Sunoco LP
Company Summary
Financial Data:
NYSE:SUN from Google FinanceTickers:
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SUN - New York Stock Exchange
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Recent news
- 11/25/2020 - Sunoco Announces Early... (subscriber access)
- 11/10/2020 - Sunoco Upsizes Offering... (subscriber access)
- 11/10/2020 - Sunoco Removes $500MM... (subscriber access)
- 11/9/2020 - Sunoco LP Commences... (subscriber access)
- 11/9/2020 - Sunoco Commences Private... (subscriber access)
Company Transactions
Date: 2/28/2019
Type: Acquisition
NOTES:
Sunoco has entered into a deal with Attis Industries to sale their ethanol plant in Fulton, New York, for $20 million. Sunoco will also enter into a 10-year offtake agreement from the facility with Attis.
Sunoco has entered into a deal with Attis Industries to sale their ethanol plant in Fulton, New York, for $20 million. Sunoco will also enter into a 10-year offtake agreement from the facility with Attis.
REGIONS:
Northeast
Date: 1/18/2019
Type: Acquisition
NOTES:
Sunoco has closed on their acquisition of wholesale fuel distribution assets from Schmitt Sales, Inc along with convenience store locations from Speedway for $50 million. The stores will be converted to wholesale distribution sites, and the combined purchases will equate to an additional 180 millions of annual fuel distribution capacity.
Sunoco has closed on their acquisition of wholesale fuel distribution assets from Schmitt Sales, Inc along with convenience store locations from Speedway for $50 million. The stores will be converted to wholesale distribution sites, and the combined purchases will equate to an additional 180 millions of annual fuel distribution capacity.
Date: 12/31/2018
Type: Acquisition
BUYERS:
Sunoco LP
SELLERS:
American Midstream Partners, LP
DETAILS:
COST: 125 $MM
VOLUMES: 77.5 M Bbls/d
NOTES:
Sunoco LP acquired the refined products terminalling business from American Midstream Partners for $125 million. The refined products terminalling business are comprised of terminals located in Caddo Mills, Texas and North Little Rock, Arkansas with a combined 21 tanks, 1.3 million barrels of storage capacity, and 77,500 barrels per day of total throughput capacity. The transaction is anticipated to close in 4Q18.
Sunoco LP acquired the refined products terminalling business from American Midstream Partners for $125 million. The refined products terminalling business are comprised of terminals located in Caddo Mills, Texas and North Little Rock, Arkansas with a combined 21 tanks, 1.3 million barrels of storage capacity, and 77,500 barrels per day of total throughput capacity. The transaction is anticipated to close in 4Q18.
Date: 12/21/2018
Type: Acquisition
REGIONS:
South Central
Date: 10/17/2018
Type: Acquisition
NOTES:
Sunoco LP completed its acquisition of BRENCO Marketing Corporation's fuel business for roughly $24 million. The fuel business distributes roughly 95 million gallons of fuel annually through a network of roughly 160 dealer and commission agent-operated locations and 100 commercial accounts in Central and East Texas.
Sunoco LP completed its acquisition of BRENCO Marketing Corporation's fuel business for roughly $24 million. The fuel business distributes roughly 95 million gallons of fuel annually through a network of roughly 160 dealer and commission agent-operated locations and 100 commercial accounts in Central and East Texas.
Date: 8/2/2018
Type: Acquisition
NOTES:
The newly added wholesale fuels business of Sandford is responsible for distributing 115 million gallons of fuel annually to oil & gas customers in Texas & Oklahoma. Sunoco funded the deal with cash on hand and debt on their credit facility.
The newly added wholesale fuels business of Sandford is responsible for distributing 115 million gallons of fuel annually to oil & gas customers in Texas & Oklahoma. Sunoco funded the deal with cash on hand and debt on their credit facility.
REGIONS:
South Central
Date: 4/15/2018
Type: Acquisition
NOTES:
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 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.
REGIONS:
United States
Date: 10/30/2017
Type: Acquisition
NOTES:
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.
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.
REGIONS:
United States
Date: 4/17/2017
Type: Acquisition
BUYERS:
PBF Logistics LP
SELLERS:
Sunoco LP
ASSETS:
Toledo Refined Products Terminal
DETAILS:
COST: 10 $MM
NOTES:
REGIONS:
Midwest
Date: 10/12/2016
Type: Acquisition
NOTES:
The assets include 6 company-operated locations and supply contracts for 120 independent dealer-owned and operated stations (90 million gallons of gasoline annually).
The assets include 6 company-operated locations and supply contracts for 120 independent dealer-owned and operated stations (90 million gallons of gasoline annually).
REGIONS:
South Central
Date: 9/15/2016
Type: Acquisition
NOTES:
Acquisition of Emerge Energy Services fuels business assets
Acquisition of Emerge Energy Services fuels business assets
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
- 11/25/2020 - Sunoco Announces Early... (subscriber access)
- 11/10/2020 - Sunoco Upsizes Offering... (subscriber access)
- 11/10/2020 - Sunoco Removes $500MM... (subscriber access)
- 11/9/2020 - Sunoco LP Commences... (subscriber access)
- 11/9/2020 - Sunoco Commences Private... (subscriber access)
- 8/28/2020 - Sunoco Permitted to... (subscriber access)
- 9/11/2019 - Range Resources to Sell... (subscriber access)
- 8/8/2019 - Sunoco & Energy Transfer... (subscriber access)
- 5/9/2019 - Energy Transfer Signs... (subscriber access)
- 3/12/2019 - Sunoco Reports Upsizing... (subscriber access)
- 3/11/2019 - Sunoco Reports Private... (subscriber access)
- 1/18/2019 - Sunoco Divesting Ethanol... (subscriber access)
- 1/18/2019 - Sunoco Closes on... (subscriber access)
- 12/21/2018 - American Midstream... (subscriber access)
- 11/19/2018 - Sunoco LP Extends... (subscriber access)
- 11/15/2018 - Sunoco LP Acquires... (subscriber access)
- 11/13/2018 - Sunoco LP Extends... (subscriber access)
- 10/17/2018 - Sunoco LP Acquires... (subscriber access)
- 8/2/2018 - Sunoco LP Closes on... (subscriber access)
- 7/30/2018 - Sunoco Enters Into... (subscriber access)
- 4/26/2018 - Superior Plus Corp.... (subscriber access)
- 4/6/2018 - Sunoco LP Acquiring Fuel... (subscriber access)
- 4/2/2018 - Sunoco LP Completes Conversion of Southern Retail Sites to Single Commission Agent Model
- 1/25/2018 - Sunoco Redeeming All... (subscriber access)
- 1/10/2018 - Sunoco LP Prices &... (subscriber access)
- 10/19/2017 - Sunoco Terminates... (subscriber access)
- 10/11/2017 - Sunoco Seeking Consent... (subscriber access)
- 8/9/2017 - Sunoco Divesting U.S.... (subscriber access)
- 7/26/2017 - Construction Work Halted... (subscriber access)
- 7/11/2017 - Gas Innovations Enters... (subscriber access)
Press Releases
- 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, as adjusted, 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
- Adjusted EBITDA does not reflect cash requirements for such replacements; and
as not all companies use identical calculations, our presentation of Adjusted EBITDA and Distributable Cash Flow, as adjusted, may not be comparable to similarly titled measures of other companies. - Reduce full year 2020 growth capital expenditures to approximately $75 million from its previous guidance of approximately $130 million, a decrease of over 40%
- Reduce full year 2020 maintenance capital expenditures to $30 million from its previous guidance of $45 million, a decrease of over 30%
- Reduce operating costs, particularly targeting general and administrative and other operating expenses
- Maintain ample liquidity under its $1.5 billion revolving credit facility that matures in July 2023. The Partnership has no debt maturities prior to 2023
- Take appropriate actions to maintain a safe working environment for its employees and partners
- Enact policies and prepare contingency plans to support business and supply chain continuity
- Sold 2.1 billion gallons in the fourth quarter, up 3% from the fourth quarter of 2018. For the full year 2019, SUN sold a record 8.2 billion gallons, up 4% from a year ago. On a weighted-average basis, fuel margin for all gallons sold was 9.9 cents per gallon for the fourth quarter and 10.1 cents per gallon for the full year 2019.
- Reported current quarter cash coverage of 1.39 times and trailing twelve months coverage of 1.32 times. SUN's leverage ratio of net debt to Adjusted EBITDA, calculated in accordance with its credit facility, was 4.61 times at the end of the fourth quarter.
- Remained cost disciplined, with operating expenses(2) of $501 million for the full year 2019 and $119 million in the fourth quarter, down 13% and 20% year over year, respectively.
- Sold a record high 2.11 billion gallons in the third quarter, up 5% from the third quarter of 2018. On a weighted-average basis, fuel margin for all gallons sold was 11.6 cents per gallon.
- Reported current quarter cash coverage of 1.55 times and trailing twelve months coverage of 1.30 times. SUN's leverage ratio of net debt to Adjusted EBITDA, calculated in accordance with its credit facility, was 4.51 times at the end of the third quarter.
- Commissioned the J.C. Nolan diesel pipeline and completed the first deliveries in early August. The joint venture will continue to benefit Sunoco LP's financial results while also further diversifying operations outside of fuel distribution.
- Remained cost disciplined, with operating expenses(2) of $134 million in the third quarter, down 4% from the third quarter of 2018.
- Sold a record high 2.05 billion gallons in the second quarter, up 4% from the second quarter of 2018. On a weighted-average basis, fuel margin for all gallons sold was 9.1 cents per gallon, or 9.4 cents per gallon excluding the one-time expense of approximately $8 million this quarter.
- Reported current quarter cash coverage of 1.17 times and trailing twelve months coverage of 1.35 times. Excluding the one-time expense of approximately $8 million this quarter, SUN's distribution coverage ratio for the second quarter was 1.26 times and trailing twelve months coverage was 1.37 times. SUN's leverage ratio of net debt to Adjusted EBITDA, calculated in accordance with its credit facility, was 4.20 times at the end of the second quarter(2).
- Closed on the joint venture with Energy Transfer LP (NYSE: ET) ("Energy Transfer") on a diesel fuel pipeline to West Texas. Energy Transfer will operate the pipeline for the joint venture, which will transport diesel fuel from Hebert, Texas to a terminal in the Midland, Texas area. The pipeline is expected to have an initial capacity of 30,000 barrels per day and was successfully commissioned in August 2019. SUN expects its cash investment to be approximately $50 million.
- Reported current quarter cash coverage of 1.15 times and trailing twelve months coverage of 1.36 times. SUN's leverage ratio of net debt to Adjusted EBITDA, calculated in accordance with its credit facility, was 4.24 times at the end of the first quarter.
- Closed the private offering of $600 million in aggregate principal amount of 6.000% senior notes due 2027 on March 14, 2019. Net proceeds from this offering were used to repay a portion of the outstanding borrowings under SUN's existing $1.5 billion revolving credit facility.
- Signed a non-binding letter of intent to enter into a joint venture on a diesel fuel pipeline to West Texas. Energy Transfer LP (NYSE: ET) ("Energy Transfer") will operate the pipeline for the joint venture, which will transport diesel fuel from Hebert, Texas to a terminal in the Midland, Texas area. The pipeline is expected to have an initial capacity of 30,000 barrels per day and is anticipated to be in service before the end of 2019.
- Reported current quarter cash coverage of 1.33 times and trailing twelve months coverage of 1.32 times. SUN's leverage ratio of net debt to Adjusted EBITDA, calculated in accordance with its credit facility, was 4.16 times at the end of the fourth quarter.
- Completed the acquisition of BRENCO Marketing Corporation's fuel distribution business for approximately $24 million plus working capital adjustments. The transaction closed on October 16, 2018.
- Completed the acquisition of the refined products terminalling business from American Midstream Partners, LP for approximately $125 million plus working capital adjustments. The transaction closed on December 20, 2018.
- Completed the acquisition of the wholesale fuel distribution business from Schmitt Sales, Inc. and acquired certain convenience store locations from Speedway LLC for approximately $50 million plus working capital adjustments. The Schmitt Sales transaction closed on December 18, 2018 and the Speedway acquisition closed on January 29, 2019.
- Executed a definitive asset purchase agreement with Attis Industries Inc. in January 2019 for the sale of Sunoco's ethanol plant, including the grain malting operation, in Fulton, New York for total consideration of $20 million in cash plus working capital adjustments.
- Alerian Midstream Energy Index (AMNA). Altus Midstream (NASDAQ: ALTM) and Equitrans Midstream (NYSE: ETRN) will be added.
- Alerian US Midstream Energy Index (AMUS). Altus Midstream (ALTM) and Equitrans Midstream (ETRN) will be added.
- Alerian Midstream Energy Select Index (AMEI). CNX Midstream Partners (NYSE: CNXM) will be added.
- Alerian MLP Index (AMZ) and Alerian MLP Equal Weight Index (AMZE). Antero Midstream GP (NYSE: AMGP), American Midstream Partners (NYSE: AMID), CNX Midstream Partners (CNXM), Delek Logistics Partners (NYSE: DKL), EnLink Midstream LLC (NYSE: ENLC), EQGP Holdings (NYSE: EQGP), Green Plains Partners (NASDAQ: GPP), Hess Midstream Partners (NYSE: HESM), Martin Midstream Partners (NASDAQ: MMLP), Oasis Midstream Partners (NYSE: OMP), PBF Logistics (NYSE: PBFX), Sanchez Midstream Partners (NYSEAMERICAN: SNMP), TransMontaigne Partners (NYSE: TLP), USD Partners (NYSE: USDP), and Western Gas Equity Partners (NYSE: WGP) will be added.
- Alerian Energy Infrastructure Capital Strength Select Index (AMCS). Buckeye Partners (NYSE: BPL), Equitrans Midstream (ETRN), and HollyFrontier (NYSE: HFC) will be added. EQGP Holdings (EQGP) will be removed.
- Current quarter cash coverage of 1.73 times and trailing twelve months coverage of 1.24 times with leverage of 4.27 times at the end of the third quarter
- Net income of $112 million
- Adjusted EBITDA(1) of $208 million
- Distributable Cash Flow(1), as adjusted, of $149 million
- Completed the acquisition of BRENCO Marketing Corporation's fuel distribution business in October for approximately $24 million plus working capital adjustments
- The acquisition is accretive to Distributable Cash Flow in year one
Sunoco LP Announces Upsizing and Pricing of Private Offering of Senior Notes
Source: Sunoco LP
DALLAS, Nov. 9, 2020 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("Sunoco") today announced that it has priced at 100% an upsized private offering (the "offering") of $800 million in aggregate principal amount of 4.500% senior notes due 2029 (the "notes"). 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 November 24, 2020, subject to the satisfaction of customary closing conditions.
Sunoco intends to use the net proceeds from the offering and borrowings under its revolving credit facility to fund the separately announced tender offer for any and all of its outstanding 4.875% senior notes due 2023 (the "2023 notes") and, if applicable, a partial redemption of the 2023 notes.
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. Sunoco plans to offer and sell the notes only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act and to non-U.S. persons in transactions outside the United States pursuant to Regulation S under the Securities Act.
This news 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, nor does it constitute a notice of redemption under the optional redemption provisions of the indenture governing the 2023 notes.
About Sunoco LP
Sunoco LP is a master limited partnership with core operations that include the distribution of motor fuel to approximately 10,000 convenience stores, independent dealers, commercial customers and distributors located in more than 30 states as well as refined product transportation and terminalling assets. SUN's general partner is owned by Energy Transfer Operating, L.P., a wholly owned subsidiary of Energy Transfer LP (NYSE: ET).
Forward-Looking Statements
This news release may include certain statements concerning expectations for the future that are forward-looking statements as defined by federal law, including without limitation statements regarding the tender offer and the concurrent debt financing. 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. In addition to the risks and uncertainties previously disclosed, Sunoco has also been, or may in the future be, impacted by new or heightened risks related to the COVID-19 pandemic and the recent decline in commodity prices, and cannot predict the length and ultimate impact of those risks. 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, Vice President – 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
Media:
Alexis Daniel, Manager – Communications
(214) 981-0739, alexis.daniel@sunoco.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/sunoco-lp-announces-upsizing-and-pricing-of-private-offering-of-senior-notes-301169187.html
SOURCE Sunoco LP
Article Date
11/10/2020Sunoco LP Announces First Quarter 2020 Financial and Operating Results
Source: Sunoco LP
DALLAS, May 11, 2020 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("SUN" or the "Partnership") today reported financial and operating results for the three-month period ended March 31, 2020.
"Our employees have been working on the front lines to continue to serve our country, communities and customers," said Joe Kim, CEO of Sunoco LP. "Our best wishes go out to those affected by COVID-19 and I would like to personally thank our employees and fuel distribution partners for their dedication during this unprecedented time. We have built a resilient business model to withstand various headwinds. We started the year on solid footing and delivered strong first quarter results even with the onset of the pandemic in March. We will continue to take proactive steps to manage through the crisis and ensure a stable, long-term future for Sunoco."
Financial and Operational Highlights
For the three months ended March 31, 2020, net loss was $128 million versus a net income of $109 million in the first quarter of 2019. The net loss includes approximately $227 million of non-cash inventory adjustments resulting from the decline in the price of RBOB.
Adjusted EBITDA(1) for the quarter totaled $209 million compared with $153 million in the first quarter of 2019. This year-over-year increase reflects higher reported fuel margins of 13.1 cents per gallon driven by a decline in the price of RBOB and the receipt of a $13 million annual make-up payment under the fuel supply agreement with 7-Eleven, Inc. Adjusted EBITDA also included an increase in non motor fuel sales gross profit related to an $18 million favorable legal settlement and an increase in other operating expense related to current expected credit losses of approximately $16 million.
Distributable Cash Flow, as adjusted(1), for the quarter was $159 million, compared to $99 million a year ago.
The Partnership sold 1.9 billion gallons in the first quarter, down 2% from the first quarter of 2019. On a weighted-average basis, fuel margin for all gallons sold was 13.1 cents per gallon for the first quarter compared to 9.9 cents per gallon a year ago.
Distribution and Coverage
On April 2, 2020, the Board of Directors of SUN's general partner declared a distribution for the first quarter of 2020 of $0.8255 per unit, which corresponds to $3.3020 per unit on an annualized basis. The distribution will be paid on May 19, 2020 to common unitholders of record on May 7, 2020. Current quarter cash coverage was 1.84 times and trailing twelve months coverage was 1.49 times.
Liquidity and Leverage
At March 31, 2020, SUN had borrowings of $265 million against its revolving credit facility and other long-term debt of $2.9 billion. The Partnership maintained ample liquidity of $1.2 billion at the end of the quarter under its $1.5 billion revolving credit facility that matures in July 2023 and has no debt maturities prior to 2023. SUN's leverage ratio of net debt to Adjusted EBITDA, calculated in accordance with its credit facility, was 4.39 times at the end of the first quarter.
Capital Spending
SUN's gross capital expenditures for the first quarter were $41 million, which included $36 million for growth capital and $5 million for maintenance capital.
2020 Business Outlook
The Partnership revised its 2020 capital guidance by reducing full year growth capital expenditures to approximately $75 million and maintenance capital expenditures to $30 million. SUN also began efforts in the second quarter to reduce total operating expenses(2) by $55 to $70 million over the remainder of the year. SUN lowered 2020 full year operating expense guidance to a range of $460 to $475 million. The combination of unprecedented declines in fuel demand and a volatile commodity price environment will affect the Partnership's outlook for full year 2020 fuel volumes and margins. As a result, SUN is withdrawing its previous guidance on 2020 fuel volume, margin and adjusted EBITDA.
SUN's segment results and other supplementary data are provided after the financial tables below.
(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) | Operating expenses include general and administrative, other operating and lease expenses. |
Earnings Conference Call
Sunoco LP management will hold a conference call on Tuesday, May 12, at 8:00 a.m. CT (9:00 a.m. ET) to discuss 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 with core operations that include the distribution of motor fuel to approximately 10,000 convenience stores, independent dealers, commercial customers and distributors located in more than 30 states as well as refined product transportation and terminalling assets. SUN's general partner is owned by Energy Transfer Operating, L.P., a wholly owned subsidiary of Energy Transfer LP (NYSE: ET).
