Sunoco LP names Joe Kim as chief executive officer

DALLAS, 2017-Nov-07 — /EPR Retail News/ — Sunoco LP (NYSE: SUN) (“Sunoco” or the “Partnership”) announced today (Nov. 6, 2017) that Joe Kim has been named chief executive officer of Dallas-based Sunoco LP, effective January 1, 2018. Kim has been serving as president and chief operating officer since June following the announcement that current Chief Executive Officer Bob Owens would retire from the Partnership as of December 31, 2017. Owens will continue to serve as a consultant to the Partnership through 2019.

Prior to his most recent appointment, Kim had been serving as executive vice president and chief development officer for Sunoco from October 2015 to June 2017, where he was responsible for all business development and merger and acquisition activities across the Partnership.  During his service with Sunoco, Kim has provided a wealth of experience and expertise in strategic planning and execution of growth initiatives.

Previously, Kim held the position of chief operating officer at Pizza Hut, where he was responsible for management of all operations, with an emphasis on speed to market and restaurant excellence.  Prior to that, he worked for fifteen years at Valero Energy where his most recent position was senior vice president of strategy and growth. He also held roles in field and franchise operations, strategic planning, merchandising, development and investor relations. He began his career with Arthur Andersen Business Consulting.  Kim is a graduate of Trinity University in San Antonio, Texas with a bachelor’s degree in business administration.

“I would like to extend a heartfelt thank you to Bob for his more than 20 years of service to Sunoco. We are grateful for his strategic leadership and wish him well as he embarks on his new endeavor,” said Matthew S. Ramsey, chairman of the board of Sunoco LP. “Bob is leaving Sunoco in good hands. Joe is an exceptionally talented leader and he is poised to successfully complete the transformation of the Partnership from a retail-based business into the premier U.S. fuel supplier.”

Sunoco LP  (NYSE: SUN) is a master limited partnership that operates 1,346 convenience stores and retail fuel sites and distributes motor fuel to 7,898 convenience stores, independent dealers, commercial customers and distributors located in 30 states.  Our parent — Energy Transfer Equity, L.P. (NYSE: ETE) — owns SUN’s general partner and incentive distribution rights. For more information visit sunocolp.com.

Forward-Looking Statements

This press release may include certain statements concerning expectations for the future that are forward-looking statements as defined by federal law. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management’s control. An extensive list of factors that can affect future results are discussed in the Partnership’s Annual Report on Form 10-K and other documents filed from time to time with the Securities and Exchange Commission. The Partnership undertakes no obligation to update or revise any forward-looking statement to reflect new information or events.

Contact:

Investors:
Scott Grischow
Senior Director – Investor Relations and Treasury
(214) 840-5660
scott.grischow@sunoco.com

Derek Rabe
CFA
Senior Analyst – Investor Relations and Finance
(214) 840-5553
derek.rabe@sunoco.com

Media:
Alyson Gomez
Director – Communications
(469) 646-1758
alyson.gomez@sunoco.com

SOURCE: Sunoco LP

Sunoco LP to present at the Citi MLP/Midstream Infrastructure Conference

DALLAS, 2017-Aug-17 — /EPR Retail News/ — Sunoco LP (NYSE: SUN) (“SUN” or the “Partnership”) today (Aug. 16, 2017) announced that its senior management will hold 1×1 meetings with institutional investors at the Citi MLP/Midstream Infrastructure Conference in Las Vegas on August 16-17 .

Presentation materials to be used during these meetings are available on the company’s website at www.sunocolp.com in the Investor Relations section under Events & Presentations.

Sunoco LP (NYSE: SUN) is a master limited partnership that operates 1,353 convenience stores and retail fuel sites and distributes motor fuel to 7,937 convenience stores, independent dealers, commercial customers and distributors located in 30 states. Our parent — Energy Transfer Equity, L.P. (NYSE: ETE) — owns SUN’s general partner and incentive distribution rights.

Contacts:
Investors:
Scott Grischow
Senior Director – Investor Relations and Treasury
(214) 840-5660
scott.grischow@sunoco.com

Derek Rabe
Senior Analyst – Investor Relations and Finance
(214) 840-5553
derek.rabe@sunoco.com

Media:

Alyson Gomez
Director – Communications
(469) 646-1758
alyson.gomez@sunoco.com

SOURCE: Sunoco LP

Sunoco LP Q2 results: Revenue totaled $2.4 billion; 13% up from same period previous year

DALLAS, 2017-Aug-09 — /EPR Retail News/ —

  • Executed definitive agreement to divest a majority of company-operated convenience stores to 7-Eleven, Inc. and launched sales process for remaining company-operated convenience stores in North and West Texas, New Mexico and Oklahoma
    • Results of the retail divestitures are presented in discontinued operations
  • Maintained quarterly distribution of 82.55 cents and reported current quarter cash coverage of 1.53 times
  • Generated Net Loss of $222 million, Adjusted EBITDA(1) of $220 million and Distributable Cash Flow(1), as adjusted, of $158 million

Sunoco LP (NYSE: SUN) (“SUN” or the “Partnership”) today (Aug 08, 2017) announced financial and operating results for the three-month period ended June 30, 2017.

