Sunoco LP SUN shares are trading higher after it reported second-quarter FY24 revenues of $6.17 billion, which exceeded the consensus of $5.82 billion.
The partnership sold over 2.2 billion gallons of fuel (+5% Y/Y), with the fuel margin for all gallons sold at 11.8 cents per gallon (vs 11.9 cents per gallon in the prior year quarter).
Adjusted distributable cash flow of $295 million was higher than $175 million a year ago.
Adjusted EBITDA increased to $320 million from $250 million a year ago. EPS of $3.85 surpassed the consensus of $1.30.
Total capital expenditures were $78 million, including $52 million for growth capital and $26 million for maintenance capital.
Distribution: On July 25, 2024, Sunoco declared a distribution of $0.8756 per unit, payable on August 19, to unitholders of record as of August 9.
As of June 30, 2024, the company had long-term debt of about $7.3 billion and approximately $1.4 billion in liquidity remaining on its $1.5 billion revolving credit facility.
Outlook: Sunoco reaffirmed FY24 guidance for adjusted EBITDA of $1.46 billion to $1.52 billion, excluding synergies and transaction-related expenses.
The company expects NuStar deal to realize expense synergies of $200 million (vs. at least $150 million prior) and financial synergies of $60 million.
In July, Sunoco and Energy Transfer LP ET formed a joint venture to merge their crude oil and produced water-gathering assets in the Permian Basin, effective July 1, 2024.
Investors can gain exposure to the stock via InfraCap MLP ETF AMZA and Global X MLP ETF MLPA.
Price Action: Sunoco shares are up 1.42% at $54.36 at the last check Wednesday.
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