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Sunoco (SUN) Q4 Earnings Miss Estimates, Revenues Surpass
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Sunoco LP (SUN - Free Report) reported fourth-quarter 2022 earnings of 42 cents per unit, missing the Zacks Consensus Estimate of 77 cents. The bottom line significantly decreased from the year-ago quarter’s 95 cents per unit.
Total quarterly revenues of $5,918 million beat the Zacks Consensus Estimate of $5,862 million. The top line increased from $4,954 million a year ago.
The weak quarterly earnings were due to the higher total cost of sales and operating expenses.
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 $183 million from $141 million in the comparable period of 2021, primarily due to higher motor fuel sales.
All Other: The unit reported an adjusted EBITDA of $55 million compared with $57 million in the prior-year quarter. The year-over-year decrease can be attributed to lower lease income.
In terms of volumes, the partnership sold 1,979 million gallons of fuel in the reported quarter, up year over year. Motor fuel gross profit per gallon was 12.8 cents compared with the year-ago level of 12 cents.
Distributable Cash Flow
Adjusted distributable cash flow was $153 million in the fourth quarter, reflecting an increase from the year-ago quarter’s $143 million.
Expenses & Capital Expenditure
The total cost of sales and operating expenses in the reported quarter increased to $5,822 million from $4,778 million a year ago.
The partnership incurred a capital expenditure of $89 million in the reported quarter, comprising $56 million in growth capital and $33 million in maintenance capital.
Balance Sheet
As of Dec 31, 2022, Sunoco had cash and cash equivalents of $82 million. At fourth-quarter end, it had net long-term debt of $2,671 million.
Guidance
For 2023, Sunoco expects its adjusted EBITDA in the band of $850-$900 million.
Halliburton is well known for providing products and services to energy companies. Over the past 30 days, HAL has witnessed upward earnings estimate revisions for 2023 and 2024.
PBF Energy is a leading independent refiner in North America. PBF has lower exposure to debt capital as compared to composite stocks belonging to the industry.
Antero Midstream generates stable cashflows, banking on its midstream assets involved in gathering, compression, processing and fractionation activities. The properties are centered around the prolific Appalachian Basin. Over the past 30 days, Antero Midstream has witnessed upward earnings estimate revisions for 2023.
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Sunoco (SUN) Q4 Earnings Miss Estimates, Revenues Surpass
Sunoco LP (SUN - Free Report) reported fourth-quarter 2022 earnings of 42 cents per unit, missing the Zacks Consensus Estimate of 77 cents. The bottom line significantly decreased from the year-ago quarter’s 95 cents per unit.
Total quarterly revenues of $5,918 million beat the Zacks Consensus Estimate of $5,862 million. The top line increased from $4,954 million a year ago.
The weak quarterly earnings were due to the higher total cost of sales and operating expenses.
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 $183 million from $141 million in the comparable period of 2021, primarily due to higher motor fuel sales.
All Other: The unit reported an adjusted EBITDA of $55 million compared with $57 million in the prior-year quarter. The year-over-year decrease can be attributed to lower lease income.
In terms of volumes, the partnership sold 1,979 million gallons of fuel in the reported quarter, up year over year. Motor fuel gross profit per gallon was 12.8 cents compared with the year-ago level of 12 cents.
Distributable Cash Flow
Adjusted distributable cash flow was $153 million in the fourth quarter, reflecting an increase from the year-ago quarter’s $143 million.
Expenses & Capital Expenditure
The total cost of sales and operating expenses in the reported quarter increased to $5,822 million from $4,778 million a year ago.
The partnership incurred a capital expenditure of $89 million in the reported quarter, comprising $56 million in growth capital and $33 million in maintenance capital.
Balance Sheet
As of Dec 31, 2022, Sunoco had cash and cash equivalents of $82 million. At fourth-quarter end, it had net long-term debt of $2,671 million.
Guidance
For 2023, Sunoco expects its adjusted EBITDA in the band of $850-$900 million.
Zacks Rank & Other Stocks to Consider
Sunoco currently sports a Zacks Rank #1 (Strong Buy). Other prospective players in the energy space include Halliburton Company (HAL - Free Report) , PBF Energy (PBF - Free Report) and Antero Midstream Corporation (AM - Free Report) , all carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Halliburton is well known for providing products and services to energy companies. Over the past 30 days, HAL has witnessed upward earnings estimate revisions for 2023 and 2024.
PBF Energy is a leading independent refiner in North America. PBF has lower exposure to debt capital as compared to composite stocks belonging to the industry.
Antero Midstream generates stable cashflows, banking on its midstream assets involved in gathering, compression, processing and fractionation activities. The properties are centered around the prolific Appalachian Basin. Over the past 30 days, Antero Midstream has witnessed upward earnings estimate revisions for 2023.