Revenue totaled $2.4 billion, an increase of 13.0 percent, compared to $2.1 billion in the second quarter of 2016. The increase was the result of the average wholesale selling price of fuel being 14 cents per gallon higher than last year and additional wholesale gallons sold.

Total gross profit declined to $165 million, compared to $227 million in the second quarter of 2016, as a result of lower wholesale motor fuel gross profits.

Income from continuing operations was $34 million, versus $57 million in the second quarter of 2016. General and administrative expenses increased $4 million from the second quarter of 2016 to $40 million driven by transaction-related expenses.  Other operating expenses decreased $1 million from the second quarter of 2016 to $46 million.

Loss from discontinued operations, net of income taxes, was $256 million including a $320 million charge related to assets held for sale, versus income from discontinued operations, net of income taxes, of $15 million in the second quarter of 2016.

Net loss was $222 million, or ($2.53) per diluted unit, versus $72 million, or $0.53 per diluted unit, in the second quarter of 2016.

Adjusted EBITDA for the quarter totaled $220 million, compared with $164 million in the second quarter of 2016.  The favorable year-over-year comparison reflects increased motor fuel gross profit cents per gallon and increased gallons sold.

Distributable Cash Flow, as adjusted, was $158 million, compared to $92 million a year ago. This year over year increase reflects higher Adjusted EBITDA and decreased maintenance capital spend partly offset by increased cash interest expense.

On a weighted-average basis, fuel margin for all gallons sold was 16.2 cents per gallon, compared to 13.8 cents per gallon in the second quarter of 2016.  The 2.4 cents per gallon increase was primarily attributable to higher margins in both the retail and wholesale segments.

Net income for the wholesale segment was $5 million compared to $86 million a year ago due to the impact of inventory valuation adjustments.  Adjusted EBITDA was $93 million, versus $80 million in the second quarter of last year.  Total wholesale gallons sold were 1,374 million, compared to 1,316 million in the second quarter of 2016, an increase of 4.4 percent as a result of growth in the Southwest geography and contribution from the Emerge acquisition.  This includes gallons sold to consignment stores and third-party customers, including independent dealers, fuel distributors and commercial customers. The Partnership earned 10.1 cents per gallon on these volumes, compared to 8.8 cents per gallon a year earlier.

Net loss for the retail segment was $227 million compared to a net loss of $14 million a year ago primarily due to a $320 million charge related to assets held for sale.  Adjusted EBITDA was $127 million, versus $84 million in the second quarter of last year.  Total retail gallons sold increased by 1.4 percent to 650 million gallons as a result of the increased gallons sold across SUN’s operating geography.  The Partnership earned 29.2 cents per gallon on these volumes, compared to 24.0 cents per gallon a year earlier.

Total merchandise sales increased by 5.4 percent from a year ago to $608 million(2), reflecting the contribution from third party acquisitions and new-to-industry locations opened during the last 12 months. Merchandise sales contributed $196 million of gross profit(3) with a retail merchandise margin of 32.1 percent, a decrease of 0.4 percentage points from the second quarter of 2016.

Same-store merchandise sales increased by 1.0 percent during the second quarter, reflecting growth across all of SUN’s convenience store offerings. Same-store gallons decreased by 2.1 percent as a result of weakness throughout SUN’s retail geography, particularly on the East Coast partly offset by increased same-store gallons sold in Hawaii.  In the Texas oil producing regions, same-store merchandise sales increased by 8.5 percent, and same-store gallons increased 8.7 percent.

As of June 30, 2017, SUN operated 1,353 convenience stores and retail fuel outlets along the East Coast, in the Southwest and in Hawaii. Third party wholesale customers and sites totaled 7,937.

SUN’s other recent accomplishments include the following:

  • On April 6, SUN announced the planned divestitur­e of company-operated convenience stores in the continental United States.
    • SUN entered into a definitive asset purchase agreement for the sale of a majority of its company-operated convenience stores to 7-Eleven, Inc. Total consideration in the transaction is $3.3 billion in cash plus fuel, merchandise and other inventories.
    • As part of the transaction, SUN will enter into a 15-year take-or-pay fuel supply agreement with a 7-Eleven, Inc. subsidiary under which SUN will supply approximately 2.2 billion gallons of fuel annually.
  • Also on April 6, SUN retained JP Morgan Securities, LLC to manage the marketing process for the remaining approximately 200 company-operated convenience stores in North and West Texas, New Mexico and Oklahoma in a separate process.

