10-Q 1 sun-20220630.htm 10-Q sun-20220630
000155227512/312022Q2false00015522752022-01-012022-06-300001552275sun:CommonUnitsMember2022-07-29xbrli:shares0001552275us-gaap:CommonClassCMember2022-07-2900015522752022-06-30iso4217:USD00015522752021-12-310001552275sun:CommonUnitsMember2022-06-300001552275sun:CommonUnitsMember2021-12-310001552275sun:ClassCUnitsMember2022-06-300001552275sun:ClassCUnitsMember2021-12-310001552275sun:MotorFuelSalesMember2022-04-012022-06-300001552275sun:MotorFuelSalesMember2021-04-012021-06-300001552275sun:MotorFuelSalesMember2022-01-012022-06-300001552275sun:MotorFuelSalesMember2021-01-012021-06-300001552275sun:NonMotorFuelSalesMember2022-04-012022-06-300001552275sun:NonMotorFuelSalesMember2021-04-012021-06-300001552275sun:NonMotorFuelSalesMember2022-01-012022-06-300001552275sun:NonMotorFuelSalesMember2021-01-012021-06-300001552275sun:LeaseIncomeMember2022-04-012022-06-300001552275sun:LeaseIncomeMember2021-04-012021-06-300001552275sun:LeaseIncomeMember2022-01-012022-06-300001552275sun:LeaseIncomeMember2021-01-012021-06-3000015522752022-04-012022-06-3000015522752021-04-012021-06-3000015522752021-01-012021-06-30iso4217:USDxbrli:shares00015522752022-01-012022-03-3100015522752022-03-3100015522752020-12-3100015522752021-01-012021-03-3100015522752021-03-3100015522752021-06-300001552275sun:EnergyTransferOperatingL.P.Membersun:CommonUnitsMember2022-06-300001552275sun:EnergyTransferOperatingL.P.Member2022-04-012022-06-30xbrli:pure0001552275sun:GladieuxCapitalPartnersLLCMember2022-04-012022-04-010001552275sun:GladieuxCapitalPartnersLLCMember2022-04-010001552275sun:GladieuxCapitalPartnersLLCMembersun:WorkingCapitalMember2022-04-010001552275us-gaap:TradeAccountsReceivableMember2022-06-300001552275us-gaap:TradeAccountsReceivableMember2021-12-310001552275us-gaap:CreditCardReceivablesMember2022-06-300001552275us-gaap:CreditCardReceivablesMember2021-12-310001552275sun:VendorReceivablesForRebatesBrandingAndOtherMember2022-06-300001552275sun:VendorReceivablesForRebatesBrandingAndOtherMember2021-12-310001552275sun:OtherReceivablesMember2022-06-300001552275sun:OtherReceivablesMember2021-12-310001552275sun:SalesLeasebackFinancialObligationMember2022-06-300001552275sun:SalesLeasebackFinancialObligationMember2021-12-310001552275us-gaap:RevolvingCreditFacilityMembersun:TwoThousandEighteenRevolverMember2022-06-300001552275us-gaap:RevolvingCreditFacilityMembersun:TwoThousandEighteenRevolverMember2021-12-310001552275sun:FourPointEightSevenFivePercentageSeniorNotesDueTwoThousandTwentyThreeMemberus-gaap:SeniorNotesMember2022-06-300001552275sun:FourPointEightSevenFivePercentageSeniorNotesDueTwoThousandTwentyThreeMemberus-gaap:SeniorNotesMember2021-12-310001552275us-gaap:SeniorNotesMembersun:FivePointFiveZeroZeroPercentageSeniorNotesDueTwoThousandTwentySixMember2022-06-300001552275us-gaap:SeniorNotesMembersun:FivePointFiveZeroZeroPercentageSeniorNotesDueTwoThousandTwentySixMember2021-12-310001552275sun:SixPercentageSeniorNotesDueTwoThousandTwentySevenMemberus-gaap:SeniorNotesMember2022-06-300001552275sun:SixPercentageSeniorNotesDueTwoThousandTwentySevenMemberus-gaap:SeniorNotesMember2021-12-310001552275us-gaap:SeniorNotesMembersun:FivePointEightSevenFivePercentageSeniorNotesDueTwoThousandTwentyEightMember2022-06-300001552275us-gaap:SeniorNotesMembersun:FivePointEightSevenFivePercentageSeniorNotesDueTwoThousandTwentyEightMember2021-12-310001552275sun:AccordionFeatureOfLineOfCreditMember2022-06-300001552275sun:WholesalemotorfuelsalestoaffiliatesMember2022-04-012022-06-300001552275sun:WholesalemotorfuelsalestoaffiliatesMember2021-04-012021-06-300001552275sun:WholesalemotorfuelsalestoaffiliatesMember2022-01-012022-06-300001552275sun:WholesalemotorfuelsalestoaffiliatesMember2021-01-012021-06-300001552275sun:WholesaleMotorFuelMember2022-04-012022-06-300001552275sun:WholesaleMotorFuelMember2021-04-012021-06-300001552275sun:WholesaleMotorFuelMember2022-01-012022-06-300001552275sun:WholesaleMotorFuelMember2021-01-012021-06-300001552275sun:FuelDistributionandMarketingMembersun:DealerRevenueMember2022-04-012022-06-300001552275sun:FuelDistributionandMarketingMembersun:DealerRevenueMember2021-04-012021-06-300001552275sun:FuelDistributionandMarketingMembersun:DealerRevenueMember2022-01-012022-06-300001552275sun:FuelDistributionandMarketingMembersun:DealerRevenueMember2021-01-012021-06-300001552275sun:FuelDistributionandMarketingMembersun:DistributorRevenueMember2022-04-012022-06-300001552275sun:FuelDistributionandMarketingMembersun:DistributorRevenueMember2021-04-012021-06-300001552275sun:FuelDistributionandMarketingMembersun:DistributorRevenueMember2022-01-012022-06-300001552275sun:FuelDistributionandMarketingMembersun:DistributorRevenueMember2021-01-012021-06-300001552275