Sunoco LPSUN
Sunoco LP Segments Disclosure
Segment Reporting
Description of Segments
Our consolidated financial statements reflect four reportable segments: Fuel Distribution, Pipeline Systems, Terminals, and Refinery.
Fuel Distribution. Our Fuel Distribution segment supplies motor fuel to independently-operated dealer stations, distributors, commission agents and other consumers. Also included in our Fuel Distribution segment is lease income from properties that we lease or sublease, as well as the Partnership’s credit card services, franchise royalties and retail operations in North America and the Greater Caribbean.
Pipeline Systems. Our Pipeline Systems segment includes an integrated pipeline and terminal network comprised of approximately 6,000 miles of refined product pipeline (including the pipeline of J.C. Nolan), approximately 6,000 miles of crude oil pipeline (including the pipelines of ET-S Permian), approximately 2,000 miles of ammonia pipeline and 69 terminals.
Terminals. Our Terminals segment is composed of four transmix processing facilities and 83 terminals (two in Europe, six in Hawaii, nine in Canada, 13 in the Greater Caribbean and 53 in the continental United States).
Refinery. Our Refinery segment is composed of the Burnaby Refinery, which was acquired in the Parkland Acquisition, with an operational capacity of approximately 55,000 barrels per day. The refinery consumes primarily sweet conventional crude oil and sweet synthetic crude oil to produce gasoline, diesel and jet fuel among other products. The refinery meets federal and provincial regulations for lower carbon intensity transportation fuels through a combination of co-processing of bio feedstocks (i.e. canola oil, tallow, tall oil and others) and blending of low-carbon intensity fuels such as bio-diesel, renewable diesel, ethanol and others. Fuel from the refinery is sold primarily through Sunoco-owned retail network in British Columbia (“BC”), directly to Vancouver International Airport, and to commercial and cardlock customers.
Segment Operating Results
The Partnership evaluates performance and allocates resources for all of its reportable segments based on Segment Adjusted EBITDA.
The Partnership’s chief operating decision maker (“CODM”) is its chief operating officer. The CODM uses Segment Adjusted EBITDA to allocate resources (including employees, property, and financial or capital resources) for each segment predominantly in the annual budget and forecasting process. The CODM considers forecast-to-actual variances on a monthly basis when making decisions about allocating capital and personnel to the segments. The CODM also uses Segment Adjusted EBITDA to assess the performance for each segment and in the compensation of certain employees. Assets by segment are not a measure used to assess our performance by the CODM and thus are not reported in our disclosures.
The Partnership’s reportable segments are business units that offer different products and services. The reportable segments are each managed separately because they provide different services and products.
We report Adjusted EBITDA by segment as a measure of segment performance. We define Adjusted EBITDA as net income before net interest expense, income tax expense, depreciation, amortization and accretion expense, non-cash compensation expense, gains and losses on disposal of assets and impairment charges, unrealized gains and losses on commodity derivatives, inventory adjustments, certain foreign currency transaction gains and losses and certain other operating expenses reflected in net income that we do not believe are indicative of ongoing core operations. Inventory valuation 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 tables present financial information by segment for the years ended December 31, 2025, 2024 and 2023.
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Revenues: | |||||||||||||||||
| Fuel Distribution | |||||||||||||||||
| Revenues from external customers | $ | 23,862 | $ | 21,781 | $ | 22,955 | |||||||||||
| Intersegment revenues | 71 | 41 | 31 | ||||||||||||||
| 23,933 | 21,822 | 22,986 | |||||||||||||||
| Pipeline Systems | |||||||||||||||||
| Revenues from external customers | 729 | 562 | 1 | ||||||||||||||
| Intersegment revenues | 22 | 3 | — | ||||||||||||||
| 751 | 565 | 1 | |||||||||||||||
| Terminals | |||||||||||||||||
| Revenues from external customers | 433 | 350 | 112 | ||||||||||||||
| Intersegment revenues | 971 | 985 | 373 | ||||||||||||||
| 1,404 | 1,335 | 485 | |||||||||||||||
| Refinery | |||||||||||||||||
| Revenues from external customers | 177 | — | — | ||||||||||||||
| Intersegment revenues | 297 | — | — | ||||||||||||||
| 474 | — | — | |||||||||||||||