SUN’s segment results and other supplementary data are provided after the financial tables below.

Distribution

On July 26, 2017 the Board of Directors of SUN’s general partner declared a distribution for the second quarter of 2017 of $0.8255 per unit, which corresponds to $3.3020 per unit on an annualized basis.  The distribution will be paid on August 15 to unitholders of record on August 7.

SUN’s distribution coverage ratio for the second quarter was 1.53 times. The distribution coverage ratio on a trailing 12-month basis was 1.03 times.

Liquidity

At June 30, SUN had borrowings against its revolving line of credit of $825 million and other long-term debt of $3.6 billion.  Availability on the revolving credit facility after borrowings and letters of credit commitments was $655 million.  In the second quarter of 2017, SUN did not issue any common units through its at-the-market equity program.  The leverage ratio of debt to Adjusted EBITDA, calculated in accordance with SUN’s credit agreements, including the revolving credit facility and Term Loan A, was 5.97 times at the end of the second quarter.

(1) Adjusted EBITDA and Distributable Cash Flow, as adjusted, are non-GAAP financial measures of performance that have limitations and should not be considered as a substitute for net income. Please refer to the discussion and tables under “Reconciliations of Non-GAAP Measures” later in this news release for a discussion of our use of Adjusted EBITDA and Distributable Cash Flow, as adjusted, and a reconciliation to net income.
(2) Includes $590 million in merchandise sales from discontinued operations.
(3) Includes $191 million in merchandise gross profit from discontinued operations.

Earnings Conference Call

Sunoco LP management will hold a conference call on Wednesday, August 9, at 9:30 a.m. CT (10:30 a.m. ET) to discuss second quarter results and recent developments.  To participate, dial 201-389-0877 approximately 10 minutes early and ask for the Sunoco LP conference call. The call will also be accessible live and for later replay via webcast in the Investor Relations section of Sunoco’s website at www.SunocoLP.com under Events and Presentations.

Sunoco LP (NYSE: SUN) is a master limited partnership that operates 1,353 convenience stores and retail fuel sites and distributes motor fuel to 7,937 convenience stores, independent dealers, commercial customers and distributors located in 30 states. Our parent — Energy Transfer Equity, L.P.(NYSE: ETE) — owns SUN’s general partner and incentive distribution rights.

Forward-Looking Statements

This press release may include certain statements concerning expectations for the future that are forward-looking statements as defined by federal law. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management’s control. An extensive list of factors that can affect future results are discussed in the Partnership’s Annual Report on Form 10-K and other documents filed from time to time with the Securities and Exchange Commission. The Partnership undertakes no obligation to update or revise any forward-looking statement to reflect new information or events.

The information contained in this press release is available on our website at www.SunocoLP.com

Qualified Notice

This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat 100 percent of Sunoco LP’s distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, Sunoco LP’s distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.

Contacts:

Investors:
Scott Grischow
Senior Director
Investor Relations and Treasury
(214) 840-5660
scott.grischow@sunoco.com

Derek Rabe
Senior Analyst
Investor Relations and Finance
(214) 840-5553
derek.rabe@sunoco.com

Media:
Alyson Gomez
Director – Communications
(469) 646-1758
alyson.gomez@sunoco.com

Jeamy Molina
Senior Manager
PR & Communications
(469) 646-1776
jeamy.molina@sunoco.com

SOURCE: Sunoco LP

Sunoco LP president and CEO Robert “Bob” W. Owens to retire; Joe Kim to succeed

Sunoco Executives Cynthia Archer and Boyd Foster Also Retiring

DALLAS, 2017-Jun-24 — /EPR Retail News/ — Sunoco LP (NYSE: SUN) announced today (June 22, 2017) that Robert “Bob” W. Owens, president and chief executive officer has announced his intention to retire from the Partnership as of December 31, 2017, after more than 20 years with Sunoco and its predecessors.  Owens, who joined Sunoco Inc. in 1997, has been serving as president and CEO since 2012.

Effective immediately, Joe Kim, who has been serving as executive vice president and chief development officer for Sunoco since 2015, has been appointed president and chief operating officer.  Owens will continue as CEO until his retirement and will then serve as a consultant to the Partnership through 2019.

Sunoco executives Cynthia Archer, executive vice president and chief marketing officer and Boyd Foster, executive vice president manufacturing and distribution are also retiring from the Partnership effective December 31, 2017.

