Sunoco LP Outlines Q4 and 2018 Financial Results

Sunoco completed a number of acquisitions in 2018 including BRENCO Marketing Corp.’s fuel distribution business, and certain convenience store locations from Speedway LLC, among others.

Sunoco LP reported financial and operating results for the three- and 12-month period ended Dec. 31, 2018.

For the three months ended Dec. 31, 2018, net loss was $72 million versus net income of $232 million in the fourth quarter of 2017. The net loss includes approximately $135 million of non-cash inventory adjustments.

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Adjusted EBITDA for the three months ended Dec. 31, 2018 totaled $180 million compared with $158 million in the fourth quarter of 2017. Results were supported by an increase in the Partnership’s fuel volumes and strong wholesale fuel margins.

Distributable Cash Flow, as adjusted, for the quarter was $114 million, compared to $106 million a year ago. This year-over-year increase reflects higher Adjusted EBITDA and lower cash interest expense offset by higher current tax expense and maintenance capital expenditures.

Recent Accomplishments & Developments
Reported current quarter cash coverage of 1.33 times and trailing 12 months coverage of 1.32 times. SUN’s leverage ratio of net debt to Adjusted EBITDA, calculated in accordance with its credit facility, was 4.16 times at the end of the fourth quarter.

Completed the acquisition of BRENCO Marketing Corp.’s fuel distribution business for approximately $24 million plus working capital adjustments. The transaction closed on Oct. 16, 2018.

Completed the acquisition of the refined products terminaling business from American Midstream Partners LP for approximately $125 million plus working capital adjustments. The transaction closed on Dec. 20, 2018.

Completed the acquisition of the wholesale fuel distribution business from Schmitt Sales Inc. and acquired certain convenience store locations from Speedway LLC for approximately $50 million plus working capital adjustments. The Schmitt Sales transaction closed on Dec. 18, 2018 and the Speedway acquisition closed on Jan. 29, 2019.

Executed a definitive asset purchase agreement with Attis Industries Inc. in January 2019 for the sale of Sunoco’s ethanol plant, including the grain malting operation, in Fulton, New York for total consideration of $20 million in cash plus working capital adjustments.