sun:FuelDistributionandMarketingMembersun:UnbrandedWholesaleRevenueMember2022-04-012022-06-300001552275sun:FuelDistributionandMarketingMembersun:UnbrandedWholesaleRevenueMember2021-04-012021-06-300001552275sun:FuelDistributionandMarketingMembersun:UnbrandedWholesaleRevenueMember2022-01-012022-06-300001552275sun:FuelDistributionandMarketingMembersun:UnbrandedWholesaleRevenueMember2021-01-012021-06-300001552275sun:FuelDistributionandMarketingMembersun:CommissionAgentRevenueMember2022-04-012022-06-300001552275sun:FuelDistributionandMarketingMembersun:CommissionAgentRevenueMember2021-04-012021-06-300001552275sun:FuelDistributionandMarketingMembersun:CommissionAgentRevenueMember2022-01-012022-06-300001552275sun:FuelDistributionandMarketingMembersun:CommissionAgentRevenueMember2021-01-012021-06-300001552275sun:FuelDistributionandMarketingMembersun:NonMotorFuelMember2022-04-012022-06-300001552275sun:FuelDistributionandMarketingMembersun:NonMotorFuelMember2021-04-012021-06-300001552275sun:FuelDistributionandMarketingMembersun:NonMotorFuelMember2022-01-012022-06-300001552275sun:FuelDistributionandMarketingMembersun:NonMotorFuelMember2021-01-012021-06-300001552275sun:LeaseIncomeMembersun:FuelDistributionandMarketingMember2022-04-012022-06-300001552275sun:LeaseIncomeMembersun:FuelDistributionandMarketingMember2021-04-012021-06-300001552275sun:LeaseIncomeMembersun:FuelDistributionandMarketingMember2022-01-012022-06-300001552275sun:LeaseIncomeMembersun:FuelDistributionandMarketingMember2021-01-012021-06-300001552275sun:FuelDistributionandMarketingMember2022-04-012022-06-300001552275sun:FuelDistributionandMarketingMember2021-04-012021-06-300001552275sun:FuelDistributionandMarketingMember2022-01-012022-06-300001552275sun:FuelDistributionandMarketingMember2021-01-012021-06-300001552275sun:MotorFuelSalesMembersun:AllOtherMember2022-04-012022-06-300001552275sun:MotorFuelSalesMembersun:AllOtherMember2021-04-012021-06-300001552275sun:MotorFuelSalesMembersun:AllOtherMember2022-01-012022-06-300001552275sun:MotorFuelSalesMembersun:AllOtherMember2021-01-012021-06-300001552275sun:AllOtherMembersun:NonMotorFuelMember2022-04-012022-06-300001552275sun:AllOtherMembersun:NonMotorFuelMember2021-04-012021-06-300001552275sun:AllOtherMembersun:NonMotorFuelMember2022-01-012022-06-300001552275sun:AllOtherMembersun:NonMotorFuelMember2021-01-012021-06-300001552275sun:LeaseIncomeMembersun:AllOtherMember2022-04-012022-06-300001552275sun:LeaseIncomeMembersun:AllOtherMember2021-04-012021-06-300001552275sun:LeaseIncomeMembersun:AllOtherMember2022-01-012022-06-300001552275sun:LeaseIncomeMembersun:AllOtherMember2021-01-012021-06-300001552275sun:AllOtherMember2022-04-012022-06-300001552275sun:AllOtherMember2021-04-012021-06-300001552275sun:AllOtherMember2022-01-012022-06-300001552275sun:AllOtherMember2021-01-012021-06-300001552275srt:SubsidiariesMembersun:ClassCUnitsMember2022-06-300001552275sun:CommonUnitsPublicMember2022-06-300001552275sun:CommonUnitsMember2022-01-012022-06-300001552275sun:CommonUnitsMember2022-04-012022-06-300001552275sun:CommonUnitsMember2021-04-012021-06-300001552275sun:CommonUnitsMember2021-01-012021-06-300001552275us-gaap:SubsequentEventMember2022-08-192022-08-190001552275us-gaap:GeneralPartnerMemberus-gaap:SubsequentEventMember2022-08-192022-08-1900015522752022-05-192022-05-190001552275us-gaap:GeneralPartnerMember2022-05-192022-05-1900015522752022-02-182022-02-180001552275us-gaap:GeneralPartnerMember2022-02-182022-02-18sun:segment0001552275sun:GrossRevenueMembersun:FuelDistributionandMarketingMembersun:MotorFuelSalesMember2022-04-012022-06-300001552275sun:GrossRevenueMembersun:AllOtherMembersun:MotorFuelSalesMember2022-04-012022-06-300001552275sun:GrossRevenueMembersun:MotorFuelSalesMember2022-04-012022-06-300001552275sun:GrossRevenueMembersun:FuelDistributionandMarketingMembersun:MotorFuelSalesMember2021-04-012021-06-300001552275sun:GrossRevenueMembersun:AllOtherMembersun:MotorFuelSalesMember2021-04-012021-06-300001552275sun:GrossRevenueMembersun:MotorFuelSalesMember2021-04-012021-06-300001552275sun:NonMotorFuelSalesMembersun:GrossRevenueMembersun:FuelDistributionandMarketingMember2022-04-012022-06-300001552275sun:NonMotorFuelSalesMembersun:GrossRevenueMembersun:AllOtherMember2022-04-012022-06-300001552275sun:NonMotorFuelSalesMembersun:GrossRevenueMember2022-04-012022-06-300001552275sun:NonMotorFuelSalesMembersun:GrossRevenueMembersun:FuelDistributionandMarketingMember2021-04-012021-06-300001552275sun:NonMotorFuelSalesMembersun:GrossRevenueMembersun:AllOtherMember2021-04-012021-06-300001552275sun:NonMotorFuelSalesMembersun:GrossRevenueMember2021-04-012021-06-300001552275sun:GrossRevenueMembersun:LeaseIncomeMembersun:FuelDistributionandMarketingMember2022-04-012022-06-300