Sunoco Q3 Earnings: Revenue Drop, Stronger Cash Flow & More

Sunoco LP SUN shares are trading lower after it reported third-quarter revenues of $5.75 billion, which missed the consensus of $6.508 billion.

Adjusted distributable cash flow of $349 million was higher than $181 million a year ago. Adjusted EBITDA increased to $456 million from $257 million a year ago.

The Fuel Distribution segment sold around 2.1 billion gallons of fuel (+1% year over year), with the fuel margin for all gallons sold at 12.8 cents per gallon versus 12.5 cents per gallon in the prior year quarter.

Adjusted EBITDA for the Fuel Distribution segment increased to $253 million compared to $234 million in the prior year quarter. Loss per share of $0.26 missed the EPS consensus of $1.55.

Total capital expenditures were $93 million, including $67 million for growth capital and $26 million for maintenance capital.

Distribution: On October 28, Sunoco declared a distribution of $0.8756 per unit, payable on November 19, to unitholders of record as of November 8.

As of September 30, 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.

Investors can gain exposure to the stock via InfraCap MLP ETF AMZA and Alerian MLP ETF AMLP.

Price Action: Sunoco shares are down 2.37% at $52.00 premarket at the last check Wednesday.

Photo via Shutterstock

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