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Sunoco LP (SUN - Free Report) reported first-quarter 2024 earnings per share (EPS) of $2.26, which beat the Zacks Consensus Estimate of $1.06. The bottom line also increased from the year-ago quarter’s earnings of $1.41.
Total quarterly revenues of $5.49 billion beat the Zacks Consensus Estimate of $5.13 billion. The top line increased from the $5.36 billion reported a year ago.
The strong quarterly results can be attributed to increased revenues from the fuel distribution and marketing segment.
Sunoco reports financial results through two reportable segments — Fuel Distribution and Marketing, and All Other.
Fuel Distribution and Marketing: Total revenues in the segment increased to $5.31 billion from $5.17 billion in the comparable period of 2023, primarily due to higher motor fuel sales. The reported figure also beat our estimate of $4.8 billion.
All Other: The unit reported total revenues of $190 million compared with $196 million in the prior-year quarter. The year-over-year downside can be attributed to lower motor and non-motor fuel sales. Our estimate for the same was pinned at $188 million.
In terms of volumes, the partnership sold 2.1 billion gallons of fuel in the reported quarter, up 9% from the first quarter of 2023. The metric also beat our estimate of 1.9 billion gallons.
Motor fuel gross profit per gallon was 11.7 cents compared with the year-ago level of 12.9 cents.
Sunoco reported a total operating income of $297 million, which increased from the $199 million reported in the prior-year quarter. The figure also beat our estimate of $161.7 million.
For the quarter ended Mar 31, 2024, the net income was $230 million versus $141 million in the first quarter of 2023. The figure also beat our estimate of $108.6 million.
Distributable Cash Flow
The adjusted distributable cash flow totaled $176 million in the first quarter, up from the year-ago level of $160 million.
Expenses & Capital Expenditure
The total cost of sales and operating expenses in the reported quarter increased to $5.20 billion from $5.16 billion a year ago.
The partnership incurred a capital expenditure of $41 million in the first quarter, comprising $27 million in growth capital and $14 million in maintenance capital.
Balance Sheet
As of Mar 31, 2024, Sunoco had cash and cash equivalents of $215 million and a net long-term debt of $3.8 billion.
Guidance
For 2024, the partnership raised its expected adjusted EBITDA from $975 million to $1 billion, expanding the range to $1.46 billion to $1.52 billion for the acquisition of NuStar Energy L.P. This expected range represents an increase from the $964 million reported in 2023.
Hess operates primarily in two areas — the Bakken shale and the Stabroek project offshore Guyana. It is currently in the process of being acquired by supermajor Chevron in an all-stock deal worth $53 billion. HES currently has a Growth Score of B.
The Zacks Consensus Estimate for 2024 and 2025 EPS is pegged at $9.17 and $11.08, respectively. The company has witnessed upward earnings estimate revisions for 2024 in the past 30 days.
EOG Resources, an oil and gas exploration company, boasts attractive growth prospects, top-tier returns, and a disciplined management team, leveraging highly productive acreages in prime oil shale plays like the Permian and Eagle Ford.
The Zacks Consensus Estimate for EOG’s 2024 EPS is pegged at $12.21. The company has a Zacks Style Score of B for Value and A for Momentum. It has witnessed upward earnings estimate revisions for 2024 in the past seven days.
Valero Energy is a premier refining player with a presence across North America and the Caribbean. Its diverse network favors robust refining margins, utilizing cost-effective crude for more than half of its needs.
The Zacks Consensus Estimate for VLO’s 2024 EPS is pegged at $18.01. The company has a Zacks Style Score of A for Value. It has witnessed upward earnings estimate revisions for 2025 in the past seven days.
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Sunoco (SUN) Beats on Q1 Earnings, Ups '24 Adjusted EBITDA View
Sunoco LP (SUN - Free Report) reported first-quarter 2024 earnings per share (EPS) of $2.26, which beat the Zacks Consensus Estimate of $1.06. The bottom line also increased from the year-ago quarter’s earnings of $1.41.
Total quarterly revenues of $5.49 billion beat the Zacks Consensus Estimate of $5.13 billion. The top line increased from the $5.36 billion reported a year ago.
The strong quarterly results can be attributed to increased revenues from the fuel distribution and marketing segment.
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: Total revenues in the segment increased to $5.31 billion from $5.17 billion in the comparable period of 2023, primarily due to higher motor fuel sales. The reported figure also beat our estimate of $4.8 billion.
All Other: The unit reported total revenues of $190 million compared with $196 million in the prior-year quarter. The year-over-year downside can be attributed to lower motor and non-motor fuel sales. Our estimate for the same was pinned at $188 million.
In terms of volumes, the partnership sold 2.1 billion gallons of fuel in the reported quarter, up 9% from the first quarter of 2023. The metric also beat our estimate of 1.9 billion gallons.
Motor fuel gross profit per gallon was 11.7 cents compared with the year-ago level of 12.9 cents.
Sunoco reported a total operating income of $297 million, which increased from the $199 million reported in the prior-year quarter. The figure also beat our estimate of $161.7 million.
For the quarter ended Mar 31, 2024, the net income was $230 million versus $141 million in the first quarter of 2023. The figure also beat our estimate of $108.6 million.
Distributable Cash Flow
The adjusted distributable cash flow totaled $176 million in the first quarter, up from the year-ago level of $160 million.
Expenses & Capital Expenditure
The total cost of sales and operating expenses in the reported quarter increased to $5.20 billion from $5.16 billion a year ago.
The partnership incurred a capital expenditure of $41 million in the first quarter, comprising $27 million in growth capital and $14 million in maintenance capital.
Balance Sheet
As of Mar 31, 2024, Sunoco had cash and cash equivalents of $215 million and a net long-term debt of $3.8 billion.
Guidance
For 2024, the partnership raised its expected adjusted EBITDA from $975 million to $1 billion, expanding the range to $1.46 billion to $1.52 billion for the acquisition of NuStar Energy L.P. This expected range represents an increase from the $964 million reported in 2023.
Zacks Rank & Other Stocks to Consider
Sunoco currently flaunts a Zacks Rank #2 (Buy).
Investors interested in the energy sector may look at some other top-ranked companies like Hess Corporation (HES - Free Report) , EOG Resources Inc. (EOG - Free Report) and Valero Energy Corporation (VLO - Free Report) . While Hess sports a Zacks Rank #1 (Strong Buy), EOG Resources and Valero Energy carry a Zacks Rank #2 each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Hess operates primarily in two areas — the Bakken shale and the Stabroek project offshore Guyana. It is currently in the process of being acquired by supermajor Chevron in an all-stock deal worth $53 billion. HES currently has a Growth Score of B.
The Zacks Consensus Estimate for 2024 and 2025 EPS is pegged at $9.17 and $11.08, respectively. The company has witnessed upward earnings estimate revisions for 2024 in the past 30 days.
EOG Resources, an oil and gas exploration company, boasts attractive growth prospects, top-tier returns, and a disciplined management team, leveraging highly productive acreages in prime oil shale plays like the Permian and Eagle Ford.
The Zacks Consensus Estimate for EOG’s 2024 EPS is pegged at $12.21. The company has a Zacks Style Score of B for Value and A for Momentum. It has witnessed upward earnings estimate revisions for 2024 in the past seven days.
Valero Energy is a premier refining player with a presence across North America and the Caribbean. Its diverse network favors robust refining margins, utilizing cost-effective crude for more than half of its needs.
The Zacks Consensus Estimate for VLO’s 2024 EPS is pegged at $18.01. The company has a Zacks Style Score of A for Value. It has witnessed upward earnings estimate revisions for 2025 in the past seven days.