001552275sun:GrossRevenueMembersun:LeaseIncomeMembersun:AllOtherMember2022-04-012022-06-300001552275sun:GrossRevenueMembersun:LeaseIncomeMember2022-04-012022-06-300001552275sun:GrossRevenueMembersun:LeaseIncomeMembersun:FuelDistributionandMarketingMember2021-04-012021-06-300001552275sun:GrossRevenueMembersun:LeaseIncomeMembersun:AllOtherMember2021-04-012021-06-300001552275sun:GrossRevenueMembersun:LeaseIncomeMember2021-04-012021-06-300001552275sun:GrossRevenueMembersun:FuelDistributionandMarketingMembersrt:ConsolidationEliminationsMember2022-04-012022-06-300001552275sun:GrossRevenueMembersun:AllOtherMembersrt:ConsolidationEliminationsMember2022-04-012022-06-300001552275sun:GrossRevenueMembersrt:ConsolidationEliminationsMember2022-04-012022-06-300001552275sun:IntersegmentRevenueNotEliminatedMember2022-04-012022-06-300001552275sun:GrossRevenueMembersun:FuelDistributionandMarketingMembersrt:ConsolidationEliminationsMember2021-04-012021-06-300001552275sun:GrossRevenueMembersun:AllOtherMembersrt:ConsolidationEliminationsMember2021-04-012021-06-300001552275sun:GrossRevenueMembersrt:ConsolidationEliminationsMember2021-04-012021-06-300001552275sun:IntersegmentRevenueNotEliminatedMember2021-04-012021-06-300001552275sun:GrossRevenueMembersun:FuelDistributionandMarketingMember2022-04-012022-06-300001552275sun:GrossRevenueMembersun:AllOtherMember2022-04-012022-06-300001552275sun:GrossRevenueMember2022-04-012022-06-300001552275sun:GrossRevenueMembersun:FuelDistributionandMarketingMember2021-04-012021-06-300001552275sun:GrossRevenueMembersun:AllOtherMember2021-04-012021-06-300001552275sun:GrossRevenueMember2021-04-012021-06-300001552275sun:FuelDistributionandMarketingMember2022-06-300001552275sun:AllOtherMember2022-06-300001552275sun:FuelDistributionandMarketingMember2021-12-310001552275sun:AllOtherMember2021-12-310001552275sun:GrossRevenueMembersun:FuelDistributionandMarketingMembersun:MotorFuelSalesMember2022-01-012022-06-300001552275sun:GrossRevenueMembersun:AllOtherMembersun:MotorFuelSalesMember2022-01-012022-06-300001552275sun:GrossRevenueMembersun:MotorFuelSalesMember2022-01-012022-06-300001552275sun:GrossRevenueMembersun:FuelDistributionandMarketingMembersun:MotorFuelSalesMember2021-01-012021-06-300001552275sun:GrossRevenueMembersun:AllOtherMembersun:MotorFuelSalesMember2021-01-012021-06-300001552275sun:GrossRevenueMembersun:MotorFuelSalesMember2021-01-012021-06-300001552275sun:NonMotorFuelSalesMembersun:GrossRevenueMembersun:FuelDistributionandMarketingMember2022-01-012022-06-300001552275sun:NonMotorFuelSalesMembersun:GrossRevenueMembersun:AllOtherMember2022-01-012022-06-300001552275sun:NonMotorFuelSalesMembersun:GrossRevenueMember2022-01-012022-06-300001552275sun:NonMotorFuelSalesMembersun:GrossRevenueMembersun:FuelDistributionandMarketingMember2021-01-012021-06-300001552275sun:NonMotorFuelSalesMembersun:GrossRevenueMembersun:AllOtherMember2021-01-012021-06-300001552275sun:NonMotorFuelSalesMembersun:GrossRevenueMember2021-01-012021-06-300001552275sun:GrossRevenueMembersun:LeaseIncomeMembersun:FuelDistributionandMarketingMember2022-01-012022-06-300001552275sun:GrossRevenueMembersun:LeaseIncomeMembersun:AllOtherMember2022-01-012022-06-300001552275sun:GrossRevenueMembersun:LeaseIncomeMember2022-01-012022-06-300001552275sun:GrossRevenueMembersun:LeaseIncomeMembersun:FuelDistributionandMarketingMember2021-01-012021-06-300001552275sun:GrossRevenueMembersun:LeaseIncomeMembersun:AllOtherMember2021-01-012021-06-300001552275sun:GrossRevenueMembersun:LeaseIncomeMember2021-01-012021-06-300001552275sun:GrossRevenueMembersun:FuelDistributionandMarketingMembersrt:ConsolidationEliminationsMember2022-01-012022-06-300001552275sun:GrossRevenueMembersun:AllOtherMembersrt:ConsolidationEliminationsMember2022-01-012022-06-300001552275sun:GrossRevenueMembersrt:ConsolidationEliminationsMember2022-01-012022-06-300001552275sun:IntersegmentRevenueNotEliminatedMember2022-01-012022-06-300001552275sun:GrossRevenueMembersun:FuelDistributionandMarketingMembersrt:ConsolidationEliminationsMember2021-01-012021-06-300001552275sun:GrossRevenueMembersun:AllOtherMembersrt:ConsolidationEliminationsMember2021-01-012021-06-300001552275sun:GrossRevenueMembersrt:ConsolidationEliminationsMember2021-01-012021-06-300001552275sun:IntersegmentRevenueNotEliminatedMember2021-01-012021-06-300001552275sun:GrossRevenueMembersun:FuelDistributionandMarketingMember2022-01-012022-06-300001552275sun:GrossRevenueMembersun:AllOtherMember2022-01-012022-06-300001552275sun:GrossRevenueMember2022-01-012022-06-300001552275sun:GrossRevenueMembersun:FuelDistributionandMarketingMember2021-01-012021-06-300001552275sun:GrossRevenueMembersun:AllOtherMember2021-01-012021-06-300001552275sun:GrossRevenueMember2021-01-012021-06-30

