Sunoco LP (SUN) 2023 Q3 法說會逐字稿

Greetings, and welcome to Sunoco LP's Third Quarter 2023 Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Scott Grischow, Senior Vice President of Finance and Investor Relations. Thank you. You may begin.

您好，歡迎參加 Sunoco LP 2023 年第三季財報電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。現在我想將會議交給主持人、財務和投資者關係高級副總裁 Scott Grischow。謝謝。你可以開始了。

Thank you, and good morning, everyone. On the call with me this morning are Joe Kim, Sunoco LP's President and Chief Executive Officer; Karl Fails, Chief Operations Officer; Dylan Bramhall, Chief Financial Officer; and other members of the management team.

謝謝大家，大家早安。今天早上與我通話的是 Sunoco LP 總裁兼執行長 Joe Kim； Karl Fails，營運長；迪倫‧布拉姆霍爾 (Dylan Bramhall)，財務長；以及管理團隊的其他成員。

Today's call will contain forward-looking statements that include expectations and assumptions regarding the partnership's future operations and financial performance. Actual results could differ materially, and the partnership undertakes no obligation to update these statements based on subsequent events. Please refer to our earnings release as well as our filings with the SEC for a list of these factors.

今天的電話會議將包含前瞻性聲明，其中包括有關合作夥伴未來營運和財務表現的預期和假設。實際結果可能存在重大差異，合作夥伴不承擔根據後續事件更新這些聲明的義務。請參閱我們的收益發布以及我們向 SEC 提交的文件，以了解這些因素的清單。

During today's call, we will also discuss certain non-GAAP financial measures, including adjusted EBITDA and distributable cash flow as adjusted. Please refer to the Sunoco LP website for a reconciliation of each financial measure.

在今天的電話會議中，我們還將討論某些非公認會計原則財務指標，包括調整後的 EBITDA 和調整後的可分配現金流量。請參閱 Sunoco LP 網站以了解每項財務指標的調節表。

The third quarter brought a continuation of Sunoco's strong financial performance throughout 2023. The partnership generated adjusted EBITDA of $257 million compared to $276 million a year ago. Fuel volumes for the quarter were 2.1 billion gallons, up 7% from the third quarter of last year. Fuel margin on all gallons sold was $0.13 per gallon compared to $0.139 per gallon a year ago. Total third quarter operating expenses were $141 million, an increase of $10 million from the same period last year. This year-over-year increase was attributable to the Peerless and Zenith acquisitions. During the third quarter, we spent $31 million of growth capital and $14 million in maintenance capital. Third quarter distributable cash flow as adjusted was $181 million compared to $196 million in the third quarter of 2022, yielding a current quarter coverage ratio of 2x and a trailing 12-month coverage ratio of 1.9x. On October 20, we declared an $0.842 per unit distribution consistent with last quarter. As you may recall, we increased our distribution by 2% in the first quarter of 2023, and we will determine our next distribution increase next year in the first quarter.

第三季度，Sunoco 在 2023 年繼續保持強勁的財務業績。此次合作產生的調整後 EBITDA 為 2.57 億美元，而一年前為 2.76 億美元。本季燃油量為 21 億加侖，比去年第三季成長 7%。所有銷售加侖的燃油利潤為每加侖 0.13 美元，而一年前為每加侖 0.139 美元。第三季營運費用總額為1.41億美元，比去年同期增加1,000萬美元。這一同比增長歸因於 Peerless 和 Zenith 的收購。第三季度，我們花了 3,100 萬美元的成長資本和 1,400 萬美元的維護資本。調整後的第三季可分配現金流量為 1.81 億美元，而 2022 年第三季為 1.96 億美元，當季覆蓋率為 2 倍，過去 12 個月覆蓋率為 1.9 倍。 10 月 20 日，我們宣布每單位分配 0.842 美元，與上季一致。您可能還記得，我們​​在 2023 年第一季將分配增加了 2%，我們將在明年第一季確定下一次分配增加。

Turning to the balance sheet. At the end of the third quarter, we had $647 million outstanding on our revolving credit facility leaving approximately $847 million of liquidity. Leverage at the end of the quarter was 3.9x. In September, we completed an offering of $500 million of 7% senior notes due 2028. We used the net proceeds from the offering to repay a portion of the outstanding borrowings on our revolving credit facility. This notes offering not only improved our liquidity position, but it also allowed us to achieve a savings in interest expense given the difference between the current cost of borrowing on the revolving credit facility and the fixed rate on the new notes.

