Sunoco LP Shines in Q1 2025 with Strong Financials and Strategic Acquisitions
Sunoco LP has kicked off the year 2025 on a high note, delivering solid first-quarter results and making strategic moves to drive growth. The partnership's consolidated performance saw adjusted EBITDA of $458 million and distributable cash flow as adjusted of $310 million, beating expectations and setting a strong foundation for the rest of the year.
The company's balance sheet has also been fortified with a recent offering of $1 billion of 6.25% senior notes due 2033. This financing has extended its debt maturity profile, improved financial flexibility, and derisked the balance sheet, allowing Sunoco LP to execute on future growth plans and deliver on other capital allocation priorities.
Additionally, Sunoco LP has inked a definitive agreement to acquire TanQuid, Germany's largest independent storage operator, for approximately EUR 500 million. This strategic move is expected to close in the second half of 2025, subject to customary closing conditions and will be accretive to unitholders in the first year of ownership.
"We remain on track to achieve our full-year financial guidance," said Scott Grischow, Senior Vice President, Finance and Treasurer. "Our balance sheet and liquidity are strong, and we are well-positioned to continue our growth objectives."
The partnership has also seen a steady increase in distributions, with the first-quarter distribution of $0.8976 per common unit representing an increase of just over 1.25% compared to the previous quarter. This marks the second consecutive quarterly increase in Sunoco's distribution and is consistent with the company's capital allocation strategy.
Since 2022, SUN has increased distributions by approximately 9%, underscoring the partnership's commitment to returning capital to its unitholders. "With leverage at our long-term target and healthy distribution coverage, we have been able to reinvest capital back into our business through organic growth and acquisitions," added Grischow.
Sunoco LP's performance in Q1 2025 is a testament to the company's strategic vision and ability to execute on its growth plans. With strong financials, a solid balance sheet, and a pipeline of exciting projects, the partnership is well-positioned for continued success and growth in the year ahead.