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended: June 30, 2022
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from             to
Commission File Number: 001-35653
SUNOCO LP
(Exact name of registrant as specified in its charter) 
Delaware30-0740483
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification Number)
8111 Westchester Drive, Suite 400, Dallas, Texas 75225
(Address of principal executive offices, including zip code)
(214) 981-0700
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Units Representing Limited Partner InterestsSUNNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý    No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ý    No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
ý
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging Growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.):    Yes       No  ý
The registrant had 83,763,300 common units representing limited partner interests and 16,410,780 Class C units representing limited partner interests outstanding at July 29, 2022.



SUNOCO LP
FORM 10-Q
TABLE OF CONTENTS
 

i


PART I – FINANCIAL INFORMATION
Item 1. Financial Statements
SUNOCO LP
CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
(unaudited)
June 30,
2022
December 31,
2021
Assets
Current assets:
Cash and cash equivalents$168 $25 
Accounts receivable, net906 526 
Receivables from affiliates13 12 
Inventories, net757 534 
Other current assets334 95 
Total current assets2,178 1,192 
Property and equipment2,652 2,581 
Accumulated depreciation(976)(914)
Property and equipment, net1,676 1,667 
Other assets:
Finance lease right-of-use assets, net9 9 
Operating lease right-of-use assets, net516 517 
Goodwill1,587 1,568 
Intangible assets997 902 
Accumulated amortization(383)(360)
Intangible assets, net614 542 
Other noncurrent assets212 188 
Investment in unconsolidated affiliate131 132 
Total assets$6,923 $5,815 
Liabilities and equity
Current liabilities:
Accounts payable$995 $515 
Accounts payable to affiliates171 59 
Accrued expenses and other current liabilities314 291 
Operating lease current liabilities19 19 
Current maturities of long-term debt 6 
Total current liabilities1,499 890 
Operating lease noncurrent liabilities521 521 
Revolving line of credit869 581 
Long-term debt, net2,669 2,668 
Advances from affiliates118 126 
Deferred tax liability156 114 
Other noncurrent liabilities111 104 
Total liabilities5,943 5,004 
Commitments and contingencies (Note 10)
Equity:
Limited partners:
Common unitholders
(83,762,266 units issued and outstanding as of June 30, 2022 and
83,670,950 units issued and outstanding as of December 31, 2021)
980 811 
Class C unitholders - held by subsidiaries
(16,410,780 units issued and outstanding as of June 30, 2022 and
December 31, 2021)
  
Total equity980 811 
Total liabilities and equity$6,923 $5,815 
 
The accompanying notes are an integral part of these consolidated financial statements.
1