“We thank Bob for his many years of strategic leadership, which has resulted in an impressive list of accomplishments for both the employees and the unit holders of Sunoco and wish him and his family the best,” said Kelcy Warren, Chairman of Energy Transfer Equity, the entity that owns the general partner of Sunoco. “While we are sad to see Bob go, we are excited for the next generation of leadership at Sunoco to take on larger roles. Joe is an exceptionally talented leader and he has played a significant role in the planned transformation of the Partnership from a retail-based business into a premier nationwide fuel supplier.”

“Additionally, the appointment of Joe as president and COO and Bob continuing as CEO through year-end will ensure an orderly transition as we move through the divestment of our retail operations during the coming months,” added Warren.

Owens joined Sunoco as senior vice president of marketing where he was responsible for Sunoco’s retail network, wholesale marketing and transportation operations, and commercial supply and trading activities for crude oil, refined products, and petrochemicals. Prior to joining Sunoco, he held executive positions with Ultramar Diamond Shamrock Corporation, Amerada Hess Corporation and Mobil Oil Corporation. Owens is a graduate of California Polytechnic State University with a bachelor’s degree in business administration and an MBA from the Kellogg Graduate School of Management at Northwestern University.

Kim has been responsible for the Partnership’s strategic development and planning overseeing both business development and Sunoco’s real estate portfolio. Prior to joining Sunoco, he held various executive positions, including chief operating officer for Pizza Hut and senior vice president- retail strategy and growth for Valero Energy.  Kim began his career with Arthur Andersen.  He is a graduate of Trinity University with a bachelor’s degree in business administration.

Sunoco LP  (NYSE: SUN) is a master limited partnership that operates 1,355 convenience stores and retail fuel sites and distributes motor fuel to 7,825 convenience stores, independent dealers, commercial customers and distributors located in 30 states. SUN’s general partner is a wholly owned subsidiary of Energy Transfer Equity, L.P. (NYSE: ETE). For more information visit sunocolp.com.

Energy Transfer Equity, L.P. (NYSE: ETE) is a master limited partnership that owns the general partner and 100% of the incentive distribution rights (IDRs) of Sunoco LP. For more information visit energytransfer.com.

Cautionary Statement Relevant to Forward-Looking Information

This press release includes forward-looking statements regarding future events. These forward-looking statements are based on SUN’s current plans and expectations and involve a numbers of risks and uncertainties that could cause actual results and events to vary materially from the results and events anticipated or implied by such forward-looking statements. For a further discussion of these risks and uncertainties, please refer to the “Risk Factors” section of SUN’s most recently filed annual report on Form 10-K and in other filings made by SUN with the Securities and Exchange Commission. While Sunoco may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so, even if new information becomes available.

Investors:
Scott Grischow
Senior Director – Investor Relations and Treasury
(214) 840-5660
scott.grischow@sunoco.com

Patrick Graham
Senior Analyst – Investor Relations and Finance
(214) 840-5678
patrick.graham@sunoco.com

Media:
Alyson Gomez
Director – Communications
(469) 646-1758
alyson.gomez@sunoco.com

Energy Transfer
Investor Relations:
Helen Ryoo, Lyndsay Hannah, Brent Ratliff
214-981-0795

Media Relations:
Vicki Granado
214-840-5820

SOURCE: Sunoco LP

Sunoco LP’s Miracle Balloon Fundraising Campaigns raised more than $1.6 million dollars for Children’s Miracle Network Hospitals

DALLAS, 2017-Jun-17 — /EPR Retail News/ — Donations through in-store Miracle Balloon Fundraising Campaigns at Stripes and APlus stores helped raise more than $1.6 million dollars for Children’s Miracle Network Hospitals (CMN Hospitals) around the country.

Since 2000, Stripes and APlus, owned and operated by Sunoco LP, have partnered with CMN Hospitals to raise more than $12 million for sick and injured kids.

“Children’s Miracle Network Hospitals are tremendous assets in our communities and it is an incredible opportunity to work alongside of them,” said Eduardo Pereda, VP of Convenience Brands. “We are extremely grateful for the generosity of our customers and team members who raised more than $1.6 million to help continue to support children and their families during some of the most difficult times in their lives.”

Like all in-store CMN Hospitals fundraisers, 100 percent of funds raised from Sunoco LP campaigns will benefit the community in which they were raised. Those contributions help make miracles happen by funding vital medical care, equipment and therapy programs that save and improve the lives of more than 10 million sick and injured children each year.

“It’s partners like Sunoco LP that really make all the difference in helping kids get the care they need,” said John Lauck, president and CEO, Children’s Miracle Network Hospitals. “We are grateful to all the Stripes and APlus employees and customers who gave so generously during this year’s campaign.”

