fuel Distribution Business
Sunoco LP Completes the Acquisition of BRENCO Marketing Corporation's Fuel Distribution Business
Source: PR Newswire
DALLAS, Oct. 16, 2018 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("Sunoco") announced today the completion of the acquisition of BRENCO Marketing Corporation's fuel distribution business for approximately $24 million plus working capital adjustments. The acquired wholesale fuels business distributes approximately 95 million gallons of fuel annually across a network of approximately 160 dealer and commission agent-operated locations and 100 commercial accounts in Central and East Texas.
The acquisition is consistent with Sunoco's strategy of utilizing its scale to grow the core fuel distribution business. The transaction was funded using cash on hand and amounts available under Sunoco's revolving credit facility.
About Sunoco LP
Sunoco LP (NYSE: SUN) is a master limited partnership that distributes motor fuel to approximately 9,900 retail stores, commission agent locations, independent dealers, commercial customers and distributors located in more than 30 states. SUN's general partner is owned by Energy Transfer Equity, L.P. (NYSE: ETE)
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
Contacts
Scott Grischow
Senior Director – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Derek Rabe, CFA
Manager – Investor Relations, Strategy and Growth
(214) 840-5553, derek.rabe@sunoco.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/sunoco-lp-completes-the-acquisition-of-brenco-marketing-corporations-fuel-distribution-business-300732217.html
SOURCE Sunoco LP
Article Date
10/16/201810/11/2018 - Swank Capital and Cushing® Asset Management Announce a Constituent Change to The Cushing® MLP High Income Index
Swank Capital and Cushing® Asset Management Announce a Constituent Change to The Cushing® MLP High Income Index
Source: PR Newswire
DALLAS, Oct. 11, 2018 /PRNewswire/ -- Swank Capital, LLC and Cushing® Asset Management, LP announce an upcoming interim change to constituents of The Cushing® MLP High Income Index (the "Index"). On August 1, 2018, Index constituents Energy Transfer Equity, L.P. (NYSE: ETE) and Energy Transfer Partners, L.P. (NYSE: ETP) announced a merger agreement wherein ETE would acquire ETP, subject to the approval of ETP unitholders. A special meeting of ETP unitholders is scheduled for October 18, 2018, for the purpose of voting on the merger agreement. Per the Index's methodology guide, after the market closes on October 18, 2018, and effective on October 19, 2018, Enterprise Products Partners L.P. (NYSE: EPD) will replace ETP as a constituent of the Index at ETP's then-current weight.
There will be no changes to the remaining constituents of the Index due to this event.
ABOUT THE CUSHING® MLP HIGH INCOME INDEX
The Cushing® MLP High Income Index provides a benchmark that is designed to track the performance of 30 higher-yielding publicly traded midstream energy infrastructure companies, including master limited partnerships (MLPs) and non-MLP energy midstream corporations (each, a "Midstream Company" and collectively, "Midstream Companies"). Constituents are chosen according to a three-tiered proprietary weighting system developed by Cushing® Asset Management, LP. The Cushing® MLP High Income Index is calculated by S&P Dow Jones Indices and reported on a real-time basis under the Bloomberg ticker "MLPY".
ABOUT SWANK CAPITAL AND CUSHING® ASSET MANAGEMENT
Cushing® Asset Management, LP ("Cushing"), a subsidiary of Swank Capital, LLC, is an SEC-registered investment adviser headquartered in Dallas, Texas. Cushing serves as investment adviser to affiliated funds and managed accounts which invest primarily in securities of Midstream Companies and other natural resource companies.
Cushing is also dedicated to serving the needs of MLP and energy income investors by sponsoring a variety of industry benchmarks, including The Cushing® 30 MLP Index (Bloomberg Ticker: MLPX), The Cushing® MLP Market Cap Index (Bloomberg Ticker: CMCI) ), The Cushing® Energy Index (Bloomberg Ticker: CENI), The Cushing® Energy Supply Chain Index (Bloomberg Ticker: CSCI), The Cushing® Transportation Index (Bloomberg Ticker: CTRI) and The Cushing® Utility Index (Bloomberg Ticker: CUTI). For more information, please visit http://www.cushingasset.com/indices.
Contact:
Judson Redmond
214-692-6334
www.cushingasset.com
The Cushing® MLP High Income Index (the "Index") is the exclusive property of Swank Capital, LLC and Cushing® Asset Management, LP, which has contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) ("S&P Dow Jones Indices") to maintain and calculate the Index. S&P® is a registered trademark of Standard & Poor's Financial Services LLC ("SPFS"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and these trademarks have been licensed to S&P Dow Jones Indices. "Calculated by S&P Dow Jones Indices" and its related stylized mark(s) have been licensed for use by Swank Capital, LLC, and Cushing® Asset Management, LP. Neither S&P Dow Jones Indices, SPFS, Dow Jones S&P nor any of their affiliates sponsor and promote the Index and none shall be liable for any errors or omissions in calculating the Index.
CUSH-MLPY
View original content:http://www.prnewswire.com/news-releases/swank-capital-and-cushing-asset-management-announce-a-constituent-change-to-the-cushing-mlp-high-income-index-300729323.html
SOURCE Cushing® Asset Management, LP; Swank Capital, LLC
Article Date
10/11/201810/11/2018 - Swank Capital and Cushing® Asset Management Announce a Rebalance of The Cushing® MLP Market Cap Index
Swank Capital and Cushing® Asset Management Announce a Rebalance of The Cushing® MLP Market Cap Index
Source: PR Newswire
DALLAS, Oct. 11, 2018 /PRNewswire/ -- Swank Capital, LLC and Cushing® Asset Management, LP announce an upcoming interim rebalance of The Cushing® MLP Market Cap Index (the "Index"). On August 1, 2018, Index constituents Energy Transfer Equity, L.P. (NYSE: ETE) and Energy Transfer Partners, L.P. (NYSE: ETP) announced a merger agreement wherein ETE would acquire ETP, subject to the approval of ETP unitholders. A special meeting of ETP unitholders is scheduled for October 18, 2018, for the purpose of voting on the merger agreement. Per the Index's methodology guide, after the market closes on October 18, 2018, and effective on October 19, 2018, ETP will be removed as a constituent of the Index.
Because ETP is expected to have a weight in the Index in excess of 3.5% at the time of its removal, per the Index's methodology guide, the Index will be rebalanced and all constituent weightings will be adjusted effective on October 19, 2018, as shown below.
Cushing® MLP Market Cap Index constituents, effective October 19, 2018: | |||
Company Name | Ticker | Index Weight | Status |
Enterprise Products Partners, L.P. | EPD | 7.50% | Existing |
Magellan Midstream Partners, L.P. | MMP | 7.50% | Existing |
The Williams Companies, Inc. | WMB | 7.50% | Existing |
Kinder Morgan, Inc. | KMI | 7.50% | Existing |
ONEOK, Inc. | OKE | 7.50% | Existing |
Cheniere Energy, Inc. | LNG | 7.50% | Existing |
Energy Transfer Equity, L.P. | ETE | 7.07% | Existing |
Targa Resources Corp. | TRGP | 6.59% | Existing |
Plains All American Pipeline, L.P. | PAA | 5.77% | NEW |
MPLX LP | MPLX | 5.30% | Existing |
Buckeye Partners, L.P. | BPL | 2.78% | Existing |
Western Gas Partners, L.P. | WES | 2.43% | Existing |
EQT Midstream Partners, LP | EQM | 2.43% | Existing |
Andeavor Logistics LP | ANDX | 2.25% | Existing |
DCP Midstream, LP | DCP | 2.03% | Existing |
Tallgrass Energy, LP | TGE | 1.89% | Existing |
Plains GP Holdings, L.P. | PAGP | 1.84% | NEW |
EnLink Midstream Partners, LP | ENLK | 1.54% | Existing |
Antero Midstream Partners LP | AM | 1.53% | Existing |
Phillips 66 Partners LP | PSXP | 1.48% | Existing |
AmeriGas Partners, L.P. | APU | 1.44% | Existing |
Shell Midstream Partners, L.P. | SHLX | 1.40% | Existing |
Enbridge Energy Partners, L.P. | EEP | 1.27% | Existing |
Crestwood Equity Partners LP | CEQP | 0.97% | Existing |
Alliance Resource Partners, L.P. | ARLP | 0.94% | Existing |
SemGroup Corporation | SEMG | 0.87% | Existing |
Sunoco LP | SUN | 0.83% | Existing |
Western Gas Equity Partners, LP | WGP | 0.82% | Existing |
Enable Midstream Partners, LP | ENBL | 0.77% | Existing |
Black Stone Minerals, L.P. | BSM | 0.76% | Existing |
Constituents removed, effective October 19, 2018: | |
Company Name | Ticker |
Antero Midstream GP LP | AMGP |
Energy Transfer Partners, L.P. | ETP |
ABOUT THE CUSHING® MLP MARKET CAP INDEX
The Cushing® MLP Market Cap Index provides a benchmark that is designed to track the performance of widely held midstream energy infrastructure companies, including master limited partnerships (MLPs) and non-MLP midstream corporations (each, a "Midstream Company" and collectively, "Midstream Companies"). The Index is weighted on a float-adjusted market capitalization basis, with the weight of each constituent capped at 7.5% at rebalance. The Index price level is calculated by S&P Dow Jones Indices while the constituents are selected from the entire universe of publicly traded Midstream Companies. The Cushing® MLP Market Cap Index is calculated by S&P Dow Jones Indices and reported on a real-time basis under the Bloomberg ticker "CMCI".
ABOUT SWANK CAPITAL AND CUSHING® ASSET MANAGEMENT
Cushing® Asset Management, LP ("Cushing"), a subsidiary of Swank Capital, LLC, is an SEC-registered investment adviser headquartered in Dallas, Texas. Cushing serves as investment adviser to affiliated funds and managed accounts which invest primarily in securities of Midstream Companies and other natural resource companies.
Cushing is also dedicated to serving the needs of MLP and energy income investors by sponsoring a variety of industry benchmarks, including The Cushing® 30 MLP Index (Bloomberg Ticker: MLPX), The Cushing® MLP High Income Index (Bloomberg Ticker: MLPY) ), The Cushing® Energy Index (Bloomberg Ticker: CENI), The Cushing® Energy Supply Chain Index (Bloomberg Ticker: CSCI), The Cushing® Transportation Index (Bloomberg Ticker: CTRI) and The Cushing® Utility Index (Bloomberg Ticker: CUTI). For more information, please visit http://www.cushingasset.com/indices.
Contact:
Judson Redmond
214-692-6334
www.cushingasset.com
The Cushing® MLP Market Cap Index (the "Index") is the exclusive property of Swank Capital, LLC, and Cushing Asset Management, LP, which have contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) ("S&P Dow Jones Indices") to calculate and maintain the Index. S&P® is a registered trademark of Standard & Poor's Financial Services LLC ("SPFS"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and, these trademarks have been licensed to S&P Dow Jones Indices. "Calculated by S&P Dow Jones Indices" and its related stylized mark(s) have been licensed for use by Cushing Asset Management, LP. Neither S&P Dow Jones Indices, SPFS, Dow Jones nor any of their affiliates sponsor and promote the Index and none shall be liable for any errors or omissions in calculating the Index.
CUSH-CMCI
View original content:http://www.prnewswire.com/news-releases/swank-capital-and-cushing-asset-management-announce-a-rebalance-of-the-cushing-mlp-market-cap-index-300729333.html
SOURCE Cushing® Asset Management, LP; Swank Capital, LLC
Article Date
10/11/2018Sunoco LP Completes the Acquisition of Sandford Oil
Source: PR Newswire
DALLAS, Aug. 1, 2018 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("Sunoco") announced today the completion of the acquisition of the equity interests of Sandford Energy, LLC, Sandford Transportation, LLC and their respective subsidiaries for approximately $66 million plus working capital adjustments. The acquired wholesale fuels business distributes approximately 115 million gallons of fuel annually to exploration, drilling and oil field services customers, primarily in basins in Central and West Texas and Oklahoma.
The acquisition is consistent with Sunoco's strategy of utilizing its scale to grow the core fuel distribution business. The transaction was funded using cash on hand and 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 distributes motor fuel to approximately 9,200 convenience stores, independent dealers, commercial customers and distributors located in more than 30 states. SUN's general partner is owned by Energy Transfer Equity, L.P. (NYSE: ETE).
The information contained in this press release is available on 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. Forward-looking statements may be identified by the use of the words "anticipates," "expects," "intends," "plans," "should," "could," "would," "may," "will," "believes," "estimates," "potential," "opportunity," "value-creating," "designed," "predict," "seek," "ongoing," "increases" or "continue" and variations or similar expressions. 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 Annual Report on Form 10-K filed by SUN 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.
Contacts
Scott Grischow
Senior Director – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Derek Rabe, CFA
Senior Analyst – Investor Relations and Finance
(214) 840-5553, derek.rabe@sunoco.com
View original content with multimedia:http://www.prnewswire.com/news-releases/sunoco-lp-completes-the-acquisition-of-sandford-oil-300690603.html
SOURCE Sunoco LP
Article Date
8/1/2018Alerian Reports June 30, 2018 Index Linked Product Positions
Source: PR Newswire
DALLAS, Aug. 1, 2018 /PRNewswire/ -- Alerian reported index linked product positions of $15.0 billion as of June 30, 2018. Linked products include exchange-traded funds, exchange-traded notes, return of capital notes, variable insurance portfolios, and mutual funds.
Below is a full list of energy master limited partnership (MLP) positions, as of June 30, 2018, in products linked to the Alerian Index Series.
|
Ticker |
Exposure in |
Exposure in |
Ticker |
Exposure in |
Exposure in | |
|
AM |
305,257,484 |
10,340,701 |
HEP |
151,911,915 |
5,375,510 | |
|
AMGP |
1,164,270 |
61,732 |
MMP |
1,501,453,809 |
21,735,000 | |
|
ANDX |
446,822,576 |
10,506,056 |
MPLX |
1,162,174,520 |
34,041,433 | |
|
APU |
58,778,057 |
1,392,185 |
NBLX |
22,166,701 |
434,130 | |
|
ARLP |
25,591,033 |
1,394,607 |
NGL |
165,162,738 |
13,213,019 | |
|
BPL |
604,497,037 |
17,197,640 |
NS |
210,933,016 |
9,312,716 | |
|
BPMP |
20,189,424 |
961,859 |
NSH |
239,822 |
19,340 | |
|
BWP |
170,678,160 |
14,688,310 |
PAA |
1,177,071,579 |
49,791,522 | |
|
CEQP |
183,499,246 |
5,779,504 |
PAGP |
3,213,393 |
134,395 | |
|
CQP |
173,601,824 |
4,828,980 |
PSXP |
318,554,875 |
6,238,834 | |
|
CVRR |
20,028,626 |
896,135 |
RMP |
147,346,450 |
8,657,253 | |
|
DCP |
421,401,442 |
10,654,904 |
SEP |
341,382,494 |
9,638,128 | |
|
DM |
13,475,016 |
990,810 |
SHLX |
322,823,077 |
14,554,692 | |
|
EEP |
277,227,481 |
25,363,905 |
SMLP |
12,744,536 |
827,567 | |
|
ENBL |
176,973,526 |
10,343,280 |
SPH |
28,830,596 |
1,227,356 | |
|
ENLC |
853,859 |
51,906 |
SUN |
27,065,571 |
1,084,358 | |
|
ENLK |
303,905,691 |
19,568,943 |
TCP |
165,868,659 |
6,391,856 | |
|
EPD |
1,503,782,388 |
54,347,032 |
TEGP |
386,005,955 |
17,419,041 | |
|
EQGP |
355,540 |
15,123 |
TGP |
18,444,324 |
1,094,619 | |
|
EQM |
356,373,011 |
6,907,792 |
USAC |
16,751,289 |
995,323 | |
|
ETE |
6,023,303 |
349,177 |
VLP |
17,131,051 |
449,988 | |
|
ETP |
1,481,856,983 |
77,828,623 |
VNOM |
25,953,041 |
813,320 | |
|
GEL |
281,851,288 |
12,864,048 |
WES |
571,788,034 |
11,816,244 | |
|
GLOP |
14,609,467 |
612,556 |
WGP |
826,761 |
23,126 | |
|
GMLP |
15,169,006 |
981,178 |
WPZ |
1,218,967,796 |
30,031,234 | |
|
HCLP |
18,789,000 |
1,592,288 |
||||
About Alerian
Alerian equips investors to make informed decisions about energy infrastructure and Master Limited Partnerships (MLPs). Its benchmarks are widely used by industry executives, investment professionals, research analysts, and national media to analyze relative performance. As of June 30, 2018, over $15 billion is directly tied to the Alerian Index Series through exchange-traded funds and notes, separately managed accounts, and structured products. For more information, including index values and constituents, research content, and announcements regarding rebalancings, please visit alerian.com.
View original content:http://www.prnewswire.com/news-releases/alerian-reports-june-30-2018-index-linked-product-positions-300690263.html
SOURCE Alerian
Article Date
8/1/20187/27/2018 - Sunoco LP Maintains Quarterly Distribution and Amends and Extends Revolving Credit Facility
Sunoco LP Maintains Quarterly Distribution and Amends and Extends Revolving Credit Facility
Source: PR Newswire
DALLAS, July 27, 2018 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("Sunoco") today announced that the Board of Directors of its general partner declared a quarterly distribution for the second quarter of 2018 of $0.8255 per common unit, which corresponds to $3.3020 per common unit on an annualized basis. The distribution will be paid on August 15, 2018 to common unitholders of record on August 7, 2018.
Sunoco today also announced it has entered into an amended and restated revolving credit agreement (the "Credit Facility") with a syndicate of lenders led by Bank of America Merrill Lynch. The Credit Facility size remains at $1.5 billion, and includes an accordion feature that provides flexibility to increase the Credit Facility up to $750 million, subject to additional lender commitments.
The Credit Facility matures in July 2023. Outstanding borrowings under the Credit Facility bear interest, at Sunoco's option, at either the base rate plus a margin ranging from 0.25% to 1.25% or LIBOR plus a margin ranging from 1.25% to 2.25%.
Sunoco will release its second quarter 2018 financial and operating results after the market closes on Wednesday, August 8. In conjunction with the news release, management will hold a conference call on Thursday, August 9 at 9:30 a.m. Central Time (10:30 a.m. Eastern Time) to discuss Sunoco's results.
|
By Phone: |
Dial 877-407-6184 (toll free) or 201-389-0877 at least 10 minutes before the call. A replay will be available through August 16, 2018 by dialing 877-660-6853 (toll free) or 201-612-7415 and using the conference ID 13681730#. |
|
By Webcast: |
Connect to the webcast via the Events and Presentations pages of Sunoco's Investor Relations website at www.SunocoLP.com. Please log in at least 10 minutes in advance to register and download any necessary software. A replay will be available shortly after the call. |
About Sunoco LP
Sunoco LP (NYSE: SUN) is a master limited partnership that distributes motor fuel to approximately 9,200 convenience stores, independent dealers, commercial customers and distributors located in more than 30 states. SUN's general partner is owned by Energy Transfer Equity, L.P. (NYSE: ETE).
The information contained in this press release is available on the Sunoco LP 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 SUN's distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, SUN's distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.
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. Forward-looking statements may be identified by the use of the words "anticipates," "expects," "intends," "plans," "should," "could," "would," "may," "will," "believes," "estimates," "potential," "opportunity," "value-creating," "designed," "predict," "seek," "ongoing," "increases" or "continue" and variations or similar expressions. 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 Annual Reports on Form 10-K filed by SUN, ETE and ETP and other documents filed from time to time with the Securities and Exchange Commission. The partnerships undertake no obligation to update or revise any forward-looking statement to reflect new information or events.
Contacts
Sunoco LP
Scott Grischow
Senior Director – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Derek Rabe, CFA
Senior Analyst – Investor Relations and Finance
(214) 840-5553, derek.rabe@sunoco.com
View original content with multimedia:http://www.prnewswire.com/news-releases/sunoco-lp-maintains-quarterly-distribution-and-amends-and-extends-revolving-credit-facility-300688011.html
SOURCE Sunoco LP
Article Date
7/27/20184/26/2018 - Sunoco LP Maintains Quarterly Distribution
Sunoco LP Maintains Quarterly Distribution
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
DALLAS, April 26, 2018 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("SUN") announced that the Board of Directors of its general partner declared a quarterly distribution for the first quarter of 2018 of $0.8255 per common unit, which corresponds to $3.3020 per common unit on an annualized basis. The distribution will be paid on May 15, 2018 to common unitholders of record on May 7, 2018.
SUN will release its first quarter 2018 financial and operating results after the market closes on Wednesday, May 9. In conjunction with the news release, management will hold a conference call on Thursday, May 10 at 9:30 a.m. Central Time (10:30 a.m. Eastern Time) to discuss SUN's results.
|
By Phone: |
Dial 877-407-6184 (toll free) or 201-389-0877 at least 10 minutes before the call. A replay will be available through May 17, 2018 by dialing 877-660-6853 (toll free) or 201-612-7415 and using the conference ID 13679373#. |
|
By Webcast: |
Connect to the webcast via the Events and Presentations pages of SUN's Investor Relations website at www.SunocoLP.com. Please log in at least 10 minutes in advance to register and download any necessary software. A replay will be available shortly after the call. |
About Sunoco LP
Sunoco LP (NYSE: SUN) is a master limited partnership that distributes motor fuel to approximately 9,200 convenience stores, independent dealers, commercial customers and distributors located in more than 30 states. SUN's general partner is owned by Energy Transfer Equity, L.P. (NYSE: ETE).
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 SUN's distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, SUN's distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.
Contacts
Scott Grischow
Senior Director – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Derek Rabe, CFA
Senior Analyst – Investor Relations and Finance
(214) 840-5553, derek.rabe@sunoco.com
View original content with multimedia:http://www.prnewswire.com/news-releases/sunoco-lp-maintains-quarterly-distribution-300637596.html
SOURCE Sunoco LP
Article Date
4/26/2018Sunoco LP Announces Definitive Agreement to Acquire the Wholesale Fuel Distribution and Terminal Business from Superior Plus Corporation
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
DALLAS, April 3, 2018 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("Sunoco") announced today the execution of a definitive agreement to purchase certain assets from Superior Plus Corporation (TSX: SPB) for approximately $40 million plus working capital adjustments. The assets consist of a network of approximately 100 dealers, several hundred commercial contracts and three terminals, which are connected to major pipelines serving the Upstate New York market. The wholesale fuels business sells approximately 200 million gallons of fuel annually through multiple channels. The three terminals have a combined 17 tanks with 429 thousand barrels of storage capacity.
The acquisition is consistent with Sunoco's strategy of utilizing its scale to grow the core fuel distribution business and adding fee-based refined product terminals into the overall portfolio. The acquisition is subject to customary closing conditions and is expected to close in April 2018. The transaction 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 distributes motor fuel to approximately 9,200 convenience stores, independent dealers, commercial customers and distributors located in more than 30 states. SUN's general partner is owned by Energy Transfer Equity, L.P. (NYSE: ETE).
The information contained in this press release is available on 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. Forward-looking statements may be identified by the use of the words "anticipates," "expects," "intends," "plans," "should," "could," "would," "may," "will," "believes," "estimates," "potential," "opportunity," "value-creating," "designed," "predict," "seek," "ongoing," "increases" or "continue" and variations or similar expressions. 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 Annual Report on Form 10-K filed by SUN 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.
Contacts
Scott Grischow
Senior Director – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Derek Rabe, CFA
Senior Analyst – Investor Relations and Finance
(214) 840-5553, derek.rabe@sunoco.com
View original content with multimedia:http://www.prnewswire.com/news-releases/sunoco-lp-announces-definitive-agreement-to-acquire-the-wholesale-fuel-distribution-and-terminal-business-from-superior-plus-corporation-300623778.html
SOURCE Sunoco LP
Article Date
4/3/2018Sunoco LP Completes Its Conversion of West Texas Retail Sites to Commission Agent Model
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
DALLAS, April 2, 2018 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("Sunoco") today announced the completion of the conversion of its 207 retail sites located in certain West Texas, Oklahoma and New Mexico markets to a single commission agent. With this conversion complete, Sunoco's transition out of the majority of its convenience store operations in the continental U.S. is effectively complete. Sunoco will continue to operate sites along the New Jersey and New York toll roads along with its retail operations in Hawaii.
Under the commission agent model, Sunoco owns, prices and sells fuel at the sites, paying the agent a fixed cents-per-gallon commission. In addition, Sunoco continues to own approximately two-thirds of this portfolio in fee and will receive rental income from the commission agent, who will conduct all operations related to the convenience store and any related restaurant locations.
About Sunoco LP
Sunoco LP (NYSE: SUN) is a master limited partnership that distributes motor fuel to approximately 9,200 convenience stores, independent dealers, commercial customers and distributors located in more than 30 states. SUN's general partner is owned by Energy Transfer Equity, L.P. (NYSE: ETE).
The information contained in this press release is available on 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. Forward-looking statements may be identified by the use of the words "anticipates," "expects," "intends," "plans," "should," "could," "would," "may," "will," "believes," "estimates," "potential," "opportunity," "value-creating," "designed," "predict," "seek," "ongoing," "increases" or "continue" and variations or similar expressions. 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 Annual Reports on Form 10-K filed by SUN, ETE and ETP and other documents filed from time to time with the Securities and Exchange Commission. The partnerships undertake no obligation to update or revise any forward-looking statement to reflect new information or events.
