Sunoco LP

Reported Q2 2026 adjusted EBITDA was $996 million, excluding approximately $14 million of one-time transaction expenses, and second-quarter distributable cash flow as adjusted was $608 million. The company did not state consolidated revenue or EPS on the call. Segment results included Fuel Distribution adjusted EBITDA of $516 million, Pipeline Systems $190 million, Terminals $115 million, and Refinery $175 million. Fuel Distribution margin was $0.171 per gallon versus $0.17 last quarter and $0.105 in Q2 2025; Fuel Distribution gallons were 4.1 billion, up 9% sequentially and 89% year over year. Pipeline throughput was 1.3 million barrels per day, up 4% sequentially and 9% year over year; Terminals throughput was 1.1 million barrels per day, up 5% sequentially and 52% year over year; Refinery throughput was 57,000 barrels per day versus 22,000 last quarter. Gross refining margin was over $40 per barrel with operating expenses under $10 per barrel. Full-year 2026 adjusted EBITDA guidance was raised to $3.5 billion-$3.7 billion from the original range, and management said it expects to materially exceed initial guidance. The quarterly distribution was just over $1 per common unit/share, up 1.25% sequentially and over 10% year over year. Leverage was about 3.7x, revolver availability was $2.3 billion, coverage was 2.1x, and the company spent $125 million on growth capex and $77 million on maintenance capex.

Joe Kim framed the quarter as proof that Sunoco can perform across different macro environments and said all four segments are running at a high level. He emphasized that the company expects to materially exceed its initial 2026 EBITDA guidance and deliver an eighth consecutive year of EBITDA growth, with 2026 also set to be its ninth year of DCF per common unit growth. His tone was confident and expansionary, highlighting the larger post-acquisition footprint, strong balance sheet, and what he called a modest annual $500 million bolt-on M&A bar that he expects the company to exceed.

Scott Grischow highlighted Q2 adjusted EBITDA of $996 million, excluding about $14 million of one-time transaction expenses, and DCF as adjusted of $608 million. He said the company raised full-year adjusted EBITDA guidance to $3.5 billion-$3.7 billion, cited a 2.1x trailing 12-month coverage ratio, about $2.3 billion of revolver availability, and leverage of approximately 3.7x, below the long-term target. He also noted the quarterly distribution increase of 1.25% and said the business remains on pace for a multiyear distribution growth rate of at least 5%, while capital spending in the quarter totaled $125 million of growth capex and $77 million of maintenance capex.

Analysts focused on the M&A pipeline, asking how the company is progressing against its bolt-on targets and whether more organic growth opportunities are emerging. Management said the $500 million annual bolt-on target is a “modest bar,” expects to exceed it in 2026, and sees opportunities across the U.S., Canada, the Caribbean, Europe, fuel distribution, and midstream. Questions also centered on Burnaby, refining margins, and whether elevated refining cash flow could support distributions; management said strong refining results create more DCF and could be used for higher distributions, balance sheet improvement, or additional growth projects. On fuel distribution, management said consumer demand has been surprisingly resilient and that margin trends are harder to forecast quarter to quarter, while on taxes it said cash tax expense stepped up in 2026 but should be lower in the back half than the first half.