Strong Financial Performance and Stability
Sunoco LP reported a solid first quarter with adjusted EBITDA of $458 million and distributable cash flow of $310 million. The balance sheet is strong with leverage at 4.1x, in line with long-term targets, and the revolving credit facility had no borrowings outstanding.
Distribution Increase and Coverage
Sunoco declared a distribution of $0.8976 per common unit, marking an increase of over 1.25% from the previous quarter, with a trailing 12-month coverage ratio of 1.9x. This is the second consecutive quarterly increase and aligns with the capital allocation strategy.
Strategic Acquisitions and Expansion
The acquisition of Parkland Corporation for approximately $9.1 billion and TanQuid, Germany's largest independent storage operator, for €500 million are expected to expand geographic reach and enhance growth. These acquisitions are anticipated to be accretive to unitholders in the first year.
Fuel Distribution and Terminal Growth
Adjusted EBITDA for Fuel Distribution was $220 million, an increase from $192 million in the previous quarter. Terminal segment adjusted EBITDA also increased to $66 million, up from $59 million in the previous quarter and $24 million in the first quarter of last year.