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Sunoco's fuel distribution EBITDA increased to $529M as motor fuel volumes and margins improved.
SUN's pre-tax income increased by $102M from lower-cost fuel inventory liquidation during the quarter.
Sunoco raised its quarterly distribution 10% y/y to an annualized rate of $3.9596 per unit.
Sunoco LP (SUN - Free Report) reported first-quarter 2026 earnings of $2.85 per unit, up 135.5% from $1.21 a year ago. The bottom line topped the Zacks Consensus Estimate of $1.71 by 66.7%.
Total quarterly revenues of $10.7 billion surpassed the Zacks Consensus Estimate of $9.6 billion by 11.4%. The top line increased 106.4% from $5.3 billion reported in the year-ago quarter.
The strong quarterly results were driven by higher motor fuel sales volumes and increased motor fuel profit per gallon. Higher operating expenses partially offset the positives.
For the first quarter of 2026, the board of directors of Sunoco's general partner declared a distribution of 98.99 cents per unit or $3.9596 on an annualized basis, marking a sequential increase of 6.25% or a 10% increase from the prior-quarter figure of 89.76 cents per unit.
The distribution is expected to be paid on May 20, 2026, to unitholders of record as of May 8, 2026.
SUN Turns Inventory Actions Into a Meaningful Profit Tailwind
SUN reported net income of $644 million in the first quarter compared with $207 million in the year-ago quarter. Operating income increased to $866 million from $296 million.
During the quarter, the partnership’s pre-tax income increased by $102 million or 54 cents per common unit, due to a LIFO liquidation, driven by reduced fuel inventories.
Segmental Performance
Sunoco posts financial results under four reportable segments after the acquisition of Parkland Corporation: Fuel Distribution, Pipeline Systems, Terminals and Refinery.
Sunoco's Fuel Distribution Leads Scale-Driven Upside
Sunoco’s Fuel Distribution segment remained the earnings engine. Revenues from external customers in the segment were $10.20 billion for the first quarter compared with $4.9 billion in the year-ago period of 2025. Segment adjusted EBITDA was $529 million, higher than the prior-year quarter’s figure of $220 million.
The segment sold 3,796 million gallons of motor fuel, up from 2,087 million gallons recorded in the year-ago period. The motor fuel margin per gallon was 17 cents compared with 11.5 cents in the year-ago quarter.
SUN's Pipeline Systems Add Stability
Pipeline Systems generated $194 million of revenues from external customers in the quarter, higher than the prior year’s figure of $173 million. Segment adjusted EBITDA improved to $179 million from $172 million a year ago, driven by market demand and improved blending economics. The positives were partly offset by higher expenses.
Pipelines throughput was 1,291 thousand barrels per day, up from 1,258 thousand barrels per day recorded in the year-ago period.
SUN's Terminal Segment’s Performance
In Terminals, external revenues improved to $149 million from the year-ago figure of $103 million, driven by recently acquired assets. Segment adjusted EBITDA increased to $107 million from $66 million due to contributions from the Parkland and TanQuid acquisitions.
Throughput rose to 1,013 thousand barrels per day from 620 thousand barrels per day in the first quarter of 2025.
Sunoco's Refinery Shows Its Portfolio Role
External revenues for the segment were $146 million in the quarter. Segment adjusted EBITDA totaled $43 million, including a $10 million gain on sale of inventory.
Crude throughput averaged about 21 thousand barrels per day for the quarter. Meanwhile crude utilization was 38%.
Distributable Cash Flow of SUN
The adjusted distributable cash flow totaled $535 million, up from the year-ago level of $310 million.
Sunoco's Expenses & Capital Expenditure
The total cost of sales and operating expenses increased to $9.8 billion from $4.9 billion a year ago.
The partnership incurred capital expenditures of $199 million, comprising $106 million in growth capital and $93 million in maintenance capital.
Balance Sheet of SUN
As of March 31, 2026, Sunoco had cash and cash equivalents of $718 million and net long-term debt of $13.9 billion. Meanwhile, liquidity was $2.22 billion available under the revolving credit facility, while leverage was around 4.0X.
Chevronreported first-quarter 2026 adjusted earnings per share of $1.41, which beat the Zacks Consensus Estimate of 92 cents.
As of March 31, 2026, CVX reported $5.3 million in cash and cash equivalents. At the quarter's end, its total debt amounted to $45.4 billion.
BP reported first-quarter 2026 earnings of $1.24 per American Depositary Share, which beat the Zacks Consensus Estimate of 91 cents.
As of March 31, 2026, BP reported $35.7 million in cash and cash equivalents. At the quarter's end, its long-term debt totaled $25.3 billion.
Eni reported first-quarter 2026 adjusted earnings from continuing operations of 81 cents per American Depository Receipt, which missed the Zacks Consensus Estimate of $1.13.
As of March 31, 2026, E had a long-term debt of €21.7 billion and cash and cash equivalents of €8.3 billion.
