Sunoco LP Reports Fourth Quarter and Record Full Year 2024 Financial and Operating Results

— Delivers record full-year 2024 financial and operating results

— Net income of $874 million

— Adjusted EBITDA(1), excluding one-time transaction-related expenses(2), of $1.56 billion

— Fuel volume of 8.6 billion gallons

— Increases quarterly distribution, targeting a distribution growth rate of at least 5% for 2025

— Expects full-year 2025 Adjusted EBITDA(1)(3) to be in a range of $1.90 billion to $1.95 billion

Sunoco LP (NYSE: SUN) (“SUN” or the “Partnership”) today reported financial and operating results for the quarter and year ended December 31, 2024.

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Financial and Operational Highlights

Net income for the fourth quarter of 2024 was $141 million compared to a net loss of $106 million in the fourth quarter of 2023.

Adjusted EBITDA(1) for the fourth quarter of 2024 was $439 million compared to $236 million in the fourth quarter of 2023. Adjusted EBITDA(1) for the fourth quarter of 2024 includes approximately $7 million of one-time transaction-related expenses(2).

Distributable Cash Flow, as adjusted(1), for the fourth quarter of 2024 was $261 million compared to $148 million in the fourth quarter of 2023.

Adjusted EBITDA(1) for the Fuel Distribution segment for the fourth quarter of 2024 was $192 million compared to $209 million in the fourth quarter of 2023. The segment sold approximately 2.2 billion gallons of fuel in the fourth quarter of 2024. Fuel margin for all gallons sold was 10.6 cents per gallon for the fourth quarter of 2024.

Adjusted EBITDA(1) for the Pipeline Systems segment for the fourth quarter of 2024 was $188 million. Adjusted EBITDA(1) for the fourth quarter of 2024 includes approximately $5 million of one-time transaction-related expenses(2). The segment averaged throughput volumes of approximately 1.4 million barrels per day in the fourth quarter of 2024.

Adjusted EBITDA(1)for the Terminals segment for the fourth quarter of 2024 was $59 million compared to $25 million in 2023. Adjusted EBITDA(1) for the fourth quarter of 2024 includes approximately $2 million of one-time transaction-related expenses(2). The segment averaged throughput volumes of approximately 590 thousand barrels per day in the fourth quarter of 2024.

For the year ended December 31, 2024, net income was $874 million compared to $394 million in 2023.

Adjusted EBITDA(1) for the year ended December 31, 2024 was $1.46 billion compared to $964 million in 2023. Adjusted EBITDA(1) for the year ended December 31, 2024 includes $106 million in one-time transaction-related expenses(2).

Distributable Cash Flow, as adjusted(1), for the year ended December 31, 2024 was $1.08 billion, compared to $664 million in 2023.

Distribution

On January 27, 2025, the Board of Directors of SUN's general partner declared a distribution for the fourth quarter of 2024 of $0.8865 per unit, or $3.5460 per unit on an annualized basis. The distribution will be paid on February 19, 2025, to common unitholders of record on February 7, 2025.

The Partnership is targeting a distribution growth rate of at least 5% for 2025 and will announce future increases quarterly.

Liquidity, Leverage and Credit

At December 31, 2024, SUN had long-term debt of approximately $7.5 billion and approximately $1.3 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 credit facility, was 4.1 times at the end of the fourth quarter.

Capital Spending

SUN's total capital expenditures in the fourth quarter of 2024 were $132 million, which included $74 million of growth capital and $58 million of maintenance capital. For the full year 2024, growth capital expenditures were $220 million and maintenance capital expenditures were $124 million.

2025 Business Outlook

— Full-year 2025 Adjusted EBITDA(1)(3) to be in a range of $1.90 billion to $1.95 billion

— Total operating expenses(4) to be in a range of $900 million to $925 million

— Growth capital expenditures of at least $400 million

— Maintenance capital expenditures of approximately $150 million

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

(1) Adjusted EBITDA and Distributable Cash Flow, as adjusted, are non-GAAP financial measures of performance that have limitations and should not be considered as a substitute for net income. Please refer to the discussion and tables under “Supplemental Information” later in this news release for a discussion of our use of Adjusted EBITDA and Distributable Cash Flow, as adjusted, and a reconciliation to net income.

(2) Transaction-related expenses include certain one-time expenses incurred with acquisitions and divestitures.

(3) A reconciliation of non-GAAP forward looking information to corresponding GAAP measures cannot be provided without unreasonable efforts due to the inherent difficulty in quantifying certain amounts due to a variety of factors, including the unpredictability of commodity price movements and future charges or reversals outside the normal course of business which may be significant.

