Sunoco LP Announces 4Q and Full Year 2015 Financial and Operating Results


- Distribution increased 7.5 percent versus 3Q 2015, 33.6 percent versus 4Q 2014 levels
- A record 40 new Stripes stores opened in 2015, 10 currently under construction
- Completed dropdown acquisitions have significantly increased Partnership's EBITDA and distributable cash flow
- Final dropdown of the remaining wholesale fuel and retail marketing assets from ETP expected to close in March 2016
Conference Call Scheduled for 9:00 a.m. CT (10:00 a.m. ET) on Thursday, February 25

HOUSTON, Feb. 24, 2016 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("SUN" or the "Partnership") today announced financial and operating results for the three- and twelve-month periods ended December 31, 2015. 

Adjusted EBITDA (1) attributable to partners for the quarter totaled $112.2 million, compared with $65.5 million in the fourth quarter of 2014.  The favorable year-over-year comparison primarily reflects the acquisitions of 31.58 percent of Sunoco, LLC in April and Susser Holdings Corp. in July, both of which were acquired from SUN's affiliate, Energy Transfer Partners, L.P. (NYSE: ETP).  All fourth quarter 2014 and full year 2014 figures and comparisons represent as previously reported results for the fourth quarter and full year 2014 and do not reflect any retrospective adjustments for the Sunoco LLC and Susser Holdings acquisitions which were accounted for as transactions between entities under common control.

Distributable cash flow (1) attributable to partners, as adjusted, for the quarter was $90.1 million, compared to $51.1 million a year earlier, and distributable cash flow per common unit was $1.03

Revenue was $3.7 billion for the quarter, up 184.6 percent compared to $1.3 billion in the fourth quarter of 2014. The increase was the result of the contribution of merchandise and retail fuel sales from the Susser's Stripes® convenience store chain and the wholesale fuel distribution sales and rental income from SUN's interest in Sunoco, LLC on a consolidated basis, partly offset by the impact of a 37-cent per gallon decrease in the average selling price of fuel.

Total gross profit was $333.2 million for the quarter, compared to $93.2 million in the fourth quarter of 2014.  Key drivers of the increase were the contribution from the previously mentioned acquisitions, which resulted in higher-margin retail fuel gallons and merchandise being added to the overall sales mix.

Net income attributable to partners was $7.8 million for the quarter, or ($0.13) per diluted unit, versus $30.1 million, or $0.83 per diluted unit, in the fourth quarter of last year.

On a weighted-average basis, excluding non-controlling interest, fuel margin for all gallons sold in the fourth quarter increased to 15.1 cents per gallon, compared to 13.0 cents per gallon a year ago.  The margin increase was driven by the addition of higher-margin retail gallons sold at Stripes, which were partly offset by the wholesale gallons sold through Sunoco, LLC.

Adjusted EBITDA attributable to partners from the wholesale segment was $57.9 million in the fourth quarter.  Excluding the non-controlling interest, total wholesale gallons sold in the fourth quarter were 651.8 million, compared with 546.4 million in the fourth quarter of 2014, an increase of 19.3 percent.  This includes gallons sold to affiliate-operated convenience stores, consignment stores and third-party customers, including independent dealers, fuel distributors and commercial customers.

As a result of the Susser acquisition, which converted affiliate volumes to retail volumes, motor fuel gallons sold to affiliates decreased 72.5 percent from a year ago to 84.0 million gallons during the fourth quarter of 2015, excluding the non-controlling interest.  Affiliate customers for the quarter included Sunoco R&M retail fuel and convenience store sites operated by a subsidiary of ETP. All affiliate gallons are sold to Sunoco's retail fuel and convenience stores at a fixed margin of 4.0 cents per gallon.