轉向資產負債表。截至第三季末，我們的循環信貸額度尚未償還 6.47 億美元，剩餘流動資金約為 8.47 億美元。本季末的槓桿率為 3.9 倍。 9 月，我們完成了 5 億美元、2028 年到期、利率為 7% 的優先票據發行。我們使用發行所得淨收益來償還我們循環信貸額度的部分未償借款。此次票據發行不僅改善了我們的流動性狀況，而且考慮到循環信貸安排的當前借貸成本與新票據的固定利率之間的差異，還使我們能夠節省利息費用。

Finally, as a result of our strong performance year-to-date and our outlook for the remainder of the year, we are increasing our EBITDA guidance for the full year 2023 to be above $935 million. This represents a $20 million increase to the top end of the revised guidance range we issued in May, further demonstrating our ability to continue to grow cash flow year-after-year in any environment. The reliability and free cash flow generation of our operations allows us to remain consistent in our capital allocation strategy and focus on our 3 pillars: first, to maintain a secure distribution with annual growth; second, to protect our balance sheet; and third, to pursue disciplined investment in growth opportunities. We are confident that this framework will continue to deliver strong returns to our unitholders.

最後，由於我們今年迄今的強勁業績以及對今年剩餘時間的展望，我們將 2023 年全年 EBITDA 指引提高至 9.35 億美元以上。這意味著我們在 5 月發布的修訂指導範圍的上限基礎上增加了 2000 萬美元，進一步證明了我們在任何環境下都能夠繼續逐年增長現金流。我們營運的可靠性和自由現金流使我們能夠在資本配置策略上保持一致，並專注於我們的三大支柱：首先，保持年度成長的安全分配；第二，保護我們的資產負債表；第三，對成長機會進行嚴格的投資。我們相信，該框架將繼續為我們的單位持有者帶來豐厚的回報。

With that, I will now turn the call over to Karl to walk through some additional thoughts on our third quarter performance.

現在，我將把電話轉給卡爾，讓他對我們第三季的業績進行一些額外的思考。

Thanks, Scott. Good morning, everyone. We delivered another strong quarter, supported by continued strength in margins, volume growth, expense discipline, efficient operations and accretive acquisitions. When you step back and look at our business, it continues to perform quarter-after-quarter. The fundamentals are sound. We have put ourselves in a solid financial position, and we have the strategies to take advantage of market opportunities.

謝謝，斯科特。大家，早安。在利潤率持續強勁、銷售成長、費用紀律、高效營運和增值收購的支持下，我們又實現了強勁的季度業績。當你退後一步審視我們的業務時，你會發現它每季都在持續表現。基本面是健全的。我們擁有穩健的財務狀況，並且擁有利用市場機會的策略。

Our volumes this quarter were up about 7% versus the third quarter of last year. The continued growth in volume relative to prior years comes from the contribution from our capital deployed, both organic and through acquisitions, as well as demand growth in some geographies. This quarter marks the highest volume quarter in our history and the second consecutive quarter where our volumes were above the $2 billion gallon mark. When you compare this to various reports on U.S. demand, it is clear that we are outpacing the sector and picking up market share, another sign that our growth is delivering tangible results. This is all occurring as we grow in our existing geographies and enter new markets. As we look to the end of the year, we expect that volume in the fourth quarter would see a normal seasonal decline sequentially, but our relative position in the market will remain strong.

我們本季的銷量比去年第三季成長了約 7%。與前幾年相比，銷售量的持續成長來自於我們所部署的資本（包括有機資本和收購）以及某些地區的需求成長的貢獻。本季是我們史上銷售量最高的季度，也是我們連續第二季銷售超過 20 億加侖大關。當您將其與有關美國需求的各種報告進行比較時，很明顯我們正在超越該行業並擴大市場份額，這是我們的成長正在帶來實際成果的另一個跡象。當我們在現有地區發展並進入新市場時，這一切都會發生。展望今年年底，我們預計第四季度的銷量將出現正常的季節性下降，但我們在市場中的相對地位將保持強勁。

With respect to margins. The strong margin performance over the last few years continued in the third quarter as we delivered margins of $0.13 per gallon. There is no extraordinary story to share for this quarter. The continued combination of increased market volatility, higher breakeven margins and our gross profit optimization strategies delivered strong margins even with some rising prices of first half of the quarter. Looking forward to the fourth quarter, we expect the same fundamental factors to remain in place. However, just like with volume, our margins are often seasonally lower when compared to the third quarter. Even with some variability quarter-to-quarter, as we have said many times, when you look at our business over a full year period, we continue to deliver strong and growing results.