About Sunoco LP
(NYSE: SUN) is a master limited partnership that operates 1,355 convenience stores and retail fuel sites and distributes motor fuel to 7,825 convenience stores, independent dealers, commercial customers and distributors located in 30 states. SUN’s general partner is a wholly owned subsidiary of Energy Transfer Equity, L.P. (NYSE: ETE).

About Children’s Miracle Network Hospitals
Children’s Miracle Network Hospitals® raises funds and awareness for 170 member hospitals that provide 32 million treatments each year to kids across the U.S. and Canada. Donations stay local to fund critical treatments and healthcare services, pediatric medical equipment and charitable care. Since 1983, Children’s Miracle Network Hospitals has raised more than $5 billion, most of it $1 at a time through the charity’s Miracle Balloon icon. Its various fundraising partners and programs support the nonprofit’s mission to save and improve the lives of as many children as possible. Find out why children’s hospitals need community support, and learn about your member hospital, at CMNHospitals.org and facebook.com/CMNHospitals.

Contact:
Jeamy Molina
jeamy.molina@sunoco.com
469.646.1776

Emily Cawley
ecawley@cmnhospitals.org
801-214-6618

SOURCE: Sunoco LP

Sunoco LP recorded total revenue of $4.4 billion an increase of 36.7 percent in 1Q 2017 vs. same period last year

– Completed the private placement of $300 million in SUN preferred equity to ETE
– Maintained quarterly distribution of 82.55 cents, an increase of 1.0 percent compared to first quarter 2016
– Executed definitive agreement to divest a majority of company-operated convenience stores to 7-Eleven, Inc. for $3.3 billion; transaction includes 15-year take-or-pay fuel supply agreement with 7-Eleven
– Launched sales process for remaining company-operated convenience stores in North and West Texas, New Mexico and Oklahoma
Conference Call Scheduled for 9:30 a.m. CT (10:30 a.m. ET) on Thursday, May 4 

DALLAS, 2017-May-04 — /EPR Retail News/ — Sunoco LP (NYSE: SUN) (“SUN” or the “Partnership”) today (May 3, 2017) announced financial and operating results for the three-month period ended March 31, 2017.

Revenue totaled $4.4 billion, an increase of 36.7 percent, compared to $3.2 billion in the first quarter of 2016. The increase was the result of the average selling price of fuel being 56 cents per gallon higher than last year, additional wholesale gallons sold and increased merchandise sales.

Total gross profit was $503 million, compared to $511 million in the first quarter of 2016.

The key driver of the decrease was lower wholesale motor fuel profits partly offset by increases in retail motor fuel and merchandise profits.

Income from operations was $48 million, versus $92 million in the first quarter of 2016. General and administrative expenses increased $6 million from the first quarter 2016 to $64 million primarily due to increased salary and benefit costs.  Other operating expenses increased $14 million from the first quarter 2016 to $263 million as a result of stores acquired or opened in the last 12 months.

Net income was $1 million, or ($0.22) per diluted unit, versus $62 million, or $0.47 per diluted unit, in the first quarter of 2016.

Adjusted EBITDA (1) for the quarter totaled $155 million, compared with $159 million in the first quarter of 2016.  The unfavorable year-over-year comparison reflects decreased wholesale motor fuel gross profit contribution and increased total operating expenses.

Distributable cash flow (1), as adjusted, was $77 million, compared to $112 million a year ago. This year over year decrease reflects an increase in cash interest expense.

On a weighted-average basis, fuel margin for all gallons sold decreased to 14.5 cents per gallon, compared to 14.7 cents per gallon in the first quarter of 2016.  The decrease was primarily attributable to lower margins in the wholesale segment.

Net income for the wholesale segment was $42 million compared to $87 million a year ago.  Adjusted EBITDA was $95 million, versus $103 million in the first quarter of last year.  Total wholesale gallons sold were 1,313 million, compared to 1,233 million in the first quarter of 2016, an increase of 6.5 percent as a result of growth in both the Southwest geography and unbranded business and contribution from the Emerge acquisition.  This includes gallons sold to consignment stores and third-party customers, including independent dealers, fuel distributors and commercial customers. The Partnership earned 10.6 cents per gallon on these volumes, compared to 11.4 cents per gallon a year earlier.

Net loss for the retail segment was $41 million compared to a net loss of $25 million a year ago.  Adjusted EBITDA was $60 million, versus $56 million in the first quarter of last year.  Total retail gallons sold decreased by 2.1 percent to 595 million gallons as a result of the decreased demand across SUN’s operating geography, particularly along the East Coast.  The Partnership earned 23.1 cents per gallon on these volumes, compared to 21.3 cents per gallon a year earlier.

