Sunoco Q2 net income and EBITDA miss estimates
Overview
Sunoco Q2 net income declines yr/yr, missing analyst expectations, per LSEG data
Adjusted EBITDA for Q2 misses consensus, despite increase from last year, per LSEG data
Co increases quarterly distribution by 1.25%, aligning with capital allocation strategy
Outlook
Sunoco reaffirms 2025 Adjusted EBITDA guidance of $1.90 bln to $1.95 bln
Company on track for 5% distribution growth target for 2025
Result Drivers
FUEL DISTRIBUTION - Segment Adjusted EBITDA decreased due to lower profit per gallon and increased expenses related to Parkland acquisition
PIPELINE SYSTEMS - Adjusted EBITDA increased significantly due to the acquisition of NuStar and reduced operating costs
TERMINALS - Segment benefited from increased volumes and lower operating costs following the acquisition of NuStar
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Net Income | Miss | $86 mln | $176.10 mln (5 Analysts) |
Q2 Adjusted EBITDA | Miss | $464 mln | $464.90 mln (7 Analysts) |
Q2 Capex | $160 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the oil & gas refining and marketing peer group is "buy"
Wall Street's median 12-month price target for Sunoco LP is $65.00, about 17.7% above its August 5 closing price of $53.50
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago
Press Release:
