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Jun 30, 2024
Sunoco Q2 2024 Earnings Report
Reported record results driven by strategic acquisitions and divestitures.
Key Takeaways
Sunoco LP reported a record second quarter with net income of $501 million. The quarter was marked by the completion of the NuStar Energy L.P. acquisition and the divestiture of convenience stores to 7-Eleven, Inc. The company reaffirms its full-year Adjusted EBITDA guidance and is increasing synergy targets from the NuStar acquisition.
Net income for the second quarter reached a record $501 million.
Completed the acquisition of NuStar Energy L.P. and divestiture of convenience stores to 7-Eleven, Inc.
Reaffirmed full year 2024 Adjusted EBITDA guidance of $1.46 billion to $1.52 billion, excluding synergies and transaction-related expenses.
Increased NuStar commercial and expense synergies to $200 million and financial synergies to $60 million.
Forward Guidance
The Partnership expects Adjusted EBITDA of $1.46 billion to $1.52 billion for the full year 2024, excluding synergies and transaction-related expenses. Growth capital expenditures are expected to be greater than $300 million, and maintenance capital expenditures are expected to be approximately $120 million.
Positive Outlook
- Adjusted EBITDA(1)(3) of $1.46 billion to $1.52 billion, excluding synergies and transaction-related expenses(2).
- Approximately $50 million in synergies related to the acquisition of NuStar.
- Growth capital expenditures to be greater than $300 million
- Volumes increased primarily due to growth from investments and profit optimization strategies.
Challenges Ahead
- Approximately $100 million in transaction-related expenses.
- Maintenance capital expenditures to be approximately $120 million.
- a decrease of $15 million in expenses primarily due to the West Texas Sale in April 2024 and lower allocated overhead
- a decrease of $7 million in lease profit due to the West Texas Sale in April 2024.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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