SunocoCorp LLC

What they do

SunocoCorp holds Sunoco Class D Units that are economically equivalent to Sunoco's publicly traded common units on a one-for-one basis, and SunocoCorp Manager is controlled by Energy Transfer. Sunoco LP operates midstream assets including over 14,000 miles of pipeline and over 160 terminals, and distributes over 15 billion gallons of motor fuel annually to approximately 11,000 Sunoco and partner branded locations, independent dealers and commercial customers across 32 countries. The October 2025 Parkland acquisition added a fuel distributor, marketer and convenience retailer operating in 26 countries across the Americas, with the Canadian dollar as its functional currency.

Revenue drivers

• Fuel Distribution segment — Largest segment by Adjusted EBITDA: $504 million in Q2 2026, with approximately 4.1 billion gallons sold and a fuel margin of 17.1 cents per gallon.
• Pipeline Systems segment — Adjusted EBITDA of $190 million in Q2 2026 on average throughput of approximately 1.3 million barrels per day.
• Terminals segment — Adjusted EBITDA of $113 million in Q2 2026 on average throughput of approximately 1.1 million barrels per day across over 160 terminals.
• Refinery segment — Adjusted EBITDA of $175 million in Q2 2026 on average throughput of approximately 57 thousand barrels per day.

Recent performance

For the second quarter of 2026, Sunoco LP reported net income of $283 million versus $86 million in the second quarter of 2025, and Adjusted EBITDA of $982 million versus $454 million. Adjusted EBITDA excluding one-time transaction-related expenses was $996 million, and Distributable Cash Flow, as adjusted, was $608 million versus $300 million a year earlier. Quarterly consolidated revenue for SunocoCorp rose from $5.39 billion in the second quarter of 2025 to $14.26 billion in the second quarter of 2026. Fuel Distribution Adjusted EBITDA nearly doubled to $504 million, Pipeline Systems rose to $190 million, Terminals to $113 million, and the Refinery segment contributed $175 million. At June 30, 2026, SUN had approximately $13.3 billion of long-term debt, $2.3 billion of revolving credit facility liquidity remaining, and a leverage ratio of approximately 3.7 times.

Strategy

Growth has come from acquisitions: the October 31, 2025 Parkland transaction for approximately $2.60 billion in cash and 51,517,198 SunocoCorp units, and the January 16, 2026 TanQuid acquisition of 15 German and one Polish fuel terminal for approximately 465 million (about $540 million). SunocoCorp units began trading on the NYSE on November 6, 2025, and Sunoco has committed that for two years after the Parkland close, SunocoCorp unitholders receive per-unit distributions equivalent to Sunoco's. Capital spending in the second quarter of 2026 was $202 million, split between $125 million growth and $77 million maintenance capital, including joint-venture capital. Distributions have increased for seven consecutive quarters and management cites a multi-year distribution growth rate of at least 5%.

Risks

• Dependence on Sunoco — SunocoCorp's only cash-generating assets are the Sunoco Class D Units, so its liabilities and distributions depend entirely on Sunoco's results and financial condition.
• Energy Transfer conflicts — SunocoCorp is managed by SunocoCorp Manager, which is controlled by Energy Transfer, and the governance structure limits the fiduciary duties of SunocoCorp Manager and its affiliates.
• Fuel price and demand — Sunoco's results are exposed to changes in motor fuel prices and demand, including consumer preference for alternative fuels or improved fuel efficiency, and it depends on limited principal suppliers.
• Integration and leverage — The filing flags Sunoco's ability to successfully integrate Parkland, and at June 30, 2026 SUN carried approximately $13.3 billion of long-term debt with a leverage ratio of about 3.7 times.

Outlook

Management increased full year 2026 Adjusted EBITDA guidance by $400 million to a range of $3.5 billion to $3.7 billion, following Q2 2026 net income of $283 million and Adjusted EBITDA of $996 million excluding one-time transaction-related expenses. The second quarter 2026 distribution was declared at $1.0023 per unit, or $4.0092 annualized, up approximately 1.25% sequentially and over 10% year over year, and is the seventh consecutive quarterly increase. The filings also list integration of Parkland, tariff and trade policy, fuel price volatility and the transition to a low carbon economy among forward-looking uncertainties.