Forward-Looking Statements
This news 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. In addition to the risks and uncertainties previously disclosed, the Partnership has also been, or may in the future be, impacted by new or heightened risks related to the COVID-19 pandemic and the recent sharp decline in commodity prices, and we cannot predict the length and ultimate impact of those risks. 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, Vice President – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Derek Rabe, CFA, Manager – Investor Relations, Growth and Strategy
(214) 840-5553, derek.rabe@sunoco.com
Media:
Alexis Daniel, Manager – Communications
(214) 981-0739, alexis.daniel@sunoco.com
– Financial Schedules Follow –
SUNOCO LP CONSOLIDATED BALANCE SHEETS (Dollars in millions) (unaudited) | ||||||||
March 31, | December 31, | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 31 | $ | 21 | ||||
Accounts receivable, net | 162 | 399 | ||||||
Receivables from affiliates | 11 | 12 | ||||||
Inventories, net | 182 | 419 | ||||||
Other current assets | 83 | 73 | ||||||
Total current assets | 469 | 924 | ||||||
Property and equipment | 2,170 | 2,134 | ||||||
Accumulated depreciation | (720) | (692) | ||||||
Property and equipment, net | 1,450 | 1,442 | ||||||
Other assets: | ||||||||
Finance lease right-of-use assets, net | 27 | 29 | ||||||
Operating lease right-of-use assets, net | 537 | 533 | ||||||
Goodwill | 1,555 | 1,555 | ||||||
Intangible assets | 905 | 906 | ||||||
Accumulated amortization | (274) | (260) | ||||||
Intangible assets, net | 631 | 646 | ||||||
Other noncurrent assets | 173 | 188 | ||||||
Investment in unconsolidated affiliate | 135 | 121 | ||||||
Total assets | $ | 4,977 | $ | 5,438 | ||||
Liabilities and equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 162 | $ | 445 | ||||
Accounts payable to affiliates | 27 | 49 | ||||||
Accrued expenses and other current liabilities | 171 | 219 | ||||||
Operating lease current liabilities | 20 | 20 | ||||||
Current maturities of long-term debt | 12 | 11 | ||||||
Total current liabilities | 392 | 744 | ||||||
Operating lease noncurrent liabilities | 535 | 530 | ||||||
Revolving line of credit | 265 | 162 | ||||||
Long-term debt, net | 2,896 | 2,898 | ||||||
Advances from affiliates | 139 | 140 | ||||||
Deferred tax liability | 109 | 109 | ||||||
Other noncurrent liabilities | 95 | 97 | ||||||
Total liabilities | 4,431 | 4,680 | ||||||
Equity: | ||||||||
Limited partners: | ||||||||
Common unitholders | 546 | 758 | ||||||
Class C unitholders - held by subsidiaries | — | — | ||||||
Total equity | 546 | 758 | ||||||
Total liabilities and equity | $ | 4,977 | $ | 5,438 | ||||
SUNOCO LP CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Dollars in millions, except per unit data) (unaudited) | ||||||||
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
Revenues: | ||||||||
Motor fuel sales | $ | 3,166 | $ | 3,583 | ||||
Non motor fuel sales | 71 | 74 | ||||||
Lease income | 35 | 35 | ||||||
Total revenues | 3,272 | 3,692 | ||||||
Cost of sales and operating expenses: | ||||||||
Cost of sales | 3,164 | 3,322 | ||||||
General and administrative | 34 | 27 | ||||||
Other operating | 95 | 84 | ||||||
Lease expense | 14 | 14 | ||||||
Loss on disposal of assets and impairment charges | 2 | 48 | ||||||
Depreciation, amortization and accretion | 45 | 45 | ||||||
Total cost of sales and operating expenses | 3,354 | 3,540 | ||||||
Operating income (loss) | (82) | 152 | ||||||
Other income (expense): | ||||||||
Interest expense, net | (44) | (42) | ||||||
Other income (expense), net | — | (3) | ||||||
Equity in earnings of unconsolidated affiliate | 1 | — | ||||||
Income (loss) before income taxes | (125) | 107 | ||||||
Income tax expense (benefit) | 3 | (2) | ||||||
Net income (loss) and comprehensive income (loss) | $ | (128) | $ | 109 | ||||
Net income (loss) per common unit: | ||||||||
Common units - basic | $ | (1.78) | $ | 1.08 | ||||
Common units - diluted | $ | (1.78) | $ | 1.07 | ||||
Weighted average common units outstanding: | ||||||||
Common units - basic | 83,013,768 | 82,711,188 | ||||||
Common units - diluted | 83,013,768 | 83,380,167 | ||||||
Cash distributions per unit | $ | 0.8255 | $ | 0.8255 | ||||
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.
The key operating metrics by segment and accompanying footnotes set forth below are presented for the three months ended March 31, 2020 and 2019 and have been derived from our historical consolidated financial statements.
Three Months Ended March 31, | ||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||
Fuel Distribution and Marketing | All Other | Total | Fuel Distribution and Marketing | All Other | Total | |||||||||||||||||||
(dollars and gallons in millions, except gross profit per gallon) | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Motor fuel sales | $ | 3,039 | $ | 127 | $ | 3,166 | $ | 3,442 | $ | 141 | $ | 3,583 | ||||||||||||
Non motor fuel sales | 11 | 60 | 71 | 19 | 55 | 74 | ||||||||||||||||||
Lease income | 30 | 5 | 35 | 32 | 3 | 35 | ||||||||||||||||||
Total revenues | $ | 3,080 | $ | 192 | $ | 3,272 | $ | 3,493 | $ | 199 | $ | 3,692 | ||||||||||||
Gross profit (1): | ||||||||||||||||||||||||
Motor fuel sales | $ | (6) | $ | 27 | $ | 21 | $ | 258 | $ | 27 | $ | 285 | ||||||||||||
Non motor fuel sales | 11 | 41 | 52 | 17 | 33 | 50 | ||||||||||||||||||
Lease | 30 | 5 | 35 | 32 | 3 | 35 | ||||||||||||||||||
Total gross profit | $ | 35 | $ | 73 | $ | 108 | $ | 307 | $ | 63 | $ | 370 | ||||||||||||
Net income (loss) and comprehensive income (loss) | $ | (157) | $ | 29 | $ | (128) | $ | 137 | $ | (28) | $ | 109 | ||||||||||||
Adjusted EBITDA (2) | $ | 160 | $ | 49 | $ | 209 | $ | 118 | $ | 35 | $ | 153 | ||||||||||||
Operating Data: | ||||||||||||||||||||||||
Total motor fuel gallons sold | 1,898 | 1,941 | ||||||||||||||||||||||
Motor fuel gross profit cents per gallon (3) | 13.1 | ¢ | 9.9 | ¢ | ||||||||||||||||||||
The following table presents a reconciliation of Adjusted EBITDA to net income (loss) and Adjusted EBITDA to Distributable Cash Flow, as adjusted, for the three months ended March 31, 2020 and 2019:
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
(in millions) | |||||||
Adjusted EBITDA: | |||||||
Fuel distribution and marketing | $ | 160 | $ | 118 | |||
All other | 49 | 35 | |||||
Total Adjusted EBITDA | 209 | 153 | |||||
Depreciation, amortization and accretion | (45) | (45) | |||||
Interest expense, net | (44) | (42) | |||||
Non-cash unit-based compensation expense | (4) | (3) | |||||
Loss on disposal of assets and impairment charges | (2) | (48) | |||||
Unrealized gain (loss) on commodity derivatives | (6) | 6 | |||||
Inventory adjustments | (227) | 93 | |||||
Equity in earnings of unconsolidated affiliate | 1 | — | |||||
Adjusted EBITDA related to unconsolidated affiliate | (2) | — | |||||
Other non-cash adjustments | (5) | (7) | |||||
Income tax (expense) benefit | (3) | 2 | |||||
Net income (loss) and comprehensive income (loss) | $ | (128) | $ | 109 | |||
Adjusted EBITDA (2) | $ | 209 | $ | 153 | |||
Adjusted EBITDA related to unconsolidated affiliate | 2 | — | |||||
Distributable cash flow from unconsolidated affiliate | (2) | — | |||||
Cash interest expense | 43 | 40 | |||||
Current income tax expense | 2 | 12 | |||||
Maintenance capital expenditures | 5 | 4 | |||||
Distributable Cash Flow | 159 | 97 | |||||
Transaction-related expenses | — | 2 | |||||
Distributable Cash Flow, as adjusted (2) | $ | 159 | $ | 99 | |||
Distributions to Partners: | |||||||
Limited Partners | $ | 69 | $ | 68 | |||
General Partners | 18 | 18 | |||||
Total distributions to be paid to partners | $ | 87 | $ | 86 | |||
Common Units outstanding - end of period | 83.0 | 82.7 | |||||
Distribution coverage ratio (4) | 1.84x | 1.15x | |||||
____________________ | |
(1) | Excludes depreciation, amortization and accretion. |
(2) | Adjusted EBITDA is defined as earnings before net interest expense, income taxes, depreciation, amortization and accretion expense, allocated non-cash compensation expense, unrealized gains and losses on commodity derivatives and inventory adjustments, and certain other operating expenses reflected in net income that we do not believe are indicative of ongoing core operations, such as gain or loss on disposal of assets and non-cash impairment charges. We define Distributable Cash Flow, as adjusted, as Adjusted EBITDA less cash interest expense, including the accrual of interest expense related to our long-term debt which is paid on a semi-annual basis, Series A Preferred distribution, current income tax expense, maintenance capital expenditures and other non-cash adjustments. |
We believe Adjusted EBITDA and Distributable Cash Flow, as adjusted, are useful to investors in evaluating our operating performance because: | |
Adjusted EBITDA and Distributable Cash Flow, as adjusted, 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. Adjusted EBITDA and Distributable Cash Flow, as adjusted, 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: | |
Adjusted EBITDA reflects amounts for the unconsolidated affiliate based on the same recognition and measurement methods used to record equity in earnings of unconsolidated affiliate. Adjusted EBITDA related to unconsolidated affiliate excludes the same items with respect to the unconsolidated affiliate as those excluded from the calculation of Adjusted EBITDA, such as interest, taxes, depreciation, depletion, amortization and other non-cash items. Although these amounts are excluded from Adjusted EBITDA related to unconsolidated affiliate, such exclusion should not be understood to imply that we have control over the operations and resulting revenues and expenses of such affiliate. We do not control our unconsolidated affiliate; therefore, we do not control the earnings or cash flows of such affiliate. The use of Adjusted EBITDA or Adjusted EBITDA related to unconsolidated affiliate as an analytical tool should be limited accordingly. | |
(3) | Includes other non-cash adjustments and excludes the impact of inventory adjustments consistent with the definition of Adjusted EBITDA. |
(4) | The distribution coverage ratio for a period is calculated as Distributable Cash Flow attributable to partners, as adjusted, divided by distributions expected to be paid to partners of Sunoco LP in respect of such a period. |
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SOURCE Sunoco LP
Article Date
5/11/20204/2/2020 - Sunoco LP Maintains Quarterly Distribution
Sunoco LP Maintains Quarterly Distribution
Source: Sunoco LP
DALLAS, April 2, 2020 /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 2020 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 19, 2020 to common unitholders of record on May 7, 2020.
SUN will release its first quarter 2020 financial and operating results after the market closes on Monday, May 11. In conjunction with the news release, management will hold a conference call on Tuesday, May 12 at 8:00 a.m. Central Time (9:00 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 19, 2020 by dialing 877-660-6853 (toll free) or 201-612-7415 and using the conference ID 13701564#. |
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 with core operations that include the distribution of motor fuel to approximately 10,000 convenience stores, independent dealers, commercial customers and distributors located in more than 30 states as well as refined product transportation and terminalling assets. SUN's general partner is owned by Energy Transfer Operating, L.P., a wholly owned subsidiary of Energy Transfer LP (NYSE: ET).
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
Scott Grischow
Vice President – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Derek Rabe, CFA
Manager – Investor Relations, Growth and Strategy
(214) 840-5553, derek.rabe@sunoco.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/sunoco-lp-maintains-quarterly-distribution-301034490.html
SOURCE Sunoco LP
Article Date
4/2/2020Sunoco LP Announces Revised Capital Guidance and Provides an Operational Update
Source: Sunoco LP
DALLAS, March 24, 2020 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("SUN" or the "Partnership") today provided revised capital guidance and an operational update in response to the COVID-19 pandemic.
"Our products are critical to United States infrastructure and SUN is committed to responding with actions that will ensure that there is continuity of supply," said Joe Kim, CEO of Sunoco LP. "Furthermore, the Partnership is undertaking immediate action to ensure continued financial stability."
SUN is taking the following proactive measures:
SUN plans to provide a more comprehensive update as part of its first quarter earnings release in May.
Sunoco LP (NYSE: SUN) is a master limited partnership with core operations that include the distribution of motor fuel to approximately 10,000 convenience stores, independent dealers, commercial customers and distributors located in more than 30 states as well as refined product transportation and terminalling assets. SUN's general partner is owned by Energy Transfer Operating, L.P., a wholly owned subsidiary of Energy Transfer LP (NYSE: ET).
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, Vice President – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Derek Rabe, CFA, Manager – Investor Relations, Growth and Strategy
(214) 840-5553, derek.rabe@sunoco.com
Media:
Alexis Daniel, Manager – Communications
(214) 981-0739, alexis.daniel@sunoco.com
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SOURCE Sunoco LP
Article Date
3/24/20202/21/2020 - Sunoco LP Files 2019 Annual Report on Form 10-K
Sunoco LP Files 2019 Annual Report on Form 10-K
Source: Sunoco LP
DALLAS, Feb. 21, 2020 /PRNewswire/ -- Sunoco LP (NYSE: SUN) (the "Partnership") on February 21, 2020, filed operational and financial results for the fiscal year ended December 31, 2019 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 "Tax Information" to receive an email notification when tax year 2019 information is available or to sign up to receive your K-1 electronically.
Sunoco LP (NYSE: SUN) is a master limited partnership with core operations that include the distribution of motor fuel to approximately 10,000 convenience stores, independent dealers, commercial customers and distributors located in more than 30 states as well as refined product transportation and terminalling assets. SUN's general partner is owned by Energy Transfer Operating, L.P., a wholly owned subsidiary of Energy Transfer LP (NYSE: ET).
Contacts
Investors:
Scott Grischow, Vice President – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Derek Rabe, CFA, Manager – Investor Relations, Growth and Strategy
(214) 840-5553, derek.rabe@sunoco.com
Media:
Alexis Daniel, Manager – Communications
(214) 981-0739, alexis.daniel@sunoco.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/sunoco-lp-files-2019-annual-report-on-form-10-k-301009296.html
SOURCE Sunoco LP
Article Date
2/21/2020Sunoco LP Announces Fourth Quarter and Full Year 2019 Financial and Operating Results
Source: Sunoco LP
DALLAS, Feb. 19, 2020 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("SUN" or the "Partnership") today reported financial and operating results for the three- and twelve-month periods ended December 31, 2019.
For the three months ended December 31, 2019, net income was $83 million versus a net loss of $72 million in the fourth quarter of 2018.
Adjusted EBITDA(1) for the quarter totaled $168 million compared with $180 million in the fourth quarter of 2018.
Distributable Cash Flow, as adjusted(1), for the quarter was $120 million, compared to $114 million a year ago.
For the twelve months ended December 31, 2019, net income was $313 million versus a net loss of $207 million in 2018.
Adjusted EBITDA(1) for the full year 2019 totaled $665 million, up 4% from $638 million a year ago. This year-over-year increase reflects a 4% increase in gallons to a record high 8.2 billion, an increase in lease gross profit and a 13% decline in operating expenses(2).
Distributable Cash Flow, as adjusted(1), for 2019 was $453 million, compared to $455 million a year ago.
Recent Accomplishments and Other Developments
Distribution
On January 27, 2020, the Board of Directors of SUN's general partner declared a distribution for the fourth quarter of 2019 of $0.8255 per unit, which corresponds to $3.3020 per unit on an annualized basis. The distribution will be paid on February 19, 2020 to common unitholders of record on February 7, 2020.
Liquidity
At December 31, 2019, SUN had borrowings of $162 million against its revolving line of credit and other long-term debt of $2.9 billion.
Capital Spending and Other Investments
SUN's gross capital expenditures for the fourth quarter were $45 million, which included $28 million for growth capital and $17 million for maintenance capital.
SUN spent $116 million on growth capital for the full year 2019, including $8 million of growth capital toward the J.C. Nolan joint venture with Energy Transfer. With an additional $45 million investment on the J.C. Nolan joint venture, SUN's total investment in 2019 was $161 million.
SUN spent $40 million on maintenance capital for the full year 2019.
SUN's segment results and other supplementary data are provided after the financial tables below.
(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) | Operating expenses include general and administrative, other operating and lease expenses. |
Earnings Conference Call
Sunoco LP management will hold a conference call on Thursday, February 20, at 8:00 a.m. CT (9:00 a.m. ET) to discuss 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 with core operations that include the distribution of motor fuel to approximately 10,000 convenience stores, independent dealers, commercial customers and distributors located in more than 30 states as well as refined product transportation and terminalling assets. SUN's general partner is owned by Energy Transfer Operating, L.P., a wholly owned subsidiary of Energy Transfer LP (NYSE: ET).
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, Vice President – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Derek Rabe, CFA, Manager – Investor Relations, Growth and Strategy
(214) 840-5553, derek.rabe@sunoco.com
Media:
Alexis Daniel, Manager – Communications
(214) 981-0739, alexis.daniel@sunoco.com
– Financial Schedules Follow –
SUNOCO LP | |||||||
December 31, | December 31, | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 21 | $ | 56 | |||
Accounts receivable, net | 399 | 374 | |||||
Receivables from affiliates | 12 | 37 | |||||
Inventories, net | 419 | 374 | |||||
Other current assets | 73 | 64 | |||||
Total current assets | 924 | 905 | |||||
Property and equipment | 2,134 | 2,133 | |||||
Accumulated depreciation | (692) | (587) | |||||
Property and equipment, net | 1,442 | 1,546 | |||||
Other assets: | |||||||
Finance lease right-of-use assets, net | 29 | — | |||||
Operating lease right-of-use assets, net | 533 | — | |||||
Goodwill | 1,555 | 1,559 | |||||
Intangible assets, net | 646 | 708 | |||||
Other noncurrent assets | 188 | 161 | |||||
Investment in unconsolidated affiliate | 121 | — | |||||
Total assets | $ | 5,438 | $ | 4,879 | |||
Liabilities and equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 445 | $ | 412 | |||
Accounts payable to affiliates | 49 | 149 | |||||
Accrued expenses and other current liabilities | 219 | 299 | |||||
Operating lease current liabilities | 20 | — | |||||
Current maturities of long-term debt | 11 | 5 | |||||
Total current liabilities | 744 | 865 | |||||
Operating lease non-current liabilities | 530 | — | |||||
Revolving line of credit | 162 | 700 | |||||
Long-term debt, net | 2,898 | 2,280 | |||||
Advances from affiliates | 140 | 24 | |||||
Deferred tax liability | 109 | 103 | |||||
Other noncurrent liabilities | 97 | 123 | |||||
Total liabilities | 4,680 | 4,095 | |||||
Commitments and contingencies | |||||||
Equity: | |||||||
Limited partners: | |||||||
Common unitholders | 758 | 784 | |||||
Class C unitholders - held by subsidiary | — | — | |||||
Total equity | 758 | 784 | |||||
Total liabilities and equity | $ | 5,438 | $ | 4,879 | |||
SUNOCO LP | |||||||||||||||
Three Months Ended | Year Ended December 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(dollars in millions, except unit and per unit amounts) | |||||||||||||||
Revenues: | |||||||||||||||
Motor fuel sales | $ | 4,002 | $ | 3,784 | $ | 16,176 | $ | 16,504 | |||||||
Non motor fuel sales | 61 | 54 | 278 | 360 | |||||||||||
Lease income | 35 | 39 | 142 | 130 | |||||||||||
Total revenues | 4,098 | 3,877 | 16,596 | 16,994 | |||||||||||
Cost of sales and operating expenses: | |||||||||||||||
Cost of sales | 3,813 | 3,694 | 15,380 | 15,872 | |||||||||||
General and administrative | 35 | 38 | 136 | 141 | |||||||||||
Other operating | 68 | 93 | 304 | 363 | |||||||||||
Lease expense | 16 | 18 | 61 | 72 | |||||||||||
Loss on disposal of assets and impairment charges | 22 | 22 | 68 | 19 | |||||||||||
Depreciation, amortization and accretion | 46 | 50 | 183 | 182 | |||||||||||
Total cost of sales and operating expenses | 4,000 | 3,915 | 16,132 | 16,649 | |||||||||||
Operating income (loss) | 98 | (38) | 464 | 345 | |||||||||||
Other expenses (income): | |||||||||||||||
Interest expense, net | 43 | 39 | 173 | 144 | |||||||||||
Other expense (income), net | — | — | (3) | — | |||||||||||
Equity in earnings of unconsolidated affiliate | (2) | — | (2) | — | |||||||||||
Loss on extinguishment of debt and other, net | — | — | — | 109 | |||||||||||
Income (loss) from continuing operations before income taxes | 57 | (77) | 296 | 92 | |||||||||||
Income tax expense (benefit) | (26) | (5) | (17) | 34 | |||||||||||
Income (loss) from continuing operations | 83 | (72) | 313 | 58 | |||||||||||
Loss from discontinued operations, net of income taxes | — | — | — | (265) | |||||||||||
Net income (loss) and comprehensive income (loss) | $ | 83 | $ | (72) | $ | 313 | $ | (207) | |||||||
Net income (loss) per common unit - basic: | |||||||||||||||
Continuing operations | $ | 0.76 | $ | (1.11) | $ | 2.84 | $ | (0.25) | |||||||
Discontinued operations | — | — | — | (3.14) | |||||||||||
Net income (loss) | $ | 0.76 | $ | (1.11) | $ | 2.84 | $ | (3.39) | |||||||
Net income (loss) per common unit - diluted: | |||||||||||||||
Continuing operations | $ | 0.75 | $ | (1.11) | $ | 2.82 | $ | (0.25) | |||||||
Discontinued operations | — | — | — | (3.14) | |||||||||||
Net income (loss) | $ | 0.75 | $ | (1.11) | $ | 2.82 | $ | (3.39) | |||||||
Weighted average limited partner units outstanding: | |||||||||||||||
Common units - basic | 82,813,411 | 82,543,312 | 82,755,520 | 84,299,893 | |||||||||||
Common units - diluted | 83,713,959 | 83,226,399 | 83,551,962 | 84,820,570 | |||||||||||
Cash distribution per unit | $ | 0.8255 | $ | 0.8255 | $ | 3.3020 | $ | 3.3020 | |||||||
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. Our financial statements reflect two reportable segments, Fuel Distribution and Marketing and All Other.
