Sunoco LP Announces Second Quarter 2021 Financial and
Operating Results
- Reports strong second quarter results generating net income of $166 million, Adjusted EBITDA(1) of $201 million
and Distributable Cash Flow, as adjusted(1) of $145 million
- Rearms full-year 2021 Adjusted EBITDA(1)(2) guidance of $725 to $765 million
- Executed denitive agreements to acquire eight rened product terminals from NuStar Energy L.P. and one
rened product terminal from Cato, Incorporated
DALLAS, Aug. 3, 2021 /PRNewswire/ --Sunoco LP (NYSE: SUN) ("SUN" or the "Partnership") today reported nancial
and operating results for the three-month period ended June 30, 2021.
Financial and Operational Highlights
For the three months ended June 30, 2021, net income was $166 million versus net income of $157 million in the
second quarter of 2020. 
Adjusted EBITDA(1) for the quarter was $201 million compared with $182 million in the second quarter of 2020.
The increase in Adjusted EBITDA(1) reects higher reported fuel volume and non motor fuel gross prot partially
oset by lower fuel margins and slightly higher operating expenses(3).
Distributable Cash Flow, as adjusted(1), for the quarter was $145 million, compared to $122 million a year ago.
The Partnership sold 1.9 billion gallons of fuel in the second quarter of 2021. Fuel volumes sold during the
quarter represent a 28% increase from the second quarter of 2020 and a 6% decline from the second quarter of
2019. Fuel margin for all gallons sold was 11.3 cents per gallon for the quarter compared to 13.5 cents per gallon
a year ago.
Distribution and Coverage
On July 22, 2021, the Board of Directors of SUN's general partner declared a distribution for the second quarter of
2021 of $0.8255 per unit, or $3.3020 per unit on an annualized basis. The distribution will be paid on August 19,
2021 to common unitholders of record on August 6, 2021. SUN's current quarter cash coverage was 1.67times
and trailing twelve months coverage was 1.41times.
Liquidity and Leverage
At June 30, 2021, SUN had $361 million of borrowings against its revolving credit facility and other long-term debt
of $2.7 billion. The Partnership maintained ample liquidity of approximately $1.1billion at the end of the quarter
under its $1.5 billion revolving credit facility that matures in July 2023. SUN's leverage ratio of net debt to
Adjusted EBITDA(1), calculated in accordance with its credit facility, was 4.27times at the end of the second
quarter.
Capital Spending
SUN's total capital expenditures for the second quarter were $30 million, which included $23 million for growth
capital and $7 million for maintenance capital. For the full-year 2021, SUN continues to expect maintenance
capital expenditures of approximately $45 million and growth capital expenditures of $150 million.
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2021 Business Outlook
Excluding any impact in 2021 from the recently announced acquisitions, the Partnership continues to expect full-
year 2021 Adjusted EBITDA(1)(2) of $725 to $765 million. SUN expects 2021 fuel volumes of 7.25 to 7.75 billion
gallons, fuel margins of 11.0 to 12.0 cents per gallon, and operating expenses(3) of $440 to $450 million. 
Rened Products Terminal Acquisitions
On August 1, 2021, SUN executed a denitive agreement to acquire eight rened product terminals from NuStar
Energy L.P. for $250 million. The terminals have a combined storage capacity of approximately 14.8 million barrels
and are located along the East Coast and in the greater Chicago market.
Additionally, on July 30, 2021 SUN executed a denitive agreement to acquire a rened product terminal from
Cato, Incorporated for approximately $5.5 million. The terminal, located in Salisbury, Maryland, has storage
capacity of approximately 140 thousand barrels.
The Partnership expects both acquisitions to be accretive to unitholders in the rst year of ownership and to close
in the fourth quarter of 2021, subject to the satisfaction of customary closing conditions.
SUN's segment results and other supplementary data are provided after the nancial tables below.
(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.
(2) A reconciliation of non-GAAP forward looking information to corresponding GAAP measures cannot be provided without
unreasonable eorts due to the inherent diculty in quantifying certain amounts due to a variety of factors, including
the unpredictability of commodity price movements and future charges or reversals outside the normal course of
business which may be signicant.
(3) Operating expenses include general and administrative, other operating and lease expenses.
Earnings Conference Call
Sunoco LP management will hold a conference call on Tuesday, August 3, at 9:00 a.m. CT (10:00 a.m. ET) to discuss
results and recent developments. To participate, dial 877-407-6184(toll free) or 201-389-0877approximately 10
minutes before the scheduled start time 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 Webcasts and Presentations.