Total merchandise sales increased by 3.1 percent from a year ago to $540 million, reflecting the contribution from third party acquisitions and new-to-industry locations opened during the last 12 months. Merchandise sales contributed $170 million of gross profit with a retail merchandise margin of 31.6 percent, a decrease of 0.1 percentage points from the first quarter of 2016.

Same-store merchandise sales decreased by 1.1 percent during the first quarter, reflecting weakness in convenience store and restaurant operations in Texas, partly offset by growth in SUN’s East Coast and Hawaiian operations.  Same-store gallons decreased by 5.7 percent as a result of weakness throughout SUN’s retail geography.  In the Texas oil producing regions, same-store merchandise sales increased by 1.6 percent, and same-store gallons increased 1.1 percent.  Both same store merchandise sales and same store fuel sales were impacted from a leap day in the first quarter of last year by approximately 1.1 percent.

As of March 31, 2017, SUN operated 1,355 convenience stores and retail fuel outlets along the East Coast, in the Southwest and in Hawaii. Third party wholesale customers totaled 7,825.

SUN’s other recent accomplishments include the following:

  • On January 18, SUN announced it retained NRC Realty & Capital Advisors, LLC (“NRC”) to assist with strategic alternatives for approximately 100 real estate assets.
  • On March 30, SUN and Energy Transfer Equity, L.P. (NYSE: ETE) (“ETE”) announced the completion of a private placement of $300 million in SUN preferred equity to ETE.
  • On April 6, SUN announced the planned divestiture of company-operated convenience stores in the continental United States.
    • SUN entered into a definitive asset purchase agreement for the sale of a majority of its company-operated convenience stores to 7-Eleven, Inc. Total consideration in the transaction is $3.3 billion in cash plus fuel, merchandise and other inventories.
    • As part of the transaction, SUN will enter into a 15-year take-or-pay fuel supply agreement with a 7-Eleven subsidiary under which SUN will supply approximately 2.2 billion gallons of fuel annually.
    • SUN retained JP Morgan Securities, LLC to manage the marketing process for the remaining approximately 200 company-operated convenience stores in North and West Texas, New Mexico and Oklahoma in a separate process.

SUN’s segment results and other supplementary data are provided after the financial tables below.

Distribution

On April 27, 2017 the Board of Directors of SUN’s general partner declared a distribution for the first quarter of 2017 of $0.8255 per unit, which corresponds to $3.3020 per unit on an annualized basis.  This distribution was unchanged from the fourth quarter 2016 and represented a 1.0 percent increase compared with the first quarter of 2016. The distribution will be paid on May 16 to unitholders of record on May 9.

SUN’s distribution coverage ratio for the first quarter was 0.74 times. The distribution coverage ratio on a trailing 12-month basis was 0.88 times.

Liquidity

At March 31, SUN had borrowings against its revolving line of credit of $761 million and other long-term debt of $3.6 billion.  Availability on the revolving credit facility after borrowings and letters of credit commitments was $718 million.  In the first quarter of 2017, SUN issued 1.3 million common units through its at-the-market equity program, generating net proceeds of $33 million.  The leverage ratio of debt to Adjusted EBITDA, calculated in accordance with SUN’s credit agreements, including the revolving credit facility and Term Loan A, was 6.31 times at the end of the first quarter.

    1. Adjusted EBITDA and distributable cash flow are non-GAAP financial measures of performance that have limitations and should not be considered as a substitute for net income. Please refer to the discussion and tables under “Reconciliations of Non-GAAP Measures” later in this news release for a discussion of our use of Adjusted EBITDA and distributable cash flow, and a reconciliation to net income.

Earnings Conference Call

Sunoco LP management will hold a conference call on Thursday, May 4, at 9:30 a.m. CT (10:30 a.m. ET) to discuss first quarter results and recent developments.  To participate, dial 201-389-0877 approximately 10 minutes early and ask for the Sunoco LP conference call. The call will also be accessible live and for later replay via webcast in the Investor Relations section of Sunoco’s website at www.SunocoLP.com under Events and Presentations.

Sunoco LP (NYSE: SUN) is a master limited partnership that operates 1,355 convenience stores and retail fuel sites and distributes motor fuel to 7,825 convenience stores, independent dealers, commercial customers and distributors located in 30 states. Our parent — Energy Transfer Equity, L.P. (NYSE: ETE) — owns SUN’s general partner and incentive distribution rights.

Forward-Looking Statements

This press release may include certain statements concerning expectations for the future that are forward-looking statements as defined by federal law. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management’s control. An extensive list of factors that can affect future results are discussed in the Partnership’s Annual Report on Form 10-K and other documents filed from time to time with the Securities and Exchange Commission. The Partnership undertakes no obligation to update or revise any forward-looking statement to reflect new information or events.