The key operating metrics by segment and accompanying footnotes set forth below are presented for the three months and years ended December 31, 2019 and 2018 and have been derived from our historical consolidated financial statements.
For the Three Months Ended December 31, | |||||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||||
Fuel | All | Total | Fuel | All | Total | ||||||||||||||||||||
(dollars and gallons in millions, except gross profit per gallon) | |||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||
Motor fuel sales | $ | 3,846 | $ | 156 | $ | 4,002 | $ | 3,606 | $ | 178 | $ | 3,784 | |||||||||||||
Non motor fuel sales | 13 | 48 | 61 | 7 | 47 | 54 | |||||||||||||||||||
Lease income | 37 | (2) | 35 | 36 | 3 | 39 | |||||||||||||||||||
Total revenues | $ | 3,896 | $ | 202 | $ | 4,098 | $ | 3,649 | $ | 228 | $ | 3,877 | |||||||||||||
Gross profit (1): | |||||||||||||||||||||||||
Motor fuel sales | $ | 193 | $ | 20 | $ | 213 | $ | 86 | $ | 31 | $ | 117 | |||||||||||||
Non motor fuel sales | 13 | 24 | 37 | 5 | 22 | 27 | |||||||||||||||||||
Lease | 37 | (2) | 35 | 36 | 3 | 39 | |||||||||||||||||||
Total gross profit | $ | 243 | $ | 42 | $ | 285 | $ | 127 | $ | 56 | $ | 183 | |||||||||||||
Net income (loss) and comprehensive income (loss) from continuing operations | 57 | 26 | 83 | (52) | (20) | (72) | |||||||||||||||||||
Loss from discontinued operations, net of taxes | — | — | — | — | — | — | |||||||||||||||||||
Net income (loss) and comprehensive income (loss) | $ | 57 | $ | 26 | $ | 83 | $ | (52) | $ | (20) | $ | (72) | |||||||||||||
Adjusted EBITDA (2) | $ | 147 | $ | 21 | $ | 168 | $ | 159 | $ | 21 | $ | 180 | |||||||||||||
Operating data: | |||||||||||||||||||||||||
Motor fuel gallons sold (3) | 2,087 | 2,021 | |||||||||||||||||||||||
Motor fuel gross profit cents per gallon (3) (4) | 9.9 | ¢ | 12.4 | ¢ | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||||
Fuel | All | Total | Fuel | All | Total | ||||||||||||||||||||
(dollars and gallons in millions, except gross profit per gallon) | |||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||
Motor fuel sales | $ | 15,522 | $ | 654 | $ | 16,176 | $ | 15,466 | $ | 1,038 | $ | 16,504 | |||||||||||||
Non motor fuel sales | 62 | 216 | 278 | 48 | 312 | 360 | |||||||||||||||||||
Lease income | 131 | 11 | 142 | 118 | 12 | 130 | |||||||||||||||||||
Total revenues | $ | 15,715 | $ | 881 | $ | 16,596 | $ | 15,632 | $ | 1,362 | $ | 16,994 | |||||||||||||
Gross profit (1): | |||||||||||||||||||||||||
Motor fuel sales | $ | 817 | $ | 89 | $ | 906 | $ | 673 | $ | 123 | $ | 796 | |||||||||||||
Non motor fuel sales | 53 | 115 | 168 | 40 | 156 | 196 | |||||||||||||||||||
Lease | 131 | 11 | 142 | 118 | 12 | 130 | |||||||||||||||||||
Total gross profit | $ | 1,001 | $ | 215 | $ | 1,216 | $ | 831 | $ | 291 | $ | 1,122 | |||||||||||||
Net income (loss) and comprehensive income (loss) from continuing operations | 290 | 23 | 313 | 80 | (22) | 58 | |||||||||||||||||||
Loss from discontinued operations, net of taxes | — | — | — | — | (265) | (265) | |||||||||||||||||||
Net income (loss) and comprehensive income (loss) | $ | 290 | $ | 23 | $ | 313 | $ | 80 | $ | (287) | $ | (207) | |||||||||||||
Adjusted EBITDA (2) | $ | 545 | $ | 120 | $ | 665 | $ | 554 | $ | 84 | $ | 638 | |||||||||||||
Operating data: | |||||||||||||||||||||||||
Motor fuel gallons sold (3) | 8,193 | 7,859 | |||||||||||||||||||||||
Motor fuel gross profit cents per gallon (3) (4) | 10.1 | ¢ | 11.4 | ¢ | |||||||||||||||||||||
The following table presents a reconciliation of Adjusted EBITDA to net income and Adjusted EBITDA to Distributable Cash Flow, as adjusted, for the three months and years ended December 31, 2019 and 2018:
Three Months Ended | Year Ended December 31, | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||
(in millions) | (in millions) | ||||||||||||||||
Adjusted EBITDA: | |||||||||||||||||
Fuel Distribution and Marketing | $ | 147 | $ | 159 | $ | 545 | $ | 554 | |||||||||
All Other | 21 | 21 | 120 | 84 | |||||||||||||
Total Adjusted EBITDA | 168 | 180 | 665 | 638 | |||||||||||||
Depreciation, amortization and accretion | (46) | (50) | (183) | (182) | |||||||||||||
Interest expense, net (3) | (43) | (39) | (173) | (146) | |||||||||||||
Non-cash unit-based compensation expense (3) | (3) | (2) | (13) | (12) | |||||||||||||
Loss on disposal of assets and impairment charges (3) | (22) | (22) | (68) | (80) | |||||||||||||
Loss on extinguishment of debt and other, net | — | — | — | (129) | |||||||||||||
Unrealized gain (loss) on commodity derivatives (3) | 1 | (5) | 5 | (6) | |||||||||||||
Inventory adjustments (3) | 8 | (135) | 79 | (84) | |||||||||||||
Equity in earnings of unconsolidated affiliate | 2 | — | 2 | — | |||||||||||||
Adjusted EBITDA related to unconsolidated affiliate | (3) | — | (4) | — | |||||||||||||
Other non-cash adjustments | (5) | (4) | (14) | (14) | |||||||||||||
Income tax (expense) benefit (3) | 26 | 5 | 17 | (192) | |||||||||||||
Net income (loss) and comprehensive income (loss) | $ | 83 | $ | (72) | $ | 313 | $ | (207) | |||||||||
Adjusted EBITDA (2) | $ | 168 | $ | 180 | $ | 665 | $ | 638 | |||||||||
Adjusted EBITDA related to unconsolidated affiliate | 3 | — | 4 | — | |||||||||||||
Distributable cash flow from unconsolidated affiliate | (3) | — | (4) | — | |||||||||||||
Cash interest expense (3) | 41 | 39 | 166 | 142 | |||||||||||||
Income tax expense (benefit), current (3) | (41) | 11 | (22) | 489 | |||||||||||||
Transaction-related income taxes (5) | 31 | — | 31 | (470) | |||||||||||||
Maintenance capital expenditures (3) | 17 | 15 | 40 | 31 | |||||||||||||
Distributable Cash Flow | 120 | 115 | 450 | 446 | |||||||||||||
Transaction-related expense (3) | — | (1) | 3 | 11 | |||||||||||||
Series A Preferred distribution | — | — | — | (2) | |||||||||||||
Distributable Cash Flow, as adjusted (2) | $ | 120 | $ | 114 | $ | 453 | $ | 455 | |||||||||
Distributions to Partners: | |||||||||||||||||
Limited Partners | $ | 69 | $ | 68 | $ | 273 | $ | 272 | |||||||||
General Partners | 18 | 18 | 72 | 70 | |||||||||||||
Total distributions to be paid to partners | $ | 87 | $ | 86 | $ | 345 | $ | 342 | |||||||||
Common Units outstanding - end of period | 83.0 | 82.7 | 83.0 | 82.7 | |||||||||||||
Distribution coverage ratio (6) | 1.39 | 1.33 | 1.32 | 1.32 | |||||||||||||
(1) | Excludes depreciation, amortization and accretion. | |||||
(2) | Adjusted EBITDA is defined as earnings before net interest expense, income taxes, depreciation, amortization and accretion expense, allocated non-cash compensation expense, unrealized gains and losses on commodity derivatives and inventory adjustments, and certain other operating expenses reflected in net income that we do not believe are indicative of ongoing core operations, such as gain or loss on disposal of assets and non-cash impairment charges. We define Distributable Cash Flow, as adjusted, as Adjusted EBITDA less cash interest expense, including the accrual of interest expense related to our long-term debt which is paid on a semi-annual basis, Series A Preferred distribution, current income tax expense, maintenance capital expenditures and other non-cash adjustments. | |||||
We believe Adjusted EBITDA and Distributable Cash Flow, as adjusted, 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, as adjusted, 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. | |||||
Adjusted EBITDA and Distributable Cash Flow, as adjusted, 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. Adjusted EBITDA and Distributable Cash Flow, as adjusted, 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 Adjusted EBITDA does not reflect cash requirements for such replacements; and | |||||
• | as not all companies use identical calculations, our presentation of Adjusted EBITDA and Distributable Cash Flow, as adjusted, may not be comparable to similarly titled measures of other companies. | |||||
Adjusted EBITDA reflects amounts for the unconsolidated affiliate based on the same recognition and measurement methods used to record equity in earnings of unconsolidated affiliate. Adjusted EBITDA related to unconsolidated affiliate excludes the same items with respect to the unconsolidated affiliate as those excluded from the calculation of Adjusted EBITDA, such as interest, taxes, depreciation, depletion, amortization and other non-cash items. Although these amounts are excluded from Adjusted EBITDA related to unconsolidated affiliate, such exclusion should not be understood to imply that we have control over the operations and resulting revenues and expenses of such affiliate. We do not control our unconsolidated affiliate; therefore, we do not control the earnings or cash flows of such affiliate. The use of Adjusted EBITDA or Adjusted EBITDA related to unconsolidated affiliate as an analytical tool should be limited accordingly. | ||||||
(3) | Includes amounts from discontinued operations for the year ended December 31, 2018. | |||||
(4) | Includes other non-cash adjustments and excludes the impact of inventory adjustments consistent with the definition of Adjusted EBITDA. | |||||
(5) | Transaction-related income taxes primarily related to the 7-Eleven Transaction. | |||||
(6) | The distribution coverage ratio for a period is calculated as Distributable Cash Flow attributable to partners, as adjusted, divided by distributions expected to be paid to partners of Sunoco LP in respect of such a period. | |||||
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SOURCE Sunoco LP
Article Date
2/19/2020Sunoco LP Announces Third Quarter 2019 Financial and Operating Results
Source: Sunoco LP
DALLAS, Nov. 6, 2019 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("SUN" or the "Partnership") today reported financial and operating results for the three-month period ended September 30, 2019.
Net income for the quarter was $66 million versus net income of $112 million in the third quarter of 2018.
Adjusted EBITDA(1) totaled $192 million compared with $208 million in the third quarter of 2018. Distributable Cash Flow, as adjusted(1), was $133 million, compared to $149 million a year ago. Net income, Adjusted EBITDA and Distributable Cash Flow, as adjusted, in 2018 included a one-time cash benefit of approximately $25 million related to a settlement with a fuel supplier. Excluding the 2018 one-time cash benefit, the year-over-year increase in Adjusted EBITDA and Distributable Cash Flow was supported by growth in the Partnership's fuel volumes to a record high 2.11 billion gallons combined with lower operating expenses(2).
Recent Accomplishments and Other Developments
Distribution
On October 25, 2019, the Board of Directors of SUN's general partner declared a distribution for the third quarter of 2019 of $0.8255 per unit, which corresponds to $3.3020 per unit on an annualized basis. The distribution will be paid on November 19, 2019 to common unitholders of record on November 5, 2019.
Liquidity
At September 30, 2019, SUN had borrowings of $154 million against its revolving line of credit and other long-term debt of $2.9 billion. In the third quarter of 2019, SUN did not issue any common units through its at-the-market equity program.
Capital Spending and Other Investments
SUN's gross capital expenditures for the third quarter were $46 million, which included $33 million for growth capital and $13 million for maintenance capital.
Excluding acquisitions, SUN expects to spend at least $115 million on growth capital for the full year 2019, including approximately $10 million of growth capital toward the pipeline joint venture with Energy Transfer. With an additional $45 million investment on the pipeline joint venture, SUN expects total investment in 2019 to be approximately $160 million.
SUN expects to spend approximately $40 million on maintenance capital for the full year 2019.
SUN's segment results and other supplementary data are provided after the financial tables below.
(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) | Operating expenses include general and administrative, other operating and lease expenses. |
Earnings Conference Call
Sunoco LP management will hold a conference call on Thursday, November 7, at 9:30 a.m. CT (10:30 a.m. ET) to discuss third 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 with core operations that include the distribution of motor fuel to approximately 10,000 convenience stores, independent dealers, commercial customers and distributors located in more than 30 states as well as refined product transportation and terminalling assets. SUN's general partner is owned by Energy Transfer Operating, L.P., a wholly owned subsidiary of Energy Transfer LP (NYSE: ET).
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, Vice President – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Derek Rabe, CFA, Manager – Investor Relations, Growth and Strategy
(214) 840-5553, derek.rabe@sunoco.com
Media:
Alexis Daniel, Manager – Communications
(214) 981-0739, alexis.daniel@sunoco.com
– Financial Schedules Follow –
SUNOCO LP | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(unaudited) | |||||||
September 30, | December 31, | ||||||
(in millions, except units) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 13 | $ | 56 | |||
Accounts receivable, net | 450 | 374 | |||||
Receivables from affiliates | 4 | 37 | |||||
Inventories, net | 422 | 374 | |||||
Other current assets | 86 | 64 | |||||
Total current assets | 975 | 905 | |||||
Property and equipment | 2,101 | 2,133 | |||||
Accumulated depreciation | (663) | (587) | |||||
Property and equipment, net | 1,438 | 1,546 | |||||
Other assets: | |||||||
Lease right-of-use assets, net | 572 | — | |||||
Goodwill | 1,557 | 1,559 | |||||
Intangible assets | 915 | 915 | |||||
Accumulated amortization | (249) | (207) | |||||
Intangible assets, net | 666 | 708 | |||||
Other non-current assets | 177 | 161 | |||||
Investment in unconsolidated affiliate | 112 | — | |||||
Total assets | $ | 5,497 | $ | 4,879 | |||
Liabilities and equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 456 | $ | 412 | |||
Accounts payable to affiliates | 70 | 149 | |||||
Accrued expenses and other current liabilities | 243 | 299 | |||||
Operating lease current liabilities | 21 | — | |||||
Current maturities of long-term debt | 13 | 5 | |||||
Total current liabilities | 803 | 865 | |||||
Operating lease non-current liabilities | 521 | — | |||||
Revolving line of credit | 154 | 700 | |||||
Long-term debt, net | 2,906 | 2,280 | |||||
Advances from affiliates | 141 | 24 | |||||
Deferred tax liability | 93 | 103 | |||||
Other non-current liabilities | 117 | 123 | |||||
Total liabilities | 4,735 | 4,095 | |||||
Commitments and contingencies | |||||||
Equity: | |||||||
Limited partners: | |||||||
Common unitholders (82,750,201 units issued and outstanding as of September 30, 2019 and 82,665,057 units issued and outstanding as of December 31, 2018) | 762 | 784 | |||||
Class C unitholders - held by subsidiaries (16,410,780 units issued and outstanding as of September 30, 2019 and December 31, 2018) | — | — | |||||
Total equity | 762 | 784 | |||||
Total liabilities and equity | $ | 5,497 | $ | 4,879 | |||
SUNOCO LP | |||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | |||||||||||||||
(unaudited) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in millions, except unit and per unit amounts) | |||||||||||||||
Revenues: | |||||||||||||||
Motor fuel sales | $ | 4,225 | $ | 4,662 | $ | 12,174 | $ | 12,720 | |||||||
Non motor fuel sales | 69 | 64 | 217 | 306 | |||||||||||
Lease income | 37 | 35 | 107 | 91 | |||||||||||
Total revenues | 4,331 | 4,761 | 12,498 | 13,117 | |||||||||||
Cost of sales and operating expenses: | |||||||||||||||
Cost of sales | 4,039 | 4,428 | 11,567 | 12,178 | |||||||||||
General and administrative | 40 | 34 | 101 | 103 | |||||||||||
Other operating | 79 | 86 | 236 | 270 | |||||||||||
Lease expense | 15 | 20 | 45 | 54 | |||||||||||
Loss (gain) on disposal of assets and impairment charges | (4) | (8) | 46 | (3) | |||||||||||
Depreciation, amortization and accretion | 45 | 42 | 137 | 132 | |||||||||||
Total cost of sales and operating expenses | 4,214 | 4,602 | 12,132 | 12,734 | |||||||||||
Operating income | 117 | 159 | 366 | 383 | |||||||||||
Other expenses: | |||||||||||||||
Interest expense, net | 45 | 35 | 130 | 105 | |||||||||||
Loss on extinguishment of debt and other, net | — | — | (3) | 109 | |||||||||||
Income from continuing operations before income taxes | 72 | 124 | 239 | 169 | |||||||||||
Income tax expense | 6 | 10 | 9 | 39 | |||||||||||
Income from continuing operations | 66 | 114 | 230 | 130 | |||||||||||
Loss from discontinued operations, net of income taxes | — | (2) | — | (265) | |||||||||||
Net income (loss) and comprehensive income (loss) | $ | 66 | $ | 112 | $ | 230 | $ | (135) | |||||||
Net income (loss) per common unit - basic: | |||||||||||||||
Continuing operations - common units | $ | 0.57 | $ | 1.16 | $ | 2.09 | $ | 0.84 | |||||||
Discontinued operations - common units | 0.00 | (0.03) | 0.00 | (3.12) | |||||||||||
Net income (loss) - common units | $ | 0.57 | $ | 1.13 | $ | 2.09 | $ | (2.28) | |||||||
Net income (loss) per common unit - diluted: | |||||||||||||||
Continuing operations - common units | $ | 0.57 | $ | 1.15 | $ | 2.07 | $ | 0.83 | |||||||
Discontinued operations - common units | 0.00 | (0.03) | 0.00 | (3.12) | |||||||||||
Net income (loss) - common units | $ | 0.57 | $ | 1.12 | $ | 2.07 | $ | (2.29) | |||||||
Weighted average limited partner units outstanding: | |||||||||||||||
Common units - basic | 82,749,644 | 82,506,279 | 82,734,526 | 84,891,853 | |||||||||||
Common units - diluted | 83,649,898 | 83,084,713 | 83,512,121 | 85,373,976 | |||||||||||
Cash distributions per unit | $ | 0.8255 | $ | 0.8255 | $ | 2.4765 | $ | 2.4765 | |||||||
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. Our financial statements reflect two reportable segments, Fuel Distribution and Marketing and All Other.
The key operating metrics and accompanying footnotes set forth below are presented for the three months ended September 30, 2019 and 2018 and have been derived from our historical consolidated financial statements.