關於利潤率。第三季繼續保持過去幾年的強勁利潤表現，我們實現了每加侖 0.13 美元的利潤。本季沒有什麼特別的故事可以分享。儘管本季上半季價格有所上漲，但市場波動加劇、盈虧平衡利潤率提高以及我們的毛利優化策略的持續結合，仍帶來了強勁的利潤率。展望第四季度，我們預期相同的基本因素將持續存在。然而，就像銷售量一樣，與第三季相比，我們的利潤率通常季節性較低。正如我們多次說過的那樣，即使季度與季度之間存在一些變化，當您審視我們全年的業務時，我們仍將繼續提供強勁且不斷增長的業績。

I want to briefly touch on the devastating wildfires experienced on the island of Maui in August. We have 3 sites that were impacted by the fires, and clearly, there has been some additional business impact as a result of reduced travel to the island. Though overall, it is not material to our results. More importantly, we are very grateful that all our employees are safe, though many of them experienced dramatic impacts to their homes and families. We are extremely proud of our team in Hawaii and how they have been able to pivot from worrying about the impacts on their own lives and livelihoods and find ways to help their neighbors and contribute to the community response. Thank you to all of them.

我想簡單談談八月毛伊島發生的毀滅性野火。我們有 3 個地點受到火災影響，顯然，由於前往島上的旅行減少，也對業務產生了一些額外的影響。雖然總體而言，這對我們的結果並不重要。更重要的是，我們非常感謝所有員工都很安全，儘管他們中的許多人的家庭和家人都經歷了巨大的影響。我們為我們在夏威夷的團隊感到非常自豪，他們能夠擺脫對自己生活和生計影響的擔憂，找到幫助鄰居並為社區應對工作做出貢獻的方法。感謝他們所有人。

Turning to expenses. Consistent discipline in managing our expenses remains one of our core strengths, and our third quarter results firmly demonstrate that as they were basically flat to the second quarter. Even with the increase in our EBITDA guidance for the full year, we expect our expenses to be in the range that we shared in May.

轉向開支。管理費用的一貫紀律仍然是我們的核心優勢之一，我們第三季的業績充分證明了這一點，因為它們與第二季基本持平。即使我們全年 EBITDA 指引有所增加，我們預計我們的支出仍將在 5 月分享的範圍內。

Moving on to maintenance and growth capital. Both of these also remain in line with our revised 2023 guidance we provided in May. If we look at our overall growth profile, we have deployed approximately $1.3 billion of growth, acquisition and working capital since the beginning of 2021. Our growth strategy has been focused on adding fuel distribution and midstream assets. On the acquisition side, we have been able to identify businesses that fit into our strategy and execute on those results. We find businesses where we can add value to the fuel supply chain, grow volume, reduce supply costs or expand margin. We optimize expenses and utilize our balance sheet and capital discipline to invest in the acquired businesses in ways that unlock value. We look at integrating our fuel distribution business with midstream assets, even where that might appear to be a step out like our transmix or Puerto Rico acquisitions, at the core, the strategy is the same.

轉向維護和成長資本。這兩項也與我們 5 月提供的修訂後的 2023 年指引保持一致。如果我們看看我們的整體成長概況，自 2021 年初以來，我們已經部署了約 13 億美元的成長、收購和營運資金。我們的成長策略一直專注於增加燃料分銷和中游資產。在收購方面，我們已經能夠確定符合我們策略的業務並根據這些結果執行。我們尋找可以為燃料供應鏈增加價值、增加產量、降低供應成本或擴大利潤的企業。我們優化開支，並利用我們的資產負債表和資本紀律，以釋放價值的方式投資於所收購的業務。我們著眼於將我們的燃料分銷業務與中游資產整合起來，即使這看起來像是我們的 Transmix 或波多黎各收購那樣的一步，但其核心策略是相同的。

I already talked about how we are growing our fuel volume. We are also now one of the largest refined product terminal operators in the United States and the largest transmix operator. These represent high-quality infrastructure assets that will continue to have value for decades to come in any energy transition scenario, while also supporting our growing fuel distribution portfolio. Simply put, our acquisitions and subsequent operational results speak for themselves.

我已經談到了我們如何增加燃料量。我們現在也是美國最大的成品油碼頭營運商和最大的混合運輸業者之一。這些代表了高品質的基礎設施資產，在未來幾十年的任何能源轉型場景中都將繼續具有價值，同時也支持我們不斷增長的燃料分銷組合。簡而言之，我們的收購和隨後的營運表現不言自明。

Before turning the time over to Joe, I will end on this. Sunoco remains a growth company. I talk a lot about the stability of our base business, the strong market foundation, our expense discipline and gross profit optimization. Ultimately, those are all tools that both deliver results in our current business and enable us to continue to grow. We will do that through investing in high-return organic projects and focusing on making accretive acquisitions at attractive transaction multiples, which will deliver immediate results for our stakeholders and ultimately drive continued appreciation in our unit price. Joe?