Contacts
Sunoco LP
Scott Grischow
Senior Director – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Derek Rabe, CFA
Senior Analyst – Investor Relations and Finance
(214) 840-5553, derek.rabe@sunoco.com
View original content with multimedia:http://www.prnewswire.com/news-releases/sunoco-lp-completes-its-conversion-of-west-texas-retail-sites-to-commission-agent-model-300621915.html
SOURCE Sunoco LP
Article Date
4/2/20182/23/2018 - Sunoco LP Files 2017 Annual Report on Form 10-K
Sunoco LP Files 2017 Annual Report on Form 10-K
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
DALLAS, Feb. 23, 2018 /PRNewswire/ -- Sunoco LP (NYSE: SUN) (the "Partnership") on February 23, 2018, filed operational and financial results for the fiscal year ended December 31, 2017 on Form 10-K with the U.S. Securities and Exchange Commission. The Annual Report on Form 10-K is available in the Investor Relations section of the Partnership's website at www.SunocoLP.com under "SEC Filings," as well as on the SEC's website at www.sec.gov.
Sunoco LP unitholders may also request a printed copy of the report, which contains the Partnership's audited financial statements, free of charge by emailing IR@SunocoLP.com or by completing the request form on the Investor Relations website.
K-1 tax information for Sunoco LP unitholders will be mailed in mid-March and will also be available online. Visit the Investor Relations section of the Partnership's website at www.SunocoLP.com under "Distribution and K-1 Information" to receive an email notification when tax year 2017 information is available or to sign up to receive your K-1 electronically.
About Sunoco LP
Sunoco LP (NYSE: SUN) is a master limited partnership that distributes motor fuel to approximately 9,200 convenience stores, independent dealers, commercial customers and distributors located in more than 30 states. SUN's general partner is owned by Energy Transfer Equity, L.P. (NYSE: ETE).
Contacts
Investors:
Scott Grischow, Senior Director – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Derek Rabe, CFA, Senior Analyst – Investor Relations and Finance
(214) 840-5553, derek.rabe@sunoco.com
Media:
Alyson Gomez, Director – Communications
(214) 840-5641, alyson.gomez@sunoco.com
Jeamy Molina, Senior Manager – PR & Communications
(214) 840-5594, jeamy.molina@sunoco.com
View original content with multimedia:http://www.prnewswire.com/news-releases/sunoco-lp-files-2017-annual-report-on-form-10-k-300603644.html
SOURCE Sunoco LP
Article Date
2/23/2018Sunoco LP Announces Fourth Quarter and Full Year Financial and Operating Results
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
DALLAS, Feb. 21, 2018 /PRNewswire/ --
Sunoco LP (NYSE: SUN) ("SUN" or the "Partnership") today announced financial and operating results for the three- and twelve-month period ended December 31, 2017.
Revenue totaled $3.0 billion, an increase of 4.8 percent, compared to $2.8 billion in the fourth quarter of 2016. The increase was the result of the average selling price of fuel being 25 cents per gallon higher than last year.
Total gross profit decreased to $277 million, compared to $296 million in the fourth quarter of 2016, as a result of lower motor fuel gross profits.
Income from continuing operations was $221 million, including $17 million of intangible impairment charges, versus a loss of $122 million in the fourth quarter of 2016, which included $227 million of goodwill impairment charges.
Income from discontinued operations, net of income taxes, was $11 million, including $23 million of goodwill impairment charges, versus a loss from discontinued operations, net of income taxes, of $463 million in the fourth quarter of 2016, which included $446 million of goodwill and intangibles impairment charges.
Net income was $232 million, or $2.01 per diluted unit, versus a net loss of $585 million, or ($6.32) per diluted unit, in the fourth quarter of 2016.
Adjusted EBITDA for the quarter totaled $158 million, compared with $154 million in the fourth quarter of 2016.
Distributable Cash Flow, as adjusted, was $106 million, compared to $63 million a year ago. This year-over-year increase reflects higher Adjusted EBITDA, decreased maintenance capital spend and a cash tax benefit compared to a cash tax expense a year ago.
On a weighted-average basis, fuel margin for all gallons sold was 15.3 cents per gallon, compared to 14.3 cents per gallon in the fourth quarter of 2016. The 1.0 cent per gallon increase was attributable to higher margins in the wholesale segment.
Net income for the wholesale segment was $47 million compared to $63 million a year ago. Adjusted EBITDA was $90 million, versus $78 million in the fourth quarter of last year. Total wholesale gallons sold were 1,346 million, compared to 1,359 million in the fourth quarter of 2016, a decrease of 1.0 percent. The Partnership earned 11.1 cents per gallon on these volumes, compared to 9.0 cents per gallon a year earlier.
Net income for the retail segment was $185 million compared to a net loss of $648 million a year ago. Adjusted EBITDA was $68 million, versus $76 million in the fourth quarter of last year. Total retail gallons sold were flat with a year ago at 626 million gallons. The Partnership earned 24.2 cents per gallon on these volumes, compared to 25.7 cents per gallon a year earlier.
Total merchandise sales increased by 0.5 percent from a year ago to $568 million(2), reflecting an increase in merchandise and restaurant sales across the Texas oil producing regions. Merchandise sales contributed $173 million of gross profit(3) with a retail merchandise margin of 30.6 percent, an increase of 0.7 percentage points from the fourth quarter of 2016.
Same-store merchandise sales decreased by 0.8 percent and same store gallons decreased by 1.4 percent during the fourth quarter, reflecting weakness across the East Coast. In the Texas oil producing regions, same-store merchandise sales increased by 11.2 percent, and same-store gallons increased 4.8 percent.
SUN's recent accomplishments include the following:
SUN's segment results and other supplementary data are provided after the financial tables below.
FY 2017 Compared to FY 2016
Revenue for the full year 2017 totaled $11.7 billion, a 17.4 percent increase compared to full year 2016. Gross profit for this period decreased 4.2 percent year-over-year to $1.1 billion.
Income from continuing operations was $326 million for the full year 2017 compared to $56 million in 2016. General and administrative expenses decreased $15 million from 2016 to $140 million. Other operating expenses increased $1 million from 2016 to $375 million and rent expenses were flat at $81 million.
Loss from discontinued operations, net of income taxes, was $177 million compared to a loss from discontinued operations, net of income taxes, of $462 million in the full year 2016.
Net income attributable to partners for the full year 2017 totaled $149 million compared to a net loss attributable to partners of $406 million a year ago. Adjusted EBITDA attributable to partners was $732 million, compared to $665 million for the 2016 period, and distributable cash flow, as adjusted was $473 million, versus $390 million for 2016.
Wholesale gallons sold to third parties increased by 2.5 percent to 5.4 billion gallons. Retail gallons sold increased by 0.4 percent to 2.5 billion gallons. On a weighted-average basis, fuel margin for all gallons sold increased to 15.2 cents per gallon for the full year 2017, versus 14.4 cents per gallon in the full year 2016.
Total merchandise sales increased by 2.7 percent from full year 2016 to $2.3 billion(4). Merchandise sales contributed $737 million of gross profit(5) with a retail merchandise margin of 31.6 percent, 0.1 percent increase from full year 2016.
Distribution
On January 24, 2018, the Board of Directors of SUN's general partner declared a distribution for the fourth quarter of 2017 of $0.8255 per unit, which corresponds to $3.3020 per unit on an annualized basis. The distribution was paid on February 14 to unitholders of record on February 6.
SUN's distribution coverage ratio for the fourth quarter was 1.03 times. The distribution coverage ratio on a trailing 12-month basis was 1.15 times.
Liquidity
At December 31, SUN had borrowings against its revolving line of credit of $765 million and other long-term debt of $3.6 billion. Availability on the revolving credit facility after borrowings and letters of credit commitments was $726 million. In the fourth quarter of 2017, SUN did not issue any common units through its at-the-market equity program. The leverage ratio of debt to Adjusted EBITDA, calculated in accordance with SUN's credit facility, was 5.58 times at the end of the fourth quarter.
|
(1) |
Adjusted EBITDA and Distributable Cash Flow, as adjusted, 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, as adjusted, and a reconciliation to net income. |
|
(2) |
Includes $426 million in merchandise sales from discontinued operations. |
|
(3) |
Includes $128 million in merchandise gross profit from discontinued operations. |
|
(4) |
Includes $1.8 billion in merchandise sales from discontinued operations. |
|
(5) |
Includes $552 million in merchandise gross profit from discontinued operations. |
Earnings Conference Call
Sunoco LP management will hold a conference call on Thursday, February 22, at 9:30 a.m. CT (10:30 a.m. ET) to discuss fourth quarter results and recent developments. To participate, dial 877-407-6184 (toll free) or 201-389-0877 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 distributes motor fuel to approximately 9,200 convenience stores, independent dealers, commercial customers and distributors located in more than 30 states. SUN's general partner is owned by Energy Transfer Equity, L.P. (NYSE: ETE).
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
(214) 840-5660, scott.grischow@sunoco.com
Derek Rabe, CFA, Senior Analyst – Investor Relations and Finance
(214) 840-5553, derek.rabe@sunoco.com
Media:
Alyson Gomez, Director – Communications
(214) 840-5641, alyson.gomez@sunoco.com
Jeamy Molina, Senior Manager – PR & Communications
(214) 840-5594, jeamy.molina@sunoco.com
– Financial Schedules Follow –
|
SUNOCO LP | |||||||
|
CONSOLIDATED BALANCE SHEETS | |||||||
|
(unaudited) | |||||||
|
December 31, |
December 31, | ||||||
|
(in millions, except units) | |||||||
|
Assets |
|||||||
|
Current assets: |
|||||||
|
Cash and cash equivalents |
$ |
28 |
$ |
103 |
|||
|
Accounts receivable, net |
541 |
539 |
|||||
|
Receivables from affiliates |
155 |
3 |
|||||
|
Inventories, net |
426 |
423 |
|||||
|
Other current assets |
81 |
73 |
|||||
|
Assets held for sale |
3,313 |
177 |
|||||
|
Total current assets |
4,544 |
1,318 |
|||||
|
Property and equipment, net |
1,557 |
1,584 |
|||||
|
Other assets: |
|||||||
|
Goodwill |
1,430 |
1,550 |
|||||
|
Intangible assets, net |
768 |
775 |
|||||
|
Other noncurrent assets |
45 |
63 |
|||||
|
Assets held for sale |
— |
3,411 |
|||||
|
Total assets |
$ |
8,344 |
$ |
8,701 |
|||
|
Liabilities and equity |
|||||||
|
Current liabilities: |
|||||||
|
Accounts payable |
$ |
559 |
$ |
616 |
|||
|
Accounts payable to affiliates |
206 |
109 |
|||||
|
Accrued expenses and other current liabilities |
368 |
372 |
|||||
|
Current maturities of long-term debt |
6 |
5 |
|||||
|
Liabilities associated with assets held for sale |
75 |
— |
|||||
|
Total current liabilities |
1,214 |
1,102 |
|||||
|
Revolving line of credit |
765 |
1,000 |
|||||
|
Long-term debt, net |
3,519 |
3,509 |
|||||
|
Advances from affiliates |
85 |
87 |
|||||
|
Deferred tax liability |
389 |
643 |
|||||
|
Other noncurrent liabilities |
125 |
116 |
|||||
|
Liabilities associated with assets held for sale |
— |
48 |
|||||
|
Total liabilities |
6,097 |
6,505 |
|||||
|
Commitments and contingencies (Note 13) |
|||||||
|
Equity: |
|||||||
|
Limited partners: |
|||||||
|
Series A Preferred unitholders - affiliated (12,000,000 units issued and outstanding as of December 31, 2017 and no units issued and outstanding as of December 31, 2016) |
300 |
— |
|||||
|
Common unitholders (99,667,999 units issued and outstanding as of December 31, 2017 and 98,181,046 units issued and outstanding as of December 31, 2016) |
1,947 |
2,196 |
|||||
|
Class C unitholders - held by subsidiary (16,410,780 units issued and outstanding as of December 31, 2017 and December 31, 2016) |
— |
— |
|||||
|
Total equity |
2,247 |
2,196 |
|||||
|
Total liabilities and equity |
$ |
8,344 |
$ |
8,701 |
|||
|
SUNOCO LP | |||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | |||||||||||
|
(unaudited) | |||||||||||
|
Year Ended December 31, | |||||||||||
|
2017 |
2016 |
2015 | |||||||||
|
(dollars in millions, except unit and per unit amounts) | |||||||||||
|
Revenues: |
|||||||||||
|
Retail motor fuel |
$ |
1,577 |
$ |
1,338 |
$ |
1,540 |
|||||
|
Wholesale motor fuel sales to third parties |
9,278 |
7,812 |
10,104 |
||||||||
|
Wholesale motor fuel sales to affiliates |
55 |
62 |
20 |
||||||||
|
Merchandise |
571 |
541 |
544 |
||||||||
|
Rental income |
89 |
88 |
81 |
||||||||
|
Other |
153 |
145 |
141 |
||||||||
|
Total revenues |
11,723 |
9,986 |
12,430 |
||||||||
|
Cost of sales: |
|||||||||||
|
Retail motor fuel cost of sales |
1,420 |
1,175 |
1,340 |
||||||||
|
Wholesale motor fuel cost of sales |
8,798 |
7,278 |
9,740 |
||||||||
|
Merchandise cost of sales |
386 |
363 |
365 |
||||||||
|
Other |
11 |
14 |
5 |
||||||||
|
Total cost of sales |
10,615 |
8,830 |
11,450 |
||||||||
|
Gross profit |
1,108 |
1,156 |
980 |
||||||||
|
Operating expenses: |
|||||||||||
|
General and administrative |
140 |
155 |
126 |
||||||||
|
Other operating |
375 |
374 |
372 |
||||||||
|
Rent |
81 |
81 |
79 |
||||||||
|
Loss on disposal of assets and impairment charge |
114 |
225 |
1 |
||||||||
|
Depreciation, amortization and accretion |
169 |
176 |
150 |
||||||||
|
Total operating expenses |
879 |
1,011 |
728 |
||||||||
|
Operating income |
229 |
145 |
252 |
||||||||
|
Interest expense, net |
209 |
161 |
67 |
||||||||
|
Income (loss) from continuing operations before income taxes |
20 |
(16) |
185 |
||||||||
|
Income tax expense (benefit) |
(306) |
(72) |
29 |
||||||||
|
Income from continuing operations |
326 |
56 |
156 |
||||||||
|
Income (loss) from discontinued operations, net of income taxes |
(177) |
(462) |
38 |
||||||||
|
Net income (loss) and comprehensive income (loss) |
149 |
(406) |
194 |
||||||||
|
Less: Net income and comprehensive income attributable to noncontrolling interest |
— |
— |
4 |
||||||||
|
Less: Preacquisition income allocated to general partner |
— |
— |
103 |
||||||||
|
Net income (loss) and comprehensive income (loss) attributable to partners |
$ |
149 |
$ |
(406) |
$ |
87 |
|||||
|
Year Ended December 31, |
Year Ended December 31, |
Year Ended December 31, | |||||||||
|
(dollars in millions, except unit and per unit amounts) | |||||||||||
|
Net income (loss) per limited partner unit - basic: |
|||||||||||
|
Continuing operations - common units |
$ |
2.13 |
$ |
(0.32) |
$ |
0.91 |
|||||
|
Discontinued operations - common units |
(1.78) |
(4.94) |
0.20 |
||||||||
|
Net income (loss) - common units |
$ |
0.35 |
$ |
(5.26) |
$ |
1.11 |
|||||
|
Continuing operations - subordinated units |
$ |
— |
$ |
— |
$ |
1.17 |
|||||
|
Discontinued operations - subordinated units |
— |
— |
0.23 |
||||||||
|
Net income - subordinated units |
$ |
— |
$ |
— |
$ |
1.40 |
|||||
|
Net income (loss) per limited partner unit - diluted: |
|||||||||||
|
Continuing operations - common units |
$ |
2.12 |
$ |
(0.32) |
$ |
0.91 |
|||||
|
Discontinued operations - common units |
(1.78) |
(4.94) |
0.20 |
||||||||
|
Net income (loss) - common units |
$ |
0.34 |
$ |
(5.26) |
$ |
1.11 |
|||||
|
Continuing operations - subordinated units |
$ |
— |
$ |
— |
$ |
1.17 |
|||||
|
Discontinued operations - subordinated units |
— |
— |
0.23 |
||||||||
|
Net income - subordinated units |
$ |
— |
$ |
— |
$ |
1.40 |
|||||
|
Weighted average limited partner units outstanding: |
|||||||||||
|
Common units - basic |
99,270,120 |
93,575,530 |
40,253,913 |
||||||||
|
Common units - diluted |
99,728,354 |
93,603,835 |
40,275,651 |
||||||||
|
Subordinated units - affiliated (basic and diluted) |
— |
— |
10,010,333 |
||||||||
|
Cash distribution per unit |
$ |
3.30 |
$ |
3.29 |
$ |
2.89 |
|||||
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 segments, wholesale and retail, both of which are included as reportable segments.
Key operating metrics set forth below are presented as of and for the years and three months ended December 31, 2017 and 2016 and have been derived from our historical consolidated financial statements.
The accompanying footnotes to the following four key operating metrics tables can be found immediately preceding our capital spending discussion.
|
Year Ended December 31, | ||||||||||||||||||||||||
|
2017 |
2016 | |||||||||||||||||||||||
|
Wholesale |
Retail |
Total |
Wholesale |
Retail |
Total | |||||||||||||||||||
|
(dollars and gallons in millions, except gross profit per gallon) | ||||||||||||||||||||||||
|
Revenues: |
||||||||||||||||||||||||
|
Retail motor fuel |
$ |
— |
$ |
1,577 |
$ |
1,577 |
$ |
— |
$ |
1,338 |
$ |
1,338 |
||||||||||||
|
Wholesale motor fuel sales to third parties |
9,278 |
— |
9,278 |
7,812 |
— |
7,812 |
||||||||||||||||||
|
Wholesale motor fuel sale to affiliates |
55 |
— |
55 |
62 |
— |
62 |
||||||||||||||||||
|
Merchandise |
— |
571 |
571 |
— |
541 |
541 |
||||||||||||||||||
|
Rental income |
77 |
12 |
89 |
76 |
12 |
88 |
||||||||||||||||||
|
Other |
50 |
103 |
153 |
45 |
100 |
145 |
||||||||||||||||||
|
Total revenues |
$ |
9,460 |
$ |
2,263 |
$ |
11,723 |
$ |
7,995 |
$ |
1,991 |
$ |
9,986 |
||||||||||||
|
Gross profit: |
||||||||||||||||||||||||
|
Retail motor fuel |
$ |
— |
$ |
157 |
$ |
157 |
$ |
— |
$ |
163 |
$ |
163 |
||||||||||||
|
Wholesale motor fuel |
535 |
— |
535 |
596 |
— |
596 |
||||||||||||||||||
|
Merchandise |
— |
185 |
185 |
— |
178 |
178 |
||||||||||||||||||
|
Rental and other |
116 |
115 |
231 |
110 |
109 |
219 |
||||||||||||||||||
|
Total gross profit |
$ |
651 |
$ |
457 |
$ |
1,108 |
$ |
706 |
$ |
450 |
$ |
1,156 |
||||||||||||
|
Net income (loss) and comprehensive income (loss) from continuing operations |
167 |
159 |
326 |
252 |
(196) |
56 |
||||||||||||||||||
|
Net loss and comprehensive loss from discontinued operations |
— |
(177) |
(177) |
— |
(462) |
(462) |
||||||||||||||||||
|
Net income (loss) and comprehensive income (loss) |
$ |
167 |
$ |
(18) |
$ |
149 |
$ |
252 |
$ |
(658) |
$ |
(406) |
||||||||||||
|
Net income (loss) and comprehensive income (loss) attributable to limited partners |
$ |
167 |
$ |
(18) |
$ |
149 |
$ |
252 |
$ |
(658) |
$ |
(406) |
||||||||||||
|
Adjusted EBITDA attributable to partners (2) |
$ |
346 |
$ |
386 |
$ |
732 |
$ |
320 |
$ |
345 |
$ |
665 |
||||||||||||
|
Distributable cash flow attributable to partners, as adjusted (2) |
$ |
473 |
$ |
390 |
||||||||||||||||||||
|
Operating Data: |
||||||||||||||||||||||||
|
Total motor fuel gallons sold: |
||||||||||||||||||||||||
|
Retail (3) |
2,526 |
2,526 |
2,517 |
2,517 |
||||||||||||||||||||
|
Wholesale |
5,421 |
5,421 |
5,288 |
5,288 |
||||||||||||||||||||
|
Motor fuel gross profit cents per gallon (1): |
||||||||||||||||||||||||
|
Retail (3) |
25.5¢ |
25.5¢ |
24.0¢ |
24.0¢ |
||||||||||||||||||||
|
Wholesale |
10.5¢ |
10.5¢ |
9.8¢ |
9.8¢ |
||||||||||||||||||||
|
Volume-weighted average for all gallons (3) |
15.2¢ |
14.4¢ |
||||||||||||||||||||||
|
Retail merchandise margin (3) |
31.6 |
% |
31.5 |
% |
||||||||||||||||||||
The following table presents a reconciliation of net income to EBITDA, Adjusted EBITDA and distributable cash flow:
|
Year Ended December 31, | ||||||||||||||||||||||||
|
2017 |
2016 | |||||||||||||||||||||||
|
Wholesale |
Retail |
Total |
Wholesale |
Retail |
Total | |||||||||||||||||||
|
(in millions) | ||||||||||||||||||||||||
|
Net income (loss) and comprehensive income (loss) |
$ |
167 |
$ |
(18) |
$ |
149 |
$ |
252 |
$ |
(658) |
$ |
(406) |
||||||||||||
|
Depreciation, amortization and accretion (3) |
118 |
85 |
203 |
94 |
225 |
319 |
||||||||||||||||||
|
Interest expense, net (3) |
88 |
157 |
245 |
59 |
130 |
189 |
||||||||||||||||||
|
Income tax expense (benefit) (3) |
(10) |
(248) |
(258) |
5 |
(36) |
(31) |
||||||||||||||||||
|
EBITDA |
$ |
363 |
$ |
(24) |
$ |
339 |
$ |
410 |
$ |
(339) |
$ |
71 |
||||||||||||
|
Non-cash compensation expense (3) |
2 |
22 |
24 |
6 |
7 |
13 |
||||||||||||||||||
|
Loss (gain) on disposal of assets & impairment charge (3) |
8 |
392 |
400 |
(3) |
683 |
680 |
||||||||||||||||||
|
Unrealized (gains) losses on commodity derivatives (3) |
(3) |
— |
(3) |
5 |
— |
5 |
||||||||||||||||||
|
Inventory adjustments (3) |
(24) |
(4) |
(28) |
(98) |
(6) |
(104) |
||||||||||||||||||
|
Adjusted EBITDA attributable to partners |
$ |
346 |
$ |
386 |
$ |
732 |
$ |
320 |
$ |
345 |
$ |
665 |
||||||||||||
|
Cash interest expense (3) |
231 |
178 |
||||||||||||||||||||||
|
Current income tax expense (3) |
4 |
— |
||||||||||||||||||||||
|
Maintenance capital expenditures (3) |
48 |
106 |
||||||||||||||||||||||
|
Distributable cash flow attributable to partners |
$ |
449 |
$ |
381 |
||||||||||||||||||||
|
Transaction-related expenses (3) |
47 |
9 |
||||||||||||||||||||||
|
Series A Preferred distribution |
(23) |
— |
||||||||||||||||||||||
|
Distributable cash flow attributable to partners, as adjusted |
$ |
473 |
$ |
390 |
||||||||||||||||||||
The following table sets forth, for the periods indicated, information concerning key measures we rely on to gauge our operating performance:
|
Three Months Ended December 31, | ||||||||||||||||||||||||
|
2017 |
2016 | |||||||||||||||||||||||
|
Wholesale |
Retail |
Total |
Wholesale |
Retail |
Total | |||||||||||||||||||
|
(dollars and gallons in millions, except motor fuel pricing and gross profit per gallon) | ||||||||||||||||||||||||
|
Revenues: |
||||||||||||||||||||||||
|
Retail motor fuel |
$ |
— |
$ |
414 |
$ |
414 |
$ |
— |
$ |
350 |
$ |
350 |
||||||||||||
|
Wholesale motor fuel sales to third parties |
2,334 |
— |
2,334 |
2,267 |
— |
2,267 |
||||||||||||||||||
|
Wholesale motor fuel sale to affiliates |
10 |
— |
10 |
17 |
— |
17 |
||||||||||||||||||
|
Merchandise |
— |
142 |
142 |
— |
133 |
133 |
||||||||||||||||||
|
Rental income |
19 |
3 |
22 |
19 |
3 |
22 |
||||||||||||||||||
|
Other |
12 |
25 |
37 |
15 |
20 |
35 |
||||||||||||||||||
|
Total revenues |
$ |
2,375 |
$ |
584 |
$ |
2,959 |
$ |
2,318 |
$ |
506 |
$ |
2,824 |
||||||||||||
|
Gross profit: |
||||||||||||||||||||||||
|
Retail motor fuel |
$ |
— |
$ |
25 |
$ |
25 |
$ |
— |
$ |
37 |
$ |
37 |
||||||||||||
|
Wholesale motor fuel |
151 |
— |
151 |
160 |
— |
160 |
||||||||||||||||||
|
Merchandise |
— |
45 |
45 |
— |
44 |
44 |
||||||||||||||||||
|
Rental and other |
29 |
27 |
56 |
31 |
24 |
55 |
||||||||||||||||||
|
Total gross profit |
$ |
180 |
$ |
97 |
$ |
277 |
$ |
191 |
$ |
105 |
$ |
296 |
||||||||||||
|
Net income (loss) and comprehensive income (loss) from continuing operations |
47 |
174 |
221 |
63 |
(185) |
(122) |
||||||||||||||||||
|
Net income (loss) and comprehensive income (loss) from discontinued operations |
— |
11 |
11 |
— |
(463) |
(463) |
||||||||||||||||||
|
Net income (loss) and comprehensive income (loss) |
$ |
47 |
$ |
185 |
$ |
232 |
$ |
63 |
$ |
(648) |
$ |
(585) |
||||||||||||
|
Net income (loss) and comprehensive income (loss) attributable to limited partners |
$ |
47 |
$ |
185 |
$ |
232 |
$ |
63 |
$ |
(648) |
$ |
(585) |
||||||||||||
|
Adjusted EBITDA attributable to partners (2) |
$ |
90 |
$ |
68 |
$ |
158 |
$ |
78 |
$ |
76 |
$ |
154 |
||||||||||||
|
Distributable cash flow attributable to partners, as adjusted (2) |
$ |
106 |
$ |
63 |
||||||||||||||||||||
|
Operating Data: |
||||||||||||||||||||||||
|
Total motor fuel gallons sold: |
||||||||||||||||||||||||
|
Retail (3) |
626 |
626 |
626 |
626 |
||||||||||||||||||||
|
Wholesale |
1,346 |
1,346 |
1,359 |
1,359 |
||||||||||||||||||||
|
Motor fuel gross profit cents per gallon (1): |
||||||||||||||||||||||||
|
Retail (3) |
24.2¢ |
24.2¢ |
25.7¢ |
25.7¢ |
||||||||||||||||||||
|
Wholesale |
11.1¢ |
11.1¢ |
9.0¢ |
9.0¢ |
||||||||||||||||||||
|
Volume-weighted average for all gallons (3) |
15.3¢ |
14.3¢ |
||||||||||||||||||||||
|
Retail merchandise margin (3) |
30.6 |
% |
29.9 |
% |
||||||||||||||||||||
The following table presents a reconciliation of net income to EBITDA, Adjusted EBITDA and distributable cash flow:
|
Three Months Ended December 31, | ||||||||||||||||||||||||
|
2017 |
2016 | |||||||||||||||||||||||
|
Wholesale |
Retail |
Total |
Wholesale |
Retail |
Total | |||||||||||||||||||
|
(in millions) | ||||||||||||||||||||||||
|
Net income (loss) and comprehensive income (loss) |
$ |
47 |
$ |
185 |
$ |
232 |
$ |
63 |
$ |
(648) |
$ |
(585) |
||||||||||||
|
Depreciation, amortization and accretion (3) |
37 |
11 |
48 |
34 |
51 |
85 |
||||||||||||||||||
|
Interest expense, net (3) |
20 |
41 |
61 |
18 |
38 |
56 |
||||||||||||||||||
|
Income tax expense (benefit) (3) |
(9) |
(195) |
(204) |
4 |
(43) |
(39) |
||||||||||||||||||
|
EBITDA |
$ |
95 |
$ |
42 |
$ |
137 |
$ |
119 |
$ |
(602) |
$ |
(483) |
||||||||||||
|
Non-cash compensation expense (3) |
1 |
5 |
6 |
2 |
2 |
4 |
||||||||||||||||||
|
Loss (gain) on disposal of assets & impairment charge (3) |
8 |
25 |
33 |
(2) |
679 |
677 |
||||||||||||||||||
|
Unrealized (gains) losses on commodity derivatives (3) |
2 |
— |
2 |
(4) |
— |
(4) |
||||||||||||||||||
|
Inventory adjustments (3) |
(16) |
(4) |
(20) |
(37) |
(3) |
(40) |
||||||||||||||||||
|
Adjusted EBITDA attributable to partners |
$ |
90 |
$ |
68 |
$ |
158 |
$ |
78 |
$ |
76 |
$ |
154 |
||||||||||||
|
Cash interest expense (3) |
59 |
53 |
||||||||||||||||||||||
|
Current income tax expense (benefit) (3) |
(3) |
12 |
||||||||||||||||||||||
|
Maintenance capital expenditures (3) |
13 |
33 |
||||||||||||||||||||||
|
Distributable cash flow attributable to partners |
$ |
89 |
$ |
56 |
||||||||||||||||||||
|
Transaction-related expenses (3) |
25 |
7 |
||||||||||||||||||||||
|
Series A Preferred distribution |
(8) |
— |
||||||||||||||||||||||
|
Distributable cash flow attributable to partners, as adjusted |
$ |
106 |
$ |
63 |
||||||||||||||||||||
|
____________________ | |
|
(1) |
Excludes the impact of inventory fair value adjustments consistent with the definition of Adjusted EBITDA. |
|
(2) |
EBITDA is defined as earnings before net interest expense, income taxes, depreciation, amortization and accretion expense. Adjusted EBITDA further adjusts EBITDA to reflect certain other non-recurring and non-cash items. We define Adjusted EBITDA to also include adjustments for 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 long-term debt that is paid on a semi-annual basis, Series A Preferred distribution, 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: | |
|
• |
Adjusted EBITDA is used as a performance measure under our revolving credit facility; |
|
• |
securities analysts and other interested parties use such metrics as measures of financial performance, ability to make distributions to our unitholders and debt service capabilities; |
|
• |
our management uses them for internal planning purposes, including aspects of our consolidated operating budget, and capital expenditures; and |
|
• |
distributable cash flow provides useful information to investors as it is a widely accepted financial indicator used by investors to compare partnership performance, and as it provides investors an enhanced perspective of the operating performance of our assets and the cash our business is generating. |
|
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 one should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. Some of these limitations include: | |
|
• |
they do not reflect our total cash expenditures, or future requirements for capital expenditures or contractual commitments; |
|
• |
they do not reflect changes in, or cash requirements for, working capital; |
|
• |
they do not reflect interest expense or the cash requirements necessary to service interest or principal payments on our revolving credit facility or term loan; |
|
• |
although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect cash requirements for such replacements; and |
|
• |
as not all companies use identical calculations, our presentation of EBITDA, Adjusted EBITDA and distributable cash flow may not be comparable to similarly titled measures of other companies. |
|
(3) |
Includes amounts from discontinued operations. |
Capital Spending
SUN's gross capital expenditures for the fourth quarter were $38 million, which included $25 million for growth capital and $13 million for maintenance capital.
