Sunoco LP (NYSE:SUN) Q2 2023 Earnings Conference Call August 2, 2023 10:00 AM ET
Company Participants
Scott Grischow - VP, IR, SVP, Finance & Treasurer
Joseph Kim - President, CEO & Director, Sunoco GP LLC
Karl Fails - EVP & COO, Sunoco GP LLC
Conference Call Participants
Robert Mosca - Mizuho Securities
Selman Akyol - Stifel, Nicolaus & Company
Ned Baramov - Wells Fargo Securities
John Royall - JPMorgan Chase & Co.
Operator
Greetings, and welcome to the Sunoco LP's Q2 2023 Earnings Call. [Operator Instructions]. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Scott Grischow, Senior Vice President of Finance. Thank you, Scott. You may begin.
Scott Grischow
Thank you, and good morning, everyone. On the call with me this morning are Joe Kim, Sunoco LP's, President and Chief Executive Officer; Karl Fails, Chief Operations Officer; Dylan Bramhall, Chief Financial Officer; and other members of the management team. Today's call will contain forward-looking statements that include expectations and assumptions regarding the partnership's future operations and financial performance. Actual results could differ materially, and the partnership undertakes no obligation to update these statements based on subsequent events. Please refer to our earnings release as well as our filings with the SEC for a list of these factors.
During today's call, we will also discuss certain non-GAAP financial measures, including adjusted EBITDA and distributable cash flow as adjusted. Please refer to the Sunoco LP website for a reconciliation of each financial measure. Sunoco LP delivered record results for a second quarter that demonstrates the earnings power of our business. The partnership generated adjusted EBITDA of $250 million compared to $214 million a year ago, an increase of 17%. Fuel volumes for the quarter were 2.1 billion gallons, up 5% from the second quarter last year. Fuel margin for all gallons sold was $0.127 per gallon compared to $0.123 per gallon a year ago.
Total second quarter operating expenses were $137 million, an increase of $9 million from the same period last year. This year-over-year increase was attributable to the Peerless and Zenith acquisitions. During the second quarter, we spent $35 million of growth capital and $15 million in maintenance capital. Second quarter distributable cash flow as adjusted was $175 million, compared to $159 million in the second quarter of 2022, yielding a current quarter and trailing 12-month coverage ratio of 1.9x. On July 25th, we declared an $0.842 per unit distribution consistent with last quarter. As you may recall, we increased our distribution by 2% last quarter and expect to evaluate future distribution increases annually in the first quarter.