SUNOCO LP
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Dollars in millions, except per unit data)
(unaudited)
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Revenues:
Motor fuel sales
$7,678 $4,292 $12,955 $7,655 
Non motor fuel sales
102 66 192 139 
Lease income
35 34 70 69 
Total revenues7,815 4,392 13,217 7,863 
Cost of sales and operating expenses:
Cost of sales
7,470 4,039 12,442 7,159 
General and administrative
30 27 57 51 
Other operating
83 61 164 122 
Lease expense
15 14 31 29 
Gain on disposal of assets
(5)(8)(5)(8)
Depreciation, amortization and accretion
49 43 96 90 
Total cost of sales and operating expenses7,642 4,176 12,785 7,443 
Operating income173 216 432 420 
Other income (expense):
Interest expense, net(45)(43)(86)(84)
Equity in earnings of unconsolidated affiliate1 1 2 2 
Loss on extinguishment of debt   (7)
Income before income taxes129 174 348 331 
Income tax expense8 8 11 11 
Net income and comprehensive income$121 $166 $337 $320 
Net income per common unit:
Basic
$1.22 $1.76 $3.56 $3.37 
Diluted
$1.20 $1.73 $3.52 $3.33 
Weighted average common units outstanding:
Basic
83,737,613 83,350,567 83,710,409 83,346,719 
Diluted
84,767,972 84,402,867 84,749,895 84,276,640 
Cash distributions per common unit$0.8255 $0.8255 $1.6510 $1.6510 

The accompanying notes are an integral part of these consolidated financial statements.
2


SUNOCO LP
CONSOLIDATED STATEMENTS OF EQUITY
(Dollars in millions)
(unaudited)
Balance at December 31, 2021$811 
Cash distribution to unitholders
(88)
Unit-based compensation
5 
Net income
216 
Balance at March 31, 2022944 
Cash distribution to unitholders
(88)
Unit-based compensation
3 
Net income
121 
Balance at June 30, 2022$980 
Balance at December 31, 2020$632 
Cash distribution to unitholders
(88)
Unit-based compensation
4 
Other
(4)
Net income
154 
Balance at March 31, 2021698 
Cash distribution to unitholders
(88)
Unit-based compensation
3 
Net income
166 
Balance at June 30, 2021$779 
 
The accompanying notes are an integral part of these consolidated financial statements.
3


SUNOCO LP
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in millions)
(unaudited)
Six Months Ended June 30,
20222021
Cash flows from operating activities:
Net income$337 $320 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion96 90 
Amortization of deferred financing fees2 4 
Gain on disposal of assets (5)(8)
Loss on extinguishment of debt  7 
Non-cash unit-based compensation expense8 7 
Deferred income tax42 (1)
Inventory valuation adjustment(121)(159)
Equity in earnings of unconsolidated affiliate(2)(2)
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable, net(341)(199)
Receivables from affiliates(1)3 
Inventories, net6 53 
Other assets(217)(56)
Accounts payable414 263 
Accounts payable to affiliates112 (42)
Accrued expenses and other current liabilities8 1 
Other noncurrent liabilities(1)(6)
Net cash provided by operating activities337 275 
Cash flows from investing activities:
Capital expenditures(55)(48)
Distributions from unconsolidated affiliate in excess of cumulative earnings3 3 
Cash paid for acquisition(264) 
Proceeds from disposal of property and equipment11 14 
Net cash used in investing activities(305)(31)
Cash flows from financing activities:
Payments on long-term debt(1)(439)
Revolver borrowings2,335 851 
Revolver repayments(2,047)(490)
Distributions to unitholders(176)(176)
Net cash provided by (used in) financing activities111 (254)
Net increase (decrease) in cash and cash equivalents143 (10)
Cash and cash equivalents at beginning of period25 97 
Cash and cash equivalents at end of period$168 $87 
Supplemental disclosure of non-cash investing activities:
Change in note payable to affiliate$(6)$6 

The accompanying notes are an integral part of these consolidated financial statements.
4


SUNOCO LP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(unaudited)
1.Organization and Principles of Consolidation
As used in this document, the terms “Partnership,” “SUN,” “we,” “us,” and “our” should be understood to refer to Sunoco LP and our consolidated subsidiaries, unless the context clearly indicates otherwise.
We are a Delaware master limited partnership. We are managed by our general partner, Sunoco GP LLC ( our “General Partner”), which is owned by Energy Transfer LP (“Energy Transfer”). As of June 30, 2022, Energy Transfer owned 100% of the limited liability company interests in our General Partner, 28,463,967 of our common units, which constitutes a 28.4% limited partner interest in us, and all of our incentive distribution rights ("IDRs").
The consolidated financial statements are composed of Sunoco LP, a publicly traded Delaware limited partnership, and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.
On April 1, 2022, we completed the previously announced acquisition of a transmix processing and terminal facility in Huntington, Indiana from Gladieux Capital Partners, LLC for $264 million. The acquisition increased intangible assets and goodwill by $96 million and $19 million, respectively. The remaining $149 million consisted of fixed assets of $72 million and working capital of $77 million.
Management with the assistance of a third party valuation firm, determined the preliminary assessment of fair value of assets and liabilities at the date of the Gladieux Capital Partners, LLC acquisition. We determined the preliminary value of goodwill by giving consideration to various qualitative factors. Management is reviewing the valuation and confirming the results to determine the final purchase price allocation. As a result, adjustments to this preliminary allocation may occur in the future. Goodwill acquired in connection with the Gladieux Capital Partners, LLC acquisition is deductible for tax purposes.
Certain items have been reclassified for presentation purposes to conform to the accounting policies of the consolidated entity. These reclassifications had no material impact on operating income, net income and comprehensive income, the balance sheets or statements of cash flows.
2.Summary of Significant Accounting Policies
Interim Financial Statements
The accompanying interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Pursuant to Regulation S-X, certain information and disclosures normally included in the annual financial statements have been condensed or omitted. The interim consolidated financial statements and notes included herein should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the Securities and Exchange Commission ("SEC") on February 18, 2022.
Significant Accounting Policies
As of June 30, 2022, there have been no changes in the Partnership's significant accounting policies from those described in the Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 18, 2022.
Motor Fuel and Sales Taxes
Certain motor fuel and sales taxes are collected from customers and remitted to governmental agencies either directly by the Partnership or through suppliers. The Partnership’s accounting policy for wholesale direct sales to dealers, distributors and commercial customers is to exclude the collected motor fuel tax from sales and cost of sales.
For retail locations where the Partnership holds inventory, including commission agent locations, motor fuel sales and motor fuel cost of sales include motor fuel taxes. Such amounts were $72 million and $87 million for the three months ended June 30, 2022 and 2021, respectively, and $143 million and $164 million for the six months ended June 30, 2022 and 2021, respectively. Merchandise sales and cost of merchandise sales are reported net of sales tax in the consolidated statements of operations and comprehensive income.