(4) Operating expenses include general and administrative, other operating, and lease expenses.

Earnings Conference Call

Sunoco LP management will hold a conference call on Tuesday, February 11, 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 Webcastsand Presentations.

About Sunoco LP

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).

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, 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

Contacts Investors: Scott Grischow, Treasurer, Senior Vice President – Finance (214) 840-5660, scott.grischow@sunoco.com

Media: Chris Cho, Senior Manager – Communications (469) 646-1647, chris.cho@sunoco.com

Financial Schedules Follow –

SUNOCO LPCONSOLIDATED BALANCE SHEETS(Dollars in millions)(unaudited) December 31, December 31, 2024 2023ASSETSCurrent assets:Cash and cash equivalents $ 94 $ 29Accounts receivable, net 1,162 856Accounts receivable from affiliates – 20Inventories, net 1,068 889Other current assets 141 133Total current assets 2,465 1,927Property and equipment 8,914 2,970Accumulated depreciation (1,240) (1,134)Property and equipment, net 7,674 1,836Other assets:Operating lease right-of-use assets, net 477 506Goodwill 1,477 1,599Intangible assets, net 547 544Other non-current assets 400 290Investment in unconsolidated affiliates 1,335 124Total assets $ 14,375 $ 6,826LIABILITIES AND EQUITYCurrent liabilities:Accounts payable $ 1,255 $ 828Accounts payable to affiliates 199 170Accrued expenses and other current liabilities 457 353Operating lease current liabilities 34 22Current maturities of long-term debt 2 -Total current liabilities 1,947 1,373Operating lease non-current liabilities 479 511Long-term debt, net 7,484 3,580Advances from affiliates 82 102Deferred tax liabilities 157 166Other non-current liabilities 158 116Total liabilities 10,307 5,848Commitments and contingenciesEquity:Limited partners:Common unitholders (136,228,535 and 84,408,014 units issued and outstanding as of 4,066 978December 31, 2024 and 2023, respectively)Class C unitholders – held by subsidiary (16,410,780 units issued and outstanding as of – -December 31, 2024 and 2023)Accumulated other comprehensive income 2 -Total equity 4,068 978Total liabilities and equity $ 14,375 $ 6,826SUNOCO LPCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Dollars in millions, except per unit data)(unaudited) Three months ended December 31, Year Ended December 31, 2024 2023 2024 2023Revenues $ 5,269 $ 5,641 $ 22,693 $ 23,068Costs and Expenses:Cost of sales 4,644 5,492 20,595 21,703Operating expenses 172 94 545 356General and administrative 52 34 277 126Lease expense 19 17 72 68(Gain) loss on disposal of assets and impairment charges (7) 1 45 (7)Depreciation, amortization and accretion 152 46 368 187Total cost of sales and operating expenses 5,032 5,684 21,902 22,433Operating Income (Loss) 237 (43) 791 635Other Income (Expense):Interest expense, net (117) (55) (391) (217)Equity in earnings of unconsolidated affiliates 25 1 60 5Gain (loss) on West Texas Sale (12) – 586 -Loss on extinguishment of debt – – (2) -Other, net 12 – 5 7Income (Loss) Before Income Taxes 145 (97) 1,049 430Income tax expense 4 9 175 36Net Income (Loss) $ 141 $ (106) $ 874 $ 394Net Income (Loss) per Common Unit:Basic $ 0.76 $ (1.50) $ 6.04 $ 3.70Diluted $ 0.75 $ (1.50) $ 6.00 $ 3.65Weighted Average Common Units Outstanding:Basic 136,038,591 84,139,599 118,529,390 84,081,083Diluted 136,870,335 84,139,599 119,342,038 85,093,497Cash Distributions per Common Unit $ 0.8865 $ 0.8420 $ 3.5133 $ 3.3680SUNOCO LPSUPPLEMENTAL INFORMATION(Dollars and units in millions)(unaudited) Three months ended December 31, Year Ended December 31, 2024 2023 2024 2023Net income (loss) $ 141 $ (106) $ 874 $ 394Depreciation, amortization and accretion 152 46 368 187Interest expense, net 117 55 391 217Non-cash unit-based compensation expense 5 4 17 17(Gain) loss on disposal of assets and impairment charges (7) 1 45 (7)Loss on extinguishment of debt – – 2 -Unrealized (gains) losses on commodity derivatives 4 (10) 12 (21)Inventory valuation adjustments (13) 227 86 114Equity in earnings of unconsolidated affiliates (25) (1) (60) (5)Adjusted EBITDA related to unconsolidated affiliates 48 2 101 10(Gain) loss on West Texas Sale 12 – (586) -Other non-cash adjustments 1 9 32 22Income tax expense 4 9 175 36Adjusted EBITDA (1) 439 236 1,457 964Transaction-related expenses 7 – 106 -Adjusted EBITDA(1), excluding transaction-related $ 446 $ 236 $ 1,563 $ 964expensesAdjusted EBITDA (1) $ 439 $ 236 $ 1,457 $ 964Adjusted EBITDA related to unconsolidated affiliates (48) (2) (101) (10)Distributable cash flow from unconsolidated affiliates 43 1 93 7Cash interest expense (114) (53) (369) (210)Current income tax expense (5) (4) (189) (23)Transaction-related income taxes (3) – 179 -Maintenance capital expenditures (58) (33) (124) (70)Distributable Cash Flow 254 145 946 658Transaction-related expenses 7 3 135 6Distributable