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Sunoco LP Announces Third Quarter 2020 Financial and Operating Results
DALLAS, Nov. 4, 2020 /PRNewswire via COMTEX/ -- Copyright (C) 2020 PR Newswire. All rights reserved

Sunoco LP (NYSE: SUN) ("SUN" or the "Partnership") today reported financial and operating results for the three-month period ended September 30, 2020.

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Financial and Operational Highlights

For the three months ended September 30, 2020, net income was $100 million versus net income of $66 million in the third quarter of 2019.

Adjusted EBITDA(1) for the quarter totaled $189 million compared with $192 million in the third quarter of 2019. This year-over-year decrease reflects lower volumes mostly offset by higher reported fuel margins of 12.1 cents per gallon and lower total operating expenses of $112 million as a result of cost reduction measures.

Distributable Cash Flow, as adjusted(1), for the quarter was $139 million, compared to $133 million a year ago.

The Partnership sold 1.9 billion gallons in the third quarter, down 12% from the third quarter of 2019. On a weighted-average basis, fuel margin for all gallons sold was 12.1 cents per gallon for the third quarter compared to 11.6 cents per gallon a year ago.

Distribution and Coverage

On October 26, 2020, the Board of Directors of SUN's general partner declared a distribution for the third quarter of 2020 of $0.8255 per unit, which corresponds to $3.3020 per unit on an annualized basis. The distribution will be paid on November 19, 2020 to common unitholders of record on November 6, 2020. Current quarter cash coverage was 1.61 times and trailing twelve months coverage was 1.56 times.

Liquidity and Leverage

At September 30, 2020, SUN had borrowings of $87 million against its revolving credit facility and other long-term debt of $2.9 billion. The Partnership maintained ample liquidity of $1.4 billion at the end of the quarter under its $1.5 billion revolving credit facility that matures in July 2023 and has no debt maturities prior to 2023. SUN's leverage ratio of net debt to Adjusted EBITDA, calculated in accordance with its credit facility, was 3.93 times at the end of the third quarter compared to 4.51 times at the end of the third quarter of 2019.

Capital Spending

SUN's gross capital expenditures for the third quarter were $20 million, which included $14 million for growth capital and $6 million for maintenance capital.

2020 Business Outlook

The Partnership expects full year 2020 adjusted EBITDA to be at or above $740 million. SUN expects 2020 growth capital expenditures of at least $75 million, maintenance capital expenditures of $30 million and operating expenses(2) in a range of $460 to $475 million.

SUN's segment results and other supplementary data are provided after the financial tables below.

Earnings Conference Call

Sunoco LP management will hold a conference call on Thursday, November 5, at 8:00 a.m. CT (9:00 a.m. ET) to discuss results and recent developments. To participate, dial 877-407-6184 (toll free) or 201-389-0877 approximately 10 minutes early 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 master limited partnership with core operations that include the distribution of motor fuel to approximately 10,000 convenience stores, independent dealers, commercial customers and distributors located in more than 30 states as well as refined product transportation and terminalling assets. SUN's general partner is owned by Energy Transfer Operating, L.P., a wholly owned subsidiary of Energy Transfer LP (NYSE: ET).

Forward-Looking Statements

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 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. In addition to the risks and uncertainties previously disclosed, the Partnership has also been, or may in the future be, impacted by new or heightened risks related to the COVID-19 pandemic and the recent decline in commodity prices, and we cannot predict the length and ultimate impact of those risks. 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

Qualified Notice

This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat 100 percent of Sunoco LP's distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, Sunoco LP's distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.

Contacts

Investors: Scott Grischow, Vice President - Investor Relations and Treasury (214) 840-5660, scott.grischow@sunoco.com

Derek Rabe, CFA, Manager - Investor Relations, Strategy and Growth (214) 840-5553, derek.rabe@sunoco.com

Media: Alexis Daniel, Manager - Communications (214) 981-0739, alexis.daniel@sunoco.com

Financial Schedules Follow -

Key Operating Metrics

The following information is intended to provide investors with a reasonable basis for assessing our historical operations, but should not serve as the only criteria for predicting our future performance.

The key operating metrics by segment and accompanying footnotes set forth below are presented for the three months ended September 30, 2020 and 2019 and have been derived from our historical consolidated financial statements.

The following table presents a reconciliation of Adjusted EBITDA to net income and Adjusted EBITDA to Distributable Cash Flow, as adjusted, for the three months ended September 30, 2020 and 2019:

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SOURCE Sunoco LP

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