Other third-party wholesale fuel volumes, excluding non-controlling interest, increased from a year ago by 135.1 percent to 567.7 million gallons related to the acquisition of 31.58 percent of Sunoco, LLC.  Gross profit on these gallons was 12.1 cents per gallon, compared to 17.6 cents per gallon a year earlier, driven by a change in customer mix related to the acquisition of the interest in Sunoco, LLC

Adjusted EBITDA attributable to partners related to the retail segment was $54.3 million in the fourth quarter.  Total retail gallons sold increased by 488.0 percent to 354.0 million gallons as a result of the acquisition of Susser. The Partnership earned 22.4 cents per gallon on these volumes, compared to 44.5 cents per gallon a year earlier.  The addition of lower-margin retail volumes at Stripes drove most of this decrease.

Merchandise sales increased by 918.8 percent to $400.4 million from a year ago and contributed $132.7 million of gross profit, reflecting the contribution from the Stripes stores.   

Retail gallons sold by Stripes locations during the fourth quarter totaled 291.4 million gallons.  Gross profit on these gallons was $52.0 million, or 17.9 cents per gallon.  Merchandise sales from these locations totaled $343.6 million and contributed $118.9 million of gross profit.  On a same-store sales basis, Stripes store merchandise sales decreased by 1.1 percent and fuel sales declined 4.9 percent, primarily reflecting lower year-over-year activity in oil patch markets in South and West Texas.  Excluding markets that are directly impacted by oil drilling activity declines, the Stripes business achieved a 4.0 percent increase in merchandise sales and a 0.6 percent decrease in fuel sales volumes on a same-store basis.  As of December 31, SUN operated 725 convenience stores and retail fuel outlets in Texas, New Mexico and Oklahoma primarily under its Stripes brand.

SUN also operates approximately 175 convenience stores and fuel outlets in Georgia, Tennessee, Virginia, Maryland and Hawaii, primarily under the MACS, Tigermarket and Aloha Island Mart brands. On a same store sale basis, these stores saw growth of 12.5 percent in merchandise sales and a 0.9 percent decline in fuel gallons for the quarter. 

SUN's other recent accomplishments include the following:

  • In November, SUN announced the dropdown of the remaining wholesale fuel and retail marketing assets from ETP for approximately $2.226 billion.  The transaction is expected to close in March 2016.  A significant portion of the consideration for the transaction will be provided by a $2.035 billion term loan due October 2019, which was fully underwritten by Credit Suisse, Bank of America Merrill Lynch, Compass Bank, Mizuho Bank and Toronto Dominion. The terms of the term loan will substantially mirror SUN's existing $1.5 billion revolving credit facility.
  • In conjunction with the dropdown, a group of private investors and Energy Transfer Equity, L.P. (NYSE: ETE) committed to purchase $750 million of SUN common units in an unregistered private placement at a gross price of $31.00 per unit, prior to adjustments.  The private placement closed and funded in December, with the exception of ETE's portion, which will fund at the closing of the dropdown transaction.  The proceeds of the private placement were used to repay borrowing under SUN's revolving credit facility and for general partnership purposes.
  • On December 16, a wholly owned subsidiary of SUN completed the acquisition of a wholesale fuel distribution business serving the Northeastern United States from Alta East Inc. for $57 million plus the value of inventory on hand at closing. 

SUN's segment results and other supplementary data are provided after the financial tables shown below.

FY 2015 Compared to FY 2014

Revenue for the full year 2015 totaled $16.9 billion, a 213.0 percent increase compared to full year 2014.  Gross profit for this period increased 752.8 percent year-over-year to $1.5 billion.

Total motor fuel volumes sold to affiliates, excluding the non-controlling interest, decreased by 70.6 percent to 346.4 million gallons as a result of the Susser acquisition, which converted affiliate volumes to retail volumes. Wholesale gallons sold to third parties, excluding the non-controlling interest, increased by 214.2 percent to 2.4 billion gallons. Retail gallons sold increased by 1,595.8 percent to 1.4 billion gallons.  On a weighted-average basis, fuel margin for all gallons sold, excluding the non-controlling interest, increased to 15.1 cents per gallon for the full year 2015, versus 7.0 cents per gallon in the full year 2014.