Three Months Ended September 30, | ||||||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||
Fuel | All Other | Total | Fuel | All Other | Total | |||||||||||||||||||
(dollars and gallons in millions, except gross profit per gallon) | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Motor fuel sales | $ | 4,041 | $ | 184 | $ | 4,225 | $ | 4,450 | $ | 212 | $ | 4,662 | ||||||||||||
Non motor fuel sales | 14 | 55 | 69 | 12 | 52 | 64 | ||||||||||||||||||
Lease income | 31 | 6 | 37 | 32 | 3 | 35 | ||||||||||||||||||
Total revenues | $ | 4,086 | $ | 245 | $ | 4,331 | $ | 4,494 | $ | 267 | $ | 4,761 | ||||||||||||
Gross profit (1): | ||||||||||||||||||||||||
Motor fuel sales | $ | 195 | $ | 22 | $ | 217 | $ | 222 | $ | 25 | $ | 247 | ||||||||||||
Non motor fuel sales | 10 | 28 | 38 | 7 | 44 | 51 | ||||||||||||||||||
Lease | 31 | 6 | 37 | 32 | 3 | 35 | ||||||||||||||||||
Total gross profit | $ | 236 | $ | 56 | $ | 292 | $ | 261 | $ | 72 | $ | 333 | ||||||||||||
Income from continuing operations | 57 | 9 | 66 | 89 | 25 | 114 | ||||||||||||||||||
Loss from discontinued operations, net of taxes | — | — | — | — | (2) | (2) | ||||||||||||||||||
Net income and comprehensive income | $ | 57 | $ | 9 | $ | 66 | $ | 89 | $ | 23 | $ | 112 | ||||||||||||
Adjusted EBITDA (2) | $ | 161 | $ | 31 | $ | 192 | $ | 183 | $ | 25 | $ | 208 | ||||||||||||
Operating Data: | ||||||||||||||||||||||||
Motor fuel gallons sold | 2,110 | 2,004 | ||||||||||||||||||||||
Motor fuel gross profit cents per gallon (3) | 11.6 | ¢ | 12.7 | ¢ | ||||||||||||||||||||
The following table presents a reconciliation of Adjusted EBITDA to net income and Adjusted EBITDA to Distributable Cash Flow, as adjusted:
Three Months Ended September 30, | |||||||||||
2019 | 2018 | Change | |||||||||
(in millions) | |||||||||||
Adjusted EBITDA | |||||||||||
Fuel distribution and marketing | $ | 161 | $ | 183 | $ | (22) | |||||
All other | 31 | 25 | 6 | ||||||||
Total Adjusted EBITDA | 192 | 208 | (16) | ||||||||
Depreciation, amortization and accretion | (45) | (42) | (3) | ||||||||
Interest expense, net | (45) | (35) | (10) | ||||||||
Non-cash compensation expense | (4) | (4) | — | ||||||||
Gain on disposal of assets and impairment charges | 4 | 8 | (4) | ||||||||
Unrealized gain on commodity derivatives | 1 | — | 1 | ||||||||
Inventory adjustments | (26) | (7) | (19) | ||||||||
Equity in earnings of unconsolidated affiliate | — | — | — | ||||||||
Adjusted EBITDA related to unconsolidated affiliate | (1) | — | (1) | ||||||||
Other non-cash adjustments | (4) | (4) | — | ||||||||
Income tax expense (4) | (6) | (12) | 6 | ||||||||
Net income and comprehensive income | $ | 66 | $ | 112 | $ | (46) | |||||
Adjusted EBITDA | $ | 192 | $ | 208 | $ | (16) | |||||
Adjusted EBITDA related to unconsolidated affiliate | 1 | — | 1 | ||||||||
Distributable cash flow from unconsolidated affiliate | (1) | — | (1) | ||||||||
Cash interest expense | 43 | 34 | 9 | ||||||||
Current income tax expense (4) | 3 | 16 | (13) | ||||||||
Maintenance capital expenditures | 13 | 11 | 2 | ||||||||
Distributable Cash Flow | 133 | 147 | (14) | ||||||||
Transaction-related expenses | — | 2 | (2) | ||||||||
Distributable Cash Flow, as adjusted (2) | $ | 133 | $ | 149 | $ | (16) | |||||
Distributions to Partners: | |||||||||||
Limited Partners | $ | 68 | $ | 68 | |||||||
General Partner | 18 | 18 | |||||||||
Total distributions to be paid to partners | $ | 86 | $ | 86 | |||||||
Common Units outstanding – end of period | 82.8 | 82.5 | |||||||||
Distribution coverage ratio (5) | 1.55x | 1.73x | |||||||||
___________________________ | |
(1) | Excludes depreciation, amortization and accretion. |
(2) | Adjusted EBITDA is defined as earnings before net interest expense, income taxes, depreciation, amortization and accretion expense, allocated non-cash compensation expense, unrealized gains and losses on commodity derivatives and inventory adjustments, and certain other operating expenses reflected in net income that we do not believe are indicative of ongoing core operations, such as gain or loss on disposal of assets and non-cash impairment charges. We define Distributable Cash Flow, as adjusted, as Adjusted EBITDA less cash interest expense, including the accrual of interest expense related to our long-term debt which is paid on a semi-annual basis, Series A Preferred distribution, current income tax expense, maintenance capital expenditures and other non-cash adjustments. |
We believe Adjusted EBITDA and Distributable Cash Flow, as adjusted, 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, as adjusted, 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. |
Adjusted EBITDA and Distributable Cash Flow, as adjusted, 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. Adjusted EBITDA and Distributable Cash Flow, as adjusted, 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 Adjusted EBITDA does not reflect cash requirements for such replacements; and |
• | as not all companies use identical calculations, our presentation of Adjusted EBITDA and Distributable Cash Flow, as adjusted, may not be comparable to similarly titled measures of other companies. |
Adjusted EBITDA reflects amounts for the unconsolidated affiliate based on the same recognition and measurement methods used to record equity in earnings of unconsolidated affiliate. Adjusted EBITDA related to unconsolidated affiliate excludes the same items with respect to the unconsolidated affiliate as those excluded from the calculation of Adjusted EBITDA, such as interest, taxes, depreciation, depletion, amortization and other non-cash items. Although these amounts are excluded from Adjusted EBITDA related to unconsolidated affiliate, such exclusion should not be understood to imply that we have control over the operations and resulting revenues and expenses of such affiliate. We do not control our unconsolidated affiliate; therefore, we do not control the earnings or cash flows of such affiliate. The use of Adjusted EBITDA or Adjusted EBITDA related to unconsolidated affiliate as an analytical tool should be limited accordingly. | |
(3) | Includes other non-cash adjustments and excludes the impact of inventory adjustments consistent with the definition of Adjusted EBITDA. |
(4) | Includes amounts from discontinued operations for the three months ended September 30, 2018. |
(5) | The distribution coverage ratio for a period is calculated as Distributable Cash Flow attributable to partners, as adjusted, divided by distributions expected to be paid to partners of Sunoco LP in respect of such a period. |
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SOURCE Sunoco LP
Article Date
11/6/201910/25/2019 - Sunoco LP Maintains Quarterly Distribution
Sunoco LP Maintains Quarterly Distribution
Source: Sunoco LP
DALLAS, Oct. 25, 2019 /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 2019 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 19, 2019 to common unitholders of record on November 5, 2019.
SUN will release its third quarter 2019 financial and operating results after the market closes on Wednesday, November 6. In conjunction with the news release, management will hold a conference call on Thursday, November 7 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 November 14, 2019 by dialing 877-660-6853 (toll free) or 201-612-7415 and using the conference ID 13694624#. |
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 with core operations that include the distribution of motor fuel to approximately 10,000 convenience stores, independent dealers, commercial customers and distributors located in more than 30 states as well as refined product transportation and terminalling assets. SUN's general partner is owned by Energy Transfer Operating, L.P., a wholly owned subsidiary of Energy Transfer LP (NYSE: ET).
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
Scott Grischow
Vice President – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Derek Rabe, CFA
Manager – Investor Relations, Growth and Strategy
(214) 840-5553, derek.rabe@sunoco.com
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SOURCE Sunoco LP
Article Date
10/25/2019Sunoco LP Announces Second Quarter Financial and Operating Results
Source: Sunoco LP
DALLAS, Aug. 7, 2019 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("SUN" or the "Partnership") today reported financial and operating results for the three-month period ended June 30, 2019.
Net income for the quarter was $55 million versus net income of $68 million in the second quarter of 2018.
Adjusted EBITDA(1) totaled $152 million compared with $140 million in the second quarter of 2018. Results were supported by an increase in the Partnership's fuel volumes and lower operating expenses.
Distributable Cash Flow, as adjusted(1), was $101 million, compared to $106 million a year ago. This year-over-year decrease reflects higher Adjusted EBITDA offset by higher interest expense and maintenance capital expenditures.
Net income, Adjusted EBITDA and Distributable Cash Flow, as adjusted, included a one-time expense of approximately $8 million related to a reserve for an open contractual dispute.
Recent Accomplishments and Other Developments
Distribution
On July 25, 2019, the Board of Directors of SUN's general partner declared a distribution for the second quarter of 2019 of $0.8255 per unit, which corresponds to $3.3020 per unit on an annualized basis. The distribution will be paid on August 14, 2019 to common unitholders of record on August 6, 2019.
Liquidity
At June 30, SUN had borrowings of $117 million against its revolving line of credit and other long-term debt of $2.9 billion. In the second quarter of 2019, SUN did not issue any common units through its at-the-market equity program.
Capital Spending
SUN's gross capital expenditures for the second quarter were $31 million, which included $25 million for growth capital and $6 million for maintenance capital.
Excluding acquisitions, SUN expects to spend at least $100 million on growth capital, including approximately $5 million of growth capital toward the pipeline joint venture with Energy Transfer, and approximately $40 million on maintenance capital for the full year 2019.
SUN's segment results and other supplementary data are provided after the financial tables below.
(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) | Excluding the one-time expense of approximately $8 million this quarter, SUN's leverage ratio of net debt to Adjusted EBITDA, calculated in accordance with SUN's credit facility, was 4.16 times at the end of the second quarter. |
Earnings Conference Call
Sunoco LP management will hold a conference call on Thursday, August 8, at 9:30 a.m. CT (10:30 a.m. ET) to discuss second 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 with core operations that include the distribution of motor fuel to approximately 10,000 convenience stores, independent dealers, commercial customers and distributors located in more than 30 states as well as refined product transportation and terminalling assets. SUN's general partner is owned by Energy Transfer Operating, L.P., a wholly owned subsidiary of Energy Transfer LP (NYSE: ET).
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, Vice President – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Derek Rabe, CFA, Manager – Investor Relations, Growth and Strategy
(214) 840-5553, derek.rabe@sunoco.com
Media:
Alexis Daniel, Manager – Communications
(214) 981-0739, alexis.daniel@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 | $ | 36 | $ | 56 | ||||
Accounts receivable, net | 573 | 374 | ||||||
Receivables from affiliates | 2 | 37 | ||||||
Inventories, net | 410 | 374 | ||||||
Other current assets | 77 | 64 | ||||||
Total current assets | 1,098 | 905 | ||||||
Property and equipment | 2,074 | 2,133 | ||||||
Accumulated depreciation | (635) | (587) | ||||||
Property and equipment, net | 1,439 | 1,546 | ||||||
Other assets: | ||||||||
Lease right-of-use assets, net | 536 | — | ||||||
Goodwill | 1,558 | 1,559 | ||||||
Intangible assets | 914 | 915 | ||||||
Accumulated amortization | (235) | (207) | ||||||
Intangible assets, net | 679 | 708 | ||||||
Other non-current assets | 160 | 161 | ||||||
Total assets | $ | 5,470 | $ | 4,879 | ||||
Liabilities and equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 530 | $ | 412 | ||||
Accounts payable to affiliates | 24 | 149 | ||||||
Accrued expenses and other current liabilities | 306 | 299 | ||||||
Operating lease current liabilities | 21 | — | ||||||
Current maturities of long-term debt | 6 | 5 | ||||||
Total current liabilities | 887 | 865 | ||||||
Operating lease non-current liabilities | 520 | — | ||||||
Revolving line of credit | 117 | 700 | ||||||
Long-term debt, net | 2,878 | 2,280 | ||||||
Advances from affiliates | 80 | 24 | ||||||
Deferred tax liability | 90 | 103 | ||||||
Other non-current liabilities | 119 | 123 | ||||||
Total liabilities | 4,691 | 4,095 | ||||||
Commitments and contingencies | ||||||||
Equity: | ||||||||
Limited partners: | ||||||||
Common unitholders | ||||||||
(82,749,333 units issued and outstanding as of June 30, 2019 and 82,665,057 units issued and outstanding as of December 31, 2018) | 779 | 784 | ||||||
Class C unitholders - held by subsidiaries | ||||||||
(16,410,780 units issued and outstanding as of June 30, 2019 and December 31, 2018) | — | — | ||||||
Total equity | 779 | 784 | ||||||
Total liabilities and equity | $ | 5,470 | $ | 4,879 | ||||
SUNOCO LP | |||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | |||||||||||||||
(unaudited) | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in millions, except unit and per unit amounts) | |||||||||||||||
Revenues: | |||||||||||||||
Motor fuel sales | $ | 4,366 | $ | 4,507 | $ | 7,949 | $ | 8,058 | |||||||
Non motor fuel sales | 74 | 66 | 148 | 242 | |||||||||||
Lease income | 35 | 34 | 70 | 56 | |||||||||||
Total revenues | 4,475 | 4,607 | 8,167 | 8,356 | |||||||||||
Cost of sales and operating expenses: | |||||||||||||||
Cost of sales | 4,206 | 4,297 | 7,528 | 7,750 | |||||||||||
General and administrative | 34 | 34 | 61 | 69 | |||||||||||
Other operating | 73 | 86 | 157 | 184 | |||||||||||
Lease expense | 16 | 19 | 30 | 34 | |||||||||||
Loss on disposal of assets and impairment charges | 2 | 2 | 50 | 5 | |||||||||||
Depreciation, amortization and accretion | 47 | 41 | 92 | 90 | |||||||||||
Total cost of sales and operating expenses | 4,378 | 4,479 | 7,918 | 8,132 | |||||||||||
Operating income | 97 | 128 | 249 | 224 | |||||||||||
Other expenses: | |||||||||||||||
Interest expense, net | 43 | 36 | 85 | 70 | |||||||||||
Loss on extinguishment of debt and other, net | (6) | — | (3) | 109 | |||||||||||
Income from continuing operations before income taxes | 60 | 92 | 167 | 45 | |||||||||||
Income tax expense (benefit) | 5 | (2) | 3 | 29 | |||||||||||
Income from continuing operations | 55 | 94 | 164 | 16 | |||||||||||
Loss from discontinued operations, net of income taxes | — | (26) | — | (263) | |||||||||||
Net income (loss) and comprehensive income (loss) | $ | 55 | $ | 68 | $ | 164 | $ | (247) | |||||||
Net income (loss) per common unit - basic: | |||||||||||||||
Continuing operations - common units | $ | 0.44 | $ | 0.91 | $ | 1.51 | $ | (0.29) | |||||||
Discontinued operations - common units | 0.00 | (0.32) | 0.00 | (3.05) | |||||||||||
Net income (loss) - common units | $ | 0.44 | $ | 0.59 | $ | 1.51 | $ | (3.34) | |||||||
Net income (loss) per common unit - diluted: | |||||||||||||||
Continuing operations - common units | $ | 0.43 | $ | 0.90 | $ | 1.50 | $ | (0.29) | |||||||
Discontinued operations - common units | 0.00 | (0.32) | 0.00 | (3.05) | |||||||||||
Net income (loss) - common units | $ | 0.43 | $ | 0.58 | $ | 1.50 | $ | (3.34) | |||||||
Weighted average limited partner units outstanding: | |||||||||||||||
Common units - basic | 82,742,323 | 82,494,976 | 82,726,842 | 86,104,411 | |||||||||||
Common units - diluted | 83,509,987 | 82,947,669 | 83,455,021 | 86,569,372 | |||||||||||
Cash distributions per unit | $ | 0.8255 | $ | 0.8255 | $ | 1.6510 | $ | 1.6510 | |||||||
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. Our financial statements reflect two reportable segments, Fuel Distribution and Marketing and All Other.
The key operating metrics and accompanying footnotes set forth below are presented for the three months ended June 30, 2019 and 2018 and have been derived from our historical consolidated financial statements.
Three Months Ended June 30, | ||||||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||
Fuel | All Other | Total | Fuel | All Other | Total | |||||||||||||||||||
(dollars and gallons in millions, except gross profit per gallon) | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Motor fuel sales | $ | 4,193 | $ | 173 | $ | 4,366 | $ | 4,304 | $ | 203 | $ | 4,507 | ||||||||||||
Non motor fuel sales | 16 | 58 | 74 | 15 | 51 | 66 | ||||||||||||||||||
Lease income | 31 | 4 | 35 | 31 | 3 | 34 | ||||||||||||||||||
Total revenues | $ | 4,240 | $ | 235 | $ | 4,475 | $ | 4,350 | $ | 257 | $ | 4,607 | ||||||||||||
Gross profit (1): | ||||||||||||||||||||||||
Motor fuel sales | $ | 171 | $ | 19 | $ | 190 | $ | 204 | $ | 23 | $ | 227 | ||||||||||||
Non motor fuel sales | 13 | 31 | 44 | 18 | 31 | 49 | ||||||||||||||||||
Lease | 31 | 4 | 35 | 31 | 3 | 34 | ||||||||||||||||||
Total gross profit | $ | 215 | $ | 54 | $ | 269 | $ | 253 | $ | 57 | $ | 310 | ||||||||||||
Income (loss) from continuing operations | 39 | 16 | 55 | 101 | (7) | 94 | ||||||||||||||||||
Loss from discontinued operations, net of taxes | — | — | — | — | (26) | (26) | ||||||||||||||||||
Net income (loss) and comprehensive income (loss) | $ | 39 | $ | 16 | $ | 55 | $ | 101 | $ | (33) | $ | 68 | ||||||||||||
Adjusted EBITDA (2) | $ | 119 | $ | 33 | $ | 152 | $ | 132 | $ | 8 | $ | 140 | ||||||||||||
Distributable Cash Flow, as adjusted (2) | $ | 101 | $ | 106 | ||||||||||||||||||||
Operating Data: | ||||||||||||||||||||||||
Motor fuel gallons sold | 2,054 | 1,977 | ||||||||||||||||||||||
Motor fuel gross profit cents per gallon (3) | 9.1 | ¢ | 9.9 | ¢ | ||||||||||||||||||||
The following table presents a reconciliation of Adjusted EBITDA to net income, and Adjusted EBITDA to Distributable Cash Flow, as adjusted:
Three Months Ended June 30, | |||||||||||
2019 | 2018 | Change | |||||||||
(in millions) | |||||||||||
Segment Adjusted EBITDA | |||||||||||
Fuel distribution and marketing | $ | 119 | $ | 132 | $ | (13) | |||||
All other | 33 | 8 | 25 | ||||||||
Total | 152 | 140 | 12 | ||||||||
Depreciation, amortization and accretion | (47) | (41) | (6) | ||||||||
Interest expense, net | (43) | (36) | (7) | ||||||||
Non-cash compensation expense | (3) | (3) | — | ||||||||
Loss on disposal of assets and impairment charges (4) | (2) | (40) | 38 | ||||||||
Loss on extinguishment of debt and other, net | 6 | — | 6 | ||||||||
Unrealized loss on commodity derivatives | (3) | — | (3) | ||||||||
Inventory adjustments | 4 | 32 | (28) | ||||||||
Other non-cash adjustments | (4) | (3) | (1) | ||||||||
Income before income tax (expense) benefit (4) | 60 | 49 | 11 | ||||||||
Income tax (expense) benefit (4) | (5) | 19 | (24) | ||||||||
Net income and comprehensive income | $ | 55 | $ | 68 | $ | (13) | |||||
Adjusted EBITDA | $ | 152 | $ | 140 | $ | 12 | |||||
Cash interest expense | 41 | 34 | 7 | ||||||||
Current income tax expense (benefit) (4) | 4 | (5) | 9 | ||||||||
Transaction-related income taxes | — | 10 | (10) | ||||||||
Maintenance capital expenditures | 6 | 2 | 4 | ||||||||
Distributable Cash Flow | 101 | 99 | 2 | ||||||||
Transaction-related expenses (4) | — | 7 | (7) | ||||||||
Distributable Cash Flow, as adjusted | $ | 101 | $ | 106 | $ | (5) | |||||
Distributions to Partners: | |||||||||||
Limited Partners | $ | 68 | $ | 68 | |||||||
General Partner | 18 | 18 | |||||||||
Total distributions to be paid to partners | $ | 86 | $ | 86 | |||||||
Common Units outstanding – end of period | 82.7 | 82.5 | |||||||||
Distribution coverage ratio (5) | 1.17x | 1.24x | |||||||||
(1) | Excludes depreciation, amortization and accretion. | ||||||||
(2) | Adjusted EBITDA is defined as earnings before net interest expense, income taxes, depreciation, amortization and accretion expense, allocated non-cash compensation expense, unrealized gains and losses on commodity derivatives and inventory adjustments, and certain other operating expenses reflected in net income that we do not believe are indicative of ongoing core operations, such as gain or loss on disposal of assets and non-cash impairment charges. We define Distributable Cash Flow, as adjusted, as Adjusted EBITDA less cash interest expense, including the accrual of interest expense related to our long-term debt which is paid on a semi-annual basis, Series A Preferred distribution, current income tax expense, maintenance capital expenditures and other non-cash adjustments. | ||||||||
We believe Adjusted EBITDA and Distributable Cash Flow, as adjusted, 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, as adjusted, 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. | ||||||||
Adjusted EBITDA and Distributable Cash Flow, as adjusted, 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. Adjusted EBITDA and Distributable Cash Flow, as adjusted, 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 Adjusted EBITDA does not reflect cash requirements for such replacements; and | ||||||||
• | as not all companies use identical calculations, our presentation of Adjusted EBITDA and Distributable Cash Flow, as adjusted, may not be comparable to similarly titled measures of other companies. | ||||||||
(3) | Includes other non-cash adjustments and excludes the impact of inventory adjustments consistent with the definition of Adjusted EBITDA. | ||||||||
(4) | Includes amounts from discontinued operations for the three months ended June 30, 2018. | ||||||||
(5) | The distribution coverage ratio for a period is calculated as Distributable Cash Flow attributable to partners, as adjusted, divided by distributions expected to be paid to partners of Sunoco LP in respect of such a period. | ||||||||
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SOURCE Sunoco LP
Article Date
8/7/20197/25/2019 - Sunoco LP Maintains Quarterly Distribution
Sunoco LP Maintains Quarterly Distribution
Source: Sunoco LP
DALLAS, July 25, 2019 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("SUN") announced that the Board of Directors of its general partner declared a quarterly distribution for the second quarter of 2019 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 14, 2019 to common unitholders of record on August 6, 2019.
