Sunoco LP (SUN): Results of Operations and Financial Condition
Sunoco LP (SUN) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 News Release Sunoco LP and SunocoCorp LLC Report Strong Second Quarter 2026 Financial and Operating Results • Reports strong second quarter results, including net income of $283 million, Adjusted EBITDA (1) of $996 million, excluding one-time transaction-related expe
How this was made
The 30-second read
Why it matters
The key tradable items are the Q2 beat versus prior-year comparisons, the increase in full-year 2026 Adjusted EBITDA guidance to $3.5B-$3.7B, and the declared quarterly distribution of $1.0023 per unit payable Aug 19, 2026.
Market read
Traders can reprice SUN on the guidance raise and distribution growth signal, while monitoring leverage and segment margin/throughput details for sustainability.
What to watch
Leverage is still 3.7x net debt to Adjusted EBITDA per the credit-facility calculation, so traders may focus on whether the guidance raise is sustainable versus driven by temporary margin strength.
Sunoco LP and SunocoCorp LLC Report Strong Second Quarter 2026 Financial and Operating Results
Second-quarter net income, Adjusted EBITDA and Distributable Cash Flow, as adjusted, were all substantially higher than the second quarter of 2025, while the Partnership increased full-year 2026 Adjusted EBITDA guidance by $400 million to $3.5 billion to $3.7 billion.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $14,259 million | – | – |
| Cost of sales (excluding items shown separately below)GAAP | $12,795 million | – | – |
| Operating expensesGAAP | $381 million | – | – |
| General and administrativeGAAP | $159 million | – | – |
| Lease expenseGAAP | $56 million | – | – |
| (Gain) loss on disposal of assets and impairment chargesGAAP | $3 million | – | – |
| Depreciation, amortization and accretionGAAP | $282 million | – | – |
| Total cost of sales and operating expensesGAAP | $13,676 million | – | – |
| Operating incomeGAAP | $583 million | – | – |
| Interest expense, netGAAP | $(204) million | – | – |
| Equity in earnings of unconsolidated affiliatesGAAP | $47 million | – | – |
| Loss on extinguishment of debtGAAP | — | – | – |
| Other, netGAAP | $(64) million | – | – |
| Income before income taxesGAAP | $362 million | – | – |
| Income tax expenseGAAP | $79 million | – | – |
| Net incomeGAAP | $283 million | – | – |
| Net income attributable to common unitsGAAP | $205 million | – | – |
| Net income per common unit, basicGAAP | $0.94 | – | – |
| Net income per common unit, dilutedGAAP | $0.94 | – | – |
| Cash distribution per common unitother | $1.0023 | approximately 1.25% | over 10% |
| Adjusted EBITDAnon-GAAP | $982 million | – | – |
| Adjusted EBITDA excluding one-time transaction-related expensesnon-GAAP | $996 million | – | – |
| Distributable Cash Flow, as adjustednon-GAAP | $608 million | – | – |
| Fuel Distribution segment Adjusted EBITDAnon-GAAP | $504 million | – | – |
| Pipeline Systems segment Adjusted EBITDAnon-GAAP | $190 million | – | – |
| Terminals segment Adjusted EBITDAnon-GAAP | $113 million | – | – |
| Refinery segment Adjusted EBITDAnon-GAAP | $175 million | – | – |
| Six months ended June 30 revenueGAAP | $24,949 million | – | – |
| Six months ended June 30 operating incomeGAAP | $1,449 million | – | – |
| Six months ended June 30 net incomeGAAP | $927 million | – | – |
| Six months ended June 30 net income attributable to common unitsGAAP | $670 million | – | – |
| Six months ended June 30 net income per common unit, dilutedGAAP | $3.79 | – | – |
full year 2026 outlook
- NoteAdjusted EBITDA guidance of $3.5 billion to $3.7 billion
- NoteIncreases full year 2026 Adjusted EBITDA guidance by $400 million
Capital returns
- On July 27, 2026, SUN and SUNC declared a distribution for the second quarter of 2026 of $1.0023 per unit, or $4.0092 per unit on an annualized basis.
- The SUN and SUNC quarterly distributions will be paid on August 19, 2026, to holders of the representative securities of record on August 7, 2026.
- This is the seventh consecutive quarterly increase in SUN's distribution.
- SUN's capital allocation strategy includes a multi-year distribution growth rate of at least 5%.
What drove it
- The Fuel Distribution segment sold approximately 4.1 billion gallons of fuel in the second quarter of 2026, and fuel margin for all gallons sold was 17.1 cents per gallon.
- The Pipeline Systems segment averaged throughput volumes of approximately 1.3 million barrels per day in the second quarter of 2026.
- The Terminals segment averaged throughput volumes of approximately 1.1 million barrels per day in the second quarter of 2026.
- The Refinery segment averaged throughput volumes of approximately 57 thousand barrels per day in the second quarter of 2026.
- Adjusted EBITDA included $14 million of one-time transaction-related expenses in the second quarter of 2026.
Concerns
- Interest expense, net was $(204) million in the second quarter of 2026.
- Other, net was $(64) million in the second quarter of 2026.
- SUN had long-term debt of approximately $13.3 billion at June 30, 2026.
- The release states that a reconciliation of non-GAAP forward-looking information to corresponding GAAP measures cannot be provided without unreasonable efforts.
What to watch
- Execution against full-year 2026 Adjusted EBITDA guidance of $3.5 billion to $3.7 billion.
- Fuel Distribution fuel margins and fuel volumes.