5


3.Accounts Receivable, net
Accounts receivable, net, consisted of the following:
June 30,
2022
December 31,
2021
(in millions)
Accounts receivable, trade$745 $428 
Credit card receivables59 37 
Vendor receivables for rebates and branding43 35 
Other receivables61 28 
Allowance for expected credit losses(2)(2)
Accounts receivable, net$906 $526 
4.Inventories, net 
Fuel inventories are stated at the lower of cost or market using the last-in-first-out (“LIFO”) method. As of June 30, 2022 and December 31, 2021, the Partnership’s fuel inventory balance included lower of cost or market reserves of zero and $121 million, respectively. The fuel inventory replacement cost was $253 million higher than the fuel inventory balance as of June 30, 2022. For the three and six months ended June 30, 2022 and 2021, the Partnership’s consolidated statements of operations and comprehensive income did not include any material amounts of income from the liquidation of LIFO fuel inventory. For the three months ended June 30, 2022 and 2021, the Partnership’s cost of sales included favorable inventory adjustments of $1 million and $59 million, respectively, and for the six months ended June 30, 2022 and 2021, the Partnership’s cost of sales included favorable inventory adjustments of $121 million and $159 million, respectively.
Inventories, net, consisted of the following:
June 30,
2022
December 31,
2021
(in millions)
Fuel$746 $526 
Other11 8 
Inventories, net$757 $534 
5.Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consisted of the following:
June 30,
2022
December 31,
2021
(in millions)
Wage and other employee-related accrued expenses$19 $23 
Accrued tax expense162 152 
Accrued insurance23 22 
Accrued interest expense30 31 
Dealer deposits22 21 
Accrued environmental expense7 7 
Other51 35 
Total$314 $291 
6


6.Long-Term Debt 
Long-term debt consisted of the following:
June 30,
2022
December 31,
2021
(in millions)
Sale leaseback financing obligation $85 $91 
Credit Facility869 581 
6.000% Senior Notes Due 2027
600 600 
5.875% Senior Notes Due 2028
400 400 
4.500% Senior Notes Due 2029
800 800 
4.500% Senior Notes Due 2030
800 800 
Finance leases9 9 
Total debt3,563 3,281 
Less: current maturities 6 
Less: debt issuance costs25 26 
Long-term debt, net$3,538 $3,249 
Revolving Credit Agreement
On April 7, 2022, we entered into a Second Amended and Restated Credit Agreement with Bank of America, N.A., as Administrative Agent, Collateral Agent, Swingline Lender and a letter of credit issuer (the “Credit Facility”). The Credit Facility amended and restated the former revolving credit facility entered into on July 27, 2018 (the "2018 Revolver"). The Credit Facility is a $1.50 billion revolving credit facility, expiring April 7, 2027 (which date may be extended in accordance with the terms of the Credit Facility). The Credit Facility can be increased from time to time upon our written request, subject to certain conditions, up to an additional $500 million.
As of June 30, 2022, the balance on the Credit Facility was $869 million, and $6 million in standby letters of credit were outstanding. The unused availability on the Credit Facility at June 30, 2022 was $0.6 billion. The weighted average interest rate on the total amount outstanding at June 30, 2022 was 3.48%. The Partnership was in compliance with all financial covenants at June 30, 2022.
Fair Value of Debt
The estimated fair value of debt is calculated using Level 2 inputs. The fair value of debt as of June 30, 2022 is estimated to be approximately $3.2 billion, based on outstanding balances as of the end of the period using current interest rates for similar securities. 
7.Other Noncurrent Liabilities
Other noncurrent liabilities consisted of the following:
June 30,
2022
December 31,
2021
 (in millions)
Asset retirement obligations$81 $79 
Accrued environmental expense, long-term12 12 
Other18 13 
Total$111 $104 
8.Related-Party Transactions
We are party to fee-based commercial agreements with various affiliates of Energy Transfer for pipeline, terminalling and storage services. We also have agreements with subsidiaries of Energy Transfer for the purchase and sale of fuel.
Our investment in the J.C. Nolan pipeline (a joint venture with Energy Transfer) was $131 million and $132 million as of June 30, 2022 and December 31, 2021, respectively. In addition, we recorded income on the unconsolidated joint venture of $1 million for both the three months ended June 30, 2022 and 2021 and $2 million for both the six months ended June 30, 2022 and 2021.
7


