Sunoco LP has raised its full-year 2026 earnings guidance by US$400 million (AU$568 million) following a standout second quarter, underpinned by robust growth across its fuel distribution and midstream asset network.
The US energy and fuel distributor now projects full-year adjusted earnings to reach between US$3.5 billion and US$3.7 billion, driven by strong first-half operational momentum across its fuel distribution, pipeline, terminal, and refining divisions.
For the quarter ended June 30, Sunoco reported a net income of US$283 million, more than tripling the US$86 million recorded in the second quarter of 2025.
Adjusted EBITDA reached US$996 million, excluding US$14 million in one-time transaction expenses, up sharply from US$454 million a year earlier. Distributable cash flow expanded to US$608 million for the period.
The fuel distribution segment served as the primary growth driver, contributing US$504 million in adjusted earnings while delivering approximately 4.1 billion gallons of fuel at an average margin of 17.1 cents per gallon.
Midstream infrastructure also delivered solid results, with pipeline systems and terminals generating US$190 million and US$113 million in earnings, respectively, while the refinery segment added US$175 million.
Capital spending for the quarter totalled US$202 million, incorporating US$125 million allocated to growth capital and US$77 million in maintenance investments.
On the back of the result, Sunoco declared a second-quarter distribution of US$1 per share, representing a 1.25 per cent sequential increase and a 10 per cent surge year-on-year.
This marks Sunoco’s seventh consecutive quarterly distribution increase, aligning with its target multi-year distribution growth rate of at least 5 per cent.
Sunoco closed the quarter with US$13.3 billion in long-term debt, US$2.3 billion in available revolving credit liquidity, and a leverage ratio of 3.7 times net debt to adjusted earnings.