- Pipeline Systems, Terminals and Refinery throughput volumes.
- Leverage ratio of net debt to Adjusted EBITDA.
- Capital expenditures, including growth capital and maintenance capital.
- Future quarterly distribution increases under the stated multi-year distribution growth strategy.
Balance sheet and cash flow
- Cash and cash equivalents were $773 million at June 30, 2026, compared to $891 million at December 31, 2025.
- Long-term debt, net was $13,308 million at June 30, 2026, compared to $13,372 million at December 31, 2025.
- SUN had approximately $2.3 billion of liquidity remaining on its revolving credit facility at June 30, 2026.
- SUN’s leverage ratio of net debt to Adjusted EBITDA was approximately 3.7 times at the end of the second quarter.
- Total assets were $29,926 million at June 30, 2026, compared to $28,362 million at December 31, 2025.
- Total capital expenditures in the second quarter of 2026 were $202 million, including $125 million of growth capital and $77 million of maintenance capital.
Analysis
Sunoco reported a strong second quarter, with revenue of $14,259 million versus $5,390 million in the second quarter of 2025 and operating income of $583 million versus $203 million. Net income was $283 million, compared with $86 million, while net income attributable to common units was $205 million, compared with $86 million. Diluted net income per common unit was $0.94 versus $0.33.
Non-GAAP cash earnings also advanced. Adjusted EBITDA was $982 million compared with $454 million, and Distributable Cash Flow, as adjusted, was $608 million compared with $300 million. Adjusted EBITDA included $14 million of one-time transaction-related expenses, while the headline reported Adjusted EBITDA of $996 million excluding those expenses. Fuel Distribution Adjusted EBITDA was $504 million versus $206 million, Pipeline Systems Adjusted EBITDA was $190 million versus $177 million, and Terminals Adjusted EBITDA was $113 million versus $71 million. Refinery Adjusted EBITDA was $175 million.
Operating data show substantial activity across the business. Fuel Distribution sold approximately 4.1 billion gallons and generated fuel margin of 17.1 cents per gallon. Pipeline Systems averaged throughput of approximately 1.3 million barrels per day, Terminals averaged approximately 1.1 million barrels per day, and Refinery averaged approximately 57 thousand barrels per day. The filing does not report segment revenue, so revenue mix by reporting segment cannot be assessed from the provided document.
Capital allocation included total second-quarter capital expenditures of $202 million, comprising $125 million of growth capital and $77 million of maintenance capital. SUN declared a $1.0023 per-unit second-quarter distribution, described as approximately 1.25% higher than the quarter ended March 31, 2026 and over 10% higher than the second quarter of 2025. The balance sheet reported $773 million of cash and cash equivalents, long-term debt, net of $13,308 million, approximately $2.3 billion of remaining revolver liquidity, and a leverage ratio of approximately 3.7 times.
Management increased full-year 2026 Adjusted EBITDA guidance by $400 million to $3.5 billion to $3.7 billion. The higher outlook follows strong reported second-quarter Adjusted EBITDA and broad segment-level EBITDA contributions. Important items for subsequent periods are delivery against the new Adjusted EBITDA range, fuel margins and volumes, infrastructure throughput, capital spending, and leverage.
Not in the filing
stated, not guessed- Segment revenue for Fuel Distribution
- Segment revenue for Pipeline Systems
- Segment revenue for Terminals
- Segment revenue for Refinery
- Quarter-over-quarter revenue comparison
- Quarter-over-quarter operating income comparison
- Quarter-over-quarter net income comparison
- Quarter-over-quarter Adjusted EBITDA comparison
- Gross margin
- Operating margin
- Free cash flow
- Operating cash flow
- Share repurchases
- Prior full-year guidance outlook for comparison
- Guidance for revenue
- Guidance for gross margin
- Guidance for operating expenses
- Guidance for tax rate
- Prior-year comparison for Refinery segment Adjusted EBITDA
- Prior-year fuel-volume comparison
- Prior-year fuel-margin comparison
- Prior-year Pipeline Systems throughput-volume comparison
- Prior-year Terminals throughput-volume comparison
- Prior-year Refinery throughput-volume comparison
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC 8-K Item 2.02 with an attached earnings release (Exhibit 99.1) covering Q2 2026 results and capital allocation updates for Sunoco LP.
Ticker impact
Sunoco LP reported Q2 2026 net income of $283M, Adjusted EBITDA of $982M, and raised full-year 2026 Adjusted EBITDA guidance by $400M to $3.5B-$3.7B.
Moderately positive bias for the next session and into the earnings follow-through, assuming no adverse commentary on margins or leverage.
The filing discloses both results and a specific full-year guidance raise, along with distributable cash flow and leverage metrics that traders typically reprice quickly.
Market effects
Reinforces strength in fuel distribution and midstream cash generation, which can marginally support sentiment toward energy infrastructure MLPs.
Limited direct regional read-through; operations are broadly North America and Europe.
Low global macro linkage beyond commodity-linked margin sensitivity mentioned implicitly via segment performance.
Counterpoint
Adjusted EBITDA includes one-time transaction-related expenses, and fuel margin and throughput assumptions can swing with commodity and demand conditions.
Key entities
- issuerSunoco LP
Partnership reporting Q2 2026 results, raising full-year 2026 Adjusted EBITDA guidance, and declaring a higher quarterly distribution.
- related entitySunocoCorp LLC
Consolidates Sunoco LP results and is referenced for distribution declaration and ownership structure.
