Sunoco LP Smashes Records, Sets Sights on Continued Growth
Sunoco LP has capped off a record-breaking year with its strongest financial performance yet. The partnership's fourth-quarter earnings call revealed a slew of impressive highlights, solidifying its position as a leader in the fuel distribution and midstream industries.
Adjusted EBITDA for the quarter came in at $446 million, excluding approximately $7 million in one-time transaction expenses. This marks a significant increase from previous quarters, showcasing the company's ability to adapt and thrive in a rapidly changing market.
Scott Grischow, Senior Vice President of Finance, emphasized the partnership's commitment to growth during the call. "The integration of our Fuel Distribution business with a strong and stable pipeline and terminal network has increased our stability, strengthened our financial foundation, and enhanced our opportunities for growth," he stated.
This strategy appears to be paying off, as Sunoco LP reported adjusted EBITDA of $1.56 billion for the full year 2024 – a 62% increase compared to 2023. This impressive performance has put the partnership in a strong position to meet its 2025 adjusted EBITDA guidance range of $1.9 billion to $1.95 billion.
Sunoco LP's acquisition of NuStar in early May was a significant factor in this growth, allowing the company to revise its 2024 adjusted EBITDA guidance upwards and tap into new revenue streams. The partnership has since achieved an efficient integration process, demonstrating its ability to adapt and execute on its strategic plans.
One notable aspect of Sunoco LP's financial performance is its focus on maintaining a healthy balance sheet. At the end of 2024, the company had approximately $1.3 billion in liquidity remaining on its revolving credit facility and leverage at 4.1x – flat from the previous quarter. This strong financial foundation enables the partnership to continue investing in growth initiatives while prioritizing unitholder returns.
In fact, Sunoco LP recently declared an $0.8865 per unit distribution – a 1.25% increase over last quarter. The company is targeting a distribution growth of at least 5% this year and expects to announce future increases on a quarterly basis.
As the partnership looks to the future, it's clear that Sunoco LP has established itself as a leader in its industry. With a strong financial position, a commitment to growth, and a track record of delivering accretive results, the company is poised for continued success.