SUN will release its second quarter 2019 financial and operating results after the market closes on Wednesday, August 7. In conjunction with the news release, management will hold a conference call on Thursday, August 8 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 August 15, 2019 by dialing 877-660-6853 (toll free) or 201-612-7415 and using the conference ID 13691734#. |
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 with core operations that include the distribution of motor fuel to approximately 10,000 convenience stores, independent dealers, commercial customers and distributors located in more than 30 states as well as refined product transportation and terminalling assets. SUN's general partner is owned by Energy Transfer Operating, L.P., a wholly owned subsidiary of Energy Transfer LP (NYSE: ET).
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
Scott Grischow
Vice President – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Derek Rabe, CFA
Manager – Investor Relations, Growth and Strategy
(214) 840-5553, derek.rabe@sunoco.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/sunoco-lp-maintains-quarterly-distribution-300891426.html
SOURCE Sunoco LP
Article Date
7/25/20196/14/2019 - Cushing® Asset Management and Swank Capital Announce Constituent Changes to The Cushing® Utility Index
Cushing® Asset Management and Swank Capital Announce Constituent Changes to The Cushing® Utility Index
Source: Cushing Asset Management, LP; Swank Capital, LLC
DALLAS, June 14, 2019 /PRNewswire/ -- Swank Capital, LLC and Cushing® Asset Management, LP announce an upcoming interim change to the constituents of The Cushing® Utility Index (the "Index"). The Cushing® 30 MLP Index (the "Sub-Index") announced today that after the market closes on June 21, 2019, and effective on June 24, 2019, Index constituent Surburban Propane Partners, L.P. (NYSE: SPH) will be removed from the Sub-Index. No direct replacement for SPH was named. Per the Index's Methodology Guide, after the market closes on June 21, 2019, the constituents of the Index will be rebalanced and the following changes will become effective on June 24, 2019:
Constituents added:
NuStar Energy L.P. (NYSE: NS)
Energy Transfer LP (NYSE: ET)
Shell Midstream Partners, L.P. (NYSE: SHLX)
Sunoco LP (NYSE: SUN)
Constituents removed:
BP Midstream Partners LP (NYSE: BPMP)
EnLink Midstream, LLC (NYSE: ENLC)
NGL Energy Partners LP (NYSE: NGL)
Suburban Propane Partners, L.P. (NYSE: SPH)
ABOUT THE CUSHING® UTILITY INDEX
The Cushing® Utility Index tracks the performance of widely held companies engaged in electric, gas and water utility services as well as master limited partnerships (MLPs) engaged in storage and transportation of oil, natural gas, coal and consumable fuels. Constituents of the Index are weighted based on current yield. The Index price level is calculated by S&P Dow Jones Indices and reported on a real-time basis under the Bloomberg ticker "CUTI".
ABOUT CUSHING® ASSET MANAGEMENT AND SWANK CAPITAL
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 energy infrastructure companies and other natural resource companies.
Cushing is also dedicated to serving the needs of investors by sponsoring a variety of benchmarks, including The Cushing® 30 MLP Index (Bloomberg Ticker: MLPX), The Cushing® 30 MLP Market Cap Index (Bloomberg Ticker: CMCI), 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) and The Cushing® Transportation Index (Bloomberg Ticker: CTRI). For more information, please visit http://www.cushingasset.com/indices.
Contact:
Brian Atwood
214-692-6334
www.cushingasset.com
The Cushing® Utility 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 Swank Capital, LLC, and 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-CUTI
View original content:http://www.prnewswire.com/news-releases/cushing-asset-management-and-swank-capital-announce-constituent-changes-to-the-cushing-utility-index-300867760.html
SOURCE Cushing Asset Management, LP; Swank Capital, LLC
Article Date
6/14/2019Cushing® Asset Management and Swank Capital Announce Constituent Changes to The Cushing® Transportation Index
Source: Cushing Asset Management, LP; Swank Capital, LLC
DALLAS, June 14, 2019 /PRNewswire/ -- Swank Capital, LLC and Cushing® Asset Management, LP announce an upcoming interim change to the constituents of The Cushing® Transportation Index (the "Index"). The Cushing® 30 MLP Index (the "Sub-Index") announced today that after the market closes on June 21, 2019, and effective on June 24, 2019, Index constituent Surburban Propane Partners, L.P. (NYSE: SPH) will be removed from the Sub-Index. No direct replacement for SPH was named. Per the Index's Methodology Guide, after the market closes on June 21, 2019, the constituents of the Index will be rebalanced and the following changes will become effective on June 24, 2019:
Constituents added:
NuStar Energy L.P. (NYSE: NS)
Energy Transfer LP (NYSE: ET)
Shell Midstream Partners, L.P. (NYSE: SHLX)
Sunoco LP (NYSE: SUN)
Constituents removed:
BP Midstream Partners LP (NYSE: BPMP)
EnLink Midstream, LLC (NYSE: ENLC)
NGL Energy Partners LP (NYSE: NGL)
Suburban Propane Partners, L.P. (NYSE: SPH)
ABOUT THE CUSHING® TRANSPORTATION INDEX
The Cushing® Transportation Index tracks the performance of widely held companies engaged in road, rail, marine and air transportation of cargoes and passengers, as well as master limited partnerships (MLPs) engaged in storage and transportation of oil, natural gas, coal and consumable fuels. Constituents of the Index are weighted based on current yield. The Index price level is calculated by S&P Dow Jones Indices and reported on a real-time basis under the Bloomberg ticker "CTRI".
ABOUT CUSHING® ASSET MANAGEMENT AND SWANK CAPITAL
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 energy infrastructure companies and other natural resource companies.
Cushing is also dedicated to serving the needs of investors by sponsoring a variety of benchmarks, including The Cushing® 30 MLP Index (Bloomberg Ticker: MLPX), The Cushing® 30 MLP Market Cap Index (Bloomberg Ticker: CMCI), 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) and The Cushing® Utility Index (Bloomberg Ticker: CUTI). For more information, please visit http://www.cushingasset.com/indices.
Contact:
Brian Atwood
214-692-6334
www.cushingasset.com
The Cushing® Transportation 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 Swank Capital, LLC, and 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-CTRI
View original content:http://www.prnewswire.com/news-releases/cushing-asset-management-and-swank-capital-announce-constituent-changes-to-the-cushing-transportation-index-300867767.html
SOURCE Cushing Asset Management, LP; Swank Capital, LLC
Article Date
6/14/2019Cushing® Asset Management and Swank Capital Announce Constituent Changes to The Cushing® Energy Supply Chain Index
Source: Cushing Asset Management, LP; Swank Capital, LLC
DALLAS, June 14, 2019 /PRNewswire/ -- Swank Capital, LLC and Cushing® Asset Management, LP announce an upcoming interim change to the constituents of The Cushing® Energy Supply Chain Index (the "Index"). The Cushing® 30 MLP Index (the "Sub-Index") announced today that after the market closes on June 21, 2019, and effective on June 24, 2019, Index constituent Surburban Propane Partners, L.P. (NYSE: SPH) will be removed from the Sub-Index. No direct replacement for SPH was named. Per the Index's Methodology Guide, after the market closes on June 21, 2019, the constituents of the Index will be rebalanced and the following changes will become effective on June 24, 2019:
Constituents added:
NuStar Energy L.P. (NYSE: NS)
Energy Transfer LP (NYSE: ET)
Shell Midstream Partners, L.P. (NYSE: SHLX)
Sunoco LP (NYSE: SUN)
Constituents removed:
BP Midstream Partners LP (NYSE: BPMP)
EnLink Midstream, LLC (NYSE: ENLC)
NGL Energy Partners LP (NYSE: NGL)
Suburban Propane Partners, L.P. (NYSE: SPH)
Corteva, Inc. (NYSE: CTVA)
ABOUT THE CUSHING® ENERGY SUPPLY CHAIN INDEX
The Cushing® Energy Supply Chain Index tracks the performance of widely held companies engaged in exploration and production, refining and marketing, or storage and transportation of oil, natural gas, coal and consumable fuels; oil and natural gas equipment and services companies; and companies that extract and/or manufacture materials. Constituents of the Index are weighted based on current yield. The Index price level is calculated by S&P Dow Jones Indices and reported on a real-time basis under the Bloomberg ticker "CSCI".
ABOUT CUSHING® ASSET MANAGEMENT AND SWANK CAPITAL
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 energy infrastructure companies and other natural resource companies.
Cushing is also dedicated to serving the needs of investors by sponsoring a variety of benchmarks, including The Cushing® 30 MLP Index (Bloomberg Ticker: MLPX), The Cushing® 30 MLP Market Cap Index (Bloomberg Ticker: CMCI), The Cushing® MLP High Income Index (Bloomberg Ticker: MLPY), The Cushing® Energy Index (Bloomberg Ticker: CENI), 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:
Brian Atwood
214-692-6334
www.cushingasset.com
The Cushing® Energy Supply Chain 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 Swank Capital, LLC, and 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-CSCI
View original content:http://www.prnewswire.com/news-releases/cushing-asset-management-and-swank-capital-announce-constituent-changes-to-the-cushing-energy-supply-chain-index-300867765.html
SOURCE Cushing Asset Management, LP; Swank Capital, LLC
Article Date
6/14/20195/23/2019 - Cushing® Asset Management and Swank Capital Announce Rebalancing of The Cushing® Energy Supply Chain Index
Cushing® Asset Management and Swank Capital Announce Rebalancing of The Cushing® Energy Supply Chain Index
Source: Cushing Asset Management, LP; Swank Capital, LLC
DALLAS, May 23, 2019 /PRNewswire/ -- Cushing® Asset Management, LP, and Swank Capital, LLC, announce today the upcoming rebalancing of The Cushing® Energy Supply Chain Index (the "Index") as part of normal index operations. After the markets close on May 31, 2019, the constituents of the Index will be rebalanced, and the following changes will become effective on June 3, 2019:
Constituents added:
Antero Midstream Corporation (NYSE: AM)
BP Midstream Partners LP (NYSE: BPMP)
NGL Energy Partners LP (NYSE: NGL)
Constituents removed:
Anadarko Petroleum Corporation (NYSE: APC)
Energy Transfer LP (NYSE: ET)
Shell Midstream Partners, L.P. (NYSE: SHLX)
Sunoco LP (NYSE: SUN)
ABOUT THE CUSHING® ENERGY SUPPLY CHAIN INDEX
The Cushing® Energy Supply Chain Index tracks the performance of widely held companies engaged in exploration and production, refining and marketing, or storage and transportation of oil, natural gas, coal and consumable fuels; oil and natural gas equipment and services companies; and companies that extract and/or manufacture materials. Constituents of the Index are weighted based on current yield. The Index price level is calculated by S&P Dow Jones Indices and reported on a real-time basis under the Bloomberg ticker "CSCI".
ABOUT CUSHING® ASSET MANAGEMENT AND SWANK CAPITAL
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 energy infrastructure companies and other natural resource companies.
Cushing is also dedicated to serving the needs of investors by sponsoring a variety of benchmarks, including The Cushing® 30 MLP Index (Bloomberg Ticker: MLPX), The Cushing® 30 MLP Market Cap Index (Bloomberg Ticker: CMCI), The Cushing® MLP High Income Index (Bloomberg Ticker: MLPY), The Cushing® Energy Index (Bloomberg Ticker: CENI), 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:
Brian Atwood
214-692-6334
www.cushingasset.com
The Cushing® Energy Supply Chain 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-CSCI
View original content:http://www.prnewswire.com/news-releases/cushing-asset-management-and-swank-capital-announce-rebalancing-of-the-cushing-energy-supply-chain-index-300855771.html
SOURCE Cushing Asset Management, LP; Swank Capital, LLC
Article Date
5/23/20195/23/2019 - Cushing® Asset Management and Swank Capital Announce Rebalancing of The Cushing®Transportation Index
Cushing® Asset Management and Swank Capital Announce Rebalancing of The Cushing®Transportation Index
Source: Cushing Asset Management, LP; Swank Capital, LLC
DALLAS, May 23, 2019 /PRNewswire/ -- Cushing® Asset Management, LP, and Swank Capital, LLC, announce today the upcoming rebalancing of The Cushing® Transportation Index (the "Index") as part of normal index operations. After the markets close on May 31, 2019, the constituents of the Index will be rebalanced, and the following changes will become effective on June 3, 2019:
Constituents added:
Antero Midstream Corporation (NYSE: AM)
BP Midstream Partners LP (NYSE: BPMP)
NGL Energy Partners LP (NYSE: NGL)
Constituents removed:
Energy Transfer LP (NYSE: ET)
Shell Midstream Partners, L.P. (NYSE: SHLX)
Sunoco LP (NYSE: SUN)
ABOUT THE CUSHING® TRANSPORTATION INDEX
The Cushing® Transportation Index tracks the performance of widely held companies engaged in road, rail, marine and air transportation of cargoes and passengers, as well as master limited partnerships (MLPs) engaged in storage and transportation of oil, natural gas, coal and consumable fuels. Constituents of the Index are weighted based on current yield. The Index price level is calculated by S&P Dow Jones Indices and reported on a real-time basis under the Bloomberg ticker "CTRI".
ABOUT CUSHING® ASSET MANAGEMENT AND SWANK CAPITAL
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 energy infrastructure companies and other natural resource companies.
Cushing is also dedicated to serving the needs of investors by sponsoring a variety of benchmarks, including The Cushing® 30 MLP Index (Bloomberg Ticker: MLPX), The Cushing® 30 MLP Market Cap Index (Bloomberg Ticker: CMCI), 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) and The Cushing® Utility Index (Bloomberg Ticker: CUTI). For more information, please visit http://www.cushingasset.com/indices.
Contact:
Brian Atwood
214-692-6334
www.cushingasset.com
The Cushing® Transportation 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-CTRI
View original content:http://www.prnewswire.com/news-releases/cushing-asset-management-and-swank-capital-announce-rebalancing-of-the-cushingtransportation-index-300855785.html
SOURCE Cushing Asset Management, LP; Swank Capital, LLC
Article Date
5/23/20195/23/2019 - Cushing® Asset Management and Swank Capital Announce Rebalancing of The Cushing® Utility Index
Cushing® Asset Management and Swank Capital Announce Rebalancing of The Cushing® Utility Index
Source: Cushing Asset Management, LP; Swank Capital, LLC
DALLAS, May 23, 2019 /PRNewswire/ -- Cushing® Asset Management, LP, and Swank Capital, LLC, announce today the upcoming rebalancing of The Cushing® Utility Index (the "Index") as part of normal index operations. After the markets close on May 31, 2019, the constituents of the Index will be rebalanced, and the following changes will become effective on June 3, 2019:
Constituents added:
Antero Midstream Corporation (NYSE: AM)
BP Midstream Partners LP (NYSE: BPMP)
NGL Energy Partners LP (NYSE: NGL)
Constituents removed:
Energy Transfer LP (NYSE: ET)
Shell Midstream Partners, L.P. (NYSE: SHLX)
Sunoco LP (NYSE: SUN)
ABOUT THE CUSHING® UTILITY INDEX
The Cushing® Utility Index tracks the performance of widely held companies engaged in electric, gas and water utility services as well as master limited partnerships (MLPs) engaged in storage and transportation of oil, natural gas, coal and consumable fuels. Constituents of the Index are weighted based on current yield. The Index price level is calculated by S&P Dow Jones Indices and reported on a real-time basis under the Bloomberg ticker "CUTI".
ABOUT CUSHING® ASSET MANAGEMENT AND SWANK CAPITAL
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 energy infrastructure companies and other natural resource companies.
Cushing is also dedicated to serving the needs of investors by sponsoring a variety of benchmarks, including The Cushing® 30 MLP Index (Bloomberg Ticker: MLPX), The Cushing® 30 MLP Market Cap Index (Bloomberg Ticker: CMCI), 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) and The Cushing® Transportation Index (Bloomberg Ticker: CTRI). For more information, please visit http://www.cushingasset.com/indices.
Contact:
Brian Atwood
214-692-6334
www.cushingasset.com
The Cushing® Utility 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-CUTI
View original content:http://www.prnewswire.com/news-releases/cushing-asset-management-and-swank-capital-announce-rebalancing-of-the-cushing-utility-index-300855774.html
SOURCE Cushing Asset Management, LP; Swank Capital, LLC
Article Date
5/23/2019Sunoco LP Announces First Quarter Financial and Operating Results
Source: Sunoco LP
DALLAS, May 8, 2019 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("SUN" or the "Partnership") today reported financial and operating results for the three-month period ended March 31, 2019.
Net income was $109 million versus net loss of $315 million in the first quarter of 2018. Results include a non-cash $47 million write-down on assets held for sale offset by $93 million of non-cash inventory adjustments.
Adjusted EBITDA(1) totaled $153 million compared with $109 million in the first quarter of 2018. Results were supported by an increase in the Partnership's fuel volumes and lower operating expenses.
Distributable Cash Flow, as adjusted(1), was $99 million, compared to $85 million a year ago. This year-over-year increase reflects higher Adjusted EBITDA partially offset by higher cash interest expense and current income tax expense.
Recent Accomplishments and Other Developments
Distribution
On April 25, 2019, the Board of Directors of SUN's general partner declared a distribution for the first quarter of 2019 of $0.8255 per unit, which corresponds to $3.3020 per unit on an annualized basis. The distribution will be paid on May 15, 2019 to common unitholders of record on May 7, 2019.
Liquidity
At March 31, SUN had borrowings of $150 million against its revolving line of credit and other long-term debt of $2.9 billion. In the first quarter of 2019, SUN did not issue any common units through its at-the-market equity program.
Capital Spending
SUN's gross capital expenditures for the first quarter were $26 million, which included $22 million for growth capital and $4 million for maintenance capital.
Excluding acquisitions and expected capital commitment to the pipeline joint venture with Energy Transfer, SUN expects to spend approximately $90 million on growth capital and approximately $45 million on maintenance capital for the full year 2019.
SUN's segment results and other supplementary data are provided after the financial tables below.
(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. |
Earnings Conference Call
Sunoco LP management will hold a conference call on Thursday, May 9, at 9:30 a.m. CT (10:30 a.m. ET) to discuss first 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 10,000 convenience stores, independent dealers, commercial customers and distributors located in more than 30 states. SUN's general partner is owned by Energy Transfer Operating, L.P., a subsidiary of Energy Transfer LP (NYSE: ET).