Sunoco LP (NYSE: SUN)is a master limited partnership with core operations that include the distribution of motor
fuel to approximately 10,000 convenience stores, independent dealers, commercial customers and distributors
located in more than 30 states as well as rened product transportation and terminalling assets. SUN's general
partner is owned by Energy Transfer LP (NYSE: ET).
Forward-Looking Statements
This news 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
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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. In addition to the risks and uncertainties previously disclosed, the Partnership has also been, or
may in the future be, impacted by new or heightened risks related to the COVID-19 pandemic and the recent
decline in commodity prices, and we cannot predict the length and ultimate impact of those risks. 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, Vice President – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
James Heckler, Director – Investor Relations and Corporate Finance
(214) 840-5415, james.heckler@sunoco.com
Derek Rabe, CFA, Manager – Investor Relations, Strategy and Growth
(214) 840-5553, derek.rabe@sunoco.com
Media:
Alexis Daniel, Manager – Communications
(214) 981-0739, alexis.daniel@sunoco.com
– Financial Schedules Follow –
SUNOCO LP
CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
(unaudited)
June 30,
2021
December 31,
2020
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Assets
Current assets:
Cash and cash equivalents
$ 87
$ 97
Accounts receivable, net
494
295
Receivables from aliates
8
11
Inventories, net
488
382
Other current assets
122
62
Total current assets 1,199
847
Property and equipment 2,262
2,231
Accumulated depreciation (862)
(806)
Property and equipment, net
1,400
1,425
Other assets:
Finance lease right-of-use assets, net
9
3
Operating lease right-of-use assets, net
521
536
Goodwill
1,564
1,564
Intangible assets
894
894
Accumulated amortization
(334)
(306)
Intangible assets, net
560
588
Other noncurrent assets
153
168
Investment in unconsolidated aliate
134
136
Total assets
$ 5,540
$ 5,267
Liabilities and equity
Current liabilities:
Accounts payable
$ 519
$ 267
Accounts payable to aliates
37
79
Accrued expenses and other current liabilities
283
282
Operating lease current liabilities
19
19
Current maturities of long-term debt
6
6
Total current liabilities 864
653
Operating lease noncurrent liabilities 525
538
Revolving line of credit 361
Long-term debt, net 2,673
3,106
Advances from aliates 129
125
Deferred tax liability 103 104
4
Other noncurrent liabilities 106
109
Total liabilities 4,761
4,635
Commitments and contingencies
Equity:
Limited partners:
Common unitholders
 (83,352,123 units issued and outstanding as of June 30, 2021 and
 83,333,631 units issued and outstanding as of December 31, 2020)
779
632
Class C unitholders - held by subsidiaries
 (16,410,780 units issued and outstanding as of June 30, 2021 and
 December 31, 2020)
Total equity 779
632
Total liabilities and equity
$ 5,540
$ 5,267
SUNOCO LP
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(Dollars in millions, except per unit data)
(unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2021
2020
2021
2020
Revenues:
Motor fuel sales
$ 4,292
$ 1,992
$ 7,655
$ 5,158
Non motor fuel sales
66
54
139
125
Lease income
34
34
69
69
Total revenues 4,392
2,080
7,863
5,352
Cost of sales and operating expenses:
Cost of sales
4,039
1,722
7,159
4,886
General and administrative
27
25
51
59
Other operating
61
56
122
151
Lease expense
14
16
29
30
(Gain) loss on disposal of assets
(8)
6
(8)
8
Depreciation, amortization and accretion
43
47
90
92
Total cost of sales and operating expenses 4,176
1,872
7,443
5,226
Operating income 216 208 420 126
5
Other income (expense):
Interest expense, net
(43)
(44)
(84)
(88)
Equity in earnings of unconsolidated aliate
1
1
2
2
Loss on extinguishment of debt
(7)
Income before income taxes 174
165
331
40
Income tax expense
8
8
11
11
Net income and comprehensive income
$ 166
$ 157
$ 320
$ 29
Net income (loss) per common unit:
Basic
$ 1.76
$ 1.65
$ 3.37
$ (0.12)
Diluted
$ 1.73
$ 1.64
$ 3.33
$ (0.12)
Weighted average common units outstanding:
Basic
83,350,567
83,030,286
83,346,719
83,022,027
Diluted
84,402,867
83,598,730
84,276,640
83,022,027
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.
The key operating metrics by segment and accompanying footnotes set forth below are presented for the three months ended June 30, 2021 and 2020 and
have been derived from our historical consolidated nancial statements.