在把時間交給喬之前，我將就此結束。 Sunoco 仍然是一家成長型公司。我談了很多關於我們基礎業務的穩定性、強大的市場基礎、我們的費用紀律和毛利優化。最終，這些工具都可以為我們目前的業務帶來成果，並使我們能夠繼續發展。我們將透過投資高回報的有機項目並專注於以有吸引力的交易倍數進行增值收購來實現這一目標，這將為我們的利益相關者帶來立竿見影的成果，並最終推動我們的單價持續升值。喬？

Thanks, Karl. Good morning, everyone. We delivered a very strong third quarter. Although 2023 is not quite over, I want to provide some perspective on this year as a whole.

謝謝，卡爾。大家，早安。我們第三季的業績非常強勁。雖然 2023 年還沒有完全結束，但我想提供一些對今年整體的看法。

On a macro level, fuel distribution has remained highly attractive within the energy sector. The combination of higher breakeven margins and commodity volatility has supported strong earnings for select companies that can optimize gross profit and manage expenses. Obviously, this is what Sunoco does well. In addition, our growth in the terminal business has enhanced our overall portfolio, providing further stability and growth opportunities. As a result, we're on pace for another record year. As Scott mentioned, we increased our EBITDA guidance for the full year 2023. We expect more of the same in 2024. This December, we will provide a new investor presentation, which will include our formal 2024 guidance and business outlook.

從宏觀層面來看，燃料分銷在能源領域仍極具吸引力。較高的損益平衡利潤率和大宗商品波動性相結合，為部分能夠優化毛利和管理費用的公司提供了強勁的獲利支撐。顯然，這正是Sunoco擅長的地方。此外，我們碼頭業務的成長增強了我們的整體投資組合，提供了進一步的穩定性和成長機會。因此，我們有望再創紀錄的一年。正如斯科特所提到的，我們提高了2023 年全年EBITDA 指導。我們預計2024 年會有更多相同的情況。今年12 月，我們將提供新的投資者演示，其中包括我們正式的2024 年指導和業務前景。

I'd like to preview a few key themes. We expect to grow and have another strong year in 2024. We expect industry fundamentals to remain supportive, and we expect the continuation of our proven track record of optimizing our business in various macro environments. Regardless of one's outlook on fuel demand, inflation recession risk and geopolitical uncertainty, we expect our stable portfolio to deliver strong results in various environments. With our increasing cash flow, we expect to grow both organically and through acquisition, the opportunity set remains ample and attractive. And finally, we're in a position to increase our distribution again next year. All of this while maintaining strong coverage and leverage ratios.

我想預覽幾個關鍵主題。我們預計將在 2024 年實現成長並迎來另一個強勁的一年。我們預計行業基本面將保持支援性，並且我們預計將繼續保持在各種宏觀環境下優化業務的良好記錄。無論燃料需求、通膨衰退風險和地緣政治不確定性的前景如何，我們預計我們穩定的投資組合將在各種環境下帶來強勁的業績。隨著現金流的增加，我們預計將透過有機成長和收購實現成長，機會仍然充足且有吸引力。最後，我們明年有能力再次增加我們的分銷。所有這一切同時保持強勁的覆蓋率和槓桿率。

Operator, that concludes our prepared remarks. You may open the line for questions.

接線員，我們準備好的發言到此結束。您可以開啟提問熱線。

(Operator Instructions) Our first question comes from Theresa Chen with Barclays.

（操作員說明）我們的第一個問題來自巴克萊銀行的Theresa Chen。

I wanted to go back to the comments about Sunoco being and remaining a growth company. Karl, to your comments about gaining market share in these tumultuous volatile markets. Can you talk about if this is primarily driven by the acquisitions? Or how have you been able to organically grow market share?

我想回到關於 Sunoco 是並且仍然是一家成長型公司的評論。卡爾，對於您關於在這些動盪不安的市場中獲得市場份額的評論。您能談談這是否主要是由收購驅動的嗎？或者你是如何有機地增加市場佔有率的？

Theresa, thanks for the question. And if you think about the components and kind of the contributions to our market share growth, I think you hit on the 2 biggest. So from an acquisition standpoint, clearly, the biggest difference in volume this quarter -- third quarter this year versus third quarter last year is our acquisition of Peerless at the end of last year. But in addition, there are investments that we've made both in growth capital, and I'd say generically in working capital in growing our business. And that's signing new customers to long-term agreements and then I think finding opportunities to take advantage of market demand, whether that's through consolidating our supply and selling that through various wholesale channels and coupling that with additional branding growth where we spend growth capital. So it's really a combination of both of those. I'd say probably a little more towards the acquisitions, but I would not discount the growth that we've had coming from the investments in growth capital and working capital.