Net income attributable to partners for the full year 2015 totaled $87.2 million, a 53.8 percent increase compared to full year 2014. Adjusted EBITDA attributable to partners was $444.1 million, compared to $122.3 million for the 2014 period, and distributable cash flow, as adjusted was $272.2 million, versus $92.5 million for 2014.

Distribution Increase

On January 26, the Board of Directors of SUN's general partner declared a distribution for the fourth quarter of 2015 of $0.8013 per unit, which corresponds to $3.2052 per unit on an annualized basis.  This represents a 7.5 percent increase compared to the distribution for the third quarter of 2015 and a 33.6 percent increase compared with the fourth quarter of 2014. This is the Partnership's 11th consecutive quarterly increase. The distribution was paid on February 16 to unitholders of record on February 5.

SUN achieved a 1.04 times distribution coverage ratio for the fourth quarter. The coverage ratio was negatively impacted by the private placement completed in December.  SUN achieved a 1.37 times coverage ratio for the 12 months ended December 31, 2015.

Liquidity

At December 31, 2015, SUN had borrowings against its $1.5 billion revolving credit facility of $450.0 million and $22.5 million in standby letters of credit, leaving unused availability of $1,027.5 million.  Net debt to Adjusted EBITDA, pro forma for the 31.58 percent of Sunoco, LLC and Susser Holdings Corp. acquisitions, was 4.1 times at year-end.

 

Earnings Conference Call

Sunoco LP management will hold a conference call on Thursday, February 25, at 9:00 a.m. CT (10:00 a.m. ET) to discuss fourth quarter and full year results and recent developments.  To participate, dial 412-902-0003 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. 

About Sunoco LP

Sunoco LP (NYSE: SUN) is a master limited partnership that operates approximately 900 convenience stores and retail fuel sites and distributes motor fuel to convenience stores, independent dealers, commercial customers and distributors located in more than 30 states at approximately 6,800 sites, both directly and through our 31.58 percent interest in Sunoco, LLC, owned in partnership with Energy Transfer Partners, L.P. (NYSE: ETP). Our parent -- Energy Transfer Equity (NYSE: ETE) -- owns SUN's general partner and incentive distribution rights.  ETP owns a 36.4% limited partner interest. For more information, visit the Sunoco LP website at www.SunocoLP.com

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, Director of Investor Relations and Treasury
(361) 884-2463, scott.grischow@sunoco.com

Anne Pearson
Dennard-Lascar Associates
(210) 408-6321, apearson@dennardlascar.com

Media:

Jeff Shields, Communications Manager
(215) 977-6056, jpshields@sunocoinc.com

- Financial Schedules Follow –

 

Balance Sheets

Sunoco LP
Consolidated Balance Sheets
(unaudited)










December 31,

2014



December 31,

2015




(in thousands, except units)


Assets









Current assets:









  Cash and cash equivalents


$

125,426



$

61,783


  Advances from affiliates



396,376




234,509


  Accounts receivable, net



257,065




259,993


  Receivables from affiliates



4,941




8,074


  Inventories, net



440,294




416,504


  Other current assets



60,178




33,288


Total current assets



1,284,280




1,014,151


Property and equipment, net



2,081,126




2,397,266


Other assets:









  Goodwill



1,854,436




1,821,864


  Intangible assets, net



893,455




965,904


  Other noncurrent assets



35,568




48,398


Total assets


$

6,148,865



$

6,247,583


Liabilities and equity









Current liabilities:









  Accounts payable


$

383,496



$

401,231


  Accounts payable to affiliates



56,969




14,988


  Accrued expenses and other current liabilities



291,047




254,298


  Current maturities of long-term debt



13,772




5,084


Total current liabilities



745,284




675,601


Revolving line of credit



683,378




450,000


Long-term debt, net



408,826




1,502,531


Deferred tax liability



378,953




431,327


Other noncurrent liabilities



89,268




93,709


Total liabilities



2,305,709




3,153,168


Commitments and contingencies:









