Sunoco LP (NYSE:SUN) Q1 2024 Earnings Conference Call May 8, 2024 10:00 AM ET
Company Participants
Scott Grischow – Senior Vice President-Finance and Treasurer
Karl Fails – Chief Operations Officer
Joe Kim – President and Chief Executive Officer
Austin Harkness – Chief Commercial Officer
Conference Call Participants
Theresa Chen – Barclays
Spiro Dounis – Citi
Elvira Scotto – RBC Capital Markets
Robert Mosca – Mizuho Securities
Operator
Greetings, and welcome to the Sunoco LP’s First Quarter 2024 Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Scott Grischow, Senior Vice President, Finance and Treasurer. 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; Austin Harkness, Chief Commercial 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. It has been a busy and exciting start to 2024 for the Sunoco team, and I’d like to begin my comments by reviewing some of that activity.
First, on March 13, we completed the acquisition of two liquid fuels terminals located in Amsterdam, Netherlands and Bantry Bay, Ireland from Zenith Energy for €170 million. Then on April 16, we completed the divestiture of 204 convenience stores across West Texas, New Mexico and Oklahoma to 7-Eleven for approximately $1 billion. And just last week, we closed on the acquisition of NuStar Energy in a transaction valued at approximately $7.2 billion. The completion of these strategic transactions will not only increase the partnership’s stability but will also strengthen our financial foundation and position us for future growth.
Now turning to our first quarter results for 2024. Sunoco delivered a record first quarter with adjusted EBITDA of $242 million compared to $221 million a year ago, an increase of 9%. As Karl will discuss later, this quarter’s results demonstrate that our continued focus on gross profit optimization in our fuel distribution business has helped grow our fuel gross profit dollars over time.