特蕾莎，謝謝你的提問。如果你考慮一下對我們市場份額成長的貢獻的組成部分和類型，我認為你會發現其中第二大的。因此，從收購的角度來看，顯然，本季（今年第三季與去年第三季）交易量的最大差異是我們在去年年底收購了 Peerless。但除此之外，我們也對成長資本進行了投資，我想說的是，一般來說，我們在發展業務的營運資本方面進行了投資。這就是與新客戶簽訂長期協議，然後我認為尋找機會利用市場需求，無論是透過整合我們的供應並透過各種批發管道銷售，還是與我們花費成長資本的額外品牌成長相結合。所以它實際上是兩者的結合。我想說可能更多的是收購，但我不會低估我們來自成長資本和營運資本投資的成長。

Got it. And on the M&A landscape, can you talk about what you're seeing as far as evolution of valuation assets coming to market that you're interested in? How is that changing? And particularly to midstream assets outside of wholesale distribution on the infrastructure side, are there opportunities where it makes sense to invest along with your parent?

知道了。在併購領域，您能談談您所看到的您感興趣的估值資產的演變嗎？這種情況有何變化？特別是對於基礎設施方面批發分銷之外的中游資產，是否有與母公司一起投資的機會？

Theresa, this is Joe. Assessing the M&A landscape, I would probably put it this way. I know for -- probably for the last 2 or 3 years, I've said pretty much the same thing that the opportunities out there looks robust. Looking forward, probably to this year and to next year, I would expect it to be exactly the same or maybe even better. So the situation that we're in right now is I think people like Sunoco with a strong balance sheet, we bring synergies to the table. I think we're very well situated whenever opportunities come up. And trying to separate out between fuel distribution and midstream, we like both sectors. And some of the acquisitions we've done actually is not one or the other, it's actually both. So we're equally interested in both. I think if there's an opportunity that pops up Sunoco alone or with Energy Transfer, we're in a really good position to take advantage of that. And when the right opportunity comes up, we'll take advantage of it.

特蕾莎，這是喬。評估併購情勢，我可能會這樣說。我知道——可能在過去的兩三年裡，我說過幾乎同樣的話，那就是那裡的機會看起來很強大。展望未來，可能是今年和明年，我預期它會完全相同，甚至更好。所以我們現在所處的情況是，我認為像太陽石油公司這樣擁有強大資產負債表的人，我們可以帶來協同效應。我認為只要機會出現，我們就處於有利位置。並試圖將燃料分銷和中游區分開來，我們喜歡這兩個行業。我們所做的收購有些其實不是兩者之一，而是兩者兼而有之。所以我們對兩者都同樣感興趣。我認為，如果有機會單獨出現 Sunoco 或與 Energy Transfer 合作，我們就處於充分利用這一機會的有利位置。當合適的機會出現時，我們會充分利用它。

Our next question comes from Spiro Dounis with Citi.

我們的下一個問題來自花旗銀行的 Spiro Dounis。

Joe, let's come back to your comment around the distribution increase. You sound pretty constructive once again as we head into next year. And so just wondering if you could remind us some of the factors that you and the Board will be looking at when you determine what the right size of that distribution increase could be?

喬，讓我們回到您對分配增加的評論。當我們進入明年時，你聽起來再次很有建設性。因此，我想知道您是否可以提醒我們，當您確定分配增加的正確規模時，您和董事會將考慮的一些因素？

Spiro, this is Scott. I'll take that one and maybe Joe can follow up if necessary. But I think there's really 3 factors primarily that come into play when we evaluate the distribution and increases moving forward. And those are really staying true to our capital allocation strategy, right? We want to ensure surety of the distribution moving forward. We want to continue to protect the balance sheet and operate at or below our long-term leverage target. And we want to be in a continued position to grow the company. So I think those are the 3 primary factors. And then subsequent to that, I think we want to ensure ongoing growth opportunities in the distribution, right? So sizing it to where each year, we can continue to evaluate future growth opportunities and distribution increases. As Joe said, we're in a position to -- with our announcement in 2024 to talk about another distribution increase. And I think as we sit here today, you should expect something at or above the 2% that we announced earlier this year.

斯皮羅，這是史考特。我會接受那個，也許喬可以在必要時跟進。但我認為，當我們評估分佈和未來的成長時，實際上主要有 3 個因素發揮作用。這些確實符合我們的資本配置策略，對嗎？我們希望確保分發的順利進行。我們希望繼續保護資產負債表，並在等於或低於我們的長期槓桿目標的情況下運作。我們希望能夠持續發展公司。所以我認為這是三個主要因素。接下來，我認為我們希望確保發行中持續的成長機會，對吧？因此，每年調整規模後，我們可以繼續評估未來的成長機會和分配增加。正如 Joe 所說，我們有能力在 2024 年宣布再次增加發行量。我認為，當我們今天坐在這裡時，您應該期待我們今年早些時候宣布的 2% 或更高。

Second question, maybe just on Peerless. Just curious if you guys can update us on any potential opportunities coming out of that asset. I think you've owned it for almost a year now, and it sounds like you're pretty excited about what you'd be able to sort of string out of there under your new ownership. So one, any update there? And as we think about the size and magnitude, whether it be CapEx or EBITDA contribution, how should we be thinking about that?