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, Vice President – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Derek Rabe, CFA, Manager – Investor Relations, Growth and Strategy
(214) 840-5553, derek.rabe@sunoco.com
Media:
Alyson Gomez, Director – Communications
(214) 840-5641, alyson.gomez@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 | $ | 23 | $ | 56 | ||||
Accounts receivable, net | 490 | 374 | ||||||
Receivables from affiliates | 2 | 37 | ||||||
Inventories, net | 392 | 374 | ||||||
Other current assets | 75 | 64 | ||||||
Assets held for sale | 28 | — | ||||||
Total current assets | 1,010 | 905 | ||||||
Property and equipment | 2,066 | 2,133 | ||||||
Accumulated depreciation | (604) | (587) | ||||||
Property and equipment, net | 1,462 | 1,546 | ||||||
Other assets: | ||||||||
Lease right-of-use assets, net | 542 | — | ||||||
Goodwill | 1,560 | 1,559 | ||||||
Intangible assets | 915 | 915 | ||||||
Accumulated amortization | (221) | (207) | ||||||
Intangible assets, net | 694 | 708 | ||||||
Other non-current assets | 155 | 161 | ||||||
Total assets | $ | 5,423 | $ | 4,879 | ||||
Liabilities and equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 482 | $ | 412 | ||||
Accounts payable to affiliates | 30 | 149 | ||||||
Accrued expenses and other current liabilities | 225 | 299 | ||||||
Operating lease current liabilities | 24 | — | ||||||
Current maturities of long-term debt | 6 | 5 | ||||||
Total current liabilities | 767 | 865 | ||||||
Operating lease non-current liabilities | 527 | — | ||||||
Revolving line of credit | 150 | 700 | ||||||
Long-term debt, net | 2,879 | 2,280 | ||||||
Advances from affiliates | 81 | 24 | ||||||
Deferred tax liability | 90 | 103 | ||||||
Other non-current liabilities | 120 | 123 | ||||||
Total liabilities | 4,614 | 4,095 | ||||||
Commitments and contingencies (Note 12) | ||||||||
Equity: | ||||||||
Limited partners: | ||||||||
Common unitholders | ||||||||
(82,725,202 units issued and outstanding as of March 31, 2019 and 82,665,057 units issued and outstanding as of December 31, 2018) | 809 | 784 | ||||||
Class C unitholders - held by subsidiaries | ||||||||
(16,410,780 units issued and outstanding as of March 31, 2019 and December 31, 2018) | — | — | ||||||
Total equity | 809 | 784 | ||||||
Total liabilities and equity | $ | 5,423 | $ | 4,879 | ||||
SUNOCO LP | |||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | |||||||
(unaudited) | |||||||
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
(in millions, except unit and per unit amounts) | |||||||
Revenues: | |||||||
Motor fuel sales | $ | 3,583 | $ | 3,551 | |||
Non motor fuel sales | 74 | 176 | |||||
Lease income | 35 | 22 | |||||
Total revenues | 3,692 | 3,749 | |||||
Cost of sales and operating expenses: | |||||||
Cost of sales | 3,322 | 3,453 | |||||
General and administrative | 27 | 35 | |||||
Other operating | 84 | 98 | |||||
Lease expense | 14 | 15 | |||||
Loss on disposal of assets and impairment charges | 48 | 3 | |||||
Depreciation, amortization and accretion | 45 | 49 | |||||
Total cost of sales and operating expenses | 3,540 | 3,653 | |||||
Operating income | 152 | 96 | |||||
Other expenses: | |||||||
Interest expense, net | 42 | 34 | |||||
Loss on extinguishment of debt and other | 3 | 109 | |||||
Income (loss) from continuing operations before income taxes | 107 | (47) | |||||
Income tax expense (benefit) | (2) | 31 | |||||
Income (loss) from continuing operations | 109 | (78) | |||||
Loss from discontinued operations, net of income taxes | — | (237) | |||||
Net income (loss) and comprehensive income (loss) | $ | 109 | $ | (315) | |||
Net income (loss) per common unit - basic: | |||||||
Continuing operations - common units | $ | 1.08 | $ | (1.11) | |||
Discontinued operations - common units | 0.00 | (2.63) | |||||
Net income (loss) - common units | $ | 1.08 | $ | (3.74) | |||
Net income (loss) per common unit - diluted: | |||||||
Continuing operations - common units | $ | 1.07 | $ | (1.11) | |||
Discontinued operations - common units | 0.00 | (2.63) | |||||
Net income (loss) - common units | $ | 1.07 | $ | (3.74) | |||
Weighted average limited partner units outstanding: | |||||||
Common units - basic | 82,711,188 | 89,753,950 | |||||
Common units - diluted | 83,380,167 | 90,271,751 | |||||
Cash distributions per unit | $ | 0.8255 | $ | 0.8255 | |||
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. Our financial statements reflect two reportable segments, fuel distribution & marketing and all other.
The key operating metrics and accompanying footnotes set forth below are presented for the three months ended March 31, 2019 and 2018 and have been derived from our historical consolidated financial statements.
Three Months Ended March 31, | ||||||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||
Fuel | All Other | Total | Fuel | All Other | Total | |||||||||||||||||||
(dollars and gallons in millions, except gross profit per gallon) | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Motor fuel sales | $ | 3,442 | $ | 141 | $ | 3,583 | $ | 3,106 | $ | 445 | $ | 3,551 | ||||||||||||
Non motor fuel sales | 19 | 55 | 74 | 14 | 162 | 176 | ||||||||||||||||||
Lease income | 32 | 3 | 35 | 19 | 3 | 22 | ||||||||||||||||||
Total revenues | $ | 3,493 | $ | 199 | $ | 3,692 | $ | 3,139 | $ | 610 | $ | 3,749 | ||||||||||||
Gross profit (1): | ||||||||||||||||||||||||
Motor fuel sales | $ | 258 | $ | 27 | $ | 285 | $ | 161 | $ | 44 | $ | 205 | ||||||||||||
Non motor fuel sales | 17 | 33 | 50 | 10 | 59 | 69 | ||||||||||||||||||
Lease | 32 | 3 | 35 | 19 | 3 | 22 | ||||||||||||||||||
Total gross profit | $ | 307 | $ | 63 | $ | 370 | $ | 190 | $ | 106 | $ | 296 | ||||||||||||
Income (loss) from continuing operations | 137 | (28) | 109 | (58) | (20) | (78) | ||||||||||||||||||
Loss from discontinued operations, net of taxes | — | — | — | — | (237) | (237) | ||||||||||||||||||
Net income (loss) and comprehensive income (loss) | $ | 137 | $ | (28) | $ | 109 | $ | (58) | $ | (257) | $ | (315) | ||||||||||||
Adjusted EBITDA (2) | $ | 118 | $ | 35 | $ | 153 | $ | 80 | $ | 29 | $ | 109 | ||||||||||||
Distributable Cash Flow, as adjusted (2) | $ | 99 | $ | 85 | ||||||||||||||||||||
Operating Data: | ||||||||||||||||||||||||
Total motor fuel gallons sold (3) | 1,941 | 1,857 | ||||||||||||||||||||||
Motor fuel gross profit cents per gallon (3) (4) | 9.9 | ¢ | 10.5 | ¢ | ||||||||||||||||||||
The following table presents a reconciliation of Adjusted EBITDA to net income (loss), and Adjusted EBITDA to Distributable Cash Flow, as adjusted:
Three Months Ended March 31, | |||||||||||||||
2019 | 2018 | Change | |||||||||||||
(in millions) | |||||||||||||||
Segment Adjusted EBITDA | |||||||||||||||
Fuel distribution and marketing | $ | 118 | $ | 80 | $ | 38 | |||||||||
All other | 35 | 29 | 6 | ||||||||||||
Total | 153 | 109 | 44 | ||||||||||||
Depreciation, amortization and accretion (3) | (45) | (49) | 4 | ||||||||||||
Interest expense, net (3) | (42) | (36) | (6) | ||||||||||||
Non-cash compensation expense (3) | (3) | (3) | — | ||||||||||||
Loss on disposal of assets and impairment charges (3) | (48) | (26) | (22) | ||||||||||||
Loss on extinguishment of debt and other (3) | (3) | (129) | 126 | ||||||||||||
Unrealized gain on commodity derivatives (3) | 6 | — | 6 | ||||||||||||
Inventory adjustments (3) | 93 | 26 | 67 | ||||||||||||
Other non-cash adjustments | (4) | (3) | (1) | ||||||||||||
Income (loss) before income tax expense (3) | 107 | (111) | 218 | ||||||||||||
Income tax benefit (expense) (3) | 2 | (204) | 206 | ||||||||||||
Net income (loss) and comprehensive income (loss) | $ | 109 | $ | (315) | $ | 424 | |||||||||
Adjusted EBITDA | 153 | 109 | 44 | ||||||||||||
Cash interest expense (3) | 40 | 34 | 6 | ||||||||||||
Current income tax expense (3) | 12 | 468 | (456) | ||||||||||||
Transaction-related income taxes (5) | — | (480) | 480 | ||||||||||||
Maintenance capital expenditures (3) | 4 | 3 | 1 | ||||||||||||
Distributable Cash Flow | $ | 97 | $ | 84 | $ | 13 | |||||||||
Transaction-related expenses (3) | 2 | 3 | (1) | ||||||||||||
Series A Preferred distribution | — | (2) | 2 | ||||||||||||
Distributable Cash Flow, as adjusted | $ | 99 | $ | 85 | $ | 14 | |||||||||
Distributions to Partners: | |||||||||||||||
Limited Partners | $ | 68 | $ | 68 | |||||||||||
General Partner | 18 | 18 | |||||||||||||
Total distributions to be paid to partners | $ | 86 | $ | 86 | |||||||||||
Common Units outstanding – end of period | 82.7 | 82.5 | |||||||||||||
Distribution coverage ratio (6) | 1.15x | 1.00x | |||||||||||||
(1) Excludes depreciation, amortization and accretion. | |||||
(2) Adjusted EBITDA is defined as earnings before net interest expense, income taxes, depreciation, amortization and accretion expense, allocated non-cash compensation expense, unrealized gains and losses on commodity derivatives and inventory adjustments, and certain other operating expenses reflected in net income that we do not believe are indicative of ongoing core operations, such as gain or loss on disposal of assets and non-cash impairment charges. We define Distributable Cash Flow, as adjusted, as Adjusted EBITDA less cash interest expense, including the accrual of interest expense related to our long-term debt which is paid on a semi-annual basis, Series A Preferred distribution, current income tax expense, maintenance capital expenditures and other non-cash adjustments. | |||||
We believe Adjusted EBITDA and Distributable Cash Flow, as adjusted, 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, as adjusted, 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. | ||||
Adjusted EBITDA and Distributable Cash Flow, as adjusted, 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. Adjusted EBITDA and Distributable Cash Flow, as adjusted, 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 Adjusted EBITDA does not reflect cash requirements for such replacements; and | ||||
• | as not all companies use identical calculations, our presentation of Adjusted EBITDA and Distributable Cash Flow, as adjusted, may not be comparable to similarly titled measures of other companies. | ||||
(3) | Includes amounts from discontinued operations for the three months ended March 31, 2018. | ||||
(4) | Includes other non-cash adjustments and excludes the impact of inventory adjustments consistent with the definition of Adjusted EBITDA. | ||||
(5) | Transaction-related income taxes primarily related to the 7-Eleven Transaction. | ||||
(6) | The distribution coverage ratio for a period is calculated as Distributable Cash Flow attributable to partners, as adjusted, divided by distributions expected to be paid to partners of Sunoco LP in respect of such a period. | ||||
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SOURCE Sunoco LP
Article Date
5/8/20194/25/2019 - Sunoco LP Maintains Quarterly Distribution
Sunoco LP Maintains Quarterly Distribution
Source: Sunoco LP
DALLAS, April 25, 2019 /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 2019 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, 2019 to common unitholders of record on May 7, 2019.
SUN will release its first quarter 2019 financial and operating results after the market closes on Wednesday, May 8. In conjunction with the news release, management will hold a conference call on Thursday, May 9 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 16, 2019 by dialing 877-660-6853 (toll free) or 201-612-7415 and using the conference ID 13689275#. |
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 10,000 convenience stores, independent dealers, commercial customers and distributors located in more than 30 states. SUN's general partner is owned by Energy Transfer Operating, L.P., a wholly owned subsidiary of Energy Transfer LP (NYSE: ET).
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
Scott Grischow
Vice President – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Derek Rabe, CFA
Manager – Investor Relations, Growth and Strategy
(214) 840-5553, derek.rabe@sunoco.com
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SOURCE Sunoco LP
Article Date
4/25/2019Sunoco LP Announces Upsizing and Pricing of Private Offering of Senior Notes
Source: Sunoco LP
DALLAS, March 11, 2019 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("Sunoco") today announced that it has priced at 100% an upsized private offering of $600 million in aggregate principal amount of 6.000% senior notes due 2027 (the "notes"). 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 March 14, 2019, subject to the satisfaction of customary closing conditions.
Sunoco intends to use the net proceeds from the offering to repay a portion of the outstanding borrowings under its existing $1.5 billion revolving credit facility.
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 distributes motor fuel to approximately 10,000 convenience stores, independent dealers, commercial customers and distributors located in more than 30 states. Sunoco's general partner is owned by Energy Transfer Operating, L.P., a subsidiary of Energy Transfer LP (NYSE: ET).
Cautionary Statement Relevant to Forward-Looking Information
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 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.
Contacts
Scott Grischow
Vice President – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Derek Rabe, CFA
Manager – Investor Relations, Growth and Strategy
(214) 840-5553, derek.rabe@sunoco.com
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SOURCE Sunoco LP
Article Date
3/11/2019Sunoco LP Announces Private Offering of Senior Notes
Source: Sunoco LP
DALLAS, March 11, 2019 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("Sunoco") today announced a private offering of senior notes due 2027 (the "notes") in an aggregate principal amount of $500 million. 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 to repay a portion of the outstanding borrowings under its existing $1.5 billion revolving credit facility.
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 distributes motor fuel to approximately 10,000 convenience stores, independent dealers, commercial customers and distributors located in more than 30 states. Sunoco's general partner is owned by Energy Transfer Operating, L.P., a subsidiary of Energy Transfer LP (NYSE: ET).
Cautionary Statement Relevant to Forward-Looking Information
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 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.
Contacts
Scott Grischow
Vice President – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Derek Rabe, CFA
Manager – Investor Relations, Growth and Strategy
(214) 840-5553, derek.rabe@sunoco.com
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SOURCE Sunoco LP
Article Date
3/11/20192/22/2019 - Sunoco LP Files 2018 Annual Report on Form 10-K
Sunoco LP Files 2018 Annual Report on Form 10-K
Source: Sunoco LP
DALLAS, Feb. 22, 2019 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("SUN" or the "Partnership") today filed operational and financial results for the fiscal year ended December 31, 2018 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 2018 information is available or to sign up to receive your K-1 electronically.
About Sunoco LP (NYSE: SUN) is a master limited partnership that distributes motor fuel to approximately 10,000 convenience stores, independent dealers, commercial customers and distributors located in more than 30 states. SUN's general partner is owned by Energy Transfer Operating, L.P., a subsidiary of Energy Transfer LP (NYSE: ET).
Contacts
Investors:
Scott Grischow, Vice President – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Derek Rabe, CFA, Manager – Investor Relations, Growth and Strategy
(214) 840-5553, derek.rabe@sunoco.com
Media:
Alyson Gomez, Director – Communications
(214) 840-5641, alyson.gomez@sunoco.com
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SOURCE Sunoco LP
Article Date
2/22/20192/21/2019 - Cushing® Asset Management and Swank Capital Announce Rebalancing of The Cushing® Energy Index
Cushing® Asset Management and Swank Capital Announce Rebalancing of The Cushing® Energy Index
Source: Cushing Asset Management, LP; Swank Capital, LLC
DALLAS, Feb. 21, 2019 /PRNewswire/ -- Cushing® Asset Management, LP, and Swank Capital, LLC, announce today the upcoming rebalancing of The Cushing® Energy Index (the "Index") as part of normal index operations. After the markets close on February 28, 2019, the constituents of the Index will be rebalanced, and the following changes will become effective on March 1, 2019:
Constituents added:
Genesis Energy, L.P. (NYSE: GEL)
EnLink Midstream, LLC (NYSE: ENLC)
Tallgrass Energy, LP (NYSE: TGE)
Sunoco LP (NYSE: SUN)
Constituents removed:
Alliance Resource Partners, L.P. (NASDAQ: ARLP)
Andeavor Logistics LP (NYSE: ANDX)
Crestwood Equity Partners LP (NYSE: CEQP)
MPLX LP (NYSE: MPLX)
ABOUT THE CUSHING® ENERGY INDEX
The Cushing® Energy Index tracks the performance of widely held companies engaged in exploration and production, refining and marketing, and storage and transportation of oil, natural gas, coal and consumable fuels, as well as oil and natural gas equipment and services companies. Constituents of the Index are weighted based on current yield. The Index price level is calculated by S&P Dow Jones Indices and reported on a real-time basis under the Bloomberg ticker "CENI".
ABOUT CUSHING® ASSET MANAGEMENT AND SWANK CAPITAL
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 energy infrastructure companies and other natural resource companies.
Cushing is also dedicated to serving the needs of investors by sponsoring a variety of benchmarks, including The Cushing® 30 MLP Index (Bloomberg Ticker: MLPX), The Cushing® 30 MLP Market Cap Index (Bloomberg Ticker: CMCI), The Cushing® MLP High Income Index (Bloomberg Ticker: MLPY), 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:
Brian Atwood
214-692-6334
www.cushingasset.com
The Cushing® Energy 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-CENI
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SOURCE Cushing Asset Management, LP; Swank Capital, LLC
Article Date
2/21/20192/21/2019 - Cushing® Asset Management and Swank Capital Announce Rebalancing of The Cushing® Utility Index
Cushing® Asset Management and Swank Capital Announce Rebalancing of The Cushing® Utility Index
Source: Cushing Asset Management, LP; Swank Capital, LLC
DALLAS, Feb. 21, 2019 /PRNewswire/ -- Cushing® Asset Management, LP, and Swank Capital, LLC, announce today the upcoming rebalancing of The Cushing® Utility Index (the "Index") as part of normal index operations. After the markets close on February 28, 2019, the constituents of the Index will be rebalanced, and the following changes will become effective on March 1, 2019:
Constituents added:
Genesis Energy, L.P. (NYSE: GEL)
EnLink Midstream, LLC (NYSE: ENLC)
Tallgrass Energy, LP (NYSE: TGE)
Sunoco LP (NYSE: SUN)
Atmos Energy Corporation (NYSE: ATO)
Constituents removed:
Alliance Resource Partners, L.P. (NASDAQ: ARLP)
Andeavor Logistics LP (NYSE: ANDX)
Crestwood Equity Partners LP (NYSE: CEQP)
MPLX LP (NYSE: MPLX)
ABOUT THE CUSHING® UTILITY INDEX
The Cushing® Utility Index tracks the performance of widely held companies engaged in electric, gas and water utility services as well as master limited partnerships (MLPs) engaged in storage and transportation of oil, natural gas, coal and consumable fuels. Constituents of the Index are weighted based on current yield. The Index price level is calculated by S&P Dow Jones Indices and reported on a real-time basis under the Bloomberg ticker "CUTI".
ABOUT CUSHING® ASSET MANAGEMENT AND SWANK CAPITAL
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 energy infrastructure companies and other natural resource companies.
Cushing is also dedicated to serving the needs of investors by sponsoring a variety of benchmarks, including The Cushing® 30 MLP Index (Bloomberg Ticker: MLPX), The Cushing® 30 MLP Market Cap Index (Bloomberg Ticker: CMCI), 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) and The Cushing® Transportation Index (Bloomberg Ticker: CTRI). For more information, please visit http://www.cushingasset.com/indices.
Contact:
Brian Atwood
214-692-6334
www.cushingasset.com
The Cushing® Utility 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-CUTI
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SOURCE Cushing Asset Management, LP; Swank Capital, LLC
Article Date
2/21/2019Sunoco LP Announces Fourth Quarter and Full Year Financial and Operating Results
Source: Sunoco LP
DALLAS, Feb. 20, 2019 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("SUN" or the "Partnership") today reported financial and operating results for the three- and twelve-month period ended December 31, 2018.
For the three months ended December 31, 2018, net loss was $72 million versus net income of $232 million in the fourth quarter of 2017. The net loss includes approximately $135 million of non-cash inventory adjustments.
