Q2 2024 Sunoco LP Earnings Call Transcript
Key Points
- Sunoco LP (SUN) delivered a record second quarter adjusted EBITDA of $400 million, excluding one-time transaction expenses.
- The company completed the $7.3 billion acquisition of NuStar Energy, which is expected to generate significant synergies.
- Sunoco LP (SUN) formed a joint venture with Energy Transfer, expected to be immediately accretive to unitholders.
- The company reported strong volume growth in its fuel distribution segment, outpacing industry trends.
- Sunoco LP (SUN) maintained a strong liquidity position with approximately $1.4 billion remaining on its revolving credit facility.
- Sunoco LP (SUN) incurred approximately $80 million in one-time transaction expenses related to the NuStar acquisition.
- The divestiture of West Texas retail assets to 7-Eleven resulted in a reduction of reported cents per gallon (CPG) margins.
- The company expects some impacts in the third quarter from planned refinery turnarounds and revenue recognition delays.
- Transaction expenses are expected to total approximately $100 million in 2024, impacting overall expenses.
- There is potential for quarter-to-quarter variations due to transaction expenses, seasonality, and contract terms.
Greetings and welcome to the Sunoco LP's Second Quarter 2024 earnings call. (Operator Instructions) And as a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Scott Grischow, Senior Vice President, Finance and Treasurer. Thank you, Scott, you may begin.
Thank you, and good morning, everyone. On the call with me this morning are Joe Kim, Sunoco LP's President and Chief Executive Officer; Karl Fails, Chief Operating Officer; Dylan Bramhall, Chief Financial Officer; Austin Harkness, Chief Commercial Officer, and other members of the management team.
Today's call will contain forward-looking statements that include expectations and assumptions regarding the partnership's future operations and financial performance. Actual results could differ materially, and the partnership undertakes no obligation to update these statements based on subsequent events. So please refer to our earnings release as well as our filings with the SEC for a
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