第二個問題，也許就在絕世上。只是好奇你們能否向我們介紹該資產帶來的任何潛在機會的最新情況。我想你已經擁有它快一年了，聽起來你對在新所有權下能夠從那裡得到什麼感到非常興奮。那麼，有更新嗎？當我們考慮規模和幅度時，無論是資本支出還是 EBITDA 貢獻，我們應該如何考慮？

Yes. Spiro, this is Karl. That asset was, call it, roughly somewhere in the 10 to low teen EBITDA when we purchased it. And we've already been able to increase that really through deploying working capital, optimizing our supply, spending some capital. We've introduced the Sunoco brand to the island. So we're very happy with the results we've achieved and what the team down there has done with kind of our strategy and our balance sheet and our ability to deploy capital. From the overall company standpoint, even doubling that business down there isn't super material, but we think it's more an example of how we're looking at continued growth as we go into new geographies that we're not just going to live with an acquisition that we make that we're going to use that as a base and a foundation for further growth. So I don't know that we have a growth plan I can share with you that's going to materially change our profile in the Caribbean. But clearly, we're going to continue to grow and look for opportunities, whether that be acquisitions or deploying -- continuing to deploy growth capital.

是的。斯皮羅，這是卡爾。當我們購買該資產時，該資產的 EBITDA 大約在 10 到 10 左右。我們已經能夠透過部署營運資金、優化我們的供應、花費一些資本來真正增加這一點。我們已將 Sunoco 品牌引入島上。因此，我們對所取得的成果以及團隊在我們的策略、資產負債表以及資本部署能力所做的工作感到非常滿意。從公司整體的角度來看，即使業務量增加一倍也不是超級重要，但我們認為這更多是一個例子，說明我們在進入新的地區時如何看待持續增長，而我們不僅僅要適應新的地區我們進行的一項收購，我們將利用它作為進一步成長的基礎和基礎。因此，我不知道我們是否有一個可以與您分享的成長計劃，該計劃將極大地改變我們在加勒比地區的形象。但顯然，我們將繼續成長並尋找機會，無論是收購還是部署——繼續部署成長資本。

(Operator Instructions) Our next question comes from John Royall with JPMorgan.

（操作員說明）我們的下一個問題來自摩根大通的 John Royall。

So my first question is you started the year with a $0.12 view on fuel margin. and you're tracking much closer to $0.13 now and maybe a little bit ticking down in 4Q. But your commentary at the time when you put out the guidance was understandably about the relationship between margin and volume. If you were higher on margin, you'd probably be lower on volume. And clearly, you're a good amount higher on both. So my question is just high level. What do you think has led to the better-than-expected environment in margin? And how much of it do you think is sustainable such that maybe we should expect sort of closer to a $0.13 level going forward, for example?

所以我的第一個問題是，今年開始，您對燃油利潤的看法是 0.12 美元。現在您的價格更接近 0.13 美元，第四季可能會略有下降。但是，當您發布指導意見時，您的評論是關於利潤和交易量之間的關係，這是可以理解的。如果你的利潤率較高，那麼你的交易量可能會較低。顯然，你在這兩方面都高得多。所以我的問題只是高水準的。您認為是什麼導致了利潤率環境好於預期？您認為其中有多少是可持續的，例如，也許我們應該預期未來會接近 0.13 美元的水平？

Yes, John, thanks for the question. It's definitely something that we think about and I think is worth highlighting on our results. So going back to last year, when we put our guidance together, we did do, as you said, link the volume and margin together and said, hey, let's really look at gross profit. And then we said for each individual component of that, we said, hey, we think this is the fat part of the curve. And as we fast forward to where we are today, I think that relationship continues. But if you go down a level, I think it's insightful to -- it kind of adds to a comment that Joe made in his prepared remarks about select companies being able to take advantage of certain market conditions. So the relationship between volume and margin really is a market-related phenomenon, right, where if volumes are flat to declining, that's going to provide support for higher breakeven margins and then things like inflation or supply chain problems or some of the things we've seen over the last few years contribute to that higher breakeven margin. That's remained true this year, right? If you look at most market data, whether it's EIA or other sources of demand. Overall, demand this year is flat to maybe even more recently, it's slightly below last year. So that provides continued support on the margin side. With our scale, we're able to take advantage of that higher breakeven margin. And then the thing that we've delivered on, probably in excess of what our original guide was last year is our growth. And so I talked about in my prepared remarks, and I think Theresa's question was really about how do we -- where does that growth and market share come from? And so that's where our added volume isn't coming from some tailwind in the market. It's really due to us deploying capital and growing and then we're able to take advantage of that higher breakeven margin to really outdeliver in both areas.