| Eliminations | (1,361) | (1,029) | (404) | ||||||||||||||
| Total | $ | 25,201 | $ | 22,693 | $ | 23,068 | |||||||||||
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Cost of sales: | |||||||||||||||||
| Fuel Distribution | $ | 22,419 | $ | 20,635 | $ | 21,761 | |||||||||||
| Pipeline Systems | 13 | 30 | (2) | ||||||||||||||
| Terminals | 904 | 959 | 348 | ||||||||||||||
| Refinery | 434 | — | — | ||||||||||||||
| Eliminations | (1,361) | (1,029) | (404) | ||||||||||||||
| Total | $ | 22,409 | $ | 20,595 | $ | 21,703 | |||||||||||
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Operating and lease expenses, excluding non-cash unit-based compensation: | |||||||||||||||||
| Fuel Distribution | $ | 492 | $ | 325 | $ | 350 | |||||||||||
| Pipeline Systems | 196 | 136 | 2 | ||||||||||||||
| Terminals | 181 | 150 | 67 | ||||||||||||||
| Refinery | 5 | — | — | ||||||||||||||
| Total | $ | 874 | $ | 611 | $ | 419 | |||||||||||
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| General and administrative expenses, excluding non-cash unit-based compensation: | |||||||||||||||||
| Fuel Distribution | $ | 206 | $ | 88 | $ | 113 | |||||||||||
| Pipeline Systems | 42 | 123 | — | ||||||||||||||
| Terminals | 33 | 55 | 1 | ||||||||||||||
| Refinery | 1 | — | — | ||||||||||||||
| Total | $ | 282 | $ | 266 | $ | 114 | |||||||||||
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
Other(1): | |||||||||||||||||
| Fuel Distribution | $ | (174) | $ | (134) | $ | (103) | |||||||||||
| Pipeline Systems | (218) | (101) | (10) | ||||||||||||||
| Terminals | (13) | (1) | (19) | ||||||||||||||
| Refinery | (6) | — | — | ||||||||||||||
| Total | $ | (411) | $ | (236) | $ | (132) | |||||||||||
(1) Other by segment includes Adjusted EBITDA from unconsolidated affiliates, unrealized gains and losses on commodity derivatives, inventory valuation adjustments and other less significant items, as applicable.
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Segment Adjusted EBITDA: | |||||||||||||||||
| Fuel Distribution | $ | 990 | $ | 908 | $ | 865 | |||||||||||
| Pipeline Systems | 718 | 377 | 11 | ||||||||||||||
| Terminals | 299 | 172 | 88 | ||||||||||||||
| Refinery | 40 | — | — | ||||||||||||||
| Total | $ | 2,047 | $ | 1,457 | $ | 964 | |||||||||||
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Reconciliation of net income to Adjusted EBITDA: | |||||||||||||||||
| Net income | $ | 527 | $ | 874 | $ | 394 | |||||||||||
| Depreciation, amortization and accretion | 688 | 368 | 187 | ||||||||||||||
| Interest expense, net | 541 | 391 | 217 | ||||||||||||||
| Non-cash unit-based compensation expense | 19 | 17 | 17 | ||||||||||||||
| (Gain) loss on disposal of assets and impairment charges | (6) | 45 | (7) | ||||||||||||||
| Loss on extinguishment of debt | 31 | 2 | — | ||||||||||||||
| Unrealized (gains) losses on commodity derivatives | (11) | 12 | (21) | ||||||||||||||
| Inventory valuation adjustments | 156 | 86 | 114 | ||||||||||||||
| Equity in earnings of unconsolidated affiliates | (143) | (60) | (5) | ||||||||||||||
| Adjusted EBITDA related to unconsolidated affiliates | 221 | 101 | 10 | ||||||||||||||
| Gain on West Texas Sale | — | (586) | — | ||||||||||||||
| Other non-cash adjustments | (38) | 32 | 22 | ||||||||||||||
| Income tax expense | 62 | 175 | 36 | ||||||||||||||
| Adjusted EBITDA (consolidated) | $ | 2,047 | $ | 1,457 | $ | 964 | |||||||||||
Additions to property, plant and equipment (excluding acquisitions) by reportable segment were as follows:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Fuel Distribution | $ | 339 | $ | 231 | $ | 182 | |||||||||||
| Pipeline Systems | 87 | 44 | 5 | ||||||||||||||
| Terminals | 124 | 69 | 28 | ||||||||||||||
| Refinery | 27 | — | — | ||||||||||||||
| Total | $ | 577 | $ | 344 | $ | 215 | |||||||||||
The following table shows total revenues by geographic area:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| United States | $ | 22,495 | $ | 22,649 | $ | 23,068 | |||||||||||
| Canada | 1,703 | — | — | ||||||||||||||
| Foreign | 1,003 | 44 | — | ||||||||||||||
| Total | $ | 25,201 | $ | 22,693 | $ | 23,068 | |||||||||||
The following table shows long-lived assets by geographic area:
| December 31, 2025 | December 31, 2024 | ||||||||||
| United States | $ | 9,053 | $ | 7,907 | |||||||
| Canada | 4,268 | — | |||||||||
| Foreign | 1,536 | 244 | |||||||||
| Total | $ | 14,857 | $ | 8,151 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 14, 2025 | |
| 2023 | Feb 16, 2024 | |
| 2022 | Feb 17, 2023 | |
| 2021 | Feb 18, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 21, 2020 | |
| 2018 | Feb 22, 2019 | |
| 2017 | Feb 23, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 26, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.