Partners' capital:









Limited partner interest:









    Common unitholders - public (20,036,329 units issued and outstanding as of December 31,     2014 and 49,588,960 units issued and outstanding as of December 31, 2015)



874,688




1,768,890


    Common unitholders - affiliated (4,062,848 units issued and outstanding as of December 31,     2014 and 37,776,746 units issued and outstanding as of December 31, 2015)



27,459




1,305,350


    Subordinated unitholders - affiliated (10,939,436 units issued and outstanding as of     December 31, 2014 and no units issued or outstanding as of December 31, 2015)







    Class A unitholders - held by subsidiary (no units issued or outstanding as of December 31,     2014 and 11,018,744 units issued and outstanding as of December 31, 2015)







Total partners' capital



902,147




3,074,240


Predecessor equity



2,946,653





Noncontrolling interest



(5,644)




20,175


Total equity



3,843,156




3,094,415


Total liabilities and equity


$

6,148,865



$

6,247,583


 

Statement of Operations and Comprehensive Income

Sunoco LP
Consolidated Statements of Operations and Comprehensive Income
(unaudited)










Predecessor



Successor




Year ended

December 31,

2013



January 1, 2014

through

August 31, 2014



September 1, 2014 through

December 31, 2014



Year ended

December 31,

2015




(dollars in thousands, except unit and per unit amounts)


Revenues:

















  Retail motor fuel sales


$



$


$

1,298,804



$

3,247,545


  Wholesale motor fuel sales to third parties



1,502,786




1,275,422


4,235,415




10,104,193


  Wholesale motor fuel sales to affiliates



2,974,122




2,200,394


772,338




1,832,606


  Merchandise sales







472,604




1,595,674


  Rental income



10,060




11,690


21,642




71,730


  Other



5,611




4,683


24,556




83,599


Total revenues



4,492,579




3,492,189


6,825,359




16,935,347


Cost of sales:















  Retail motor fuel cost of sales







1,159,974




2,916,569


  Wholesale motor fuel cost of sales



4,419,004




3,429,169


4,962,227




11,486,480


  Merchandise cost of sales







320,282




1,068,933


  Other



2,611




2,339


1,792




5,201


Total cost of sales



4,421,615




3,431,508


6,444,275




15,477,183


Gross profit



70,964




60,681


381,084




1,458,164


Operating expenses:















  General and administrative



16,814




17,075



46,280




166,689


  Other operating



3,187




4,964



225,905




677,207


  Rent



1,014




729



28,451




92,949


  Loss (gain) on disposal of assets and   impairment charge



324




(39)



(394)




2,050


  Depreciation, amortization and accretion



8,687




10,457



60,335




201,019


Total operating expenses



30,026




33,186



360,577




1,139,914


Income (loss) from operations



40,938




27,495



20,507




318,250


Interest expense, net



(3,471)




(4,767)



(10,935)




(87,575)


Income (loss) before income taxes



37,467




22,728



9,572




230,675


Income tax expense



(440)




(218)



(69,677)




(47,070)


Net income (loss) and comprehensive income (loss)



37,027




22,510



(60,105)




183,605


Less: Net income and comprehensive income attributable to noncontrolling interest








1,043




53,783


Less: Preacquisition income (loss) allocated to general partner








(95,381)




42,584


Net income and comprehensive income attributable to partners


$

37,027



$

22,510


$

34,233



$

87,238


Net income per limited partner unit:
















  Common - basic and diluted


$

1.69



$

1.02


$

0.85



$

1.11


  Subordinated - basic and diluted


$

1.69



$

1.02


$

0.85



$

1.40


















Weighted average limited partner units outstanding:
















  Common units - public (basic)



10,884,950




10,944,309



20,493,065




24,550,388


  Common units - public (diluted)



10,906,794




10,969,437



20,499,447




24,572,126


  Common units - affiliated (basic and   diluted)



79,308




79,308



79,308




15,703,525


  Subordinated units - affiliated (basic and   diluted)



