Sunoco LP Announces Second Quarter Financial and Operating Results
Conference Call Scheduled for 9:30 a.m. CT (10:30 a.m. ET) on Thursday, August 9
DALLAS, Aug. 8, 2018 /PRNewswire/ --
Generated second quarter Net Income of $68 million, Adjusted EBITDA(1) of $140 million and Distributable
Cash Flow(1), as adjusted, of $106 million
Net income and Adjusted EBITDA results include approximately $7 million of transaction costs
Current quarter cash coverage of 1.24 times and trailing twelve months coverage of 1.14 times with leverage
of 4.52 times at the end of the second quarter
Completed the acquisitions of the wholesale fuel distribution businesses of Sandford Oil in August and
Superior Plus Corporation in April
Both acquisitions are immediately accretive to Distributable Cash Flow, as adjusted
Amended and extended $1.5 billion revolving credit facility
Sunoco LP (NYSE: SUN) ("SUN" or the "Partnership") today announced nancial and operating results for the
three-month period ended June 30, 2018.
Revenue totaled $4.6 billion, an increase of 59 percent, compared to $2.9 billion in the second quarter of 2017.
The increase was the result of the average selling price of fuel being higher than last year and the benet of the
fuel distribution contract with 7-Eleven, Inc.
Total gross prot increased to $310 million, compared to $259 million in the second quarter of 2017, as a result
ofhigher motor fuel gross prots.
Income from continuing operations was $94 million versus a loss of $29 million in the second quarter of 2017. 
Loss from discontinued operations, net of income taxes, was $26 million versus a loss from discontinued
operations, net of income taxes, of $193 million in the second quarter of 2017.
Net income was $68 million, or $0.58 per diluted unit, versus a net loss of $222 million, or ($2.53) per diluted
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unit, in the second quarter of 2017.
Adjusted EBITDA for the quarter totaled $140 million, compared with $220 million in the second quarter of
2017.
Distributable Cash Flow, as adjusted, was $106 million, compared to $158 million a year ago. This year-over-
year decrease reects a lower EBITDA, oset by lower cash interest expense and a decrease in maintenance
capital spend.
Net income for the fuel distribution and marketing segment was $101 million compared to net income of $5
million a year ago. Adjusted EBITDA was $132 million, versus $93 million in the second quarter of last year.
Net loss for the all other segment was $33 million compared to a net loss of $227 million a year ago. Adjusted
EBITDA was $8 million, versus $127 million in the second quarter of last year.
Total gallons sold were 1,977 million, down from 2,024 million gallons a year ago. On a weighted-average basis,
fuel margin for all gallons sold was 9.9 cents per gallon, compared to 16.2 cents per gallon in the second quarter
of 2017. The 6.3 cent per gallon decrease was primarily attributable to the divestiture of the majority of
company-operated sites.
SUN's recent accomplishments include the following:
Completed the acquisition of the wholesale fuels business of Sandford Oil for approximately $66 million
plus working capital adjustments. The acquired business distributes approximately 115 million gallons of
fuel annually to exploration, drilling and oil eld services customers, primarily in Central and West Texas and
Oklahoma. The transaction closed on August 1, 2018.
Completed the previously announced acquisition of the wholesale fuels business and terminal assets from
Superior Plus Corporation for approximately $40 million plus working capital adjustments. The wholesale
fuels business sells approximately 200 million gallons of fuel annually through multiple channels, and the
acquired terminals have a combined 17 tanks with 429 thousand barrels of storage capacity. The
transaction closed on April 25, 2018.
Amended and extended the $1.5 billion revolving credit facility. The revolving credit facility size remains at
$1.5 billion, and includes an accordion feature that provides exibility to increase the facility up to $750
million, subject to additional lender commitments. The facility matures in July 2023. Outstanding borrowings
under the facility bear interest, at SUN's option, at either the base rate plus a margin ranging from 0.25% to
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1.25% or LIBOR plus a margin ranging from 1.25% to 2.25%.
SUN's segment results and other supplementary data are provided after the nancial tables below.
Distribution
On July 27, 2018, the Board of Directors of SUN's general partner declared a distribution for the second quarter
of 2018 of $0.8255 per unit, which corresponds to $3.3020 per unit on an annualized basis. The distribution will
be paid on August 15, 2018 to common unitholders of record on August 7, 2018.
