DALLAS - Sunoco LP (NYSE: SUN) announced a significant earnings beat for the first quarter of 2024, with adjusted earnings per share (EPS) of $2.26, surpassing the analyst consensus of $1.31.
The company's revenue also exceeded expectations, reaching $5.5 billion against a forecasted $5.23 billion. The robust financial performance represents a substantial increase from the first quarter of 2023, where net income was $141 million, compared to $230 million in the current quarter.
The energy infrastructure and fuel distribution master limited partnership attributed the strong quarter to a 9% increase in fuel sales volume compared to the previous year, despite a slight decrease in fuel margin per gallon. Additionally, the company's strategic acquisitions and divestitures have positioned it for continued growth, prompting an upward revision of its full-year 2024 adjusted EBITDA guidance to a range of $1.46 billion to $1.52 billion.
The revised guidance reflects the impact of the recent acquisition of NuStar Energy L.P. and assets from Zenith Energy, as well as the divestiture of convenience stores to 7-Eleven, Inc. Sunoco's confidence in its business trajectory is further evidenced by a 4% increase in its quarterly distribution to unitholders.
In terms of liquidity, Sunoco reported maintaining approximately $870 million under its $1.5 billion revolving credit facility and a leverage ratio of net debt to adjusted EBITDA of 3.7 times. The company's credit standing has also been recognized with upgraded ratings from S&P Global Ratings and Moody's (NYSE:MCO) Ratings.
Sunoco's CEO expressed optimism about the company's direction, stating, "Our strong first-quarter results and the successful integration of strategic assets underscore our commitment to driving value for our unitholders. We are well-positioned to continue delivering solid performance and growth throughout 2024."
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