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Sunoco Q1 Earnings & Revenues Beat Estimates on Higher Sales Volume
Key Takeaways
Sunoco LP (SUN - Free Report) reported first-quarter 2026 earnings of $2.85 per unit, up 135.5% from $1.21 a year ago. The bottom line topped the Zacks Consensus Estimate of $1.71 by 66.7%.
Total quarterly revenues of $10.7 billion surpassed the Zacks Consensus Estimate of $9.6 billion by 11.4%. The top line increased 106.4% from $5.3 billion reported in the year-ago quarter.
The strong quarterly results were driven by higher motor fuel sales volumes and increased motor fuel profit per gallon. Higher operating expenses partially offset the positives.
Sunoco LP Price, Consensus and EPS Surprise
Sunoco LP price-consensus-eps-surprise-chart | Sunoco LP Quote
Distribution Hike
For the first quarter of 2026, the board of directors of Sunoco's general partner declared a distribution of 98.99 cents per unit or $3.9596 on an annualized basis, marking a sequential increase of 6.25% or a 10% increase from the prior-quarter figure of 89.76 cents per unit.
The distribution is expected to be paid on May 20, 2026, to unitholders of record as of May 8, 2026.
SUN Turns Inventory Actions Into a Meaningful Profit Tailwind
SUN reported net income of $644 million in the first quarter compared with $207 million in the year-ago quarter. Operating income increased to $866 million from $296 million.
During the quarter, the partnership’s pre-tax income increased by $102 million or 54 cents per common unit, due to a LIFO liquidation, driven by reduced fuel inventories.
Segmental Performance
Sunoco posts financial results under four reportable segments after the acquisition of Parkland Corporation: Fuel Distribution, Pipeline Systems, Terminals and Refinery.
Sunoco's Fuel Distribution Leads Scale-Driven Upside
Sunoco’s Fuel Distribution segment remained the earnings engine. Revenues from external customers in the segment were $10.20 billion for the first quarter compared with $4.9 billion in the year-ago period of 2025. Segment adjusted EBITDA was $529 million, higher than the prior-year quarter’s figure of $220 million.
The segment sold 3,796 million gallons of motor fuel, up from 2,087 million gallons recorded in the year-ago period. The motor fuel margin per gallon was 17 cents compared with 11.5 cents in the year-ago quarter.
SUN's Pipeline Systems Add Stability
Pipeline Systems generated $194 million of revenues from external customers in the quarter, higher than the prior year’s figure of $173 million. Segment adjusted EBITDA improved to $179 million from $172 million a year ago, driven by market demand and improved blending economics. The positives were partly offset by higher expenses.
Pipelines throughput was 1,291 thousand barrels per day, up from 1,258 thousand barrels per day recorded in the year-ago period.
SUN's Terminal Segment’s Performance
In Terminals, external revenues improved to $149 million from the year-ago figure of $103 million, driven by recently acquired assets. Segment adjusted EBITDA increased to $107 million from $66 million due to contributions from the Parkland and TanQuid acquisitions.
Throughput rose to 1,013 thousand barrels per day from 620 thousand barrels per day in the first quarter of 2025.
Sunoco's Refinery Shows Its Portfolio Role
External revenues for the segment were $146 million in the quarter. Segment adjusted EBITDA totaled $43 million, including a $10 million gain on sale of inventory.
Crude throughput averaged about 21 thousand barrels per day for the quarter. Meanwhile crude utilization was 38%.
Distributable Cash Flow of SUN
The adjusted distributable cash flow totaled $535 million, up from the year-ago level of $310 million.
Sunoco's Expenses & Capital Expenditure
The total cost of sales and operating expenses increased to $9.8 billion from $4.9 billion a year ago.
The partnership incurred capital expenditures of $199 million, comprising $106 million in growth capital and $93 million in maintenance capital.
Balance Sheet of SUN
As of March 31, 2026, Sunoco had cash and cash equivalents of $718 million and net long-term debt of $13.9 billion. Meanwhile, liquidity was $2.22 billion available under the revolving credit facility, while leverage was around 4.0X.
SUN’s Zacks Rank & Key Picks
SUN currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are Chevron Corporation (CVX - Free Report) , BP plc (BP - Free Report) and Eni S.p.A. (E - Free Report) . CVX, BP and E currently sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Chevronreported first-quarter 2026 adjusted earnings per share of $1.41, which beat the Zacks Consensus Estimate of 92 cents.
As of March 31, 2026, CVX reported $5.3 million in cash and cash equivalents. At the quarter's end, its total debt amounted to $45.4 billion.
BP reported first-quarter 2026 earnings of $1.24 per American Depositary Share, which beat the Zacks Consensus Estimate of 91 cents.
As of March 31, 2026, BP reported $35.7 million in cash and cash equivalents. At the quarter's end, its long-term debt totaled $25.3 billion.
Eni reported first-quarter 2026 adjusted earnings from continuing operations of 81 cents per American Depository Receipt, which missed the Zacks Consensus Estimate of $1.13.
As of March 31, 2026, E had a long-term debt of €21.7 billion and cash and cash equivalents of €8.3 billion.