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Sunoco LP’s (SUN - Free Report) unit price fell 4.6% despite reporting better-than-expected second-quarter earnings on Aug 3. Investors are probably worried about the increasing cost of sales and operating expenses.
Sunoco reported second-quarter earnings of $1.20 per unit, comfortably beating the Zacks Consensus Estimate of $1.14. The bottom line significantly decreased from the year-ago quarter’s $1.73 per unit.
Total quarterly revenues of $7,815 million surpassed the Zacks Consensus Estimate of $6,472 million. The top line also increased from $4,392 million a year ago.
The better-than-expected quarterly results were driven by higher motor fuel and non-motor fuel sales.
Sunoco reports financial results through two reportable segments — Fuel Distribution and Marketing, and All Other.
Fuel Distribution and Marketing: Adjusted EBITDA from the segment increased to $200 million from $191 million in the comparable period of 2021, primarily due to higher motor fuel sales.
All Other: The unit reported an adjusted EBITDA of $14 million versus $10 million in the comparable period of 2021. The year-over-year increase can be attributed to higher non-motor and motor fuel sales.
In terms of volumes, the partnership sold 1,985 million gallons of fuel in the reported quarter, up year over year. Motor fuel gross profit per gallon was 12.3 cents versus the year-ago level of 11.3 cents.
Distributable Cash Flow
Adjusted distributable cash flow was $159 million in the second quarter, reflecting an increase from the year-ago quarter’s $145 million.
Expenses & Capital Expenditure
The total cost of sales and operating expenses in the reported quarter surged to $7,642 million from $4,176 million a year ago.
The partnership incurred a capital expenditure of $29 million in the reported quarter, comprising $24 million in growth capital and $5 million in maintenance capital.
Balance Sheet
As of Jun 30, 2022, Sunoco had cash and cash equivalents of $168 million. At the second-quarter end, it had net long-term debt of $2,669 million.
Guidance
For 2022, Sunoco announced the reaffirmation of its adjusted EBITDA guidance at $795-$835 million. The partnership expects maintenance and growth capex of $50 million and $150 million, respectively, for the year.
ExxonMobil’s upstream operation is benefiting from the high oil price. XOM reported strong earnings thanks to higher realized commodity prices and solid refinery utilization, offset partially by increased ethane feed costs in North America. For 2022, ExxonMobil is likely to see earnings growth of 135.7%.
High oil prices are aiding BP’s upstream operations. Its sizable refining and marketing operations will protect it if the crude pricing scenario turns unfavorable again. For 2022, it is likely to witness earnings growth of 116.2%. Over the past few quarters, BP has successfully been reducing long-term debt.
Eni is expecting the discovery of 700 million barrels of oil equivalent (BoE) of new exploration resources this year, suggesting an improvement from the prior guidance of 600 million BoE. For 2022, Eni is likely to witness earnings growth of 165.9%.
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Sunoco (SUN) Stock Declines 4.6% Despite Q2 Earnings Beat
Sunoco LP’s (SUN - Free Report) unit price fell 4.6% despite reporting better-than-expected second-quarter earnings on Aug 3. Investors are probably worried about the increasing cost of sales and operating expenses.
Sunoco reported second-quarter earnings of $1.20 per unit, comfortably beating the Zacks Consensus Estimate of $1.14. The bottom line significantly decreased from the year-ago quarter’s $1.73 per unit.
Total quarterly revenues of $7,815 million surpassed the Zacks Consensus Estimate of $6,472 million. The top line also increased from $4,392 million a year ago.
The better-than-expected quarterly results were driven by higher motor fuel and non-motor fuel sales.
Sunoco LP Price, Consensus and EPS Surprise
Sunoco LP price-consensus-eps-surprise-chart | Sunoco LP Quote
Segmental Performance
Sunoco reports financial results through two reportable segments — Fuel Distribution and Marketing, and All Other.
Fuel Distribution and Marketing: Adjusted EBITDA from the segment increased to $200 million from $191 million in the comparable period of 2021, primarily due to higher motor fuel sales.
All Other: The unit reported an adjusted EBITDA of $14 million versus $10 million in the comparable period of 2021. The year-over-year increase can be attributed to higher non-motor and motor fuel sales.
In terms of volumes, the partnership sold 1,985 million gallons of fuel in the reported quarter, up year over year. Motor fuel gross profit per gallon was 12.3 cents versus the year-ago level of 11.3 cents.
Distributable Cash Flow
Adjusted distributable cash flow was $159 million in the second quarter, reflecting an increase from the year-ago quarter’s $145 million.
Expenses & Capital Expenditure
The total cost of sales and operating expenses in the reported quarter surged to $7,642 million from $4,176 million a year ago.
The partnership incurred a capital expenditure of $29 million in the reported quarter, comprising $24 million in growth capital and $5 million in maintenance capital.
Balance Sheet
As of Jun 30, 2022, Sunoco had cash and cash equivalents of $168 million. At the second-quarter end, it had net long-term debt of $2,669 million.
Guidance
For 2022, Sunoco announced the reaffirmation of its adjusted EBITDA guidance at $795-$835 million. The partnership expects maintenance and growth capex of $50 million and $150 million, respectively, for the year.
Zacks Rank & Stocks to Consider
Sunoco currently has a Zacks Rank #4 (Sell). Some better-ranked stocks in the energy space are Exxon Mobil Corporation (XOM - Free Report) , BP plc (BP - Free Report) and Eni SpA (E - Free Report) . Eni carries a Zacks Rank #2 (Buy), ExxonMobil and BP sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
ExxonMobil’s upstream operation is benefiting from the high oil price. XOM reported strong earnings thanks to higher realized commodity prices and solid refinery utilization, offset partially by increased ethane feed costs in North America. For 2022, ExxonMobil is likely to see earnings growth of 135.7%.
High oil prices are aiding BP’s upstream operations. Its sizable refining and marketing operations will protect it if the crude pricing scenario turns unfavorable again. For 2022, it is likely to witness earnings growth of 116.2%. Over the past few quarters, BP has successfully been reducing long-term debt.
Eni is expecting the discovery of 700 million barrels of oil equivalent (BoE) of new exploration resources this year, suggesting an improvement from the prior guidance of 600 million BoE. For 2022, Eni is likely to witness earnings growth of 165.9%.