Sunoco LP (NYSE:SUN) Q4 2022 Earnings Conference Call February 15, 2023 10:00 AM ET
Company Participants
Scott Grischow - VP, IR, SVP, Finance & Treasurer
Karl Fails - EVP & COO
Joseph Kim - President, CEO & Director
Conference Call Participants
Theresa Chen - Barclays Bank
Elvira Scotto - RBC Capital Markets
Spiro Dounis - Citigroup
Ned Baramov - Wells Fargo Securities
Operator
Greetings, and welcome to the Sunoco LP's Fourth Quarter and Full Year 2022 Earnings Conference 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 Investor Relations and Treasury. Thank you, sir. 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 are subject to various risks and uncertainties. These statements 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.
I'd like to start the call by looking at some of our fourth quarter and full year 2022 highlights. Adjusted EBITDA for the fourth quarter was $238 million compared to $198 million a year ago, an increase of 20%. The partnership sold 2 billion gallons in the fourth quarter, up 5% from the fourth quarter of last year. Fuel margin for all gallons sold was $0.128 per gallon compared to $0.12 per gallon a year ago.
Total fourth quarter operating expenses were $138 million, an increase of $15 million from the same period last year. Fourth quarter distributable cash flow as adjusted was $153 million compared to $143 million in the fourth quarter of 2021, yielding a coverage ratio of 1.8x. Our coverage ratio for the full year 2022 was 1.9x.
On January 25, we declared an $0.8255 per unit distribution, consistent with last quarter. The stability of our business and history of delivering results continues to support a stable and secure distribution for unitholders.