Sunoco LP Boosts Dividends After Strong Q2
Sunoco LP reported a net income of $86 million for the second quarter of 2025, according to financial results released by the company on Wednesday. The partnership also announced a 1.25% increase in its quarterly distribution, putting it on track to meet its distribution growth target for the year.
The company’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), excluding one-time transaction expenses, reached $464 million for the quarter, an increase from $320 million in the same period in 2024. However, net income for the quarter was down significantly from the $501 million reported in the second quarter of last year.
Sunoco also reaffirmed its full-year 2025 Adjusted EBITDA guidance of between $1.90 billion and $1.95 billion, excluding one-time transaction costs.
The increase in the quarterly distribution raises the payout to $0.9088 per unit, or $3.6352 on an annualized basis. This marks the third consecutive quarterly increase and is consistent with the company’s stated goal of achieving an annual distribution growth rate of at least 5% for 2025. Since 2022, Sunoco has increased distributions by approximately 10%. The distribution will be paid on August 19 to unitholders of record as of August 8.
The company’s financial results were bolstered by its Pipeline Systems and Terminals segments. The Pipeline Systems segment’s Adjusted EBITDA was $177 million, a substantial increase from $53 million in the second quarter of 2024. The Terminals segment saw its Adjusted EBITDA rise to $71 million, up from $22 million in the prior-year quarter. The Fuel Distribution segment, however, saw a decrease in Adjusted EBITDA to $206 million from $245 million a year earlier, despite selling approximately 2.2 billion gallons of fuel.
The results also come as the company proceeds with its acquisition of Parkland. Parkland shareholders approved the merger with over 93% of votes cast in favor of the transaction on June 24. The deal, which is subject to regulatory and stock exchange approvals, is expected to close in the fourth quarter of 2025.
By Michael Kern for Oilprice.com
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