Sunoco LP Q4 FY2025 earnings call

• Transformative 2025: Closed Parkland transaction, team engaged in integration. Record adjusted EBITDA in Q4 and full-year. - Segment performance: Fuel distribution, pipeline, terminal, and new refining segments all delivered strong results. - 2026 guidance: Adjusted EBITDA range 3.1 to $3,300,000,000; expect to close Tancwood acquisition in Q1, realize $125,000,000 of $250,000,000 synergy target in 2026, planned 50-day refinery maintenance turnaround; maintenance capital $400,000,000 to $450,000,000; at least $600,000,000 of capital projects and acquisitions. - Legacy business resilience: Legacy Sunoco business resilient, all segments performed well in 2025 and expect strong performance in 2026. - Parkland acquisition: Expected to be a home run, contributing to value creation; DCF per common unit continues to grow, credit profile improves. - Positioning: Uniquely positioned as both defensive play and growth story; consolidator with more scale, synergies, and value-creating growth.

Fuel distribution segment: Adjusted EBITDA was $391,000,000 excluding $59,000,000 of transaction expenses, distributed 3,300,000,000 gallons (up 44% vs last quarter and 54% vs Q4 2024), reported margin 17.7¢ per gallon. Pipeline systems segment: Adjusted EBITDA $187,000,000 in Q4, throughput 1,400,000 barrels per day. Terminal segment: Adjusted EBITDA $87,000,000 in Q4, throughput around 715,000 barrels per day. New refining segment: Adjusted EBITDA $41,000,000 excluding $1,000,000 of transaction expenses, reflecting ~2 months of operations post-Parkland transaction.

• Adjusted EBITDA range for 2026 is 3.1 to $3,300,000,000. - Expect to close Tancwood acquisition in Q1. - Aim to realize $125,000,000 of the $250,000,000 annual synergy target in 2026. - Planned 50-day maintenance turnaround at the refinery began in late January. - Maintenance capital expected to be in the $400,000,000 to $450,000,000 range. - At least $600,000,000 of capital projects and acquisitions, including an expected floor for acquisitions. - Minimum 5% annual distribution growth in 2026 and continued growth over multiyear period.

Q: About fuel distribution business demand trending, drivers of margin result, sustainability of margin, and CPG related to synergy target.

A: Austin and others discussed demand trends in different geographies (U.S., Canada, Caribbean), drivers of margin including margin environment, geography differences, and gross profit optimization; margin has evolved higher with acquisition, quarter-to-quarter variability, and focus on fuel profit and EBITDA growth, no specific CPG number targeted but directionally higher.

Q: On infrastructure outlook, pro forma terminalling portfolio post integration and growth opportunities.

A: Karl talked about infrastructure in various geographies, vertical integration opportunity, and more runway for growth through capital projects and M&A.

Q: On bolt-on M&A outlook, whether execution is upside to guide, and impact on SunC dividend.

A: Joe said $500,000,000 annual bolt-on M&A is a floor, can be upside, and SunC dividend distribution expected to continue with minimal corporate income taxes for at least five years due to business investment.

Q: Clarification on bolt-on M&A geography, and impact of greenhouse gases rescission.

A: Joe said bolt-on M&A across whole footprint, best projects win; greenhouse gases rescission has no short-term effect, longer term bullish for refined products, good for Sunoco with complexity.

Q: On distribution growth above 5%, what it takes.

A: Joe said multiyear growth, good position, focus on balance sheet, growth, cash flows, and capital allocation, exact amount not determined yet but number is growing.

Q: On greatest M&A opportunity and gating item.

A: Joe said all of the above, focus on best projects, $500,000,000 bolt-on M&A is a floor, balance sheet in good position.

Q: On synergy target with Parkland.

A: Karl said excited about Parkland, past history of exceeding targets, expect to deliver well north of $125,000,000 synergy target in 2026, confidence in 2026 guidance and beyond