Sunoco LP ( SUN ) shares are trading higher after it reported second-quarter FY24 revenues of $6.17 billion, which exceeded the consensus of $5.82 billion.

The partnership sold over 2.2 billion gallons of fuel (+5% Y/Y), with the fuel margin for all gallons sold at 11.8 cents per gallon (vs 11.9 cents per gallon in the prior year quarter).

Adjusted distributable cash flow of $295 million was higher than $175 million a year ago.

Adjusted EBITDA increased to $320 million from $250 million a year ago. EPS of $3.85 surpassed the consensus of $1.30.

Total capital expenditures were $78 million, including $52 million for growth capital and $26 million for maintenance capital.

Distribution: On July 25, 2024, Sunoco ( SUN ) declared a distribution of $0.8756 per unit, payable on August 19, to unitholders of record as of August 9.

As of June 30, 2024, the company had long-term debt of about $7.3 billion and approximately $1.4 billion in liquidity remaining on its $1.5 billion revolving credit facility.

Outlook: Sunoco ( SUN ) reaffirmed FY24 guidance for adjusted EBITDA of $1.46 billion to $1.52 billion, excluding synergies and transaction-related expenses.

The company expects NuStar deal to realize expense synergies of $200 million (vs. at least $150 million prior) and financial synergies of $60 million.

In July, Sunoco ( SUN ) and Energy Transfer LP ( ET ) formed a joint venture to merge their crude oil and produced water-gathering assets in the Permian Basin, effective July 1, 2024.

Investors can gain exposure to the stock via InfraCap MLP ETF ( AMZA ) and Global X MLP ETF ( MLPA ) .

Price Action: Sunoco shares are up 1.42% at $54.36 at the last check Wednesday.

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