10,939,436




10,939,436



10,939,436




10,010,333


















Cash distribution per unit


$

1.84



$

1.02


$

1.15



$

2.89


 

Key Operating Metrics

The following tables set forth key operating metrics as of and for the periods indicated and have been derived from our audited historical consolidated financial statements. For the year ended December 31, 2014, we have combined the Predecessor Period and the Successor Period and presented the unaudited financial data on a combined basis for comparative purposes. This combination does not comply with generally accepted accounting principles or the rules for unaudited pro forma presentation, but is presented because we believe it provides the most meaningful comparison of our financial results. The impact from "push down" accounting related to the ETP Merger resulted in a $4.1 million decrease in depreciation expense, offset by a $3.9 million increase in amortization expense.

The accompanying footnotes to the following four key operating metrics tables can be found immediately preceeding our pro forma results of operations table.

Key Operating Metrics


Year Ended December 31,



2013



2014



2015




Total



Wholesale (2)



Retail (2)



Total (1)



Wholesale



Retail



Total




(dollars and gallons in thousands, except motor fuel pricing and gross profit per gallon)

Revenues:





























  Retail motor fuel   sales


$


$



$

1,298,804



$

1,298,804


$



$

3,247,545



$

3,247,545



  Wholesale motor   fuel sales to third   parties



1,502,786



5,510,837







5,510,837



10,104,193







10,104,193



  Wholesale motor   fuel sales to   affiliates



2,974,122



2,972,732







2,972,732



1,832,606







1,832,606



  Merchandise   sales








472,604




472,604






1,595,674




1,595,674



  Rental income



10,060



26,459




6,873




33,332



51,599




20,131




71,730



  Other income



5,611



2,215




27,024




29,239



27,674




55,925




83,599



Total revenues


$

4,492,579


$

8,512,243



$

1,805,305



$

10,317,548


$

12,016,072



$

4,919,275



$

16,935,347



Gross profit:




























  Retail motor fuel


$


$



$

138,830



$

138,830


$



$

330,976



$

330,976



  Wholesale motor   fuel



57,904



92,173







92,173



450,319







450,319



  Merchandise








152,322




152,322






526,741




526,741



  Rental and other



13,060



34,002




24,438




58,440



74,339




75,789




150,128



Total gross profit


$

70,964


$

126,175



$

315,590



$

441,765


$

524,658



$

933,506



$

1,458,164



Net income attributable to limited partners (6)


$

37,027


$

85,850



$

(29,107)



$

56,743


$

38,440



$

48,798



$

87,238



Adjusted EBITDA attributable to partners (6,7)


$

51,884


$

136,646



$

114,418



$

251,064


$

192,099



$

251,990



$

444,089



Distributable cash flow attributable to partners, as adjusted (6,7)


$

47,678










$

98,658










$

272,232



Operating Data:




























Total motor fuel gallons sold:




























  Retail










441,377




441,377







1,414,326




1,414,326



  Wholesale (3)



517,775



2,180,320








2,180,320



5,131,417








5,131,417



  Wholesale   contract affiliated   (4)



1,053,259



1,122,664








1,122,664



1,096,807








1,096,807



Motor fuel gross profit cents per gallon (5):




























  Retail










35.2¢




35.2¢







23.9¢




23.9¢



  Wholesale (3)


5.1¢



10.6¢








10.6¢



9.4¢








9.4¢



  Wholesale   contract affiliated   (4)


3.0¢



3.3¢








3.3¢



4.0¢








4.0¢



Volume-weighted average for all gallons


3.7¢











11.3¢











11.3¢



Retail merchandise margin










32.2%











33.0%












The following table presents a reconciliation of net income to EBITDA, Adjusted EBITDA and distributable cash flow:









Year Ended December 31,





2013



2014



2015




Total



Wholesale (2)



Retail (2)



Total (1)


Wholesale



Retail



Total




(in thousands)



Net income (loss) and comprehensive income (loss)


$

37,027



$

(86,571)



