DALLAS, April 17,
2024 /PRNewswire/ -- Sunoco LP (NYSE: SUN) ("SUN" or
the "Partnership") today announced the completion of the
acquisition of liquid fuels terminals from Zenith Energy and the
divestiture of 204 convenience stores to 7-Eleven, Inc.
("7-Eleven"). Both transactions were completed at highly attractive
multiples and are immediately accretive to unitholders on key
metrics.
Including the impact from the European terminal acquisition and
West Texas divestiture, the
Partnership continues to expect full year 2024 Adjusted
EBITDA(1)(2) to be in a range of $975 million to $1
billion.
European Terminals Acquisition
On March 13, 2024, SUN completed the acquisition of
one hundred percent of the equity interest in Zenith Energy
Netherlands Amsterdam B.V. for €170 million. The Amsterdam terminal occupies a strategic
position within the Port of Amsterdam, a pivotal hub for global energy
trading and a critical component of Europe's energy market. The Bantry Bay
terminal is Ireland's premier
independent bulk liquids storage facility supporting the nation's
strategic oil reserves. This acquisition creates supply chain
efficiencies for the Partnership's U.S. East Coast operations and
aligns with an ongoing commitment to add stable midstream
income.
West Texas Divestiture
On April
16, 2024, SUN completed the divestiture of 204 convenience
stores located in West Texas,
New Mexico, and Oklahoma to 7-Eleven, Inc. for approximately
$1.0 billion. This transaction
further demonstrates the Partnership's ability to optimize its
portfolio while positioning the balance sheet for material growth.
As part of the sale, SUN amended its existing take-or-pay fuel
supply agreement with 7-Eleven, Inc. to incorporate additional fuel
gross profit.
(1) Adjusted EBITDA is a non-GAAP financial measure
of performance that we define as earnings before net interest
expense, income taxes, depreciation, amortization and accretion
expense, allocated non-cash unit-based compensation expense,
unrealized gains and losses on commodity derivatives, inventory
adjustments and certain other operating expenses reflected in net
income that we do not believe are indicative of ongoing core
operations, such as gain or loss on disposal of assets and non-cash
impairment charges. Adjusted EBITDA has limitations and should not
be considered as a substitute for net income.
(2) A reconciliation of non-GAAP forward looking
information to the corresponding GAAP measure cannot be provided
without unreasonable efforts due to the inherent difficulty in
quantifying certain amounts due to a variety of factors, including
the unpredictability of commodity price movements and future
charges or reversals outside the normal course of business which
may be significant.
Sunoco LP (NYSE: SUN) is a master limited
partnership with core operations that include the distribution of
motor fuel to approximately 10,000 convenience stores, independent
dealers, commercial customers and distributors located in more than
40 U.S. states and territories as well as refined product
transportation and terminalling assets in the U.S. and Europe. SUN's general partner is owned by
Energy Transfer LP (NYSE: ET).
Forward-Looking Statements
This news release may include certain statements concerning
expectations for the future that are forward-looking statements as
defined by federal law. Such forward-looking statements are subject
to a variety of known and unknown risks, uncertainties, and other
factors that are difficult to predict and many of which are beyond
management's control. An extensive list of factors that can affect
future results are discussed in the Partnership's Annual Report on
Form 10-K and other documents filed from time to time with the
Securities and Exchange Commission. The Partnership
undertakes no obligation to update or revise any forward-looking
statement to reflect new information or events.
The information contained in this press release is available on
our website at www.sunocolp.com
Contacts
Investors:
Scott
Grischow, Treasurer, Senior Vice President – Finance
(214) 840-5660, scott.grischow@sunoco.com
Media:
Vicki Granado,
Vice President – Media & Communications
(214) 981-0761, vicki.granado@energytransfer.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/sunoco-lp-completes-acquisition-of-european-liquid-fuels-terminals-and-divestiture-of-west-texas-assets-reaffirms-2024-adjusted-ebitda-guidance-range-302119364.html
SOURCE Sunoco LP