Cash Flow, as adjusted (1) $ 261 $ 148 $ 1,081 $ 664Distributions to Partners:Limited Partners $ 121 $ 71 $ 478 $ 284General Partner 37 19 145 76Total distributions to be paid to partners $ 158 $ 90 $ 623 $ 360Common Units outstanding – end of period 136.2 84.4 136.2 84.4(1) Adjusted EBITDA is defined as earnings before net interest expense, income taxes, depreciation, amortization and accretion expense, allocated non-cash compensation expense, unrealized gains and losses on commodity derivatives and inventory valuation adjustments, and certain other operating expenses reflected in net income that we do not believe are indicative of ongoing core operations, such as gains or losses on disposal of assets and non-cash impairment charges. We define Distributable Cash Flow as Adjusted EBITDA less cash interest expense, including the accrual of interest expense related to our long-term debt which is paid on a semi-annual basis, current income tax expense, maintenance capital expenditures and other non-cash adjustments. For Distributable Cash Flow, as adjusted, certain transaction-related adjustments and non-recurring expenses are excluded. We believe Adjusted EBITDA and Distributable Cash Flow, as adjusted, are useful to investors in evaluating our operating performance because: (EQNX::save_”– “)Adjusted EBITDA is used as a performance measure under our revolving credit facility; (EQNX::save_”– “)securities analysts and other interested parties use such metrics as measures of financial performance, ability to make distributions to our unitholders and debt service capabilities; (EQNX::save_”– “)our management uses them for internal planning purposes, including aspects of our consolidated operating budget, and capital expenditures; and (EQNX::save_”– “)Distributable Cash Flow, as adjusted, provides useful information to investors as it is a widely accepted financial indicator used by investors to compare partnership performance, and as it provides investors an enhanced perspective of the operating performance of our assets and the cash our business is generating. Adjusted EBITDA and Distributable Cash Flow, as adjusted, are not recognized terms under GAAP and do not purport to be alternatives to net income as measures of operating performance or to cash flows from operating activities as a measure of liquidity. Adjusted EBITDA and Distributable Cash Flow, as adjusted, have limitations as analytical tools, and one should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. Some of these limitations include: (EQNX::save_”– “)they do not reflect our total cash expenditures, or future requirements for capital expenditures or contractual commitments; (EQNX::save_”– “)they do not reflect changes in, or cash requirements for, working capital; (EQNX::save_”– “)they do not reflect interest expense or the cash requirements necessary to service interest or principal payments on our revolving credit facility or senior notes; (EQNX::save_”– “)although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Adjusted EBITDA does not reflect cash requirements for such replacements; and (EQNX::save_”– “)as not all companies use identical calculations, our presentation of Adjusted EBITDA and Distributable Cash Flow, as adjusted, may not be comparable to similarly titled measures of other companies. Adjusted EBITDA reflects amounts for the unconsolidated affiliates based on the same recognition and measurement methods used to record equity in earnings of unconsolidated affiliates. Adjusted EBITDA related to unconsolidated affiliates excludes the same items with respect to the unconsolidated affiliates as those excluded from the calculation of Adjusted EBITDA, such as interest, taxes, depreciation, depletion, amortization and other non-cash items. Although these amounts are excluded from Adjusted EBITDA related to unconsolidated affiliates, such exclusion should not be understood to imply that we have control over the operations and resulting revenues and expenses of such affiliates. We do not control our unconsolidated affiliates; therefore, we do not control the earnings or cash flows of such affiliates. The use of Adjusted EBITDA or Adjusted EBITDA related to unconsolidated affiliates as an analytical tool should be limited accordingly. Inventory valuation adjustments that are excluded from the calculation of Adjusted EBITDA represent changes in lower of cost or market reserves on the Partnership's inventory. These amounts are unrealized valuation adjustments applied to fuel volumes remaining in inventory at the end of the period.SUNOCO LPSUMMARY ANALYSIS OF QUARTERLY RESULTS BY SEGMENT(Tabular dollar amounts in millions)(unaudited) Three months ended December 31, 2024 2023Segment Adjusted EBITDA:Fuel Distribution $ 192 $ 209Pipeline Systems 188 2Terminals 59 25Adjusted EBITDA 439 236Transaction-related expenses 7 -Adjusted EBITDA, excluding transaction-related expenses $ 446 $ 236

