Sunoco (SUN) Q4 2024 earnings summary

Executive summary

• Achieved record annual 2024 results, with net income of $874 million and Adjusted EBITDA of $1.56 billion, driven by the NuStar acquisition and strong operational execution.

• Integration of fuel distribution with pipeline and terminal assets enhanced stability and growth opportunities.

• Balance sheet strengthened, with leverage reduced to 4.1x and $1.3 billion in liquidity at year-end.

• Distribution per unit increased, targeting at least 5% annual growth for 2025.

• Fuel volume for 2024 reached 8.6 billion gallons; distributable cash flow, as adjusted, was $1.08 billion for the year.

Financial highlights

• Full-year 2024 Adjusted EBITDA reached $1.56 billion, up 62% year-over-year; Q4 2024 Adjusted EBITDA was $446 million, excluding $7 million in one-time transaction expenses.

• Full-year 2024 revenue was $22.7 billion; Q4 2024 revenue was $5.27 billion.

• Q4 distributable cash flow (as adjusted) was $261 million; trailing 12-month coverage ratio was 1.9x.

• Net income per common unit for 2024 was $6.04 (basic), up from $3.70 in 2023.

• Growth capital spend was $74 million and maintenance capital was $58 million in Q4.

Outlook and guidance

• 2025 Adjusted EBITDA guidance set at $1.9–$1.95 billion, reflecting confidence in asset performance and integration synergies.

• Total operating expenses for 2025 projected at $900 million to $925 million.

• Growth capital expenditures for 2025 expected to be at least $400 million; maintenance capital expenditures around $150 million.

• Distribution growth of at least 5% targeted for 2025, with increases expected quarterly.

• Long-term outlook remains positive, with expectations for continued accretive growth and strong returns on capital.