是的，約翰，謝謝你的提問。這絕對是我們考慮的事情，我認為值得在我們的結果中強調。因此，回到去年，當我們將指導意見放在一起時，正如您所說，我們確實將銷量和利潤率聯繫在一起，並說，嘿，讓我們真正看看毛利。然後我們說，對於其中的每個單獨組成部分，我們說，嘿，我們認為這是曲線的脂肪部分。當我們快進到今天的位置時，我認為這種關係仍在繼續。但如果你降低一個層次，我認為這是有洞察力的——這有點增加了喬在他準備好的評論中關於特定公司能夠利用某些市場條件的評論。因此，銷量和利潤率之間的關係確實是一種與市場相關的現象，對吧，如果銷量持平甚至下降，這將為更高的盈虧平衡利潤率以及通貨膨脹或供應鏈問題或我們的一些問題提供支援。在過去幾年我們看到了更高的損益平衡利潤率的貢獻。今年仍然如此，對嗎？如果你看一下大多數市場數據，無論是 EIA 還是其他需求來源。整體而言，今年的需求持平，甚至最近可能略低於去年。因此，這為保證金方面提供了持續的支援。憑藉我們的規模，我們能夠利用更高的損益兩平利潤。然後我們所交付的東西，可能超過我們去年最初的指南，就是我們的成長。所以我在準備好的發言中談到了這一點，我認為特蕾莎的問題實際上是關於我們如何——成長和市場份額從何而來？因此，我們增加的銷售量並不是來自市場的一些推動力。這實際上是由於我們部署資本和成長，然後我們能夠利用更高的損益平衡利潤率在這兩個領域真正實現超額交付。

And Karl, you answered my second question without even getting asked, so I will turn it over.

卡爾，你甚至沒有被問到就回答了我的第二個問題，所以我會把它翻過來。

Our next question comes from Selman Akyol with Stifel.

我們的下一個問題來自 Selman Akyol 和 Stifel。

I guess I just wanted to follow up on Spiro's questions in terms of sort of return of capital. A couple of questions there. Number one is, when you -- Scott, you outlined the things you consider, I was just curious, do you guys or the Board have a goal or what you think the appropriate coverage ratio is to run this business with?

我想我只是想跟進斯皮羅關於資本返還的問題。有幾個問題。第一是，當你——斯科特，你概述了你考慮的事情時，我只是很好奇，你們或董事會是否有一個目標，或者你認為經營這項業務的適當覆蓋率是多少？

Yes. Selman, we've talked as part of our capital allocation strategy to be at or above 1.4x on the coverage ratio. So that's the general area that we're kind of targeting for the long term and where we'd like to see the coverage and how we think about any distribution increases.

是的。 Selman，我們已經說過，作為我們資本配置策略的一部分，覆蓋率應達到或高於 1.4 倍。這就是我們長期目標的整體領域，我們希望看到覆蓋範圍以及我們如何看待任何分配的增加。

Got it. And then also within there, when you guys talk with the Board, is there consideration of any repurchases?

知道了。然後，當你們與董事會交談時，是否考慮進行任何回購？

Buybacks have obviously been a part of a return of capital discussion. I think we see a lot of options to create unitholder value, but view distribution increases is providing flexibility to our unitholders and ensuring confidence in the future. It doesn't mean we haven't contemplated buybacks in the past. As you know, we did do one as part of the 7-Eleven transaction proceeds back in 2018. So they have entered the discussion, but we see distribution increases as providing the biggest return, and I think the most confidence in our growth ability.

回購顯然是資本回報討論的一部分。我認為我們看到了很多創造單位持有人價值的選擇，但認為分配增加為我們的單位持有人提供了靈活性並確保了對未來的信心。這並不意味著我們過去沒有考慮過回購。如你所知，我們確實在 2018 年做了一個作為 7-11 交易收益的一部分。所以他們已經進入討論，但我們認為分銷增加提供了最大的回報，我認為對我們的成長能力最有信心。

Selman, this is Joe. I'll add one other thing to what Scott said is also, we like our growth potential. Obviously, this is a balanced approach between secure and growing distributions and maintaining a really strong balance sheet. But just as important as other too is that we look at the landscape and we see growth opportunities, both from acquisition and from an organic capital standpoint. And we think that we can do that at a reasonable value with significant synergies. So we think we can create value for our stakeholders on that particular area.

