Sunoco LP Announces Third Quarter 2021 Financial and
- Reports strong third quarter results generating net income of $104 million, Adjusted EBITDA(1) of $198 million
and Distributable Cash Flow, as adjusted(1) of $146 million
- Rearms full-year 2021 Adjusted EBITDA(1)(2) guidance of $725 to $765 million
- Completed the acquisition of eight rened product terminals from NuStar Energy L.P. and one rened product
terminal from Cato, Incorporated
DALLAS, Nov. 3, 2021 /PRNewswire/ --Sunoco LP (NYSE: SUN) ("SUN" or the "Partnership") today reported
nancial and operating results for the three-month period ended September 30, 2021.
Financial and Operational Highlights
For the three months ended September 30, 2021, net income was $104 million versus net income of $100 million
in the third quarter of 2020.
Adjusted EBITDA(1) for the quarter was $198 million compared with $189 million in the third quarter of 2020. The
increase in Adjusted EBITDA(1) reects higher reported fuel volume and non motor fuel gross prot partially oset
by lower fuel margins and slightly higher operating expenses(3).
Distributable Cash Flow, as adjusted(1), for the quarter was $146 million, compared to $139 million a year ago.
The Partnership sold approximately 2 billion gallons of fuel in the third quarter of 2021. Fuel volumes sold during
the quarter represent a 6.4% increase from the third quarter of 2020 and a 6.6% decline from the third quarter of
2019. Fuel margin for all gallons sold was 11.3 cents per gallon for the quarter compared to 12.1 cents per gallon
a year ago.
Completed the acquisition of eight rened product terminals from NuStar Energy L.P. (NYSE: NS) for
approximately $250 million and the acquisition of a single rened product terminal from Cato, Incorporated.
The NuStar terminal acquisition closed on October 8, 2021 and the Cato terminal acquisition closed on
September 24, 2021. The transactions were funded with cash on hand and amounts available under SUN's
revolving credit facility. These accretive acquisitions signicantly expand SUN's midstream business and
enhance its platform for fuel distribution growth.
Completed a private oering of $800 million 4.500% Senior Notes due 2030 on October 12, 2021. SUN used
the proceeds from the oering to fund the redemption of its $800 million 5.500% Senior Notes due 2026.
Distribution and Coverage
On October 25, 2021, the Board of Directors of SUN's general partner declared a distribution for the third quarter
of 2021 of $0.8255 per unit, or $3.3020 per unit on an annualized basis. The distribution will be paid on
November 19, 2021 to common unitholders of record on November 5, 2021. SUN's current quarter cash coverage
was 1.68times and trailing twelve months coverage was 1.43times.
Liquidity and Leverage
At September 30, 2021, SUN had $250 million of borrowings against its revolving credit facility and other long-
term debt of $2.7 billion. The Partnership maintained ample liquidity of approximately $1.2billion 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 4.05times at the end of the third
SUN's total capital expenditures for the third quarter were $44 million, which included $34 million for growth
capital and $10 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 approximately $150 million.
2021 Business Outlook
Excluding any impact in 2021 from the recently closed 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,
and fuel margins of 11.0 to 12.0 cents per gallon. The Partnership expects lower operating expenses(3) of $425 to
$435 million verses prior guidance of $440 to $450 million.
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 eorts due to the inherent diculty 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 signicant.
(3) Operating expenses include general and administrative, other operating and lease expenses.
Earnings Conference Call
Sunoco LP management will hold a conference call on Wednesday, November 3, at 9:00 a.m. Central time (10:00
a.m. Eastern time) to discuss results and recent developments. To participate, dial 877-407-6184(toll free) or 201-
389-0877approximately 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
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 rened product transportation and terminalling assets. SUN's general
partner is owned by Energy Transfer LP (NYSE: ET).
This news release may include certain statements concerning expectations for the future that are forward-looking
statements as dened by federal law. Such forward-looking statements are subject to a variety of known and
unknown risks, uncertainties, and other factors that are dicult to predict and many of which are beyond
management's control. An extensive list of factors that can aect 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
instability 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 reect new
information or events.
The information contained in this press release is available on our website at
Scott Grischow, Vice President – Investor Relations and Treasury
James Heckler, Director – Investor Relations and Corporate Finance
Alexis Daniel, Manager – Communications
– Financial Schedules Follow –
CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
Cash and cash equivalents
Accounts receivable, net
Receivables from aliates
Other current assets
Total current assets 1,256
Property and equipment 2,275
Accumulated depreciation (888)
Property and equipment, net
Finance lease right-of-use assets, net
Operating lease right-of-use assets, net
Intangible assets, net
Other noncurrent assets
Investment in unconsolidated aliate
Liabilities and equity
Accounts payable to aliates
Accrued expenses and other current liabilities
Operating lease current liabilities
Current maturities of long-term debt
Total current liabilities 1,005
Operating lease noncurrent liabilities 519
Revolving line of credit 250
Long-term debt, net 2,672
Advances from aliates 127
Deferred tax liability 108
Other noncurrent liabilities 104
Total liabilities 4,785
Commitments and contingencies
(83,352,123 units issued and outstanding as of September 30, 2021 and
83,333,631 units issued and outstanding as of December 31, 2020)
Class C unitholders - held by subsidiaries
(16,410,780 units issued and outstanding as of September 30, 2021 and
December 31, 2020)
Total equity 800
Total liabilities and equity
$ 5,585 $ 5,267
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(Dollars in millions, except per unit data)
Three Months Ended September 30,
Nine Months Ended September 30,
Motor fuel sales
Non motor fuel sales
Total revenues 4,779
Cost of sales and operating expenses:
Cost of sales
General and administrative
(Gain) loss on disposal of assets
Depreciation, amortization and accretion
Total cost of sales and operating expenses 4,626
Other income (expense):
Interest expense, net
Equity in earnings of unconsolidated aliate
Loss on extinguishment of debt
Income before income taxes 114
Income tax expense
Net income and comprehensive income