Sunoco Lp Stock Earnings Reports

Sunoco LP reported a strong Q1 2026 driven by acquisitions and active inventory management. Reported adjusted EBITDA was $867 million (excluding ~$9 million of one-time transaction expenses) and included a onetime $102 million gain from an inventory reduction initiative tied to the Parkland acquisition and elevated commodity prices. Distributable cash flow (DCF) as adjusted was $535 million. Sunoco closed the Tankwood terminals acquisition (Germany/Poland) and completed the Parkland integration work with synergy delivery on track (targeting $125 million in-year and $250M+ run-rate synergies). The partnership raised the quarterly distribution to $0.9899 per common unit (a 6.25% increase consisting of a 5% step-up plus a 1.25% quarterly raise), targeting multiyear distribution growth of at least 5% and maintaining a 1.9x trailing 12-month coverage ratio. Leverage is about 4x with $2.2 billion available on the revolver. Segment highlights: Fuel distribution adj. EBITDA $538M (including ~$92M inventory benefit), distributed gallons up 15% sequentially (82% YoY); Pipeline Systems $179M (stable throughput ~1.3M bpd); Terminals $107M (benefitting from Tankwood); Refining $43M (completed planned Burnaby turnaround on time and budget; refinery throughput down during turnaround but margins strong). Sunoco reiterated confidence in delivering full-year EBITDA guidance even excluding the onetime inventory gain, continues to plan ~$500M+ of bolt-on M&A for 2026, and emphasized disciplined capital allocation (Q1 growth capex $106M, maintenance $93M), strong balance sheet flexibility, and focus on accretive growth while protecting distribution coverage.