Sunoco LP (NYSE:SUN) Q2 2024 Earnings Conference Call August 7, 2024 10:00 AM ET
Company Participants
Scott Grischow - SVP, Finance and Treasurer
Karl Fails - COO
Joe Kim - President and CEO
Austin Harkness - Chief Commercial Officer
Conference Call Participants
Theresa Chen - Barclays
Spiro Dounis - Citi
Ned Baramov - Wells Fargo
Robert Mosca - Mizuho Securities
Operator
Greetings and welcome to the Sunoco LP's Second 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, 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 Operating 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 earnings release as well as our filings with the SEC for a list of these factors.
During today's call, we will also discuss their non-GAAP financial measures, including adjusted EBITDA and distributable cash flow as adjusted. Please refer to the Sunoco LP website for reconciliation of each financial measure.
It has been another busy quarter for the partnership, and I'd like to begin my remarks by providing a brief recap. First, on April 16th, we completed the divestiture of 204 convenience stores across West Texas, New Mexico, and Oklahoma to 7-11 for approximately $1 billion.
Next, on May 3rd, we closed the $7.3 billion acquisition of NuStar Energy. We also completed several important financing activities related to the NuStar acquisition in the second quarter. On April 30th, we issued $1.5 billion in senior unsecured notes and used the proceeds to repay NuStar's credit and receivable financing facilities, and fully redeemed NuStar's preferred equity and subordinated notes. The reduction in interest expense from this refinancing activity will generate approximately $60 million in cash flow annually.
Before I turn to second quarter 2024 operational and financial results, I'd like to take a moment to discuss the changes in segment reporting we published in this quarter's earnings release. As we continue to grow and diversify our portfolio of stable income streams, it was now appropriate to modify the way we report our financial and operational results to give our stakeholders better clarity on the performance of the business. To that end, we will now report three segments, field distribution, pipeline systems, and terminals.