1. SUN reported Q2 net income of $86 million, down from $501 million. 2. Adjusted EBITDA increased to $454 million, reflecting improved operational efficiency. 3. Quarterly distribution raised by 1.25%, reaffirming commitment to growth. 4. Pipeline segment EBITDA surged, contrary to declines in fuel distribution. 5. Parkland acquisition approved; closing anticipated in Q4 2025.
The increase in Adjusted EBITDA and distribution indicates strong operational performance and commitment to return capital. Historical trends suggest that consistent distribution increases positively influence MLP valuations.
The financial improvements and positive guidance indicate potentially higher future cash flows and distributions, affecting investor confidence and market valuation.
The projected growth in distribution and ongoing merger with Parkland may enhance operational capabilities over time, aligning with SUN's long-term strategy.
("SUN" or the "Partnership") today reported financial and operating results for the quarter ended June 30, 2025.
Net income for the second quarter of 2025 was $86 million compared to $501 million in the second quarter of 2024.
Adjusted EBITDA(1) for the second quarter of 2025 was $454 million compared to $320 million in the second quarter of 2024. Adjusted EBITDA(1) for the second quarter of 2025 and 2024 included $10 million and $80 million, respectively, of one-time transaction-related expenses(2).
Distributable Cash Flow, as adjusted(1), for the second quarter of 2025 was $300 million compared to $295 million in the second quarter of 2024.
Adjusted EBITDA(1) for the Fuel Distribution segment for the second quarter of 2025 was $206 million compared to $245 million in the second quarter of 2024. Adjusted EBITDA(1) for the second quarter of 2025 and 2024 included $8 million and $1 million, respectively, of one-time transaction-related expenses(2). The segment sold approximately 2.2 billion gallons of fuel in the second quarter of 2025. Fuel margin for all gallons sold was 10.5 cents per gallon for the second quarter of 2025.
Adjusted EBITDA(1) for the Pipeline Systems segment for the second quarter of 2025 was $177 million compared to $53 million in the second quarter of 2024. Adjusted EBITDA(1) for the second quarter of 2024 included $58 million of one-time transaction-related expenses(2). The segment averaged throughput volumes of approximately 1.2 million barrels per day in the second quarter of 2025.
Adjusted EBITDA(1) for the Terminals segment for the second quarter of 2025 was $71 million compared to $22 million in the second quarter of 2024. Adjusted EBITDA(1) for the second quarter of 2025 and 2024 included $2 million and $21 million, respectively, of one-time transaction-related expenses(2). The segment averaged throughput volumes of approximately 692 thousand barrels per day in the second quarter of 2025.
On July 24, 2025, the Board of Directors of SUN's general partner declared a distribution for the second quarter of 2025 of $0.9088 per unit, or $3.6352 per unit on an annualized basis. This represents an increase of approximately 1.25%, or $0.0112 per unit, as compared with the quarter ended March 31, 2025.
This is the third consecutive quarterly increase in SUN's distribution and is consistent with SUN's capital allocation strategy and 2025 business outlook, which includes an annual distribution growth rate of at least 5%. Since 2022, SUN has increased distributions by approximately 10%, underscoring the Partnership's ongoing commitment to returning capital to its unitholders.
The quarterly distribution will be paid on August 19, 2025, to common unitholders of record as of the close of business on August 8, 2025.
At June 30, 2025, SUN had long-term debt of approximately $7.8 billion and approximately $1.2 billion of liquidity remaining on its $1.5 billion revolving credit facility. SUN's leverage ratio of net debt to Adjusted EBITDA(1), calculated in accordance with its revolving credit facility, was 4.2 times at the end of the second quarter.
SUN's total capital expenditures in the second quarter of 2025 were $160 million, which included $120 million of growth capital and $40 million of maintenance capital. This includes the Partnership's proportionate share of capital expenditures related to its joint ventures with Energy Transfer of $15 million for growth capital and $2 million for maintenance capital.
On June 24, 2025, Parkland shareholders voted to approve the merger with SUN with over 93% of votes cast in favor of the transaction. The merger is subject to customary regulatory and stock exchange listing approvals. The transaction remains on schedule and is expected to close in the fourth quarter of 2025.
SUN's segment results and other supplementary data are provided after the financial tables below.
Sunoco LP management will hold a conference call on Wednesday, August 6, 2025, at 9:00 a.m. Central Time (10:00 a.m. Eastern Time) to discuss results and recent developments. To participate, dial 877-407-6184 (toll free) or 201-389-0877 approximately 10 minutes before the scheduled start time and ask for the Sunoco LP conference call. The call will also be accessible live and for later replay via webcast in the Investor Relations section of Sunoco's website at www.sunocolp.com under Webcasts and Presentations.
Sunoco LP (NYSE: SUN) is a leading energy infrastructure and fuel distribution master limited partnership operating in over 40 U.S. states, Puerto Rico, Europe, and Mexico. The Partnership's midstream operations include an extensive network of approximately 14,000 miles of pipeline and over 100 terminals. This critical infrastructure complements the Partnership's fuel distribution operations, which serve approximately 7,400 Sunoco and partner branded locations and additional independent dealers and commercial customers. SUN's general partner is owned by Energy Transfer LP (NYSE: ET).
This news release may include certain statements concerning expectations for the future that are forward-looking statements as defined by federal law. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management's control. An extensive list of factors that can affect future results, including future distribution levels, are discussed in the Partnership's Annual Report on Form 10-K and other documents filed from time to time with the Securities and Exchange Commission. The Partnership undertakes no obligation to update or revise any forward-looking statement to reflect new information or events.
The information contained in this press release is available on our website at www.sunocolp.com.