Gross capital expenditures for the full year 2017 were $177 million, which included $129 million for growth capital and $48 million for maintenance capital.
Excluding acquisitions, SUN expects to spend approximately $90 million on growth capital and approximately $40 million on maintenance capital for the full year 2018.
View original content with multimedia:http://www.prnewswire.com/news-releases/sunoco-lp-announces-fourth-quarter-and-full-year-financial-and-operating-results-300602393.html
SOURCE Sunoco LP
Article Date
2/21/2018Alerian Reports December 31, 2017 Index Linked Product Positions
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
DALLAS, Feb. 21, 2018 /PRNewswire/ -- Alerian reported index linked product positions of $16.3 billion as of December 31, 2017. Linked products include exchange-traded funds, exchange-traded notes, return of capital notes, variable insurance portfolios, and mutual funds.
Below is a full list of energy master limited partnership (MLP) positions, as of December 31, 2017, in products linked to the Alerian Index Series.
|
Ticker |
Exposure in |
Exposure in |
Ticker |
Exposure in |
Exposure in | |
|
AM |
318,072,149 |
10,952,898 |
MMP |
1,644,568,414 |
23,182,526 | |
|
AMGP |
754,587 |
38,265 |
MPLX |
1,279,929,181 |
36,084,837 | |
|
ANDX |
516,099,522 |
11,173,404 |
NBLX |
21,404,873 |
428,097 | |
|
APU |
76,556,528 |
1,655,992 |
NGL |
195,952,022 |
13,946,763 | |
|
ARLP |
20,166,275 |
1,023,669 |
NS |
296,565,295 |
9,902,013 | |
|
BPL |
908,164,717 |
18,328,249 |
NSH |
236,356 |
15,055 | |
|
BWP |
201,509,203 |
15,608,769 |
PAA |
1,085,692,515 |
52,601,382 | |
|
CEQP |
30,317,020 |
1,175,078 |
PAGP |
3,567,709 |
162,538 | |
|
CQP |
30,774,953 |
1,038,291 |
PSXP |
303,822,210 |
5,803,672 | |
|
DCP |
411,714,791 |
11,332,639 |
RMP |
197,598,050 |
9,203,449 | |
|
DM |
186,044,367 |
6,109,831 |
SEP |
397,826,315 |
10,061,364 | |
|
EEP |
372,358,764 |
26,962,981 |
SHLX |
369,468,507 |
12,389,957 | |
|
ENBL |
30,305,242 |
2,131,170 |
SMLP |
20,113,987 |
981,170 | |
|
ENLC |
1,134,945 |
64,485 |
SPH |
35,347,307 |
1,459,426 | |
|
ENLK |
317,615,016 |
20,664,607 |
SUN |
36,559,156 |
1,287,294 | |
|
EPD |
1,672,410,145 |
63,086,011 |
TCP |
350,896,258 |
6,608,216 | |
|
EQGP |
315,059 |
11,712 |
TEGP |
1,533,669 |
59,583 | |
|
EQM |
536,502,790 |
7,339,299 |
TEP |
269,478,027 |
5,877,383 | |
|
ETE |
6,574,648 |
380,918 |
TGP |
26,220,374 |
1,301,259 | |
|
ETP |
1,669,396,449 |
93,158,284 |
VLP |
23,823,578 |
535,361 | |
|
GEL |
300,264,393 |
13,434,648 |
VNOM |
20,179,418 |
864,956 | |
|
GLOP |
17,814,465 |
719,776 |
WES |
604,184,334 |
12,563,617 | |
|
GMLP |
26,442,305 |
1,159,750 |
WGP |
664,201 |
17,874 | |
|
HEP |
168,157,229 |
5,175,661 |
WPZ |
1,231,920,496 |
31,766,903 |
About Alerian
Alerian equips investors to make informed decisions about Master Limited Partnerships (MLPs) and energy infrastructure. Its benchmarks, including the flagship Alerian MLP Index (AMZ), are widely used by industry executives, investment professionals, research analysts, and national media to analyze relative performance. As of December 31, 2017, over $16 billion was directly tied to the Alerian Index Series through exchange-traded funds and notes, separately managed accounts, and structured products. For more information, including index values and constituents, research content, and announcements regarding rebalancings, please visit alerian.com.
View original content:http://www.prnewswire.com/news-releases/alerian-reports-december-31-2017-index-linked-product-positions-300602316.html
SOURCE Alerian
Article Date
2/21/2018Sunoco LP Announces 4Q 2017 Earnings Release Dates
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
DALLAS, Jan. 31, 2018 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("SUN") will release its fourth quarter 2017 financial and operating results after the market closes on Wednesday, February 21. In conjunction with the news release, management will hold a conference call on Thursday, February 22 at 9:30 a.m. Central Time (10:30 a.m. Eastern Time) to discuss SUN's results.
|
By Phone: |
Dial 877-407-6184 (toll free) or 201-389-0877 at least 10 minutes before the call. A replay will be available through March 1, 2018 by dialing 877-660-6853 (toll free) or 201-612-7415 and using the conference ID 13675417#. | |
|
By Webcast: |
Connect to the webcast via the Events and Presentations pages of SUN's Investor Relations website at www.SunocoLP.com. Please log in at least 10 minutes in advance to register and download any necessary software. A replay will be available shortly after the call. |
About Sunoco LP
Sunoco LP (NYSE: SUN) is a master limited partnership that distributes motor fuel to approximately 9,200 convenience stores, independent dealers, commercial customers and distributors located in more than 30 states. SUN's general partner is owned by Energy Transfer Equity, L.P. (NYSE: ETE).
Contacts
Scott Grischow
Senior Director – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Derek Rabe, CFA
Senior Analyst – Investor Relations and Finance
(214) 840-5553, derek.rabe@sunoco.com
View original content with multimedia:http://www.prnewswire.com/news-releases/sunoco-lp-announces-4q-2017-earnings-release-dates-300591486.html
SOURCE Sunoco LP
Article Date
1/31/2018Sunoco LP and Energy Transfer Announce Redemption of Sunoco Series A Preferred Units and Repurchase of Sunoco Common Units
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
DALLAS, Jan. 25, 2018 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("Sunoco") and Energy Transfer Equity, L.P. (NYSE: ETE) ("ETE") announced that today Sunoco will redeem all outstanding Series A Preferred Units held by ETE for an aggregate redemption amount of approximately $312.6 million. The redemption amount includes the original consideration of $300 million and a 1% call premium plus accrued and unpaid quarterly distributions. ETE intends to use proceeds from the redemption of the Sunoco Series A Preferred Units to repay amounts outstanding under its revolving credit facility.
Sunoco and Energy Transfer Partners, L.P. (NYSE: ETP) ("ETP") also announced today they have entered into a Common Unit Repurchase Agreement, whereby Sunoco will repurchase 17,286,859 Sunoco common units owned by ETP for aggregate cash consideration of approximately $540 million. The repurchase price per common unit is $31.2376, which is equal to the volume weighted average trading price of Sunoco common units on the New York Stock Exchange for the ten trading days ending on January 23, 2018. Sunoco will fund the repurchase with cash on hand and expects to close the transaction on February 7, 2018, after the record date for Sunoco's fourth quarter 2017 cash distributions. ETP intends to use the proceeds from the sale of the Sunoco common units to repay amounts outstanding under its revolving credit facility.
About Sunoco LP
Sunoco LP (NYSE: SUN) is a master limited partnership that distributes motor fuel to approximately 9,200 convenience stores, independent dealers, commercial customers and distributors located in more than 30 states. SUN's general partner is owned by Energy Transfer Equity, L.P. (NYSE: ETE).
About Energy Transfer
Energy Transfer Equity, L.P. (NYSE: ETE) is a master limited partnership that owns the general partner and 100% of the incentive distribution rights (IDRs) of Energy Transfer Partners, L.P. (NYSE: ETP) and Sunoco LP (NYSE: SUN). ETE also owns Lake Charles LNG Company. On a consolidated basis, ETE's family of companies owns and operates a diverse portfolio of natural gas, natural gas liquids, crude oil and refined products assets, as well as retail and wholesale motor fuel operations and LNG terminalling.
Energy Transfer Partners, L.P. (NYSE: ETP) is a master limited partnership that owns and operates one of the largest and most diversified portfolios of energy assets in the United States. Strategically positioned in all of the major U.S. production basins, ETP owns and operates a geographically diverse portfolio of complementary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, natural gas liquids (NGL) and refined product transportation and terminalling assets; NGL fractionation assets; and various acquisition and marketing assets. ETP's general partner is owned by Energy Transfer Equity, L.P. (NYSE: ETE).
The information contained in this press release is available on the Sunoco LP website at www.SunocoLP.com and the Energy Transfer website at www.energytransfer.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. Forward-looking statements may be identified by the use of the words "anticipates," "expects," "intends," "plans," "should," "could," "would," "may," "will," "believes," "estimates," "potential," "opportunity," "value-creating," "designed," "predict," "seek," "ongoing," "increases" or "continue" and variations or similar expressions. 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 Annual Reports on Form 10-K filed by SUN, ETE and ETP and other documents filed from time to time with the Securities and Exchange Commission. The partnerships undertake no obligation to update or revise any forward-looking statement to reflect new information or events.
Contacts
Sunoco LP
Scott Grischow
Senior Director – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Derek Rabe, CFA
Senior Analyst – Investor Relations and Finance
(214) 840-5553, derek.rabe@sunoco.com
Energy Transfer
Investor Relations:
Helen Ryoo, 214-981-0795
or
Lyndsay Hannah, 214-981-0795
or
Brent Ratliff, 214-981-0795
or
Media Relations:
Vicki Granado, 214-840-5820
View original content with multimedia:http://www.prnewswire.com/news-releases/sunoco-lp-and-energy-transfer-announce-redemption-of-sunoco-series-a-preferred-units-and-repurchase-of-sunoco-common-units-300588010.html
SOURCE Sunoco LP
Article Date
1/25/20181/24/2018 - Sunoco LP Maintains Quarterly Distribution
Sunoco LP Maintains Quarterly Distribution
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
DALLAS, Jan. 24, 2018 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("SUN") announced that the Board of Directors of its general partner declared a quarterly distribution for the fourth quarter of 2017 of $0.8255 per common unit, which corresponds to $3.3020 per common unit on an annualized basis.
About Sunoco LP
Sunoco LP (NYSE: SUN) is a master limited partnership that distributes motor fuel to approximately 9,200 convenience stores, independent dealers, commercial customers and distributors located in more than 30 states. SUN's general partner is owned by Energy Transfer Equity, L.P. (NYSE: ETE).
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 SUN's distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, SUN's distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.
Contacts
Scott Grischow
Senior Director – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Derek Rabe, CFA
Senior Analyst – Investor Relations and Finance
(214) 840-5553, derek.rabe@sunoco.com
View original content with multimedia:http://www.prnewswire.com/news-releases/sunoco-lp-maintains-quarterly-distribution-300587901.html
SOURCE Sunoco LP
Article Date
1/24/2018Sunoco LP Announces Upsizing and Pricing of Private Offering of Senior Notes
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
DALLAS, Jan. 9, 2018 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("Sunoco") today announced that it has priced at 100% an upsized private offering of $2.2 billion of senior notes, comprised of $1 billion in aggregate principal amount of 4.875% senior notes due 2023, $800 million in aggregate principal amount of 5.500% senior notes due 2026 and $400 million in aggregate principal amount of 5.875% senior notes due 2028 (collectively, the "notes"). This represents a $450 million increase in the original offering amount. Sunoco Finance Corp., a wholly owned direct subsidiary of Sunoco, will serve as co-issuer of the notes. The sale of the notes is expected to settle on January 23, 2018, subject to the satisfaction of customary closing conditions.
Sunoco intends to use the net proceeds from the offering to redeem in full (i) its 5.500% senior notes due 2020 at a call premium of 102.750%, plus accrued and unpaid interest, and (ii) each of its 6.250% senior notes due 2021 and 6.375% senior notes due 2023 at a make-whole premium, plus accrued and unpaid interest. Sunoco intends to use the proceeds from its previously announced sale of certain company-operated retail fuel outlets to 7-Eleven, Inc. (the "7-Eleven Transaction") to (i) repay in full and terminate its existing senior secured term loan agreement, (ii) repay a portion of the outstanding borrowings under its existing $1.5 billion revolving credit facility, (iii) pay all closing costs and taxes in connection with the 7-Eleven Transaction, (iv) redeem all of its outstanding Series A Preferred Units and (v) fund the repurchase of a portion of its outstanding common units.
The offering of the notes has not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws and, unless so registered, the notes may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.
This press release is neither an offer to sell nor a solicitation of an offer to buy the notes or any other securities and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale of, the notes or any other securities in any jurisdiction in which such offer, solicitation or sale is unlawful.
About Sunoco LP
Sunoco LP (NYSE: SUN) is a master limited partnership that operates 1,346 convenience stores and retail fuel sites and distributes motor fuel to 7,898 convenience stores, independent dealers, commercial customers and distributors located in more than 30 states. Our parent – Energy Transfer Equity, L.P. (NYSE: ETE) – owns Sunoco's general partner and all of Sunoco's 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 Sunoco's current plans and expectations, including with respect to the notes offering, the 7-Eleven Transaction and the use of net proceeds therefrom, and involve a number 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 Sunoco's most recently filed annual report on Form 10-K, Sunoco's quarterly report on Form 10-Q for the quarter ended March 31, 2017 and in other filings made by Sunoco 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 in the future.
Contacts
Scott Grischow
Senior Director – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Derek Rabe, CFA
Senior Analyst – Investor Relations and Finance
(214) 840-5553, derek.rabe@sunoco.com
View original content with multimedia:http://www.prnewswire.com/news-releases/sunoco-lp-announces-upsizing-and-pricing-of-private-offering-of-senior-notes-300580392.html
SOURCE Sunoco LP
Article Date
1/9/2018Sunoco LP Announces Private Offering of Senior Notes
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
DALLAS, Jan. 8, 2018 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("Sunoco") today announced a private offering of senior notes due 2023, senior notes due 2026 and senior notes due 2028 (collectively, the "notes") in an aggregate principal amount of $1.75 billion. Sunoco Finance Corp., a wholly owned direct subsidiary of Sunoco, will serve as co-issuer of the notes.
Sunoco intends to use the net proceeds from the offering, together with the consideration it receives from its previously announced sale of certain company-operated retail fuel outlets to 7-Eleven, Inc. (the "7-Eleven Transaction"), to (i) redeem in full (a) its 5.500% senior notes due 2020 at a call premium of 102.750% plus accrued and unpaid interest, and (b) each of its 6.250% senior notes due 2021 and 6.375% senior notes due 2023 at a make-whole premium plus accrued and unpaid interest, (ii) repay in full and terminate its existing senior secured term loan agreement, (iii) repay a portion of the outstanding borrowings under its existing $1.5 billion revolving credit facility, (iv) pay all closing costs and taxes in connection with the 7-Eleven Transaction, (v) redeem all of its outstanding Series A Preferred Units and (vi) fund the repurchase of a portion of its outstanding common units.
The offering of the notes has not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws and, unless so registered, the notes may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.
This press release is neither an offer to sell nor a solicitation of an offer to buy the notes or any other securities and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale of, the notes or any other securities in any jurisdiction in which such offer, solicitation or sale is unlawful.
About Sunoco LP
Sunoco LP (NYSE: SUN) is a master limited partnership that operates 1,346 convenience stores and retail fuel sites and distributes motor fuel to 7,898 convenience stores, independent dealers, commercial customers and distributors located in more than 30 states. Our parent – Energy Transfer Equity, L.P. (NYSE: ETE) – owns Sunoco's general partner and all of Sunoco's 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 Sunoco's current plans and expectations, including with respect to the notes offering, the 7-Eleven Transaction and the use of net proceeds therefrom, and involve a number 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 Sunoco's most recently filed annual report on Form 10-K, Sunoco's quarterly report on Form 10-Q for the quarter ended March 31, 2017 and in other filings made by Sunoco 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 in the future.
Contacts
Scott Grischow
Senior Director – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Derek Rabe, CFA
Senior Analyst – Investor Relations and Finance
(214) 840-5553, derek.rabe@sunoco.com
View original content with multimedia:http://www.prnewswire.com/news-releases/sunoco-lp-announces-private-offering-of-senior-notes-300578925.html
SOURCE Sunoco LP
Article Date
1/8/20187-Eleven, Inc. and Sunoco LP Provide Update On Pending Transaction
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
DALLAS, Dec. 5, 2017 /PRNewswire/ -- 7-Eleven, Inc. ("7-Eleven") and Sunoco LP (NYSE: SUN) ("Sunoco") are jointly committed to closing the value-creating transaction. The companies believe the transaction to be in the latter stages of the regulatory approval process with the Federal Trade Commission. Subject to completion of the regulatory process and customary closing conditions, 7-Eleven and Sunoco expect closing to occur in January 2018.
About Sunoco LP
Sunoco LP (NYSE: SUN) is a master limited partnership that operates 1,346 convenience stores and retail fuel sites and distributes motor fuel to 7,898 convenience stores, independent dealers, commercial customers and distributors located in 30 states. Our parent -- Energy Transfer Equity, L.P. (NYSE: ETE) -- owns SUN's general partner and incentive distribution rights.
The information contained in this press release is available on 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, including statements with respect to SUN'S ability to consummate the 7-Eleven transaction and/or the timing of such transaction. Forward-looking statements may be identified by the use of the words "anticipates," "expects," "intends," "plans," "should," "could," "would," "may," "will," "believes," "estimates," "potential," "opportunity," "value-creating," "designed," "predict," "seek," "ongoing," "increases" or "continue" and variations or similar expressions. 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 SUN's Annual Report on Form 10-K and other documents filed from time to time with the Securities and Exchange Commission. SUN undertakes no obligation to update or revise any forward-looking statement to reflect new information or events.
Contacts
Investors:
Scott Grischow, Senior Director – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Derek Rabe, Senior Analyst – Investor Relations and Finance
(214) 840-5553, derek.rabe@sunoco.com
Media:
Alyson Gomez, Director – Communications
(469) 646-1758, alyson.gomez@sunoco.com
View original content with multimedia:http://www.prnewswire.com/news-releases/7-eleven-inc-and-sunoco-lp-provide-update-on-pending-transaction-300567169.html
SOURCE Sunoco LP
Article Date
12/5/2017Sunoco LP Provides Update on West Texas Retail Divestiture Process
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
DALLAS, Dec. 5 , 2017 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("Sunoco" or the "Partnership") today announced the Partnership has signed definitive agreements with a commission agent to operate the approximately 207 retail sites located in certain West Texas, Oklahoma and New Mexico markets, which were not included in the previously announced transaction with 7-Eleven, Inc. Conversion of these sites to the commission agent is expected to occur in the first quarter of 2018.
Presentation materials discussing this update are available on the company's website at www.sunocolp.com in the Investor Relations section under Events & Presentations.
About Sunoco LP
Sunoco LP (NYSE: SUN) is a master limited partnership that operates 1,346 convenience stores and retail fuel sites and distributes motor fuel to 7,898 convenience stores, independent dealers, commercial customers and distributors located in 30 states. Our parent -- Energy Transfer Equity, L.P. (NYSE: ETE) -- owns SUN's general partner and incentive distribution rights.
