Key Highlights

  • Earnings of USD 2.07 per diluted unit missed the consensus estimate of USD 2.79, up from USD 0.64.
  • Revenue of USD 18.03 billion topped the consensus estimate of USD 13.92 billion, against USD 6.03 billion a year earlier.
  • Adjusted EBITDA reached USD 1.049 billion against USD 489 million, and adjusted distributable Cash Flow rose to USD 588 million.
  • The quarterly distribution of USD 1.0148 per unit rose 1.25% from the prior quarter and over 10% year over year.

Sunoco LP (TXSE:SUN) reported third quarter 2026 Net Income of USD 499 million, and USD 2.07 per diluted common unit after preferred and Class D allocations, compared with USD 137 million and USD 0.64 a year earlier. The per unit figure was below a consensus estimate of USD 2.79. Revenue was USD 18.03 billion, up from USD 6.03 billion and above a consensus estimate of USD 13.92 billion.

Adjusted EBITDA was USD 1.049 billion compared with USD 489 million, and USD 1.060 billion when one-time transaction-related expenses of USD 11 million are excluded. Distributable cash flow, as adjusted, was USD 588 million against USD 326 million. Operating Income climbed to USD 740 million from USD 252 million, and the Partnership attributed Volume and expense growth mainly to the Parkland acquisition.

Segment Results After the Parkland Acquisition

Fuel Distribution adjusted EBITDA was USD 523 million versus USD 232 million, on about 4.2 billion gallons sold at a fuel Margin of 16.8 cents per gallon. Terminals adjusted EBITDA rose to USD 122 million from USD 75 million, with throughput near 1.0 million barrels per day. Pipeline Systems adjusted EBITDA slipped to USD 166 million from USD 182 million, with throughput of about 1.3 million barrels per day. The Refinery segment contributed USD 238 million of adjusted EBITDA on throughput of about 57 thousand barrels per day.

Interest expense, net rose to USD 197 million from USD 131 million, and income tax expense was USD 106 million against USD 11 million. Preferred unitholders took USD 29 million of net income and the Class D unitholder USD 108 million, leaving USD 362 million attributable to common units. Nine month net income was USD 1.426 billion against USD 430 million.

Guidance Above Range and Distribution Increase

The partnership projects 2026 adjusted EBITDA above its guided range of USD 3.5 to 3.7 billion. It completed the Acquisition of Offen Petroleum on October 27, 2026, and said distributable cash flow per common unit grew about 25% while Leverage returned to target in less than a year after the Parkland deal.

The third quarter distribution of USD 1.0148 per unit, or USD 4.0592 annualized, is the eighth consecutive quarterly increase. It is payable November 19, 2026 to holders of record on November 6. Capital allocation includes a multi-year distribution growth rate of at least 5%. The partnership said forward looking non-GAAP figures cannot be reconciled without unreasonable effort given Commodity price movements and other charges.

Leverage, Liquidity and Distribution Against Prior Levels

Net Debt to adjusted EBITDA stood at about 3.5 times under the revolving Credit Facility at September 30, with about USD 2.3 billion of revolver liquidity. Long term debt, net was USD 13.156 billion against USD 13.372 billion at year end 2025, while cash fell to USD 760 million from USD 891 million.

Third quarter capital expenditures were USD 237 million, split between USD 121 million of growth and USD 116 million of maintenance capital. The USD 1.0148 distribution compares with USD 0.9202 a year earlier. Nine month revenue of USD 42.98 billion compares with USD 16.60 billion a year earlier.