Sunoco Q2 Earnings Call Highlights

Sunoco raised its 2026 adjusted EBITDA guidance to $3.5 billion–$3.7 billion, $400 million above its initial range, after reporting second-quarter adjusted EBITDA of $996 million.

Second-quarter performance benefited from broad-based segment growth: pipeline and terminals EBITDA increased year over year, while refinery EBITDA surged to $175 million as throughput recovered from a planned turnaround.

Sunoco increased its quarterly distribution by 1.25% sequentially and more than 10% year over year, with 2.1-times distribution coverage, leverage of about 3.7 times and $2.3 billion of revolver availability.

Sunoco NYSE: SUN raised its 2026 adjusted EBITDA guidance after reporting second-quarter results supported by higher contributions across its fuel distribution, pipeline, terminals and refining businesses.

The partnership reported adjusted EBITDA of $996 million for the second quarter, excluding approximately $14 million of one-time transaction expenses.

It increased its full-year adjusted EBITDA outlook to a range of $3.5 billion to $3.7 billion, up $400 million from its original guidance range.

Senior Vice President of Finance Scott Grischow said second-quarter distributable cash flow as adjusted was $608 million.

Sunoco declared a quarterly distribution of just over $1 per common unit for both Sunoco LP common units and SunocoCorp shares on July 27, representing a 1.25% sequential increase and an increase of more than 10% from the second quarter of 2025.

Sunoco’s trailing 12-month distribution coverage ratio was 2.1 times, while leverage stood at approximately 3.7 times, below its long-term target.

The company ended the quarter with $2.3 billion available under its revolving credit facility.

It spent $125 million on growth capital and $77 million on maintenance capital during the quarter.

Fuel Distribution adjusted EBITDA totaled $516 million, excluding $12 million of transaction expenses, compared with $538 million in the prior quarter and $214 million in the year-earlier period, also excluding transaction expenses.

Chief Operating Officer Karl Fails noted that first-quarter results had included a 7-Eleven makeup payment and a $92 million one-time inventory-reduction benefit.

Fuel distribution volumes reached 4.1 billion gallons, rising 9% from the first quarter and 89% from a year earlier.

Reported margin was 17.1 cents per gallon, compared with 17.0 cents in the first quarter and 10.5 cents in the second quarter of 2025.

Fails said market volatility returned during the quarter, including sharp price increases followed by declines toward the end of the period.

He said Sunoco’s commercial teams have found opportunities to supply additional customers during uncertain market conditions.

Pipeline System adjusted EBITDA was $190 million, versus $179 million in the first quarter and $177 million a year earlier.

Throughput was 1.3 million barrels per day, up 4% sequentially and 9% year over year.

Terminals adjusted EBITDA was $115 million, excluding $2 million of transaction expenses, compared with $107 million in the prior quarter and $73 million a year earlier.

Throughput was 1.1 million barrels per day, up 5% sequentially and 52% from a year earlier, aided by a full quarter of contributions from the TanQuid acquisition.

Refinery adjusted EBITDA rose to $175 million from $43 million in the first quarter.

Throughput increased to 57,000 barrels per day from 22,000 barrels per day after a planned turnaround reduced first-quarter activity.

Refining m...