The following analysis of segment operating results includes a measure of segment profit. Segment profit is a non-GAAP financial measure and is presented herein to assist in the analysis of segment operating results and particularly to facilitate an understanding of the impacts that changes in sales revenues have on the segment performance measure of Segment Adjusted EBITDA. Segment profit is similar to the GAAP measure of gross profit, except that segment profit excludes charges for depreciation, depletion and amortization. The most directly comparable measure to segment profit is gross profit. The following table presents a reconciliation of segment profit to gross profit.

Three months ended December 31, Year Ended December 31, 2024 2023 2024 2023Fuel Distribution segment profit $ 302 $ 130 $ 1,187 $ 1,225Pipeline Systems segment profit 203 1 535 3Terminals segment profit 120 18 376 137Total segment profit 625 149 2,098 1,365Depreciation, amortization and accretion, excluding 151 45 364 186corporate and otherGross profit $ 474 $ 104 $ 1,734 $ 1,179

Fuel Distribution

Three months ended December 31, 2024 2023Motor fuel gallons sold (millions) 2,151 2,195Motor fuel profit cents per gallon(1) 10.6 ¢ 11.8 ¢Fuel profit $ 239 $ 60Non-fuel profit 35 32Lease profit 28 38Fuel Distribution segment profit $ 302 $ 130Expenses $ (120) $ (126)Segment Adjusted EBITDA $ 192 $ 209Transaction-related expenses – -Segment Adjusted EBITDA, excluding transaction-related expenses $ 192 $ 209(1) Excludes the impact of inventory valuation adjustments consistent with the definition of Adjusted EBITDA.

Volumes. For the three months ended December31, 2024 compared to the same period last year, volumes decreased due to the West Texas Sale, offset by volume increases from investment and profit optimization strategies.

Segment Adjusted EBITDA. For the three months ended December31, 2024 compared to the same period last year, Segment Adjusted EBITDA related to our Fuel Distribution segment decreased due to the net impact of the following:

— a decrease of $13 million related to a 2% decrease in gallons sold and a decrease in profit per gallon primarily due to the West Texas Sale in April 2024; and

— a decrease of$10 million in lease profit due to the West Texas Sale; partially offset by

— a decrease of$6 million in expenses primarily due to the West Texas Sale and lower allocated overhead.

Pipeline Systems

Three months ended December 31, 2024 2023Pipelines throughput (thousand barrels per day) 1,395 -Pipeline Systems segment profit $ 203 $ 1Expenses $ (64) $ -Segment Adjusted EBITDA $ 188 $ 2Transaction-related expenses 5 -Segment Adjusted EBITDA, excluding transaction-related expenses $ 193 $ 2

Volumes. For the three months ended December31, 2024 compared to the same period last year, volumes increased due to recently acquired assets.

Segment Adjusted EBITDA. For the three months ended December 31, 2024 compared to the same period last year, Segment Adjusted EBITDA related to our Pipeline Systems segment increased due to the acquisition of NuStar on May 3, 2024.

Terminals

Three months ended December 31, 2024 2023Throughput (thousand barrels per day) 593 411Terminal segment profit $ 120 $ 18Expenses $ (59) $ (19)Segment Adjusted EBITDA $ 59 $ 25Transaction-related expenses 2 -Segment Adjusted EBITDA, excluding transaction-related expenses $ 61 $ 25

Volumes. For the three months ended December31, 2024 compared to the same period last year, volumes increased due to recently acquired assets.

Segment Adjusted EBITDA. For the three months ended December 31, 2024 compared to the same period last year, Segment Adjusted EBITDA related to our Terminals segment increased primarily due to the recent acquisitions of NuStar and Zenith European terminals.

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SOURCE Sunoco LP

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