The information contained in this press release is available on 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, including statements with respect to SUN'S ability to consummate the 7-Eleven transaction and/or the timing of such transaction. Forward-looking statements may be identified by the use of the words "anticipates," "expects," "intends," "plans," "should," "could," "would," "may," "will," "believes," "estimates," "potential," "opportunity," "value-creating," "designed," "predict," "seek," "ongoing," "increases" or "continue" and variations or similar expressions. 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 SUN's Annual Report on Form 10-K and other documents filed from time to time with the Securities and Exchange Commission. SUN undertakes no obligation to update or revise any forward-looking statement to reflect new information or events.
Contacts
Investors:
Scott Grischow, Senior Director – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Derek Rabe, Senior Analyst – Investor Relations and Finance
(214) 840-5553, derek.rabe@sunoco.com
Media:
Alyson Gomez, Director – Communications
(469) 646-1758, alyson.gomez@sunoco.com
View original content with multimedia:http://www.prnewswire.com/news-releases/sunoco-lp-provides-update-on-west-texas-retail-divestiture-process-300567156.html
SOURCE Sunoco LP
Article Date
12/5/201711/6/2017 - Sunoco LP Announces Joe Kim As CEO
Sunoco LP Announces Joe Kim As CEO
Source: PR Newswire
DALLAS, Nov. 6, 2017 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("Sunoco" or the "Partnership") announced today that Joe Kim has been named chief executive officer of Dallas-based Sunoco LP, effective January 1, 2018. Kim has been serving as president and chief operating officer since June following the announcement that current Chief Executive Officer Bob Owens would retire from the Partnership as of December 31, 2017. Owens will continue to serve as a consultant to the Partnership through 2019.
Prior to his most recent appointment, Kim had been serving as executive vice president and chief development officer for Sunoco from October 2015 to June 2017, where he was responsible for all business development and merger and acquisition activities across the Partnership. During his service with Sunoco, Kim has provided a wealth of experience and expertise in strategic planning and execution of growth initiatives.
Previously, Kim held the position of chief operating officer at Pizza Hut, where he was responsible for management of all operations, with an emphasis on speed to market and restaurant excellence. Prior to that, he worked for fifteen years at Valero Energy where his most recent position was senior vice president of strategy and growth. He also held roles in field and franchise operations, strategic planning, merchandising, development and investor relations. He began his career with Arthur Andersen Business Consulting. Kim is a graduate of Trinity University in San Antonio, Texas with a bachelor's degree in business administration.
"I would like to extend a heartfelt thank you to Bob for his more than 20 years of service to Sunoco. We are grateful for his strategic leadership and wish him well as he embarks on his new endeavor," said Matthew S. Ramsey, chairman of the board of Sunoco LP. "Bob is leaving Sunoco in good hands. Joe is an exceptionally talented leader and he is poised to successfully complete the transformation of the Partnership from a retail-based business into the premier U.S. fuel supplier."
Sunoco LP (NYSE: SUN) is a master limited partnership that operates 1,346 convenience stores and retail fuel sites and distributes motor fuel to 7,898 convenience stores, independent dealers, commercial customers and distributors located in 30 states. Our parent -- Energy Transfer Equity, L.P. (NYSE: ETE) -- owns SUN's general partner and incentive distribution rights. For more information visit 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.
Sunoco LP
Investors:
Scott Grischow, Senior Director – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Derek Rabe, CFA, Senior Analyst – Investor Relations and Finance
(214) 840-5553, derek.rabe@sunoco.com
Media:
Alyson Gomez, Director – Communications
(469) 646-1758, alyson.gomez@sunoco.com
View original content with multimedia:http://www.prnewswire.com/news-releases/sunoco-lp-announces-joe-kim-as-ceo-300549737.html
SOURCE Sunoco LP
Article Date
11/6/201710/26/2017 - Sunoco LP Maintains Quarterly Distribution
Sunoco LP Maintains Quarterly Distribution
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
DALLAS, Oct. 26, 2017 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("SUN") announced that the Board of Directors of its general partner declared a quarterly distribution for the third quarter of 2017 of $0.8255 per common unit, which corresponds to $3.3020 per common unit on an annualized basis. The distribution will be paid on November 14, 2017 to common unitholders of record on November 7, 2017.
SUN will release its third quarter 2017 financial and operating results after the market closes on Tuesday, November 7. In conjunction with the news release, management will hold a conference call on Wednesday, November 8, at 9:30 a.m. Central Time (10:30 a.m. Eastern Time) to discuss SUN's results.
|
By Phone: |
Dial 201-389-0877 at least 10 minutes before the call. A replay will be available through November 15 by dialing 201-612-7415 and using the conference ID 13672811#. |
|
By Webcast: |
Connect to the webcast via the Events and Presentations pages of SUN's Investor Relations website at www.SunocoLP.com. Please log in at least 10 minutes in advance to register and download any necessary software. A replay will be available shortly after the call. |
About Sunoco LP
Sunoco LP (NYSE: SUN) is a master limited partnership that operates approximately 1,346 convenience stores and retail fuel sites and distributes motor fuel to approximately 7,898 convenience stores, independent dealers, commercial customers and distributors located in 30 states. Our parent -- Energy Transfer Equity, L.P. (NYSE: ETE) -- owns SUN's general partner and incentive distribution rights.
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 SUN's distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, SUN's distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.
Contacts
Scott Grischow
Senior Director – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Derek Rabe, CFA
Senior Analyst – Investor Relations and Finance
(214) 840-5553, derek.rabe@sunoco.com
View original content with multimedia:http://www.prnewswire.com/news-releases/sunoco-lp-maintains-quarterly-distribution-300544501.html
SOURCE Sunoco LP
Article Date
10/26/2017Sunoco LP and Sunoco Finance Corp. Announce Termination of Consent Solicitations Relating to Their Senior Notes due 2021 and 2023 and Reaffirm Expected Transaction Timing
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
DALLAS, Oct. 18, 2017 /PRNewswire/ -- Sunoco LP ("Sunoco") and Sunoco Finance Corp. (collectively, the "Issuers") today announced the termination of the previously announced consent solicitations (the "Consent Solicitations") to amend the indentures governing their $800 million aggregate principal amount of 6.250% Senior Notes due 2021 (CUSIP No. 86765LAF4) (the "2021 Notes") and their $800 million aggregate principal amount of 6.375% Senior Notes due 2023 (CUSIP No. 86765LAG2) (the "2023 Notes" and, together with the 2021 Notes, the "Notes").
The Consent Solicitations are being terminated in accordance with the terms of the Consent Solicitation Statement dated October 10, 2017 (the "Consent Solicitation Statement"). As a result of the termination, no consent fees will be paid or become payable to holders of the Notes who have delivered consents. All consents previously delivered and not revoked will be of no effect, and the indentures governing the Notes will not be amended and will remain in their present form.
The termination of the Consent Solicitations does not impact the Issuers' notice of redemption with respect to all $600 million outstanding principal amount of their 5.500% Senior Notes due 2020 (the "2020 Notes"), which redemption is subject to the closing of the 7-Eleven transaction. Sunoco will redeem the 2020 Notes at a price of 102.750% of the principal amount thereof, plus accrued and unpaid interest, to the redemption date.
Sunoco intends to redeem the 2021 Notes and the 2023 Notes at a make-whole price prior to the closing of the 7-Eleven transaction in order to satisfy one of the closing conditions under the 7-Eleven purchase agreement. Sunoco believes this will have no impact on the timing of the transaction and no meaningful impact on the expected net proceeds, and that it has access to near-term financing options in the current market. Sunoco continues to anticipate closing the 7-Eleven transaction within the fourth quarter of 2017, subject to regulatory clearances.
This press release is neither an offer to purchase or sell securities, nor a solicitation of an offer to purchase or sell securities, including the Notes.
Questions about the termination of the Consent Solicitations may be directed to Ipreo LLC, the Information and Tabulation Agent, at (888) 593-9546 (toll free) or (212) 849-3880 (banks and brokers).
About Sunoco
Sunoco LP (NYSE: SUN) is a master limited partnership that operates 1,353 convenience stores and retail fuel sites and distributes motor fuel to 7,937 convenience stores, independent dealers, commercial customers and distributors located in 30 states. Our parent -- Energy Transfer Equity, L.P. (NYSE: ETE) -- owns SUN's general partner and incentive distribution rights.
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, including statements with respect to our ability to consummate the 7-Eleven transaction, the redemption of the Notes and the 2020 Notes and the timing of such transactions. 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 Sunoco's Annual Report on Form 10-K and other documents filed from time to time with the Securities and Exchange Commission. Sunoco 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
Contacts
Investors:
Scott Grischow, Senior Director – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Derek Rabe, Senior Analyst – Investor Relations and Finance
(214) 840-5553, derek.rabe@sunoco.com
Media:
Alyson Gomez, Director – Communications
(469) 646-1758, alyson.gomez@sunoco.com
Jeamy Molina, Senior Manager – PR & Communications
(469) 646-1776, jeamy.molina@sunoco.com
View original content with multimedia:http://www.prnewswire.com/news-releases/sunoco-lp-and-sunoco-finance-corp-announce-termination-of-consent-solicitations-relating-to-their-senior-notes-due-2021-and-2023-and-reaffirm-expected-transaction-timing-300539451.html
SOURCE Sunoco LP
Article Date
10/18/2017Sunoco LP and Sunoco Finance Corp. Announce Commencement of Consent Solicitations Relating to its 6.250% Senior Notes due 2021 and 6.375% Senior Notes due 2023
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
DALLAS, Oct. 10, 2017 /PRNewswire/ -- Sunoco LP ("Sunoco") and Sunoco Finance Corp. (collectively, the "Issuers") today announced the commencement of consent solicitations (the "Consent Solicitations") to amend the indentures governing their $800 million aggregate principal amount of 6.250% Senior Notes due 2021 (CUSIP No. 86765LAF4) (the "2021 Notes") and their $800 million aggregate principal amount of 6.375% Senior Notes due 2023 (CUSIP No. 86765LAG2) (the "2023 Notes" and together with the 2021 Notes, the "Notes").
The Consent Solicitations are being made in accordance with the terms and subject to the conditions set forth in a Consent Solicitation Statement dated October 10, 2017 (the "Consent Solicitation Statement"), to holders of record as of October 6, 2017 (collectively, the "Holders"). The Consent Solicitations will expire at 5:00 p.m., New York City time, on October 18, 2017, unless extended (the "Expiration Date").
The purpose of the Consent Solicitations is to permit the consummation of Sunoco's pending sale of approximately 1,112 company-operated retail fuel outlets to 7-Eleven, Inc. and the sale of Sunoco's remaining company-operated retail assets located in the continental United States (the "Retail Divestiture"). The proposed amendments (the "Proposed Amendments") to the indentures would also eliminate any requirement to make a change of control offer at 101% of par or an asset sale offer at 100% of par as a result of the consummation of the Retail Divestiture.
Holders who validly deliver and do not validly revoke consents prior to the Expiration Date will receive a fee of $10.00 in cash per $1,000.00 principal amount of Notes, subject to the receipt of the Requisite Consents described below. The Proposed Amendments will also prohibit the Issuers from optionally redeeming the 2021 Notes and the 2023 Notes until April 15, 2019 and April 1, 2020, respectively, and provide holders the right to require the Issuers to repurchase the 2021 Notes and the 2023 Notes at 101.563% and 101.594% of the principal amount thereof, respectively, plus accrued and unpaid interest, if any, on April 15, 2019, in the case of the 2021 Notes and on April 1, 2020, in the case of the 2023 Notes.
The consent fee will be paid to consenting holders promptly after the Expiration Date, subject to the receipt of consents from holders of at least a majority in aggregate principal amount of the outstanding Notes of a series (the "Requisite Consents") prior to the Expiration Date, the execution and effectiveness of supplemental indentures effecting the Proposed Amendments, and other customary conditions described in the Consent Solicitation Statement. Holders of Notes that do not consent prior to the Expiration Date will not receive a consent fee.
Sunoco also announced today that it has issued a notice of redemption with respect to all $600 million outstanding principal amount of their 5.500% Senior Notes due 2020 (the "2020 Notes"), subject to the closing of the 7-Eleven transaction. Sunoco will redeem the 2020 Notes at a price of 102.750% of the principal amount thereof, plus accrued and unpaid interest to the redemption date. Sunoco expects the closing of the 7-Eleven transaction to occur in the fourth quarter of 2017, subject to the satisfaction or waiver of customary closing conditions.
Sunoco has retained BofA Merrill Lynch to act as Solicitation Agent in connection with the Consent Solicitations. Questions about the Consent Solicitation may be directed to BofA Merrill Lynch at (888) 292-0070 (toll free) or (980) 388-4813 (direct). Requests for copies of the Consent Solicitation Statement and related documents, and assistance relating to the procedures for delivering consents, may be obtained by contacting Ipreo LLC, the Information and Tabulation Agent, at (888) 593-9546 (toll free) or (212) 849-3880 (banks and brokers).
This press release is neither an offer to purchase or sell securities, a solicitation of an offer to purchase or sell securities, nor a solicitation of consents, and no recommendation is made as to whether or not holders of Notes should consent to the adoption of the Proposed Amendments. The Consent Solicitation is not being made to holders of Notes in any jurisdiction in which the making thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction.
About Sunoco
Sunoco LP (NYSE: SUN) is a master limited partnership that operates 1,353 convenience stores and retail fuel sites and distributes motor fuel to 7,937 convenience stores, independent dealers, commercial customers and distributors located in 30 states. Our parent -- Energy Transfer Equity, L.P. (NYSE: ETE) -- owns SUN's general partner and incentive distribution rights.
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, including statements with respect to our ability to consummate the Retail Divestiture, Consent Solicitations and redemption of 2020 Notes and the timing of such transactions. 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.
Contacts
Investors:
Scott Grischow, Senior Director – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Derek Rabe, Senior Analyst – Investor Relations and Finance
(214) 840-5553, derek.rabe@sunoco.com
Media:
Alyson Gomez, Director – Communications
(469) 646-1758, alyson.gomez@sunoco.com
Jeamy Molina, Senior Manager – PR & Communications
(469) 646-1776, jeamy.molina@sunoco.com
View original content with multimedia:http://www.prnewswire.com/news-releases/sunoco-lp-and-sunoco-finance-corp-announce-commencement-of-consent-solicitations-relating-to-its-6250-senior-notes-due-2021-and-6375-senior-notes-due-2023-300534443.html
SOURCE Sunoco LP
Article Date
10/10/2017Energy Transfer Files Federal Lawsuit Against Greenpeace International, Greenpeace Inc., Greenpeace Fund, Inc., BankTrack And Earth First! For Violation Of Federal And State Racketeering Statutes
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
DALLAS, Aug. 22, 2017 /PRNewswire/ -- Energy Transfer Equity, L.P. (NYSE: ETE) and Energy Transfer Partners, L.P. (NYSE: ETP) today filed a federal lawsuit in the United States District Court for the District of North Dakota against Greenpeace International, Greenpeace Inc., Greenpeace Fund, Inc., BankTrack, Earth First!, and other organizations and individuals. The Complaint, which is Index number 1:17-cv-00173, alleges that this group of co-conspirators (the "Enterprise") manufactured and disseminated materially false and misleading information about Energy Transfer and the Dakota Access Pipeline ("DAPL") for the purpose of fraudulently inducing donations, interfering with pipeline construction activities and damaging Energy Transfer's critical business and financial relationships. The Complaint also alleges that the Enterprise incited, funded, and facilitated crimes and acts of terrorism to further these objectives. It further alleges claims that these actions violated federal and state racketeering statutes, defamation, and constituted defamation and tortious interference under North Dakota law.
The alleged Enterprise is comprised of rogue environmental groups and militant individuals who employ a pattern of criminal activity and a campaign of misinformation for purposes of increasing donations and advancing their political or business agendas. The Complaint describes the Enterprise's misinformation campaign that aggressively targeted Energy Transfer's critical business relationships, including the financing sources for DAPL and Energy Transfer's other infrastructure projects, by publicly demanding these financial institutions sever ties with Energy Transfer or face crippling boycotts and other illegal attacks.
The Complaint asserts that the attacks were calculated and thoroughly irresponsible, causing enormous harm to people and property along the pipeline's route. Dakota Access was a legally permitted project that underwent nearly three years of rigorous environmental review and for this reason, Energy Transfer believes it has an obligation to its shareholders, partners, stakeholders and all those negatively impacted by the violence and destruction intentionally incited by the defendants to file this lawsuit.
The DAPL misinformation campaign was predicated on a series of false, alarmist, and sensational claims that plaintiffs:
The Enterprise also claimed that the pipeline will inevitably result in catastrophic oil spills, poisoned water, and massive climate change, while ironically, members of the Enterprise deliberately and maliciously attempted to cut holes in the pipeline with torches which, if successful, would have resulted in significant environmental damage and possible loss of life.
The Enterprise supported these false claims with manufactured evidence, including phony GPS coordinates purporting to show the existence of cultural and religious artifacts along DAPL's corridor, and sham affidavits submitted in court.
In addition to its misinformation campaign, the Enterprise directly and indirectly funded eco-terrorists on the ground in North Dakota. These groups formed their own outlaw camp among peaceful protestors gathered near Lake Oahe, and exploited the peaceful activities of these groups to further the Enterprise's corrupt agenda by inducing and directing violent and destructive attacks against law enforcement as well as Plaintiffs' property and personnel. The Enterprise then flagrantly manipulated these "made-for-TV" events to raise more funds for the Enterprise. These terrorist groups also funded their activities and the Enterprise by using donations to fund a lucrative drug trafficking scheme inside the camps.
Other illegal activities directed at Energy Transfer and its executives that are alleged in the Complaint include persistent attempted cyber-attacks and telephonic and electronic threats to the physical safety of executives.
The Enterprise has conceded that their campaign has inflicted "hundreds of millions of dollars of damage to the Company," including increased costs of financing resulting from the Enterprise's interference with the Company's financial relationships and mitigation costs in response to the Enterprise's illegal and malicious campaign. These damages, as well as the harm to the Company's reputation, resulting from the Enterprise's misinformation campaign, continue to this day. Energy Transfer is seeking compensatory damages in an amount to be proven at trial as well as treble and punitive damages.
Michael J. Bowe from Kasowitz, Benson & Torres LLP, the Company's counsel, is continuing the investigation into the Enterprise's campaign and practices. Anyone with information can provide it on a confidential basis by telephone at 212-506-1777. A website will be established to catalog information and publish progress reports on the case and, when necessary, to set the record straight as the facts warrant.
Energy Transfer Equity, L.P. (NYSE: ETE) is a master limited partnership that owns the general partner and 100% of the incentive distribution rights (IDRs) of Energy Transfer Partners, L.P. (NYSE: ETP) and Sunoco LP (NYSE: SUN). ETE also owns Lake Charles LNG Company. On a consolidated basis, ETE's family of companies owns and operates a diverse portfolio of natural gas, natural gas liquids, crude oil and refined products assets, as well as retail and wholesale motor fuel operations and LNG terminalling. For more information, visit the Energy Transfer Equity, L.P. website at energytransfer.com.
Energy Transfer Partners, L.P. (NYSE: ETP) is a master limited partnership that owns and operates one of the largest and most diversified portfolios of energy assets in the United States. Strategically positioned in all of the major U.S. production basins, ETP owns and operates a geographically diverse portfolio of complementary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, natural gas liquids (NGL) and refined product transportation and terminalling assets; NGL fractionation; and various acquisition and marketing assets. ETP's general partner is owned by Energy Transfer Equity, L.P. (NYSE: ETE). For more information, visit the Energy Transfer Partners, L.P. website at energytransfer.com.
View original content with multimedia:http://www.prnewswire.com/news-releases/energy-transfer-files-federal-lawsuit-against-greenpeace-international-greenpeace-inc-greenpeace-fund-inc-banktrack-and-earth-first-for-violation-of-federal-and-state-racketeering-statutes-300507851.html
SOURCE Energy Transfer Equity, L.P.
Article Date
8/22/2017Sunoco LP to Participate in Citi MLP/Midstream Infrastructure Conference
Source: PR Newswire
DALLAS, Aug. 16, 2017 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("SUN" or the "Partnership") today announced that its senior management will hold 1x1 meetings with institutional investors at the Citi MLP/Midstream Infrastructure Conference in Las Vegas on August 16-17.
Presentation materials to be used during these meetings are available on the company's website at www.sunocolp.com in the Investor Relations section under Events & Presentations.
Sunoco LP (NYSE: SUN) is a master limited partnership that operates 1,353 convenience stores and retail fuel sites and distributes motor fuel to 7,937 convenience stores, independent dealers, commercial customers and distributors located in 30 states. Our parent -- Energy Transfer Equity, L.P. (NYSE: ETE) -- owns SUN's general partner and incentive distribution rights.
Contacts
Investors:
Scott Grischow, Senior Director – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Derek Rabe, Senior Analyst – Investor Relations and Finance
(214) 840-5553, derek.rabe@sunoco.com
Media:
Alyson Gomez, Director – Communications
(469) 646-1758, alyson.gomez@sunoco.com
View original content with multimedia:http://www.prnewswire.com/news-releases/sunoco-lp-to-participate-in-citi-mlpmidstream-infrastructure-conference-300504924.html
SOURCE Sunoco LP
Article Date
8/16/2017Sunoco LP Announces Second Quarter Financial and Operating Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
DALLAS, Aug. 8, 2017 /PRNewswire/ --
Sunoco LP (NYSE: SUN) ("SUN" or the "Partnership") today announced financial and operating results for the three-month period ended June 30, 2017.
Revenue totaled $2.4 billion, an increase of 13.0 percent, compared to $2.1 billion in the second quarter of 2016. The increase was the result of the average wholesale selling price of fuel being 14 cents per gallon higher than last year and additional wholesale gallons sold.
Total gross profit declined to $165 million, compared to $227 million in the second quarter of 2016, as a result of lower wholesale motor fuel gross profits.
Income from continuing operations was $34 million, versus $57 million in the second quarter of 2016. General and administrative expenses increased $4 million from the second quarter of 2016 to $40 million driven by transaction-related expenses. Other operating expenses decreased $1 million from the second quarter of 2016 to $46 million.
Loss from discontinued operations, net of income taxes, was $256 million including a $320 million charge related to assets held for sale, versus income from discontinued operations, net of income taxes, of $15 million in the second quarter of 2016.
Net loss was $222 million, or ($2.53) per diluted unit, versus $72 million, or $0.53 per diluted unit, in the second quarter of 2016.
Adjusted EBITDA for the quarter totaled $220 million, compared with $164 million in the second quarter of 2016. The favorable year-over-year comparison reflects increased motor fuel gross profit cents per gallon and increased gallons sold.
Distributable Cash Flow, as adjusted, was $158 million, compared to $92 million a year ago. This year over year increase reflects higher Adjusted EBITDA and decreased maintenance capital spend partly offset by increased cash interest expense.
On a weighted-average basis, fuel margin for all gallons sold was 16.2 cents per gallon, compared to 13.8 cents per gallon in the second quarter of 2016. The 2.4 cents per gallon increase was primarily attributable to higher margins in both the retail and wholesale segments.
Net income for the wholesale segment was $5 million compared to $86 million a year ago due to the impact of inventory valuation adjustments. Adjusted EBITDA was $93 million, versus $80 million in the second quarter of last year. Total wholesale gallons sold were 1,374 million, compared to 1,316 million in the second quarter of 2016, an increase of 4.4 percent as a result of growth in the Southwest geography and contribution from the Emerge acquisition. This includes gallons sold to consignment stores and third-party customers, including independent dealers, fuel distributors and commercial customers. The Partnership earned 10.1 cents per gallon on these volumes, compared to 8.8 cents per gallon a year earlier.
Net loss for the retail segment was $227 million compared to a net loss of $14 million a year ago primarily due to a $320 million charge related to assets held for sale. Adjusted EBITDA was $127 million, versus $84 million in the second quarter of last year. Total retail gallons sold increased by 1.4 percent to 650 million gallons as a result of the increased gallons sold across SUN's operating geography. The Partnership earned 29.2 cents per gallon on these volumes, compared to 24.0 cents per gallon a year earlier.
Total merchandise sales increased by 5.4 percent from a year ago to $608 million(2), reflecting the contribution from third party acquisitions and new-to-industry locations opened during the last 12 months. Merchandise sales contributed $196 million of gross profit(3) with a retail merchandise margin of 32.1 percent, a decrease of 0.4 percentage points from the second quarter of 2016.
Same-store merchandise sales increased by 1.0 percent during the second quarter, reflecting growth across all of SUN's convenience store offerings. Same-store gallons decreased by 2.1 percent as a result of weakness throughout SUN's retail geography, particularly on the East Coast partly offset by increased same-store gallons sold in Hawaii. In the Texas oil producing regions, same-store merchandise sales increased by 8.5 percent, and same-store gallons increased 8.7 percent.
As of June 30, 2017, SUN operated 1,353 convenience stores and retail fuel outlets along the East Coast, in the Southwest and in Hawaii. Third party wholesale customers and sites totaled 7,937.
SUN's other recent accomplishments include the following:
SUN's segment results and other supplementary data are provided after the financial tables below.
Distribution
On July 26, 2017 the Board of Directors of SUN's general partner declared a distribution for the second quarter of 2017 of $0.8255 per unit, which corresponds to $3.3020 per unit on an annualized basis. The distribution will be paid on August 15 to unitholders of record on August 7.
SUN's distribution coverage ratio for the second quarter was 1.53 times. The distribution coverage ratio on a trailing 12-month basis was 1.03 times.
