SunocoCorp Q2 Earnings Call Highlights

Sunoco raised its 2026 adjusted EBITDA guidance by $400 million to $3.5 billion–$3.7 billion after delivering $996 million in second-quarter adjusted EBITDA, supported by acquisitions and portfolio strength.

All four operating segments improved year over year, with higher fuel volumes, pipeline and terminal throughput, and a sharp refinery recovery following a planned turnaround.

Distributable cash flow was $608 million, while distribution coverage stood at a strong 2.1x.

Management expects continued EBITDA growth and plans to exceed its target of at least $500 million in annual bolt-on acquisitions, while using strong cash flow for distributions, debt reduction and organic expansion.

SunocoCorp NYSE: SUNC reported second-quarter adjusted EBITDA of $996 million, excluding approximately $14 million of one-time transaction expenses, and raised its full-year 2026 adjusted EBITDA guidance by $400 million to a range of $3.5 billion to $3.7 billion.

Senior Vice President of Finance Scott Grischow said the higher outlook reflects portfolio strength and the value being realized from recent acquisitions.

Second-quarter distributable cash flow as adjusted was $608 million.

The company declared a distribution of just over $1 per common unit and share on July 27, representing a 1.25% sequential increase and an increase of more than 10% from the second quarter of 2025.

Sunoco reported a trailing 12-month distribution coverage ratio of 2.1x.

At quarter-end, it had $2.3 billion of availability under its revolving credit facility and leverage of approximately 3.7x, below its long-term target.

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

Chief Operating Officer Karl Fails said all four operating segments contributed to the quarter’s results.

Fuel Distribution: Adjusted EBITDA was $516 million, excluding $12 million in transaction expenses, compared with $538 million in the first quarter and $214 million in the prior-year period.

Fuel volumes totaled 4.1 billion gallons, up 9% sequentially and 89% year over year.

Reported margin was 17.1 cents per gallon, compared with 17 cents in the first quarter and 10.5 cents a year earlier.

Pipeline Systems: Adjusted EBITDA rose to $190 million from $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 reached $115 million, excluding $2 million in transaction expenses, compared with $107 million in the first quarter and $73 million a year earlier.

Throughput increased to 1.1 million barrels per day, supported by a full quarter of contributions from the TanQuid acquisition.

Refinery: Adjusted EBITDA was $175 million, compared with $43 million in the first quarter.

Throughput rose to 57,000 barrels per day from 22,000 barrels per day following a planned turnaround.

Fails said refining margin exceeded $40 per barrel while operating expenses were below $10 per barrel.

Fails said the Fuel Distribution segment benefited from the company’s larger and more diverse portfolio, gross-profit optimization efforts and growth investments.

He also cited commodity-price volatility and higher break-even margins as favorable conditions for the business.

President and Chief Executive Officer Joe Kim said the company expects to materially exceed its initial 2026 EBITDA guidance and deliver its eighth consecutive year of EBITDA growth.

He said Sunoco expects its Fuel Distribution business to perform in the second half at a level comparable to...