Sunoco (SUN) investor relations material

Executive summary

• Achieved strong Q1 2026 results with net income of $644 million, up 211% year-over-year, and adjusted EBITDA of $867 million, excluding $90 million in one-time transaction expenses and benefiting from a $102 million one-time gain on inventory sales.

• Closed the TanQuid acquisition, making the company Germany's largest independent terminal operator and expanding terminal operations in Germany and Poland, with continued integration of Parkland supporting accretive growth.

• Declared a quarterly distribution of $0.9899 per common unit, a 6.25% increase, marking the sixth consecutive quarterly increase and over 10% growth year-over-year.

• Revenue for Q1 2026 reached $10.69 billion, a 106% increase compared to Q1 2025, with significant growth in fuel and non-fuel sales.

• Distributable Cash Flow, as adjusted, was $535 million for Q1 2026, up from $310 million year-over-year.

Financial highlights

• Adjusted EBITDA reached $867 million, up from $458 million, with distributable cash flow as adjusted at $535 million for Q1 2026.

• Operating income for Q1 2026 was $866 million, up from $296 million in Q1 2025.

• Spent $106 million on growth capital and $93 million on maintenance capital during the quarter; total capital expenditures were $199 million.

• Trailing 12-month coverage ratio was 1.9x; leverage at quarter-end was approximately 4x.

• Cash provided by operating activities was $454 million, up from $156 million year-over-year.

Outlook and guidance

• Expectation for the TanQuid acquisition to be immediately accretive to distributable cash flow per unit in 2026.

• Targeting a multi-year distribution growth rate of at least 5%.

• Maintenance capital expenditures for 2026 are expected to be $400–$450 million, with growth capital at least $600 million.

• Confident in delivering full-year EBITDA guidance even without the one-time inventory gain.

• Management expects ongoing liquidity needs to be met through cash from operations and available credit, with flexibility to issue debt or equity as needed.