Summary of Transactions
Related party transactions with affiliates for the three and six months ended June 30, 2022 and 2021 were as follows (in millions):
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Motor fuel sales to affiliates$23 $7 $28 $9 
Bulk fuel purchases from affiliates$703 $419 $1,243 $752 
Significant affiliate balances and activity related to the consolidated balance sheets are as follows:
Net advances from affiliates were $118 million and $126 million as of June 30, 2022 and December 31, 2021, respectively, related to treasury services agreements with Energy Transfer.
Net accounts receivable from affiliates were $13 million and $12 million as of June 30, 2022 and December 31, 2021, respectively, which are primarily related to motor fuel sales to affiliates.
Net accounts payable to affiliates were $171 million and $59 million as of June 30, 2022 and December 31, 2021, respectively, attributable to operational expenses and bulk fuel purchases.
9.Revenue
Disaggregation of Revenue
We operate our business in two primary segments, Fuel Distribution and Marketing and All Other. We disaggregate revenue within the segments by channels.
The following table depicts the disaggregation of revenue by channel within each segment:
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
(in millions)
Fuel Distribution and Marketing Segment
Distributor$3,346 $2,123 $5,753 $3,738 
Dealer1,427 903 2,481 1,582 
Unbranded wholesale2,193 744 3,456 1,412 
Commission agent515 369 918 659 
Non motor fuel sales41 16 82 30 
Lease income32 32 64 65 
Total7,554 4,187 12,754 7,486 
All Other Segment
Motor fuel
197 153 347 264 
Non motor fuel sales61 50 110 109 
Lease income3 2 6 4 
Total261 205 463 377 
Total revenue$7,815 $4,392 $13,217 $7,863 
Contract Balances with Customers
The balances of the Partnership’s contract assets and contract liabilities as of June 30, 2022 and December 31, 2021 were as follows:
June 30, 2022 December 31, 2021
(in millions)
Contract balances
Contract asset$182 $157 
Accounts receivable from contracts with customers$802 $463 
Contract liability$ $ 
8


Costs to Obtain or Fulfill a Contract
For the three and six months ended June 30, 2022, the Partnership recognized $3 million and $10 million, respectively, and $5 million and $9 million for the three and six months ended June 30, 2021, respectively, of amortization on capitalized costs incurred to obtain contracts.
10.Commitments and Contingencies
Litigation
We have at various points and may in the future become involved in various legal proceedings arising out of our operations in the normal course of business. These proceedings would be subject to the uncertainties inherent in any litigation, and we regularly assess the need for accounting recognition or disclosure of these contingencies. We would expect to defend ourselves vigorously in all such matters. Based on currently available information, we believe it is unlikely that the outcome of known matters would have a material adverse impact on our financial condition, results of operations or cash flows.
Lessee Accounting
The details of the Partnership's operating and finance lease liabilities are as follows:
June 30,
Lease Term and Discount Rate20222021
Weighted-average remaining lease term (years)
Operating leases2323
Finance leases2829
Weighted-average discount rate (%)
Operating leases6 %6 %
Finance leases4 %4 %
Six Months Ended June 30,
Other information20222021
(in millions)
Cash paid for amount included in the measurement of lease liabilities
Operating cash flows from operating leases$(24)$(25)
Operating cash flows from finance leases$ $(1)
Financing cash flows from finance leases$ $ 
Leased assets obtained in exchange for new finance lease liabilities$ $9 
Leased assets obtained in exchange for new operating lease liabilities$11 $1 
Maturity of lease liabilities (as of June 30, 2022)
Operating leasesFinance leasesTotal
(in millions)
2022 (remainder)$25 $ $25 
202348  48 
202447  47 
202547  47 
202646  46 
Thereafter783 15 798 
Total lease payment996 15 1,011 
Less: interest456 6 462 
Present value of lease liabilities$540 $9 $549 
Lessor Accounting
The Partnership leases or subleases a portion of its real estate portfolio to third party companies as a stable source of long-term revenue. Our lessor and sublease portfolio consists mainly of operating leases with convenience store operators. At this time, most
9