SUN's distribution coverage ratio for the second quarter was 1.24 times. The distribution coverage ratio on a
trailing 12-month basis was 1.14 times.
Liquidity
At June 30, SUN had borrowings of $320 million against its revolving line of credit and other long-term debt of
$2.3 billion. In the second quarter of 2018, SUN did not issue any common units through its at-the-market
equity program. The leverage ratio of net debt to Adjusted EBITDA, calculated in accordance with SUN's credit
facility, was 4.52 times at the end of the second quarter. 
(1) Adjusted EBITDA and Distributable Cash Flow, as adjusted, are non-GAAP nancial measures of performance that have limitations and
should not be considered as a substitute for net income. Please refer to the discussion and tables under "Reconciliations of Non-GAAP
Measures" later in this news release for a discussion of our use of Adjusted EBITDA and Distributable Cash Flow, as adjusted, and a
reconciliation to net income.
Earnings Conference Call
Sunoco LP management will hold a conference call on Thursday, August 9, at 9:30 a.m. CT (10:30 a.m. ET) to
discuss second quarter results and recent developments. To participate, dial 877-407-6184 (toll free) or 201-
389-0877 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. An updated investor presentation has been posted to
Sunoco's website and is available in the Investor Relations section at www.SunocoLP.com under Events and
Presentations.
Sunoco LP (NYSE: SUN) is a master limited partnership that distributes motor fuel to approximately 9,900
convenience stores, independent dealers, commercial customers and distributors located in more than 30
states. SUN's general partner is owned by Energy Transfer Equity, L.P. (NYSE: ETE).
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Forward-Looking Statements
This press release may include certain statements concerning expectations for the future that are forward-
looking statements as dened by federal law. Such forward-looking statements are subject to a variety of
known and unknown risks, uncertainties, and other factors that are dicult to predict and many of which are
beyond management's control. An extensive list of factors that can aect future results are discussed in the
Partnership's Annual Report on Form 10-K and other documents led from time to time with the Securities and
Exchange Commission. The Partnership undertakes no obligation to update or revise any forward-looking
statement to reect new information or events.
The information contained in this press release is available on our website at www.SunocoLP.com
Qualied Notice
This release is intended to be a qualied 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 eectively 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
eective tax rate.
Contacts
Investors:
Scott Grischow, Senior Director – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Derek Rabe, CFA, Senior Analyst – Investor Relations and Finance
(214) 840-5553, derek.rabe@sunoco.com
Media:
Alyson Gomez, Director – Communications
(214) 840-5641, alyson.gomez@sunoco.com
– Financial Schedules Follow –
SUNOCO LP
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CONSOLIDATED BALANCE SHEETS
(unaudited)
June 30,
2018
December 31,
2017
(in millions, except units)
Assets
Current assets:
Cash and cash equivalents $ 19 $ 28
Accounts receivable, net 529 541
Receivables from aliates 163 155
Inventories, net 456 426
Other current assets 62 81
Assets held for sale 6 3,313
Total current assets 1,235 4,544
Property and equipment, net 1,520 1,557
Other assets:
Goodwill 1,469 1,430
Intangible assets, net 659 768
Other noncurrent assets 123 45
Total assets
$ 5,006 $ 8,344
Liabilities and equity
Current liabilities:
Accounts payable $ 439 $ 559
Accounts payable to aliates 167 206
Accrued expenses and other current liabilities 544 368
Current maturities of long-term debt 5 6
Liabilities associated with assets held for sale 75
Total current liabilities 1,155 1,214
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Revolving line of credit 320 765
Long-term debt, net 2,282 3,519
Advances from aliates 85 85
Deferred tax liability 112 389
Other noncurrent liabilities 136 125
Total liabilities 4,090 6,097
Commitments and contingencies (Note 14)
Equity:
Limited partners:
Series A Preferred unitholder - aliated (no units issued and outstanding as of June 30, 2018 and
12,000,000 units issued and outstanding as of December 31, 2017) 300
Common unitholders (82,498,849 units issued and outstanding as of June 30, 2018 and 99,667,999 units
issued and outstanding as of December 31, 2017) 916 1,947
