Sunoco LP Reports Decrease in Revenue and Net Income for Q1 2025

Sunoco LP reported a decrease in financial performance for the first quarter of 2025, with total revenues of $5.179 billion, down from $5.499 billion in the same period last year. The decline in sales revenue, which fell to $4.851 billion from $5.398 billion, was attributed to lower fuel sales volumes and pricing pressures. Net income also decreased to $207 million, or $1.22 per common unit, compared to $230 million, or $2.29 per common unit, in the prior year. The decrease in net income was primarily driven by increased operating expenses, depreciation, and interest expenses, despite a favorable adjustment in equity earnings from unconsolidated affiliates.

In terms of operational metrics, Sunoco's total assets slightly decreased to $14.342 billion from $14.375 billion at the end of 2024. The company reported a reduction in accounts receivable, which fell to $1.031 billion from $1.162 billion, and a modest increase in inventories, which rose to $1.111 billion from $1.068 billion. The partnership's cash and cash equivalents increased to $172 million from $94 million, reflecting improved liquidity. The total number of common units outstanding increased to 136.3 million, up from 136.2 million, indicating a stable equity base.

Strategically, Sunoco has been active in pursuing acquisitions to bolster its market position. The company announced plans to acquire Parkland Corporation for approximately $9.1 billion, including assumed debt, and is also set to acquire TanQuid GmbH & Co. KG for about $540 million. These acquisitions are expected to close in the second half of 2025 and will be funded through a combination of cash on hand and available credit. Additionally, Sunoco completed smaller acquisitions totaling $17 million in the first quarter, which included fuel equipment and supply agreements.

Looking ahead, Sunoco's management expressed optimism regarding future growth, driven by the anticipated contributions from the newly acquired assets and ongoing operational improvements. The company expects to utilize its $1.50 billion credit facility, which has significant unused capacity, to support its capital expenditures and operational needs. However, management also acknowledged potential challenges, including market volatility and regulatory changes, which could impact financial performance. The partnership remains committed to maintaining compliance with financial covenants and managing its debt levels prudently as it navigates these developments.