$

48,976



$

(37,595)



$

134,333



$

49,272



$

183,605


  Depreciation,   amortization, and   accretion



8,687



34,971




35,821




70,792



67,780




133,239




201,019


  Interest expense,   net



3,471



7,362




8,340




15,702



54,296




33,279




87,575


  Income tax   expense



440



67,978




1,917




69,895



4,321




42,749




47,070


EBITDA



49,625



23,740




95,054




118,794



260,730




258,539




519,269


  Non-cash   compensation   expense



1,935



5,119




3,798




8,917



4,016




1,687




5,703


  Loss (gain) on   disposal of assets   & impairment   charge



324



(309)




(124)




(433)



1,440




610




2,050


  Unrealized (gains)   losses on   commodity   derivatives





(1,166)







(1,166)



1,848







1,848


  Inventory fair   value   adjustments (9)





176,710




16,733




193,443



77,849




6,981




84,830


Adjusted EBITDA



51,884



204,094




115,461




319,555



345,883




267,817




613,700


  Adjusted EBITDA   attributable to   noncontrolling   interest





67,448




1,043




68,491



153,783




15,827




169,610


Adjusted EBITDA attributable to partners



51,884



136,646




114,418




251,064



192,100




251,990




444,090


  Cash interest   expense (8)



3,090











12,029











76,213


  Income tax   expense (current)



302











3,275











(18,353


  Maintenance   capital   expenditures



814











5,196











34,559


  Preacquisition   earnings













138,076











85,556


Distributable cash flow attributable to partners


$

47,678










$

92,488










$

266,115


  Transaction-
  related expenses













6,170











6,118


Distributable cash flow attributable to partners, as adjusted


$

47,678










$

98,658










$

272,233


 

The following tables set forth key operating metrics as of and for the periods indicated and have been derived from our audited historical consolidated financial statements. For the three months ended December 31, 2014, the figures represent as previously reported results and do not reflect retrospective adjustments for the Sunoco LLC and Susser Holdings acquisitions which were accounted for as transactions between entities under common control.

Key Operating Metrics Continued


Three Months Ended December 31,





2014



2015





Total (10)



Wholesale



Retail



Total





(dollars and gallons in thousands, except motor fuel pricing and gross profit per gallon)



Revenues:


















  Retail motor fuel sales


$

168,000



$



$

709,050



$

709,050



  Wholesale motor fuel sales to third parties



500,215




2,082,452







2,082,452



  Wholesale motor fuel sales to affiliates



617,732




441,460







441,460



  Merchandise sales



39,277







400,367




400,367



  Rental income







17,273




256




17,529



  Other income



16,398




9,796




13,972




23,768



Total revenues


$

1,341,622



$

2,550,981



$

1,123,645



$

3,674,626



Gross profit:


















  Retail motor fuel


$

24,786



$



$

74,174



$

74,174



  Wholesale motor fuel



42,783




86,539







86,539



  Merchandise



10,213







132,665




132,665



  Rental and other



15,402




25,750




14,090




39,840



Total gross profit


$

93,184



$

112,289



$

220,929



$

333,218



Net income attributable to limited partners (6)


$

30,111



$

418



$

7,337



$

7,755



Adjusted EBITDA attributable to partners (6,7,11)


$

65,486



$

57,924



$

54,252



$

112,176



Distributable cash flow attributable to partners, as adjusted (6,7)


$

51,114











$

90,109



Operating Data:


















Total motor fuel gallons sold:


















  Retail



60,247








354,028




354,028



  Wholesale (3)



241,516




1,241,019








1,241,019



  Wholesale contract affiliated (4)



304,872




266,006








266,006



Motor fuel gross profit cents per gallon (5):


















Retail


44.5¢








22.4¢




22.4¢



Wholesale (3)


17.6¢




9.8¢








9.8¢



Wholesale contract affiliated (4)


