Sunoco LP SEC 10-Q Report

Sunoco LP, a leading distributor of motor fuels and operator of convenience stores, has released its Form 10-Q report for the second quarter of 2025. The report provides a comprehensive overview of the company's financial performance and operational activities, reflecting both challenges and strategic initiatives undertaken during the period.

Financial Highlights

Total Revenues: Sunoco LP reported total revenues of $5,390 million for the three months ended June 30, 2025, a decrease from $6,174 million in the same period in 2024. This decline was primarily due to lower sales revenue.

Gross Profit: The company achieved a gross profit of $416 million for the three months ended June 30, 2025, compared to $488 million in the same period in 2024. The decrease was driven by lower segment profits.

Operating Income: Operating income rose to $203 million for the three months ended June 30, 2025, up from $150 million in the same period in 2024. This increase was attributed to higher Adjusted EBITDA despite increased depreciation and amortization.

Net Income: Net income for the three months ended June 30, 2025, was $86 million, down from $501 million in the same period in 2024. The significant decrease was largely due to the absence of a $598 million gain from the West Texas Sale recorded in 2024.

Net Income Attributable to Partners: Net income attributable to partners was $86 million for the three months ended June 30, 2025, compared to $493 million in the same period in 2024.

Basic Net Income Per Common Unit: Basic net income per common unit was $0.33 for the three months ended June 30, 2025, compared to $3.88 in the same period in 2024, reflecting the decrease in net income.

Diluted Net Income Per Common Unit: Diluted net income per common unit was $0.33 for the three months ended June 30, 2025, compared to $3.85 in the same period in 2024.

Business Highlights

Revenue Segments: The Fuel Distribution segment reported a decrease in segment profit due to lower profit per gallon and a decrease in gallons sold, primarily attributed to the West Texas Sale. Conversely, the Pipeline Systems segment saw an increase in segment profit due to the acquisition of NuStar and the formation of ET-S Permian. The Terminals segment experienced an increase in segment profit due to the acquisition of NuStar and Zenith European terminals.

Geographical Performance: Sunoco LP operates in over 40 U.S. states, Puerto Rico, Europe, and Mexico. The acquisition of TanQuid, which owns fuel terminals in Germany and Poland, is expected to enhance the company's presence in Europe.

Sales Units: In the Fuel Distribution segment, motor fuel gallons sold were slightly down, with 2,188 million gallons sold in Q2 2025 compared to 2,189 million gallons in Q2 2024. The Pipeline Systems segment reported a decrease in throughput volumes due to the contribution of assets to ET-S Permian.

New Production Launches: The company announced the acquisition of TanQuid, which includes 15 fuel terminals in Germany and one in Poland, expected to close in the second half of 2025.

Future Outlook: The Parkland Acquisition is expected to close in Q4 2025, which will involve the creation of SunocoCorp LLC, a publicly traded entity. The company anticipates that the One Big Beautiful Bill Act will defer the payment of a significant portion of its corporate subsidiaries’ U.S. federal income taxes in future periods.

SEC Filing: Sunoco LP [ SUN ] - 10-Q - Aug. 07, 2025