Sunoco LP Announces Third Quarter 2021 Financial and
Operating Results
- 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
- Rearms full-year 2021 Adjusted EBITDA(1)(2) guidance of $725 to $765 million
- Completed the acquisition of eight rened product terminals from NuStar Energy L.P. and one rened 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) 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 $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.
Recent Accomplishments
Completed the acquisition of eight rened product terminals from NuStar Energy L.P. (NYSE: NS) for
approximately $250 million and the acquisition of a single rened 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 signicantly expand SUN's midstream business and
enhance its platform for fuel distribution growth.
Completed a private oering of $800 million 4.500% Senior Notes due 2030 on October 12, 2021. SUN used
the proceeds from the oering 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 1.68times and trailing twelve months coverage was 1.43times.
Liquidity and Leverage
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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 $1.2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 4.05times at the end of the third
quarter.
Capital Spending
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 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 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-
389-0877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
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 reect new
information or events.
The information contained in this press release is available on our website at
www.SunocoLP.com
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
Media:
Alexis Daniel, Manager Communications
(214) 981-0739,
alexis.daniel@sunoco.com
Financial Schedules Follow
SUNOCO LP
CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
(unaudited)
September 30,
2021
December 31,
2020
Assets
Current assets:
Cash and cash equivalents
$ 88
$ 97
Accounts receivable, net
540
295
Receivables from aliates
9
11
Inventories, net
493
382
Other current assets
126
62
Total current assets 1,256
847
3
Property and equipment 2,275
2,231
Accumulated depreciation (888)
(806)
Property and equipment, net
1,387
1,425
Other assets:
Finance lease right-of-use assets, net
9
3
Operating lease right-of-use assets, net
515
536
Goodwill
1,568
1,564
Intangible assets
894
894
Accumulated amortization
(349)
(306)
Intangible assets, net
545
588
Other noncurrent assets
172
168
Investment in unconsolidated aliate
133
136
Total assets
$ 5,585
$ 5,267
Liabilities and equity
Current liabilities:
Accounts payable
$ 611
$ 267
Accounts payable to aliates
63
79
Accrued expenses and other current liabilities
306
282
Operating lease current liabilities
19
19
Current maturities of long-term debt
6
6
Total current liabilities 1,005
653
Operating lease noncurrent liabilities 519
538
Revolving line of credit 250
Long-term debt, net 2,672
3,106
Advances from aliates 127
125
Deferred tax liability 108
104
Other noncurrent liabilities 104
109
Total liabilities 4,785
4,635
Commitments and contingencies
Equity:
Limited partners:
Common unitholders
 (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)
800
632
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
632
Total liabilities and equity
$ 5,585 $ 5,267
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SUNOCO LP
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(Dollars in millions, except per unit data)
(unaudited)
Three Months Ended September 30,
Nine Months Ended September 30,
2021
2020
2021
2020
Revenues:
Motor fuel sales
$ 4,666
$ 2,711
$ 12,321
$ 7,869
Non motor fuel sales
79
60
218
185
Lease income
34
34
103
103
Total revenues 4,779
2,805
12,642
8,157
Cost of sales and operating expenses:
Cost of sales
4,472
2,497
11,631
7,383
General and administrative
28
28
79
87
Other operating
70
68
192
219
Lease expense
15
16
44
46
(Gain) loss on disposal of assets
(4)
(1)
(12)
7
Depreciation, amortization and accretion
45
50
135
142
Total cost of sales and operating expenses 4,626
2,658
12,069
7,884
Operating income
153
147
573
273
Other income (expense):
Interest expense, net
(40)
(43)
(124)
(131)
Equity in earnings of unconsolidated aliate
1
1
3
3
Loss on extinguishment of debt
(7)
Income before income taxes 114
105
445
145
Income tax expense
10
5
21
16
Net income and comprehensive income
$ 104
$ 100
$ 424
$ 129
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