The information contained in this press release is available on our website at www.SunocoLP.com

Qualified Notice

This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat 100 percent of Sunoco LP’s distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, Sunoco LP’s distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.

SOURCE: Sunoco LP

Contacts

Investors:
Scott Grischow, Senior Director – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com

Patrick Graham, Senior Analyst – Investor Relations and Finance
(214) 840-5678, patrick.graham@sunoco.com

Media:
Alyson Gomez, Director – Communications
(469) 646-1758, alyson.gomez@sunoco.com

Jeff Shields, Communications Manager
(215) 977-6056, jeff.shields@sunoco.com

 

 

Sunoco LP declares quarterly distribution of $0.8255 per common unit for the first quarter of 2017

DALLAS, 2017-May-01 — /EPR Retail News/ — Sunoco LP (NYSE: SUN) (“SUN”) announced that the Board of Directors of its general partner declared a quarterly distribution for the first quarter of 2017 of $0.8255 per common unit, which corresponds to $3.3020 per common unit on an annualized basis.  The first quarter distribution is unchanged from the fourth quarter 2016 distribution and reflects a 1.0 percent increase compared to the distribution for the first quarter of 2016.  The distribution will be paid on May 16, 2017 to common unitholders of record on May 9, 2017.

SUN will release its first quarter 2017 financial and operating results after the market closes on Wednesday, May 3. In conjunction with the news release, management will hold a conference call on Thursday, May 4, at 9:30 a.m. Central Time (10:30 a.m. Eastern Time) to discuss SUN’s results.

By Phone: Dial 201-389-0877 at least 10 minutes before the call. A replay will be available through May 18 by dialing 201-612-7415 and using the conference ID 13661024#.

By Webcast: Connect to the webcast via the Events and Presentations pages of SUN’s Investor Relations website at www.SunocoLP.com. Please log in at least 10 minutes in advance to register and download any necessary software.  A replay will be available shortly after the call.

About Sunoco LP

Sunoco LP (NYSE: SUN) is a master limited partnership that operates approximately 1,345 convenience stores and retail fuel sites and distributes motor fuel to approximately 7,845 convenience stores, independent dealers, commercial customers and distributors located in 30 states. Our parent — Energy Transfer Equity, L.P. (NYSE: ETE) — owns SUN’s general partner and incentive distribution rights.

Qualified Notice

This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat 100 percent of SUN’s distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, SUN’s distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.

Contacts:

Scott Grischow
Senior Director – Investor Relations and Treasury
(214) 840-5660
scott.grischow@sunoco.com

Patrick Graham
Senior Analyst – Investor Relations and Finance
(214) 840-5678
patrick.graham@sunoco.com

SOURCE: Sunoco LP

Sunoco LP to divest a majority of convenience stores to 7-Eleven for $3.3 billion

  • Executes definitive agreement to divest a majority of convenience stores to 7-Eleven for $3.3 billion
  • Includes 15-year take-or-pay fuel supply agreement with 7-Eleven starting with approximately 2.2 billion gallons annually
  • Launches sales process for remaining convenience stores in North and West Texas, New Mexico and Oklahoma
  • Investor call scheduled for 8:00 AM Central Time on Thursday, April 6th 

DALLAS, 2017-Apr-10 — /EPR Retail News/ — Sunoco LP (NYSE: SUN) (“SUN”) today (Apr 06, 2017) announced that it entered into a definitive asset purchase agreement for the sale of a majority of its convenience stores to 7-Eleven, Inc. (“7-Eleven”).

Total consideration in the transaction is $3.3 billion in cash plus fuel, merchandise and other inventories.  SUN expects to use the proceeds to repay indebtedness and for general partnership purposes.

SUN President and Chief Executive Officer Bob Owens stated, “The sale of these retail assets to 7-Eleven is the beginning of an exciting evolution for SUN into a premier nationwide fuel supplier.  Our supply agreement with 7-Eleven provides SUN with a predictable long-term income stream, and this transaction quickly allows SUN to improve its financial profile.”

Assets being sold to 7-Eleven include approximately 1,110 convenience stores in 19 geographic regions primarily along the East Coast and in Texas, and the associated trademarks and intellectual property of the Laredo Taco Company and Stripes.  As part of the transaction, SUN will enter into a 15-year take-or-pay fuel supply agreement with a 7-Eleven subsidiary under which SUN will supply approximately 2.2 billion gallons of fuel annually.  This supply agreement will have guaranteed annual payments to SUN, provides that 7-Eleven will continue to use the Sunoco brand at currently branded Sunoco stores and includes committed growth in future periods.