Liquidity
At June 30, SUN had borrowings against its revolving line of credit of $825 million and other long-term debt of $3.6 billion. Availability on the revolving credit facility after borrowings and letters of credit commitments was $655 million. In the second quarter of 2017, SUN did not issue any common units through its at-the-market equity program. The leverage ratio of debt to Adjusted EBITDA, calculated in accordance with SUN's credit agreements, including the revolving credit facility and Term Loan A, was 5.97 times at the end of the second quarter.
|
(1) |
Adjusted EBITDA and Distributable Cash Flow, as adjusted, 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, as adjusted, and a reconciliation to net income. |
|
(2) |
Includes $590 million in merchandise sales from discontinued operations. |
|
(3) |
Includes $191 million in merchandise gross profit from discontinued operations. |
Earnings Conference Call
Sunoco LP management will hold a conference call on Wednesday, August 9, at 9:30 a.m. CT (10:30 a.m. ET) to discuss second quarter results and recent developments. To participate, dial 201-389-0877 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 1,353 convenience stores and retail fuel sites and distributes motor fuel to 7,937 convenience stores, independent dealers, commercial customers and distributors located in 30 states. Our parent -- Energy Transfer Equity, L.P. (NYSE: ETE) -- owns SUN's general partner and incentive distribution rights.
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
(214) 840-5660, scott.grischow@sunoco.com
Derek Rabe, Senior Analyst – Investor Relations and Finance
(214) 840-5553, derek.rabe@sunoco.com
Media:
Alyson Gomez, Director – Communications
(469) 646-1758, alyson.gomez@sunoco.com
Jeamy Molina, Senior Manager – PR & Communications
(469) 646-1776, jeamy.molina@sunoco.com
– Financial Schedules Follow –
|
SUNOCO LP CONSOLIDATED BALANCE SHEETS (unaudited) | ||||||||
|
June 30, |
December 31, | |||||||
|
(in millions, except units) | ||||||||
|
Assets |
||||||||
|
Current assets: |
||||||||
|
Cash and cash equivalents |
$ |
97 |
$ |
99 |
||||
|
Accounts receivable, net |
398 |
539 |
||||||
|
Receivables from affiliates |
148 |
3 |
||||||
|
Inventories, net |
356 |
385 |
||||||
|
Other current assets |
91 |
72 |
||||||
|
Assets held for sale |
4,194 |
291 |
||||||
|
Total current assets |
5,284 |
1,389 |
||||||
|
Property and equipment, net |
1,155 |
1,188 |
||||||
|
Other assets: |
||||||||
|
Goodwill |
1,032 |
1,050 |
||||||
|
Intangible assets, net |
786 |
752 |
||||||
|
Other noncurrent assets |
54 |
64 |
||||||
|
Assets held for sale |
— |
4,258 |
||||||
|
Total assets |
$ |
8,311 |
$ |
8,701 |
||||
|
Liabilities and equity |
||||||||
|
Current liabilities: |
||||||||
|
Accounts payable |
$ |
461 |
$ |
616 |
||||
|
Accounts payable to affiliates |
169 |
109 |
||||||
|
Advances from affiliates |
86 |
87 |
||||||
|
Accrued expenses and other current liabilities |
352 |
372 |
||||||
|
Current maturities of long-term debt |
5 |
5 |
||||||
|
Liabilities associated with assets held for sale |
68 |
— |
||||||
|
Total current liabilities |
1,141 |
1,189 |
||||||
|
Revolving line of credit |
825 |
1,000 |
||||||
|
Long-term debt, net |
3,537 |
3,509 |
||||||
|
Deferred tax liability |
601 |
643 |
||||||
|
Other noncurrent liabilities |
106 |
96 |
||||||
|
Liabilities associated with assets held for sale |
— |
68 |
||||||
|
Total liabilities |
6,210 |
6,505 |
||||||
|
Commitments and contingencies (Note 13) |
||||||||
|
Equity: |
||||||||
|
Limited partners: |
||||||||
|
Series A Preferred unitholder - affiliated |
300 |
— |
||||||
|
Common unitholders - public |
1,291 |
1,467 |
||||||
|
Common unitholders - affiliated |
510 |
729 |
||||||
|
Class C unitholders - held by subsidiary |
— |
— |
||||||
|
Total equity |
2,101 |
2,196 |
||||||
|
Total liabilities and equity |
$ |
8,311 |
$ |
8,701 |
||||
|
SUNOCO LP CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (unaudited) | |||||||||||||||
|
For the Three Months Ended |
For the Six Months Ended | ||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
(in millions, except unit and per unit amounts) | |||||||||||||||
|
Revenues: |
|||||||||||||||
|
Retail motor fuel |
$ |
39 |
$ |
46 |
$ |
77 |
$ |
91 |
|||||||
|
Wholesale motor fuel sales to third parties |
2,281 |
1,997 |
4,525 |
3,493 |
|||||||||||
|
Wholesale motor fuel sales to affiliates |
6 |
10 |
28 |
17 |
|||||||||||
|
Merchandise |
18 |
17 |
34 |
33 |
|||||||||||
|
Rental income |
22 |
22 |
44 |
43 |
|||||||||||
|
Other |
34 |
31 |
67 |
74 |
|||||||||||
|
Total revenues |
2,400 |
2,123 |
4,775 |
3,751 |
|||||||||||
|
Cost of sales: |
|||||||||||||||
|
Retail motor fuel cost of sales |
33 |
43 |
66 |
83 |
|||||||||||
|
Wholesale motor fuel cost of sales |
2,185 |
1,839 |
4,328 |
3,205 |
|||||||||||
|
Merchandise cost of sales |
13 |
12 |
24 |
23 |
|||||||||||
|
Other |
4 |
2 |
8 |
4 |
|||||||||||
|
Total cost of sales |
2,235 |
1,896 |
4,426 |
3,315 |
|||||||||||
|
Gross profit |
165 |
227 |
349 |
436 |
|||||||||||
|
Operating expenses: |
|||||||||||||||
|
General and administrative |
40 |
36 |
72 |
83 |
|||||||||||
|
Other operating |
46 |
47 |
95 |
85 |
|||||||||||
|
Rent |
12 |
12 |
25 |
24 |
|||||||||||
|
Loss (gain) on disposal of assets |
3 |
— |
4 |
(1) |
|||||||||||
|
Depreciation, amortization and accretion |
33 |
28 |
63 |
54 |
|||||||||||
|
Total operating expenses |
134 |
123 |
259 |
245 |
|||||||||||
|
Operating income |
31 |
104 |
90 |
191 |
|||||||||||
|
Interest expense, net |
54 |
44 |
111 |
64 |
|||||||||||
|
Income from continuing operations before income taxes |
(23) |
60 |
(21) |
127 |
|||||||||||
|
Income tax expense (benefit) |
(57) |
3 |
(70) |
5 |
|||||||||||
|
Income from continuing operations |
34 |
57 |
49 |
122 |
|||||||||||
|
Income (loss) from discontinued operations, net of income taxes |
(256) |
15 |
(270) |
12 |
|||||||||||
|
Net income (loss) and comprehensive income (loss) |
$ |
(222) |
$ |
72 |
$ |
(221) |
$ |
134 |
|||||||
|
Net income (loss) per limited partner unit - basic: |
|||||||||||||||
|
Continuing operations - common units |
$ |
0.04 |
$ |
0.38 |
$ |
(0.05) |
$ |
0.88 |
|||||||
|
Discontinued operations - common units |
(2.56) |
0.15 |
(2.72) |
0.13 |
|||||||||||
|
Net income (loss) - common units |
$ |
(2.52) |
$ |
0.53 |
$ |
(2.77) |
$ |
1.01 |
|||||||
|
Net income (loss) per limited partner unit - diluted: |
|||||||||||||||
|
Continuing operations - common units |
$ |
0.03 |
$ |
0.38 |
$ |
(0.05) |
$ |
0.88 |
|||||||
|
Discontinued operations - common units |
(2.56) |
0.15 |
(2.72) |
0.13 |
|||||||||||
|
Net income (loss) - common units |
$ |
(2.53) |
$ |
0.53 |
$ |
(2.77) |
$ |
1.01 |
|||||||
|
Weighted average limited partner units outstanding: |
|||||||||||||||
|
Common units - public (basic) |
53,715,598 |
49,588,960 |
53,289,557 |
49,588,960 |
|||||||||||
|
Common units - public (diluted) |
54,149,181 |
49,644,916 |
53,555,219 |
49,644,916 |
|||||||||||
|
Common units - affiliated (basic and diluted) |
45,750,826 |
45,750,826 |
45,750,826 |
41,807,600 |
|||||||||||
|
Cash distribution per unit |
$ |
0.8255 |
$ |
0.8255 |
$ |
1.6510 |
$ |
1.6428 |
|||||||
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, 2017 and 2016 and have been derived from our historical consolidated financial statements.
The accompanying footnotes to the following two key operating metrics tables can be found immediately preceding our capital spending discussion.
|
For the Three Months Ended June 30, | ||||||||||||||||||||||||
|
2017 |
2016 | |||||||||||||||||||||||
|
Wholesale |
Retail |
Total |
Wholesale |
Retail |
Total | |||||||||||||||||||
|
(dollars and gallons in millions, except motor fuel gross profit per gallon) | ||||||||||||||||||||||||
|
Revenues: |
||||||||||||||||||||||||
|
Retail motor fuel |
$ |
— |
$ |
39 |
$ |
39 |
$ |
— |
$ |
46 |
$ |
46 |
||||||||||||
|
Wholesale motor fuel sales to third parties |
2,281 |
— |
2,281 |
1,997 |
— |
1,997 |
||||||||||||||||||
|
Wholesale motor fuel sale to affiliates |
6 |
— |
6 |
10 |
— |
10 |
||||||||||||||||||
|
Merchandise |
— |
18 |
18 |
— |
17 |
17 |
||||||||||||||||||
|
Rental income |
19 |
3 |
22 |
19 |
3 |
22 |
||||||||||||||||||
|
Other |
12 |
22 |
34 |
6 |
25 |
31 |
||||||||||||||||||
|
Total revenues |
$ |
2,318 |
$ |
82 |
$ |
2,400 |
$ |
2,032 |
$ |
91 |
$ |
2,123 |
||||||||||||
|
Gross profit: |
||||||||||||||||||||||||
|
Retail motor fuel |
$ |
— |
$ |
6 |
$ |
6 |
$ |
— |
$ |
3 |
$ |
3 |
||||||||||||
|
Wholesale motor fuel |
102 |
— |
102 |
168 |
— |
168 |
||||||||||||||||||
|
Merchandise |
— |
5 |
5 |
— |
5 |
5 |
||||||||||||||||||
|
Rental and other |
27 |
25 |
52 |
24 |
27 |
51 |
||||||||||||||||||
|
Total gross profit |
$ |
129 |
$ |
36 |
$ |
165 |
$ |
192 |
$ |
35 |
$ |
227 |
||||||||||||
|
Net income (loss) and comprehensive income (loss) from continuing operations |
5 |
29 |
34 |
86 |
(29) |
57 |
||||||||||||||||||
|
Net income (loss) and comprehensive income (loss) from discontinued operations |
— |
(256) |
(256) |
— |
15 |
15 |
||||||||||||||||||
|
Net income (loss) and comprehensive income (loss) |
$ |
5 |
$ |
(227) |
$ |
(222) |
$ |
86 |
$ |
(14) |
$ |
72 |
||||||||||||
|
Adjusted EBITDA (2) |
$ |
93 |
$ |
127 |
$ |
220 |
$ |
80 |
$ |
84 |
$ |
164 |
||||||||||||
|
Distributable cash flow, as adjusted (2) |
$ |
158 |
$ |
92 |
||||||||||||||||||||
|
Operating Data: |
||||||||||||||||||||||||
|
Total motor fuel gallons sold: |
||||||||||||||||||||||||
|
Retail (3) |
650 |
650 |
641 |
641 |
||||||||||||||||||||
|
Wholesale (3) |
1,374 |
1,374 |
1,316 |
1,316 |
||||||||||||||||||||
|
Motor fuel gross profit cents per gallon (1): |
||||||||||||||||||||||||
|
Retail (3) |
29.2 |
¢ |
29.2 |
¢ |
24.0 |
¢ |
24.0 |
¢ | ||||||||||||||||
|
Wholesale (3) |
10.1 |
¢ |
10.1 |
¢ |
8.8 |
¢ |
8.8 |
¢ | ||||||||||||||||
|
Volume-weighted average for all gallons (3) |
16.2 |
¢ |
13.8 |
¢ | ||||||||||||||||||||
|
Retail merchandise margin (3) |
32.1 |
% |
32.5% |
|||||||||||||||||||||
The following table presents a reconciliation of net income to EBITDA, Adjusted EBITDA and distributable cash flow for the three months ended June 30, 2017 and 2016:
|
For the Three Months Ended June 30, | ||||||||||||||||||||||||
|
2017 |
2016 | |||||||||||||||||||||||
|
Wholesale |
Retail |
Total |
Wholesale |
Retail |
Total | |||||||||||||||||||
|
(in millions) | ||||||||||||||||||||||||
|
Net income (loss) and comprehensive income (loss) |
$ |
5 |
$ |
(227) |
$ |
(222) |
$ |
86 |
$ |
(14) |
$ |
72 |
||||||||||||
|
Depreciation, amortization and accretion (3) |
37 |
2 |
39 |
18 |
61 |
79 |
||||||||||||||||||
|
Interest expense, net (3) |
14 |
44 |
58 |
17 |
34 |
51 |
||||||||||||||||||
|
Income tax expense (benefit) (3) |
(1) |
(22) |
(23) |
— |
1 |
1 |
||||||||||||||||||
|
EBITDA |
$ |
55 |
$ |
(203) |
$ |
(148) |
$ |
121 |
$ |
82 |
$ |
203 |
||||||||||||
|
Non-cash compensation expense (3) |
1 |
4 |
5 |
2 |
1 |
3 |
||||||||||||||||||
|
Loss on disposal of assets and impairment charge (3) |
2 |
324 |
326 |
— |
2 |
2 |
||||||||||||||||||
|
Unrealized gain on commodity derivatives (3) |
5 |
— |
5 |
6 |
— |
6 |
||||||||||||||||||
|
Inventory adjustments (3) |
30 |
2 |
32 |
(49) |
(1) |
(50) |
||||||||||||||||||
|
Adjusted EBITDA |
$ |
93 |
$ |
127 |
$ |
220 |
$ |
80 |
$ |
84 |
$ |
164 |
||||||||||||
|
Cash interest expense (3) |
53 |
48 |
||||||||||||||||||||||
|
Income tax expense (current) (3) |
2 |
— |
||||||||||||||||||||||
|
Maintenance capital expenditures (3) |
7 |
24 |
||||||||||||||||||||||
|
Distributable cash flow |
$ |
158 |
$ |
92 |
||||||||||||||||||||
|
Transaction-related expenses (3) |
8 |
— |
||||||||||||||||||||||
|
Series A Preferred distribution |
(8) |
— |
||||||||||||||||||||||
|
Distributable cash flow, as adjusted |
$ |
158 |
$ |
92 |
||||||||||||||||||||
|
_______________________________ | |
|
(1) |
Excludes the impact of inventory fair value adjustments consistent with the definition of Adjusted EBITDA. |
|
(2) |
EBITDA is defined as earnings before net interest expense, income taxes, depreciation, amortization and accretion expense. Adjusted EBITDA further adjusts EBITDA to reflect certain other non-recurring and non-cash items. We define Adjusted EBITDA to also include adjustments for 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 long-term debt that is paid on a semi-annual basis, Series A Preferred distribution, 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 one should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. Some of these limitations include: | |
|
| |
|
(3) |
Includes amounts from discontinued operations. |
Capital Spending
SUN's gross capital expenditures for the second quarter were $33 million, which included $26 million for growth capital and $7 million for maintenance capital.
Excluding acquisitions, SUN expects to spend approximately $150 million on growth capital and approximately $80 million on maintenance capital for the full year 2017.
Growth capital spending includes the rebuilding of locations SUN is operating on the Indiana Toll Road.
View original content with multimedia:http://www.prnewswire.com/news-releases/sunoco-lp-announces-second-quarter-financial-and-operating-results-300501590.html
SOURCE Sunoco LP
Article Date
8/8/2017Sunoco Free Fuel 5000 Returns For Thirteenth Year
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
DALLAS, June 29, 2017 /PRNewswire/ -- For the thirteenth consecutive year, the Sunoco Free Fuel 5000 sweepstakes is returning to reward loyal Sunoco customers, race fans and Sunoco credit card holders nationwide with $5,000 in free fuel. Here are some of our favorite stories from last year's Grand Prize winners from Florida, Alabama, Ohio, Texas and Pennsylvania:
"This is the thirteenth year of the Sunoco Free Fuel 5000 sweepstakes, and every year the stories of how our loyal customers plan to use their fuel never ceases to amaze us," said Mark Burford, Senior Director, Marketing. "We've heard from past winners who will visit faraway family members, take dream vacations and even fulfill volunteer responsibilities. Sunoco is proud to award $5000 in free fuel to our Grand Prize winners and Instant Winner prizes to thousands spotted this year."
Official spotters will be visiting all Sunoco stations and select grocery partner locations during July and August to award Sunoco gift cards to drivers seen with the iconic Sunoco decal on their car. Customers spotted will be entered for a chance to win the $5,000 Grand Prize. There are three ways to get your Sunoco decal stop by any participating Sunoco station to pick one up for free; request a decal on Facebook; or mail a stamped and self-addressed envelope with a request to the address provided on the Sunoco website.
Three additional credit card users from the Sunoco Rewards, Sunoco SunTrak and Sunoco Universal Fleet loyalty programs will be randomly selected for the Grand Prize.
To learn more about the 2017 Sunoco UltraTech™ Free Fuel 5000 Sweepstakes or read the official rules, visit www.sunoco.com/freefuel5000
About the Sunoco UltraTech™ Free Fuel 5000 Sweepstakes
For the thirteenth year in row, Sunoco is rewarding loyal customers and race fans with the chance to win $5,000 in free Sunoco UltraTech™ fuel. With over 100,000 customers spotted at retail since the promotion's inception and millions of decals on cars across America, Free Fuel 5000 takes the brand to places near and far, and gives all customers more reason to fill up at a Sunoco station. Sunoco looks forward to surprising thousands spotted with decals at gas stations and participating grocery locations with the Grand Prize of $5000 in Sunoco UltraTech™ fuel.
About Sunoco LP
(NYSE: SUN) is a master limited partnership that operates 1,355 convenience stores and retail fuel sites and distributes motor fuel to 7,825 convenience stores, independent dealers, commercial customers and distributors located in 30 states. SUN's general partner is a wholly owned subsidiary of Energy Transfer Equity, L.P. (NYSE: ETE).
Media Contacts
Jeamy Molina
Phone: 469-646-1776
jeamy.molina@sunoco.com
Kelly Jackson
Phone: 717-991-3249
kjackson@a-g.com
SOURCE Sunoco LP
Article Date
6/29/2017Sunoco LP Announces Bob Owens, President And Chief Executive Officer To Retire, Joe Kim Named President And COO
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
DALLAS, June 22, 2017 /PRNewswire/ -- Sunoco LP (NYSE: SUN) announced today that Robert "Bob" W. Owens, president and chief executive officer has announced his intention to retire from the Partnership as of December 31, 2017, after more than 20 years with Sunoco and its predecessors. Owens, who joined Sunoco Inc. in 1997, has been serving as president and CEO since 2012.
Effective immediately, Joe Kim, who has been serving as executive vice president and chief development officer for Sunoco since 2015, has been appointed president and chief operating officer. Owens will continue as CEO until his retirement and will then serve as a consultant to the Partnership through 2019.
Sunoco executives Cynthia Archer, executive vice president and chief marketing officer and Boyd Foster, executive vice president manufacturing and distribution are also retiring from the Partnership effective December 31, 2017.
"We thank Bob for his many years of strategic leadership, which has resulted in an impressive list of accomplishments for both the employees and the unit holders of Sunoco and wish him and his family the best," said Kelcy Warren, Chairman of Energy Transfer Equity, the entity that owns the general partner of Sunoco. "While we are sad to see Bob go, we are excited for the next generation of leadership at Sunoco to take on larger roles. Joe is an exceptionally talented leader and he has played a significant role in the planned transformation of the Partnership from a retail-based business into a premier nationwide fuel supplier."
"Additionally, the appointment of Joe as president and COO and Bob continuing as CEO through year-end will ensure an orderly transition as we move through the divestment of our retail operations during the coming months," added Warren.
Owens joined Sunoco as senior vice president of marketing where he was responsible for Sunoco's retail network, wholesale marketing and transportation operations, and commercial supply and trading activities for crude oil, refined products, and petrochemicals. Prior to joining Sunoco, he held executive positions with Ultramar Diamond Shamrock Corporation, Amerada Hess Corporation and Mobil Oil Corporation. Owens is a graduate of California Polytechnic State University with a bachelor's degree in business administration and an MBA from the Kellogg Graduate School of Management at Northwestern University.
Kim has been responsible for the Partnership's strategic development and planning overseeing both business development and Sunoco's real estate portfolio. Prior to joining Sunoco, he held various executive positions, including chief operating officer for Pizza Hut and senior vice president- retail strategy and growth for Valero Energy. Kim began his career with Arthur Andersen. He is a graduate of Trinity University with a bachelor's degree in business administration.
Sunoco LP (NYSE: SUN) is a master limited partnership that operates 1,355 convenience stores and retail fuel sites and distributes motor fuel to 7,825 convenience stores, independent dealers, commercial customers and distributors located in 30 states. SUN's general partner is a wholly owned subsidiary of Energy Transfer Equity, L.P. (NYSE: ETE). For more information visit sunocolp.com.
Energy Transfer Equity, L.P. (NYSE: ETE) is a master limited partnership that owns the general partner and 100% of the incentive distribution rights (IDRs) of Sunoco LP. For more information visit energytransfer.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.
Sunoco LP
Investors:
Scott Grischow, Senior Director – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Patrick Graham, Senior Analyst – Investor Relations and Finance
(214) 840-5678, patrick.graham@sunoco.com
Media:
Alyson Gomez, Director – Communications
(469) 646-1758, alyson.gomez@sunoco.com
Energy Transfer
Investor Relations:
Helen Ryoo, Lyndsay Hannah, Brent Ratliff, 214-981-0795
Media Relations:
Vicki Granado, 214-840-5820
SOURCE Sunoco LP
Article Date
6/22/20176/14/2017 - Sunoco LP (Stripes Stores and APlus) Raise More Than $1.6 Million For Children's Miracle Network Hospitals®
Sunoco LP (Stripes Stores and APlus) Raise More Than $1.6 Million For Children's Miracle Network Hospitals®
Source: PR Newswire
DALLAS, June 14, 2017 /PRNewswire/ -- Donations through in-store Miracle Balloon Fundraising Campaigns at Stripes and APlus stores helped raise more than $1.6 million dollars for Children's Miracle Network Hospitals (CMN Hospitals) around the country.
Since 2000, Stripes and APlus, owned and operated by Sunoco LP, have partnered with CMN Hospitals to raise more than $12 million for sick and injured kids.
"Children's Miracle Network Hospitals are tremendous assets in our communities and it is an incredible opportunity to work alongside of them," said Eduardo Pereda, VP of Convenience Brands. "We are extremely grateful for the generosity of our customers and team members who raised more than $1.6 million to help continue to support children and their families during some of the most difficult times in their lives."
Like all in-store CMN Hospitals fundraisers, 100 percent of funds raised from Sunoco LP campaigns will benefit the community in which they were raised. Those contributions help make miracles happen by funding vital medical care, equipment and therapy programs that save and improve the lives of more than 10 million sick and injured children each year.
"It's partners like Sunoco LP that really make all the difference in helping kids get the care they need," said John Lauck, president and CEO, Children's Miracle Network Hospitals. "We are grateful to all the Stripes and APlus employees and customers who gave so generously during this year's campaign."
About Sunoco LP
(NYSE: SUN) is a master limited partnership that operates 1,355 convenience stores and retail fuel sites and distributes motor fuel to 7,825 convenience stores, independent dealers, commercial customers and distributors located in 30 states. SUN's general partner is a wholly owned subsidiary of Energy Transfer Equity, L.P. (NYSE: ETE).
About Children's Miracle Network Hospitals
Children's Miracle Network Hospitals® raises funds and awareness for 170 member hospitals that provide 32 million treatments each year to kids across the U.S. and Canada. Donations stay local to fund critical treatments and healthcare services, pediatric medical equipment and charitable care. Since 1983, Children's Miracle Network Hospitals has raised more than $5 billion, most of it $1 at a time through the charity's Miracle Balloon icon. Its various fundraising partners and programs support the nonprofit's mission to save and improve the lives of as many children as possible. Find out why children's hospitals need community support, and learn about your member hospital, at CMNHospitals.org and facebook.com/CMNHospitals.
|
Contact: |
Jeamy Molina |
|
469.646.1776 | |
|
Contact: |
Emily Cawley |
|
801-214-6618 |
SOURCE Sunoco LP
Article Date
6/14/2017Sunoco LP to Participate in Deutsche Bank Conference
Source: PR Newswire
DALLAS, May 9, 2017 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("SUN" or the "Partnership") today announced that its senior management will hold 1x1 meetings with institutional investors at the 2017 MLP, Midstream and Natural Gas Conference hosted by Deutsche Bank in New York City.
Presentation materials to be used during these meetings are available on the company's website at www.sunocolp.com in the Investor Relations section under Events & Presentations.
