Sunoco Exceeds Q3 Estimates Thanks To Higher Fuel Sold

Sunoco LP SUN reported third-quarter FY23 revenues of $6.32 billion, which exceeded the consensus of $5.54 billion.

The partnership sold 2.1 billion gallons of fuel (+7% Y/Y), with the fuel margin for all gallons sold coming in at 13.0 cents per gallon (vs 13.9 cents per gallon in the prior year quarter).

Adjusted EBITDA declined to $257 million from $276 million a year ago.

EPS of $2.95 surpassed the consensus of $1.25.

Adjusted distributable cash flow of $181 million was lower than $196 million a year ago.

Total capital expenditures were $45 million in the third quarter, including $31 million for growth capital and $14 million for maintenance capital.

On Oct. 20, Sunoco declared a quarterly distribution of $0.8420 per unit payable on Nov. 20, 2023, to unitholders of record as of Oct. 30, 2023.

As of Sept. 30, 2023, Sunoco held $647 million of borrowings against its revolving credit facility and other long-term debt of $3.2 billion. 

The partnership had liquidity of around $847 million at quarter-end under its $1.5 billion revolving credit facility. 

Outlook: Sunoco now expects FY23 adjusted EBITDA to be above $935 million. 

SUN Price Action: Sunoco shares are trading up by 2.37% at $51.33 on the last check Wednesday. 

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