Adjusted EBITDA(1) for the three months ended December 31, 2018 totaled $180 million compared with $158 million in the fourth quarter of 2017. Results were supported by an increase in the Partnership's fuel volumes and strong wholesale fuel margins.
Distributable Cash Flow, as adjusted(1), for the quarter was $114 million, compared to $106 million a year ago. This year-over-year increase reflects higher Adjusted EBITDA and lower cash interest expense offset by higher current tax expense and maintenance capital expenditures.
Recent Accomplishments and Other Developments
Distribution
On January 25, 2019, the Board of Directors of SUN's general partner declared a distribution for the fourth quarter of 2018 of $0.8255 per unit, which corresponds to $3.3020 per unit on an annualized basis. The distribution was paid on February 14, 2019 to common unitholders of record on February 6, 2019.
Liquidity
At December 31, SUN had borrowings of $700 million against its revolving line of credit and other long-term debt of $2.3 billion. In the fourth quarter of 2018, SUN did not issue any common units through its at-the-market equity program.
Capital Spending
SUN's gross capital expenditures for the fourth quarter were $41 million, which included $26 million for growth capital and $15 million for maintenance capital.
Gross capital expenditures for the full year 2018 were $103 million, which included $72 million for growth capital and $31 million for maintenance capital.
Excluding acquisitions, SUN expects to spend approximately $90 million on growth capital and approximately $45 million on maintenance capital for the full year 2019.
SUN's segment results and other supplementary data are provided after the financial tables below.
(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. |
Earnings Conference Call
Sunoco LP management will hold a conference call on Thursday, February 21, 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 10,000 convenience stores, independent dealers, commercial customers and distributors located in more than 30 states. SUN's general partner is owned by Energy Transfer Operating, L.P., a subsidiary of Energy Transfer LP (NYSE: ET).
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, Vice President – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Derek Rabe, CFA, Manager – Investor Relations, Growth and Strategy
(214) 840-5553, derek.rabe@sunoco.com
Media:
Alyson Gomez, Director – Communications
(214) 840-5641, alyson.gomez@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 | $ | 56 | $ | 28 | |||
Accounts receivable, net | 374 | 541 | |||||
Receivables from affiliates | 37 | 155 | |||||
Inventories, net | 374 | 426 | |||||
Other current assets | 64 | 81 | |||||
Assets held for sale | — | 3,313 | |||||
Total current assets | 905 | 4,544 | |||||
Property and equipment, net | 1,546 | 1,557 | |||||
Other assets: | |||||||
Goodwill | 1,559 | 1,430 | |||||
Intangible assets, net | 708 | 768 | |||||
Other noncurrent assets | 161 | 45 | |||||
Total assets | $ | 4,879 | $ | 8,344 | |||
Liabilities and equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 412 | $ | 559 | |||
Accounts payable to affiliates | 149 | 206 | |||||
Accrued expenses and other current liabilities | 299 | 368 | |||||
Current maturities of long-term debt | 5 | 6 | |||||
Liabilities associated with assets held for sale | — | 75 | |||||
Total current liabilities | 865 | 1,214 | |||||
Revolving line of credit | 700 | 765 | |||||
Long-term debt, net | 2,280 | 3,519 | |||||
Advances from affiliates | 24 | 85 | |||||
Deferred tax liability | 103 | 389 | |||||
Other noncurrent liabilities | 123 | 125 | |||||
Total liabilities | 4,095 | 6,097 | |||||
Commitments and contingencies | |||||||
Equity: | |||||||
Limited partners: | |||||||
Series A Preferred unitholders - affiliated (no units issued and outstanding as of December 31, 2018 and 12,000,000 units issued and outstanding as of December 31, 2017) | — | 300 | |||||
Common unitholders (82,665,057 units issued and outstanding as of December 31, 2018 and 99,667,999 units issued and outstanding as of December 31, 2017) | 784 | 1,947 | |||||
Class C unitholders - held by subsidiary (16,410,780 units issued and outstanding as of December 31, 2018 and December 31, 2017) | — | — | |||||
Total equity | 784 | 2,247 | |||||
Total liabilities and equity | $ | 4,879 | $ | 8,344 | |||
SUNOCO LP CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (unaudited) | |||||||||||||||
Three Months Ended | Year Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(dollars in millions, except unit and per unit amounts) | |||||||||||||||
Revenues: | |||||||||||||||
Motor fuel sales | $ | 3,784 | $ | 2,758 | $ | 16,504 | $ | 10,910 | |||||||
Rental income | 39 | 22 | 130 | 89 | |||||||||||
Other | 54 | 179 | 360 | 724 | |||||||||||
Total revenues | 3,877 | 2,959 | 16,994 | 11,723 | |||||||||||
Cost of sales and operating expenses: | |||||||||||||||
Cost of sales | 3,694 | 2,682 | 15,872 | 10,615 | |||||||||||
General and administrative | 38 | 42 | 141 | 140 | |||||||||||
Other operating | 93 | 94 | 363 | 375 | |||||||||||
Rent | 18 | 19 | 72 | 81 | |||||||||||
Loss on disposal of assets and impairment charges | 22 | 12 | 19 | 114 | |||||||||||
Depreciation, amortization and accretion | 50 | 45 | 182 | 169 | |||||||||||
Total cost of sales and operating expenses | 3,915 | 2,894 | 16,649 | 11,494 | |||||||||||
Operating income (loss) | (38) | 65 | 345 | 229 | |||||||||||
Interest expense, net | 39 | 46 | 144 | 209 | |||||||||||
Loss on extinguishment of debt and other | — | — | 109 | — | |||||||||||
Income (loss) from continuing operations before income taxes | (77) | 19 | 92 | 20 | |||||||||||
Income tax expense (benefit) | (5) | (202) | 34 | (306) | |||||||||||
Income (loss) from continuing operations | (72) | 221 | 58 | 326 | |||||||||||
Income (loss) from discontinued operations, net of income taxes | — | 11 | (265) | (177) | |||||||||||
Net income (loss) and comprehensive income (loss) | $ | (72) | $ | 232 | $ | (207) | $ | 149 | |||||||
Net income (loss) per common unit - basic: | |||||||||||||||
Continuing operations | $ | (1.11) | $ | 1.91 | $ | (0.25) | $ | 2.13 | |||||||
Discontinued operations | — | 0.11 | (3.14) | (1.78) | |||||||||||
Net income (loss) | $ | (1.11) | $ | 2.02 | $ | (3.39) | $ | 0.35 | |||||||
Net income (loss) per common unit - diluted: | |||||||||||||||
Continuing operations | $ | (1.11) | $ | 1.90 | $ | (0.25) | $ | 2.12 | |||||||
Discontinued operations | — | 0.11 | (3.14) | (1.78) | |||||||||||
Net income (loss) | $ | (1.11) | $ | 2.01 | $ | (3.39) | $ | 0.34 | |||||||
Weighted average limited partner units outstanding: | |||||||||||||||
Common units - basic | 82,543,312 | 99,522,581 | 84,299,893 | 99,270,120 | |||||||||||
Common units - diluted | 83,226,399 | 100,177,114 | 84,820,570 | 99,728,354 | |||||||||||
Cash distribution per unit | $ | 0.8255 | $ | 0.8255 | $ | 3.30 | $ | 3.30 | |||||||
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.
Our financial statements reflect two reportable segments, fuel distribution & marketing and all other. After the Retail Divestment and the conversion of 207 retail sites to commission agent sites, the Partnership has renamed the former Wholesale segment to Fuel Distribution and Marketing and the former Retail segment is renamed to All Other.
Key operating metrics set forth below are presented for the years and three months ended December 31, 2018 and 2017 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, | ||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||
Fuel | All Other | Total | Fuel | All Other | Total | |||||||||||||||||||
(dollars and gallons in millions, except gross profit per gallon) | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Motor fuel sales | $ | 15,466 | $ | 1,038 | $ | 16,504 | $ | 9,333 | $ | 1,577 | $ | 10,910 | ||||||||||||
Rental income | 118 | 12 | 130 | 77 | 12 | 89 | ||||||||||||||||||
Other | 48 | 312 | 360 | 50 | 674 | 724 | ||||||||||||||||||
Total revenues | $ | 15,632 | $ | 1,362 | $ | 16,994 | $ | 9,460 | $ | 2,263 | $ | 11,723 | ||||||||||||
Gross profit (1): | ||||||||||||||||||||||||
Motor fuel | $ | 673 | $ | 123 | $ | 796 | $ | 535 | $ | 157 | $ | 692 | ||||||||||||
Rental | 118 | 12 | 130 | 77 | 12 | 89 | ||||||||||||||||||
Other | 40 | 156 | 196 | 39 | 288 | 327 | ||||||||||||||||||
Total gross profit | $ | 831 | $ | 291 | $ | 1,122 | $ | 651 | $ | 457 | $ | 1,108 | ||||||||||||
Income (loss) from continuing operations | 80 | (22) | 58 | 167 | 159 | 326 | ||||||||||||||||||
Loss from discontinued operations, net of taxes | — | (265) | (265) | — | (177) | (177) | ||||||||||||||||||
Net income (loss) and comprehensive income (loss) | $ | 80 | $ | (287) | $ | (207) | $ | 167 | $ | (18) | $ | 149 | ||||||||||||
Adjusted EBITDA (2) | $ | 554 | $ | 84 | $ | 638 | $ | 346 | $ | 386 | $ | 732 | ||||||||||||
Distributable Cash Flow, as adjusted (2) | $ | 455 | $ | 473 | ||||||||||||||||||||
Operating Data: | ||||||||||||||||||||||||
Total motor fuel gallons sold (3) | 7,859 | 7,947 | ||||||||||||||||||||||
Motor fuel gross profit cents per gallon (3) (4) | 11.4 | ¢ | 15.2 | ¢ | ||||||||||||||||||||
The following table presents a reconciliation of Adjusted EBITDA to net income (loss), and Adjusted EBITDA to Distributable Cash Flow, as adjusted:
Year Ended December 31, | |||||||||||
2018 | 2017 | Change | |||||||||
(in millions) | |||||||||||
Segment Adjusted EBITDA | |||||||||||
Fuel distribution and marketing | $ | 554 | $ | 346 | $ | 208 | |||||
All other | 84 | 386 | (302) | ||||||||
Total | 638 | 732 | (94) | ||||||||
Depreciation, amortization and accretion (3) | (182) | (203) | 21 | ||||||||
Interest expense, net (3) | (146) | (245) | 99 | ||||||||
Non-cash compensation expense (3) | (12) | (24) | 12 | ||||||||
Loss on disposal of assets and impairment charges (3) | (80) | (400) | 320 | ||||||||
Loss on extinguishment of debt and other (3) | (129) | — | (129) | ||||||||
Unrealized gain (loss) on commodity derivatives (3) | (6) | 3 | (9) | ||||||||
Inventory adjustments (3) | (84) | 28 | (112) | ||||||||
Other non-cash adjustments | (14) | — | (14) | ||||||||
Income (loss) before income tax (expense) benefit (3) | (15) | (109) | 94 | ||||||||
Income tax (expense) benefit (3) | (192) | 258 | (450) | ||||||||
Net income (loss) and comprehensive income (loss) | $ | (207) | $ | 149 | $ | (356) | |||||
Adjusted EBITDA | $ | 638 | $ | 732 | $ | (94) | |||||
Cash interest expense (3) | 142 | 231 | (89) | ||||||||
Current income tax expense (3) | 489 | 4 | 485 | ||||||||
Transaction-related income taxes (5) | (470) | — | (470) | ||||||||
Maintenance capital expenditures (3) | 31 | 48 | (17) | ||||||||
Distributable Cash Flow | 446 | 449 | (3) | ||||||||
Transaction-related expenses (3) | 11 | 47 | (36) | ||||||||
Series A Preferred distribution | (2) | (23) | 21 | ||||||||
Distributable Cash Flow, as adjusted | $ | 455 | $ | 473 | $ | (18) | |||||
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, | ||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||
Fuel | All Other | Total | Fuel | All Other | Total | |||||||||||||||||||
(dollars and gallons in millions, except gross profit per gallon) | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Motor fuel sales | $ | 3,606 | $ | 178 | $ | 3,784 | $ | 2,344 | $ | 414 | $ | 2,758 | ||||||||||||
Rental income | 36 | 3 | 39 | 19 | 3 | 22 | ||||||||||||||||||
Other | 7 | 47 | 54 | 12 | 167 | 179 | ||||||||||||||||||
Total revenues | $ | 3,649 | $ | 228 | $ | 3,877 | $ | 2,375 | $ | 584 | $ | 2,959 | ||||||||||||
Gross profit (1): | ||||||||||||||||||||||||
Motor fuel | $ | 86 | $ | 31 | $ | 117 | $ | 151 | $ | 25 | $ | 176 | ||||||||||||
Rental | 36 | 3 | 39 | 19 | 3 | 22 | ||||||||||||||||||
Other | 5 | 22 | 27 | 10 | 69 | 79 | ||||||||||||||||||
Total gross profit | $ | 127 | $ | 56 | $ | 183 | $ | 180 | $ | 97 | $ | 277 | ||||||||||||
Income (loss) from continuing operations | (52) | (20) | (72) | 47 | 174 | 221 | ||||||||||||||||||
Income from discontinued operations, net of taxes | — | — | — | — | 11 | 11 | ||||||||||||||||||
Net income (loss) and comprehensive income (loss) | $ | (52) | $ | (20) | $ | (72) | $ | 47 | $ | 185 | $ | 232 | ||||||||||||
Adjusted EBITDA (2) | $ | 159 | $ | 21 | $ | 180 | $ | 90 | $ | 68 | $ | 158 | ||||||||||||
Distributable Cash Flow, as adjusted (2) | $ | 114 | $ | 106 | ||||||||||||||||||||
Operating Data: | ||||||||||||||||||||||||
Total motor fuel gallons sold (3) | 2,021 | 1,972 | ||||||||||||||||||||||
Motor fuel gross profit cents per gallon (3) (4) | 12.4 | ¢ | 15.3 | ¢ | ||||||||||||||||||||
The following table presents a reconciliation of Adjusted EBITDA to net income (loss), and Adjusted EBITDA to Distributable Cash Flow, as adjusted:
Three Months Ended | |||||||||||
2018 | 2017 | Change | |||||||||
(in millions) | |||||||||||
Segment Adjusted EBITDA | |||||||||||
Fuel distribution and marketing | $ | 159 | $ | 90 | $ | 69 | |||||
All other | 21 | 68 | (47) | ||||||||
Total | 180 | 158 | 22 | ||||||||
Depreciation, amortization and accretion (3) | (50) | (48) | (2) | ||||||||
Interest expense, net (3) | (39) | (61) | 22 | ||||||||
Non-cash compensation expense (3) | (2) | (6) | 4 | ||||||||
Loss on disposal of assets and impairment charges (3) | (22) | (33) | 11 | ||||||||
Unrealized loss on commodity derivatives (3) | (5) | (2) | (3) | ||||||||
Inventory adjustments (3) | (135) | 20 | (155) | ||||||||
Other non-cash adjustments | (4) | — | (4) | ||||||||
Income (loss) before income tax (expense) benefit (3) | (77) | 28 | (105) | ||||||||
Income tax (expense) benefit (3) | 5 | 204 | (199) | ||||||||
Net income (loss) and comprehensive income (loss) | $ | (72) | $ | 232 | $ | (304) | |||||
Adjusted EBITDA | $ | 180 | $ | 158 | $ | 22 | |||||
Cash interest expense (3) | 39 | 59 | (20) | ||||||||
Current income tax expense (3) | 11 | (3) | 14 | ||||||||
Maintenance capital expenditures (3) | 15 | 13 | 2 | ||||||||
Distributable Cash Flow | 115 | 89 | 26 | ||||||||
Transaction-related expenses (3) | (1) | 25 | (26) | ||||||||
Series A Preferred distribution | — | (8) | 8 | ||||||||
Distributable Cash Flow, as adjusted | $ | 114 | $ | 106 | $ | 8 | |||||
_______________________________ |
(1) Excludes depreciation, amortization and accretion. |
(2) Adjusted EBITDA is defined as earnings before net interest expense, income taxes, depreciation, amortization and accretion expense, allocated non-cash compensation expense, unrealized gains and losses on commodity derivatives and inventory adjustments, and certain other operating expenses reflected in net income that we do not believe are indicative of ongoing core operations, such as gain or loss on disposal of assets and non-cash impairment charges. We define Distributable Cash Flow, as adjusted, as Adjusted EBITDA less cash interest expense, including the accrual of interest expense related to our long-term debt which is paid on a semi-annual basis, Series A Preferred distribution, current income tax expense, maintenance capital expenditures and other non-cash adjustments. |
We believe Adjusted EBITDA and Distributable Cash Flow, as adjusted, 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, as adjusted, 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. |
Adjusted EBITDA and Distributable Cash Flow, as adjusted, 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. Adjusted EBITDA and Distributable Cash Flow, as adjusted, 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 Adjusted EBITDA does not reflect cash requirements for such replacements; and |
• as not all companies use identical calculations, our presentation of Adjusted EBITDA and Distributable Cash Flow, as adjusted, may not be comparable to similarly titled measures of other companies. |
(3) Includes amounts from discontinued operations. |
(4) Includes other non-cash adjustments and excludes the impact of inventory adjustments consistent with the definition of Adjusted EBITDA. |
(5) Transaction-related income taxes primarily related to the 7-Eleven Transaction. |
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SOURCE Sunoco LP
Article Date
2/20/20191/25/2019 - Sunoco LP Maintains Quarterly Distribution
Sunoco LP Maintains Quarterly Distribution
Source: Sunoco LP
DALLAS, Jan. 25, 2019 /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 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 February 14, 2019 to common unitholders of record on February 6, 2019.
SUN will release its fourth quarter 2018 financial and operating results after the market closes on Wednesday, February 20. In conjunction with the news release, management will hold a conference call on Thursday, February 21 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 February 28, 2019 by dialing 877-660-6853 (toll free) or 201-612-7415 and using the conference ID 13686184#. |
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 10,000 convenience stores, independent dealers, commercial customers and distributors located in more than 30 states. SUN's general partner is owned by Energy Transfer Operating, L.P., a wholly owned subsidiary of Energy Transfer LP (NYSE: ET).
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
Scott Grischow
Senior Director – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Derek Rabe, CFA
Manager – Investor Relations, Growth and Strategy
(214) 840-5553, derek.rabe@sunoco.com
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SOURCE Sunoco LP
Article Date
1/25/20191/18/2019 - Sunoco LP Announces Fuel Distribution Acquisitions and Strategic Divestiture of its Ethanol Facility
Sunoco LP Announces Fuel Distribution Acquisitions and Strategic Divestiture of its Ethanol Facility
Source: Sunoco LP
DALLAS, Jan. 18, 2019 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("Sunoco") announced the completion of the acquisition of the wholesale fuel distribution business from Schmitt Sales, Inc. and the execution of a definitive agreement to acquire certain convenience store locations from Speedway LLC. Sunoco will convert the acquired convenience store locations to wholesale distribution sites.
Combined, these wholesale fuels businesses distribute approximately 180 million gallons of fuel annually across a network of dealer and commission agent-operated locations in the Upstate New York, Ohio, Pennsylvania and West Virginia markets.
Total consideration for both acquisitions is approximately $50 million plus working capital adjustments.
These acquisitions are consistent with Sunoco's strategy of utilizing its scale to grow the core fuel distribution business. Sunoco will fund the transactions with cash on hand and amounts available under its revolving credit facility, while continuing to maintain its targeted leverage ratio. These transactions are expected to be accretive to Sunoco with respect to distributable cash flow in the first year.
Additionally, Sunoco announced the execution of a definitive asset purchase agreement with Attis Industries Inc. (NASDAQ: ATIS) ("Attis") for the sale of Sunoco's ethanol plant, including the grain malting operation, in Fulton, New York. As part of the transaction, Sunoco will enter into a 10-year ethanol offtake agreement with Attis.
Total consideration for the divestiture is $20 million in cash. Sunoco expects to use the proceeds to repay indebtedness as it continues to maintain its targeted leverage ratio. The transaction is subject to regulatory clearances and customary closing conditions and is expected to close in the first quarter of 2019.
About Sunoco LP
Sunoco LP (NYSE: SUN) is a master limited partnership that distributes motor fuel to approximately 10,000 convenience stores, independent dealers, commercial customers and distributors located in more than 30 states. Sunoco's general partner is owned by Energy Transfer Operating, L.P., a subsidiary of Energy Transfer LP (NYSE: ET).