Sunoco LP (NYSE: SUN) is a master limited partnership that operates 1,355 convenience stores and retail fuel sites and distributes motor fuel to 7,825 convenience stores, independent dealers, commercial customers and distributors located in 30 states. SUN's general partner is a wholly owned subsidiary of Energy Transfer Equity, L.P. (NYSE: ETE).
Contacts
Investors:
Scott Grischow, Senior Director – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Patrick Graham, Senior Analyst – Investor Relations and Finance
(214) 840-5678, patrick.graham@sunoco.com
Media:
Alyson Gomez, Director – Communications
(469) 646-1758, alyson.gomez@sunoco.com
SOURCE Sunoco LP
Article Date
5/9/2017Sunoco LP Announces First Quarter Financial and Operating Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
DALLAS, May 3, 2017 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("SUN" or the "Partnership") today announced financial and operating results for the three-month period ended March 31, 2017.
Revenue totaled $4.4 billion, an increase of 36.7 percent, compared to $3.2 billion in the first quarter of 2016. The increase was the result of the average selling price of fuel being 56 cents per gallon higher than last year, additional wholesale gallons sold and increased merchandise sales.
Total gross profit was $503 million, compared to $511 million in the first quarter of 2016.
The key driver of the decrease was lower wholesale motor fuel profits partly offset by increases in retail motor fuel and merchandise profits.
Income from operations was $48 million, versus $92 million in the first quarter of 2016. General and administrative expenses increased $6 million from the first quarter 2016 to $64 million primarily due to increased salary and benefit costs. Other operating expenses increased $14 million from the first quarter 2016 to $263 million as a result of stores acquired or opened in the last 12 months.
Net income was $1 million, or ($0.22) per diluted unit, versus $62 million, or $0.47 per diluted unit, in the first quarter of 2016.
Adjusted EBITDA (1) for the quarter totaled $155 million, compared with $159 million in the first quarter of 2016. The unfavorable year-over-year comparison reflects decreased wholesale motor fuel gross profit contribution and increased total operating expenses.
Distributable cash flow (1), as adjusted, was $77 million, compared to $112 million a year ago. This year over year decrease reflects an increase in cash interest expense.
On a weighted-average basis, fuel margin for all gallons sold decreased to 14.5 cents per gallon, compared to 14.7 cents per gallon in the first quarter of 2016. The decrease was primarily attributable to lower margins in the wholesale segment.
Net income for the wholesale segment was $42 million compared to $87 million a year ago. Adjusted EBITDA was $95 million, versus $103 million in the first quarter of last year. Total wholesale gallons sold were 1,313 million, compared to 1,233 million in the first quarter of 2016, an increase of 6.5 percent as a result of growth in both the Southwest geography and unbranded business and contribution from the Emerge acquisition. This includes gallons sold to consignment stores and third-party customers, including independent dealers, fuel distributors and commercial customers. The Partnership earned 10.6 cents per gallon on these volumes, compared to 11.4 cents per gallon a year earlier.
Net loss for the retail segment was $41 million compared to a net loss of $25 million a year ago. Adjusted EBITDA was $60 million, versus $56 million in the first quarter of last year. Total retail gallons sold decreased by 2.1 percent to 595 million gallons as a result of the decreased demand across SUN's operating geography, particularly along the East Coast. The Partnership earned 23.1 cents per gallon on these volumes, compared to 21.3 cents per gallon a year earlier.
Total merchandise sales increased by 3.1 percent from a year ago to $540 million, reflecting the contribution from third party acquisitions and new-to-industry locations opened during the last 12 months. Merchandise sales contributed $170 million of gross profit with a retail merchandise margin of 31.6 percent, a decrease of 0.1 percentage points from the first quarter of 2016.
Same-store merchandise sales decreased by 1.1 percent during the first quarter, reflecting weakness in convenience store and restaurant operations in Texas, partly offset by growth in SUN's East Coast and Hawaiian operations. Same-store gallons decreased by 5.7 percent as a result of weakness throughout SUN's retail geography. In the Texas oil producing regions, same-store merchandise sales increased by 1.6 percent, and same-store gallons increased 1.1 percent. Both same store merchandise sales and same store fuel sales were impacted from a leap day in the first quarter of last year by approximately 1.1 percent.
As of March 31, 2017, SUN operated 1,355 convenience stores and retail fuel outlets along the East Coast, in the Southwest and in Hawaii. Third party wholesale customers totaled 7,825.
SUN's other recent accomplishments include the following:
SUN's segment results and other supplementary data are provided after the financial tables below.
Distribution
On April 27, 2017 the Board of Directors of SUN's general partner declared a distribution for the first quarter of 2017 of $0.8255 per unit, which corresponds to $3.3020 per unit on an annualized basis. This distribution was unchanged from the fourth quarter 2016 and represented a 1.0 percent increase compared with the first quarter of 2016. The distribution will be paid on May 16 to unitholders of record on May 9.
SUN's distribution coverage ratio for the first quarter was 0.74 times. The distribution coverage ratio on a trailing 12-month basis was 0.88 times.
Liquidity
At March 31, SUN had borrowings against its revolving line of credit of $761 million and other long-term debt of $3.6 billion. Availability on the revolving credit facility after borrowings and letters of credit commitments was $718 million. In the first quarter of 2017, SUN issued 1.3 million common units through its at-the-market equity program, generating net proceeds of $33 million. The leverage ratio of debt to Adjusted EBITDA, calculated in accordance with SUN's credit agreements, including the revolving credit facility and Term Loan A, was 6.31 times at the end of the first 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, May 4, at 9:30 a.m. CT (10:30 a.m. ET) to discuss first quarter results and recent developments. To participate, dial 201-389-0877 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 1,355 convenience stores and retail fuel sites and distributes motor fuel to 7,825 convenience stores, independent dealers, commercial customers and distributors located in 30 states. Our parent -- Energy Transfer Equity, L.P. (NYSE: ETE) -- owns SUN's general partner and incentive distribution rights.
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
(214) 840-5660, scott.grischow@sunoco.com
Patrick Graham, Senior Analyst – Investor Relations and Finance
(214) 840-5678, patrick.graham@sunoco.com
Media:
Alyson Gomez, Director – Communications
(469) 646-1758, alyson.gomez@sunoco.com
Jeff Shields, Communications Manager
(215) 977-6056, jeff.shields@sunoco.com
– Financial Schedules Follow –
|
SUNOCO LP | ||||||||
|
CONSOLIDATED BALANCE SHEETS | ||||||||
|
(unaudited) | ||||||||
|
March 31, |
December 31, | |||||||
|
(in millions, except units) | ||||||||
|
Assets |
||||||||
|
Current assets: |
||||||||
|
Cash and cash equivalents |
$ |
74 |
$ |
119 |
||||
|
Accounts receivable, net |
442 |
539 |
||||||
|
Receivables from affiliates |
13 |
3 |
||||||
|
Inventories, net |
512 |
573 |
||||||
|
Other current assets |
162 |
155 |
||||||
|
Total current assets |
1,203 |
1,389 |
||||||
|
Property and equipment, net |
3,299 |
3,373 |
||||||
|
Other assets: |
||||||||
|
Goodwill |
2,612 |
2,618 |
||||||
|
Intangible assets, net |
1,292 |
1,255 |
||||||
|
Other noncurrent assets |
48 |
66 |
||||||
|
Total assets |
$ |
8,454 |
$ |
8,701 |
||||
|
Liabilities and equity |
||||||||
|
Current liabilities: |
||||||||
|
Accounts payable |
$ |
438 |
$ |
616 |
||||
|
Accounts payable to affiliates |
111 |
109 |
||||||
|
Advances from affiliates |
1 |
87 |
||||||
|
Accrued expenses and other current liabilities |
371 |
372 |
||||||
|
Current maturities of long-term debt |
5 |
5 |
||||||
|
Total current liabilities |
926 |
1,189 |
||||||
|
Revolving line of credit |
761 |
1,000 |
||||||
|
Long-term debt, net |
3,534 |
3,509 |
||||||
|
Deferred tax liability |
626 |
643 |
||||||
|
Other noncurrent liabilities |
178 |
164 |
||||||
|
Total liabilities |
6,025 |
6,505 |
||||||
|
Commitments and contingencies (Note 12) |
||||||||
|
Equity: |
||||||||
|
Limited partners: |
||||||||
|
Series A Preferred unitholder - affiliated |
300 |
— |
||||||
|
Common unitholders - public |
1,458 |
1,467 |
||||||
|
Common unitholders - affiliated |
671 |
729 |
||||||
|
Class C unitholders - held by subsidiary |
— |
— |
||||||
|
Total equity |
2,429 |
2,196 |
||||||
|
Total liabilities and equity |
$ |
8,454 |
$ |
8,701 |
||||
|
SUNOCO LP | |||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | |||||||
|
(unaudited) | |||||||
|
For the Three Months Ended March 31, | |||||||
|
2017 |
2016 | ||||||
|
(in millions, except unit and per unit amounts) | |||||||
|
Revenues: |
|||||||
|
Retail motor fuel |
$ |
1,516 |
$ |
1,116 |
|||
|
Wholesale motor fuel sales to third parties |
2,243 |
1,496 |
|||||
|
Wholesale motor fuel sales to affiliates |
21 |
7 |
|||||
|
Merchandise |
540 |
524 |
|||||
|
Rental income |
23 |
22 |
|||||
|
Other |
51 |
50 |
|||||
|
Total revenues |
4,394 |
3,215 |
|||||
|
Cost of sales: |
|||||||
|
Retail motor fuel cost of sales |
1,379 |
984 |
|||||
|
Wholesale motor fuel cost of sales |
2,138 |
1,352 |
|||||
|
Merchandise cost of sales |
370 |
358 |
|||||
|
Other |
4 |
10 |
|||||
|
Total cost of sales |
3,891 |
2,704 |
|||||
|
Gross profit |
503 |
511 |
|||||
|
Operating expenses: |
|||||||
|
General and administrative |
64 |
58 |
|||||
|
Other operating |
263 |
249 |
|||||
|
Rent |
34 |
33 |
|||||
|
Loss on disposal of assets |
7 |
1 |
|||||
|
Depreciation, amortization and accretion |
87 |
78 |
|||||
|
Total operating expenses |
455 |
419 |
|||||
|
Income from operations |
48 |
92 |
|||||
|
Interest expense, net |
64 |
28 |
|||||
|
Income (loss) before income taxes |
(16) |
64 |
|||||
|
Income tax expense (benefit) |
(17) |
2 |
|||||
|
Net income and comprehensive income |
$ |
1 |
$ |
62 |
|||
|
Net income (loss) per limited partner unit: |
|||||||
|
Common - basic and diluted |
$ |
(0.22) |
$ |
0.47 |
|||
|
Weighted average limited partner units outstanding: |
|||||||
|
Common units - public (basic) |
52,858,782 |
49,588,960 |
|||||
|
Common units - public (diluted) |
52,965,132 |
49,610,314 |
|||||
|
Common units - affiliated (basic and diluted) |
45,750,826 |
37,864,373 |
|||||
|
Cash distribution per unit |
$ |
0.8255 |
$ |
0.8173 |
|||
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 March 31, 2017 and 2016 and have been derived from our historical consolidated financial statements.
The accompanying footnotes to the following two key operating metrics tables can be found immediately preceding our capital spending discussion.
|
For the Three Months Ended March 31, | ||||||||||||||||||||||||
|
2017 |
2016 | |||||||||||||||||||||||
|
Wholesale |
Retail |
Total |
Wholesale |
Retail |
Total | |||||||||||||||||||
|
(dollars and gallons in millions, except motor fuel gross profit per gallon) | ||||||||||||||||||||||||
|
Revenues: |
||||||||||||||||||||||||
|
Retail motor fuel |
$ |
— |
$ |
1,516 |
$ |
1,516 |
$ |
— |
$ |
1,116 |
$ |
1,116 |
||||||||||||
|
Wholesale motor fuel sales to third parties |
2,243 |
— |
2,243 |
1,496 |
— |
1,496 |
||||||||||||||||||
|
Wholesale motor fuel sale to affiliates |
21 |
— |
21 |
7 |
— |
7 |
||||||||||||||||||
|
Merchandise |
— |
540 |
540 |
— |
524 |
524 |
||||||||||||||||||
|
Rental income |
19 |
4 |
23 |
19 |
3 |
22 |
||||||||||||||||||
|
Other |
13 |
38 |
51 |
18 |
32 |
50 |
||||||||||||||||||
|
Total revenues |
$ |
2,296 |
$ |
2,098 |
$ |
4,394 |
$ |
1,540 |
$ |
1,675 |
$ |
3,215 |
||||||||||||
|
Gross profit: |
||||||||||||||||||||||||
|
Retail motor fuel |
$ |
— |
$ |
137 |
$ |
137 |
$ |
— |
$ |
132 |
$ |
132 |
||||||||||||
|
Wholesale motor fuel |
126 |
— |
126 |
151 |
— |
151 |
||||||||||||||||||
|
Merchandise |
— |
170 |
170 |
— |
166 |
166 |
||||||||||||||||||
|
Rental and other |
28 |
42 |
70 |
36 |
26 |
62 |
||||||||||||||||||
|
Total gross profit |
$ |
154 |
$ |
349 |
$ |
503 |
$ |
187 |
$ |
324 |
$ |
511 |
||||||||||||
|
Net income (loss) and comprehensive income (loss) |
$ |
42 |
$ |
(41) |
$ |
1 |
$ |
87 |
$ |
(25) |
$ |
62 |
||||||||||||
|
Adjusted EBITDA (2) |
$ |
155 |
$ |
159 |
||||||||||||||||||||
|
Distributable cash flow, as adjusted (2) |
$ |
77 |
$ |
112 |
||||||||||||||||||||
|
Operating Data: |
||||||||||||||||||||||||
|
Total motor fuel gallons sold: |
||||||||||||||||||||||||
|
Retail |
595 |
595 |
608 |
608 |
||||||||||||||||||||
|
Wholesale |
1,313 |
1,313 |
1,233 |
1,233 |
||||||||||||||||||||
|
Motor fuel gross profit cents per gallon (1): |
||||||||||||||||||||||||
|
Retail |
23.1 |
¢ |
23.1 |
¢ |
21.3 |
¢ |
21.3 |
¢ | ||||||||||||||||
|
Wholesale |
10.6 |
¢ |
10.6 |
¢ |
11.4 |
¢ |
11.4 |
¢ | ||||||||||||||||
|
Volume-weighted average for all gallons |
14.5 |
¢ |
14.7 |
¢ | ||||||||||||||||||||
|
Retail merchandise margin |
31.6% |
31.7% |
||||||||||||||||||||||
The following table presents a reconciliation of net income to EBITDA, Adjusted EBITDA and distributable cash flow for the three months ended March 31, 2017 and 2016:
|
For the Three Months Ended March 31, | ||||||||||||||||||||||||
|
2017 |
2016 | |||||||||||||||||||||||
|
Wholesale |
Retail |
Total |
Wholesale |
Retail |
Total | |||||||||||||||||||
|
(in millions) | ||||||||||||||||||||||||
|
Net income (loss) and comprehensive income (loss) |
$ |
42 |
$ |
(41) |
$ |
1 |
$ |
87 |
$ |
(25) |
$ |
62 |
||||||||||||
|
Depreciation, amortization and accretion |
22 |
65 |
87 |
17 |
61 |
78 |
||||||||||||||||||
|
Interest expense, net |
20 |
44 |
64 |
12 |
16 |
28 |
||||||||||||||||||
|
Income tax expense (benefit) |
1 |
(18) |
(17) |
(1) |
3 |
2 |
||||||||||||||||||
|
EBITDA |
$ |
85 |
$ |
50 |
$ |
135 |
$ |
115 |
$ |
55 |
$ |
170 |
||||||||||||
|
Non-cash compensation expense |
— |
4 |
4 |
2 |
1 |
3 |
||||||||||||||||||
|
Loss on disposal of assets |
2 |
5 |
7 |
— |
1 |
1 |
||||||||||||||||||
|
Unrealized gain on commodity derivatives |
(5) |
— |
(5) |
(3) |
— |
(3) |
||||||||||||||||||
|
Inventory adjustments |
13 |
1 |
14 |
(11) |
(1) |
(12) |
||||||||||||||||||
|
Adjusted EBITDA |
$ |
95 |
$ |
60 |
$ |
155 |
$ |
103 |
$ |
56 |
$ |
159 |
||||||||||||
|
Cash interest expense |
60 |
27 |
||||||||||||||||||||||
|
Income tax expense (current) |
— |
2 |
||||||||||||||||||||||
|
Maintenance capital expenditures |
18 |
19 |
||||||||||||||||||||||
|
Distributable cash flow |
$ |
77 |
$ |
111 |
||||||||||||||||||||
|
Transaction-related expenses |
— |
1 |
||||||||||||||||||||||
|
Series A Preferred distribution |
— |
— |
||||||||||||||||||||||
|
Distributable cash flow, as adjusted |
$ |
77 |
$ |
112 |
||||||||||||||||||||
_______________________________
|
(1) |
Excludes the impact of inventory fair value adjustments consistent with the definition of Adjusted EBITDA. |
|
(2) |
EBITDA is defined as earnings before net interest expense, income taxes, depreciation, amortization and accretion expense. Adjusted EBITDA further adjusts EBITDA to reflect certain other non-recurring and non-cash items. We define Adjusted EBITDA to also include adjustments for 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 long-term debt that is paid on a semi-annual basis, Series A Preferred distribution, 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 one should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. Some of these limitations include: |
Capital Spending
SUN's gross capital expenditures for the first quarter were $66 million, which included $48 million for growth capital and $18 million for maintenance capital. Approximately $14.4 million of the growth capital spent was for the construction of new-to-industry sites, of which 10 opened in the first quarter. The construction of all 10 of these sites started in 2016.
Excluding acquisitions, SUN expects approximately $150 million to be spent on growth capital and approximately $90 million to be spent on maintenance capital for the full year 2017.
Growth capital spending includes the rebuilding of locations SUN is operating on the Indiana Toll Road.
SOURCE Sunoco LP
Article Date
5/3/20174/27/2017 - Sunoco LP Maintains Quarterly Distribution
Sunoco LP Maintains Quarterly Distribution
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
DALLAS, April 27, 2017 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("SUN") announced that the Board of Directors of its general partner declared a quarterly distribution for the first quarter of 2017 of $0.8255 per common unit, which corresponds to $3.3020 per common unit on an annualized basis. The first quarter distribution is unchanged from the fourth quarter 2016 distribution and reflects a 1.0 percent increase compared to the distribution for the first quarter of 2016. The distribution will be paid on May 16, 2017 to common unitholders of record on May 9, 2017.
SUN will release its first quarter 2017 financial and operating results after the market closes on Wednesday, May 3. In conjunction with the news release, management will hold a conference call on Thursday, May 4, at 9:30 a.m. Central Time (10:30 a.m. Eastern Time) to discuss SUN's results.
|
By Phone: |
Dial 201-389-0877 at least 10 minutes before the call. A replay will be available through March 3 by dialing 201-612-7415 and using the conference ID 13661024#. |
|
By Webcast: |
Connect to the webcast via the Events and Presentations pages of SUN's Investor Relations website at www.SunocoLP.com. Please log in at least 10 minutes in advance to register and download any necessary software. A replay will be available shortly after the call. |
About Sunoco LP
Sunoco LP (NYSE: SUN) is a master limited partnership that operates approximately 1,345 convenience stores and retail fuel sites and distributes motor fuel to approximately 7,845 convenience stores, independent dealers, commercial customers and distributors located in 30 states. Our parent -- Energy Transfer Equity, L.P. (NYSE: ETE) -- owns SUN's general partner and incentive distribution rights.
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 SUN's distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, SUN's distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.
Contacts
Scott Grischow
Senior Director – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Patrick Graham
Senior Analyst – Investor Relations and Finance
(214) 840-5678, patrick.graham@sunoco.com
SOURCE Sunoco LP
Article Date
4/27/20174/6/2017 - Sunoco LP Announces Strategic Divestiture of Convenience Stores in Continental United States
Sunoco LP Announces Strategic Divestiture of Convenience Stores in Continental United States
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
DALLAS, April 6, 2017 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("SUN") today announced that it entered into a definitive asset purchase agreement for the sale of a majority of its convenience stores to 7-Eleven, Inc. ("7-Eleven").
Total consideration in the transaction is $3.3 billion in cash plus fuel, merchandise and other inventories. SUN expects to use the proceeds to repay indebtedness and for general partnership purposes.
SUN President and Chief Executive Officer Bob Owens stated, "The sale of these retail assets to 7-Eleven is the beginning of an exciting evolution for SUN into a premier nationwide fuel supplier. Our supply agreement with 7-Eleven provides SUN with a predictable long-term income stream, and this transaction quickly allows SUN to improve its financial profile."
Assets being sold to 7-Eleven include approximately 1,110 convenience stores in 19 geographic regions primarily along the East Coast and in Texas, and the associated trademarks and intellectual property of the Laredo Taco Company and Stripes. As part of the transaction, SUN will enter into a 15-year take-or-pay fuel supply agreement with a 7-Eleven subsidiary under which SUN will supply approximately 2.2 billion gallons of fuel annually. This supply agreement will have guaranteed annual payments to SUN, provides that 7-Eleven will continue to use the Sunoco brand at currently branded Sunoco stores and includes committed growth in future periods.
Approximately 200 convenience stores in North and West Texas, New Mexico and Oklahoma will be sold in a separate process. SUN's Aloha Petroleum business unit in Hawaii will continue to operate its highly efficient and integrated business model within SUN. Likewise, the transaction does not include SUN's highly successful APlus franchisee-operated stores.
SUN's transaction with 7-Eleven is the first step in SUN's strategic shift away from company-operated convenience stores to focus on its industry-leading fuel supply business. Led by the iconic Sunoco fuel brand and successful APlus franchise, SUN plans to be a leading consolidator in the domestic wholesale fuels business, supplying fuel to a network of more than 8,900 locations of third-party dealers, distributors and other commercial customers, with an enhanced focus on MLP qualifying income. Additionally, the proceeds received in this transaction will be used to further enhance SUN's credit profile and leverage profile.
This transaction is subject to regulatory clearances and customary closing conditions and is expected to close by the fourth quarter 2017.
J.P. Morgan Securities LLC ("JP Morgan") served as SUN's exclusive financial advisor for the transaction. In addition, SUN has retained JP Morgan to market the approximately 200 remaining convenience stores in North and West Texas, New Mexico and Oklahoma.
Conference Call
Sunoco LP management will hold a conference call on Thursday, April 6, at 8:00 a.m. CT (9:00 a.m. ET) to discuss the transaction. To participate, dial 201-389-0877 approximately 10 minutes early and ask for the Sunoco LP conference call.
About Sunoco LP
Sunoco LP (NYSE: SUN) is a master limited partnership that operates 1,345 convenience stores and retail fuel sites and distributes motor fuel to 7,845 convenience stores, independent dealers, commercial customers and distributors located in 30 states. Our parent -- Energy Transfer Equity, L.P. (NYSE: ETE) -- owns SUN'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.
Contacts
Investors:
Scott Grischow
Senior Director – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Patrick Graham
Senior Analyst – Investor Relations and Finance
(214) 840-5678, patrick.graham@sunoco.com
Media:
Alyson Gomez
Director – Communications
(469) 646-1758, alyson.gomez@sunoco.com
SOURCE Sunoco LP
Article Date
4/6/20174/4/2017 - Sunoco LP (Stripes Stores And APlus Stores) To Raise Funds For Children's Miracle Network Hospitals®
Sunoco LP (Stripes Stores And APlus Stores) To Raise Funds For Children's Miracle Network Hospitals®
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
SALT LAKE CITY and DALLAS, April 4, 2017 /PRNewswire/ -- Now through May 3, Stripes® Convenience Stores and APlus® Stores will be asking customers to "Put Their Money Where The Miracles Are" and purchase a $1 Miracle Balloon to raise funds for Children's Miracle Network Hospitals (CMN Hospitals).
Stripes and APlus, operated by Sunoco LP, have partnered with CMN Hospitals since 2000, raising more than $11 million for sick and injured kids. In 2016, Sunoco's team members raised more than $1.8 million during their spring campaign.
"Sunoco LP is committed to serving the needs of the communities in which we live and work," said Eduardo Pereda, Vice President of Convenience Brands for Sunoco LP. "Over the past 16 years, our guests have inspired us through their generous spirit by showing incredible support for our local children's hospitals. That generous spirit has energized all of us at Sunoco LP to continue the partnership in 2017 in the hopes of helping even more children in our communities."
Funds raised through the in-store campaigns are unrestricted, meaning the hospitals can use the funds where they are needed most. Donations raised during the campaign have a direct impact on the millions of kids treated at local CMN Hospitals. These funds help kids like Morgan, a leukemia patient treated at Hendrick Children's Hospital in Texas. Donations helped purchase infusion kits that helped Morgan get better.
"Stripes and APlus Stores are a huge part of helping kids in the communities these stores serve get better," said John Lauck, president and CEO of Children's Miracle Network Hospitals. "I can't thank stores' customers and employees enough for all they do for the kids."
Funds raised from the CMNH partnership with Sunoco will stay in the local communities. These donations help make miracles happen by funding vital medical care, equipment and therapy programs that save and improve the lives of more than 10 million sick and injured children a year.
About Sunoco LP
Sunoco LP (NYSE: SUN) is a master limited partnership that operates approximately 1,345 convenience stores and retail fuel sites and distributes motor fuel to approximately 7,325 convenience stores, independent dealers, commercial customers and distributors located in 30 states. 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.
