Sunoco LPSUN

Sunoco LP Earnings Per Share Disclosure

10-KFiled Feb 19, 20262 min read
Net Income per Common Unit
Net income per common unit is computed by dividing common unitholders’ interest in net income by the weighted average number of outstanding common units. Our net income is allocated to common unitholders in accordance with their respective partnership percentages, after giving effect to any priority income allocations for incentive distributions and distributions on employee unit awards. Earnings in excess of distributions are allocated to common unitholders based on their respective ownership interests. Payments made to our common unitholders are determined in relation to actual distributions declared and are not based on the net income allocations used in the calculation of net income per unit.
In addition to the common units, we identify the IDRs as participating securities and use the two-class method when calculating net income per unit applicable to limited partners, which is based on the weighted average number of common units outstanding during the period. Diluted net income per unit includes the effects of potentially dilutive units on our common units, consisting of unvested phantom units.
A reconciliation of the numerators and denominators of the basic and diluted per unit computations is as follows:
Year Ended December 31,
 202520242023
Net income$527 $874 $394 
Less:
Net income attributable to noncontrolling interests— 8 — 
Incentive distribution rights182 145 77 
Distributions on unvested phantom unit awards7 5 6 
Preferred unitholders’ interest in net income34 — — 
Class D unitholder’s interest in net income(9)— — 
Common unitholders’ interest in net income $313 $716 $311 
Weighted average common units outstanding:   
Basic136,492,204 118,529,390 84,081,083 
Dilutive effect of unvested phantom unit awards706,014 812,648 1,012,414 
Diluted137,198,218 119,342,038 85,093,497 
Net income per common unit:   
Basic$2.29 $6.04 $3.70 
Diluted$2.28 $6.00 $3.65 

Historical Timeline

Fiscal YearFiled
2025Feb 19, 2026Showing above
2024Feb 14, 2025
2023Feb 16, 2024
2022Feb 17, 2023
2021Feb 18, 2022

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

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