Three Months Ended June 30,
2021
2020
Fuel
Distribution
and
Marketing
All Other
Total
Fuel
Distribution
and
Marketing
All Other
Total
(dollars and gallons in millions, except gross prot per gallon)
Revenues:
Motor fuel sales
$ 4,139
$ 153
$ 4,292
$ 1,930
$ 62
$ 1,992
16 50 66 20 34 54
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Non motor fuel sales
Lease income
32
2
34
29
5
34
Total revenues $ 4,187
$ 205
$ 4,392
$ 1,979
$ 101
$ 2,080
Gross prot (1):
Motor fuel sales
$ 265
$ 12
$ 277
$ 275
$ 19
$ 294
Non motor fuel sales
14
28
42
13
17
30
Lease
32
2
34
29
5
34
Total gross prot $ 311
$ 42
$ 353
$ 317
$ 41
$ 358
Net income (loss) and comprehensive income (loss) $ 166
$
$ 166
$ 161
$ (4)
$ 157
Adjusted EBITDA (2) $ 191
$ 10
$ 201
$ 160
$ 22
$ 182
Operating Data:
Total motor fuel gallons sold
1,933
1,515
Motor fuel gross prot cents per gallon (3)
11.3 ¢
13.5 ¢
The following table presents a reconciliation of Adjusted EBITDA to net income and Adjusted EBITDA to Distributable Cash Flow,
as adjusted, for the three months ended June 30, 2021 and 2020:
Three Months Ended June 30,
2021
2020
(in millions)
Adjusted EBITDA
Fuel distribution and marketing
$ 191
$ 160
All other
10
22
Total Adjusted EBITDA
201
182
Depreciation, amortization and accretion
(43)
(47)
Interest expense, net
(43)
(44)
Non-cash unit-based compensation expense
(3)
(3)
Gain (loss) on disposal of assets
8
(6)
Unrealized gain on commodity derivatives
2
Inventory adjustments
59
90
Equity in earnings of unconsolidated aliate
1
1
(2) (3)
7
Adjusted EBITDA related to unconsolidated aliate
Other non-cash adjustments
(6)
(5)
Income tax expense
(8)
(8)
Net income and comprehensive income
$ 166
$ 157
Adjusted EBITDA (2) $ 201
$ 182
Adjusted EBITDA related to unconsolidated aliate
(2)
(3)
Distributable cash ow from unconsolidated aliate
1
3
Cash interest expense
(39)
(42)
Current income tax expense
(9)
(14)
Maintenance capital expenditures
(7)
(4)
Distributable Cash Flow 145
122
Transaction-related expenses
Distributable Cash Flow, as adjusted (2)
$ 145
$ 122
Distributions to Partners:
Limited Partners $ 69
$ 69
General Partners 18
18
Total distributions to be paid to partners
$ 87
$ 87
Common Units outstanding - end of period 83.4
83.0
Distribution coverage ratio (4)
1.67x
1.41x
___________________________
(1) Excludes depreciation, amortization and accretion.
(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
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, 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
i di d b i hi f d i id i h d
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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 senior notes;
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.
Adjusted EBITDA reects amounts for the unconsolidated aliate based on the same recognition and measurement
methods used to record equity in earnings of unconsolidated aliate. Adjusted EBITDA related to unconsolidated aliate
excludes the same items with respect to the unconsolidated aliate as those excluded from the calculation of Adjusted
EBITDA, such as interest, taxes, depreciation, depletion, amortization and other non-cash items. Although these amounts
are excluded from Adjusted EBITDA related to unconsolidated aliate, such exclusion should not be understood to imply
that we have control over the operations and resulting revenues and expenses of such aliate. We do not control our
unconsolidated aliate; therefore, we do not control the earnings or cash ows of such aliate. The use of Adjusted
EBITDA or Adjusted EBITDA related to unconsolidated aliate as an analytical tool should be limited accordingly. Inventory
adjustments that are excluded from the calculation of Adjusted EBITDA represent changes in lower of cost or market
reserves on the Partnership's inventory. These amounts are unrealized valuation adjustments applied to fuel volumes
remaining in inventory at the end of the period.
(3) Excludes the impact of inventory adjustments consistent with the denition of Adjusted EBITDA.
(4) The distribution coverage ratio for a period is calculated as Distributable Cash Flow attributable to partners, as adjusted,
divided by distributions expected to be paid to partners of Sunoco LP in respect of such a period.
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SOURCE Sunoco LP
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