About Children's Miracle Network Hospitals
Children's Miracle Network Hospitals® raises funds and awareness for 170 member hospitals that provide 32 million treatments each year to kids across the U.S. and Canada. Donations stay local to fund critical treatments and healthcare services, pediatric medical equipment and charitable care. Since 1983, Children's Miracle Network Hospitals has raised more than $5 billion, most of it $1 at a time through the charity's Miracle Balloon icon. Its various fundraising partners and programs support the nonprofit's mission to save and improve the lives of as many children as possible. Find out why children's hospitals need community support, and learn about your member hospital, at CMNHospitals.org and facebook.com/CMNHospitals.
Contact:
Jeamy Molina
Jeamy.molina@sunoco.com
469-646-1776
Contact:
Emily Cawley
ecawley@cmnhospitals.org
801-214-6618
SOURCE Sunoco LP
Article Date
4/4/20172/27/2017 - Sunoco LP Files 2016 Annual Report on Form 10-K
Sunoco LP Files 2016 Annual Report on Form 10-K
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
DALLAS, Feb. 27, 2017 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("SUN") on February 24, 2017, filed operational and financial results for the fiscal year ended December 31, 2016 on Form 10-K with the U.S. Securities and Exchange Commission. The Annual Report on Form 10-K is available in the Investor Relations section of the Partnership's website at www.SunocoLP.com under "SEC Filings," as well as on the SEC's website at www.sec.gov.
Sunoco LP unitholders may also request a printed copy of the report, which contains the Partnership's audited financial statements, free of charge by emailing IR@SunocoLP.com, by completing the request form on the Investor Relations website, or by calling Investor Relations at 214-840-5678.
K-1 tax information for Sunoco LP unitholders will be mailed in mid-March and will also be available online. Visit the Investor Relations section of the Partnership's website at www.SunocoLP.com under "Distribution and K-1 Information" to receive an email notification when tax year 2016 information is available or to sign up to receive your K-1 electronically.
About Sunoco LP
Sunoco LP (NYSE: SUN) is a master limited partnership that operates 1,345 convenience stores and retail fuel sites and distributes motor fuel to 7,845 convenience stores, independent dealers, commercial customers and distributors located in 30 states. Our parent -- Energy Transfer Equity, L.P. (NYSE: ETE) -- owns SUN's general partner and incentive distribution rights.
Contacts
Investors:
Scott Grischow
Senior Director – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Patrick Graham
Senior Analyst – Investor Relations and Finance
(214) 840-5678, patrick.graham@sunoco.com
Media:
Alyson Gomez, Director – Communications
(469) 646-1758, alyson.gomez@sunoco.com
Jeff Shields, Communications Manager
(215) 977-6056, jeff.shields@sunoco.com
SOURCE Sunoco LP
Article Date
2/27/2017Sunoco LP Announces Fourth Quarter and Full Year 2016 Financial and Operating Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
DALLAS, Feb. 22, 2017 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("SUN" or the "Partnership") today announced financial and operating results for the three and twelve-month periods ended December 31, 2016.
Revenue totaled $4.3 billion, an increase of 4.9 percent, compared to $4.1 billion in the fourth quarter of 2015. The increase was the result of growth in wholesale and retail fuel gallons sold and higher merchandise sales, partly offset by a one cent per gallon decrease in the average selling price of fuel.
Total gross profit was $561.9 million, compared to $464.7 million in the fourth quarter of 2015. Key drivers of the increase were higher retail and wholesale motor fuel profits due to an increase in total gallons sold.
Loss from operations was $568.4 million, versus income from operations of $51.0 million in the fourth quarter of 2015, reflecting a goodwill impairment charge of $641.6 million and an intangible asset impairment charge of $32.0 million recorded during the fourth quarter, both of which were non-cash items. General and administrative expenses increased $17.9 million from the fourth quarter 2015 to $67.2 million primarily due to acquisition costs and expenses incurred with the opening of a corporate office in Dallas, Texas. Other operating expenses increased $10.9 million from the fourth quarter 2015 to $267.2 million as a result of stores acquired or opened in the last 12 months.
Net loss attributable to partners was $585.2 million, or ($6.32) per diluted unit, versus net income attributable to partners of $7.8 million, or ($0.13) per diluted unit, in the fourth quarter of 2015.
Adjusted EBITDA attributable to partners (1) for the quarter totaled $153.6 million, compared with $188.7 million in the fourth quarter of 2015. The unfavorable year-over-year comparison reflects lower cent per gallon fuel margins in the retail and wholesale segments and lower merchandise gross profit contribution.
Distributable cash flow attributable to partners (1), as adjusted, was $62.6 million, compared to $90.1 million a year ago. This year over year decrease reflects an increase in cash interest expense, income tax expense and maintenance capital expenditures.
On a weighted-average basis, fuel margin for all gallons sold decreased to 14.3 cents per gallon, compared to 15.7 cents per gallon in the fourth quarter of 2015. The decrease was primarily attributable to increased product costs experienced during the fourth quarter.
Net income attributable to partners for the wholesale segment was $61.4 million compared to a net loss of $10.2 million a year ago. Adjusted EBITDA was $76.9 million, versus $82.7 million in the fourth quarter of last year. Total wholesale gallons sold were 1,358.7 million, compared to 1,241.0 million in the fourth quarter of 2015, an increase of 9.5 percent as a result of contribution from third party acquisitions during the last 12 months. This includes gallons sold to consignment stores and third-party customers, including independent dealers, fuel distributors and commercial customers. The Partnership earned 9.0 cents per gallon on these volumes, compared to 9.6 cents per gallon a year earlier.
Net loss attributable to partners for the retail segment was $646.6 million compared to a net income of $17.9 million a year ago. Adjusted EBITDA was $76.7 million, versus $106.0 million in the fourth quarter of last year. Total retail gallons sold increased by 1.0 percent to 626.1 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 25.7 cents per gallon on these volumes, compared to 27.8 cents per gallon a year earlier.
Total merchandise sales increased by 3.8 percent from a year ago to $565.8 million, reflecting the contribution from third party acquisitions and new-to-industry locations opened during the last 12 months. Merchandise sales contributed $169.0 million of gross profit with a retail merchandise margin of 29.9 percent, a decrease of 1.2 percentage points from the fourth quarter of 2015.
Same-store merchandise sales were flat during the fourth quarter, reflecting growth in SUN's East Coast operations offset by continued weakness in convenience store operations in Texas, particularly in the oil producing regions. Same-store gallons decreased by 1.9 percent as a result of weakness throughout the state of Texas, particularly lower year-over-year activity in oil producing regions. In the Texas oil producing regions, same-store merchandise sales decreased by 4.2 percent, and same-store gallons declined 3.9 percent. Excluding the oil producing regions, same-store merchandise sales increased by 0.7 percent, and same-store gallons decreased by 1.7 percent.
As of December 31, 2016, SUN operated 1,345 convenience stores and retail fuel outlets along the East Coast, in the Southwest and in Hawaii. Third party wholesale customers totaled 7,845.
SUN's other recent accomplishments include the following:
SUN's segment results and other supplementary data are provided after the financial tables below.
FY 2016 Compared to FY 2015
Revenue for the full year 2016 totaled $15.7 billion, a 15.0 percent decrease compared to full year 2015. Gross profit for this period increased 11.8 percent year-over-year to $2.2 billion.
Wholesale gallons sold to third parties increased by 2.6 percent to 5.3 billion gallons. Retail gallons sold increased by 1.1 percent to 2.5 billion gallons. On a weighted-average basis, fuel margin for all gallons sold decreased to 14.4 cents per gallon for the full year 2016, versus 14.9 cents per gallon in the full year 2015.
Total merchandise sales increased by 4.3 percent from full year 2015 to $2.3 billion. Merchandise sales contributed $716.0 million of gross profit with a retail merchandise margin of 31.5 percent, a 26 basis point increase from full year 2015.
Net loss attributable to partners for the full year 2016 totaled $406.5 million, a decrease of $493.7 million compared to full year 2015. Adjusted EBITDA attributable to partners was $665.3 million, compared to $715.3 million for the 2015 period, and distributable cash flow, as adjusted was $390.3 million, versus $272.2 million for 2015.
Distribution
On February 1, 2017 the Board of Directors of SUN's general partner declared a distribution for the fourth quarter of 2016 of $0.8255 per unit, which corresponds to $3.3020 per unit on an annualized basis. This distribution was unchanged from the third quarter and represented a 3.0 percent increase compared with the fourth quarter of 2015. The distribution was paid on February 21 to unitholders of record on February 13.
SUN's distribution coverage ratio for the fourth quarter was 0.61 times. The distribution coverage ratio on a trailing 12-month basis was 0.98 times.
Liquidity
At December 31, SUN had borrowings against its revolving line of credit of $1.0 billion and other long-term debt of $3.6 billion. Availability on the revolving credit facility after borrowings and letters of credit commitments was $469.0 million. In the fourth quarter of 2016, SUN issued 2.8 million common units through its at-the-market equity program, generating net proceeds of $71.4 million. Net debt to Adjusted EBITDA, calculated in accordance with SUN's revolving credit facility, was 6.50 times at the end of the fourth 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, February 23, at 9:00 a.m. CT (10:00 a.m. ET) to discuss fourth quarter and full year 2016 results and recent developments. To participate, dial 201-389-0877 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 1,345 convenience stores and retail fuel sites and distributes motor fuel to 7,845 convenience stores, independent dealers, commercial customers and distributors located in 30 states. Our parent -- Energy Transfer Equity, L.P. (NYSE: ETE) -- owns SUN's general partner and incentive distribution rights.
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
(214) 840-5660, scott.grischow@sunoco.com
Patrick Graham, Senior Analyst – Investor Relations and Finance
(214) 840-5678, patrick.graham@sunoco.com
Media:
Alyson Gomez, Director – Communications
(469) 646-1758, alyson.gomez@sunoco.com
Jeff Shields, Communications Manager
(215) 977-6056, jeff.shields@sunoco.com
|
SUNOCO LP | |||||||
|
CONSOLIDATED BALANCE SHEETS | |||||||
|
December 31, |
December 31, | ||||||
|
(in millions, except units) | |||||||
|
Assets |
|||||||
|
Current assets: |
|||||||
|
Cash and cash equivalents |
$ |
119 |
$ |
73 |
|||
|
Advances to affiliates |
— |
366 |
|||||
|
Accounts receivable, net |
539 |
308 |
|||||
|
Receivables from affiliates |
3 |
8 |
|||||
|
Inventories, net |
573 |
467 |
|||||
|
Other current assets |
155 |
46 |
|||||
|
Total current assets |
1,389 |
1,268 |
|||||
|
Property and equipment, net |
3,373 |
3,155 |
|||||
|
Other assets: |
|||||||
|
Goodwill |
2,618 |
3,111 |
|||||
|
Intangible assets, net |
1,255 |
1,260 |
|||||
|
Other noncurrent assets |
66 |
48 |
|||||
|
Total assets |
$ |
8,701 |
$ |
8,842 |
|||
|
Liabilities and equity |
|||||||
|
Current liabilities: |
|||||||
|
Accounts payable |
$ |
616 |
$ |
434 |
|||
|
Accounts payable to affiliates |
109 |
15 |
|||||
|
Advances from affiliates |
87 |
— |
|||||
|
Accrued expenses and other current liabilities |
372 |
308 |
|||||
|
Current maturities of long-term debt |
5 |
5 |
|||||
|
Total current liabilities |
1,189 |
762 |
|||||
|
Revolving line of credit |
1,000 |
450 |
|||||
|
Long-term debt, net |
3,509 |
1,503 |
|||||
|
Deferred tax liability |
643 |
694 |
|||||
|
Other noncurrent liabilities |
164 |
170 |
|||||
|
Total liabilities |
6,505 |
3,579 |
|||||
|
Commitments and contingencies |
|||||||
|
Equity: |
|||||||
|
Limited partners: |
|||||||
|
Common unitholders - public (52,430,220 units issued and outstanding as of December 31, 2016 and 49,588,960 units issued and outstanding as of December 31, 2015) |
1,467 |
1,769 |
|||||
|
Common unitholders - affiliated (45,750,826 units issued and outstanding as of December 31, 2016 and 37,776,746 units issued and outstanding as of December 31, 2015) |
729 |
1,276 |
|||||
|
Class A unitholders - held by subsidiary (no units issued and outstanding as of December 31, 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 December 31, 2016 and no units issued and outstanding as of December 31, 2015) |
— |
— |
|||||
|
Total partners' capital |
2,196 |
3,045 |
|||||
|
Predecessor equity |
— |
2,218 |
|||||
|
Total equity |
2,196 |
5,263 |
|||||
|
Total liabilities and equity |
$ |
8,701 |
$ |
8,842 |
|||
|
SUNOCO LP | ||||||||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||||||||||||||
|
Successor |
Predecessor | |||||||||||||||
|
Year Ended |
Year Ended |
September 1, 2014 December 31, 2014 |
January 1, 2014 through August 31, 2014 | |||||||||||||
|
(dollars in millions, except unit and per unit amounts) | ||||||||||||||||
|
Revenues: |
||||||||||||||||
|
Retail motor fuel |
$ |
5,261 |
$ |
5,891 |
$ |
2,377 |
$ |
— |
||||||||
|
Wholesale motor fuel sales to third parties |
7,812 |
10,104 |
4,235 |
1,275 |
||||||||||||
|
Wholesale motor fuel sales to affiliates |
62 |
20 |
— |
2,200 |
||||||||||||
|
Merchandise |
2,272 |
2,178 |
651 |
— |
||||||||||||
|
Rental income |
90 |
81 |
25 |
12 |
||||||||||||
|
Other |
201 |
186 |
55 |
5 |
||||||||||||
|
Total revenues |
15,698 |
18,460 |
7,343 |
3,492 |
||||||||||||
|
Cost of sales: |
||||||||||||||||
|
Retail motor fuel cost of sales |
4,650 |
5,256 |
2,106 |
— |
||||||||||||
|
Wholesale motor fuel cost of sales |
7,261 |
9,717 |
4,204 |
3,429 |
||||||||||||
|
Merchandise cost of sales |
1,556 |
1,498 |
455 |
— |
||||||||||||
|
Other |
12 |
5 |
2 |
2 |
||||||||||||
|
Total cost of sales |
13,479 |
16,476 |
6,767 |
3,431 |
||||||||||||
|
Gross profit |
2,219 |
1,984 |
576 |
61 |
||||||||||||
|
Operating expenses: |
||||||||||||||||
|
General and administrative |
269 |
217 |
91 |
17 |
||||||||||||
|
Other operating |
1,059 |
1,016 |
320 |
5 |
||||||||||||
|
Rent |
140 |
140 |
42 |
1 |
||||||||||||
|
Loss (gain) on disposal of assets and impairment charge |
680 |
(1) |
(1) |
— |
||||||||||||
|
Depreciation, amortization and accretion |
319 |
278 |
86 |
10 |
||||||||||||
|
Total operating expenses |
2,467 |
1,650 |
538 |
33 |
||||||||||||
|
Income (loss) from operations |
(248) |
334 |
38 |
28 |
||||||||||||
|
Interest expense, net |
189 |
88 |
11 |
5 |
||||||||||||
|
Income (loss) before income taxes |
(437) |
246 |
27 |
23 |
||||||||||||
|
Income tax expense (benefit) |
(31) |
52 |
80 |
— |
||||||||||||
|
Net income (loss) and comprehensive income (loss) |
(406) |
194 |
(53) |
23 |
||||||||||||
|
Less: Net income and comprehensive income attributable to noncontrolling interest |
— |
4 |
1 |
— |
||||||||||||
|
Less: Preacquisition income (loss) allocated to general partner |
— |
103 |
(88) |
— |
||||||||||||
|
Net income (loss) and comprehensive income (loss) attributable to partners |
(406) |
87 |
34 |
23 |
||||||||||||
|
Net income (loss) per limited partner unit: |
||||||||||||||||
|
Common - basic and diluted |
$ |
(5.26) |
$ |
1.11 |
$ |
0.85 |
$ |
1.02 |
||||||||
|
Subordinated - basic and diluted |
$ |
— |
$ |
1.40 |
$ |
0.85 |
$ |
1.02 |
||||||||
|
Weighted average limited partner units outstanding: |
||||||||||||||||
|
Common units - public (basic) |
49,785,543 |
24,550,388 |
20,493,065 |
10,944,309 |
||||||||||||
|
Common units - public (diluted) |
49,813,848 |
24,572,126 |
20,499,447 |
10,969,437 |
||||||||||||
|
Common units - affiliated (basic and diluted) |
43,789,987 |
15,703,525 |
79,308 |
79,308 |
||||||||||||
|
Subordinated units - affiliated (basic and diluted) |
— |
10,010,333 |
10,939,436 |
10,939,436 |
||||||||||||
|
Cash distribution per unit |
$ |
3.29 |
$ |
2.89 |
$ |
1.15 |
$ |
1.02 |
||||||||
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 years and three months ended December 31, 2016 and December 31, 2015 and have been derived from our historical consolidated financial statements.
The accompanying footnotes to the following four key operating metrics tables can be found immediately preceding our capital spending discussion.
|
Year Ended December 31, | ||||||||||||||||||||||||
|
2016 |
2015 | |||||||||||||||||||||||
|
Wholesale |
Retail |
Total |
Wholesale |
Retail |
Total | |||||||||||||||||||
|
(dollars and gallons in millions, except motor fuel pricing and gross profit per gallon) | ||||||||||||||||||||||||
|
Revenues: |
||||||||||||||||||||||||
|
Retail motor fuel |
$ |
— |
$ |
5,261 |
$ |
5,261 |
$ |
— |
$ |
5,891 |
$ |
5,891 |
||||||||||||
|
Wholesale motor fuel sales to third parties |
7,812 |
— |
7,812 |
10,104 |
— |
10,104 |
||||||||||||||||||
|
Wholesale motor fuel sale to affiliates |
62 |
— |
62 |
20 |
— |
20 |
||||||||||||||||||
|
Merchandise |
— |
2,272 |
2,272 |
— |
2,178 |
2,178 |
||||||||||||||||||
|
Rental income |
76 |
14 |
90 |
52 |
29 |
81 |
||||||||||||||||||
|
Other |
45 |
156 |
201 |
28 |
158 |
186 |
||||||||||||||||||
|
Total revenues |
$ |
7,995 |
$ |
7,703 |
$ |
15,698 |
$ |
10,204 |
$ |
8,256 |
$ |
18,460 |
||||||||||||
|
Gross profit: |
||||||||||||||||||||||||
|
Retail motor fuel |
$ |
— |
$ |
611 |
$ |
611 |
$ |
— |
$ |
635 |
$ |
635 |
||||||||||||
|
Wholesale motor fuel |
613 |
— |
613 |
407 |
— |
407 |
||||||||||||||||||
|
Merchandise |
— |
716 |
716 |
— |
680 |
680 |
||||||||||||||||||
|
Rental and other |
110 |
169 |
279 |
75 |
187 |
262 |
||||||||||||||||||
|
Total gross profit |
$ |
723 |
$ |
1,496 |
$ |
2,219 |
$ |
482 |
$ |
1,502 |
$ |
1,984 |
||||||||||||
|
Net income (loss) and comprehensive income (loss) attributable to limited partners |
$ |
269 |
$ |
(675) |
$ |
(406) |
$ |
(5) |
$ |
92 |
$ |
87 |
||||||||||||
|
Adjusted EBITDA attributable to partners (2) |
$ |
337 |
$ |
328 |
$ |
665 |
$ |
304 |
$ |
411 |
$ |
715 |
||||||||||||
|
Distributable cash flow attributable to partners, as adjusted (2) |
$ |
390 |
$ |
272 |
||||||||||||||||||||
|
Operating Data: |
||||||||||||||||||||||||
|
Total motor fuel gallons sold: |
||||||||||||||||||||||||
|
Retail |
2,517 |
2,517 |
2,488 |
2,488 |
||||||||||||||||||||
|
Wholesale |
5,288 |
5,288 |
5,154 |
5,154 |
||||||||||||||||||||
|
Motor fuel gross profit cents per gallon (1): |
||||||||||||||||||||||||
|
Retail |
24.0¢ |
24.0¢ |
26.4¢ |
26.4¢ |
||||||||||||||||||||
|
Wholesale |
9.8¢ |
9.8¢ |
9.4¢ |
9.4¢ |
||||||||||||||||||||
|
Volume-weighted average for all gallons |
14.4¢ |
14.9¢ |
||||||||||||||||||||||
|
Retail merchandise margin |
31.5 |
% |
31.2 |
% |
||||||||||||||||||||
The following table presents a reconciliation of net income to EBITDA, Adjusted EBITDA and distributable cash flow:
|
Year Ended December 31 | ||||||||||||||||||||||||
|
2016 |
2015 | |||||||||||||||||||||||
|
Wholesale |
Retail |
Total |
Wholesale |
Retail |
Total | |||||||||||||||||||
|
(in millions) | ||||||||||||||||||||||||
|
Net income (loss) and comprehensive income (loss) |
$ |
269 |
$ |
(675) |
$ |
(406) |
$ |
92 |
$ |
102 |
$ |
194 |
||||||||||||
|
Depreciation, amortization and accretion |
94 |
225 |
319 |
68 |
210 |
278 |
||||||||||||||||||
|
Interest expense, net |
59 |
130 |
189 |
55 |
33 |
88 |
||||||||||||||||||
|
Income tax expense (benefit) |
5 |
(36) |
(31) |
4 |
48 |
52 |
||||||||||||||||||
|
EBITDA |
$ |
427 |
$ |
(356) |
$ |
71 |
$ |
219 |
$ |
393 |
$ |
612 |
||||||||||||
|
Non-cash compensation expense |
6 |
7 |
13 |
4 |
4 |
8 |
||||||||||||||||||
|
Loss (gain) on disposal of assets & impairment charge |
(3) |
683 |
680 |
1 |
(2) |
(1) |
||||||||||||||||||
|
Unrealized losses on commodity derivatives |
5 |
— |
5 |
2 |
— |
2 |
||||||||||||||||||
|
Inventory adjustments (4) |
(98) |
(6) |
(104) |
78 |
20 |
98 |
||||||||||||||||||
|
Adjusted EBITDA |
$ |
337 |
$ |
328 |
$ |
665 |
$ |
304 |
$ |
415 |
$ |
719 |
||||||||||||
|
Net income attributable to noncontrolling interest |
— |
— |
— |
— |
4 |
4 |
||||||||||||||||||
|
Adjusted EBITDA attributable to partners |
$ |
337 |
$ |
328 |
$ |
665 |
$ |
304 |
$ |
411 |
$ |
715 |
||||||||||||
|
Cash interest expense (3) |
178 |
76 |
||||||||||||||||||||||
|
Income tax expense (current) |
— |
(18) |
||||||||||||||||||||||
|
Maintenance capital expenditures |
106 |
35 |
||||||||||||||||||||||
|
Preacquisition earnings |
— |
356 |
||||||||||||||||||||||
|
Distributable cash flow attributable to partners |
$ |
381 |
$ |
266 |
||||||||||||||||||||
|
Transaction-related expenses |
9 |
6 |
||||||||||||||||||||||
|
Distributable cash flow attributable to partners, as adjusted |
$ |
390 |
$ |
272 |
||||||||||||||||||||
The following table sets forth, for the periods indicated, information concerning key measures we rely on to gauge our operating performance:
|
Three Months Ended December 31, | ||||||||||||||||||||||||
|
2016 |
2015 | |||||||||||||||||||||||
|
Wholesale |
Retail |
Total |
Wholesale |
Retail |
Total | |||||||||||||||||||
|
(dollars and gallons in millions, except motor fuel pricing and gross profit per gallon) | ||||||||||||||||||||||||
|
Revenues: |
||||||||||||||||||||||||
|
Retail motor fuel |
$ |
— |
$ |
1,384 |
$ |
1,384 |
$ |
— |
$ |
1,294 |
$ |
1,294 |
||||||||||||
|
Wholesale motor fuel sales to third parties |
2,267 |
— |
2,267 |
2,158 |
— |
2,158 |
||||||||||||||||||
|
Wholesale motor fuel sale to affiliates |
17 |
— |
17 |
11 |
— |
11 |
||||||||||||||||||
|
Merchandise |
— |
566 |
566 |
— |
545 |
545 |
||||||||||||||||||
|
Rental income |
19 |
4 |
23 |
17 |
3 |
20 |
||||||||||||||||||
|
Other |
15 |
34 |
49 |
10 |
39 |
49 |
||||||||||||||||||
|
Total revenues |
$ |
2,318 |
$ |
1,988 |
$ |
4,306 |
$ |
2,196 |
$ |
1,881 |
$ |
4,077 |
||||||||||||
|
Gross profit: |
||||||||||||||||||||||||
|
Retail motor fuel |
$ |
— |
$ |
164 |
$ |
164 |
$ |
— |
$ |
152 |
$ |
152 |
||||||||||||
|
Wholesale motor fuel |
159 |
— |
159 |
76 |
— |
76 |
||||||||||||||||||
|
Merchandise |
— |
169 |
169 |
— |
170 |
170 |
||||||||||||||||||
|
Rental and other |
30 |
40 |
70 |
26 |
41 |
67 |
||||||||||||||||||
|
Total gross profit |
$ |
189 |
$ |
373 |
$ |
562 |
$ |
102 |
$ |
363 |
$ |
465 |
||||||||||||
|
Net income (loss) and comprehensive income (loss) attributable to limited partners |
$ |
61 |
$ |
(646) |
$ |
(585) |
$ |
(10) |
$ |
18 |
$ |
8 |
||||||||||||
|
Adjusted EBITDA attributable to partners (2) |
$ |
77 |
$ |
77 |
$ |
154 |
$ |
83 |
$ |
106 |
$ |
189 |
||||||||||||
|
Distributable cash flow attributable to partners, as adjusted (2) |
$ |
63 |
$ |
90 |
||||||||||||||||||||
|
Operating Data: |
||||||||||||||||||||||||
|
Total motor fuel gallons sold: |
||||||||||||||||||||||||
|
Retail |
626 |
626 |
620 |
620 |
||||||||||||||||||||
|
Wholesale |
1,359 |
1,359 |
1,241 |
1,241 |
||||||||||||||||||||
|
Motor fuel gross profit cents per gallon (1): |
||||||||||||||||||||||||
|
Retail |
25.7¢ |
25.7¢ |
27.8¢ |
27.8¢ |
||||||||||||||||||||
|
Wholesale |
9.0¢ |
9.0¢ |
9.6¢ |
9.6¢ |
||||||||||||||||||||
|
Volume-weighted average for all gallons |
14.3¢ |
15.7¢ |
||||||||||||||||||||||
|
Retail merchandise margin |
29.9 |
% |
31.1 |
% |
||||||||||||||||||||
The following table presents a reconciliation of net income to EBITDA, Adjusted EBITDA and distributable cash flow:
|
Three Months Ended December 31 | ||||||||||||||||||||||||
|
2016 |
2015 | |||||||||||||||||||||||
|
Wholesale |
Retail |
Total |
Wholesale |
Retail |
Total | |||||||||||||||||||
|
(in millions) | ||||||||||||||||||||||||
|
Net income (loss) and comprehensive income (loss) |
$ |
61 |
$ |
(646) |
$ |
(585) |
$ |
(7) |
$ |
24 |
$ |
17 |
||||||||||||
|
Depreciation, amortization and accretion |
34 |
51 |
85 |
20 |
55 |
75 |
||||||||||||||||||
|
Interest expense, net |
18 |
38 |
56 |
23 |
7 |
30 |
||||||||||||||||||
|
Income tax expense (benefit) |
3 |
(43) |
(40) |
3 |
1 |
4 |
||||||||||||||||||
|
EBITDA |
$ |
116 |
$ |
(600) |
$ |
(484) |
$ |
39 |
$ |
87 |
$ |
126 |
||||||||||||
|
Non-cash compensation expense |
2 |
2 |
4 |
1 |
1 |
2 |
||||||||||||||||||
|
Loss (gain) on disposal of assets & impairment charge |
(1) |
678 |
677 |
— |
(1) |
(1) |
||||||||||||||||||
|
Unrealized losses on commodity derivatives |
(4) |
— |
(4) |
(1) |
— |
(1) |
||||||||||||||||||
|
Inventory adjustments (4) |
(36) |
(3) |
(39) |
44 |
20 |
64 |
||||||||||||||||||
|
Adjusted EBITDA |
$ |
77 |
$ |
77 |
$ |
154 |
$ |
83 |
$ |
107 |
$ |
190 |
||||||||||||
|
Net income attributable to noncontrolling interest |
— |
— |
— |
— |
1 |
1 |
||||||||||||||||||
|
Adjusted EBITDA attributable to partners |
$ |
77 |
$ |
77 |
$ |
154 |
$ |
83 |
$ |
106 |
$ |
189 |
||||||||||||
|
Cash interest expense (3) |
53 |
27 |
||||||||||||||||||||||
|
Income tax expense (current) |
12 |
(19) |
||||||||||||||||||||||
|
Maintenance capital expenditures |
33 |
16 |
||||||||||||||||||||||
|
Preacquisition earnings |
— |
77 |
||||||||||||||||||||||
|
Distributable cash flow attributable to partners |
$ |
56 |
$ |
88 |
||||||||||||||||||||
|
Transaction-related expenses |
7 |
2 |
||||||||||||||||||||||
|
Distributable cash flow attributable to partners, as adjusted |
$ |
63 |
$ |
90 |
||||||||||||||||||||
_______________________________
|
(1) |
Excludes the impact of inventory fair value adjustments consistent with the definition of Adjusted EBITDA. | |
|
(2) |
EBITDA is defined as earnings before net interest expense, income taxes, depreciation, amortization and accretion expense. Adjusted EBITDA further adjusts EBITDA to reflect certain other non-recurring and non-cash items. We define Adjusted EBITDA to also include adjustments for 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 long-term debt 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: | ||
|
• |
Adjusted EBITDA is used as a performance measure under our revolving credit facility; | |
|
• |
securities analysts and other interested parties use such metrics as measures of financial performance, ability to make distributions to our unitholders and debt service capabilities; | |
|
• |
our management uses them for internal planning purposes, including aspects of our consolidated operating budget, and capital expenditures; and | |
|
• |
distributable cash flow provides useful information to investors as it is a widely accepted financial indicator used by investors to compare partnership performance, and as it provides investors an enhanced perspective of the operating performance of our assets and the cash our business is generating. | |
|
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 one should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. Some of these limitations include: | ||
|
• |
they do not reflect our total cash expenditures, or future requirements for capital expenditures or contractual commitments; | |
|
• |
they do not reflect changes in, or cash requirements for, working capital; | |
|
• |
they do not reflect interest expense or the cash requirements necessary to service interest or principal payments on our revolving credit facility or term loan; | |
|
• |
although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect cash requirements for such replacements; and | |
|
• |
as not all companies use identical calculations, our presentation of EBITDA, Adjusted EBITDA and distributable cash flow may not be comparable to similarly titled measures of other companies. | |
|
(3) |
Reflects the partnership's cash interest less the cash interest paid on our VIE debt of $9 million and $2 million during the year ended December 31, 2015 and the three months ended December 31, 2015, respectively. | |
|
(4) |
Due to the change in fuel prices, we recorded a write-down on the value of fuel inventory of $98 million and $64 million during the year ended December 31, 2015 and the three months ended December 31, 2015, respectively. | |
Capital Spending
SUN's gross capital expenditures for the fourth quarter were $148.1 million, which included $115.1 million for growth capital and $33.0 million for maintenance capital. Approximately $53.6 million of the growth capital spent was for the construction of new-to-industry sites, of which 14 were opened in the fourth quarter.
