Sunoco L.P.

Overview Key strengths Key risks Sizable fuel distribution business with exposure in over 40 states throughout the East Coast, Midwest, South Central, and Southeast regions of the continental U.S.; as well as Hawaii and Puerto Rico. Increased wholesale distribution competition cuts into the partnership?s gallons sold and pressures margin. Proven consolidator in the fuel distribution space; expanding scale while slightly improving leverage. Step up in capital spending in 2024 and 2025, leading to negative discretionary cash flows. Ample liquidity supported by the $1.5 billion credit facility and no near-term maturities. Sunoco is the largest independent fuel distributor in the U.S. and continues to grow both organically and through acquisitions. As a part of this strategy, Sunoco has historically acquired modestly

...Sunoco L.P. continues to expand its wholesale and midstream business. Sunoco is the largest independent fuel distributor in the U.S. and continues to grow both organically and through acquisitions. As a part of this strategy, Sunoco has historically acquired modestly sized assets that expand its distribution footprint or vertically integrate with the midstream sector. The Gladieux Energy transmix processing and terminal acquisition, a midstream asset, will provide Sunoco with some vertical integration with its fuel distribution business and add ratable cash flow. The acquisition of Peerless Oil & Chemical Inc. in Puerto Rico, in December 2022 aligns with...

Full Report