塞爾曼，這是喬。我還要在斯科特所說的基礎上補充另一件事，我們喜歡我們的成長潛力。顯然，這是安全和不斷增長的分配與維持真正強大的資產負債表之間的平衡方法。但與其他因素同樣重要的是，我們從收購和有機資本的角度審視情勢，看到成長機會。我們認為我們可以以合理的價值實現這一目標，並產生顯著的協同效應。因此，我們認為我們可以在該特定領域為利害關係人創造價值。

Got it. And then let me just ask this and -- if I look back over your balance sheet, and I mean, and I go back to like '21, you guys had cash less than $100 million consistently, even as I go back over the model back to '15. As I look back over the last several quarters, you're running cash well above that, and you ended this quarter with $0.25 billion in cash. Your receivables are up nicely as well. Is there something you guys want to hang on to more cash? Or is there something changing in the business? Is there any thoughts on just by all the cash on the balance sheet?

知道了。然後讓我問這個，如果我回顧一下你們的資產負債表，我的意思是，我回到 21 年，你們的現金始終少於 1 億美元，即使我回顧一下模型回到'15。當我回顧過去幾季時，您的現金遠高於此水平，本季結束時您的現金為 2.5 億美元。你的應收帳款也成長得很好。你們有什麼想要保留更多現金的東西嗎？或是業務上有什麼變化嗎？僅僅透過資產負債表上的所有現金有什麼想法嗎？

Yes, Selman, I'll take that. This is Scott. That cash balance that you saw at the end of the third quarter, and I think at the end of the second quarter was also around $240 million. Those were booked cash balances. They were not bank cash. So there is obviously a timing element there. We obviously manage cash to the lowest level possible, redeploying that towards debt pay down on our revolving credit facility and obviously reinvesting in the business and acquisitions. So that cash is not being trapped or held for the long term. It's being put back to the balance sheet or to growth.

是的，塞爾曼，我接受。這是斯科特。您在第三季末以及我認為第二季末看到的現金餘額也約為 2.4 億美元。這些已記入現金餘額。它們不是銀行現金。所以顯然這裡有一個時間因素。顯然，我們將現金管理到盡可能低的水平，將其重新部署用於償還我們的循環信貸安排的債務，並顯然對業務和收購進行再投資。這樣現金就不會被困住或長期持有。它被重新納入資產負債表或成長中。

Our final question comes from Ned Baramov with Wells Fargo.

我們的最後一個問題來自富國銀行的內德·巴拉莫夫。

Given the resilience of your business and the well-documented interplay between volumes and margins, is there a thought to provide a longer-term base forecast on EBITDA and/or distribution growth as opposed to your typical 1-year forward update that you provide in December?

考慮到您的業務的彈性以及有據可查的銷量和利潤之間的相互作用，是否考慮提供 EBITDA 和/或分銷增長的長期基本預測，而不是您提供的典型的 1 年遠期更新十二月？

Yes, it's Joe. Good question. We have -- we're going to put out a December investor presentation. And I tried to highlight a few of the themes that -- in the prepared remarks, but let me try to be even clearer on this one. If you look at our business and you look year-over-year for the last 5 years, you've seen our balance sheet get better. You've seen our coverage grow, you've seen our EBITDA grow. And every time we've done a formal guidance in December has been a growth. What we haven't done and what we plan to do in December is really talk about our confidence in 2024, but go even further and talk even longer term about industry fundamentals and how Sunoco could position ourselves to thrive in those fundamentals on a far perspective. So if you -- with a little bit of patience where December is right around the corner, we'll give some good insightful thought about 2024 and beyond.

是的，是喬。好問題。我們將在 12 月發布投資者簡報。我試著在準備好的發言中強調一些主題，但讓我試著更清楚地闡述這個主題。如果您查看我們的業務並逐年查看過去 5 年的情況，您會發現我們的資產負債表有所改善。您已經看到我們的覆蓋範圍不斷擴大，您已經看到我們的 EBITDA 不斷增長。我們在 12 月所做的每一次正式指導都是成長。我們在12 月還沒有做的事情以及我們計劃做的事情實際上是談論我們對2024 年的信心，但更進一步，談論更長遠的行業基本面，以及Sunoco 如何定位自己，在這些基本面的基礎上從長遠的角度蓬勃發展。因此，如果您在 12 月即將到來之際保持一點耐心，我們將為 2024 年及以後提供一些富有洞察力的想法。

That's great. I'm looking forward to the update in December.

那太棒了。我很期待12月的更新。

We've reached the end of the question-and-answer session. I'd now like to turn the call back over to Scott Grischow for closing comments.

我們的問答環節已經結束了。我現在想將電話轉回斯科特·格里肖（Scott Grischow）以徵求結束意見。

Well, thanks, everyone, for joining us on the call this morning. Please feel free to reach out with any follow-up questions, and we'll talk to everyone soon. Have a great day.

好的，謝謝大家今天早上加入我們的電話會議。如有任何後續問題，請隨時與我們聯繫，我們很快就會與大家交談。祝你有美好的一天。

This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation.

今天的會議到此結束。此時您可以斷開線路，我們感謝您的參與。