Sunoco Q3 net income and EBITDA beat estimates on acquisitions

Overview

• US fuel distributor's Q3 net income and adjusted EBITDA both beat analyst expectations

• Company completed Offen Petroleum acquisition and raised quarterly distribution by 1.25%

• Recent acquisitions, including Parkland, drove strong yr/yr growth in volumes and profits

Outlook

• Company expects to exceed 2026 Adjusted EBITDA guidance range of $3.5 bln to $3.7 bln

• Sunoco LP targets multi-year distribution growth rate of at least 5%

Result Drivers

• ACQUISITIONS - Co said Parkland and other acquisitions drove higher volumes and segment profits in Fuel Distribution, Terminals and Refinery

• FUEL MARGIN EXPANSION - Co reported fuel margin rose to 16.8 cents per gallon from 10.7 cents per gallon yr/yr

• TERMINALS PERFORMANCE - Co said Terminals segment profit rose due to acquisitions and improved transmix business

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil & gas refining and marketing peer group is "buy"

• Wall Street's median 12-month price target for Sunoco LP (Texas) is $83.00, about 20.8% above its November 2 closing price of $68.69

Reuters Recommended Reads

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)