Approximately 200 convenience stores in North and West Texas, New Mexico and Oklahoma will be sold in a separate process.  SUN’s Aloha Petroleum business unit in Hawaii will continue to operate its highly efficient and integrated business model within SUN.  Likewise, the transaction does not include SUN’s highly successful APlus franchisee-operated stores.

SUN’s transaction with 7-Eleven is the first step in SUN’s strategic shift away from company-operated convenience stores to focus on its industry-leading fuel supply business.  Led by the iconic Sunoco fuel brand and successful APlus franchise, SUN plans to be a leading consolidator in the domestic wholesale fuels business, supplying fuel to a network of more than 8,900 locations of third-party dealers, distributors and other commercial customers, with an enhanced focus on MLP qualifying income. Additionally, the proceeds received in this transaction will be used to further enhance SUN’s credit profile and leverage profile.

This transaction is subject to regulatory clearances and customary closing conditions and is expected to close by the fourth quarter 2017.

J.P. Morgan Securities LLC (“JP Morgan”) served as SUN’s exclusive financial advisor for the transaction.  In addition, SUN has retained JP Morgan to market the approximately 200 remaining convenience stores in North and West Texas, New Mexico and Oklahoma.

Conference Call

Sunoco LP management will hold a conference call on Thursday, April 6, at 8:00 a.m. CT (9:00 a.m. ET) to discuss the transaction.  To participate, dial 201-389-0877 approximately 10 minutes early and ask for the Sunoco LP conference call.

About Sunoco LP

Sunoco LP (NYSE: SUN) is a master limited partnership that operates 1,345 convenience stores and retail fuel sites and distributes motor fuel to 7,845 convenience stores, independent dealers, commercial customers and distributors located in 30 states. Our parent — Energy Transfer Equity, L.P. (NYSE: ETE) — owns SUN’s general partner and incentive distribution rights.

Cautionary Statement Relevant to Forward-Looking Information

This press release includes forward-looking statements regarding future events. These forward-looking statements are based on SUN’s current plans and expectations and involve a numbers of risks and uncertainties that could cause actual results and events to vary materially from the results and events anticipated or implied by such forward-looking statements. For a further discussion of these risks and uncertainties, please refer to the “Risk Factors” section of SUN’s most recently filed annual report on Form 10-K and in other filings made by SUN with the Securities and Exchange Commission.  While Sunoco may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so, even if new information becomes available.

Contacts:
Investors:
Scott Grischow
Senior Director
Investor Relations and Treasury
(214) 840-5660
scott.grischow@sunoco.com

Patrick Graham
Senior Analyst
Investor Relations and Finance
(214) 840-5678
patrick.graham@sunoco.com

Media:
Alyson Gomez
Director – Communications
(469) 646-1758
alyson.gomez@sunoco.com

SOURCE: Sunoco LP

7‑Eleven acquires 1,108 convenience stores from Sunoco LP

World’s Largest Convenience Retailer Acquires 1,108 Convenience Stores

IRVING, TEXAS, 2017-Apr-07 — /EPR Retail News/ — 7‑Eleven, Inc., the premier name and largest chain in the convenience-retailing industry, is pleased to announce it has entered into an asset purchase agreement with Sunoco LP. As part of the agreement, 7‑Eleven will acquire approximately 1,108 convenience stores located in 18 states.

“This acquisition supports our growth strategy in key geographic areas including Florida, mid-Atlantic states, Northeast states, and Central Texas,” said Joe DePinto, President and Chief Executive Officer of 7‑Eleven Inc. “It also provides 7‑Eleven entry into Houston, the 4th largest city in the United States, and a strong presence in Corpus Christi and across South Texas.

7‑Eleven, Inc. has 8,707 stores in the United States and Canada. This acquisition will be one of the largest in 7‑Eleven, Inc.’s history, and it will bring 7‑Eleven, Inc.’s total number of stores to 9,815 in the U.S. and Canada.

The transaction is expected to close in the second half of this year.

About 7‑Eleven, Inc.:

7‑Eleven, Inc. is the premier name and largest chain in the convenience-retailing industry. Based in Irving, Texas, 7‑Eleven® operates, franchises or licenses more than 62,000 stores in 17 countries, including 10,900 in North America. Find out more online at www.7‑Eleven.com, via the 7Rewards® customer loyalty platform on the 7‑Eleven mobile app, or on social media at Facebook, Twitter and Instagram.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Actual results may differ from expectations and, consequently, you should not rely on these forward-looking statements as prediction of future events. 7‑Eleven does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in their expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

Contact: 1-800-255-0711

Source: 7‑Eleven, Inc.