Cautionary Statement Relevant to Forward-Looking Information
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 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, CFA
Manager – Investor Relations, Growth and Strategy
(214) 840-5553, derek.rabe@sunoco.com
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SOURCE Sunoco LP
Article Date
1/18/2019Sunoco LP Completes the Acquisition of the Refined Products Terminalling Business From American Midstream Partners, LP
Source: Sunoco LP
DALLAS, Dec. 20, 2018 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("Sunoco") announced today the completion of the previously announced acquisition of the refined products terminalling business from American Midstream Partners, LP (NYSE: AMID) for approximately $125 million plus working capital adjustments.
Sunoco funded the transaction with cash on hand and amounts available under its revolving credit facility, while continuing to maintain its targeted leverage ratio. The acquisition is expected to be accretive to Sunoco with respect to distributable cash flow in the first year.
About Sunoco LP
Sunoco LP (NYSE: SUN) is a master limited partnership that distributes motor fuel to approximately 10,000 convenience stores, independent dealers, commercial customers and distributors located in more than 30 states. Sunoco's general partner is owned by Energy Transfer Operating, L.P., a subsidiary of Energy Transfer LP (NYSE: ET).
Cautionary Statement Relevant to Forward-Looking Information
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 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, CFA
Manager – Investor Relations, Growth and Strategy
(214) 840-5553, derek.rabe@sunoco.com
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SOURCE Sunoco LP
Article Date
12/20/201812/14/2018 - Alerian Index Series December 2018 Index Review
Alerian Index Series December 2018 Index Review
Source: Alerian
DALLAS, Dec. 14, 2018 /PRNewswire/ -- Alerian announced the results of the December quarterly review for the Alerian Index Series. All changes will be implemented as of the close of business on Friday, December 21, 2018.
AmeriGas Partners (NYSE: APU), Alliance Resource Partners (NASDAQ: ARLP), GasLog Partners (NYSE: GLOP), Golar LNG Partners (NASDAQ: GMLP), Hi-Crush Partners (NYSE: HCLP), Suburban Propane Partners (NYSE: SPH), Sunoco (NYSE: SUN), Teekay LNG Partners (NYSE: TGP), USA Compression Partners (NYSE: USAC), and Viper Energy Partners (NASDAQ: VNOM) will be removed.
There are no constituent changes to the Alerian MLP Infrastructure Index (AMZI) or the Alerian Natural Gas MLP Index (ANGI).
In addition, 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 November 30, 2018, over $13 billion is directly tied to the Alerian Index Series through exchange-traded funds and notes, separately managed accounts, and structured products. Visit alerian.com to learn more.
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SOURCE Alerian
Article Date
12/14/2018Sunoco LP Extends Exchange Offers of its 4.875% Senior Notes due 2023, 5.500% Senior Notes due 2026 and 5.875% Senior Notes due 2028
Source: Sunoco LP
DALLAS, Nov. 19, 2018 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("Sunoco") announced today that it has further extended the expiration date for its previously announced exchange offers relating to its outstanding 4.875% Senior Notes due 2023 (the "2023 Notes"), 5.500% Senior Notes due 2026 (the "2026 Notes") and 5.875% Senior Notes due 2028 (the "2028 Notes" and, together with the 2023 Notes and the 2026 Notes, the "Notes"), which commenced on October 12, 2018.
The registered exchange offers, which were scheduled to expire at 5:00 p.m., New York City time, on November 16, 2018, have been extended until 5:00 p.m., New York City time, on November 30, 2018, unless further extended. Holders of the Notes previously tendered for exchange have the right to withdraw tenders of the Notes at any time prior to the expiration of the exchange offers. As of November 16, 2018, holders of 99.94% of the outstanding principal amount of the 2023 Notes, 99.88% of the outstanding principal amount of the 2026 Notes and 99.75% of the outstanding principal of the 2028 Notes had tendered their Notes in the exchange.
About Sunoco LP
Sunoco LP (NYSE: SUN) is a master limited partnership distributes motor fuel to approximately 10,000 convenience stores, independent dealers, commercial customers and distributors located in more than 30 states. Sunoco's general partner is owned by Energy Transfer Operating, L.P., a subsidiary of Energy Transfer LP (NYSE: ET).
Cautionary Statement Relevant to Forward-Looking Information
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 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, CFA
Manager – Investor Relations, Growth and Strategy
(214) 840-5553, derek.rabe@sunoco.com
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SOURCE Sunoco LP
Article Date
11/19/201811/15/2018 - Sunoco LP Announces Definitive Agreement to Acquire Refined Products Terminals From American Midstream Partners LP
Sunoco LP Announces Definitive Agreement to Acquire Refined Products Terminals From American Midstream Partners LP
Source: Sunoco LP
DALLAS, Nov. 15, 2018 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("Sunoco") announced today the execution of a definitive agreement to purchase the refined products terminalling business from American Midstream Partners, LP (NYSE: AMID) for approximately $125 million plus working capital adjustments.
The refined products terminalling business consists of terminals located in Caddo Mills, Texas and North Little Rock, Arkansas with a combined 21 tanks, approximately 1.3 million barrels of storage capacity and approximately 77,500 barrels per day of total throughput capacity.
The acquisition builds on Sunoco's strategy of adding fee-based refined product terminals into the overall portfolio. The acquisition is subject to customary closing conditions including clearance under the Hart-Scott-Rodino Act and is expected to close in the fourth quarter of 2018. The transaction is expected to be accretive to Sunoco with respect to distributable cash flow in the first year.
About Sunoco LP
Sunoco LP (NYSE: SUN) is a master limited partnership that distributes motor fuel to approximately 10,000 convenience stores, independent dealers, commercial customers and distributors located in more than 30 states. SUN's general partner is owned by Energy Transfer Operating, L.P., a subsidiary of Energy Transfer LP (NYSE: ET).
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, Growth and Strategy
(214) 840-5553, derek.rabe@sunoco.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/sunoco-lp-announces-definitive-agreement-to-acquire-refined-products-terminals-from-american-midstream-partners-lp-300750934.html
SOURCE Sunoco LP
Article Date
11/15/2018Sunoco LP Extends Exchange Offers of its 4.875% Senior Notes due 2023, 5.500% Senior Notes due 2026 and 5.875% Senior Notes due 2028
Source: Sunoco LP
DALLAS, Nov. 12, 2018 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("Sunoco") announced today that it has extended the expiration date for its previously announced exchange offers relating to its outstanding 4.875% Senior Notes due 2023 (the "2023 Notes"), 5.500% Senior Notes due 2026 (the "2026 Notes") and 5.875% Senior Notes due 2028 (the "2028 Notes" and, together with the 2023 Notes and the 2026 Notes, the "Notes"), which commenced on October 12, 2018.
The registered exchange offers, which were initially scheduled to expire at 5:00 p.m., New York City time, on November 9, 2018, have been extended until 5:00 p.m., New York City time, on November 16, 2018, unless further extended. Holders of the Notes previously tendered for exchange have the right to withdraw tenders of the Notes at any time prior to the expiration of the exchange offers. As of November 9, 2018, holders of 99.94% of the outstanding principal amount of the 2023 Notes, 99.88% of the outstanding principal amount of the 2026 Notes and 99.75% of the outstanding principal of the 2028 Notes had tendered their Notes in the exchange.
About Sunoco LP
Sunoco LP (NYSE: SUN) is a master limited partnership distributes motor fuel to approximately 10,000 convenience stores, independent dealers, commercial customers and distributors located in more than 30 states. Sunoco's general partner is owned by Energy Transfer Operating, L.P., a subsidiary of Energy Transfer LP (NYSE: ET).
Cautionary Statement Relevant to Forward-Looking Information
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 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
CFA, Manager – Investor Relations, Growth and Strategy
(214) 840-5553, derek.rabe@sunoco.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/sunoco-lp-extends-exchange-offers-of-its-4-875-senior-notes-due-2023--5-500-senior-notes-due-2026-and-5-875-senior-notes-due-2028--300748541.html
SOURCE Sunoco LP
Article Date
11/12/2018Sunoco LP Announces Third Quarter Financial and Operating Results
Source: Sunoco LP
DALLAS, Nov. 7, 2018 /PRNewswire/ --
Sunoco LP (NYSE: SUN) ("SUN" or the "Partnership") today announced financial and operating results for the three-month period ended September 30, 2018.
Revenue totaled $4.8 billion, an increase of 55 percent, compared to $3.1 billion in the third quarter of 2017. The increase was the result of the average selling price of fuel being higher than last year and the benefit of the fuel distribution contract with 7-Eleven, Inc.
Total gross profit increased to $333 million, compared to $316 million in the third quarter of 2017, as a result of higher motor fuel gross profits and a one-time cash benefit of approximately $25 million related to a settlement with a fuel supplier.
Income from continuing operations was $114 million versus $121 million in the third quarter of 2017.
Loss from discontinued operations, net of income taxes, was $2 million versus income from discontinued operations, net of income taxes, of $17 million in the third quarter of 2017.
Net income was $112 million, or $1.12 per diluted unit, versus $138 million, or $1.08 per diluted unit, in the third quarter of 2017.
Adjusted EBITDA for the quarter totaled $208 million compared with $199 million in the third quarter of 2017. Adjusted EBITDA included $2 million of transaction-related expenses and the one-time cash benefit of approximately $25 million.
Distributable Cash Flow, as adjusted, was $149 million, compared to $132 million a year ago. This year-over-year increase reflects higher Adjusted EBITDA and lower cash interest expense offset by a higher current tax expense.
Total gallons sold were 2.0 billion, flat from a year ago. On a weighted-average basis, fuel margin for all gallons sold was 12.7 cents per gallon, or 11.4 cents per gallon excluding the one-time cash benefit of approximately $25 million this quarter.
SUN's segment results and other supplementary data are provided after the financial tables below.
Distribution
On October 26, 2018, the Board of Directors of SUN's general partner declared a distribution for the third quarter of 2018 of $0.8255 per unit, which corresponds to $3.3020 per unit on an annualized basis. The distribution will be paid on November 14, 2018 to common unitholders of record on November 6, 2018.
SUN's distribution coverage ratio for the third quarter was 1.73 times. The distribution coverage ratio on a trailing 12-month basis was 1.24 times.
Excluding the one-time cash benefit of approximately $25 million this quarter, SUN's distribution coverage ratio for the third quarter was 1.44 times.
Liquidity
At September 30, SUN had borrowings of $493 million against its revolving line of credit and other long-term debt of $2.3 billion. In the third quarter of 2018, SUN did not issue any common units through its at-the-market equity program. The leverage ratio of net debt to Adjusted EBITDA, calculated in accordance with SUN's credit facility, was 4.27 times at the end of the third quarter (2).
(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) | Excluding the one-time cash benefit of approximately $25 million this quarter, SUN's leverage ratio of net debt to Adjusted EBITDA, calculated in accordance with SUN's credit facility, was 4.44 times at the end of the third quarter. |
Earnings Conference Call
Sunoco LP management will hold a conference call on Thursday, November 8, at 9:30 a.m. CT (10:30 a.m. ET) to discuss third 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 10,000 convenience stores, independent dealers, commercial customers and distributors located in more than 30 states. SUN's general partner is owned by Energy Transfer Operating, L.P., a subsidiary of Energy Transfer LP (NYSE: ET).
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, Manager – Investor Relations, Growth and Strategy
(214) 840-5553, derek.rabe@sunoco.com
Media:
Alyson Gomez, Director – Communications
(214) 840-5641, alyson.gomez@sunoco.com
– Financial Schedules Follow –
SUNOCO LP | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(unaudited) | ||||||||
September 30, | December 31, | |||||||
(in millions, except units) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 15 | $ | 28 | ||||
Accounts receivable, net | 627 | 541 | ||||||
Receivables from affiliates | 134 | 155 | ||||||
Inventories, net | 469 | 426 | ||||||
Other current assets | 80 | 81 | ||||||
Assets held for sale | 6 | 3,313 | ||||||
Total current assets | 1,331 | 4,544 | ||||||
Property and equipment, net | 1,494 | 1,557 | ||||||
Other assets: | ||||||||
Goodwill | 1,534 | 1,430 | ||||||
Intangible assets, net | 655 | 768 | ||||||
Other noncurrent assets | 134 | 45 | ||||||
Total assets | $ | 5,148 | $ | 8,344 | ||||
Liabilities and equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 551 | $ | 559 | ||||
Accounts payable to affiliates | 160 | 206 | ||||||
Accrued expenses and other current liabilities | 370 | 368 | ||||||
Current maturities of long-term debt | 5 | 6 | ||||||
Liabilities associated with assets held for sale | — | 75 | ||||||
Total current liabilities | 1,086 | 1,214 | ||||||
Revolving line of credit | 493 | 765 | ||||||
Long-term debt, net | 2,281 | 3,519 | ||||||
Advances from affiliates | 85 | 85 | ||||||
Deferred tax liability | 118 | 389 | ||||||
Other noncurrent liabilities | 140 | 125 | ||||||
Total liabilities | 4,203 | 6,097 | ||||||
Commitments and contingencies (Note 14) | ||||||||
Equity: | ||||||||
Limited partners: | ||||||||
Series A Preferred unitholder - affiliated (no units issued and outstanding as of September 30, 2018 and 12,000,000 units issued and outstanding as of December 31, 2017) | — | 300 | ||||||
Common unitholders (82,513,643 units issued and outstanding as of September 30, 2018 and 99,667,999 units issued and outstanding as of December 31, 2017) | 945 | 1,947 | ||||||
Class C unitholders - held by subsidiary (16,410,780 units issued and outstanding as of September 30, 2018 and December 31, 2017) | — | — | ||||||
Total equity | 945 | 2,247 | ||||||
Total liabilities and equity | $ | 5,148 | $ | 8,344 | ||||
SUNOCO LP | |||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | |||||||||||||||
(unaudited) | |||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(in millions, except unit and per unit amounts) | |||||||||||||||
Revenues: | |||||||||||||||
Motor fuel sales | $ | 4,662 | $ | 2,849 | $ | 12,720 | $ | 8,152 | |||||||
Rental income | 35 | 22 | 91 | 66 | |||||||||||
Other | 64 | 193 | 306 | 546 | |||||||||||
Total revenues | 4,761 | 3,064 | 13,117 | 8,764 | |||||||||||
Cost of sales: | |||||||||||||||
Motor fuel cost of sales | 4,415 | 2,646 | 12,041 | 7,636 | |||||||||||
Other | 13 | 102 | 137 | 297 | |||||||||||
Total cost of sales | 4,428 | 2,748 | 12,178 | 7,933 | |||||||||||
Gross profit | 333 | 316 | 939 | 831 | |||||||||||
Operating expenses: | |||||||||||||||
General and administrative | 34 | 30 | 103 | 98 | |||||||||||
Other operating | 86 | 96 | 270 | 281 | |||||||||||
Rent | 20 | 20 | 54 | 62 | |||||||||||
Loss (gain) on disposal of assets and impairment charges | (8) | 8 | (3) | 102 | |||||||||||
Depreciation, amortization and accretion | 42 | 34 | 132 | 124 | |||||||||||
Total operating expenses | 174 | 188 | 556 | 667 | |||||||||||
Operating income | 159 | 128 | 383 | 164 | |||||||||||
Other expenses: | |||||||||||||||
Interest expense, net | 35 | 51 | 105 | 163 | |||||||||||
Loss on extinguishment of debt and other | — | — | 109 | — | |||||||||||
Income from continuing operations before income taxes | 124 | 77 | 169 | 1 | |||||||||||
Income tax expense (benefit) | 10 | (44) | 39 | (103) | |||||||||||
Income from continuing operations | 114 | 121 | 130 | 104 | |||||||||||
Income (loss) from discontinued operations, net of income taxes | (2) | 17 | (265) | (187) | |||||||||||
Net income (loss) and comprehensive income (loss) | $ | 112 | $ | 138 | $ | (135) | $ | (83) | |||||||
Net income (loss) per limited partner unit - basic: | |||||||||||||||
Continuing operations - common units | $ | 1.16 | $ | 0.92 | $ | 0.84 | $ | 0.22 | |||||||
Discontinued operations - common units | (0.03) | 0.17 | (3.12) | (1.90) | |||||||||||
Net income (loss) - common units | $ | 1.13 | $ | 1.09 | $ | (2.28) | $ | (1.68) | |||||||
Net income (loss) per limited partner unit - diluted: | |||||||||||||||
Continuing operations - common units | $ | 1.15 | $ | 0.91 | $ | 0.83 | $ | 0.22 | |||||||
Discontinued operations - common units | (0.03) | 0.17 | (3.12) | (1.90) | |||||||||||
Net income (loss) - common units | $ | 1.12 | $ | 1.08 | $ | (2.29) | $ | (1.68) | |||||||
Weighted average limited partner units outstanding: | |||||||||||||||
Common units - basic | 82,506,279 | 99,469,643 | 84,891,853 | 99,185,042 | |||||||||||
Common units - diluted | 83,084,713 | 100,117,016 | 85,373,976 | 99,581,626 | |||||||||||
Cash distributions per unit | $ | 0.8255 | $ | 0.8255 | $ | 2.4765 | $ | 2.4765 | |||||||
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.
Our financial statements reflect two reportable segments, fuel distribution & marketing and all other. After the Retail Divestment and the conversion of 207 retail sites to commission agent sites, the Partnership has renamed the former Wholesale segment to Fuel Distribution and Marketing and the former Retail segment is renamed to All Other.
Key operating metrics set forth below are presented as of and for the three months ended September 30, 2018 and 2017 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 September 30, | ||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||
Fuel | All Other | Total | Fuel | All Other | Total | |||||||||||||||||||
(dollars and gallons in millions, except gross profit per gallon) | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Motor fuel sales | $ | 4,450 | $ | 212 | $ | 4,662 | $ | 2,435 | $ | 414 | $ | 2,849 | ||||||||||||
Rental income | 32 | 3 | 35 | 19 | 3 | 22 | ||||||||||||||||||
Other | 12 | 52 | 64 | 13 | 180 | 193 | ||||||||||||||||||
Total revenues | $ | 4,494 | $ | 267 | $ | 4,761 | $ | 2,467 | $ | 597 | $ | 3,064 | ||||||||||||
Gross profit: | ||||||||||||||||||||||||
Motor fuel sales | $ | 222 | $ | 25 | $ | 247 | $ | 158 | $ | 45 | $ | 203 | ||||||||||||
Rental | 32 | 3 | 35 | 19 | 3 | 22 | ||||||||||||||||||
Other | 7 | 44 | 51 | 13 | 78 | 91 | ||||||||||||||||||
Total gross profit | $ | 261 | $ | 72 | $ | 333 | $ | 190 | $ | 126 | $ | 316 | ||||||||||||
Income from continuing operations | 89 | 25 | 114 | 69 | 52 | 121 | ||||||||||||||||||
Income (loss) from discontinued operations, net of taxes | — | (2) | (2) | — | 17 | 17 | ||||||||||||||||||
Net income and comprehensive income | $ | 89 | $ | 23 | $ | 112 | $ | 69 | $ | 69 | $ | 138 | ||||||||||||
Adjusted EBITDA (2) | $ | 183 | $ | 25 | $ | 208 | $ | 64 | $ | 135 | $ | 199 | ||||||||||||
Distributable Cash Flow, as adjusted (2) | $ | 149 | $ | 132 | ||||||||||||||||||||
Operating Data: | ||||||||||||||||||||||||
Motor fuel gallons sold (3) | 2,004 | 2,044 | ||||||||||||||||||||||
Motor fuel gross profit cents per gallon (1) (3) | 12.7 | ¢ | 14.9 | ¢ | ||||||||||||||||||||
The following table presents a reconciliation of Adjusted EBITDA to net income (loss) and Adjusted EBITDA to Distributable Cash Flow, as adjusted:
Three Months Ended September 30, | |||||||||||
2018 | 2017 | Change | |||||||||
(in millions) | |||||||||||
Segment Adjusted EBITDA | |||||||||||
Fuel distribution and marketing | $ | 183 | $ | 64 | $ | 119 | |||||
All other | 25 | 135 | (110) | ||||||||
Total | 208 | 199 | 9 | ||||||||
Depreciation, amortization and accretion (3) | (42) | (29) | (13) | ||||||||
Interest expense, net (3) | (35) | (64) | 29 | ||||||||
Non-cash compensation expense (3) | (4) | (9) | 5 | ||||||||
Gain (loss) on disposal of assets and impairment charges (3) | 8 | (34) | 42 | ||||||||
Unrealized loss on commodity derivatives (3) | — | 6 | (6) | ||||||||
Inventory fair value adjustments (3) | (7) | 55 | (62) | ||||||||
Other non-cash adjustments | (4) | — | (4) | ||||||||