Class C unitholders - held by subsidiary (16,410,780 units issued and outstanding as of June 30, 2018 and
December 31, 2017)
Total equity 916 2,247
Total liabilities and equity
$ 5,006 $ 8,344
SUNOCO LP
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(unaudited)
For the Three Months Ended
June 30,
For the Six Months Ended
June 30,
2018 2017 2018 2017
(in millions, except unit and per unit amounts)
Revenues:
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Motor fuel sales $ 4,507 $ 2,685 $ 8,058 $ 5,303
Rental income 34 22 56 44
Other 66 185 242 353
Total revenues 4,607 2,892 8,356 5,700
Cost of sales:
Motor fuel cost of sales 4,280 2,530 7,626 4,990
Other 17 103 124 195
Total cost of sales 4,297 2,633 7,750 5,185
Gross prot
310 259 606 515
Operating expenses:
General and administrative 34 36 69 68
Other operating 86 93 184 185
Rent 19 22 34 42
Loss on disposal of assets and impairment charges 2 92 5 94
Depreciation, amortization and accretion 41 36 90 90
Total operating expenses 182 279 382 479
Operating income (loss)
128 (20) 224 36
Other expenses:
Interest expense, net 36 54 70 112
Loss on extinguishment of debt and other 109
Income (loss) from continuing operations before income taxes 92 (74) 45 (76)
Income tax expense (benet) (2) (45) 29 (59)
Income (loss) from continuing operations 94 (29) 16 (17)
Loss from discontinued operations, net of income taxes (26) (193) (263) (204)
Net income (loss) and comprehensive income (loss) $ 68 $ (222) $ (247) $ (221)
Net income (loss) per limited partner unit - basic:
Continuing operations - common units $ 0.91 $ (0.58) $ (0.29) $ (0.70)
Discontinued operations - common units (0.32) (1.94) (3.05) (2.07)
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Net income (loss) - common units $ 0.59 $ (2.52) $ (3.34) $ (2.77)
Net income (loss) per limited partner unit - diluted:
Continuing operations - common units $ 0.90 $ (0.59) $ (0.29) $ (0.70)
Discontinued operations - common units (0.32) (1.94) (3.05) (2.07)
Net income (loss) - common units $ 0.58 $ (2.53) $ (3.34) $ (2.77)
Weighted average limited partner units outstanding:
Common units - basic 82,494,976 99,466,424 86,104,411 99,040,383
Common units - diluted 82,947,669 99,900,007 86,569,372 99,306,045
Cash distributions per unit
$ 0.8255 $ 0.8255 $ 1.6510 $ 1.6510
Key Operating Metrics
The following information is intended to provide investors with a reasonable basis for assessing our historical
operations but should not serve as the only criteria for predicting our future performance.
Our nancial statements reect two reportable segments, fuel distribution & marketing and all other. After the
Retail Divestment and the conversion of 207 retail sites to commission agent sites, the Partnership has
renamed the former Wholesale segment to Fuel Distribution and Marketing and the former Retail segment is
renamed to All Other.
Key operating metrics set forth below are presented as of and for the three months ended June 30, 2018 and
2017 and have been derived from our historical consolidated nancial statements.
The accompanying footnotes to the following two key operating metrics tables can be found immediately
preceding our capital spending discussion.
For the Three Months Ended June 30,
2018 2017
Fuel
Distribution
and Marketing All Other Total
Fuel
Distribution
and Marketing All Other Total
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(dollars and gallons in millions, except gross prot per gallon)
Revenues:
Motor fuel sales $ 4,304 $ 203 $ 4,507 $ 2,287 $ 398 $ 2,685
Rental income 31 3 34 19 3 22
Other 15 51 66 12 173 185
Total revenues $ 4,350 $ 257 $ 4,607 $ 2,318 $ 574 $ 2,892
Gross prot:
Motor fuel sales $ 204 $ 23 $ 227 $ 102 $ 53 $ 155
Rental 31 3 34 19 3 22
Other 18 31 49 8 74 82
Total gross prot $ 253 $ 57 $ 310 $ 129 $ 130 $ 259
Income (loss) from continuing
operations 101 (7) 94 5 (34) (29)
Loss from discontinued
operations, net of taxes (26) (26) (193) (193)
Net income (loss) and
comprehensive income (loss) $ 101 $ (33) $ 68 $ 5 $ (227) $ (222)
Adjusted EBITDA (2) $ 132 $ 8 $ 140 $ 93 $ 127 $ 220
Distributable Cash Flow, as
adjusted (2) $ 106 $ 158
Operating Data:
Motor fuel gallons sold (3) 1,977 2,024
Motor fuel gross prot cents
per gallon (1) (3) 9.9 ¢ 16.2 ¢
The following table presents a reconciliation of Adjusted EBITDA to net income (loss) and Adjusted EBITDA to
Distributable Cash Flow, as adjusted:
Three Months Ended June 30,
2018 2017 Change
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(in millions)
Segment Adjusted EBITDA
Fuel distribution and marketing $ 132 $ 93 $ 39
All other 8 127 (119)