lessor agreements contain 5-year terms with renewal options to extend and early termination options based on established terms specific to the individual agreement.
11.Income Tax Expense
As a partnership, we are generally not subject to federal income tax and most state income taxes. However, the Partnership conducts certain activities through corporate subsidiaries which are subject to federal and state income taxes.
Our effective tax rate differs from the statutory rate primarily due to Partnership earnings that are not subject to U.S. federal and most state income taxes at the Partnership level. A reconciliation of income tax expense from continuing operations at the U.S. federal statutory rate of 21% to net income tax expense is as follows:
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
(in millions)
Income tax expense at statutory federal rate$27 $37 $73 $69 
Partnership earnings not subject to tax(22)(30)(66)(61)
State and local tax, net of federal benefit2 2 3 3 
Other1 (1)1  
Net income tax expense$8 $8 $11 $11 
12.Equity
As of June 30, 2022, Energy Transfer and its subsidiaries owned 28,463,967 common units, which constitutes a 28.4% limited partner interest in the Partnership. As of June 30, 2022, our wholly-owned consolidated subsidiaries owned 16,410,780 Class C units representing limited partner interests in the Partnership (the “Class C Units”) and the public owned 55,298,299 common units.
Common Units
The change in our outstanding common units for the six months ended June 30, 2022 was as follows: 
Number of Units
Number of common units at December 31, 2021
83,670,950 
Vested phantom units exercised91,316 
Number of common units at June 30, 2022
83,762,266 
Allocation of Net Income
Our Partnership Agreement contains provisions for the allocation of net income and loss to the unitholders. For purposes of maintaining partner capital accounts, the Partnership Agreement specifies that items of income and loss shall be allocated among the partners in accordance with their respective percentage interest. Normal allocations according to percentage interests are made after giving effect to incentive cash distributions, which are allocated 100% to Energy Transfer.

The calculation of net income allocated to the partners was as follows (in millions):
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Attributable to Common Units
Distributions $69 $69 $138 $138 
Distributions less than net income33 78 160 143 
Limited partners' interest in net income$102 $147 $298 $281 
Cash Distributions
Our Partnership Agreement sets forth the calculation used to determine the amount and priority of cash distributions that the common unitholders receive.
10


Cash distributions paid or declared during 2022 were as follows:
Limited Partners
Payment DatePer Unit DistributionTotal Cash DistributionDistribution to IDR Holders
(in millions, except per unit amounts)
August 19, 2022$0.8255 $69 $18 
May 19, 2022$0.8255 $69 $18 
February 18, 2022$0.8255 $69 $18 
 
13.Segment Reporting
Our consolidated financial statements reflect two reportable segments, Fuel Distribution and Marketing and All Other.
We report Adjusted EBITDA by segment as a measure of segment performance. We define Adjusted EBITDA as earnings before net interest expense, income tax expense and depreciation, amortization and accretion expense, non-cash unit-based compensation expense, gains and losses on disposal of assets and non-cash impairment charges, unrealized gains and losses on commodity derivatives, inventory adjustments, and certain other operating expenses reflected in net income that we do not believe are indicative of ongoing core operations. Inventory adjustments that are excluded from the calculation of Adjusted EBITDA represent changes in lower of cost or market reserves on the Partnership's inventory. These amounts are unrealized valuation adjustments applied to fuel volumes remaining in inventory at the end of the period.
The following table presents financial information by segment for the three and six months ended June 30, 2022 and 2021: 
Three Months Ended June 30,
20222021
Fuel Distribution and MarketingAll OtherIntercompany EliminationsTotalsFuel Distribution and MarketingAll OtherIntercompany EliminationsTotals
(in millions)
Revenue
Motor fuel sales$7,481 $197 $7,678 $4,139 $153 $4,292 
Non motor fuel sales41 61 102 16 50 66 
Lease income32 3 35 32 2 34 
Intersegment sales161  (161) 107  (107) 
Total revenue$7,715 $261 $(161)$7,815 $4,294 $205 $(107)4,392 
Net income and comprehensive income$121 $166 
Depreciation, amortization and accretion49 43 
Interest expense, net45 43 
Income tax expense8 8 
Non-cash unit-based compensation expense3 3 
Gain on disposal of assets (5)(8)
Unrealized gain on commodity derivatives(11)(2)
Inventory adjustments(1)(59)
Equity in earnings of unconsolidated affiliate(1)(1)
Adjusted EBITDA related to unconsolidated affiliate3 2 
Other non-cash adjustments3 6 
Adjusted EBITDA$200 $14 $214 $191 $10 $201 
Capital expenditures$23 $6 $29 $28 $2 $30 
Total assets as of June 30, 2022 and
December 31, 2021, respectively
$5,833 $1,090 $6,923 $4,825 $990 $5,815 
________________________________

11


Six Months Ended June 30,
20222021
Fuel Distribution and MarketingAll OtherIntercompany EliminationsTotalsFuel Distribution and MarketingAll OtherIntercompany EliminationsTotals
(in millions)
Revenue
Motor fuel sales$12,608 $347 $12,955 $7,391 $264 $7,655 
Non motor fuel sales82 110 192 30 109 139 
Lease income64 6 70 65 4 69 
Intersegment sales277  (277) 182  (182) 
Total revenue$13,031 $463 $(277)$13,217 $7,668 $377 $(182)$7,863 
Net income and
comprehensive income
$337 $320 
Depreciation, amortization and accretion96 90 
Interest expense, net86 84 
Income tax expense11 11 
Non-cash unit-based compensation expense8 7 
Gain on disposal of assets and impairment charges(5)(8)
Loss on extinguishment of debt 7 
Unrealized gain on commodity derivatives(20)(7)
Inventory adjustments(121)(159)
Equity in earnings of unconsolidated affiliate(2)(2)
Adjusted EBITDA related to unconsolidated affiliate5 4 
Other non-cash adjustments10 11 
Adjusted EBITDA$374 $31 $405 $344 $14 $358 
Capital expenditures$46 $9 $55 $45 $3 $48 
Total assets as of June 30, 2022 and
December 31, 2021, respectively
$5,833 $