For the full year, SUN invested $332.4 million in growth capital and $106.2 million in maintenance capital. $126.8 million of growth capital was invested in 28 new-to-industry sites opened in 2016, with an additional 10 that opened during the first quarter 2017.
Excluding acquisitions, SUN expects approximately $200 million to be spent on growth capital and approximately $90 million to be spent on maintenance capital for the full year 2017.
Growth capital spending includes the rebuilding of locations SUN is operating on the Indiana Toll Road.
SOURCE Sunoco LP
Article Date
2/23/2017Sunoco LP Announces Sunoco Ultratech(TM), a TOP TIER(TM) Fuel Blend
Source: PR Newswire
DALLAS, Feb. 20, 2017 /PRNewswire/ -- Sunoco Ultratech™, a high detergent fuel blend, will be available to customers starting April 1, 2017 across all grades of gasoline at every Sunoco station across the country. The introduction of Sunoco Ultratech is the company's latest effort to provide customers with the high quality fuel they've come to expect from Sunoco.
"This is an exciting announcement for the company and our customers," said Mark Burford, senior director of marketing strategy and design at Sunoco LP. "Customers tell us that they highly value the increased engine efficiency and durability benefits that may result from the regular use of high detergent fuel. With the introduction of Sunoco Ultratech, customers will have the same detergent level as Sunoco NASCAR fuel, continuing our tradition of high quality products."
Sunoco Ultratech meets the demanding specifications of the TOP TIER™ Detergent Gasoline Program, which was developed by eight automakers including BMW, General Motors, Fiat Chrysler Automobiles, Honda, Toyota, Volkswagen, Mercedes-Benz and Audi. Top Tier's enhanced gasoline detergency helps keep engines clean and ensure compliance with tighter vehicle emissions and engine durability requirements.
About Sunoco LP
Sunoco LP (NYSE: SUN) is a master limited partnership that operates approximately 1,345 convenience stores and retail fuel sites and distributes motor fuel to approximately 7,325 convenience stores, independent dealers, commercial customers and distributors located in 30 states. 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
Sunoco LP Contacts
Contact:
Jeamy Molina (Jeamy.molina@sunoco.com)
469-646-1776
SOURCE Sunoco LP
Article Date
2/20/20172/1/2017 - Sunoco LP Maintains Quarterly Distribution
Sunoco LP Maintains Quarterly Distribution
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
DALLAS, Feb. 1, 2017 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("SUN") announced that the Board of Directors of its general partner declared a quarterly distribution for the fourth quarter of 2016 of $0.8255 per common unit, which corresponds to $3.3020 per common unit on an annualized basis. The fourth quarter distribution is unchanged from the third quarter 2016 distribution and reflects a 3.0 percent increase compared to the distribution for the fourth quarter of 2015. The distribution will be paid on February 21, 2017 to common unitholders of record on February 13, 2017.
SUN will release its fourth quarter 2016 financial and operating results after the market closes on Wednesday, February 22. In conjunction with the news release, management will hold a conference call on Thursday, February 23, at 9:00 a.m. Central Time (10:00 a.m. Eastern Time) to discuss SUN's results.
|
By Phone: |
Dial 201-389-0877 at least 10 minutes before the call. A replay will be available through March 3 by dialing 201-612-7415 and using the conference ID 13654403#. |
|
By Webcast: |
Connect to the webcast via the Events and Presentations pages of SUN's Investor Relations website at www.SunocoLP.com. Please log in at least 10 minutes in advance to register and download any necessary software. A replay will be available shortly after the call. |
About Sunoco LP
Sunoco LP (NYSE: SUN) is a master limited partnership that operates approximately 1,345 convenience stores and retail fuel sites and distributes motor fuel to approximately 7,325 convenience stores, independent dealers, commercial customers and distributors located in 30 states. Our parent -- Energy Transfer Equity, L.P. (NYSE: ETE) -- owns SUN's general partner and incentive distribution rights.
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 SUN's distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, SUN's distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.
Contacts
Scott Grischow
Senior Director – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Patrick Graham
Senior Analyst – Investor Relations and Finance
(214) 840-5678, patrick.graham@sunoco.com
SOURCE Sunoco LP
Article Date
2/1/2017Sunoco LP Announces Real Estate Portfolio Strategy
Source: PR Newswire
DALLAS, Jan. 18, 2017 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("SUN" or the "Partnership") announced today that the Partnership has retained NRC Realty & Capital Advisors, LLC ("NRC") to assist with strategic alternatives for more than 100 real estate assets. Real estate assets included in this process are company-owned locations, undeveloped greenfield sites and other excess real estate.
Properties are located in Florida, Louisiana, Massachusetts, Michigan, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Texas and Virginia.
The properties will be sold through a sealed-bid sale in a 'buy one, some or all' format with bids due on March 7, 2017, for the operating sites and on April 4, 2017 for the surplus properties. The Partnership will review all bids before divesting any assets.
Information about the sale and a list of available sites can be obtained by visiting the NRC website at www.nrc.com/1702 or calling NRC at 800-747-3342 ext. 1702. Due diligence information on each property will also be available through the NRC website approximately 30 days prior to each sealed bid deadline.
About Sunoco LP
Sunoco LP (NYSE: SUN) is a master limited partnership that operates approximately 1,345 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
About NRC Realty & Capital Advisors LLC
NRC Realty & Capital Advisors, LLC provides a full array of real estate and financial advisory services to the convenience store and petroleum industries and specializes in the accelerated sale of commercial real estate. NRC's breadth of experience in the convenience store arena includes portfolio evaluation and analysis; refinancing, recapitalization & sale-leaseback financing options; and merger and acquisition advisory services. Since its inception in 1989, NRC has sold more than 15,000 properties. Clients include globally recognized companies in a variety of industries, including petroleum (Sunoco, BP and Shell), convenience stores (7-Eleven, CST Brands and Circle K), financial institutions (GE Capital, StanCorp Mortgage Investors and Fifth Third Bank) and industrial (YRC Worldwide). For more information, visit www.nrc.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
Sunoco LP Contacts
Investors:
Scott Grischow, Senior Director – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Patrick Graham, Senior Analyst – Investor Relations and Finance
(214) 840-5678, patrick.graham@sunoco.com
Media:
Alyson Gomez, Director - Communications
(469) 646-1758, alyson.gomez@sunoco.com
Jeff Shields, Manager - External Communications
(215) 977-6056, jeff.shields@sunoco.com
SOURCE Sunoco LP
Article Date
1/18/2017Sunoco LP Announces Amendment to its Credit Facilities
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
DALLAS, Dec.21, 2016 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("SUN" or the "Partnership") announced today it has amended certain key items of its $1.5 billion Revolving Credit Facility and $2.0 billion Term Loan Agreement to provide temporary covenant relief and financial flexibility over the upcoming quarters.
Key terms to the Amendment include:
SUN will file a Form 8-K with the United States Securities and Exchange Commission relating to the amendment, which will include a copy of the amendment and further information regarding its terms.
About Sunoco LP
Sunoco LP (NYSE: SUN) is a master limited partnership that operates approximately 1,345 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
Contacts
Investors:
Scott Grischow, Senior Director – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Patrick Graham, Senior Analyst – Investor Relations and Finance
(214) 840-5678, patrick.graham@sunoco.com
Media:
Alyson Gomez, Director - Communications
(469) 646-1758, alyson.gomez@sunoco.com
SOURCE Sunoco LP
Article Date
12/21/2016Sunoco LP to Participate in Wells Fargo Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
DALLAS, Dec. 6, 2016 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("SUN" or the "Partnership") announced that its senior management will hold 1x1 meetings with institutional investors today at the 15th Annual Wells Fargo Pipeline, MLP and Utility Symposium in New York City.
Presentation materials to be used during these meetings are available on the company's website at www.sunocolp.com in the Investor Relations section under Events & Presentations.
About Sunoco LP
Sunoco LP (NYSE: SUN) is a master limited partnership that operates approximately 1,345 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
Contacts
Investors:
Scott Grischow, Senior Director – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Patrick Graham, Senior Analyst – Investor Relations and Finance
(214) 840-5678, patrick.graham@sunoco.com
Media:
Jeff Shields, Communications Manager
(215) 977-6056, jeff.shields@sunoco.com
Logo - http://photos.prnewswire.com/prnh/20161011/427507LOGO
SOURCE Sunoco LP
Article Date
12/6/2016Sunoco LP Announces Third Quarter 2016 Financial and Operating Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
DALLAS, Nov. 9, 2016 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("SUN" or the "Partnership") today announced financial and operating results for the three-month period ended September 30, 2016.
Revenue totaled $4.1 billion, a decrease of 16.3 percent, compared to $4.9 billion in the third quarter of 2015. The decline was the result of a 47.1 cent per gallon decrease in the average selling price of fuel partly offset by increased merchandise sales and additional gallons sold.
Total gross profit was $577.4 million, compared to $524.8 million in the third quarter of 2015. Key drivers of the increase were higher wholesale motor fuel and merchandise profits partly offset by a decrease in retail motor fuel gross profit.
Income from operations was $104.2 million, versus $93.4 million in the third quarter of 2015, reflecting increased gross profit, partly offset by increased general and administrative and other operating expenses. The increase in general and administrative expenses was primarily related to relocation costs and associated expenses incurred with the opening of a corporate office in Dallas, Texas, while the increase in other operating expenses was driven by operating more stores on a year-over-year basis.
Net income attributable to partners was $44.6 million, or $0.24 per diluted unit, versus $27.5 million, or $0.30 per diluted unit, in the third quarter of 2015.
Adjusted EBITDA (1) for the quarter totaled $188.9 million, compared with $253.7 million in the third quarter of 2015. The unfavorable year-over-year comparison reflects lower fuel margins in both the retail and wholesale segments.
Distributable cash flow attributable to partners (1), as adjusted, was $124.1 million, compared to $112.4 million a year earlier.
On a weighted-average basis, fuel margin for all gallons sold decreased to 15.6 cents per gallon, compared to 18.6 cents per gallon in the third quarter of 2015. The decrease was primarily attributable to increased product costs experienced during the third quarter.
Net income attributable to partners for the wholesale segment was $47.3 million compared to a net income of $2.6 million a year ago. Adjusted EBITDA was $87.9 million, versus $107.0 million in the third quarter of last year. Total wholesale gallons sold were 1,371.2 million, compared with 1,308.8 million in the third quarter of 2015, an increase of 4.8 percent. This includes gallons sold to consignment stores and third-party customers, including independent dealers, fuel distributors and commercial customers. The Partnership earned 10.0 cents per gallon on these volumes, compared to 12.5 cents per gallon a year earlier.
Net loss attributable to partners for the retail segment was $2.8 million compared to a net income of $24.9 million a year ago. Adjusted EBITDA was $101.1 million, versus $146.7 million in the third quarter of last year. Total retail gallons sold increased by 1.8 percent to 651.4 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 27.5 cents per gallon on these volumes, compared to 31.2 cents per gallon a year earlier.
Total merchandise sales increased by 2.7 percent from a year ago to $605.3 million, reflecting the contribution from third party acquisitions and new-to-industry locations opened during the last 12 months. Merchandise sales contributed $192.3 million of gross profit with a retail merchandise margin of 31.8 percent, a 40 basis point increase from the third quarter of 2015.
Same-store merchandise sales decreased by 2.1 percent, reflecting continued weakness in SUN's convenience store operations in Texas, particularly in the oil producing regions. Same-store fuel sales decreased by 3.5 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 13.0 percent, and same-store fuel sales declined 13.7 percent. Excluding the oil producing regions, same-store sales decreased by 0.4 percent, and same-store gallons decreased by 2.3 percent.
As of September 30, SUN operated approximately 1,345 convenience stores and retail fuel outlets along the East Coast, in the Southwest and in Hawaii. Third party operated sites totaled 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
On October 26, the Board of Directors of SUN's general partner declared a distribution for the third quarter of 2016 of $0.8255 per unit, which corresponds to $3.3020 per unit on an annualized basis. This distribution is unchanged from the second quarter and represents a 10.7 percent increase compared with the third quarter of 2015. The distribution will be paid on November 15 to unitholders of record on November 7.
SUN's distribution coverage ratio for the third quarter was 1.25 times. The distribution coverage ratio on a trailing 12-month basis was 1.09 times.
Liquidity
At September 30, SUN had borrowings against its revolving line of credit of $958.2 million and other long-term debt of $3.6 billion. Availability on the revolving credit facility after borrowings and letters of credit commitments was $518.2 million. Net debt to Adjusted EBITDA, calculated in accordance with SUN's revolving credit facility, was 5.97 times at the end of the third 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, November 10, at 9:00 a.m. CT (10:00 a.m. ET) to discuss third 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 1,345 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
(214) 840-5660, scott.grischow@sunoco.com
Patrick Graham, Senior Analyst – Investor Relations and Finance
(214) 840-5678, patrick.graham@sunoco.com
Media:
Jeff Shields, Communications Manager
(215) 977-6056, jeff.shields@sunoco.com
– Financial Schedules Follow –
|
SUNOCO LP | ||||||||
|
September 30, |
December 31, | |||||||
|
Assets |
||||||||
|
Current assets: |
||||||||
|
Cash and cash equivalents |
$ |
80,565 |
$ |
72,627 | ||||
|
Advances to affiliates |
— |
365,536 | ||||||
|
Accounts receivable, net |
385,497 |
308,285 | ||||||
|
Accounts receivable from affiliates |
8,790 |
8,074 | ||||||
|
Inventories, net |
488,780 |
467,291 | ||||||
|
Other current assets |
97,621 |
46,080 | ||||||
|
Total current assets |
1,061,253 |
1,267,893 | ||||||
|
Property and equipment, net |
3,322,718 |
3,154,826 | ||||||
|
Other assets: |
||||||||
|
Goodwill |
3,236,398 |
3,111,262 | ||||||
|
Intangible assets, net |
1,290,764 |
1,259,440 | ||||||
|
Other noncurrent assets |
85,868 |
48,398 | ||||||
|
Total assets |
$ |
8,997,001 |
$ |
8,841,819 | ||||
|
Liabilities and equity |
||||||||
|
Current liabilities: |
||||||||
|
Accounts payable |
$ |
439,950 |
$ |
433,988 | ||||
|
Accounts payable to affiliates |
31,635 |
14,988 | ||||||
|
Advances from affiliates |
62,716 |
— | ||||||
|
Accrued expenses and other current liabilities |
321,349 |
307,939 | ||||||
|
Current maturities of long-term debt |
5,010 |
5,084 | ||||||
|
Total current liabilities |
860,660 |
761,999 | ||||||
|
Revolving line of credit |
958,236 |
450,000 | ||||||
|
Long-term debt, net |
3,515,194 |
1,502,531 | ||||||
|
Deferred tax liability |
694,995 |
694,383 | ||||||
|
Other noncurrent liabilities |
160,675 |
170,169 | ||||||
|
Total liabilities |
6,189,760 |
3,579,082 | ||||||
|
Commitments and contingencies (Note 11) |
||||||||
|
Equity: |
||||||||
|
Limited partners: |
||||||||
|
Common unitholders - public |
1,745,339 |
1,768,890 | ||||||
|
Common unitholders - affiliated |
1,061,902 |
1,275,558 | ||||||
|
Class A unitholders - held by subsidiary |
— |
— | ||||||
|
Class C unitholders - held by subsidiary |
— |
— | ||||||
|
Total partners' capital |
2,807,241 |
3,044,448 | ||||||
|
Predecessor equity |
— |
2,218,289 | ||||||
|
Total equity |
2,807,241 |
5,262,737 | ||||||
|
Total liabilities and equity |
$ |
8,997,001 |
$ |
8,841,819 | ||||
|
SUNOCO LP | ||||||||||||||||
|
For the Three Months Ended |
For the Nine Months Ended | |||||||||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||||||||
|
Revenues |
||||||||||||||||
|
Retail motor fuel |
$ |
1,401,830 |
$ |
1,580,815 |
$ |
3,876,542 |
$ |
4,597,670 | ||||||||
|
Wholesale motor fuel sales to third parties |
2,026,454 |
2,664,186 |
5,544,905 |
7,946,323 | ||||||||||||
|
Wholesale motor fuel sales to affiliates |
28,226 |
3,779 |
45,065 |
8,718 | ||||||||||||
|
Merchandise |
605,275 |
589,299 |
1,705,963 |
1,633,102 | ||||||||||||
|
Rental income |
22,883 |
20,949 |
67,582 |
61,265 | ||||||||||||
|
Other |
52,649 |
47,744 |
151,740 |
136,630 | ||||||||||||
|
Total revenues |
4,137,317 |
4,906,772 |
11,391,797 |
14,383,708 | ||||||||||||
|
Cost of sales |
||||||||||||||||
|
Retail motor fuel |
1,222,827 |
1,384,813 |
3,428,659 |
4,114,463 | ||||||||||||
|
Wholesale motor fuel |
1,916,511 |
2,591,791 |
5,136,083 |
7,623,330 | ||||||||||||
|
Merchandise |
412,983 |
404,179 |
1,160,001 |
1,122,970 | ||||||||||||
|
Other |
7,609 |
1,231 |
10,357 |
3,744 | ||||||||||||
|
Total cost of sales |
3,559,930 |
4,382,014 |
9,735,100 |
12,864,507 | ||||||||||||
|
Gross profit |
577,387 |
524,758 |
1,656,697 |
1,519,201 | ||||||||||||
|
Operating expenses |
||||||||||||||||
|
General and administrative |
82,774 |
61,547 |
201,688 |
167,747 | ||||||||||||
|
Other operating |
276,401 |
266,681 |
792,194 |
759,713 | ||||||||||||
|
Rent |
36,231 |
36,447 |
105,327 |
105,564 | ||||||||||||
|
Loss on disposal of assets |
203 |
747 |
2,918 |
894 | ||||||||||||
|
Depreciation, amortization and accretion |
77,628 |
65,984 |
234,418 |
202,927 | ||||||||||||
|
Total operating expenses |
473,237 |
431,406 |
1,336,545 |
1,236,845 | ||||||||||||
|
Income from operations |
104,150 |
93,352 |
320,152 |
282,356 | ||||||||||||
|
Interest expense, net |
54,289 |
28,517 |
132,565 |
57,692 | ||||||||||||
|
Income before income taxes |
49,861 |
64,835 |
187,587 |
224,664 | ||||||||||||
|
Income tax expense |
5,310 |
30,124 |
8,890 |
47,113 | ||||||||||||
|
Net income and comprehensive income |
44,551 |
34,711 |
178,697 |
177,551 | ||||||||||||
|
Less: Net income and comprehensive income attributable to noncontrolling interest |
— |
852 |
— |
2,545 | ||||||||||||
|
Less: Preacquisition income allocated to general partner |
— |
6,315 |
— |
117,728 | ||||||||||||
|
Net income and comprehensive income attributable to partners |
$ |
44,551 |
$ |
27,544 |
$ |
178,697 |
$ |
57,278 | ||||||||
|
Net income per limited partner unit: |
||||||||||||||||
|
Common (basic and diluted) |
$ |
0.24 |
$ |
0.30 |
$ |
1.25 |
$ |
0.96 | ||||||||
|
Subordinated (basic and diluted) |
$ |
— |
$ |
0.52 |
$ |
— |
$ |
1.21 | ||||||||
|
Weighted average limited partner units outstanding: |
||||||||||||||||
|
Common units - public (basic) |
49,588,960 |
24,340,677 |
49,588,960 |
21,486,878 | ||||||||||||
|
Common units - public (diluted) |
49,663,618 |
24,340,793 |
49,663,618 |
21,486,994 | ||||||||||||
|
Common units - affiliated | ||||||||||||||||