Total 140 220 (80)
Depreciation, amortization and accretion (3) (41) (39) (2)
Interest expense, net (3) (36) (58) 22
Non-cash compensation expense (3) (3) (5) 2
Loss on disposal of assets and impairment charges (3) (40) (326) 286
Unrealized loss on commodity derivatives (3) (5) 5
Inventory fair value adjustments (3) 32 (32) 64
Other non-cash adjustments (3) (3)
Income (loss) before income tax (expense) benet (3)
49 (245) 294
Income tax benet (3) 19 23 (4)
Net income (loss) and comprehensive income (loss) $ 68 $ (222) $ 290
Adjusted EBITDA
140 220 (80)
Cash interest expense (3) 34 53 (19)
Current income tax expense (benet) (3) (5) 2 (7)
Transaction-related income taxes (4) 10 10
Maintenance capital expenditures (3) 2 7 (5)
Distributable Cash Flow
$ 99 $ 158 $ (59)
Transaction-related expenses (3) 7 8 (1)
Series A Preferred distribution (8) 8
Distributable Cash Flow, as adjusted $ 106 $ 158 $ (52)
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(1) Includes other non-cash adjustments and excludes the impact of inventory fair value adjustments consistent with the denition of
Adjusted EBITDA.
(2) Adjusted EBITDA is dened as earnings before net interest expense, income taxes, depreciation, amortization and accretion expense,
allocated non-cash compensation expense, unrealized gains and losses on commodity derivatives and inventory fair value adjustments, and
certain other operating expenses reected in net income that we do not believe are indicative of ongoing core operations, such as gain or loss
on disposal of assets and non-cash impairment charges. We dene Distributable Cash Flow, as adjusted, as Adjusted EBITDA less cash interest
expense, including the accrual of interest expense related to our long-term debt which is paid on a semi-annual basis, Series A Preferred
distribution, current income tax expense, maintenance capital expenditures and other non-cash adjustments.
We believe Adjusted EBITDA and Distributable Cash Flow, as adjusted, are useful to investors in evaluating our operating performance
because:
• Adjusted EBITDA is used as a performance measure under our revolving credit facility;
• securities analysts and other interested parties use such metrics as measures of nancial performance, ability to make distributions to
our unitholders and debt service capabilities;
• our management uses them for internal planning purposes, including aspects of our consolidated operating budget, and capital
expenditures; and
• Distributable Cash Flow, as adjusted, provides useful information to investors as it is a widely accepted nancial indicator used by
investors to compare partnership performance, and as it provides investors an enhanced perspective of the operating performance of our
assets and the cash our business is generating.
Adjusted EBITDA and Distributable Cash Flow, as adjusted, are not recognized terms under GAAP and do not purport to be alternatives to net
income (loss) as measures of operating performance or to cash ows from operating activities as a measure of liquidity. Adjusted EBITDA and
Distributable Cash Flow, as adjusted, have limitations as analytical tools, and one should not consider them in isolation or as substitutes for
analysis of our results as reported under GAAP. Some of these limitations include:
• they do not reect our total cash expenditures, or future requirements for capital expenditures or contractual commitments;
• they do not reect changes in, or cash requirements for, working capital;
• they do not reect interest expense or the cash requirements necessary to service interest or principal payments on our revolving credit
facility or term loan;
• although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be
replaced in the future, and Adjusted EBITDA does not reect cash requirements for such replacements; and
• as not all companies use identical calculations, our presentation of Adjusted EBITDA and Distributable Cash Flow, as adjusted, may not
be comparable to similarly titled measures of other companies.
(3)  Includes amounts from discontinued operations.
(4)  Transaction-related income taxes primarily related to the 7-Eleven Transaction.
Capital Spending
SUN's gross capital expenditures for the second quarter were $13 million, which included $11 million for growth
capital and $2 million for maintenance capital.
Excluding acquisitions, SUN expects to spend approximately $65 million on growth capital and approximately
$30 million on maintenance capital for the full year 2018.
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SOURCE Sunoco LP
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