3.0¢




4.0¢








4.0¢



Volume-weighted average for all gallons


13.0¢












11.4¢



Retail merchandise margin



26.0%








33.1%












The following table presents a reconciliation of net income to EBITDA, Adjusted EBITDA and distributable cash flow:








Three Months Ended December 31,





2014



2015





Total (10)



Wholesale



Retail



Total





(in thousands)



Net income (loss) and comprehensive income (loss)


$

30,893



$

3,142



$

8,608



$

11,750



  Depreciation, amortization, and accretion



12,502




20,017




36,875




56,892



  Interest expense, net



6,636




23,073




6,810




29,883



  Income tax expense



2,114




3,349




65




3,414



EBITDA



52,145




49,581




52,358




101,939



  Non-cash compensation expense



778




1,654




520




2,714



  Loss (gain) on disposal of assets &   impairment charge



2,670




371




148




519



  Unrealized (gains) losses on commodity   derivatives



(1,226)




(1,078)







(1,078)



  Inventory fair value adjustments (9)



11,119




45,344




5,205




50,549



Adjusted EBITDA



65,486




95,872




58,231




154,103



  Adjusted EBITDA attributable to   noncontrolling interest






37,948




3,979




41,927



Adjusted EBITDA attributable to partners



65,486




57,924




54,252




112,176



  Cash interest expense (8)



6,255












26,577



  Income tax expense (current)



3,003












(18,763)



  Maintenance capital expenditures



4,332












15,929



  Preacquisition earnings (11)



782














Distributable cash flow attributable to partners


$

51,114











$

88,433



  Transaction-related expenses














1,676



Distributable cash flow attributable to partners, as adjusted


$

51,114











$

90,109



Pro Forma Results of Operations

We have provided below certain supplemental pro forma information for the year ended December 31, 2015. The pro forma information gives effect to the 68.42% noncontrolling interest in Sunoco LLC. Pursuant to our 31.58% membership interest in Sunoco LLC, the Partnership's pro forma information reflects only that equity interest in Sunoco LLC and excludes the 68.42% noncontrolling interest in Sunoco LLC.

Management believes the pro forma presentation is useful to investors because it provides investors comparable operating data to support our Adjusted EBITDA and distributable cash flow attributable to partners.

Pro Forma Results of Operations


Three Months ended

December 31, 2015



Year ended

December 31, 2015




Pro Forma




(unaudited)




(in thousands except gross profit per gallon)


Gross profit:









  Retail gross profit


$

74,174



$

330,976


  Wholesale gross profit



52,332




255,181


Total fuel gross profit


$

126,506



$

586,157


Operating Data:









Motor fuel gallons sold:









  Retail



354,028




1,414,326


  Wholesale



567,746




2,356,325


  Wholesale contract affiliated



84,005




346,372


Total fuel gallons



1,005,779




4,117,023


Motor fuel gross profit cents per gallon (1):









  Retail


22.4¢



23.9¢


  Wholesale


12.1¢



11.5¢


  Wholesale contract affiliated


4.0¢



4.0¢


Volume-weighted average for all gallons


15.1¢



15.1¢


 

Capital Spending

SUN's gross capital expenditures, excluding the non-controlling interest, for the fourth quarter were $107.2 million, which included $91.3 million for growth capital and $15.9 million for maintenance capital.  For the full year, SUN invested $232.7 million in growth capital and $34.6 million for maintenance capital. $56.9 million of growth capital was invested in new-to-industry Stripes stores opened between August 1 and December 31, 2015.

We currently expect capital spending for the full year 2016, excluding acquisitions, to be within the following ranges ($ in millions): 

                                                             

Capital Spending

Growth

Maintenance





Low

High

Low

High





$390

$420

$100

$110

 

Growth capital spending includes the construction of 35 to 40 new-to-industry sites that SUN anticipates building in 2016.

 

To view the original version on PR Newswire, visit:https://www.prnewswire.com/news-releases/sunoco-lp-announces-4q-and-full-year-2015-financial-and-operating-results-300225973.html

SOURCE Sunoco LP

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